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.
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