Do I need to take a credit counseling course before filing?

Yes. You must complete a credit counseling course from an approved provider within 180 days before filing. The course costs $15-25 and can be completed online in about an hour. The certificate must be filed with your petition. A second financial management course is required after filing but before discharge.

What should I stop doing before filing bankruptcy?

Before filing, avoid: running up new credit card debt, transferring property to friends or family, paying back family loans (preferential transfers), taking cash advances, selling assets below fair market value, or making any unusual financial moves. These can create problems in your case.

Bankruptcy Filing Checklist for New York

Q: How long does it take to prepare for filing?

Typically 1-4 weeks to gather all documents and complete credit counseling. If you are facing an emergency (imminent garnishment, repossession, or foreclosure), an attorney can prepare a bare-bones petition in a few days and file the remaining documents within 14 days.

You need: 2 years of federal and state tax returns, 6 months of pay stubs or proof of income, 6 months of bank statements, a list of all debts with account numbers and balances, a list of all assets with estimated values, vehicle titles and registrations, mortgage statements, and your credit counseling certificate.

Required Documents

Income Documentation

Pay stubs - last 6 months (all jobs)
Federal tax returns - last 2 years (with all schedules)
New York State tax returns - last 2 years
NYC tax returns - last 2 years (if applicable)
Social Security or pension statements - if receiving benefits
Self-employment records - profit/loss statements, 1099s
Other income documentation - alimony, rental income, side jobs

Bank and Financial Accounts

Bank statements - last 6 months (all accounts, including closed ones)
Investment account statements - stocks, bonds, mutual funds
Retirement account statements - 401(k), IRA, pension (most recent)
Life insurance policies - with cash value information

Debt Documentation

Credit report - pull free copies from all 3 bureaus (AnnualCreditReport.com)
List of all creditors - with account numbers, balances, and addresses
Collection letters and notices
Lawsuit papers - any pending or recent lawsuits
Judgment records - any money judgments against you
Garnishment orders - current or recent

Property and Asset Documentation

Mortgage statements - current balance, monthly payment
Property deed or co-op proprietary lease
Property tax assessment - current market value
Vehicle titles and registration
Vehicle loan/lease agreements
Estimated values of vehicles (use KBB or NADA)
Valuable personal property - jewelry, electronics, collections

Required Steps Before Filing

Complete credit counseling course - Must be from a DOJ-approved provider. Costs $15-25. Can be done online in about 1 hour. Must be completed within 180 days before filing. Keep the certificate.
Choose state or federal exemptions - New York allows you to pick one system. State exemptions are better for homeowners (homestead $179,975-$215,550). Federal may be better for renters (larger wildcard).
Determine which chapter to file - Chapter 7 (debt elimination, 3-4 months) or Chapter 13 (repayment plan, 3-5 years). The means test determines Chapter 7 eligibility.
Pull your credit reports - Verify all debts are accounted for. Dispute errors. Free at AnnualCreditReport.com.
Stop certain activities - No new credit card charges, no property transfers, no repaying family loans, no cash advances.

After Filing: Remaining Steps

Attend the 341 meeting - Usually 21-40 days after filing. Bring photo ID and SSN proof.
Complete debtor education course - Second required course ($10-25). Must be completed before discharge. File the certificate with the court.
Provide tax return to trustee - The trustee may request your most recent tax return (must be provided within 7 days of request).
Respond to trustee requests - Provide any additional documents the trustee requests promptly.
Make plan payments (Chapter 13 only) - First payment due within 30 days of filing.

Things to Avoid Before Filing

Do not run up credit card debt. Purchases over $800 for luxury goods within 90 days may be challenged as non-dischargeable.
Do not take cash advances. Cash advances over $1,100 within 70 days are presumptively non-dischargeable.
Do not transfer property. Moving assets to friends, family, or trusts can be reversed by the trustee and may constitute fraud.
Do not repay family loans. Paying back a relative within a year before filing is a preferential transfer. The trustee can recover the money from your relative.
Do not empty retirement accounts. Retirement funds are fully exempt in bankruptcy - using them to pay debts first is unnecessary.
Do not hide assets. Concealing assets is a federal crime that can result in denial of discharge and criminal prosecution.

Free Legal Help in New York

If you cannot afford an attorney, these organizations provide free bankruptcy assistance:

Legal Aid Society - Free legal services for low-income NYC residents
NYLAG (New York Legal Assistance Group) - Free bankruptcy clinics and representation
Legal Services NYC - Consumer debt and bankruptcy help in all five boroughs

Full list of New York legal aid resources.

Frequently Asked Questions

What documents do I need to file bankruptcy?

Tax returns (2 years), pay stubs (6 months), bank statements (6 months), list of all debts and assets, vehicle titles, mortgage statements, and your credit counseling certificate. Full guide.

Do I need to take a credit counseling course?

Yes, two courses are required: credit counseling before filing ($15-25, about 1 hour online) and debtor education after filing but before discharge ($10-25). Both must be from DOJ-approved providers.

How long does it take to prepare?

Usually 1-4 weeks. Emergency filings can be done in a few days if facing imminent garnishment, repossession, or foreclosure. See full timeline.

What should I stop doing before filing?

Avoid running up new debt, transferring property, repaying family loans, taking cash advances, or selling assets below market value. These can create problems in your case.