Middletown Attorneys Show You How to File for Bankruptcy in NY
How do you file for bankruptcy in New York?
Before you file for bankruptcy, you should first take steps to try and correct the underlying financial problem that caused you to take on debt. Bankruptcy can wipe away debt; however, it cannot correct cash flow issues. Once you have taken steps to correct your financial issues you should contact an experienced bankruptcy attorney like those at Hayward, Parker & O’Leary Esqs. Your attorney can advise you on the benefits and drawbacks of the different forms of bankruptcy. Your attorney can also guide you through each step of the bankruptcy process and verify that all required filings are sufficient. After you speak with your attorney, they may advise you to:
- Withdraw your money from your bank or credit union if you owe money to the bank.
- Stop using your credit cards
- Stop taking on debt
- Stop paying off debts that will be wiped clean by bankruptcy
- Stop paying back debts to friends and family because bankruptcy law treats these types of payments with suspicion and may require the payment to be returned and attract additional scrutiny
- Start saving receipts and pay stubs
- Not transfer property out of your name for a token payment. In New York, a bankruptcy trustee can look back and undo “fraudulent transfers” up to six years prior
Chapter 7, 11 and 13 have many technical differences. However, they mostly follow a similar filing and administrative process. In New York, a bankruptcy petition is not considered filed until it has been completed, signed and sent to the court clerk’s office at the bankruptcy court. Bankruptcy petitions may be submitted by traditional mail (frowned upon by Clerks’ offices) or submitted electronically over the Internet. Once your petition has been filed, the “automatic stay” is triggered that protects you against further collection actions by creditors.
How much does it cost to file bankruptcy in NY?
The total cost of a bankruptcy varies on the initial complexity of the case, whether there are any complications or issues raised by the trustee and the Chapter of bankruptcy you file. The current filing fee for:
- Chapter 7 is $306
- Chapter 13 is $281
- Chapter 11 is $1,213
To avoid ethical conflicts, our fee is always collected up-front prior filing a Chapter 7 bankruptcy. You should be wary of attorneys who tell you that you may pay the remainder of the fee after the filing, because it could indicate that they do not respect or fully understand the protections offered by bankruptcy law. Once your case is filed, the “automatic stay” goes into effect, and no one, including your attorney, is permitted to make collection attempts on debts that preceded the filing. A fee arrangement of this type should be a warning sign that additional pitfalls are lurking.
Can I file for bankruptcy more than one time?
While you may file for bankruptcy as many times as you wish, there are requirements on the amount of time that must elapse before you may receive multiple bankruptcy discharges. If you have already been granted a Chapter 7 discharge you must wait eight years (measured from the respective dates of filing) to receive a second Chapter 7 discharge or four years for a discharge under Chapter 13. If your discharge was ordered under Chapter 13 of the bankruptcy code then generally you must wait six years for a Chapter 7 discharge or two years for a second Chapter 13 discharge. Because there are time limits on how often you can have your debts wiped away clean you should always consult with an experienced bankruptcy attorney and declare bankruptcy when it is most advantageous.
Let us help you through the bankruptcy process
At Hayward, Parker & O’Leary Esqs., our attorneys know that selecting a competent, experienced attorney is one of the most important decisions you can make as you embark on the road to financial health. From our Middletown office, we have helped thousands of New York residents file for bankruptcy to reduce or eliminate their debt. For your free consultation, please call us at 845-343-6227 or contact us online today.