Best Bankruptcy & Debt Lawyers in Buffalo

About Bankruptcy & Debt Law in Buffalo, United States

Bankruptcy and debt law in Buffalo falls under federal bankruptcy law administered locally by the U.S. Bankruptcy Court for the Western District of New York and under New York state laws that affect exemptions, collections, and consumer protections. Individuals and businesses use bankruptcy to stop collections, stop foreclosures, and obtain a discharge or structured repayment plan. Common filings include Chapter 7 for liquidation, Chapter 13 for individual debt adjustment through a repayment plan, and Chapter 11 for business reorganizations. The process includes pre-filing credit counseling, a filing with the bankruptcy court, a meeting of creditors, and required financial education before a discharge is granted.

Why You May Need a Lawyer

Bankruptcy filing is governed by complex federal rules and local procedures. A lawyer can help in many common situations, including:

- You are facing foreclosure, repossession, wage garnishment, bank levies, or creditor lawsuits.

- You are unsure which bankruptcy chapter is appropriate for your circumstances.

- You have complicated assets, such as real estate, retirement accounts, or mixed business and personal finances.

- You need to determine which property is exempt under New York law and how exemptions affect your case.

- You have business debts, substantial secured debt, or potential claims of fraud or misconduct by creditors.

- You want to negotiate with creditors outside of bankruptcy or explore alternatives like debt settlement or debt management plans.

- You need help completing required credit counseling and debtor education, preparing schedules and statements, and representing you at the meeting of creditors and hearings.

Local Laws Overview

Key aspects of bankruptcy and debt law locally include the interaction of federal bankruptcy code and New York state law, and local court procedures in Buffalo:

- Court and Jurisdiction - Bankruptcy cases in Buffalo are filed in the U.S. Bankruptcy Court for the Western District of New York. The court follows federal bankruptcy law and local rules that govern filing format, deadlines, and procedures.

- Chapters Commonly Used - Chapter 7 is the typical route for individuals seeking discharge through liquidation of non-exempt assets. Chapter 13 allows individuals with regular income to enter a court-supervised repayment plan. Chapter 11 is generally used by businesses and some high-debt individuals for reorganization.

- Automatic Stay - Filing a bankruptcy petition generally triggers an automatic stay that halts most collection efforts, including lawsuits, foreclosure sales, garnishments, and repossessions - at least temporarily.

- Exemptions and Property - New York state law provides exemptions that may protect a home, vehicle, tools of the trade, public benefits, and some personal property. Exemption rules affect what a debtor may keep in a bankruptcy case. Whether to use state exemptions or federal exemptions depends on the debtor and the specifics of the case - an attorney can advise on that choice.

- Means Test and Eligibility - Individuals must pass the means test to qualify for Chapter 7 in many cases. Chapter 13 has statutory eligibility criteria and repayment plan rules that are periodically updated.

- Required Counseling - Debtors must complete pre-filing credit counseling within a set period before filing and debtor education after filing to qualify for a discharge.

- Local Practice - The Buffalo bankruptcy court has local procedures for filing, fee payments, electronic filing, trustee assignments, and local calendars for hearings and the meeting of creditors. Meeting of creditors typically occurs about 21-40 days after filing, with a Chapter 7 trustee or Chapter 13 trustee assigned to administer the case.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 is a liquidation process where a trustee may sell non-exempt assets to pay creditors and eligible debts are discharged. Chapter 13 lets individuals with regular income keep property while repaying some or all debts under a court-supervised repayment plan over three to five years. Your income, assets, and goals determine which chapter fits best.

Will filing bankruptcy stop a foreclosure in Buffalo?

Yes - filing a bankruptcy petition generally triggers an automatic stay that stops most foreclosure actions immediately. The stay provides time to negotiate, catch up on missed payments under a Chapter 13 plan, or evaluate whether to surrender the property. The stay can be lifted by a creditor in certain circumstances, so prompt legal advice is important.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy typically remains on your credit report for up to 10 years from the filing date. A Chapter 13 typically stays for up to 7 years. Credit reporting practices vary, and rebuilding credit is possible over time by managing accounts responsibly after discharge.

