How to File for Bankruptcy in NY
When faced with financial difficulty, you might consider filing for bankruptcy.
Before filing for it, you must be aware of how to file for bankruptcy in ny. Knowing it is important so that you are confident while adopting the process and for it to go smoothly. There is no need to study different materials. Instead, hire a good attorney to help you understand the process better. The attorney will also initiate the bankruptcy proceedings and see it through. Thus, contacting the attorney is the first step in filing for bankruptcy.
Which Chapter Should You Choose?
Bankruptcy proceedings are dependent on an individual’s financial status and other factors. Different types of proceedings have been provided by the law to help both, the creditors and debtors. An attorney will help you in choosing the right chapter or proceeding and filing for bankruptcy in ny:
• Chapter 7 – It can be filed by businesses or individuals with almost no assets. Unsecured debts are prioritized over secured debts. Non-exempt assets such as a second house, stocks or bonds, etc are liquidated to pay off the debts. If no non-exempt asset is left to repay remaining debts, it is discharged.
• Chapter 11 – These proceedings are exclusively for businesses. The main advantage of this type of proceeding is that it lets the business run without intervening directly in its operations. It helps in the reorganization of business by making a suitable debt repayment plan.
• Chapter 13 – Individuals who do not qualify for chapter 7 have to apply under Chapter 13. The basic difference is that here, the individual earns a significant amount and therefore, their assets are not usually liquidated. Instead, a debt repayment plan is drafted to help them repay their debts.
• Other types of proceedings include Chapter 9 and Chapter 15. Chapter 9 is for municipalities when they are bankrupt. Chapter 15 deals with cross-border cases. Cross-border cases are usually adjudicated in the debtor’s home country.
How Will The Attorney Help In Filing For Bankruptcy?
It is essential to hire the right attorney to help you in filing for bankruptcy in ny. The attorney will help you in understanding the process better and initiate the bankruptcy proceedings. With a good attorney, you can keep your valuable assets safe:
• The attorney will assess your situation quickly and choose the appropriate chapter. Quick action on behalf of the attorney will help you in absolving your debts.
• The attorney will file the petition on your behalf with necessary papers. You might have to qualify the means test and declare your non-exempt property. The attorney will guide you as to the required documents.
• A successful petition has to be submitted to the court for the initiation of proceedings. As soon as it is accepted, wage garnishment and collection efforts from the creditors’ side will be stopped.
• A debt repayment plan, suitable to your needs, will be drafted by the attorney. This has to get the approval of the court and creditors and therefore, the attorney should have good persuasion skills.
File For Bankruptcy With The Right Attorney
Thus, hiring an attorney is the answer to how to file for bankruptcy in ny. An attorney takes care of all the legal matters and sees the process through, completely. Your valuable assets will be safe and it will be ensured that most of the debts are discharged. Depending on the process, you can become debt-free within 5 months.
Professional and the right attorneys can be found on midtownbankruptcy. It is a website that connects you to the best attorney in your vicinity, especially for bankruptcy proceedings. Hire the best attorney to file for bankruptcy. Choose the right chapter, discharge debts and start new financial adventures.