Chapter 7 Bankruptcy Lawyers Long Island
Long Island Chapter 7 Bankruptcy Lawyer
Chapter 7 is the most common form of bankruptcy. Chapter 7 bankruptcy, also often referred to as liquidation bankruptcy, is a type of bankruptcy that can eliminate most unsecured debts. Additionally, unlike other types of bankruptcy, Chapter 7 bankruptcy does not require a debtor to file a repayment plan. Rather, a bankruptcy trustee collects and sells the debtor’s non-exempt assets, utilizing the proceeds to pay creditors a fixed percentage in accordance with the Bankruptcy Code. Filing for Chapter 7 bankruptcy is an effective way for many individuals to deal with their current debt predicaments and to press “reset” for their financial future.
How Does Chapter 7 Bankruptcy Work?
If you have debt, there are many options available to deal with it. Chapter 7 Bankruptcy could be the legal option that could help with your financial problems. Continue reading to learn more about Chapter 7 bankruptcy, including the advantages and disadvantages, and to see whether you are eligible to file.
Filing for bankruptcy can be an intimidating and stressful process, but the experienced Long Island bankruptcy attorneys at Macco Law P.C. are dedicated to guiding you through this journey. The attorneys at Macco Law P.C. have well over 70 years of experience between them. Our partners estimate they have been involved in over 100,000 bankruptcy cases throughout New York State. If you are seriously considering filing for bankruptcy, contact us as soon as possible for a free consultation. We can help develop a strategy to help you get back on the road to financial freedom.
As soon as you file for Chapter 7 bankruptcy, the court will place a temporary stay on all attempts to collect or enforce debts. This means that creditors are now prohibited from foreclosing on your home, evicting you from an apartment, garnishing your wages, collecting payments, or turning off your utilities. Instead, the court appoints a bankruptcy trustee to determine what, if any, assets your creditors would be entitled to collect. As previously mentioned, your trustee is responsible for overseeing your Chapter 7 bankruptcy.
The chapter 7 trustee will conduct a creditor meeting at which time they will examine you, asking questions regarding your assets and liabilities. This allows the chapter 7 trustee to evaluate your assets to determine what, if any portion, is non-exempt before liquidating those non-exempt assets. The proceeds from these assets will be used to repay your creditors a fixed percentage. However, in most cases, chapter 7 debtors have assets that are fully exempt, meaning no actual liquidation occurs and creditors receive nothing. To determine whether your assets are exempt, we encourage you to contact Macco Law P.C. for a free consultation.
The Chapter 7 process typically takes three (3) months from the time of initial filing. At that time, your debts are discharged while the Trustee continues to liquidate non-exempt assets if any. Discharged debts are permanently eliminated. However, not all debts can be discharged through bankruptcy, particularly child support, older tax debts, alimony, student loans, court fees and penalties, homeowners association fees, and unsecured debts that you intentionally left off your filing. To avoid inadvertent costly accidents, it is best to consult an experienced bankruptcy lawyer. Your Long Island bankruptcy attorney at Macco Law P.C. can guide you to take the necessary precautionary measures to prevent mistakes and address any potential conflicts that may arise during your bankruptcy case.
What Is The Difference Between Exempt And Non-Exempt Assets In New York?
In a Chapter 7 bankruptcy case, a debtor must relinquish non-exempt property to the trustee, who then liquidates the property. New York state law and federal bankruptcy law determines what property is considered as exempt. Usually, married couples are allowed to exempt more property than single individuals, particularly if both spouses have an ownership interest in the exempt property.
Common examples of exempt property are:
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Equity in your primary residence up to a fixed amount of cash, or cash equivalents (stocks, bonds, or other investments)
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Equity in a vehicle
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Pensions, Annuities, 401(k), IRA, and other Retirement Accounts
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Unemployment Compensation, social security, and additional public assistance
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Reasonably necessary clothing and household goods
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Limited damages awarded for personal injury
For Chapter 7 Bankruptcy, New York state will allow you to select between the state exemption list or federal exemption list. However, you cannot pick and choose exemptions from each list; you must select the system that works better in your favor overall. Typically, homeowners will fare better under New York’s exemptions since the New York homestead exemption is notably higher than the federal exemption. However, if there is little or no equity in your home, or you do not own real property, the federal wild card exemption provides you with a better opportunity to protect other assets. It is crucial that you choose the exception law that favors your case so you don’t end up losing valuable assets. In order to determine which exception will work better for you, consult with the Chapter 7 Bankruptcy lawyers at Macco Law P.C.
Who Is Eligible For Chapter 7 Bankruptcy?
In order to qualify for Chapter 7 Bankruptcy, you must meet certain eligibility requirements.These requirements include:
Income Qualifications
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Average monthly income. The other test compares your average monthly income from the past six months to the median income for the same-sized household in your state, that’s why it is important to know the chapter 7 income limits. If your average monthly income from the previous six months is less, then you automatically qualify for a chapter 7 bankruptcy. Download here the Form-22-A-1
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Means test. The means test evaluates whether your disposable income is high enough to fund a repayment plan under chapter 13. Under the means test, the lower your monthly disposable income is, the higher the likelihood you are eligible to file for Chapter 7 bankruptcy. You can download here the form b22a
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Having not filed for Chapter 7 bankruptcy within the past eight years.
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