Bankruptcy Attorney New York City

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A bankruptcy attorney in New York City can help you decide whether filing for bankruptcy is right for you. For example, if you have primarily unsecured debt like credit card debt, filing for bankruptcy may greatly benefit you. However, if your debt largely includes student loan debt or family support obligations, like child support, bankruptcy will not discharge these debts. Therefore, it may be best for you to consider additional options. However, a bankruptcy attorney in New York City will carefully review your situation, and offer advice regarding whether you should file for bankruptcy and what type of bankruptcy is right for you.
 
Choosing the Right Bankruptcy
In New York City, two forms of bankruptcy are available to individuals: Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is a liquidation proceeding that involves selling your non-exempt assets to repay your creditors in order of their priority. To be eligible to file for Chapter 7 bankruptcy in New York City, you must earn less than the median income for the state of New York, or have very little disposable income each month. As of 2011, the median income for the state of New York is $45,931. Therefore, if you earn more than $45,931 a year, you may be ineligible to file for Chapter 7 bankruptcy unless your disposable income each month is very low. Disposable income is income you have remaining each month after paying all necessary expenses, like rent and a car payment. Generally, the less disposable income you have each month, the more likely you are to be eligible for Chapter 7 bankruptcy. However, your bankruptcy attorney in New York City will calculate whether you are eligible to file for Chapter 7 bankruptcy using the means test.



If your bankruptcy attorney in New York City determines that you are not eligible to file for Chapter 7 bankruptcy, or you are interested in keeping your assets, you should consider filing for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you will make monthly payments to a Chapter 13 bankruptcy trustee for the life of your Chapter 13 repayment plan. The repayment plan will last between 3 to 5 years, and must first be approved by the bankruptcy court. If you make all payments on time and in full throughout the plan, you will receive a bankruptcy discharge at the completion of the plan. However, to be eligible for Chapter 13 bankruptcy, you must be able to show the court that you have regular and reliable income.

Avoiding a Dismissal of Your Case
Throughout your bankruptcy case, your bankruptcy attorney in New York City may caution you against doing anything that may cause the dismissal of your case. For example, a bankruptcy court may dismiss your Chapter 13 bankruptcy for failing to make a monthly payment to your bankruptcy trustee on time. In addition, things that you did prior to filing for bankruptcy can affect your bankruptcy case as well. For example, if you transferred assets to a family member or friend prior to filing for bankruptcy, the bankruptcy court may dismiss your case due to a voidable transfer. Therefore, it is extremely important to discuss your complete financial situation with your bankruptcy attorney in New York City prior to filing for bankruptcy.

You may have several questions regarding the bankruptcy process and how the bankruptcy will affect your credit situation long term. Therefore, if you are considering filing for bankruptcy in New York City, contact an experienced bankruptcy attorney in New York City as soon as possible. In addition, visit the Southern District of New York Bankruptcy Court's website
http://www.nysb.uscourts.gov/. If you are considering filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx to make sure you understand the bankrutpcy procedure before filing on your own.