Filing for bankruptcy can be helpful for people who have fallen into debt and need help reorganizing their financials. While there are some downsides to filing for bankruptcy, many people are able to benefit by discharging some of their debts in the bankruptcy process. If you’re considering bankruptcy, you might be wondering who is eligible to file. Our knowledgeable law firm has the answers you need! Continue reading this blog to learn more, or reach out to a Newburgh Bankruptcy Lawyer for individualized legal counseling.
WHAT ARE THE RESTRICTIONS ON WHO CAN FILE FOR BANKRUPTCY?
Not everyone can file for Chapter 7 or Chapter 13 bankruptcy. When you f, the court will review your case and determine whether you can proceed with the bankruptcy process. The restrictions vary between both types of bankruptcy.
Chapter 7 bankruptcy is also called straight or liquidation bankruptcy because this type dismisses some of your debts. In order to file for this type, you must meet these requirements:
- You are an individual, partnership, corporation, or other business entity
- You haven’t filed for Chapter 7 bankruptcy in the past eight years
- You haven’t filed for Chapter 13 bankruptcy in the past six years
- The court hasn’t dismissed a bankruptcy case from you within the past 180 days
- You can prove you aren’t just trying to defraud creditors or abuse the bankruptcy system
- Your income passes a “means test” which determines whether you earn enough disposable income to pay off your unsecured debts within 3-5 years
- You finished a credit counseling course from an approved credit counseling agency within 180 days of filing your case
Chapter 13 bankruptcy is sometimes referred to as a wage earner’s plan. This type of bankruptcy helps debtors learn important financial skills for the future by helping them create a 3-5 year plan to keep their property and pay off all their debts. To file for Chapter 13, you should meet these requirements:
- You are an individual who makes a “regular income”, a self-employed individual, or a sole proprietor
- You haven’t filed for Chapter 7 bankruptcy within the past four years
- You haven’t filed for Chapter 13 bankruptcy within the past two years
- The court hasn’t dismissed a bankruptcy case from you within the past 180 days
- Your combined total debts equal less than $2,750,000 (as of the date you file)
- You make enough income to cover the monthly debt payments as specified in your repayment plan
- You filed federal and state income taxes within the past four years
- You finished a credit counseling course from an approved credit counseling agency within 180 days of filing your case
Are you considering filing for bankruptcy in New York? If so, you might be seeking a trustworthy bankruptcy lawyer who can guide you through this complicated process. Look no further because our knowledgeable law firm is here to fight for you! Contact the Law Offices of Michael D. Pinsky today for an initial consultation.
