New York City Bankruptcy Lawyers

Big Apple Bruised by Small Business Failures

Although the recession hit New York City late, job loss is estimated to reach 250,000 by mid-2010. Small businesses employ nearly 50% of the city’s private-sector workforce and layoffs and business closings are forcing many residents to file for bankruptcy. U.S. bankruptcies filed in 2008 hit record levels with over 47,000 in New York alone, and over 96% of those filed by consumers. It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009.

Investigating the New York Bankruptcy Process

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005. Seek the advice of an attorney/law firm with specific experience in New York bankruptcy matters. A competent attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.

Bankruptcy Chapter Choice in New York

Generally, all consumers considering bankruptcy in New York will file either a Chapter 7 (liquidation) or Chapter 13 bankruptcy.  Chapter 13 provides for your creditors to be paid back all or a portion of the debt owed, over a period of years. Chapter 13 is often used in New York to prevent a foreclosure of a home or repossession of a car. New York filers who do not pass the Chapter 7 “means test” will be required to file Chapter 13 or remove themselves from the bankruptcy process entirely.

Debts Payments Outside of Your New York Bankruptcy

Certain debt payments may be considered preferential and the New York Bankruptcy Trustee carries “avoidance power” to overturn certain transfers or obligations made by the debtor prior to or during bankruptcy:

·         Property transferred or paid during relevant time period before bankruptcy

·         Something passed from the bankruptcy to a creditor

·         Payment occurred at a time when the bankrupt consumer/business was insolvent

·         One creditor is given advantage over another creditor

·         Creditor suspected or should have suspected that the bankrupt consumer/business was insolvent

Credit Repair After Your New York Bankruptcy

Begin working on your credit repair right away. Try applying for credit and once accounts are open use them sparingly and pay them off on time. You do not need to carry a balance! Get a secured loan on a house, car or student loan and at least one credit card or home equity line.  Debts commonly remain active when they should show as discharged in bankruptcy. Contact the credit agencies involved to correct these mistakes.

Steps for the New York Bankruptcy Filer

New Yorkers continue to suffer, as the State’s economy struggles to recover. Decisions you make and actions you take can have a positive or negative effect on the outcome of your bankruptcy proceedings. The U.S. Bankruptcy Court warns that“Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended."

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in New York City, NY.