There are essentially two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is the preferred choice since, if successful, it results in a discharge of all or most of your unsecured debts (credit cards, personal loans, medical bills, etc.). To be eligible for Chapter 7 bankruptcy, your total household income must not exceed the median income in your state based on household size.
In New York State, the median income for a household of one (1) is $60,696. For a household of two (2) it is $77,159, for a household of three (3) it is $92,508, and for a household of four (4) it is $112,424.
If your household income does exceed the median, although you may not be eligible to file Chapter 7, you may still be eligible to file Chapter 13, which allows you to pay a portion of your income, or your disposable income towards repayment of your debts. Your payment is determined by a means test. Your plan may pay anywhere from 5% to 100% of your total unsecured debt, depending on factors such as income, assets, expenses and household size. Payment plans generally last either 3 years or 5 years. With plans that require only a fraction of the debt to be paid, once plan payments are completed, the unpaid balances of the debts are discharged, as in Chapter 7.
To find out if your qualify to file Chapter 7, or to determine what your payment will be in a Chapter 13, call the Law Office of Thomas Denny at 716-800-1234 or contact us online to schedule a free consultation.
Had they not filed for bankruptcy, many famous and accomplished individuals and businesses would have been deprived of the privilege to try again. Abraham Lincoln, P.T. Barnum, Mark Twain, Henry Ford, and Walt Disney are among the scores of famous and accomplished persons who filed for bankruptcy, then went on to achieve great success.
In short, Chapter 7 is used to wipe out credit card balances, medical bills, personal loans, and other unsecured debts. Filing a Chapter 7 will initially stop all collection actions, including repossession and foreclosure. However, secured creditors (mortgage companies, auto loan creditors) may a...
Loss of a job, divorce, medical emergencies and predatory lending practices put many at risk of losing their homes. Every year I help rescue dozens of families from the perils of foreclosure. In my experience, I have learned that the first mistake not to make when in danger of losing your home is...
While a Chapter 7 will remain on your credit report for ten years and a Chapter 13 for seven years, bankruptcy is not necessarily a death sentence to your credit. In fact, it usually raises your credit score. As a bankruptcy attorney, I use a credit report that indicates a client's current credit...
Occasionally I receive phone calls from disgruntled persons who filed for bankruptcy in the past using other attorneys. Almost everyone has the same complaint: “The attorney never contacted me to tell me what I needed to do.” As a result, their cases were dismissed, often for something as simple ...
Approximately 20 to 40 days after filing for bankruptcy you will be required to attend a ”meeting of creditors.” There, the trustee will review your petition and ask questions about your property and finances. The proceeding takes approximately 15 minutes and, although it is a called a “meeting o...
The “means test” is a formula used to determine who can and cannot file for bankruptcy protection under Chapter 7. The law requiring a “means test” was enacted in 2005 to deter wealthy debtors from filing for Chapter 7 bankruptcy. If you are filing for bankruptcy in Buffalo and your income is les...
A bankruptcy “discharge” releases you from personal liability for discharged debts and prevents creditors from taking any action against you to collect the debts. If you are struggling to pay your debts, Buffalo bankruptcy attorney Thomas Denny will help you attain protection from collection acti...
If yours debts are in both your names, both you and your spouse should file. Otherwise, it is not necessary to have a bankruptcy noted on both of your credit reports. If you choose to file alone, however, your spouse will not be relieved from his or her share of any debts discharged. Buffalo bank...
Chapter 7 bankruptcy enables you to discharge certain debts, including medical bills, personal loans, and credit cards. If you wish to keep your home or your car you will need to continue to make your mortgage and/or car payments. Chapter 13 bankruptcy allows you to avert foreclosure by extending...
Under the New York State bankruptcy exemptions, a debtor in Buffalo NY may keep up to $75,000 in equity in his or her home. A married couple filing jointly may keep up to $150,000 in home equity. Under the federal exemptions, each debtor may keep up to $22,000 in equity in his or her home. As lon...
Filing for bankruptcy places an automatic stay (a stop) on foreclosure proceedings. Under Chapter 7, however, after several weeks, the mortgagee (the bank) will likely apply for and be granted relief from the stay and be allowed to continue the foreclosure proceeding. Chapter 13 provides a way to...
Although bankruptcy will remain on your credit report for ten years from the filing date, by eliminating all or most debts, it may actually help your credit. In addition to improving your debt to income ratio, bankruptcy may allow you to qualify for an FHA or VA-insured mortgage in as little as t...
The law strictly prohibits an employer from terminating you or denying you employment for filing bankruptcy or for not having paid a debt that is dischargeable in bankruptcy. Furthermore, you cannot, solely because of bankruptcy or insolvency, be denied a federal student loan, a drivers license, ...
Filing for bankruptcy creates an automatic stay under which all collection actions, including repossession of an automobile, are stopped. The lender has the option, however, to apply to the court to have the stay lifted to protect its security interest. If the creditor files such a motion, you ar...
Student loans are generally not dischargeable in bankruptcy “unless excepting such debt from discharge . . . will impose an undue hardship.” The legal test for “undue hardship” is very strict. Also exempt from bankruptcy protection are domestic support obligations and income taxes less than three...
