If you’re considering filing bankruptcy in Yonkers, NY, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Bankruptcy is a legal process that provides individuals and businesses with financial relief when they are unable to meet their debt obligations. Filing for bankruptcy in Yonkers, New York, like in the rest of the United States, is subject to specific eligibility criteria and procedures governed by federal and state laws.

1. Residency and Venue: To file for bankruptcy in Yonkers, NY, you must meet the residency and venue requirements. Generally, you need to be a resident of New York or have a significant connection to the state, such as owning property or running a business in the area. Additionally, the bankruptcy case must be filed in the appropriate bankruptcy court, which for Yonkers residents is the Southern District of New York.
2. Types of Bankruptcy: There are several types of bankruptcy available under federal law, but the most common for individuals are Chapter 7 and Chapter 13 bankruptcies. Chapter 7 involves the liquidation of non-exempt assets to repay creditors, while Chapter 13 involves a structured repayment plan over a period of three to five years. Your eligibility for each type of bankruptcy will depend on your financial situation, income, and the type of debt you have.
3. Means Test for Chapter 7: To qualify for Chapter 7 bankruptcy, you must pass the “means test.” This test compares your average monthly income to the median income in New York for a household of your size. If your income is below the median, you automatically qualify for Chapter 7. If your income is above the median, you may still be eligible based on your disposable income after allowable expenses are deducted.
4. Chapter 13 Eligibility: Chapter 13 bankruptcy is available to individuals with a steady income who can propose a repayment plan to address their debts over time. Additionally, you must be able to demonstrate that you can make regular monthly payments as outlined in your proposed plan.
5. Credit Counseling: Before filing for bankruptcy in Yonkers, NY, you must complete credit counseling from an approved agency within 180 days before filing. This requirement is intended to ensure that you have explored alternatives to bankruptcy and understand the implications of the process.
6. Bankruptcy Discharge History: If you’ve received a discharge in a prior bankruptcy case, there are limitations on when you can file for bankruptcy again. For example, if you previously received a Chapter 7 discharge, you must wait eight years from the filing date of your previous case to file another Chapter 7 case.
7. Fraudulent Activities and Asset Transfers: You must also ensure that you have not engaged in fraudulent activities or asset transfers in an attempt to hide assets from creditors or the bankruptcy court. Such actions can lead to the dismissal of your case or other legal consequences.
8. Mandatory Credit Counseling and Debtor Education: After filing for bankruptcy, you must complete a debtor education course, which provides financial management guidance. Failure to complete this course can result in the denial of your bankruptcy discharge.
9. Legal Representation: While it is not a strict eligibility requirement, it is highly advisable to seek legal representation when filing for bankruptcy in Yonkers, NY. An experienced bankruptcy attorney can help you navigate the complex legal process, ensure that you meet all eligibility criteria, and maximize the benefits of bankruptcy while minimizing potential pitfalls.

Individuals in Yonkers, NY, can qualify for bankruptcy relief by meeting certain residency and venue requirements, choosing the appropriate bankruptcy chapter based on their financial circumstances, passing the means test for Chapter 7, and adhering to the necessary credit counseling and debtor education requirements. It is crucial to consult with an attorney or financial advisor to evaluate your specific situation and determine the best course of action. Bankruptcy is a complex legal process, and professional guidance can help ensure that you make informed decisions that lead to a successful financial fresh start.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Yonkers, NY?

While it is not an absolute requirement to have a lawyer to file for bankruptcy in Yonkers, New York, it is highly advisable to seek legal representation. Filing for bankruptcy is a complex legal process with significant financial and legal implications, and having an experienced bankruptcy attorney can be invaluable. Here are several reasons why it’s wise to have a lawyer when considering bankruptcy in Yonkers:

