Best Bankruptcy Attorneys in New York City

Frequently Asked Questions

• Where do I file for bankruptcy in New York, New York?

  When filing for bankruptcy in New York, you can choose to file in either the district where you have primarily resided for the past 180 days or the district where you maintain your home (domicile), regardless of temporary living arrangements.

• Where can I get bankruptcy forms in New York, New York?

  In New York, official bankruptcy forms are accessible at www.uscourts.gov/forms/bankruptcy-forms. Additionally, it's possible that your local bankruptcy court may require additional forms to be submitted alongside the standardized forms used by all bankruptcy courts.

• Will all of your property be forfeited if you file for bankruptcy in New York City?

  When a consumer debtor declares bankruptcy in New York City, the individual is permitted to keep certain property known as exempt property. These exemptions are designed to protect specific types of property while also giving the debtor a fresh start. Exempt property in New York includes the equity in a debtor's home with limits of $179,975 for single debtors and $359,950 for joint debtors, as well as life insurance, annuities, and pension plans.

• What options does a debtor in New York City have when filing for Chapter 11 bankruptcy to reject leases and contracts that impose excessive burdens?

  Chapter 11 bankruptcy allows New York City business debtors to continue or terminate leases and contracts, rejecting financially burdensome agreements. If the claim is rejected, the other party, such as a landlord or a business leasing assets to the debtor, is treated as an unsecured claim from before the bankruptcy filing. The Bankruptcy Code also limits a landlord's lease rejection damages claim to one year's rent or 15% of the remaining term of the lease, not to exceed three years.

• What are the impacts of filing for bankruptcy in New York City?

  Keep in mind that when you file for bankruptcy in New York City, an automatic stay is immediately imposed, effectively stopping all collection activities and legal actions. A large amount of debt can be discharged in bankruptcy in a relatively short period of time, but it can also have a significant negative impact on a debtor's credit score.

• Can medical bills be eliminated through bankruptcy in New York City?

  In most cases, medical bills are dischargeable in bankruptcy. Debts owed to doctors, clinics, medical supply companies, and hospitals may be included in a New York City bankruptcy petition. If you have accumulated substantial medical debt, filing for bankruptcy may be a sensible and cost-effective strategy to help you get out from under that burden.

• What does the term automatic stay mean in a New York City bankruptcy filing?

  When you file for bankruptcy in New York City, an automatic stay prevents certain actions from taking place. This legal provision prohibits creditors from contacting you and halts any ongoing lawsuits, garnishments, foreclosures, or debt collection efforts. Once your bankruptcy petition is filed, the automatic stay goes into effect, giving you time to address your current financial situation without the hassle of additional intrusive phone calls or mail.