If you find yourself struggling with your finances, we recommend that you schedule a free initial consultation with one of the lawyers at our law firm. Here, our team will do a deep dive into your financial situation and deduce whether you should follow through with a bankruptcy declaration. What’s more, we will recommend which bankruptcy type you should declare given your set of circumstances. Without further ado, please continue reading to learn who is eligible to file for bankruptcy in New York State and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you interpret the criteria for filing.
Who is eligible to file for bankruptcy in New York State?
Generally speaking, individuals, married couples, corporations, and other entities are all eligible to file for bankruptcy in New York State. The question sooner lies with which bankruptcy type is best for each party to pursue. And so, the eligibility criteria for different bankruptcy types are as follows:
- Chapter 7 consumer bankruptcy: this type is best for individuals or married couples with an average monthly income being less than or equal to the median income for New York State in the past six months.
- Chapter 13 consumer bankruptcy: this type is best for individuals or married couples with regular income(s), up-to-date tax returns, and secured debt not exceeding $1,395,875 and unsecured debt not exceeding $465,275.
- Chapter 7 business bankruptcy: this type is best for small business owners or sole proprietors who struggle significantly with their unsecured business debt and who want to save their business or are willing to let it close.
- Chapter 11 business bankruptcy: this type is best for partnerships and corporations who want to continue operating and receiving income but simply need to restructure their debts in a five-year plan while protected by the New York State bankruptcy court.
What are the general steps for filing for bankruptcy?
The steps for filing for consumer bankruptcy versus business bankruptcy are not entirely the same. For one, business bankruptcy filings inevitably require more detailed financial information regarding the business’s assets, liabilities, and overall operations. But generally speaking, the sequence of events you may need to follow for a bankruptcy filing read as follows:
- Attend and complete a credit counseling course.
- Fill out and file your bankruptcy petition with the New York State bankruptcy court.
- Supplement your bankruptcy petition with the required filing fee.
- Submit all relevant documentation to the bankruptcy trustee assigned to your case.
- Attend a 341 meeting of creditors.
- Attend and complete a debtor education course.
- Wait patiently for your debts to be discharged and your case to be closed.
In conclusion, you should know that a skilled Rockland County bankruptcy attorney is here to assist you with whatever your legal issue may be at this time. So please reach out to us at The Law Offices of Allen A. Kolber, Esq. today.
