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Navigating Bankruptcy Defense in New York: Your Ultimate Guide

Facing financial challenges? You’re not alone. Many New Yorkers find themselves overwhelmed by debt, whether due to job loss, medical bills, or other unexpected expenses. Bankruptcy can offer a fresh start, but the process is complex and often requires professional guidance. At Delancey Street, we’re here to help you navigate this challenging journey. Let’s dive into what you need to know about bankruptcy defense in New York.

Understanding Bankruptcy: What It Is and How It Works

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. In the United States, bankruptcy cases are governed by federal law, specifically the U.S. Bankruptcy Code. However, New York has its own set of rules and exemptions that can significantly impact your case.

Types of Bankruptcy

There are several types of bankruptcy, but the most common for individuals are Chapter 7 and Chapter 13.

• Chapter 7: Often referred to as “liquidation bankruptcy,” Chapter 7 allows you to discharge most of your unsecured debts, such as credit card bills and medical expenses. However, you may have to sell some of your assets to pay off creditors.
• Chapter 13: Known as “reorganization bankruptcy,” Chapter 13 involves creating a repayment plan to pay off your debts over three to five years. This option is suitable for individuals with a steady income who want to keep their assets.

Which one is right for you? It depends on your financial situation, the types of debts you have, and your long-term financial goals.

The Bankruptcy Filing Process in New York

Filing for bankruptcy in New York involves several steps, each with its own set of requirements and deadlines. Here’s a breakdown of the process:

1. Collect Your Documents

Before you can file, you need to gather essential documents, including:

• Tax returns for the last two years
• Pay stubs from the past six months
• Bank statements that include the date of filing
• Credit reports and recent collection notices

Having these documents ready will make the filing process smoother.

2. Credit Counseling

You must complete a credit counseling course from an approved agency within 180 days before filing. This course helps you understand your financial situation and explore alternatives to bankruptcy.

3. Filing the Petition

Your bankruptcy petition includes detailed information about your debts, income, expenses, and assets. This is a critical step, and any errors can delay your case or even result in dismissal. Need help? Our experienced attorneys can guide you through this complex paperwork.

4. Automatic Stay

Once you file, an automatic stay goes into effect, halting all collection activities, including lawsuits, wage garnishments, and phone calls from creditors. This provides immediate relief and breathing room.

5. 341 Meeting of Creditors

About a month after filing, you’ll attend a 341 meeting, where the bankruptcy trustee and your creditors can ask questions about your financial situation. Don’t worry; we’ll be there to support you every step of the way.

Common Concerns and Misconceptions

Worried about losing your home or car? It’s a common concern. In New York, certain assets are exempt from liquidation, meaning you can keep them. These exemptions include:

• Homestead Exemption: Protects equity in your primary residence up to a certain amount.
• Vehicle Exemption: Allows you to keep your car if its value is below a specified limit.

What about your credit score? Yes, bankruptcy will impact your credit score, but it’s often a necessary step to regain financial stability. Over time, you can rebuild your credit by making timely payments and managing your finances responsibly.

The Importance of Professional Help

Thinking about going it alone? While it’s possible to file for bankruptcy without an attorney, it’s not advisable. The process is filled with legal nuances and potential pitfalls. A minor mistake can have significant consequences, such as losing the protection of the automatic stay or having your case dismissed.

Here at Delancey Street, we specialize in bankruptcy defense and can provide the expertise you need to navigate this complex process. Our team will help you:

• Evaluate your financial situation and determine the best type of bankruptcy for you
• Prepare and file your petition accurately and on time
• Represent you at the 341 meeting and any court hearings
• Negotiate with creditors to protect your assets and achieve the best possible outcome

Real Stories, Real Solutions

Meet Jane Doe, a single mother from Brooklyn who was drowning in credit card debt after a medical emergency. With our help, Jane filed for Chapter 7 bankruptcy, discharged her debts, and kept her home thanks to New York’s homestead exemption. Today, she’s rebuilding her credit and looking forward to a brighter financial future.

Or consider John Smith, a small business owner in Manhattan who faced foreclosure and mounting business debts. We guided John through a Chapter 13 bankruptcy, allowing him to reorganize his debts and keep his business afloat. Now, John’s business is thriving, and he’s on track to complete his repayment plan.

Take the First Step Towards Financial Freedom

Feeling overwhelmed? You don’t have to face this alone. Contact us today for a free consultation. Let’s discuss your situation, explore your options, and create a plan to get you back on track.

Call us now or fill out our online form to schedule your confidential case review. Remember, the sooner you act, the sooner you can start rebuilding your financial future.

Ready to take control of your finances? We’re here to help. At Delancey Street, we believe everyone deserves a fresh start. Let’s make it happen together.

Table: Comparison of Chapter 7 vs. Chapter 13 Bankruptcy

Questions? Concerns? Leave a comment below or reach out to us directly. We’re here to provide the answers and support you need. Let’s take this journey together, one step at a time.