In New York, Chapter 13 bankruptcy can be filed for after you attend a credit counseling course. This is required before bankruptcy can be applied for. After you go through that, you must pay $274 and give the bankruptcy court information like your debts, expenses, creditor holdings of unsecured and secured debt and your income.
When the court has all of this information, a trustee is able to review it. The trustee may get into contact with you to ask for more information. He will also communicate with creditors and have a meeting with those creditors. Through meeting with creditors and working with a trustee, you will have an idea of a repayment plan that will be acceptable. Once you have one ready, you must submit it to the court. If the bankruptcy court approved your plan, then the Chapter 13 bankruptcy is completed.
Chapter 13 requires you to pay all of your secured debt and priority debts in full. If you have other kinds of unsecured debt, you will have to repay a portion of that debt to creditors. An example of unsecured debt would be your credit card; secured debt is something like a student loan, and priority debt could be child support or tax debt.
Student debt is nearly never able to be discharged, but you may be able to get it discharged if you’re facing undue hardship. You will have to file a different action in bankruptcy court called a Complaint to Determine Dischargeability of Debt, and the court will then look over your request to determine if the debt can be removed.by