Bankruptcy-Chapter-7-vs-13-Which-Is-Right-For-You

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Published: Jun 7, 2023 | Updated: Jun 7, 2023 |

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Bankruptcy Chapter 7 vs 13 | Buffalo NY: Which is Right for You?

Are you struggling with overwhelming debt and don't know where to turn? A bankruptcy lawyer may be the solution for you. Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay their debts under the protection of the bankruptcy court. In Buffalo, NY, bankruptcy cases are governed by federal bankruptcy law. There are two main types of bankruptcies: Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). It's important to note that bankruptcy can affect your credit reports, equity, and interest rates.

Chapter 7 involves selling off a debtor's nonexempt property to pay creditors, while Chapter 13 allows debtors to keep their equity and repay their debts over time with the help of a lawyer. The type of bankruptcy you choose will depend on your financial situation, interest, and goals to repay a portion of your debts.

If you're considering filing for bankruptcy in Buffalo, it's important to have an experienced lawyer on your side who can help guide you through the process. Stephen K. Underwood is a trusted Buffalo bankruptcy attorney who can help people achieve a successful discharge of their debts. Contact Stephen K. Underwood today to schedule a free consultation and determine your qualification. It's also important to note that bankruptcy can affect your credit reports.

Bankruptcy, with the help of a qualified lawyer, can provide relief from overwhelming debt and give you a fresh start financially. But what exactly is a discharge? A discharge is when the court releases you from any further obligation to pay certain debts that were included in your bankruptcy case, regardless of the equity or interest in them. It's important to understand all aspects of the bankruptcy process, especially with regards to your lawyer's qualification, before making any decisions.

Overview of Chapter 7 and Chapter 13 Bankruptcy in Buffalo, NY

What is the difference between Chapter 7 and Chapter 13 bankruptcies?

Bankruptcy can be a difficult decision to make, but it can also provide a fresh start for those struggling with debt. In Buffalo, NY, individuals and businesses have two main options: Chapter 7 bankruptcy and Chapter 13 bankruptcy. It is important to consider the interest rates and qualifications associated with each option before making a decision.

Chapter 7 bankruptcy involves liquidation of assets to pay off debts. This means that some of your property may be sold by the trustee to pay back creditors. However, certain types of property are exempt from being sold, such as your primary residence (up to a certain value), personal property like clothing and household items, tools used for work, and retirement accounts.

Chapter 13 bankruptcy involves creating a repayment plan over a period of three to five years. This allows you to keep your assets while paying back creditors through monthly payments based on your disposable income. The amount you pay will depend on factors such as your income level and expenses.

How are chapter 7 and chapter 13 bankruptcies different?

One major difference between Chapter 7 and Chapter 13 bankruptcy is the timeline. Chapter 7 bankruptcy typically takes around three to six months from filing to discharge, while Chapter 13 bankruptcy can take three to five years.

Another difference is the cost. Filing for Chapter 7 bankruptcy is generally less expensive than filing for Chapter 13 because there are fewer legal fees involved.

The type of debt that each one addresses is also different. If you're struggling with debt, it's important to contact a bankruptcy lawyer. While both chapters can address unsecured debt such as credit card bills or medical bills, only Chapter 13 can address secured debts like mortgage arrears or car loans. If you're in New York, consider contacting Buffalo bankruptcy attorney Stephen K. Underwood for assistance.

What are the differences between chapter 7,11,and chapter12 versus chapter13 bankruptcies?

In addition to Chapters 7 and 13 bankruptcies available in the Buffalo NY area, those who are considering filing for bankruptcy may want to consult with a New York bankruptcy lawyer. There are also Chapters 11 and 12 bankruptcies that may be applicable, particularly for businesses or individuals with a large amount of debt. Chapter 11 allows the debtor to reorganize their finances while continuing to operate their business.

