Chapter 7 or Chapter 13 Bankruptcy Filing in New York?

by

A common question I get asked by people from the Bronx, Queens, Staten Island, Brooklyn and Manhattan considering filing for personal bankruptcy is whether they should file chapter 7 or chapter 13.

Chapter 13 bankruptcy is typically used to preserve a valuable asset, such as a house, car, or rental apartment when the debtor is past due on payment and facing a foreclosure, repo, or eviction lawsuit. In chapter 13 bankruptcy the debtor keeps making current payments as they become due and cures the past due portion over time through the chapter 13 plan.

For a debtor with no valuable asset to protect, unless his/her income is above the level where he/she fails the means test , or he/she would like to repay his/her creditors over time, it may make more sense to to file chapter 7 bankruptcy. The means test is based on average income and family size. In a prior blog post we discussed eligilibilty requirements for chapter 13 and issues and in a separate blog post discussed commonly encountered problems in NY chapter 13 cases.

Contact Information
260 Madison Ave
17th Floor
New York , NY 10016
Toll Free: (888) 867-8165 Phone: (212) 867-8165 Fax: (212) 867-8139
Email: info@starrandstarr.com
Attorney Advertising

*LIMITATIONS REGARDING INITIAL CONSULTATION AND NEEDS ASSESSMENT MEETING (commonly known as free consultation): An "Initial Consultation and Needs Assessment Meeting" is allotted a maximum duration of 20-30 minutes. The purpose of this meeting is to evaluate the feasibility and appropriateness of potential bankruptcy solutions and to determine whether Starr & Starr, PLLC can provide representation. Please note that a single initial consultation and needs assessment meeting will be provided per individual debtor group or business entity group and its owners. Complete terms and conditions may be found at Disclaimers

**The American Board of Certification is not affiliated with any government authority. Certification is not a requirement for the practice of law in the State of New York and does not necessarily indicate greater competence than other attorneys experienced in this field of law. We are a law firm that, among other things, assists individuals with filing for bankruptcy relief under the Bankruptcy Code and may be considered a Debt Relief Agency in connection with such practice.

The American Board of Certification is not affiliated with any government authority. Certification is not a requirement for the practice of law in the State of New York and does not necessarily indicate greater competence than other attorneys experienced in this field of law. We are a law firm that, among other things, assists individuals with filing for bankruptcy relief under the Bankruptcy Code and may be considered a Debt Relief Agency in connection with such practice.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2016 – 2024, Starr & Starr, PLLC
JUSTIA Law Firm Blog Design