Top Chapter 7 Bankruptcy Lawyer New York
If you’re considering bankruptcy as an option, know that you’re not alone. The Law Firm of Joseph Lassen, a top-rated Chapter 7 bankruptcy firm in NYC, has over 20 years of experience helping individuals and businesses navigate through every bankruptcy process — we can help you, too!
Contact our Chapter 7 bankruptcy lawyer today to learn more about how he may be able to help you file for Chapter 7 bankruptcy in New York.
Things To Know About Chapter 7 Bankruptcy NYC
Bankruptcy offers individuals a second chance. Filing for chapter 7 bankruptcy in New York can potentially absolve all your pre-existing debt and provides you with an opportunity to restart. This can be beneficial for those who are overwhelmed by their current debt situation, as it gets rid of the weight holding them down and allows for a fresh start.
What Is Chapter 7 Bankruptcy?
If you file for Chapter 7 bankruptcy, also known as “liquidation” or “straight bankruptcy,” most of your assets will go towards repaying your creditors. This option is often best for those who have few assets and primarily owe money from unsecured debt sources like credit cards or medical bills. However, some of your possessions may be exempt from being liquidated.
How Do You Know You Qualify For Chapter 7 Bankruptcy?
In order to qualify for Chapter 7 bankruptcy, you must pass the means test. While the means test is one aspect to consider when qualifying for Chapter 7 Bankruptcy, other important factors include the amount of debt you have and if you own expensive property.
Income Below The Median Levels
To qualify for Chapter 7 bankruptcy, your income must fall below a certain threshold. This number is not set in stone and depends on multiple factors, such as the cost of living in your area and regular deductions from your paychecks. Every person’s circumstances are different, so depending on your situation, a Chapter 7 bankruptcy attorney may potentially help if you are:
- A single parent with one child who does not have any form of child support and lives in the Bronx earning $58,000 or less per year.
- A married couple in New Jersey with two young children, one of whom earns $60,000 or less annually while the other earns $45,000 or below.
- A person who lives alone in Brooklyn with no kids and earns no more than $45,000 a year.
While the above are just examples, they help to paint a picture of the sort of person who may qualify for Chapter 7 bankruptcy under the means test.
The median income figures provided by the Census Bureau are used to determine if someone can file for Chapter 7 bankruptcy. However, these are not black-and-white cutoffs — if you make more money than the median income, you might still be able to qualify depending on other factors.
If your income is too high to permit a Chapter 7 filing, then you may instead qualify for Chapter 13 bankruptcy. Speaking with a New York Bankruptcy lawyer can really help to clear up any confusion and help you understand what’s best for your individual case.
Substantial Debt
Chapter 7 bankruptcy is an option for people with debt ranging from $4,000 to over $100,000. Most cases are between $20,000 and $60,000.
Different people have varying opinions on what is “substantial” debt. For example, Someone may believe that $6,000 is an overwhelming amount of debt for someone earning $26,000 annually and with dependents, while another person earning the same income without dependents may feel the same way. The key factor here is your ability to repay your debts.
If you are searching for “Chapter 7 bankruptcy lawyers near me” because you are struggling to make minimum payments on your debts, and have been served with a lawsuit or collection notices, then you likely have significant debt. In these cases, a Chapter 7 bankruptcy attorney may be able to help you get out from under the weight of your debt and start fresh.
No Expensive Property
Although some people may think otherwise, Chapter 7 bankruptcy does not have to result in the loss of all property or possessions. Bankruptcy law typically protects an individual’s car, home, bank account, and other assets up to a certain value. More often than not, consumers are allowed to keep these things. The amount of protection varies by state, though. If your assets surpass the allowable value, then the Bankruptcy Court could sell them as payment to creditors.
Depending on your state of residence, you might be able to choose between State and Federal bankruptcy exemptions. These protect different types of assets in various ways, so the best way to safeguard everything is to search for an experienced “Chapter 7 bankruptcy attorney near me” and discuss your best options.
What To Expect After Filing Chapter 7 Bankruptcy
If you have filed for bankruptcy, you may be wondering how long it will take to recover your good credit. The answer is: usually about two years. Contrary to popular belief, filing for bankruptcy does not mean 7 to 10 years of bad credit. In fact, many credit card companies offer new cards to people who have recently gone through bankruptcy. Qualifying for a mortgage typically takes about three years after bankruptcy.
The following are some things you can expect after filing with your chosen Chapter 7 bankruptcy attorney:
1. A meeting with a bankruptcy trustee who will review your case and ask questions about your financial situation.
2. The appointment of a creditor’s committee, made up of your creditors, will work with the trustee to review your case and make recommendations.
3. The automatic stay, which will prohibit your creditors from contacting you or taking any action to collect your debt.
4. The requirement to provide detailed information about your assets, debts, income, and expenses.
5. The possibility of being discharged from most of your debts.
6. The possibility of being required to pay back some of your debts through a repayment plan or by selling off some of your assets.
7. The need to keep updated on court proceedings and comply with any orders from the court.
Bankruptcy Lawyer
Let A Chapter 7 Bankruptcy Attorney Guide You On Your Way To A Fresh Start
The Law Firm of Joseph Lassen understands that deciding to file for bankruptcy is not an easy choice. Filing for bankruptcy can be a difficult and stressful process, but with the help of a qualified Chapter 7 bankruptcy attorney, it doesn’t have to be.
If you are searching for an experienced “bankruptcy attorney near me”, look no further. New York Bankruptcy Lawyer, Joseph Lassen, will work tirelessly with you to ensure that your bankruptcy filing is done efficiently. And because we want you to feel confident in your decision-making, we offer a free initial consultation so financial options can be discussed without any obligation on your part.