Bankruptcy Buffalo NY – FAQs

Should I file bankruptcy?

I consider all of the facts and/or circumstances of each individual client before determining whether or not the filing of a bankruptcy is advisable. That is why I provide a free, no obligation first consultation to each of my clients. I review with your debts and assets to advise you on what debts are dischargeable, and what assets are protected under the bankruptcy code.

Will I lose my home?

In New York State a debtor can protect up to $75,000.00 each in equity that they have in their homestead. This means that joint debtors can protect up to $150,000.00 of equity in their home, providing the property is owned jointly.

What is the difference between a Chapter 7 and a Chapter 13 bankruptcy?

A Chapter 7 bankruptcy provides for the complete discharge of indebtedness, except where the debtor wishes to reaffirm on an obligation, such as a mortgage or a car loan. Under a Chapter 13 bankruptcy a percentage of your indebtedness is paid back over a three to five year period of time, the repayment plan depends upon the value of your assets as well as your budget. I personally meet with you to discuss your options, including credit counseling and debt consolidation, so we will be able to best resolve your financial difficulties.

Should I use my 40lk or IRA account to pay creditors before filing a bankruptcy?

Never do so without first consulting an attorney. Retirement benefits of this nature are generally exempt under the bankruptcy code, which means that you get to keep them should you file a bankruptcy. Therefore, depleting these assets prior to bankruptcy would be a big mistake.

What is a bankruptcy discharge and how does it operate?

One of the reasons people file for bankruptcy is to get a “discharge”. A discharge is a Court order that states that you do not have to pay most of your debts. The discharge only applies to debts that arose before the date that you filed for bankruptcy. It is important to list debts in your bankruptcy schedules. For example, it is possible that if you do not list a debt, the debt will not be discharged.

I filed a Chapter 7 bankruptcy in the past can I file again?

You can only receive a Chapter 7 discharge once every eight years. You may not file a Chapter 13 bankruptcy if you have filed a Chapter 7 bankruptcy within the last four years.

My house is in foreclosure, will a bankruptcy stop the foreclosure sale?

If you are qualified to file a Chapter 7 or a Chapter 13 bankruptcy, and have not had two or more cases dismissed within one year of filing a bankruptcy petition, an automatic stay will be granted upon the filing of your bankruptcy. An automatic stay stops the lender or creditor from continuing with the foreclosure without first making application to the Court to lift the automatic stay. Therefore, under a Chapter 7 bankruptcy, this may provide you with additional time in which you can attempt to modify your loan. In contrast, under a Chapter 13 bankruptcy, the arrearages owed to the lender are paid back over a period of three to five years, saving your residence.