Bankruptcy in Buffalo
Recovery A Long Process for Buffalo Residents
Recent reports say there are a few signs of economic recovery in the Buffalo area, but the legions of unemployed will not see an end to their personal financial woes any time soon. Many struggle to avoid foreclosure while others walk away from their homes, owing more than the home is worth. 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.
Buffalo Bankruptcy Procedures
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 Buffalo 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.
Major Changes Made in 2005 Will Impact your Buffalo Bankruptcy
Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:
- Required pre-bankruptcy counseling
- Strict guidelines to qualify for a Chapter 7 filing (liquidation proceeding) including a “Means Test” to determine your ability to pay debts
- Tight restrictions on repeat filers
- Random audits to verify accuracy of bankruptcy filing
- Enhanced oversight for Chapter 11 (reorganization) small business cases
Filing Chapter 7 or Chapter 13 Bankruptcy in Buffalo
Generally, all consumers considering bankruptcy in Buffalo 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 three to five years. Chapter 13 is often used in Buffalo to prevent a foreclosure of a home or repossession of a car. Buffalo 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.
- 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 Buffalo, NY.
Certain Debts May Not be Discharged in Your Buffalo Bankruptcy:
- Taxes owed to government agencies, such as the I.R.S., State of New York, etc.
- Student loans (unless undue hardship can be proved),
- Debts incurred after the bankruptcy is filed
- Debts owed to a spouse for divorce-related obligatory expenses
- Debts not listed or scheduled or which the debtor waived discharge
- Debts for willful and malicious injury by the debtor to another person or property owned by another
Filing Your Bankruptcy in Buffalo
Buffalo residents 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.” To locate an attorney in your area click here.
