Will my New York City Water Bill be Discharged in Bankruptcy?
Filing for bankruptcy protection in New York will allow you to eliminate many of your unsecured debts entirely, relieving you from your high interest monthly payments and giving you a fresh start on your finances altogether. The majority of debts that can be “discharged” are unsecured and include things like credit card bills, personal loans, medical bills, and other debts that aren’t backed by some type of property. However, not all debts you might expect to be are in fact unsecured or dischargeable. For example, while your utility bill, cable bill and internet bill can be eliminated in bankruptcy, your New York City Water bill is considered a secured debt in Bankruptcy.
Secured debts are financial commitments that are supported by a lien of some type like a mortgage or auto loan agreement. If you can’t make your payments your property can be foreclosed on or repossessed. It comes as a surprise for many people to learn that New York City Water bills are considered secured debts, and that liens are automatically placed on your property as the water bills accrue. New York City Water Bills are one of the few things like Federal Student Loans or taxes that bankruptcy cannot directly eliminate. A statutory lien will remain on your property after a Chapter 7 discharge, and if you file under Chapter 13 you will need to pay the water bill back in your repayment plan at 9% interest.
Nevertheless, if you are behind on your New York City Water bill you need to let you bankruptcy attorney know right away. New York will be aggressive in pursuing these past due payments, and while bankruptcy may not directly eliminate the water bills it will put you in a much better position to address them and prevent any possible foreclosure actions against you.
If you are overwhelmed financially and struggling with your debts understand that bankruptcy relief is about the big picture, and about providing relief for your entire financial situation. So, while a New York City Water bill itself may not be completely eliminated in bankruptcy, with all of your other toxic debt eliminated it will become very easy to quickly manage the past due amounts.
Working with a qualified bankruptcy attorney is crucial if you are considering filing for Chapter 7 or Chapter 13 bankruptcy protection. If you live in New York and are looking for a proactive bankruptcy attorney with your best financial interests at heart please contact the Law offices of William Waldner online or by calling 212.244.2882. We will strategize your new financial future and rid you of your past due New York Water bills and your other unsecured debts in the process.
This article is intended for educational purposes only. By reading this article no attorney-client relationship has been created.