Legal Question in Bankruptcy in New York

Re: involuntary bankruptcy

Involuntary Bankruptcy is seldom used as a collection tool. It can be done, However, you should exhaust other avenues. - such as executing against the property or other assets of the individual etc.

An involuntary bankruptcy would cost approximately $3500.

The $50,000 exemption only applies to an individual(s) who live and own the property - it is called the homestead exemption.

Please give me a call so that we can discuss this matter.

Re: involuntary bankruptcy

An involuntary bankruptcy requires 3 or more petitioning creditors that don't have contingent claims, or claims that are subject to dispute as to liability or amount. So one creditor alone holding a judgment can't file an involuntary bankruptcy against a creditor. It is usually a good idea to have more than 3 petitioning creditors so that if the validity of any creditor's claim is challenged, such as that the claim is subject to bona fide dispute, there are still additional petitioning creditors with valid claims.

Typically prior to pursuing an involuntary bankruptcy on behalf of client we would try to vigorously enforce the judgment through execution and levy.

A petitioning creditor may be held liable for costs and attorneys fees and damages if an involuntary bankruptcy petition is dismissed, so it only makes sense to file an involuntary petition if it is likely to be successful (and not for the purpose of trying to obtain leverage in collections).

My law firm usually handles judgment enforcement matters on a contingency fee basis.

Please feel free to visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com for further information.

Please feel free to contact me at 8888678165 for a no-obligation initial consultation.

Best regards,