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180 days! Accordingly do not take the course if you are not ready to file for personal bankruptcy because 180 days passes you will need to retake it.
By saving as much money as possible and by using credit is a responsible way. A debtor should get a securitized credit card after the bankruptcy filing and then charge and repay on that card. After 6 months of using the securitized credit card, call the bank and ask that the credit limit on the securitized credit card be increased and this process will rehabilitate a debtors credit.
If an individual files for chapter 7 bankruptcy and they owe money on a credit card, then the amount of money owed on the credit card will be discharged in bankruptcy,s but the credit card company will cancel the credit card. If the debtor wants to keep the credit card after the bankruptcy filing, they may reaffirm the debt which will require them to pay the money due on the credit card after the bankruptcy filing. Reaffirmation requires that the debtor file a special form or agreement with the bankruptcy court with the bankruptcy petition. The Debtor's attorney prepares the reaffirmation agreement.
The answer is yes! The amount of cash that is exempt in a chapter 7 personal bankruptcy filing in New York State is $5,000 if the debtor does not own real estate. Accordingly, for a single debtor, if their New York State or Federal tax refund exceed $5,000 then the bankruptcy trustee can require the debtor to turnover to the bankruptcy trustee the difference between the tax refund(s) and $5,000. However for example if a debtor files for bankruptcy in June of a given year, then the amount of the tax refund would be prorated between the pre bankruptcy period (January through June which monies would be paid to the bankruptcy and the post bankruptcy period (July through December which monies would not be paid to the bankruptcy trustee. If a debtor thought that they may be receiving a large tax refund after their bankruptcy filing, they could also lower their claimed exemptions or withholding to reduce their tax refund
Trust fund taxes and sales taxes are not dischargeable in bankruptcy. However, federal and state income taxes that meet the following criteria are: 1. The tax year in question is more than 3 years prior to the filing the bankruptcy, 2. the tax has been assessed more than 240 days prior to the bankruptcy, 3. the tax return for the year in question was filed at least more than two years prior the bankruptcy and 4. the tax return is non-fraudulent and there is no showing of willful evasion of payment of a the tax. Discharging taxes in bankruptcy is technical and complex and James H. Shenwick has an LLM in Taxation from New York University Law School and he has discharged many taxes for clients in personal bankruptcy filings. The starting point to determine if taxes are dischargeable in personal bankruptcy is the review of a clients tax transcript which is obtained from the IRS.
A person who owes money is know as a debtor. A creditor seeking to collect money under New York law generally has 3 remedies. The first is garnishing 10% of a debtor's paycheck, the second is liening and levying on the debtor's bank account, checking account or brokerage account and the third is docketing a judgment against real estate to prevent the debtor from selling or refinancing the real estate. A personal bankruptcy filing will stop all lawsuits and prevent garnishment, liens and levies and the docketing of judgments against real estate pursuant to section 362 of the bankruptcy code.
The meeting of creditors or 341 meeting, is schedule approximately 30 days after a debtor files for bankruptcy. At that meeting the debtor must bring their social security card and a photo id which shows a New York address.
Chapter 7 bankruptcy is known as "liquidation and fresh start". The chapter 7 bankruptcy is required to sell non-exempt assets in a chapter 7 bankruptcy and distribute those monies to creditors. Non-exempt assets could be a house, coop or condominium with more than $150,000 of equity for single debtor, a car with more than $4,000 of equity or a business that a debtor wants to keep. Accordingly if a debtor has a non-exempt asset which they want to keep after a bankruptcy filing they would need to file chapter 13 bankruptcy not chapter 7.
In a chapter 13 bankruptcy, besides meeting with a client, attending the 341 meeting (that is the meeting with the bankruptcy trustee) there are 2 additional steps. The attorney for the Debtor must prepare and file with the Bankruptcy Court a chapter 13 plan and attend the hearing on plan confirmation. In a chapter 7 bankruptcy a plan is not drafted and filed with the Court and there is no hearing on plan confirmation so the legal fees for chapter 7 bankruptcy are less than for a chapter 13 bankruptcy.
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