Recent Bankruptcy Law Changes

New York Bankruptcy Attorney

Many people do not understand the way the new 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. One of the most significant changes the new bankruptcy laws brought about was a means test to determine if some debtors have to pursue Chapter 13 instead of Chapter 7 bankruptcy. At the Law Offices of David I. Pankin, P.C., we have represented more than 3,200 bankruptcy clients from across New York City and other New York areas, spanning a period of over 10 years. We know the new bankruptcy laws and are able to explain them to our clients and find solutions through various types of bankruptcies that help resolve financial difficulties. Contact our office by phone at 866-372-0591 to arrange for your free initial consultation.

New York City, Brooklyn, and  Long Island Bankruptcy Lawyer

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has brought many changes to bankruptcy law. Concerning the ability of a debtor to file for protection under Chapter 7 bankruptcy, for example, the law requires that the debtor meet newly enacted 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 between October 1, 2006 and January 31, 2007, is $42,896 for an individual filer, $51,994 for a family of two, $62,815 for a family of three, and $74,501 for a family 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.

Dedicated to protecting YOUR rights

Unsure of whether you can file for bankruptcy or not? The experienced team at our firm, located in Brooklyn, New York, understands the new bankruptcy laws and can help you determine your eligibility and find the correct solution for your financial problems. Contact our offices by phone at 866-372-0591 to arrange for your FREE initial consultation.