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Bankruptcy in New York

Who Can File Bankruptcy in New York?

Any resident of New York State is able to file bankruptcy within New York State.  The only requirements in order to file for this relief is that you honestly disclose all of your financial information, and that you attend credit counseling prior to filing your petition.  As of right now, there are no income limits on the ability to file for bankruptcy however, your income may dictate what type of bankruptcy you are eligible for.

What Do I Need To Know Before Filing For Bankruptcy in New York?

There are a lot of factors which will effect the outcome of your bankruptcy case.  Since each case is treated individually, it is important that you have your specific circumstances evaluated by a competent attorney prior to filing a petition with your court.  Not only will your attorney be able to advise you as to whether or not filing bankruptcy is in your best interest, they will also be able to advise you of what actions if any you should take prior to filing for bankruptcy.

What Type of Debts Can Be Discharged As Part of a Bankruptcy Proceeding in New York?

The only debts which can be discharged as part of a bankruptcy proceeding in New York State are unsecured debts.  Unsecured debts vary from secured debts because, unsecured debts are not attached to a particular piece of collateral.  When collateral has been used to secure a debt, a bankruptcy court can not discharge that debt, or allow you to keep the collateral if your loan is not in good standing.  While secure debts can not be discharged as part of a bankruptcy, that does not necessarily mean that you will lose the property associated with that debt.  In many cases, payment arrangements may be made with the creditor that will allow you an extended period of time to bring your account to a current status prior to seizing the collateral used.

Will I lose my house and car if I file for bankruptcy in New York?

In most cases, your primary residence and vehicle will be exempt for your bankruptcy proceedings.  In New York State, you are able to protect up to $50,000 in equity in your home, and up to $2,400 in equity in your vehicle.  If your assets are valued higher than these exemptions allow, you may be forced to downsize as part of your bankruptcy settlement.

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