Filing for bankruptcy is not an indication that you are lazy, greedy or morally not upright. This is because a lot of bankruptcies are brought about by medical conditions, divorces and unemployment. Filing for bankruptcy involves a very special decision. Whether you decide to file or not to file for bankruptcy, these are some of the things that you should know.
You should list all the debts that you owe and also remember to list the name of every person that you owe. This list includes people that you believe you do not owe but who think you owe them. This is because the disputed debt may turn out to be an actual debt in fact. If you fail to list a debt, that debt may not be discharged.
You should also never hide properties. You must always give a full disclosure of all your property and financial assets. Trying to hide your property and other assets might get you into trouble. This is because there are a lot of ways in which creditors can find out what you own and what you do not own. Your bank statements, credit card statements, tax returns, insurance policies and even data from your computer can expose you.
Remember that all bankruptcy filings are done under the penalty of perjury. This means that you swear to tell the whole truth concerning your bankruptcy and you should therefore be punished if you fail to tell the truth or the whole truth.
Your best approach in filing for bankruptcy is to truthfully declare all of your assets. Remember, the first and best step to filing for bankruptcy is to see a bankruptcy attorney to explain all your options under the law to you.
If you’re contemplating filing bankruptcy in NYC, it’s important to take the time to educate yourself as thoroughly as possible before you actually start the process. Not only will this help you make informed decisions along the way, but it also ensures you’ll fully understand the ramifications of events as they unfold.
Some of the key steps to filing bankruptcy in NYC are set forth below, but as with any legal matter, always seek competent legal advice from a NYC bankruptcy lawyer before proceeding.
Mandatory Credit Counseling – 180 Days Before Filing
Many people mistakenly believe that the first step in filing bankruptcy in NYC is to file the actual petition. But the new bankruptcy laws enacted in 2005 now dictate that people intent on filing bankruptcy in NYC undergo credit counseling through a government-approved program before actually filing the petition.
Establish/Verify Residency
In order for you to qualify for filing bankruptcy in NYC, you must have been a resident of the state of New York for at least 90 days prior to filing. If you’ve lived in New York less than 90 days, you have to either wait until you meet the 90-day requirement, or else file in your previous state of residence.
File the Petition for Bankruptcy
Your case officially starts once your attorney files the petition with the court. At that time, a trustee will be appointed to those filing for bankruptcy in NYC. The trustee will oversee your case throughout its entirety, whether it be a few months for Chapter 7, or up to five years for Chapter 13.
Meeting with Your Creditors
In order to comply with the terms of federal bankruptcy law regarding filing for bankruptcy in NYC, your creditors will be given a chance to meet with you to review the debt you owe. This happens at what is a referred to as a 341 Meeting, or a Meeting of Creditors. This is often the most intimidating part of the process for most people, but be assured the meeting is usually short, and your attorney will prepare you for it ahead of time.
Mandatory Financial Education
Pursuant to the new bankruptcy laws in 2005, those who engage in filing bankruptcy in NYC must undergo mandatory financial education in order to prepare them to improve their fiscal decisions and habits.
Discharge of Debts
If there are no objections from your creditors as to the truthfulness of your bankruptcy petition, and you faithfully fulfill the terms of the bankruptcy process, your debts will be discharged and your case will conclude.
This is just a brief overview of the process for filing bankruptcy in NYC. Because bankruptcy entails many life-altering consequences, it’s imperative that you seek legal counsel from a reputable bankruptcy attorney in NYC.
