What Debts can I Get Rid of in Bankruptcy in New York City?

Simply put all of your debts can be eliminated with bankruptcy in New York City including tax liabilities, alimony or child support, and even rental arrears. Most people know that bankruptcy can address unsecured debts like credit cards and medical bills, but not everyone realizes that bankruptcy can eliminate many secured debts and priority debts as well. To get the most out of the US Bankruptcy Code you need to work with an attorney willing to explore all of your bankruptcy options including Chapter 7, Chapter 13 or possibly elements of both. Not all bankruptcies or bankruptcy attorneys are created equal. If the attorney you are considering only works with Chapter 7 cases speak to another firm about Chapter 13 options. Chapter 13 cases are not always as profitable for a law firm, but Chapter 13 can offer you considerably more debt relief and asset protection depending on your overall financial situation.

If you think your debts can’t be helped through bankruptcy you should probably take a closer look. The public perception and stigma around bankruptcy keeps many people from seeking the help they are entitled to. While it’s true that some types of debts are treated differently than others, bankruptcy protection can help with almost any financial crisis. Complex problems require complex solutions. A simple Chapter 7 case may not be enough protection for many debtors in New York City. Chapter 7 alone won’t allow you to get rid of all debt types including most taxes and rental arrears. If you are a homeowner facing foreclosure you could potentially lose your home, and if you are in a rent stabilized apartment you could lose your lease even if you are current on rent with a simple Chapter 7 case.

With a Chapter 13 filing on the other hand you will have the chance to catch up on priority debts like taxes and domestic support obligations over a period of 3-5 years interest free. As in a Chapter 7 you will get the benefit of the automatic stay, and will also have your unsecured debts eliminated if you file a Chapter 13. A skilled attorney might also convert your case from a Chapter 7 to a Chapter 13 midstream, or even coordinate the closely timed filing of both a Chapter 7 and a Chapter 13 (aka Chapter 20) to give you the maximum debt relief.

If you need quality and affordable bankruptcy help in New York City, but can’t find an attorney willing to investigate all your bankruptcy options give us call for a free consultation. We are a boutique firm with a one on one approach. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16. If you live in New York City contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.