Best Bankruptcy & Debt Lawyers in White Plains

About Bankruptcy & Debt Law in White Plains, United States

Bankruptcy and debt law in White Plains combines federal bankruptcy rules with New York state and local procedures. Bankruptcy itself is governed by federal law and handled in the U.S. Bankruptcy Court, but state law affects many important issues such as exemptions, foreclosure procedures, wage garnishment rules, and certain consumer protections. White Plains is in Westchester County and falls within the Southern District of New York for federal bankruptcy filings. Common consumer options include Chapter 7 - liquidation of nonexempt assets to pay creditors - and Chapter 13 - a court-approved repayment plan to keep property and pay creditors over time. Businesses may consider Chapter 11 or other restructuring mechanisms.

Why You May Need a Lawyer

Bankruptcy and debt matters raise legal, financial, and procedural issues where mistakes can be costly. People typically seek a lawyer for one or more of the following reasons:

- To understand whether bankruptcy is the right option for their situation after assessing income, assets, and debts.

- To prepare for the means test and select the right chapter of bankruptcy.

- To correctly claim exemptions and protect as much property as possible under New York law.

- To stop a foreclosure, repossession, wage garnishment, or creditor harassment by obtaining an automatic stay and filing required motions.

- To navigate the bankruptcy filing process, complete required credit counseling and debtor education, prepare schedules and statements, and represent the debtor at the 341 meeting of creditors.

- To negotiate with creditors, loan servicers, or trustees regarding reaffirmation agreements, plan confirmation, or settlements.

- To handle contested matters such as creditor objections to discharge, preferential transfers, fraudulent transfer claims, or motions to lift the stay.

- To advise on tax consequences, exemptions, and potential non-dischargeable debts such as certain taxes, student loans, or domestic support obligations.

Local Laws Overview

Key local and regional points to understand when dealing with bankruptcy and debt in White Plains include:

- Jurisdiction and Court - Bankruptcy cases for White Plains residents and many Westchester County debtors are filed in the U.S. Bankruptcy Court for the Southern District of New York, which has a White Plains division. Local filings follow federal bankruptcy rules and Southern District of New York procedures.

- State Exemptions and the 730-day Rule - While bankruptcy is federal, debtors may use either federal bankruptcy exemptions or state exemptions depending on their state of domicile for the majority of the 730 days before filing. New York residents commonly rely on New York exemption statutes to protect equity in homes, vehicles, tools of the trade, and certain personal property. Which exemptions apply can materially affect what assets are protected.

- Means Test and Median Income - Eligibility for Chapter 7 is generally subject to a means test comparing household income to state median income figures. Westchester County debtors should use the appropriate Southern District median income data when completing the means test calculation.

- Automatic Stay and Local Enforcement - Filing a bankruptcy petition generally triggers an automatic stay that halts most collection activity, including foreclosures and garnishments. Creditors in Westchester must seek court relief to proceed with collections while the stay is in effect.

- Foreclosure and Eviction Procedures - Foreclosure of real property in New York is a judicial process filed in the county Supreme Court. Foreclosure timelines, deficiency judgments, and redemption rights are governed by New York law. Eviction matters for tenants in White Plains may proceed through local housing or district courts and have separate protections, including possible defenses in bankruptcy.

- Wage Garnishment and Bank Levies - New York law provides certain protections for wages and bank account funds. Bankruptcy filings typically stop garnishments and levies, but local rules and timelines for releasing funds can vary and sometimes require a motion to the court or communication with the sheriff or bank.

- Consumer Protections and State Agencies - New York state enforces consumer protection laws and has an Office of the Attorney General that handles consumer complaints and fraud investigations. Local legal aid organizations and bar associations provide guidance and referral services for people who cannot afford private counsel.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 is a liquidation bankruptcy where a trustee may sell nonexempt assets to pay creditors and most remaining qualifying unsecured debt is discharged. Chapter 13 is a repayment plan that lasts three to five years, allows debtors to keep property while paying creditors according to a court-approved plan, and is often used to catch up on mortgages or stop foreclosure.

Will filing bankruptcy stop a foreclosure in White Plains?

Yes, filing a bankruptcy petition typically triggers an automatic stay that stops most foreclosure actions immediately. The stay gives you breathing room to consider options such as a Chapter 13 plan to catch up payments. Creditors can ask the court to lift the stay in certain circumstances - you should speak to an attorney quickly in a pending foreclosure.

Can I keep my house in New York if I file bankruptcy?

