Bankruptcy Lawyers in New York

Bankruptcy in New York

Bankruptcy law in New York is governed by federal law, primarily under Title 11 of the United States Code. However, New York state laws also play a crucial role, especially regarding exemptions and procedural rules. Individuals and businesses in New York can file for different types of bankruptcy, with Chapter 7 and Chapter 13 being the most common for individuals. Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows for repayment plans based on income. Businesses might opt for Chapter 11 bankruptcy to restructure their debts while continuing operations. The process begins with filing a petition in a federal bankruptcy court, and New York has several such courts located throughout the state. It's important for filers to complete credit counseling from an approved agency before filing. New York's specific laws and exemptions can significantly impact the outcome of a bankruptcy case. For instance, the state provides its own set of exemptions that can be used instead of the federal exemptions. These exemptions determine what property can be retained. New York allows filers to choose between federal and state exemptions, providing flexibility based on individual circumstances. Additionally, New York's median income levels, which are used to determine eligibility for Chapter 7, are higher than many other states, impacting who qualifies for this type of bankruptcy.

New York Laws & Regulations

In New York, bankruptcy filers can choose between federal and state exemption systems. The state exemptions are particularly favorable for those with significant home equity, as New York allows a substantial homestead exemption, which varies by county. For instance, in New York City, the homestead exemption is $170,825. Other notable exemptions include personal property, such as a vehicle up to $4,825, and tools of the trade up to $3,575. New York also has its own rules regarding the treatment of retirement accounts, which are generally protected. Additionally, New York's bankruptcy courts are divided into four districts: Southern, Eastern, Northern, and Western, each serving different geographic areas. Filers must submit their petitions and attend hearings in the court corresponding to their residence. The state also mandates that a debtor must complete a financial management course from an approved provider before receiving a discharge.

Typical Attorney Costs in New York

New York State Bar Association

How to Find a Bankruptcy Lawyer in New York

Finding a bankruptcy lawyer in New York involves several steps. Start by seeking referrals from trusted friends or family who have undergone bankruptcy. Additionally, use online directories and review sites to assess potential attorneys. It's crucial to check for experience specifically in bankruptcy law, as this area requires specialized knowledge. During initial consultations, inquire about the attorney's approach, fees, and familiarity with New York's specific bankruptcy laws. The New York State Bar Association's website is a reliable resource for finding qualified lawyers. It offers a lawyer referral service that can help locate attorneys who meet specific criteria. Always ensure that the attorney is in good standing with the state bar and has no history of disciplinary actions.

Frequently Asked Questions