Can my Parents pay for my Bankruptcy in New York City?

Can my Parents pay for my Bankruptcy in New York City?

Many young people today struggle with serious debt, especially in New York City where the cost of living is higher than almost anywhere else in the world.  It makes sense that people on the verge of bankruptcy might have trouble coming up with the money they need to hire a qualified bankruptcy attorney, and if they are considering bankruptcy they are unlikely to qualify for any type of a loan.  Most people struggling to make ends meet will need to find a creative way to pay for their bankruptcy.  Some will try to work harder, taking on second jobs or more hours, but many others already stretched to their limit need to get help from their family or friends to pay for their bankruptcy.  In fact, the majority of our clients in New York get at least some outside support to fund their bankruptcies.

So your parents, or anyone else for that matter, could pay for your bankruptcy.  They can not only cover the legal fees for your filing and your attorney, but if you file Chapter 13 they can also actually fund the Chapter 13 repayment plan itself.  If your parents sign an “affidavit of contribution” stating they will help fund your Chapter 13 plan they could potentially cover some if not all of the 3-5 year payments to the bankruptcy trustee.   This could obviously mean the difference for many people going into a bankruptcy case, but can also save the day if something happens to you midway through your 3-5 year Chapter 13 repayment plan preventing you from making your payments.  Clients will occasionally fall ill or lose their job for example while making payments in a Chapter 13 case.  Instead of having the case dismissed their parents will oftentimes step up on their behalf, helping them complete the plan and delivering the fresh start their child has been working towards.

Sometimes we need a little help in life.  If your parents are willing to help support your bankruptcy costs please contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free bankruptcy consultation today.   We know how to use both Chapter 7 and Chapter 13 to our clients’ advantage, and help people find creative ways to pay for the bankruptcy protection they need.  Our office has never had a case dismissed and maintains a 100% Chapter 7 discharge record in New York City as of 2/15/2013.  

This article is intended for educational purposes only.  By reading this article no attorney-client privilege has been created.