Which Attorneys are Best for Filing Chapter 13 in NY?

Filing a Chapter 13 NY bankruptcy is recommended for people who have substantial assets and want to keep them, have too much income to file under Chapter 7, may be in default on their home mortgage and facing foreclosure of their home and have sufficient income to enter into a court-approved 3-5 year repayment plan with their creditors.   It is recommended that you hire a New York bankruptcy attorney to prepare the bankruptcy petition, help you negotiate a reduced debt repayment plan with your creditors and represent you in court. 

Filing Requirements

In order to file a Chapter 13 NY bankruptcy, you must meet the following requirements:

• Must be a New York resident
• Must complete two classes in Credit Counseling and Personal Financial Management.  The Credit Counseling class must be taken 180 days prior to filing the bankruptcy petition.  The Personal Financial Management class must be taken prior to the completion of the Chapter 13 payment plan.
• You must have sufficient income to pay your living expenses and the payments negotiated under the repayment plan.
• Your total amount of unsecured debts, including credit card debt and personal loans, may not exceed $336,900, and your total amount of secured debts, including mortgages and car loans, may not exceed $1,010,650.  If your debts exceed these amounts you may be eligible to file under Chapter 11 bankruptcy. 
• You also need to make sure you have all your paperwork together before filing Chapter 13.

Statutory Debts that are Not Discharged 

The following are a list of statutory debts that cannot be discharged: 

• Spousal support
• Child support
• Student loans
• State and federal income taxes (except taxes that are 3 years or older may be discharged)
• Debts incurred as a result of a crime
• Court fees  
• Government fees and penalties

 Bankruptcy as Foreclosure Defense 

If your lender has filed foreclosure proceedings against you, your Chapter 13 bankruptcy will stay the foreclosure proceedings giving you time to negotiate a repayment plan with your lender, such as a mortgage modification so you can keep your home.  Keep in mind though that if you default on your payments, your lender could foreclose. You would damage your credit further because you would have a foreclosure and a bankruptcy on your credit.  You should only enter into a Chapter 13 bankruptcy repayment plan if you are certain you have sufficient income to make your mortgage payments and pay your other creditors.  

Bankruptcy Attorney Help 

New York Chapter 13 bankruptcy laws are very complicated.  You should hire a bankruptcy attorney to assist you with filing the petition for bankruptcy and other documents.  Your attorney is an expert at bankruptcy laws and can represent you in court.