Filing for bankruptcy in New York is similar to filing in most other states. But that doesn’t mean it’s easy to do on your own.
At Jacoby and Jacoby we make the New York bankruptcy process simpler for you. We’ve broken it down into nine basic steps below. Read on for the help you need.
If you’re stuck on any of the bankruptcy steps below, help is just a click or call away. Contact Jacoby and Jacoby online or call 888-452-2629 to schedule your free bankruptcy consultation with the No. 1 bankruptcy filer in New York.
1. Choose the Right Type of Bankruptcy
There’s more than one type of bankruptcy. In fact, there are several types, but the two most common types for individuals are Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Before you file for bankruptcy, you have to know which type is best for you.
For the purposes of this article, we are going to discuss how to file for Chapter 7 Bankruptcy in New York. That’s because Chapter 7 is much more common than Chapter 13. However, be sure to speak with an attorney at Jacoby and Jacoby before choosing which type of bankruptcy you want to file.
Here are the key differences between Chapter 7 and Chapter 13 bankruptcy.
- Chapter 7 bankruptcy is known as the liquidation. What this means, in simple terms, is that a majority of your outstanding debt is effectively wiped out and discharged. Examples of debts that qualify for a discharge in Chapter 7 Bankruptcy include credit cards, personal loans, and medical bills. A common misconception about Chapter 7 is that you must surrender all of your assets, specifically a house or a car. This could not be further from the truth! Consult an attorney at Jacoby and Jacoby to find out how you can wipe out a majority of your debt while retaining both your home and vehicle.
- Chapter 13 bankruptcy operates as a payment plan where you will repay your debts over three to five years, based on your income. Chapter 13 bankruptcy is typically used in connection by individuals whom own real estate and have fallen behind on their mortgage payments. Here at Jacoby and Jacoby we will help you develop a Chapter 13 plan that will fit your budget and allow you to breathe a sigh of relief.
2. Make Sure You Qualify
If you choose Chapter 7 bankruptcy, you will have to pass the means test in order to proceed. This test compares your income to the median income of a household of the same size in New York. If your income is below the limits, you pass the means test.
Here is a sample of the New York means test income limits by household size (current as of November 2022):
- One-person household: $63,715
- Two-person household: $78,663
- Three-person household: $95,779
- Four-person household: $116,818
- Five and above: Add $9,900 for each additional person
It is important to note that if your income is above these limits that you still may pass the means tests. An attorney here at Jacoby and Jacoby would be happy to assist and explain the additional factors that will determine if you will pass the means test.
3. Gather Your Financial Documents
To file for bankruptcy in New York, you’re going to need information about your financial situation. It’s helpful to have everything in front of you early in the bankruptcy process.
Here are some documents you will likely need to track down:
- Paycheck stubs for the past six months or more
- Recent tax returns (at least two years)
- Bank statements
- Your credit report
- Collection notices from creditors
4. Get Credit Counseling
In order to file a Bankruptcy in New York you will have to take a Credit Counseling course prior to the filing of your Bankruptcy petition. At Jacoby and Jacoby we will provide you with an approved provider that will allow you to quickly complete the course by phone or online.
5. Submit the New York Bankruptcy Forms and Fee
To actually file for bankruptcy, you will have to fill out official forms and pay a fee. The fee to file for bankruptcy in New York is $338. In some cases, based on your financial situation, you may be able to get the fee waived or pay it in installments.
Once your forms have been completed and reviewed they must be filed to the proper New York Bankruptcy Court. At Jacoby and Jacoby one of our attorneys will take care of the filing process for you.
6. Send Documents to Your Bankruptcy Trustee
After you file for bankruptcy, all collection efforts against you should come to a stop. But you’re not done.
You still need to send some documents to your bankruptcy trustee, who will be assigned to your case a few days after you file. However, you are in luck! At this point you have already provided your attorneys at Jacoby and Jacoby with the previously mentioned financial documents. We will send them to the Trustee on your behalf as soon as we file your papers with the Court!
7. Take a Debt Education Course
After filing for bankruptcy, you will also have to take a debtor education course from an approved provider. Please be aware that this is not the same thing as the credit counseling course you took before you filed.
It is, however, similar in the sense that Jacoby and Jacoby will provide you with an approved provider which will allow you to quickly complete the course over the phone or online.
8. Go to Your 341 Meeting
The 341 meeting, also called the meeting of creditors, is an essential step in the New York bankruptcy process. Your trustee and any of your creditors who decide to show up can confirm details of your case and raise any objections they may have. As of now, a personal appearance in Court is not necessary as the 341 meeting will be held with the trustee over the telephone. An attorney from Jacoby and Jacoby will be present at that telephone hearing.
It’s normal to be nervous about this meeting, but it’s fairly routine and often lasts less than a half hour. You can also be assured that an attorney from Jacoby and Jacoby will not only prepare you for the 341 meeting, but attend the 341 meeting with you.
9. Get Your Debts Discharged
Barring any problems, the trustee will close your 341 meeting and you will be on your way. Following the close of the meeting it is just a waiting game. In about 60 days you will receive your official discharge papers in the mail and you will be able to have that final sigh of relief in knowing your debt has been wiped out!
Need Help? Reach out to a Trusted Long Island Bankruptcy Attorney
That’s how to file for bankruptcy in New York in a nutshell. But clearly, there’s a lot involved in each of the steps described above.
Should you need help with any aspect of this process, reach out to a trusted New York bankruptcy attorney. The team at Jacoby & Jacoby is here to help.
To schedule your free consultation with the No. 1 bankruptcy filer in New York, Jacoby and Jacoby, contact our firm online or call 888-452-2629.
