How Many Different Kinds of Bankruptcy are There in New York?
There are four different types of bankruptcy, which are referred to under federal law as chapters. Each chapter is designed to relieve a particular type of debt. The options available for filing bankruptcy can quickly become overwhelming and need to be thoroughly explained by a New York, NY bankruptcy attorney.
- Chapter 7 Bankruptcy: Chapter 7 bankruptcy is the most popular form of bankruptcy for the general public. The person or business filing can keep all or most of their assets up to certain pre-set limits. These limits are known as exemptions. Filing with the assistance of an experienced Chapter 7 bankruptcy attorney in New York, NY, ensures that all your property that qualifies as exempt is preserved.
- Chapter 11 Bankruptcy: Chapter 11 bankruptcy is used mainly for commercial businesses. However, certain people with very high amounts of debt can file for Chapter 11 bankruptcy. You should consult a business bankruptcy attorney if you believe you may qualify for a Chapter 11 bankruptcy in New York.
- Chapter 12 Bankruptcy: A Chapter 12 bankruptcy is a family farmer bankruptcy. It is a rare occurrence and requires expertise from a bankruptcy attorney.
- Chapter 13 Bankruptcy: Chapter 13 bankruptcy is debt adjustment bankruptcy. It is also known as a debt reorganization. In Chapter 13, your New York, NY, bankruptcy attorney submits a repayment plan for your debts to the court, which then requires approval. This Chapter allows people to file for Bankruptcy, utilize all of its protections from creditors, and (if they qualify) keep their primary residence and vehicles.
Most bankruptcies filed by individual people and married couples are Chapter 7 or Chapter 13. It is absolutely imperative to speak with a skilled bankruptcy attorney before you commit to filing any type of bankruptcy in New York.
Does Bankruptcy Take Place in a Court of Law in New York?
Bankruptcy is a legal process that takes place in a court of law when a person or a company has become overwhelmed by debt to the point that they need legal help to reorganize or forgive their debt. While bankruptcy may be common, it’s complicated legal territory that should only be entered into with the guidance of a highly trained bankruptcy attorney. Bankruptcy is part of federal law, so bankruptcy cases are all handled in federal courts.
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Glenn R. Meyers, Esq., has been practicing law for 26 years in the New York metropolitan area, including Nassau, Suffolk, and Westchester Counties. The Meyers Law Firm (and its predecessors) is a family-operated firm originally established in the 1930s. We believe the firm’s success comes from respecting each client and listening carefully to their unique needs while providing reliable and effective legal solutions. Mr. Meyers and his team focus on estate planning, irrevocable trusts, revocable trusts, Last Wills and Testaments, and other aspects of elder law, including long-term care and Medicaid planning, special needs planning, and guardianship. The law firm also has a personal injury, general litigation, and Bankruptcy division.