Chapter 12 bankruptcy is similar to Chapter 13 but is designed specifically for family farmers or fishermen. This type of bankruptcy allows them to restructure their debts and continue operating their business.

How are chapter 7 and chapter 13 bankruptcies similar?

Both Chapter 7 and Chapter 13 bankruptcies can provide relief from overwhelming debt. They both offer an automatic stay that stops creditors from attempting to collect debts during the bankruptcy process.

Both types of bankruptcy require credit counseling before filing. This helps ensure that you understand the implications of filing for bankruptcy and explore other options before making a decision.

Which one should you choose: chapter 7 vs chapter 13?

The decision between Chapter 7 and Chapter 13 bankruptcy depends on your individual circumstances. If you have mostly unsecured debt, little income, and few assets, Chapter 7 may be the best option for you as it will allow you to wipe out your debt quickly without losing too many assets.

However, if you have regular income and want to keep your assets such as your home or car, then Chapter 13 may be a better option because it allows you to create a repayment plan over time while keeping your property. If you're considering bankruptcy, it's important to seek the advice of a bankruptcy lawyer. For guidance on bankruptcy proceedings, contact Buffalo bankruptcy attorney Stephen K. Underwood.

It's important to note that not all debts can be discharged in either type of bankruptcy. For example, student loans cannot typically be discharged in either type of bankruptcy unless there are extenuating circumstances such as permanent disability.

Qualifications for Filing Chapter 7 Bankruptcy in Buffalo, NY

Passing the Means Test

To qualify for Chapter 7 bankruptcy in Buffalo, NY, you must pass the means test. This test compares your income to the median income in New York State. If your income is below the median, you automatically pass the means test and are eligible to file for Chapter 7 bankruptcy. However, if your income is above the median, you will have to complete a more detailed calculation to determine whether you still qualify.

The calculation involves subtracting certain allowable expenses from your monthly income to arrive at your disposable income. If your disposable income falls below a certain threshold set by law, you can still file for Chapter 7 bankruptcy. However, if your disposable income is too high, you may be required to file for Chapter 13 bankruptcy instead.

Credit Counseling Course

Before filing for Chapter 7 bankruptcy in Buffalo, NY, you must also complete a credit counseling course within 180 days of filing. The course is designed to help debtors understand their options and develop a plan for managing their finances going forward.

The course can be completed online or over the phone and typically takes about an hour to complete. Once you have finished the course, you will receive a certificate that must be filed with the court as part of your bankruptcy petition.

Previous Bankruptcy Filings

If you have previously filed for Chapter 7 bankruptcy and received a discharge of debts, there are restrictions on when you can file again. Specifically, if it has been less than eight years since your previous discharge date, you cannot file for Chapter 7 bankruptcy again.

However, this does not mean that you cannot file for any type of bankruptcy during this time period. You may still be eligible to file for Chapter 13 bankruptcy or other types of debt relief depending on your circumstances.

Non-Dischargeable Debts

Not all debts can be discharged through Chapter 7 bankruptcy in Buffalo, NY. Debts that are considered "non-dischargeable" include things like child support, alimony, and certain tax debts.

If you have these types of debts, you will still be responsible for paying them even after your bankruptcy case is closed. However, filing for Chapter 7 bankruptcy may still help to alleviate other types of debt and free up more of your income to put towards these non-dischargeable obligations.

Non-Exempt Assets

In a Chapter 7 bankruptcy case, some of your assets may be sold to pay off your creditors. However, not all assets are subject to sale. Some assets are considered "exempt" under state or federal law and cannot be taken by the bankruptcy trustee.

Common examples of exempt assets include household goods and furnishings, clothing, retirement accounts, and personal vehicles up to a certain value. If you have non-exempt assets that could be sold in a Chapter 7 bankruptcy case, you should discuss your options with an experienced bankruptcy attorney before filing.

