A Chapter 7 bankruptcy is helpful to many New Yorkers because it erases all your debt (with a few exceptions) and gives you the chance to start fresh. Though many New Yorkers would like to file a Chapter 7 bankruptcy, not all are able to.
If you want to file a Chapter 7 bankruptcy in New York, you must follow these steps:
To file a Chapter 7 bankruptcy, you must first complete a “means test.” This test compares your income to the average income in your state. If your income falls below the state average, you are automatically eligible to file for a Chapter 7 bankruptcy. If your income exceeds the state’s average income, you must complete the full means test to determine whether you can file for Chapter 7 bankruptcy or whether you need to file for a Chapter 13 bankruptcy.
If you qualify for Chapter 7 bankruptcy, you must complete a bankruptcy petition, schedules, Statement of Financial Affairs, Statement of Intention, complete Means Test, and credit counseling certification. These documents give the U.S. Bankruptcy Court information about your income, debt, and property. Though you do not need to file for bankruptcy with a lawyer, the forms are complex and lengthy (a typical Chapter 7 bankruptcy filing is about 40-50 pages). You’ll need to file these documents with the U.S. Bankruptcy Court along with your filing fee and a number of mandatory disclosures.
A few days after the Chapter 7 bankruptcy petition is filed, the U.S. Bankruptcy Court will appoint a bankruptcy trustee. The trustee will review your paperwork to make sure everything has been filled out properly. The court will also set a date for the meeting of creditors.
During your bankruptcy, you must meet with the trustee and your creditors at least once. This “341 meeting of creditors” takes place within 90 days of the filing of the bankruptcy petition. The purpose of this meeting is to give your creditors and the trustee an understanding of your finances. Typically, the meeting of creditors is very short.
Once the meeting of creditors has taken place, the trustee will confirm that you are eligible for Chapter 7 bankruptcy. If the U.S. Bankruptcy Court, U.S. Trustee’s Office or any other interested party objects to your bankruptcy filing, you’ll need to appear in court to let the judge make a final decision. If you lose the objection you may need to convert your case to a Chapter 13 or risk dismissal of the case entirely.
You will have to undergo financial management counseling before your Chapter 7 bankruptcy case is closed. The purpose of this counseling is to help you manage your money more wisely in the future.
Assuming you’ve completed the 341 meeting, filed the financial management certification on time, no objections have been filed (or if they’ve been filed and resolve) and you’ve complied with all of the trustee’s requests … then a discharge will be granted. Your Chapter 7 bankruptcy case will be closed and you can move on with your life.
Check Out These Related Posts:
