How to File for Bankruptcy in New York
Filing for bankruptcy offers individuals and businesses in New York a legal way to manage overwhelming debt and regain financial stability. The most common types of bankruptcy are Chapter 7 and Chapter 13, each providing different solutions based on financial circumstances.
- Chapter 7 bankruptcy eliminates most unsecured debts through asset liquidation, allowing for a fresh financial start.
- Chapter 13 bankruptcy helps individuals restructure their debts into a manageable repayment plan spanning three to five years.
Determining the right approach depends on eligibility, asset protection, and long-term financial goals. Our Brooklyn bankruptcy lawyer works closely with clients to develop a strategy that aligns with their needs.
Determining Eligibility for Bankruptcy
Before filing, individuals must meet eligibility requirements. The means test assesses income and expenses to determine whether Chapter 7 is an option. If income exceeds New York’s median threshold, Chapter 13 may be required instead. Additionally, state bankruptcy exemptions allow individuals to protect assets such as home equity, retirement accounts, and personal property.
Our bankruptcy attorney in Brooklyn evaluates each client’s financial situation to ensure they fully utilize these protections. Understanding these exemptions and requirements is essential to achieving a successful bankruptcy outcome.
Filing Process and Required Documents
The bankruptcy filing process includes several important steps:
- Gather financial records, including income statements, debt records, asset details, and monthly expenses.
- Complete credit counseling from a court-approved agency within 180 days before filing.
- Submit a bankruptcy petition with financial disclosures and supporting documents to the U.S. Bankruptcy Court.
Accuracy is crucial, as errors or omissions can result in case dismissal. Our Brooklyn bankruptcy attorney ensures all paperwork is properly prepared and submitted. Having experienced legal representation reduces complications and protects clients throughout the process. Learn more about our practice areas and how we can assist with bankruptcy filings.
What Happens After Filing?
Once a bankruptcy petition is filed, the court issues an automatic stay, which stops debt collection efforts, wage garnishments, and foreclosure proceedings. The next step is the 341 Meeting of Creditors, where filers answer questions about their financial status.
- In Chapter 7 cases, a trustee evaluates non-exempt assets for potential liquidation.
- In Chapter 13 cases, filers propose a repayment plan, which must be approved by the court.
At the conclusion of the case, eligible debts are discharged, providing lasting financial relief. Our Brooklyn bankruptcy attorney represents clients throughout the process, ensuring compliance with legal requirements and protecting their rights.
Bankruptcy and Personal Injury Settlements
For individuals who have received personal injury settlements, bankruptcy laws determine how these funds are treated. New York’s exemption laws may protect a portion of these settlements, but failing to disclose them properly could lead to case dismissal. Our Brooklyn personal injury bankruptcy attorney provides guidance on how injury-related compensation interacts with bankruptcy filings.
Additionally, creditors may challenge the discharge of certain debts if they believe fraudulent activity occurred. Our firm ensures that all filings meet legal standards, preventing unnecessary complications.
The Role of a Bankruptcy Attorney in New York
Filing for bankruptcy requires careful preparation and strict adherence to federal and state laws. Even minor mistakes in paperwork or failure to follow court procedures can result in the dismissal of a case. Our bankruptcy attorney in Brooklyn provides comprehensive legal support, guiding clients through each step of the process.
Beyond bankruptcy, our firm also assists with New York no-fault claims and arbitration, offering effective legal solutions to protect financial interests. Learn more about our legal team by visiting our attorney profiles.
Build a Stable Financial Future
Bankruptcy can provide a fresh start, but a successful filing requires legal knowledge and careful execution. Our bankruptcy lawyer in Brooklyn ensures that clients understand their rights and receive the financial relief they deserve.
At Ursulova Law Offices, P.C., we are committed to helping individuals and businesses overcome financial challenges. If you are considering bankruptcy, contact us to discuss your options and begin your path toward financial stability.