Understanding Bankruptcy Exemptions in Buffalo, NY

Bankruptcy can be a stressful and overwhelming experience for anyone. However, understanding bankruptcy Exemptions can help ease some of the burden. In Buffalo, NY, debtors have access to various bankruptcy exemptions that allow them to protect their assets from being liquidated to pay off creditors.

Bankruptcy Exemptions in Buffalo, NY

Bankruptcy exemptions are laws that allow individuals filing for bankruptcy to keep certain types of property from being sold or taken by creditors. These exemptions cover different types of property such as homes, vehicles, personal property, and retirement accounts.

The specific exemptions available to a debtor with regards to bankruptcy lawyer depend on their residency status and other factors such as the value of the assets in question. For instance, New York State law provides for a homestead exemption of up to $82,775 for a primary residence in Erie County which includes Buffalo (the exemption is doubled if the property is jointly owned by husband and wife). Debtors in NY, may also take the federal bankruptcy exemptions instead of the NY Exemptions.

Debtors may also be able to claim exemptions for tools of their trade, life insurance policies, and certain public benefits. It is important to work with an experienced bankruptcy attorney in Buffalo, NY who can guide you through the process and ensure that you take advantage of all applicable exemptions.

Protecting Your Assets with Bankruptcy Exemptions

One of the most significant advantages of filing for bankruptcy is that it allows debtors to protect their assets from being liquidated. This means that they can retain ownership and control over their property even after filing for bankruptcy.

For instance, if you file for Chapter 7 bankruptcy in Buffalo, your non-exempt assets will be sold or liquidated by the trustee appointed by the court. However, if you have properly claimed your exempt assets under New York State law or federal law (if applicable), those assets will not be sold or taken by creditors.

Similarly, if you file for Chapter 13 bankruptcy in Buffalo which involves reorganizing your debts into a payment plan over three to five years, you can keep your property as long as you continue to make payments under the plan.

Working with a Bankruptcy Attorney in Buffalo, NY

Navigating bankruptcy exemptions in Buffalo, NY can be complicated and confusing. Therefore, it is crucial to work with an experienced bankruptcy attorney who can help you understand the process and protect your assets.

A skilled bankruptcy attorney will assess your financial situation and determine which exemptions apply to your case. They will also guide you through the process of filing for bankruptcy, including filling out paperwork and attending hearings.

Moreover, a knowledgeable bankruptcy lawyer will ensure that you take advantage of all available exemptions and avoid any mistakes that could jeopardize your case. They will also work with creditors on your behalf to negotiate payment plans or settlements if necessary.

How Will Bankruptcy Affect My Credit Score in Buffalo, NY?

Bankruptcy Can Negatively Impact Your Credit Score in Buffalo, NY

Filing for bankruptcy can have a significant negative impact on your credit score. The exact impact depends on several factors, including the type of bankruptcy you file and your current credit score. In general, filing for Chapter 7 or Chapter 13 bankruptcy may cause your credit score to drop, however you may be a better credit risk post discharge.

Chapter 7 bankruptcy is often referred to as "liquidation" because it involves selling off your non-exempt assets to pay off creditors. This type of bankruptcy stays on your credit report for up to ten years from the date of filing and can lower your credit score by up to 200 points or more.

Chapter 13 bankruptcy, on the other hand, involves creating a repayment plan with creditors that typically lasts three to five years. While this type of bankruptcy may not have as severe an impact on your credit score as Chapter 7, it still remains on your credit report for up to seven years from the date of filing.

Bankruptcy Can Remain On Your Credit Reports For Up To 10 Years

As mentioned earlier, both Chapter 7 and Chapter 13 bankruptcies can remain on your credit reports for several years after filing. This means that potential lenders and creditors will be able to see that you filed for bankruptcy when they review your application.

It's important to note that while the bankruptcy itself may stay on your report for up to ten years (for Chapter 7) or seven years (for Chapter 13), any debts discharged during the process will also appear on your report.  These debts will remain on your report for seven years from the date they were discharged.