1. Expertise and Experience: Bankruptcy laws are intricate and subject to change. An attorney specializing in bankruptcy law is well-versed in the federal and state bankruptcy regulations, local court rules, and case precedents. They have experience handling a wide range of bankruptcy cases and can provide you with tailored advice based on your unique financial situation.
2. Evaluation of Alternatives: A skilled bankruptcy attorney can help you assess whether bankruptcy is the best option for your financial difficulties. They can explore alternative debt relief options with you, such as debt consolidation, negotiation with creditors, or other non-bankruptcy alternatives. This evaluation can help you make an informed decision about whether bankruptcy is the right choice.
3. Guidance on Chapter Selection: There are different chapters of bankruptcy, such as Chapter 7 and Chapter 13, each with its own eligibility criteria, advantages, and disadvantages. An attorney can help you understand the implications of choosing one chapter over another based on your financial circumstances. They can also guide you through the means test to determine your eligibility for Chapter 7.
4. Legal Protections: Bankruptcy can provide you with legal protections against creditor actions, such as debt collection lawsuits, wage garnishments, and foreclosure. An attorney can ensure that your rights are protected and that you benefit from the automatic stay, which halts creditor collection efforts as soon as you file for bankruptcy.
5. Accurate and Complete Filing: Bankruptcy paperwork is extensive and must be filled out accurately and completely. Small mistakes or omissions can result in your case being delayed or dismissed. An attorney will help you gather the necessary documentation and ensure that all required forms are filed correctly and promptly.
6. Debt Discharge Maximization: A lawyer can help you identify and protect assets that are exempt from the bankruptcy process, allowing you to retain as much property as possible. They can also guide you through the process to ensure that you receive the maximum possible discharge of your eligible debts.
7. Negotiating with Creditors: In some cases, a bankruptcy attorney can negotiate with creditors on your behalf to reach favorable settlement agreements or repayment terms. This can be particularly beneficial if you’re pursuing Chapter 13 bankruptcy and need to propose a repayment plan.
8. Court Representation: If your bankruptcy case encounters challenges or objections from creditors, having an attorney by your side is essential. They can represent your interests in court, present arguments on your behalf, and help navigate any legal disputes that may arise during the bankruptcy process.
9. Post-Bankruptcy Guidance: After your bankruptcy case is resolved, an attorney can provide guidance on rebuilding your credit, managing your finances, and ensuring a successful financial fresh start.
10. Avoiding Costly Mistakes: Bankruptcy is a one-time opportunity for debt relief, and mistakes made during the process can have long-lasting consequences. By hiring an attorney, you can minimize the risk of errors that could jeopardize your financial future.

While it is possible to file for bankruptcy without a lawyer in Yonkers, NY, it is strongly recommended that you seek legal representation due to the complexity and significance of the process. An experienced bankruptcy attorney can provide valuable guidance, protect your rights, and help you achieve the best possible outcome for your financial situation. Bankruptcy is a legal proceeding with long-lasting implications, and the assistance of an attorney can make a substantial difference in navigating the process successfully and securing a fresh financial start.

Cost to File Chapter 7 Bankruptcy in Yonkers, NY

The cost to file Chapter 7 bankruptcy in Yonkers, New York, involves various fees and expenses, both to the bankruptcy court and to your attorney if you choose to hire one. Here’s a breakdown of the typical expenses associated with filing Chapter 7 bankruptcy:

1. Filing Fee: The primary cost associated with filing for Chapter 7 bankruptcy is the filing fee paid to the bankruptcy court. These fees may change over time, so it’s essential to check the current fee schedule on the official website of the U.S. Bankruptcy Court for the Southern District of New York or consult with your attorney for the most up-to-date information.
2. Credit Counseling and Debtor Education: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses. These courses typically cost between $30 and $70 each, although some providers may offer fee waivers or reduced rates based on your financial situation.
3. Attorney Fees: If you decide to hire an attorney to assist you with your Chapter 7 bankruptcy case, you will need to pay their fees. Attorney fees can vary widely based on factors such as the complexity of your case and your location in Yonkers. On average, attorney fees for a straightforward Chapter 7 case can range from $1,350 to $2,820 or more. It’s crucial to discuss fees and payment arrangements with your attorney before proceeding.
4. Credit Report and Miscellaneous Costs: Your attorney may require you to obtain a credit report, which can cost around $40. Additionally, there may be miscellaneous expenses, such as postage, photocopying, and notary fees, which can vary depending on your specific circumstances.
5. Trustee and Administrative Fees: In a Chapter 7 bankruptcy case, a trustee is appointed to oversee the liquidation of non-exempt assets (if applicable) and distribute the proceeds to creditors. The trustee is entitled to a fee for their services, which is typically a percentage of the assets they administer. These fees are deducted from the proceeds of asset sales and do not come directly out of your pocket.
6. Exemption Costs: If you have assets that you want to protect from liquidation, you may need to pay for appraisals or valuations to determine the value of those assets. This cost can vary depending on the complexity of the valuation process.

Ultimately, the total cost of filing Chapter 7 bankruptcy in Yonkers, NY, will depend on various factors, including whether you hire an attorney, the complexity of your case, and any additional expenses that may arise. Before proceeding with a bankruptcy filing, it’s essential to consult with an experienced bankruptcy attorney who can provide you with a clear understanding of the costs involved and help you navigate the process effectively.

Cost to File Chapter 11 Bankruptcy in Yonkers, NY

Filing for Chapter 11 bankruptcy in Yonkers, New York, is a complex and expensive process, primarily designed for businesses and individuals with substantial assets and debts. The cost of filing Chapter 11 bankruptcy can vary widely depending on the complexity of your case, the size of your business, and the legal and professional assistance you require. Here’s a breakdown of the typical expenses associated with filing Chapter 11 bankruptcy:

