State Laws

New York Bankruptcy

     

Laws for bankruptcy are no different in New York than they are in any other state. However, every state has been affected by the 2005 Bankruptcy Act that was presented to Congress by the President. Since this act's creation all the previous laws and regulations have been added to.

Additions include increased monthly payments for Chapter Thirteen bankruptcy and additional regulations for granting Chapter Seven bankruptcy. Bankruptcy abuse prevention acts have also been passed to disallow the abuse of the United States' bankruptcy system. These acts have been included in recent years because the system has seen much abuse from repeated offenders.

Filing for Bankruptcy
All bankruptcy petitions are to be filed towards the bankruptcy court of New York. An individual is eligible to petition by his or herself or a husband and a wife may petition together in a joint petitioning. Before petitioning every United States citizen is required to submit to a means test that will compare his or her income, household arrangements, and debt to that of all other citizens in the state of New York. A median will then be calculated.

Whether or not an individual falls above or below the median can designate which kind of bankruptcy he or she can file. The new stipulations from the 2005 Bankruptcy Act were partially place to limit the number of individuals who are eligible for Chapter Seven bankruptcy. This kind of bankruptcy eliminates debts in less than six months and halt foreclosure. Because of the speed of Chapter Seven bankruptcy, it is often abused.

Chapter Seven Bankruptcy
Chapter Seven bankruptcy is for the most severe of bankruptcy cases where individuals cannot pay one hundred dollars against their debts each month. A trustee is assigned to each Chapter Seven case and will liquidate the non-exempt property. He or she will also divide the exempt property from the non-exempt property.

The compensation received will be used to pay off creditors. Exempt property is broken into different categories in the state of New York. These categories include homestead, personal property, insurance, miscellaneous, pensions, pensions, public benefits, tools of the trade, and wages.

These categories are divided by items and item values. These can include real property up to ten thousand dollars, books up to fifty dollars, cookery, cash under twenty-five hundred dollars, motor vehicles under twenty-four thousand dollars, disability insurance, life insurance, annuity contract benefits, alimony, child support, IRAs, unemployment compensation, veteran's benefits, farming equipment, uniforms, and ninety percent of earnings through milk dealers or unpaid wages from the previous sixty days.

Chapter Thirteen Bankruptcy
Chapter Thirteen bankruptcy does not require individuals to sell any property. Instead individuals are required to use their own income and funds to pay off their debts. The New York bankruptcy court will assigned a specific repayment plan according to the individual's income, expenses, and how many people live in his or her household.

The payment plan will assign specific amounts to be paid each month for five years. No plan can exceed this five-year limit nor be under three years.

See also:
New York Felony
New York Gun Laws
New York Divorce
New York Misdemeanor External link (opens in new window)
New York Expungement External link (opens in new window)