The State of New York is experiencing a similar phenomena as other US states. The federal Administrative Office of the U.S. Courts recently issued a press on release declaring "Bankruptcy cases continue to set record filing pace in the consumer sector and break caseload records. Only Chapter 11 filings have declined in recent years.." The greatest rate of increase for in New York bankruptcy filings during last year occurred in the Southern District (New York City and White Plains), followed by the Western District (Rochester and Buffalo area). The Northern District (Syracuse and Albany Divisions) rate of increase was almost identical to the national average. The lowest rate of increase occurred in the Eastern District ( Brooklyn primarily) for the second year. Chapter 7 and Chapter 13 accounted for approximately 97.7% of all New York bankruptcy cases filed. Statewide, only Chapter 11 business filings decreased, representing 2.1% of total case volume in New York State bankruptcy cases.
Currently, New York bankruptcy laws still permit the full & final discharge of debts in Chapter 7, although qualification is now more difficult since the passage of new bankruptcy reform laws. Chapter 13 combines all debts and past due payments into a fresh start, with one monthly payment to a trustee, at reduced interest. Also, partial payment plans are permitted that discharge remaining balances owed to creditors when the plan is completed. The maximum payment in Chapter 13 is calculated using disposable income, after deducting necessary living allowances.
In both Chapter 7 and Chapter 13, all New York bankruptcy cases are subject to court approval. Also know that New York bankruptcy courts require hearings if creditors, trustees, or parties in interest file objections. Judges may also schedule hearings upon their motion. Nevertheless, after all objections are resolved to the satisfaction of the court, discharge of debts or confirmation of the plan becomes mandatory. Or, if objections are not resolved, cases are normally dismissed. The success of each case is determined by careful planning before selecting chapter, options and filing date, anticipating what, if anything, courts may deem objectionable.
New bankruptcy laws limit the maximum value of homestead exemptions in all states. Also, new limitations prevent anyone earning over the state median income from filing Chapter 7, while Chapter 13 payments are increased in some cases, and judges must impose sanctions in many new circumstances. These new law became effective as of October 17, 2005. Now, more than ever, care in planning and selecting filing options are critical.
Most New York bankruptcy lawyers who represent consumer debtors offer free initial consultations. These lawyers usually welcome inquires from potential clients. Free initial consultations create an excellent opportunity to explore alternatives, receive free legal advice, and compare anticipated results before deciding upon any course of action. If you consider filing, prepare a detailed list of questions. Meet with at least three lawyers. By comparing costs, benefits and options, without obligation, your most profitable path will become clear.
New York Bankruptcy District Total Filings: