Do You Qualify For Chapter 7 Bankruptcy?
Filing for a chapter 7 bankruptcy with an experienced New York bankruptcy lawyer can potentially absolve all your pre-existing debt and provides you with an opportunity for a fresh start.
If you file for Chapter 7 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.
You Can Qualify For Chapter 7 Bankruptcy By Passing The Means Test
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 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 In New York
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.
A Dependable New York Bankruptcy Lawyer Will Take Care Of The Rest
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. Once you file for Chapter 7 bankruptcy, your New York bankruptcy lawyer will take care of the rest.
Your bankruptcy attorney will be responsible for any paperwork that needs to be filed with the court and make sure it is done properly. We will ensure that all deadlines are met, and answer any questions you may have about the process while keeping you updated with the latest affairs in your case.
As your New York bankruptcy lawyer, we will work with the court to liquidate your assets and distribute them among your creditors. We will also help you negotiate with your creditors if necessary.
Bankruptcy Lawyer
Let A Chapter 7 Bankruptcy Attorney Guide You On Your Way To A Fresh Start
If you’re considering bankruptcy as an option, know that you’re not alone. The Law Firm of Joseph Lassen and their premier Chapter 7 Bankruptcy Lawyer has over 20 years of experience helping individuals and businesses navigate through the Chapter 7 bankruptcy process — we can help you, too!
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.