New York bankruptcy laws are considered to be unique and well-structured in terms of absolving dues of creditors.
A simple, effective, and easy payment plan is made by contacting the creditors as a first alternative.
This process is straightforward to follow, as it provides apt professional guidance in making your payments promptly.
The second alternative,
also called the debt consolidation loan payment method, is also resorted to making creditors’ payments suitable.
In the second type, a loan is sought for payments to creditors.
The third and final option is credit counseling,
in which your deposits will be used to make the payments to creditors and settle their dues.
Process of New York bankruptcy
- Bankruptcy act credit counseling, requiring individual debtors to undergo credit counseling within 6 months of filing
- Bankruptcy act means test, analysis of incomes and expenses to determine qualification and eligibility.
- Gathering paperwork to prioritize and itemize your various sources of current income
- Filing for bankruptcy
- Ensuring fulfillment of Chapter 13 requirements and submitting for a proposed repayment plan
- Effecting automatic stay
- Paperwork review by the trustee
- Creditors’ meeting
- Confirmation of Chapter 13 plan