Rebuilding Credit Is Possible After Bankruptcy By Making Timely Payments And Managing Credit Responsibly

While filing for bankruptcy can have a significant negative impact on your credit score, it is possible to rebuild your credit over time. One of the most important things you can do is make timely payments on any debts that were not discharged during the bankruptcy process.

It's also essential to manage your credit responsibly by keeping your balances low and paying off your bills in full each month. This will show potential lenders and creditors that you are a responsible borrower who can be trusted with credit. In case of any financial difficulties, don't hesitate to contact Buffalo bankruptcy attorney Stephen K. Underwood for assistance.

Seeking The Advice Of A Credit Counselor Or Financial Advisor Can Help You Develop A Plan To Improve Your Credit Post-Bankruptcy

If you're struggling to rebuild your credit after filing for bankruptcy, seeking the advice of a credit counselor or financial advisor can be helpful. These professionals can help you develop a plan to improve your credit score over time by providing guidance on how to manage debt, create a budget, and establish good credit habits.

They may also be able to provide resources for obtaining secured credit cards or other forms of credit that can help you rebuild your credit score more quickly. 

Can Bankruptcy Stop Repossession or Foreclosure in Buffalo, NY?

Filing for Bankruptcy Can Temporarily Stop Foreclosure Proceedings in Buffalo, NY

If you are facing foreclosure in Buffalo, NY, filing for bankruptcy can provide temporary relief by stopping the foreclosure proceedings. When you file for bankruptcy, an automatic stay goes into effect that prohibits creditors from taking any collection action against you. This includes foreclosing on your home.

The automatic stay, when utilized with the guidance of a Buffalo bankruptcy attorney like Stephen K. Underwood, gives homeowners ample time to catch up on missed mortgage payments and explore other options to save their homes. However, it's important to note that the automatic stay is only temporary and will not permanently stop foreclosure unless other actions are taken.

Chapter 7 Bankruptcy May Delay Foreclosure but Not Permanently Prevent It

Chapter 7 bankruptcy is a type of bankruptcy that allows individuals to discharge most of their unsecured debts such as credit card debt or medical bills. However, it may not be able to permanently prevent foreclosure.

Under Chapter 7 bankruptcy, the trustee may sell some of your non-exempt assets to pay off your creditors. While this can help eliminate debt and free up money for mortgage payments, it does not provide a long-term solution for keeping your home.

However, Chapter 7 bankruptcy can delay the foreclosure process and give homeowners time to catch up on missed payments or explore other options such as loan modification or refinancing.

Chapter 13 Bankruptcy Provides a Long-Term Solution by Allowing Homeowners to Restructure Their Debts

Chapter 13 bankruptcy is another type of bankruptcy that provides a long-term solution for homeowners facing foreclosure in Buffalo, NY. Under Chapter 13 bankruptcy, individuals can restructure their debts and create a repayment plan that includes missed mortgage payments.

The repayment plan typically lasts between three and five years and allows homeowners to catch up on missed mortgage payments while still making regular monthly payments going forward. This can allow homeowners to keep their homes and avoid foreclosure.

Chapter 13 bankruptcy may also allow for the modification of certain secured debts such as car loans or second mortgages. This can help reduce monthly payments and free up money for mortgage payments.

Consult with an Experienced Bankruptcy Attorney in Buffalo, NY

While filing for bankruptcy can provide temporary relief from foreclosure proceedings in Buffalo, NY, it's important to consult with an experienced bankruptcy attorney to determine the best course of action. Bankruptcy is a complex legal process that requires careful consideration of your unique financial situation.

An experienced bankruptcy attorney can help you understand your options and guide you through the process of filing for bankruptcy. They can also help you explore other options such as loan modification or refinancing that may be better suited to your needs.

Frequently Asked Questions About Bankruptcy and Debt Relief in Buffalo, NY

What is Debt Relief and How Can It Help Me?

