Legal Question in Bankruptcy in New York

Re: Can I file for bankruptcy?

Bankruptcy is not a panacea/cure all. While you are clearly anxious about the fact you lost your job, there doesn't appear to be any urgency in your situation. You just lost your job 2 weeks ago. Go out and try to find a new job. You don't indicate that you have been sued, that there are any judgments against you, or that you are being hounded by collectors. You have time to try to find a new job -- creditors can't obtain judgment instantaneously.

Your student loan debt is non-dischargeable, meaning it will not be wiped out in a bankruptcy filing. So bankrutpcy doesn't help that. Based on what you described, what's left is credit card debt of under $2,000 total outstanding balance. The overall cost of bankruptcy filing itself is in that range (depending on the attorney/firm).

The bankruptcy filing will also remain on your credit report for 10 years and increase your costs of obtaining credit and could affect your future employability in certain industries or high-level security jobs. As you are only 20 years old and have your future ahead of you that is an important consideration in your situation.

If you file bankruptcy now you will be ineligible to get a discharge in any future chapter 7 bankruptcy case within 8 years, or in a chapter 13 case within 4 years. This means you wont be able to file bankruptcy when you might really need it.

If you are in good health and employable you should try to find a new job and make arrangements to pay off the relatively small amount of credit card debt you have. Student loan grantors are flexible and offer deferments and restructuring. Call the office of your student loan lender that handles your student loan for the necessary forms.

You should probably also visit with a non-profit consumer credit counseling agency for further information regarding your non-bankruptcy alternatives and budgeting.

Check the FAQs on our website (starrandstarr.com) for further info on consumer bankrutpcy.

Best regards,