The two main types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is often the preferred choice, as it can result in the discharge of most or all of your unsecured debts, such as credit cards, personal loans, and medical bills. However, to be eligible for Chapter 7, your household income must not exceed your state's median income based on household size.
In New York State, the median income is $69,135 for a household of one, $87,550 for two, $105,435 for three, and $131,389 for a household of four. If your income exceeds the median, you may still qualify for Chapter 13 bankruptcy. This allows you to pay a portion of your income towards your debts over a 3-5 year repayment period. The amount you pay depends on factors like income, assets, expenses, and household size. Once the plan is complete, any remaining unpaid balances of unsecured debts are discharged.
To find out if you qualify for Chapter 7 or to get an estimate of your Chapter 13 payment, call the Law Office of Thomas Denny at 716-800-1234 or contact us online to schedule a free consultation.
Posted by Thomas Denny | Feb 02, 2025 |
Introduction
Bankruptcy can be a challenging and complex process, especially when it comes to major financial decisions such as purchasing a house. Understanding the implications of buying a house while in bankruptcy is crucial for individuals navigating this difficult financial situation. In ...
Posted by Thomas Denny | Jan 22, 2025 |
Can Income Taxes be Eliminated in Bankruptcy?
The issue of whether tax liabilities are dischargeable in bankruptcy hinges on several key legal provisions in the U.S. Bankruptcy Code, specifically pertaining to Chapter 7 and Chapter 13 bankruptcy filings. While certain tax debts can indeed be dis...
Posted by Thomas Denny | Jan 08, 2025 |
Yes, filing for bankruptcy can generally stop a lawsuit, at least temporarily. This is due to a powerful legal tool called the automatic stay.
Here's how it works:
Automatic Stay: When you file for bankruptcy, an automatic stay immediately goes into effect. This is a court injunction that pr...
Posted by Thomas Denny | Jan 01, 2025 |
The good news is that in most cases, your retirement savings are protected if you file for bankruptcy.
Here's why:
ERISA Protection: Most 401(k)s, 403(b)s, and other employer-sponsored plans are protected by the Employee Retirement Income Security Act (ERISA). This federal law generally k...
Posted by Thomas Denny | Dec 25, 2024 |
In recent years, over 700,000 individuals and businesses filed for bankruptcy in the United States (U.S. Courts). Take control of your financial future today. Contact the Law Office of Thomas Denny at (716) 800-1234 to request a free consultation.
Posted by Thomas Denny | Dec 18, 2024 |
What is the Automatic Stay?
Defining the Automatic Stay
The automatic stay is a powerful feature of bankruptcy law. It instantly goes into effect when a bankruptcy case is filed. This legal mechanism halts most collection activities against a debtor. Essentially, it's like pressing the pause bu...
Posted by Thomas Denny | Dec 17, 2020 |
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.
Posted by Thomas Denny | Apr 12, 2020 |
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...
Posted by Thomas Denny | Jul 08, 2017 |
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...
Posted by Thomas Denny | Jul 04, 2017 |
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...
Posted by Thomas Denny | Aug 08, 2016 |
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 ...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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, ...
Posted by Thomas Denny | Jul 01, 2014 |
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...
Posted by Thomas Denny | Jul 01, 2014 |
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...