Possibly. Whether you can keep your house depends on your chapter choice, your equity and applicable exemptions, your ability to keep current mortgage payments, and whether you can catch up arrears. Chapter 13 is commonly used to cure mortgage arrears over time while keeping the home. A lawyer can evaluate which exemptions and strategies apply.

How does the means test work in New York?

The means test compares your household income to the median income for similarly sized households in the Southern District of New York. If your income is below the median, you generally qualify for Chapter 7. If it is above, you may still qualify after subtracting allowable expenses and deductions, but many debtors will need to consider Chapter 13 instead.

Are student loans dischargeable in bankruptcy?

Student loans are difficult to discharge. They are presumptively non-dischargeable unless you can demonstrate undue hardship in an adversary proceeding, a challenging and fact-specific test. Recent developments and court decisions can change nuances, so consult a lawyer if student loans are a major part of your debt.

What debts are not dischargeable in bankruptcy?

Certain debts are commonly non-dischargeable or have special rules. These include most domestic support obligations, recent tax debts in many cases, debts incurred by fraud, criminal fines, and certain government-backed student loans without a demonstrated undue hardship. Specifics can vary, so obtain legal advice about particular debts.

Do I have to go to credit counseling before filing?

Yes. Federal bankruptcy rules require debtors to complete an approved pre-filing credit counseling session from a U.S. Department of Justice-approved agency within 180 days before filing. After filing, you must complete a debtor education course before receiving a discharge. The bankruptcy court will expect certificates of completion.

What happens at the 341 meeting of creditors?

The 341 meeting, held about 20 to 40 days after filing, is an informal hearing where the trustee and any creditors may ask you questions under oath about your financial situation, assets, debts, and the documents you filed. Your lawyer should attend with you, prepare you for likely questions, and ensure required documents are provided to the trustee.

Can creditors still call or sue me after I file?

Once you file, most creditor collection actions must stop because of the automatic stay. Creditors who continue to call or sue may be violating the stay, and you can report violations to the court and seek sanctions. Some actions like criminal prosecutions or certain family law matters may proceed despite a bankruptcy filing.

How do I find an affordable bankruptcy lawyer in White Plains?

Start by contacting the Westchester County Bar Association Lawyer Referral Service or local legal aid offices such as Westchester Legal Services and Legal Services of the Hudson Valley. Many attorneys offer free initial consultations or flat-fee packages for consumer bankruptcies. Consider the lawyer's experience in consumer bankruptcy, familiarity with the Southern District of New York procedures, and client reviews.

Additional Resources

Below are local and national resources that can help you learn more and get assistance:

- U.S. Bankruptcy Court - Southern District of New York - the local bankruptcy court that handles filings and provides procedural information.

- U.S. Trustee Program - oversees administration of bankruptcy cases and publishes local trustee contacts and forms.

- New York State Unified Court System - information about state courts in New York, including foreclosure and eviction procedures.

- Westchester County Supreme Court and County Clerk - for state court filings such as foreclosures and local records.

- Westchester Legal Services and Legal Services of the Hudson Valley - nonprofit legal aid organizations that provide low-cost or free help to qualifying residents.

- Westchester County Bar Association Lawyer Referral Service - helps connect people to private attorneys for consultation.

- New York State Attorney General - Consumer Frauds and Protection Bureau - for consumer complaints and guidance.

- Approved Credit Counseling and Debtor Education Agencies - courts require pre-filing counseling and post-filing education from approved providers.

- Local law school clinics and pro bono programs - many schools and bar associations run clinics that can assist with consumer bankruptcy matters.

Next Steps

If you are considering bankruptcy or facing aggressive collections in White Plains, take the following practical steps:

- Gather documentation - recent pay stubs, tax returns, a list of creditors and balances, mortgage or lease documents, car titles, bank statements, and any notices of foreclosure, repossession, or garnishment.

- Complete a pre-filing credit counseling session from an approved agency so you are ready to comply with filing requirements if you decide to proceed.

- Schedule a consultation with a bankruptcy attorney experienced in the Southern District of New York to review options, perform the means test, and explain likely outcomes and protections under New York exemptions.

- If you are in active danger of foreclosure, repossession, or wage garnishment, contact an attorney quickly - emergency filings or motions may be needed to preserve rights.

- If you cannot afford private counsel, contact local legal aid organizations or the bar association referral service for low-cost or pro bono assistance.

- Keep communicating with lenders and servicers in writing, and keep copies of all correspondence. Do not ignore court notices or deadlines.

Bankruptcy and debt relief can be complex but often provides a clear path to stopping collection actions and rebuilding financially. Seeking prompt legal advice and using local resources will help you make informed choices for your situation in White Plains.