Select your state

Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In New York, as in all states, bankruptcy is governed primarily by federal law, specifically the U.S. Bankruptcy Code. Individuals and businesses in New York can file for bankruptcy under several chapters of the Bankruptcy Code, including Chapter 7 (liquidation), Chapter 11 (business reorganization), and Chapter 13 (individual debt adjustment). Chapter 7 allows for the sale of non-exempt assets to pay creditors, while Chapter 13 involves creating a repayment plan to pay off debts over time. Chapter 11 is typically used by businesses to reorganize and continue operations while repaying creditors. New York has its own set of exemptions that determine what property a debtor can keep in a Chapter 7 bankruptcy. These exemptions include a homestead exemption, personal property, and tools of the trade, among others. Debtors in New York can choose between using the state's exemptions or the federal bankruptcy exemptions. The process is overseen by a bankruptcy court and a court-appointed trustee. It's important for individuals and businesses considering bankruptcy to consult with an attorney to understand the specific implications and to navigate the complex legal process.

Legal Articles

State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

trustee

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Learn More

Articles

Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

Bankruptcy

Individual & Family Legal Plan

Articles

New-York State Code

New-York State Code

Articles

Bankruptcy