What Does Filing Bankruptcy in New York Entail?

Those filing for bankruptcy in New York may think the process is an easy out to solving financial problems. While it is an option, it is not any easy road. The road to completing a bankruptcy case is filled with requirements, paperwork, deadlines and transparency. For the debtor to be relieved of financial obligations, using the services of New York bankruptcy lawyers is likely the best avenue to a positive completion of the case.

There are many requirements to filing bankruptcy in New York. They have changed in the past few years to make it more difficult. Since the process is handled through the federal court, the rules must be followed to the letter. When they are not, the chances of the case being denied are very high. Having an attorney who understands the process and can get the best deal available for their client will help make the bankruptcy process in New York easier to understand and fulfill.

The US Trustee’s Office appoints a representative to oversee each case. The debtor is required to produce certain paperwork to the trustee by specific deadlines. Contact and debt information for any creditors must be disclosed. This includes a financial accounting of all money, including earnings, savings, loans, debts, investments and expenditures. All possessions, such as real estate and vehicles, must be accounted for on a list as well. A bankruptcy lawyer will understand how to answer all of the questions and will know which paperwork fulfills which requests for documents.

Legal Proceedings
Each step of the New York bankruptcy process is accompanied by legal paperwork. Sometimes hearings or trials are required. Anyone that is not trained in federal legalese would likely benefit from the services of a New York bankruptcy lawyer to make sure that no deadlines are missed and all paper work is filed promptly and correctly. An experienced attorney will know when other parties to the case are being unreasonable in asking for certain things. They will also know when it is wise to simply produce everything requested.

All creditors involved in a bankruptcy case are hopeful to receive all of their money owed by the debtor. While this is usually impossible, it is likely that some of the creditors will receive some of their money. A payment plan will be set up to help distribute any money available to settle the debt owed. Those with loans secured by collateral will be the first ones in line to receive payment. They will likely have attorneys who try very hard to make sure they receive every penny possible. The debtor’s attorney makes sure that the creditors’ attorneys cannot intimidate their client unnecessarily.