Best Bankruptcy Lawyers in Brooklyn

About Bankruptcy Law in Brooklyn, United States

Bankruptcy is a federal legal process that helps individuals and businesses resolve debts they cannot repay. If you are in Brooklyn, bankruptcy cases are filed in federal bankruptcy court and are governed primarily by the United States Bankruptcy Code. The goal of bankruptcy is to give debtors a chance to reorganize or discharge qualifying debts while providing an orderly process for creditors to receive repayment when possible. Common types of consumer filings are Chapter 7 and Chapter 13. Chapter 7 can result in discharge of many unsecured debts after qualifying under a means test, while Chapter 13 creates a court-approved repayment plan to pay some or all debts over a period of three to five years.

Why You May Need a Lawyer

Bankruptcy involves complex federal rules, local court procedures, and important choices that affect your finances for years. A lawyer helps you decide whether bankruptcy is the right option for your situation, which chapter to file, and which property exemptions to claim. Lawyers prepare the petition and schedules, represent you at the meeting of creditors, negotiate with creditors, and handle motions like reaffirmation agreements or relief from the automatic stay. You may especially need a lawyer if you face foreclosure, wage garnishment, creditor lawsuits, tax debt, a recent significant transfer of assets, or if you own a business or valuable property. Even in straightforward cases, an attorney reduces the risk of mistakes that can cause your case to be dismissed or your discharge denied.

Local Laws Overview

Bankruptcy is federal, but several local and state-level rules affect filings in Brooklyn. Brooklyn cases fall under the Eastern District of New York bankruptcy court. The court uses local bankruptcy rules and procedures that supplement federal rules, so familiarity with local practice is important for filing papers correctly and meeting deadlines. The U.S. Trustee oversees chapter administration, appoints trustees in Chapter 7, and supervises Chapter 13 trustees who administer repayment plans.

New York state law interacts with bankruptcy through exemption choices, property laws, and foreclosure procedures. Exemptions determine what property you can keep. Depending on legal eligibility, debtors may be able to use either federal exemptions or New York state exemptions - the appropriate set can affect homestead, vehicle, tools of the trade, and other protections. Mortgage foreclosure in New York is generally a judicial process, and local foreclosure timelines and homeowner assistance programs can affect options available before or during bankruptcy.

Other local considerations include mandatory credit counseling and debtor education courses - you must complete an approved credit counseling session before filing and a debtor education course after filing to receive a discharge. Filing fees, trustee fees, and local notice practices are set by federal rules but can change, so confirm current amounts and procedures with the court or a lawyer. Finally, consumer protections in New York City and state consumer protection laws may apply alongside bankruptcy, so coordinate bankruptcy planning with other local relief programs when possible.

Frequently Asked Questions

What types of bankruptcy are most common for individuals in Brooklyn?

For individuals, the most common chapters are Chapter 7 and Chapter 13. Chapter 7 liquidates nonexempt assets to pay creditors and typically results in discharge of qualifying unsecured debts. Chapter 13 requires a repayment plan over three to five years and is often used by debtors who want to keep a home, catch up on mortgage arrears, or have regular income to support payments.

How do I know if I qualify for Chapter 7?

Qualification for Chapter 7 requires passing the means test, which compares your income to median income for a household of your size in your state and then evaluates allowable expenses. If your income is too high, you may be required to file Chapter 13 instead. An attorney or bankruptcy counselor can help you run the means test and assess your options.

Will I lose my home if I file bankruptcy in Brooklyn?

Not necessarily. Exemptions can protect some or all of your equity in a home. Chapter 13 is often used to cure mortgage arrears over time and stop foreclosure. In Chapter 7, if you have little or no nonexempt equity, you may be able to keep the home. Local foreclosure timing and options may affect strategy, so consult an attorney promptly if you face foreclosure.

What debts can be discharged in bankruptcy?