Debt relief refers to any strategy or program that helps you manage or eliminate your debts. If you are struggling with debt, debt relief can provide you with the tools and resources you need to regain control of your finances. There are several different types of debt relief programs available, including debt consolidation, debt settlement, and bankruptcy.

Debt consolidation involves combining multiple debts into a single loan with a lower interest rate. This can make it easier to manage your debts and reduce your monthly payments. Debt settlement involves negotiating with creditors to settle your debts for less than what you owe. While this can be an effective way to reduce your overall debt load, it can also have a negative impact on your credit score.

Bankruptcy is another option for those who are struggling with overwhelming debt. Chapter 7 bankruptcy involves liquidating assets to pay off creditors, while Chapter 13 bankruptcy involves reorganizing debts into a manageable payment plan.

Can Debt Settlement Be an Option for Me to Resolve My Debts?

Debt settlement can be an option if you have significant unsecured debts such as credit card balances or medical bills. However, not everyone qualifies for debt settlement programs, and it may not be the best solution for everyone.

Before considering debt settlement, it's important to understand how the process works. Typically, you will stop making payments on your debts and instead save up money in a separate account until you have enough funds to negotiate a lump sum payment with each creditor. This process can take several months or even years.

It's also important to note that settling your debts for less than what you owe can have a negative impact on your credit score and may result in tax consequences if the forgiven amount exceeds $600.

What Are Unsecured Debts and How Do They Differ from Secured Debts?

Unsecured debts are debts that are not backed by collateral, such as credit card debt or medical bills. Secured debts, on the other hand, are backed by collateral such as a car loan or mortgage.

In the event that you default on a secured debt, the creditor may repossess the collateral to recoup their losses. With unsecured debts, creditors do not have this option and must rely on other means of collecting payment.

How Can Credit Counseling Provide Information and Assistance in Managing My Debts?

Credit counseling is a type of debt relief program that provides education and assistance to individuals who are struggling with debt. A credit counselor can help you create a budget, negotiate with creditors, and develop a plan for managing your debts.

During a credit counseling session, you will typically review your income and expenses with a counselor who will then provide recommendations for reducing your debt load. This may include creating a repayment plan or enrolling in a debt management program.

What Options Do I Have for Repayment of My Debts?

If you're struggling with overwhelming debt, there are several options available for repayment. One option is to consolidate your debts into a single loan with a lower interest rate. This can make it easier to manage your payments and reduce your overall interest charges.

Another option is to enroll in a debt management program through a credit counseling agency. These programs involve making monthly payments to the agency which then distributes the funds to your creditors on your behalf.

Finally, bankruptcy may be an option if you're unable to repay your debts through other means. Chapter 7 bankruptcy involves liquidating assets to pay off creditors while Chapter 13 bankruptcy involves reorganizing debts into manageable payment plans.

How Can I Get More Information and Help with My Creditors and Unsecured Debt?

If you're struggling with unsecured debt and need help managing your finances, there are several resources available in Buffalo, NY. You can start by contacting a credit counseling agency or bankruptcy attorney to discuss your options.

The New York State Department of Financial Services also provides resources and information on debt relief programs and consumer protection laws. The Federal Trade Commission offers tips for managing debt and avoiding scams.

Remember, it's important to carefully consider your options before making any decisions about debt relief. With the right guidance and support, you can regain control of your finances and achieve long-term financial stability.

Bankruptcy and Marriage: Does My Spouse Have to File Too? Can I File Individually?

When considering filing for bankruptcy, many people wonder if their spouse is required to file as well. The short answer is no, spouses are not required to file for bankruptcy together. However, there are certain circumstances where it may be beneficial for both spouses to file jointly.

