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Avoid Mistakes When Planning and Filing Virginia Bankruptcy Cases
The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.
Free - 2010 Bankruptcy Strategies Explained
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Chapter 13 Bankruptcy in New York State
Readjustment of debt is available to debtors who choose to file
Chapter 13 New York bankruptcy cases. Options include: extended payment
terms, lower interest, principal discounts, the elimination of late
fees, and even the discharge of remaining balances, all with continuing
court protection. Many US Code provisions apply to all chapters, while 11 U.S.C. Sec. 1301
applies only to Chapter 13.
Chapter 13 is designed to allow financially distressed individuals who file New York bankruptcy to invoke a
cloak of protection provided by the courts. Under court supervisions, assets are
protected, and a proposed plan must be filed that provides for payment of all or
part of debts owed. Following confirmation, a trustee collects monthly payments, deducts a fee for services
provided, disburses payments to creditors, and provides a periodic accounting to the court. All laws
applicable to New York bankruptcy are currently under review by the U.S. Congress, especially payment amounts required in Chapter 13.
Reform bills specifically target New York bankruptcy by placing a mandatory limit on all state homestead
exemptions, and limit allowable living expenses to a standard adopted from the IRS which applies to criminals
charged with tax evasion.
New York Bankruptcy Plans
Chapter 13 is designed for
individuals with regular income. The term "wage earner" is derived from this requirement and is still in use
today for New York bankruptcy under Ch. 13. These plans are ideally suited for employees who desire
court protection from creditors and are also permissible for sole proprietors who satisfy the "regular income"
requirements of the Code. Plans may provide either full or partial payment of
debts, with discharge of remaining balances, if any, upon completing all payments. Plan terms are available for
New York bankruptcy cases ranging from 3 to 5 years. A plan lasting more than three years must be approved by the court "for cause."
All Chapter 13 plans are limited to a maximum of 5 years. 11 U.S.C. 1322(d).
Individuals, including self-employed
owners of sole proprietorships, are authorized to file Chapter 13 if owing less
than $269,250 in unsecured debts, and less than $807,750 in secured debts. 11
U.S.C. 109(e).
Qualification for New York bankruptcy relief is not
based on US citizenship. Residency within the state, or property
ownership within the state may satisfy jurisdictional requirements for
consumers seeking relief under Chapter 7 or Chapter 13 of the US Code.
Back to New York Bankruptcy topic page.
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