If you are considering filing bankruptcy in New York under chapter 7 or 13, the first thing that you need to do is determine your eligibility. Remember, bankruptcy enables debtors to protect their property as well as save lots of money on existing debts. But when you are out to file for bankruptcy in New York, it could be important for you to have proper knowledge on the eligibility requirements for filing a chapter 7 or 13 bankruptcy.

If you are considering How to file bankruptcy in New  York under chapter 7 or 13, the first thing that you need to do is determine your eligibility. Remember, bankruptcy enables debtors to protect their property as well as save lots of money on existing debts. And in the state of New York, unemployment rates are much lower in comparison to the national figures but still home foreclosures pose a major problem. But when you are out to file for bankruptcy in New York, it could be important for you to have proper knowledge on the eligibility requirements for filing a chapter 7 or 13 bankruptcy. Here is some crucial information pertaining to the same which could guide you, if you feel, “Should I file for bankruptcy?” in your endeavor to file for New York bankruptcy with a much greater degree of success.

Under the rules and regulations that apply to New York bankruptcy,

• You can get a discharge for $20,000 worth medical bills or all your credit cards under chapter 7.
• You can secure legal protection for your home and owned car under chapter 13.

When should you file a bankruptcy in New York?

As per amendments in the bankruptcy code in 2005, to be eligible for a chapter 7, debtors are required to pass the “Means Test”. But if you have a higher monthly or annual income, it may not be possible for you to qualify for a chapter 7 in New York. Alternatively, if you owe huge amount of debts, you cannot for a chapter 13. You can get more valuable information from a local competent New York bankruptcy attorney.

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Existing levels of median incomes for New York residents

• $46,523 for a single individual
• $57,006 for a married couple
• $67,991 for a 3 member family
• $83,036 for a 4 member family
• In case the number of family members is more, you could save more money

A free evaluation with a professionally qualified as well as experienced New York bankruptcy lawyer who is well versed with the state bankruptcy laws and filing procedures can tell you more about other state bankruptcy exemptions.

Typically, in a chapter 13 bankruptcy, total unsecured debts such as medical expenses or credit card bills cannot exceed $336,900 and total secured debts like home and vehicle cannot exceed $1,010,650. Furthermore, while everybody is eligible for a chapter 13, you can qualify for a chapter 7 even if you were ineligible earlier, provided your financial situation worsens within the next six months. This is because the Means Test is not based on the monthly salary of the debtor, but takes into consideration how much the debtor has earned during the past six months.

To get more useful and relevant information on the New York bankruptcy exemptions, it is hereby recommended to utilize the professional services offered by reputed online service providers like Bankruptcy Only.