Legal Advice for Filing for Bankruptcy in New York

The legal process for filing for bankruptcy in New York involves several steps. First, the debtor must determine which type of bankruptcy to file. There are two common types of bankruptcy for individuals: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy involves liquidating the debtor's assets to pay off creditors. This type of bankruptcy is typically used by individuals who do not have a steady income, and whose debts exceed their assets. Chapter 13 bankruptcy allows the debtor to restructure their debts and establish a payment plan that is manageable based on their income. This type of bankruptcy is typically used by individuals with a steady income who are struggling to make payments on their debts.

Once the debtor has determined which type of bankruptcy to file, they must file a petition with the bankruptcy court. The petition requires the debtor to provide a list of their assets, liabilities, and income, as well as any outstanding debts.

Prior to filing for bankruptcy, the debtor should consider whether there are any alternatives that may be more appropriate based on their circumstances. For example, debt consolidation, debt settlement negotiation, or credit counseling may be more appropriate for individuals with manageable debts.

However, if the debtor's debts are unmanageable, and they do not have any viable alternatives, filing for bankruptcy may be the best course of action. Before declaring bankruptcy, the debtor should also consider the long-term effects of the bankruptcy on their credit score, eligibility for future loans, and their ability to discharge debts in the future.

It is also important to note that not all debts are dischargeable through bankruptcy. For example, student loans, most taxes, and child support and alimony payments cannot be discharged in bankruptcy. Additionally, bankruptcy may result in the loss of some assets, such as a home or a vehicle.

In order to ensure that the bankruptcy process is completed correctly, and to maximize the chances of a successful outcome, it is advisable to seek the assistance of a licensed bankruptcy attorney. The attorney can help the debtor navigate the legal system, protect their assets, and ensure that their rights are protected throughout the bankruptcy process.

In summary, the legal process for filing for bankruptcy in New York involves several steps, including determining which type of bankruptcy to file, submitting a petition to the bankruptcy court, and considering the long-term effects of the bankruptcy on credit scores and future financial health. It is important to consider all alternatives and speak with a licensed attorney before making a decision to file for bankruptcy.