A Chapter 7 bankruptcy filing can provide much-needed relief to individuals struggling with overwhelming debt. The Macco & Corey P.C. is a law firm based in Long Island, New York that offers a free initial consultation to individual clients seeking legal advice on bankruptcy, debt relief, and other related matters.
With our extensive knowledge and expertise in bankruptcy law, the attorneys at Macco & Corey P.C. are dedicated to providing personalized and effective legal solutions to their clients in Nassau County and Suffolk County. Our firm understands the stress and uncertainty that can come with financial difficulties and strives to guide clients through the bankruptcy process with compassion and professionalism.
Our Long Island bankruptcy attorneys at Macco & Corey P.C. can help you file for this type of bankruptcy.
Determine Your Eligibility
Before starting the bankruptcy process, our local bankruptcy lawyers will help you determine if you are eligible for Chapter 7 bankruptcy. To qualify, you must pass a means test, which compares your income to the median income in your state. If your income is below the state median, you are eligible. If your income is above the median, our Chapter 7 bankruptcy lawyers will help you determine if you meet additional requirements.
Gather Your Financial Documents
To file for bankruptcy, you will need to provide detailed financial information to the court. Our attorneys will help you gather all relevant bankruptcy paperwork, such as pay stubs, tax returns, bank statements, and credit card statements. If you are missing any bankruptcy forms or documents, we can help you obtain them from the issuing institution.
Attend Credit Counseling
Before filing for bankruptcy, you must attend a credit counseling course with an approved agency. Our bankruptcy lawyers can refer you to an agency and guide you through the process. The agency will provide you with a certificate of completion, which you will need to include with your bankruptcy petition.
File Your Bankruptcy Petition
Once you have gathered all necessary documents and completed credit counseling, our attorneys will prepare your bankruptcy petition and file it with the bankruptcy court. The court will issue an automatic stay, which stops all collection activities against you. This means that creditors cannot contact you or pursue legal action against you while your bankruptcy case is pending.
You Can Use Exemptions to Protect Your Property
One of the primary concerns individuals have when filing for bankruptcy is losing their property. However, in Chapter 7 bankruptcy, you can use exemptions to protect certain types of property. Exemptions allow you to keep a certain amount of equity in your property, such as your home, car, and personal belongings. In many cases, individuals are able to keep all of their property by using exemptions.
It is important to note that exemptions do not apply to secured debts, such as mortgages or car loans. If a debtor wants to keep their secured property, they must continue to make their payments on those debts. However, in some cases, a debtor may be able to negotiate a reaffirmation agreement with the creditor, which allows them to keep their property in exchange for continuing to make payments on the debt.
Bankruptcy Can Eliminate Most Unsecured Debt
Chapter 7 bankruptcy is designed to eliminate most unsecured debt, such as credit card debt, medical bills, and personal loans. Unsecured debts are debts that are not backed by collateral or property, such as credit card debt, medical bills, and personal loans. This can provide significant relief to individuals who are struggling to make ends meet. By eliminating their debt, individuals may be able to regain control of their finances and start rebuilding their credit.
It is important to note not all debts can be discharged in Chapter 7 bankruptcy. Certain types of debts, such as taxes, student loans, and child support payments, are generally not dischargeable. Additionally, if an individual has secured debts, such as a mortgage or car loan, they may have to surrender the property to the creditor or continue making payments to keep the property.
Bankruptcy Can Stop Wage Garnishments
If a creditor has obtained a wage garnishment against you, filing for Chapter 7 bankruptcy can stop the garnishment immediately. The automatic stay issued by the court stops all collection activities, including wage garnishments.
The automatic stay remains in effect throughout the bankruptcy process, providing temporary relief to the debtor from the financial pressure of wage garnishments. In some cases, the debtor may be able to discharge the underlying debt that led to the wage garnishment in the first place, eliminating the need for future wage garnishments.
However, it is important to note that not all types of wage garnishments can be stopped by filing for Chapter 7 bankruptcy. For example, wage garnishments for child support, spousal support, or certain types of tax debts may not be affected by the automatic stay.
Bankruptcy Can Stop Evictions and Foreclosures
If you are facing eviction or foreclosure, filing for Chapter 7 bankruptcy can stop these actions and give you time to catch up on your payments. However, it is important to note that bankruptcy may not be the best option for individuals who are behind on their mortgage or rent payments, as it does not provide a long-term solution for these types of debts.