Can I keep my house or car if I file bankruptcy?

Possibly. Exemptions, equity in the property, the type of loan, and the chapter you file determine whether you can keep your house or car. Chapter 13 commonly allows debtors to keep property by curing arrears through a repayment plan. In Chapter 7, non-exempt equity could be at risk unless exempted or otherwise protected.

Are student loans dischargeable in bankruptcy in Buffalo?

Student loans are generally not dischargeable unless the debtor proves undue hardship under a separate adversary proceeding. Courts apply a strict standard that can be difficult to meet. An attorney can evaluate whether your student loans might be dischargeable based on your circumstances.

What debts are typically not dischargeable?

Common non-dischargeable debts include recent tax obligations, certain fines and penalties, debts incurred through fraud or false pretenses, some domestic-support obligations like child support and alimony, and most student loans without a successful undue hardship claim. Specific rules and exceptions apply.

How much does it cost to file bankruptcy in Buffalo?

There are court filing fees and attorney fees. The filing fee for consumer bankruptcy is set by the federal court and can be paid in installments in some cases or waived in limited low-income situations. Attorney fees vary by complexity, chapter, and local market. Many lawyers offer free consultations and payment plans.

Will bankruptcy affect my spouse or cosigner?

Filing bankruptcy generally affects only the filer unless debts are joint. A joint debtor on an account may still be liable for the full debt even if you receive a discharge. Cosigners will still be responsible for the debt unless the creditor agrees to a change or the case structure otherwise eliminates liability. Consult an attorney before filing to understand the effects on family members.

How do I find a bankruptcy lawyer in Buffalo?

Look for attorneys who focus on bankruptcy and consumer debt, have experience in the Western District of New York, and who can explain fees, timelines, and likely outcomes. Consider free or low-cost legal services for qualifying households. Meet with a few attorneys to compare experience, communication style, and fee arrangements.

Are there alternatives to bankruptcy I should consider?

Yes. Alternatives include negotiating directly with creditors, debt settlement, debt management plans through credit counseling agencies, loan modification for mortgages, and short-term hardship solutions. Some alternatives may reduce debt or stop collection actions without the long-term implications of bankruptcy. An attorney or accredited credit counselor can help evaluate options.

Additional Resources

Helpful local and national resources for people facing bankruptcy or debt in Buffalo include:

- U.S. Bankruptcy Court for the Western District of New York - court rules, local procedures, and filing information.

- United States Trustee Program - oversight of trustees and bankruptcy administration.

- Erie County Clerk and local court services - for state court matters related to foreclosures or judgments.

- Legal Aid organizations and pro bono programs in Buffalo - for low-income residents who need legal representation.

- Accredited credit counseling agencies - offer pre-filing credit counseling and debt management guidance required for bankruptcy filings.

- Consumer protection offices such as the New York State Attorney General and local consumer affairs groups - for complaints about debt collectors or bankruptcy-related fraud.

- Financial education resources from national organizations - for budgeting, credit repair, and post-bankruptcy planning.

Next Steps

If you are considering bankruptcy or need debt help in Buffalo, follow these steps:

- Gather financial documents - recent pay stubs, tax returns, bank statements, creditor statements, loan documents, and a list of monthly expenses.

- Complete a consultation - meet with a bankruptcy attorney or accredited credit counselor to review options, eligibility, likely outcomes, fees, and timelines.

- Complete required counseling - if you decide to file bankruptcy, complete the mandatory pre-filing credit counseling session within the required timeframe.

- Prepare to file - your attorney will help prepare schedules, statements, and the petition, and will explain the automatic stay, trustee assignment, and what to expect at the meeting of creditors.

- Follow court requirements - attend the meeting of creditors, complete required debtor education, and comply with any plan payments or trustee requests.

Getting prompt advice is important when creditors are active or a foreclosure or garnishment is pending. A local attorney or accredited counselor can help you understand the best path for your situation and walk you through the process step-by-step.