Q&A: What income threshold would you have to meet in order to discharge all your debt, in a bankruptcy filing in NY?

Question by Tongo44: What income threshold would you have to meet in order to discharge all your debt, in a bankruptcy filing in NY?
Bankruptcy

Best answer:

Answer by rpg
Superficially the current median income (per household size) for NY is:

1 mortal ,803
2 people ,898
3 people ,477
4 people ,966

In other words, if you acquire less than that amount (depending on your household size) in NY you are automatically eligible to file Ch 7 (the bankruptcy Chapter that discharges all debts).

If you acquire more than the median, it does NOT mean that you automatically must file Ch 13 (the one in which you commit future disposable income to at least partial repayment of your debts). It means that your attorney will need to complete the “long form” of the Means Test, which grants deductions for various expenses (similar to the long form of an income tax return). Most bankruptcy attorneys report that a great many clients who, on first glance, APPEAR not to pass the Means Test, actually do pass it (i.e., can file Ch 7) after all the acquirable deductions are taken on the Long Form of the Means Test.

Make an appointment with a local bankruptcy attorney to receive an assessment of your particular situation. Most offer one free or very low cost appointment to review your particular financial situation and advise you regarding your bankruptcy and non-bankruptcy options.

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Some Thoughts on Bankruptcy

Some Thoughts on Bankruptcy

If you have found yourself overburdened by debt and your income at the present time is not enough to cover your bills than you might want to think about bankruptcy as one of your options. If this is the case then there are a few things that you will want to take into consideration. You sertainly don’t want to let your creditors know that you are considering bankruptcy, or they make the preemptive move of seeking a default judgement against you.

If you are going to try to negotiate with your creditors then you should seek out the help of a credit counselor who can assist you in this area. If you have prefabricated the decision file for bankruptcy then you will definatly need the help of a eligible bankruptcy attorney. After your attorney files the papers at the court clerks office your creditors will then be notified that you intend to have your bills discharged.

This will be the beginning of your creditors trying to negotiate with you seriously. Your attorney can advise you on these matters, because one of the things that they will try to get you to do is to reaffirm your loans which will make them exempt from bankruptcy proceedings. Depending on what they are offering you you might select to do this and this is quite often the case.

You have to bear in mind that a bankruptcy will alteration your credit for years to come and it will be very difficult to get credit with a bankruptcy on your record. There are many things that a good credit councilor can do for you such as arranging a low interest individualized loan that you can use to pay off any burdensome high interest debt that you might have. It is important to bear in mind that bankruptcy should always be your last resor

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