Filing a New York bankruptcy petition
If you are unable to pay your debts because you lack funds with which to pay them and you have no properties that you can turn into cash to use to pay your debts, then filing a New York bankruptcy petition may be your best option to deal with your debts.
Requirement prior to filing
You are required to complete a credit counseling course within no more than 6 months prior to filing for bankruptcy. Here, you will be encouraged to disclose your expenses and your income so that it can be closely looked at by the credit counsellor who can give you advice as to how to meet your financial obligations so that you do not incur more debt or go deeper in debt.
How to file a New York bankruptcy petition
You must also be a resident of the state of New York for six months or more to file in this state. Bankruptcy can be quite complicated, so it is best that you hire a competent Bankruptcy Attorney. On your bankruptcy petition, you must disclose your household monthly income, monthly expenses, all of your debts and the properties you own (including those that are exempt). You also need to gather and submit documents such as your income tax returns, receipts, contracts and other documents listed in the forms.
Where to file
A resident of the state of New York must file his New York bankruptcy petition at the nearest bankruptcy district court. There are four bankruptcy district courts you must choose the one nearest your residence or place of business if you are a business owner. Maxwell Law Firm, PLLC files bankruptcy petitions in the Southern District of New York (SDNY). The Southern district of New York covers New York City, Long Island and Westchester.
Fees to be paid
There are fees to be paid for the filing of a New York bankruptcy petition. You will be responsible for the credit counseling fees, the Bankruptcy Attorney’s fee and the bankruptcy filing fees. However, you may apply for a deferment or extension of time within which to pay the filing fee. This application for deferment is subject to approval by the bankruptcy court.
Effects of filing a bankruptcy petition
Once you have filed a bankruptcy petition, all your creditors will be prevented from filing cases of collection against you. If foreclosure proceedings have been filed against you, these will also be stayed. This is because the bankruptcy court will have control and supervision over your properties until the proceedings have been terminated.
Once you’ve filed your New York bankruptcy petition, your petition will be investigated using the means test. The means test will analyze your income and expenses in order to determine if you are truly unable to pay your debts.
We at the Maxwell Law Firm, PLLC assists clients with debt settlement, foreclosure defense, tax collection defense, filing for chapter 7 and chapter 13 bankruptcy and mortgage home loan modifications . Contact us and speak to our competent and experienced New York Bankruptcy Attorney so that you can get the debt relief you are seeking. Please give us a call at 718-701-0095 to discuss your options.