Joint Filing vs Individual Filing

One of the main considerations when deciding whether to file jointly or individually is income. If only one spouse files for bankruptcy, the non-filing spouse's income will still be considered in determining eligibility for Chapter 7 or 13 bankruptcy. This means that if the non-filing spouse has a high income, it could impact the filing spouse's ability to qualify for Chapter 7 bankruptcy or affect the amount of disposable income available for a Chapter 13 repayment plan.

Another consideration is debt. If both spouses have joint debts, it may make more sense to file jointly so that those debts can be discharged in one fell swoop. Filing jointly may allow you to double your exemptions and protect more property from liquidation.

However, there are also situations where it may make sense for only one spouse to file. For example, if most of the debt is in one spouse's name or if one spouse has significantly less income than the other.

Child Support Payments

It's important to note that child support payments are not dischargeable in bankruptcy and must continue to be paid regardless of filing status. In fact, any domestic support obligation (DSO) such as alimony or spousal support cannot be discharged in bankruptcy.

If you're considering filing for bankruptcy and have DSOs that need to be paid, it's important to talk with an experienced bankruptcy attorney who can help you navigate these complex issues.

Automatic Stay

Regardless of whether one or both spouses file for bankruptcy, the automatic stay will apply to both on joint debts and jointly held property. This means that creditors will be prevented from taking action.

The automatic stay is a powerful tool that can provide much-needed relief for those struggling with debt. It can stop wage garnishments, foreclosure proceedings, and even creditor harassment.

Alternatives to Bankruptcy

If you're considering bankruptcy but aren't sure if it's the right choice for you and your spouse, there are alternatives to consider. For example, debt consolidation or credit counseling may be viable options depending on your circumstances.

Debt consolidation involves combining multiple debts into one manageable payment with a lower interest rate. Credit counseling involves working with a professional who can help you create a budget and develop a plan for paying off your debts over time.

The Means Test

Finally, it's important to understand the means test when considering bankruptcy. The means test determines whether you qualify for Chapter 7 bankruptcy based on your income and expenses.

If your income is below the median income in your state, you automatically pass the means test and qualify for Chapter 7 bankruptcy. If your income is above the median income in your state, you'll need to complete further calculations to determine if you qualify.

Why You Need a Bankruptcy Attorney in Buffalo, NY and the Filing Process

Hiring a bankruptcy attorney in Buffalo, NY can help you navigate the complex legal process of filing for bankruptcy.

Filing for bankruptcy can be a complicated and overwhelming process. There are many forms to fill out, deadlines to meet, and legal requirements that must be fulfilled. That's why hiring a bankruptcy attorney in Buffalo, NY is essential. A knowledgeable attorney can guide you through the entire process and ensure that all necessary paperwork is completed accurately and on time.

Bankruptcy attorneys have years of experience working with clients who are facing financial difficulties. They understand the nuances of bankruptcy law and can provide valuable advice on which type of bankruptcy to file for. Whether it's Chapter 7 or Chapter 13, your attorney will work with you to determine the best course of action based on your individual circumstances.

At the Law Office of Stephen K. Underwood, an experienced bankruptcy attorney, has helped countless clients successfully navigate the complex world of bankruptcy law. I know how stressful this time can be and will work tirelessly to ensure that your case is handled with care and professionalism.

Bankruptcy attorneys have the knowledge and experience to guide you through the filing process, ensuring that all necessary paperwork is completed accurately and on time.

One of the most challenging aspects of filing for bankruptcy is completing all necessary paperwork correctly. That's why having an experienced attorney by your side is so important.

Your attorney will review all documentation thoroughly to make sure everything is accurate before submitting it to the court. They'll also make sure that all required documents are filed within strict deadlines set by the court system.

Stephen K. Underwood, Esq., has extensive experience handling every aspect of the filing process for both Chapter 7 and Chapter 13 bankruptcies. He work closely with you throughout every step of the process to ensure that your case is handled efficiently and effectively.

A bankruptcy lawyer can also provide valuable advice on which type of bankruptcy to file for, whether it be Chapter 7 or Chapter 13.