1. Filing Fee: The initial filing fee for Chapter 11 bankruptcy cases in the United States Bankruptcy Court for the Southern District of New York, where Yonkers is located, is approximately $1,870. However, this fee can change over time, so it’s essential to verify the current fee schedule on the court’s official website or consult with your attorney.
2. Attorney Fees: Chapter 11 bankruptcy cases are highly complex and typically require extensive legal representation. Attorney fees can vary significantly based on the size and complexity of your case, the hourly rates of your legal counsel, and the duration of the bankruptcy proceedings. Expect attorney fees to start in the tens of thousands of dollars and increase from there.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office assesses quarterly fees based on the amount of disbursements made in your case. The fees range from 0.1% to 1.0% of disbursements, depending on the total amount.
4. Court Costs and Administrative Expenses: Throughout the Chapter 11 process, there may be additional court costs, administrative expenses, and professional fees. These costs can include fees for court-appointed professionals, accountants, appraisers, and financial advisors, which can add up significantly.
5. Creditors’ Committee Expenses: In some Chapter 11 cases, a committee of unsecured creditors may be appointed to represent the interests of creditors. The expenses associated with the creditors’ committee, including legal and professional fees, may be part of the overall cost.
6. Debtor-in-Possession Financing: If your business continues to operate during Chapter 11 bankruptcy, you may require financing to fund ongoing operations. The costs associated with securing debtor-in-possession (DIP) financing can include interest, fees, and potential collateral.
7. Plan Confirmation Costs: Developing and confirming a Chapter 11 reorganization plan can involve substantial legal, accounting, and consulting fees. These costs can vary widely depending on the complexity of your plan and the negotiations involved with creditors.
8. Miscellaneous Expenses: There may be additional miscellaneous expenses, such as costs related to valuations of assets, court-ordered appraisals, mailing and postage, and other administrative costs that can add to the overall expenses of your Chapter 11 case.

Given the high costs and complexity associated with Chapter 11 bankruptcy, it’s crucial to consult with experienced bankruptcy attorneys and financial professionals who specialize in Chapter 11 cases. They can provide a detailed assessment of your situation, help you understand the potential costs, and guide you through the process to maximize the chances of a successful reorganization or liquidation plan.

Cost to File Chapter 13 Bankruptcy in Yonkers, NY

Filing for Chapter 13 bankruptcy in Yonkers, New York, involves various costs and fees, but it can provide individuals with a structured way to repay their debts over a period of three to five years. Here’s a breakdown of the typical expenses associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The primary cost associated with filing for Chapter 13 bankruptcy is the filing fee paid to the bankruptcy court. However, these fees may change over time, so it’s important to check the current fee schedule on the official website of the U.S. Bankruptcy Court for the Southern District of New York.
2. Attorney Fees: Hiring an attorney is highly recommended for Chapter 13 bankruptcy due to its complexity. Attorney fees can vary depending on the complexity of your case and the attorney’s experience. On average, attorney fees for a Chapter 13 case can range from $2,700 to $6,500 or more. The attorney will work with you to structure a payment plan for their fees, which can be included in your Chapter 13 repayment plan.
3. Credit Counseling and Debtor Education: Before and after filing for Chapter 13 bankruptcy, you must complete credit counseling and debtor education courses. These courses typically cost between $28 and $60 each. Some providers offer fee waivers or reduced rates based on your financial situation.
4. Trustee Fees: In a Chapter 13 bankruptcy case, a trustee is appointed to oversee your repayment plan and distribute payments to creditors. The trustee is entitled to a fee, which is typically a percentage of the payments they handle. These fees are built into your Chapter 13 repayment plan, and you do not pay them directly out of pocket.
5. Miscellaneous Costs: Your attorney may require you to obtain a credit report, which can cost around $35. Additionally, there may be miscellaneous expenses, such as postage, photocopying, and notary fees, which can vary depending on your specific circumstances.
6. Plan Confirmation Costs: There may be additional legal and administrative expenses associated with developing and confirming your Chapter 13 repayment plan. These costs can vary depending on the complexity of your case and the negotiations with creditors.
7. Modification or Conversion Fees: If you need to modify your Chapter 13 plan or convert your case to another chapter, there may be additional court fees and attorney fees associated with these actions.

Before proceeding with a Chapter 13 bankruptcy filing in Yonkers, NY, it’s essential to consult with an experienced bankruptcy attorney who can provide you with a clear understanding of the costs involved and help you navigate the process effectively. Chapter 13 bankruptcy can be a valuable tool for individuals seeking debt relief while retaining their assets, but it’s essential to have proper legal guidance to ensure a successful outcome.

Reliable Bankruptcy Attorneys in Yonkers, NY

Below is a list of reputable bankruptcy attorneys in Yonkers, NY. They can help you with both personal and business bankruptcy information.

Bankruptcy Attorneys in Yonkers, NY
984 N Broadway #401, Yonkers, NY 10701, United States

The Law Offices of Joseph A. Marra, PLLC
909 Midland Ave 2nd floor, Yonkers, NY 10704, United States

Sayegh & Sayegh
615 Yonkers Ave, Yonkers, NY 10704, United States

James G. Dibbini & Associates, P.C.
570 Yonkers Ave 201 203, Yonkers, NY 10704, United States

Cesar Zuniga Esq., Attorney at Law
116 Gramatan Dr, Yonkers, NY 10701, United States

Yonkers, NY Zip Codes We Proudly Serve:

10583, 10701, 10703, 10704, 10705, 10706, 10707, 10708, 10710

---