Qualified New York City Bankruptcy Attorney
Many people do not understand the way the revised bankruptcy laws may affect them. Often a client will come into our office not realizing that they may still file Chapter 7 bankruptcy. Despite the changes to the bankruptcy laws, debtors still have the right to file for bankruptcy protection.
Serving the New York City Area, Including Long Island, and Brooklyn
At Law Offices of David I. Pankin, P.C., we have represented more than 4,500 bankruptcy clients from across the New York City area over the last 15 years. We understand the new bankruptcy laws and always take the time to explain them to our clients. Together, we can find lasting solutions through the various types of bankruptcies available. Contact our office by phone at 800-529-5910 to arrange your free initial consultation.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 brought many changes to bankruptcy law. One of the most significant changes was a means test to determine if some debtors have to pursue Chapter 13 instead of Chapter 7 bankruptcy.
Filing Requirements for Chapter 7 and Chapter 13
To file for Chapter 7 bankruptcy, the law requires that the debtor meet certain eligibility requirements. The debtor must initially demonstrate that the monthly average of his or her income over the preceding six months is below the median income for similar filers in the state where the debtor resides. The U.S. Department of Justice has determined that the median income for a New York resident filing for Chapter 7 protection is:
- $46,523 for an individual filer
- $57,006 for a family of two
- $67,991 for a family of three
- $83,036 for a family of four
- $6,900 additional for each member in excess of four
If the debtor can pass this hurdle and related eligibility requirements, a Chapter 7 filing is permitted. If, however, the debtor's income exceeds the stated median income, the law additionally requires the debtor to undergo an income and expense "means test" analysis to determine whether the debtor has the ability to repay a certain threshold amount of his or her debt.
The analysis can be complex. If the bankruptcy court ultimately determines that the debtor's disposable income per month is beneath a certain stated amount, the debtor may file for protection under Chapter 7. If the income, however, allows for debt repayment exceeding a certain stated amount, the debtor's only option may be to file a Chapter 13 bankruptcy petition.
Bankruptcy is Not the End, It Is a New Beginning
Unsure of whether you can file for bankruptcy or not? The experienced team at our firm understands the new bankruptcy laws. We can help you determine your eligibility and find the correct solution for your financial problems. Contact our offices by phone at 800-529-5910 to arrange for your FREE initial consultation with a dedicated lawyer.
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