Deciding which type of bankruptcy to file for can be a difficult decision. Each type has its own unique set of requirements, benefits, and drawbacks. That's why it's crucial to have an experienced attorney who can help you make an informed decision.

Chapter 7 bankruptcy is often referred to as "liquidation" bankruptcy because it involves selling off assets to pay off creditors. Chapter 13 bankruptcy, on the other hand, is a reorganization plan that allows you to keep your assets while paying back creditors over time.

The Law Office of Stephen K. Underwood is a reputable firm in Buffalo, NY with experienced bankruptcy attorneys who can assist you with your case.

NY, experience matters. At the Law Office of Stephen K. Underwood, we've been helping clients navigate the complex world of bankruptcy law for over 25 years. Our team has extensive knowledge and experience handling both Chapter 7 and Chapter 13 cases.

Understanding how stressful this time can be and are committed to providing compassionate guidance every step of the way. I will work tirelessly on your behalf to ensure that your case is handled with care and professionalism from start to finish.

Working with an attorney can give you peace of mind and help ensure that your bankruptcy filing goes as smoothly as possible.

Filing for bankruptcy is never easy, but working with an experienced attorney can make all the difference. Your attorney will handle all aspects of your case, from reviewing paperwork to representing you in court. They'll also be there to answer any questions you may have and provide valuable guidance throughout the process.

At the Law Office of Stephen K. Underwood, I understand how overwhelming this time can be. That's why I am committed to providing personalized attention and compassionate guidance every step of the way. I will work tirelessly on your behalf to ensure that your bankruptcy filing goes as smoothly as possible, giving you peace of mind during a difficult time.

Bankruptcy Can Help Discharge Medical Bills, Which Can Be a Significant Expense for Many People

Medical bills are one of the leading causes of bankruptcy in the United States. If you're struggling with medical debt, filing for bankruptcy may be an option worth considering. Chapter 7 bankruptcy discharges most unsecured debts, including medical bills.

If you file for Chapter 13 bankruptcy, medical bills will be included in your repayment plan and paid off over time. Keep in mind that if you have significant medical debt, it's essential to discuss your options with an experienced attorney who can help you determine the best course of action.

Hiring a Bankruptcy Attorney Can Help Ensure That All Necessary Paperwork Is Filed Correctly and on Time, Potentially Saving Clients Money in the Long Run

Filing for bankruptcy involves extensive paperwork and deadlines that must be met. An experienced bankruptcy attorney can help ensure that all necessary documents are filed correctly and on time. Failing to submit paperwork accurately or missing deadlines could result in your case being dismissed or delayed.

Hiring an attorney may seem like an added expense at first glance but doing so could save you money in the long run by preventing costly mistakes and ensuring that everything is handled correctly from start to finish.

Understanding Fees and Costs for a Buffalo Bankruptcy Attorney

Bankruptcy Attorneys in Buffalo, NY Charge Fees for Their Services

If you're considering filing for bankruptcy, it's important to understand that hiring an attorney will come with fees. The amount you'll pay can vary depending on several factors, including the complexity of your case and the experience level of the attorney.

The Fees Vary Depending on the Complexity of the Case and the Attorney's Experience

The cost of hiring a bankruptcy attorney can range from fifteen hundred dollars to several thousand dollars. Factors that influence this include:

• The type of bankruptcy you are filing

• The complexity of your financial situation

• Whether or not you own a business

• The number of creditors you have.</p

• How much property you own.

It is essential to discuss your financial situation openly with your lawyer so they can provide an accurate estimate of their fees.

It Is Important to Ask About Any Additional Costs Such as Court Filing Fees

In addition to legal fees, there may be additional costs associated with filing for bankruptcy. One of the most significant expenses is court filing fees, which can cost several hundred dollars. Your attorney should inform you of any additional costs upfront so you can budget accordingly.

