Bankruptcy Attorneys in New York City

When overwhelming debt makes it impossible to meet your financial obligations, bankruptcy may provide the fresh start you need. Our experienced bankruptcy attorneys understand the stress and shame that financial difficulties can bring, and we're here to help you explore all your options.

Filing for bankruptcy is a serious decision that requires careful consideration and expert legal guidance. We help individuals and businesses understand bankruptcy laws and determine whether bankruptcy is the right solution for their financial problems.

Our team guides you through the process while protecting your rights and eligible assets. We work to ensure you get the maximum benefits allowed under the law while helping you plan for a more secure financial future.

You can call us at 212-233-1233 or send us an email at [email protected] to discuss your situation.

Personal Bankruptcy

When overwhelming debt makes it impossible to meet your financial obligations, bankruptcy can provide a fresh start. Filing for bankruptcy is a serious decision that requires careful consideration and expert legal guidance to understand your options and choose the best path forward.

We help individuals and families understand bankruptcy laws and determine whether bankruptcy is the right solution for their financial problems. Our team guides you through the process while protecting your rights and eligible assets. Our personal bankruptcy services include:

• Chapter 7 bankruptcy - eliminating most unsecured debts through liquidation
• Chapter 13 bankruptcy - reorganizing debts into manageable payment plans
• Asset protection - keeping exempt property like your home and car
• Debt evaluation - analyzing which debts can be discharged in bankruptcy
• Creditor negotiations - stopping harassment and collection actions
• Credit counseling - meeting pre-filing education requirements
• Post-bankruptcy planning - rebuilding credit and financial stability

Bankruptcy isn't right for everyone, but when it is the best option, we make sure the process goes smoothly and you get the maximum benefits allowed under the law.

Business Bankruptcy

Business financial difficulties can threaten not only your company but your personal assets and livelihood. Whether you need to reorganize your business debts or wind down operations, having experienced legal help protects your interests and maximizes recovery options.

We assist business owners in evaluating their options and navigating the business bankruptcy process. Our goal is to help you achieve the best possible outcome for your business and personal financial situation. Our business bankruptcy services include:

• Chapter 11 reorganization - restructuring business debts while continuing operations
• Chapter 7 liquidation - winding down business operations and selling assets
• Debt restructuring - negotiating with creditors outside of bankruptcy
• Asset protection - protecting personal assets from business creditors
• Creditor committees - working with creditor groups in reorganization cases
• Business valuation - determining fair value of business assets and operations
• Sale transactions - selling business assets or entire operations

Every business situation is different, and we work closely with business owners to understand their specific circumstances and develop strategies that protect their interests while addressing financial challenges.

Debt Relief Alternatives

Bankruptcy isn't always the best solution for financial problems. Sometimes other debt relief options can help you avoid bankruptcy while still getting the financial relief you need. We evaluate all available options to find the best approach for your situation.

Before recommending bankruptcy, we explore alternatives that might work better for your circumstances. Our debt relief services include:

• Debt negotiation - working with creditors to reduce debt amounts and payment terms
• Payment plan arrangements - setting up manageable payment schedules
• Debt consolidation advice - combining multiple debts into single payments
• Asset protection strategies - protecting important assets from creditors
• Financial planning guidance - creating budgets and spending plans
• Creditor harassment protection - stopping abusive collection practices
• Foreclosure defense - protecting your home from foreclosure proceedings

Our goal is to help you regain financial stability using the most appropriate method for your situation, whether that's bankruptcy or an alternative debt relief strategy.

The Means Test for Chapter 7

Not everyone qualifies for Chapter 7 bankruptcy. The "means test" determines whether an individual debtor's income is low enough to file Chapter 7 or whether they must file Chapter 13 instead. The test compares the debtor's income to the median income in their state for a household of similar size. Debtors below the median can file Chapter 7 freely. Debtors above the median must complete additional calculations to determine whether they have disposable income to pay creditors.

The means test:

• Looks at the debtor's average monthly income for the six months before filing.
• Compares to the median income for the household size in New York.
• For above-median debtors, calculates allowable expenses using IRS standards.
• Determines whether disposable income could fund a Chapter 13 plan.
• Disqualifies debtors with sufficient means from Chapter 7 in most cases.

