While filing for bankruptcy can be a tricky process, one of the most complicated parts is understanding where to begin. Below, we have provided a breakdown of the necessary steps, in addition to an explanation of the requirements an individual must meet in order to file for bankruptcy in the state of New York, in Brooklyn.
Paperwork
There are a number of documents you must secure prior to beginning the bankruptcy process. These documents include current income sources, major transactions of the last two years, living expenses, as well as unsecured and secured debts, and all property, assets, and possessions. In many cases, you may also need proof of ownership for your houses and cars, and paperwork outlining the terms of any loans you have.
Filing Bankruptcy
After gathering all of the necessary information, have a Brooklyn bankruptcy attorney determine what property should be exempt in accordance to the New York exemptions.
Then, you or your attorney will need to fill out and submit additional forms and paperwork to your district’s bankruptcy court, referred to as a petition. Brooklyn Bankruptcy attorney Michael F. Kanzer & Associates, PC can help with this process, contact the office at 718-769-7200.
2005 Bankruptcy Act Credit Counseling & Means Test
The implementation of the 2005 Bankruptcy Act made it a requirement for any individual filing bankruptcy after October 2005 to receive credit counseling. The counseling must be completed within six months of filing for bankruptcy. Once the individual has successfully filed bankruptcy, they will then be required to complete a course in financial management.
Once the individual has petitioned for bankruptcy, their income, expenses, and debt will be reviewed in order to classify which chapter of bankruptcy will need to be filed. If their income is under the median income for New York, they will be allowed to file Chapter 7 bankruptcy. If their income is above the median, additional tests will need to be done.
If you have additional questions on filing for bankruptcy, contact a Brooklyn bankruptcy attorney at Michael F. Kanzer & Associates, P.C. We have helped hundreds of individuals discharge their debts by providing expert protection against Chapter 7, Chapter 11, Chapter 12, and Chapter 13 bankruptcy for more than a decade.