Qualifications for Filing Chapter 13 Bankruptcy in Buffalo, NY

Regular Source of Income

To qualify for Chapter 13 bankruptcy in Buffalo, NY, you must have a regular source of income. This is because Chapter 13 bankruptcy involves creating a repayment plan over three to five years to pay off your debts. Without a regular source of income, it would be impossible to make the monthly payments required by the repayment plan.

A regular source of income can come from various sources such as wages from employment or self-employment, rental income, pension or retirement benefits, social security benefits, and other forms of steady income. It's essential to provide proof of your regular income when filing for Chapter 13 bankruptcy.

Debt Limits

Another qualification for filing Chapter 13 bankruptcy in Buffalo, NY is that your unsecured debts must not exceed $419,275 and secured debts must not exceed $1,257,850. Unsecured debt includes credit card debt and medical bills while secured debt includes mortgages and car loans.

If your unsecured debts are more than $419,275 or secured debts are more than $1,257,850 then you may not qualify for Chapter 13 bankruptcy but may need to consider other options like Chapter 7 bankruptcy or debt consolidation.

Credit Counseling

Before filing for Chapter 13 bankruptcy in Buffalo NY., you must complete credit counseling from an approved agency within 180 days before filing. Credit counseling helps you understand the causes of financial problems and teaches you how to manage money effectively.

The credit counselor will also evaluate your finances and help you develop a budget plan that suits your needs. Once you complete the credit counseling course successfully and get the certificate of completion from the agency then only can file for chapter 13 Bankruptcy.

Tax Returns

Filing tax returns is another requirement that must be met before filing for chapter 13 bankruptcy in Buffalo NY. You need to have filed your tax returns for the previous four years before filing for Chapter 13 bankruptcy. If you haven't filed all your tax returns, then you may not qualify for Chapter 13 bankruptcy.

Time Limits Between Bankruptcy Filings

To file for chapter 13 bankruptcy in Buffalo NY, you cannot have filed for Chapter 13 bankruptcy within the previous two years or Chapter 7 bankruptcy within the previous four years. If you've previously filed for either of these bankruptcies within the specified time limits, then you may not be eligible to file again.

Monthly Payments

Lastly, to qualify for chapter 13 bankruptcy in Buffalo NY, you must be able to make monthly payments to the bankruptcy trustee to repay your debts under a court-approved plan. The repayment plan is based on your income and expenses and is designed to help you pay off your debts over three to five years.

The amount of money that needs to be paid each month depends on various factors such as income, expenses, and debt amount. It's essential to have a realistic budget plan that allows you to make these payments on time without defaulting on them.

Making the Right Choice for Your Financial Future in Buffalo, NY

If you are struggling with debt and considering bankruptcy in Buffalo, NY, it is important to understand your options. Chapter 7 and Chapter 13 bankruptcy are two of the most common forms of bankruptcy that individuals may file.

Frequently Asked Questions About Bankruptcy and Debt Relief in Buffalo, NY

1. What debts can be discharged in bankruptcy? Most unsecured debts such as credit card debt, medical bills, and personal loans can be discharged in bankruptcy.

2. Will I lose my home if I file for bankruptcy? It depends on the type of bankruptcy you file and whether or not you have equity in your home. It is important to consult with a bankruptcy attorney to determine the best course of action.

3. Can student loans be discharged in bankruptcy? In most cases, student loans cannot be discharged in bankruptcy unless you can prove undue hardship.

4. How long does it take to complete a Chapter 7 or Chapter 13 bankruptcy case? Chapter 7 cases typically take three to six months while Chapter 13 cases last three to five years.

5. Can I keep my car if I file for bankruptcy? It depends on the value of your car and whether or not you are current on payments. Consult with a bankruptcy attorney to determine your options.

Is bankruptcy right for me?

Bankruptcy may be a good option if you are struggling with debt that you cannot repay. However, it is important to consult with a qualified bankruptcy attorney who can help determine if it is the best course of action.

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