Bankruptcy can discharge many unsecured consumer debts such as credit card debt, medical bills, and personal loans. Certain debts are generally not dischargeable, including most taxes, child support and alimony, student loans in many cases, debts from fraud or willful misconduct, and certain government fines. Some of these non-dischargeable debts may have narrow exceptions, so get case-specific advice.

How will bankruptcy affect my credit?

Filing bankruptcy will lower your credit score and remain on credit reports for up to 10 years for Chapter 7 and up to 7 years for Chapter 13. However, many people begin rebuilding credit soon after a discharge by using secured credit, paying bills on time, and managing credit responsibly. Over time, bankruptcy’s impact on borrowing ability can diminish, especially when paired with good financial habits.

Do I need credit counseling before I file?

Yes. Federal law requires debtors to complete an approved credit counseling session from an approved agency within 180 days before filing. After filing, you must complete a court-approved debtor education course to qualify for a discharge. Approved providers and course details are available through the bankruptcy court or your attorney.

Can bankruptcy stop wage garnishment or debt collection?

Yes. The automatic stay goes into effect immediately upon filing bankruptcy and generally stops most collection actions, including wage garnishment, foreclosure, repossession, and harassing collection calls. Creditors can request the court to lift the stay for specific reasons. If you are facing garnishment or repossession, filing quickly can provide immediate protection while you sort your options.

How much does it cost to file bankruptcy in Brooklyn?

Costs include the court filing fee, credit counseling and debtor education fees, and attorney fees. Court filing fees and trustee or administrative fees are set by federal law and can change. Attorney fees vary based on case complexity, type of bankruptcy, and attorney experience. Many attorneys offer free or low-cost initial consultations to discuss fees and payment plans.

How long does a bankruptcy case take?

A typical Chapter 7 case is often completed in about four to six months from filing to discharge, assuming no complications. Chapter 13 plans usually last three to five years, depending on the plan length. Complex cases, asset sales, adversary proceedings, or litigation can extend these timelines.

How do I find a bankruptcy lawyer in Brooklyn?

Look for attorneys with bankruptcy experience who practice in the Eastern District of New York. Ask about their experience with Chapter 7 and Chapter 13 cases, local court practice, fee structures, and client references. Nonprofit legal aid organizations, local bar associations, and court-approved lists can help identify attorneys who handle consumer bankruptcy matters. An initial consultation will help you learn whether the attorney is a good fit for your case.

Additional Resources

U.S. Bankruptcy Court - Eastern District of New York - local court that handles filings and publishes local rules and forms. U.S. Trustee Program - oversees administration of bankruptcy cases and maintains lists of approved credit counseling and debtor education providers. Chapter 7 and Chapter 13 trustees - appointed officials who administer cases and repayment plans.

New York State Unified Court System - provides information on state court procedures that intersect with bankruptcy, such as foreclosure proceedings. Legal Aid Society and local nonprofit legal services - provide low-cost or free help for eligible consumers. Brooklyn Bar Association - can provide lawyer referral services. Approved credit counseling agencies and nonprofit housing counselors - can advise on alternatives to bankruptcy and complete required pre-filing counseling. New York State Department of Financial Services and NYC consumer protection agencies - resources for consumer complaints and guidance on mortgages and lending.

Next Steps

Collect financial documents before meeting with an attorney - recent pay stubs, tax returns, bank statements, a list of debts and creditors, mortgage and vehicle loan documents, recent collection letters, and a list of assets and monthly expenses. Schedule a consultation with an experienced bankruptcy lawyer to discuss options, costs, and timing. If you face immediate threats like wage garnishment, foreclosure, or repossession, tell the lawyer right away - emergency relief may be possible.

Complete the required credit counseling session within 180 days before filing and select an approved provider for the post-filing debtor education course. Ask potential attorneys about their fee structure, what is included in their services, and how they will communicate with you during the case. Keep accurate records and follow your attorney’s instructions about the documents the court requires.

This guide provides general information and is not a substitute for legal advice. Laws and procedures change, and individual circumstances vary. For tailored guidance about bankruptcy in Brooklyn, consult a qualified bankruptcy attorney who practices in the Eastern District of New York.