In the case of eviction, the automatic stay can temporarily halt the eviction process, but the landlord can still file a motion to lift the stay and proceed with the eviction if they have a valid reason, such as endangerment to other tenants or damage to the property. Similarly, in the case of a foreclosure, the automatic stay can temporarily halt the foreclosure process, but the lender can file a motion to lift the stay and proceed with the foreclosure if the debtor is not able to catch up on their payments or negotiate a repayment plan.
It’s important to consult with a local bankruptcy lawyer from Macco & Corey P.C. to determine if Chapter 7 bankruptcy is the right option for your situation and to explore other potential options for addressing your housing-related debts.
Chapter 7 Bankruptcy Can Provide a Fresh Start
Finally, one of the most significant benefits of filing for Chapter 7 bankruptcy is that it can provide a fresh start. By eliminating your debt and allowing you to keep certain types of property, Chapter 7 bankruptcy can give you a clean slate and allow you to move forward with your life. With the help of a bankruptcy attorney and careful financial planning, you can rebuild your credit and regain control of your finances.
Chapter 7 Bankruptcy: Frequently Asked Questions
What assets can I keep if I file for Chapter 7 bankruptcy?
Debtors can keep exempt assets, which vary by state. Common exemptions include a portion of the equity in your home, a vehicle up to a certain value, personal belongings, and tools of the trade. Non-exempt assets are sold by the trustee to pay creditors.
How long does the Chapter 7 bankruptcy process take?
The process typically takes about four to six months from the filing date to the discharge of debts. This period includes mandatory credit counseling, filing the petition, attending a meeting of creditors, and completing a debtor education course.
What is the role of the bankruptcy trustee?
The bankruptcy trustee is appointed to oversee your case. Their responsibilities include reviewing your petition, liquidating non-exempt assets, distributing proceeds to creditors, and ensuring compliance with bankruptcy laws.
How does Chapter 7 bankruptcy affect my credit score?
Chapter 7 bankruptcy will significantly impact your credit score and can remain on your credit report for up to 10 years. However, it also offers a fresh start and the opportunity to rebuild your credit over time.
Can I keep my home if I file for Chapter 7 bankruptcy?
It depends on the equity in your home and the exemption limits in your state. If your home equity is within the exemption limit, you may be able to keep it. If not, the trustee may sell it to pay off creditors.
What happens to my car in Chapter 7 bankruptcy?
Similar to your home, whether you can keep your car depends on its value and the applicable exemption limits. If your car’s equity is within the exemption limit, you can retain it. Otherwise, the trustee may sell it.
How often can I file for Chapter 7 bankruptcy?
You can file for Chapter 7 bankruptcy once every eight years from the date of your previous Chapter 7 filing. For Chapter 13 filings, you must wait four years after a Chapter 7 discharge to file for Chapter 13.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 involves liquidating non-exempt assets to pay off debts, while Chapter 13 involves creating a repayment plan to pay off debts over three to five years. Chapter 13 is generally for individuals with a regular income who can afford to repay some of their debts.
How will Chapter 7 bankruptcy affect my future financial opportunities?
While Chapter 7 bankruptcy will have a significant impact on your credit score, it provides a fresh start. Over time, you can rebuild your credit by managing your finances responsibly. You may face challenges obtaining credit or loans immediately after discharge, but many individuals can secure new credit within a few years.
In Conclusion
Filing for Chapter 7 bankruptcy can be a complex and challenging process. By hiring Macco & Corey P.C. for your legal services and following the other steps outlined above, you may be able to successfully file for Chapter 7 bankruptcy and obtain relief from more debt. However, filing for Chapter 7 can also have long-term consequences, such as a negative impact on credit scores and difficulty obtaining credit in the future. Therefore, it is important to carefully consider all options and consult with an experienced bankruptcy lawyer at Macco & Corey P.C. before deciding to file for Chapter 7 bankruptcy.
Clients seeking to hire the services of Macco & Corey P.C. for Chapter 7 bankruptcy filing are required to pay our attorney’s legal fees, court fees, and other costs in accordance with the firm’s financial policies. To learn more or to schedule a free initial consultation, call us at 631-549-7900 or contact us online.