How to File Bankruptcy in New York | Filling Bankrupcty in New York

Though it is a common enough word, what exactly does bankruptcy mean? And what are its implications? As is to be expected, filing for bankruptcy is a complicated process but before such a step is taken it is essential to understand exactly what it is all about.

Simply put, bankruptcy can be defined as the legal process thorough which individuals or businesses who end up in financial trouble are able to work out their debts and pay them out under the protection of the bankruptcy court. Often “liquidations” or “reorganizations” are the words that are used to sum up the process that unfolds when you file for bankruptcy.

What Kinds of Bankruptcy are there in New York?

The two kinds of bankruptcy that you can file for are Chapter 7 bankrupcty in NY and Chapter 13 bankruptcy in NY. There are various factors that would determine whether you should opt for Chapter 7 or Chapter 13. Through Chapter 7 Bankruptcy you can use liquidation, which literally means that you sell off property in order cover as much of the debt as possible, but at the same time you will have enough of the property left over in order for you to start all over again financially. On the other hand, the Chapter 13 Bankruptcy is the reorganization type of bankruptcy where the debtor is allowed three to five years over which to pay back the debts.

One should keep in mind that there are intricate details to this legal process that should be taken into consideration before decisions are made about filing for bankruptcy. Who qualifies? Which kind would apply to you? And will you be able to keep your property? There are many such questions that arise in such a situation. It would be a good idea to consult a competent bankruptcy attorney who can guide you through these complicated decisions and procedures.

Filing for bankruptcy cannot be the solution to all your financial problems though. In fact, bankruptcy cannot cover all kinds of debts. Common kinds of debts that bankruptcy does cover are credit card debts, medical bills and unsecured loans. However, debts related to child and spouse support and other tax debts cannot be covered in bankruptcy.

Filing Bankruptcy Process in NY

Those who are faced with the overwhelming fact that their debts have grown to such a large amount that they might have to file for bankruptcy might not have a clue about how to go about this course. The first and foremost step to take is to put your bankrupt status on paper by filing for bankruptcy through the bankruptcy court. But how exactly does one go about it?

First of all, you should keep in mind that filing for bankruptcy is a legal process. For this reason, and for your own financial wellbeing, each decision that you make about bankruptcy should be well informed choices. That is to say, is this process something you want to take up on your own, or do you want a professional to help you? It is possible to file for bankruptcy on your own; however, it is a process that would take a lot of patience and diligence.

Should I file bankrupcty on my own?

If you decide that you want to file for bankruptcy on your own, the first decision you have to make is which kind of bankruptcy you should file for: Chapter 7 or Chapter 13? Once again, these decisions cannot be made fast. So it would be a good idea to visit your local library and talk to a few people who might know more technical information about filing for bankruptcy.

On the other hand, it might be a safer option to get in touch with a bankruptcy lawyer who can guide you through the complicated procedure of filing for bankruptcy. You will have to provide you bankruptcy lawyer with all your personal information in order to put together and file your voluntary petition. Once the documents are filed at the bankruptcy court, you will be assigned a trustee who will see to it that all the information that is needed is collected from you and that all the information provided is accurate. The next step would be to notify your creditors that you will be filing for bankruptcy so that they will have to stop all actions they might be taking up against you to get your payments.

The later procedures include meeting the various parties who are involved in your bankruptcy case, together with your creditors and if possible your creditors’ lawyers.

While all this is going on, also keep in mind that filing for bankruptcy is a long process which will require a lot of patience. For this reason, having an experienced lawyer might make sure that everything runs smoothly.

Filing bankruptcy in New York is no easy task. It is wise to hire a attorney well versed in Bankrupcty law in .