The Automatic Stay

One of the most powerful effects of filing bankruptcy is the automatic stay under Section 362 of the Bankruptcy Code. The stay immediately stops:

• Collection calls and letters.
• Lawsuits seeking to collect debts.
• Wage garnishments.
• Bank account levies.
• Foreclosure proceedings.
• Repossession actions.
• Utility shutoffs (for at least 20 days).
• Eviction proceedings (with some exceptions).

The stay provides immediate relief from creditor pressure. The debtor gains breathing room to assess options and develop a plan. Creditors who violate the stay can be sanctioned by the bankruptcy court.

Exempt Property in New York

Bankruptcy debtors can protect certain assets from liquidation. New York debtors can choose between federal exemptions under the Bankruptcy Code and New York state exemptions. The choice depends on what assets the debtor wants to protect:

• Homestead exemption. Protects equity in the debtor's primary residence (different amounts under federal and New York law).
• Motor vehicle exemption. Protects equity in a car up to a specific amount.
• Personal property exemption. Protects household goods, clothing, and similar items.
• Retirement accounts. Generally fully protected, including 401(k), IRA, and pension benefits.
• Tools of the trade. Protects equipment used in the debtor's profession.
• Wildcard exemption. Allows the debtor to protect any property up to a specified amount.
• Wage exemption. Protects a portion of earned but unpaid wages.

Choosing the right exemption scheme requires careful analysis of the debtor's specific assets.

Discharge of Debts

Successfully completing a bankruptcy results in discharge of the debtor's eligible debts. The discharge releases the debtor from personal liability on those debts. However, certain debts are not dischargeable:

• Most tax debts. With limited exceptions for older tax debts that meet specific requirements.
• Student loans. Discharged only on showing of undue hardship, which is difficult to establish.
• Child support and alimony. Not dischargeable.
• Debts from fraud or willful misconduct. Not dischargeable if the creditor establishes the basis.
• Criminal restitution. Not dischargeable.
• Debts not listed in the bankruptcy. Generally not dischargeable for debts the debtor knew about but didn't disclose.

Understanding which debts will and won't be discharged is essential to assessing whether bankruptcy provides meaningful relief.

Chapter 13 Repayment Plans

Chapter 13 requires the debtor to propose a plan for repaying creditors over 3-5 years. The plan must:

• Pay all secured creditors as required by the underlying loan documents (with some modification options).
• Pay all priority claims in full (administrative expenses, certain taxes, support obligations).
• Pay unsecured creditors at least what they would have received in a Chapter 7 liquidation.
• Devote all disposable income to the plan.
• Comply with applicable means test calculations.

Plans are approved by the court at a confirmation hearing. Once confirmed, the debtor makes monthly payments to a Chapter 13 trustee, who distributes the funds to creditors according to the plan. Completion of the plan results in discharge of remaining qualifying debts.

Foreclosure Defense Through Chapter 13

Chapter 13 is often used to address foreclosure situations. The automatic stay stops foreclosure proceedings, and the plan can cure mortgage arrearages over time. The strategy:

• Filing stops the foreclosure immediately.
• Current mortgage payments must be maintained going forward.
• Past-due payments are spread over the plan period (typically 3-5 years).
• The debtor keeps the home if the plan is followed.
• The bankruptcy serves as a structured workout that avoids losing the property.

For homeowners facing foreclosure with otherwise sufficient income to maintain the mortgage going forward, Chapter 13 can be the right tool.

The Credit Counseling Requirement

Before filing bankruptcy, debtors must complete credit counseling from an approved provider. The counseling:

• Reviews the debtor's financial situation.
• Discusses alternatives to bankruptcy.
• Considers debt management plans.
• Provides a certificate of completion required for filing.

The counseling is typically a short session that can be completed online or by phone. The requirement is procedural rather than substantive — debtors do not have to follow the counselor's advice, only complete the session.

Effect on Credit

Bankruptcy affects the debtor's credit:

• The bankruptcy filing appears on credit reports for 7-10 years.
• Credit scores typically drop substantially upon filing.
• New credit is harder to obtain in the years immediately after bankruptcy.
• Credit rebuilding is possible through careful financial management.
• Many lenders specifically work with post-bankruptcy borrowers.
• Mortgages and major credit can typically be obtained 2-4 years after bankruptcy with rebuilt credit.

The credit impact must be weighed against the benefits of debt relief. For debtors whose credit is already damaged by financial problems, the marginal impact of bankruptcy may be small.