New Chapter 7 rules will prevent some Bronx residents from filing
Bronx residents will start seeing some changes when it comes to filing for Chapter 7 bankruptcy.
On October 17, the government will tighten many of the regulations involving the most common form of bankruptcy. When filing Chapter 7 individuals are given a fresh start. By filing for this type of bankruptcy, debtors turn over their taxable property to end up debt-free. Residents earning more than the New York State median income, which is an estimated $43,000 a year, will no longer be eligible to file if they can repay at least $6,000 in debt over five years. Residents who do not meet the new requirements instead can file for Chapter 13 bankruptcy. Chapter 13 is for individuals who want to pay off their debts over a period of three to five years and have some non-exempt property they wish to keep.
Almost 18,000 Bronx and city residents filed for bankruptcy during the past year.