Daniel Gershburg

I am a Manhattan Bankruptcy Attorney and am getting this question more and more from people considering filing for Bankruptcy all over New York City.  So can someone in Manhattan making more than $100,000 file for Chapter 7 Bankruptcy?  Yes.  What?  Yes.

The first Bankruptcy test you’ll go through in New York, or any state for that matter, is the Median Income test.  It is that scary test you keep hearing about.  You know, the one your friend tells you about when he/she says “No they have this new test now.  If you make over a certain amount, you can’t file.”  Like most things your friends say, they are only partially correct.   The current Median Income limit in New York for a family size of one is $$46,523.  For a family size of two (much different than a joint filing or marriage), the amount is about $57,000.

So New York Bankruptcy Attorney man, how in the world can someone filing for Bankruptcy in New York who earns over $100,000 possibly file for Bankruptcy in New York?  The short answer is that Bankruptcy laws allow you to take certain deductions when deciphering if you are qualified to file.  You can take standard IRS deductions that your trusty New York City Bankruptcy Attorney knows about.  You can deduct certain childcare expenses.  Youc an deduct garnishments dealing with taxes.  You can deduct your actual mortgage payments.  You can deduct vehicle ownership expenses.  You can deduct health care expenses.  You can deduct food expenses.  In other words, if you’re earning more than that median income test, you still absolutely have a shot for filing for Chapter 7 Bankruptcy in New York City.

Rather than explaining each and every deduction (and inadvertently putting you into a coma in the process), I would recommend you speak with a New York City bankruptcy lawyer and he/she, if they are worth their weight, will TAKE THE TIME to sit down with you and explain all of this things to you.  This is a great field where attorneys are able to help people in financially stressful situations (and emotionally, physically, etc.)  Make sure you are completely confident about your options.

The best answer I can give to the question of  ”Will me filing a Bankruptcy in Brooklyn or in Manhattan affect the way an employer looks at my application?”  In my opinion, no.  I have several reasons for this opinion.  The first, and perhaps most important one is that if your employer is not a large employer (20 employees or less lets say ), I do not think they will run background/credit checks, etc.  However, I could be wrong.  And that brings me to point #2:  If your resume shows you have great experience in the field, and you do great on your interview, your employer will likely not care that you file a Bankruptcy in New York.  Again, experience and the way you handle yourself counts for much more to an employer than does some unnamed financial troubles that you have gotten yourself into.  Personally, if I was hiring someone, and they have experiences in law offices and can multi task and deal with my personality, I couldn’t care less if they made a mistake and bought a home they couldn’t afford several years back.  I would think, especially in these times, that many other employers would feel the same way.

This is also brings me to my final reason surrounding hiring and the filing of a Bankruptcy in Brooklyn or New York:  EVERYONE IS DOING IT! Its literally become the cool thing to do.  The majority of people you encounter in the street are likely having financial issues.  Whether it be job loss, too much house, too many credit card debts, illness, etc., it’s likely that they are having serious credit issues as well.  Many many many people are filing for Bankruptcy, or at least have negative information on their credit report.  Therefore, your fear that your credit report would stand out is unfounded at best.  Our country has an unemployment rate hovering around ten percent.  Foreclosures and credit card defaults are soaring.  Do not think for one second that you are the only person in this position, and think more about sprucing up your resume and interview skills.  Believe me, if an employer sees you know how to do a good job, they will overlook any credit issues you may have had.

Oh, and my final reason for stating that an employer will not discriminate against you for your filing a Bankruptcy in New York:  Its illegal!