Who can file?

We Can Help With The Bankruptcy Process

Answer: Any New York City resident could be eligible to file for bankruptcy. There isn’t an exact amount of debt or financial difficulty that is required. You do not have to show insolvency or meet a certain standard to file with the bankruptcy court. Yet, you should always speak with a lawyer before beginning the bankruptcy process to ensure it is the best option for you.

It is necessary you either have a primary place of residence, own property, or have a place of business in the United States to file for bankruptcy, and you must complete a credit counseling course within 180 days of filing.  

What is the law on bankruptcy in NYC?

Answer: In New York City, as elsewhere in the United States, federal law governs bankruptcy. The basis for all federal laws on bankruptcy is in the Constitution, which grants Congress the authority to enact laws on the subject of bankruptcy. Today, all bankruptcies are still governed by the U.S. Bankruptcy Code, a federal statute.

Is bankruptcy the only option to fix my finances?

Answer: No, bankruptcy is not the sole option for solving financial difficulty. In certain situations, it is the best way to overcome overwhelming and outstanding debt. Under other circumstances, alternatives to bankruptcy might include negotiation for debt reorganization with your creditors, participation in credit counseling, or debt consolidation.

When it comes to your options for a better financial future, you should consider every alternative. Finding the best path forward often comes from working with an expert, such as a lawyer.

Does filing for bankruptcy impact my credit?

Answer: Yes, a bankruptcy filing will appear on your credit report for a certain period of time. If you file for Chapter 7, it will be reported for 10 years on your credit report. The reporting time for Chapter 13 is shorter at 7 years.

This is a big concern for many residents. Even if you aren’t worried about negative repercussions to your credit, it could become a stumbling block in the future when you want to buy a house or make other large purchases. Impact to your credit is a reason to explore all of your options when it comes to filing for bankruptcy.