For an individual, there are two types of bankruptcy. Chapter 7 is typically used to eliminate credit card debt and other unsecured debt, as well as income taxes older than 3 years.
But not everyone is eligible for chapter 7. For example if you filed a chapter 7 case within the last 8 years, can cannot file again until 8 years passes.
If you make too much money, your are not eligible for chapter 7. Counting your income and your spouse’s (if living together) (but not counting Social Security) the New York Income ceiling in 2025 is roughly $68,000 for a one-member household; $89,000 for a household of two; $108,000 for a household of three; $134,000 for a household of four and $145,000 for a household of five.
You are not subject to these income ceilings if the majority of your debt is business-related.
If you are not eligible for a chapter 7 bankruptcy, you could consider a 5-year interest-free payment plan under Chapter 13.
Some of the things we can do in chapter 13 in 60 monthly installments are:
- Curing mortgage arrears without interest
- paying 100% of your credit card debt without interest
- catching up on back water bills and real estate tax
- in some circumstances paying less than 100% of your credit cards in full settlement
- treating a home equity loan or 2nd mortgage like a credit card debt and discharging it in full in with a partial payment for 60 months
- Discharging certain debts which are not dischargeable in chapter 7, provided that you make partial payments for five years:
- Equitable Distribution obligations from a Divorce
- Securities Law violations (E.g. from a FINRA Arbitration)
- certain old tax obligation
- Canceling old judgment liens
Chapter 13 is unique and most bankruptcy lawyers are not experts in this type of bankruptcy reorganization. At Corash & Hollender we have been using Chapter 13 for 48 years to help our clients manage unanticipated financial changes. There is no charge for the initial meeting, whether by phone, in-person, or by Zoom. Let us help you develop a realistic strategy to manage your personal situation.
Learn more about bankruptcy on our website: https://www.silawfirm.com/bankruptcy/bankruptcy-overview/
Paul Hollender
Staten Island’s only Board-Certified Bankruptcy Lawyer
15 years listed in Super Lawyers Directory
Avvo Rating 10 out of 10
48 years specialization in Bankruptcy Law
1200 South Avenue, Suite 201, Staten Island, NY 10314
718-442-4424
[email protected]