Long Island Chapter 7 Bankruptcy Lawyers
Discharging debt for eligible Long Islanders
If you are overwhelmed by debt that you are unable to pay, filing for Chapter 7 bankruptcy is an option you may want to consider with a Chapter 7 bankruptcy lawyer in Long Island. Usually filed by people who do not have substantial assets and are not able to keep up with minimum payments on their credit cards, Chapter 7 is the easiest and the most common type of bankruptcy proceeding.
Chapter 7 is sometimes called a straight bankruptcy or liquidating bankruptcy. In this type of bankruptcy, you have to turn over some kinds of property you own to a Chapter 7 bankruptcy trustee. There are some important exemptions that you are allowed to keep, including—
- $2,500 in a bank account
- $50,000 homestead exemption (equity in your house)
- A car valued at $2,400 or more
- $5,000 in personal possessions
With Chapter 7, the trustee sells off your non-exempt assets and pays your creditors with the proceeds. In most cases, however, the trustee finds that there is not enough value in these belongings above what is owed to make it worthwhile for the court to take them and sell them for the benefit of your creditors.
If you are like most Chapter 7 debtors, you probably have little or no equity in your home or car. In these instances, if you have the income to continue to make the payments, most of the time you can keep the property you wish to keep, surrender the property you no longer wish to keep, and discharge almost all of your other debts, such as those for credit cards and medical bills. However, certain debts cannot be discharged under Chapter 7, including—
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Sorting out all of these factors and taking action to produce favorable results is not simple. You need the advice and assistance of experienced Long Island Chapter 7 bankruptcy attorneys to weigh the possibilities versus any other option and to prepare the filing effectively.
Eligibility requirements for Chapter 7 bankruptcy
Federal bankruptcy laws mandate a means test that determines whether or not you are eligible to file for Chapter 7 bankruptcy. The purpose of this requirement is to limit Chapter 7 to those people who truly cannot repay their debts.
If your income falls below the median income for families of your size in New York, based on U.S. Census Bureau statistics, you may be eligible. The means testing requires you to pay any overdue tax returns within weeks of filing bankruptcy. You must also obtain approved credit counseling before you can file bankruptcy and file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy. If your income from the last six months is greater than the median income, and you can pay at least $6,000 over five years or $100 a month toward your debt, you can't file for Chapter 7. Your only other option as an individual debtor would be to file for Chapter 13 with a local Chapter 13 bankruptcy attorney in Long Island.
All bankruptcy requirements and considerations are complex. You need a qualified Long Island bankruptcy attorney to analyze your financial situation, advise you about the best course of action, and then guide you through the Chapter 7 filing or other appropriate process.
Save your home. Change your life. Get a fresh start.
For effective, professional advice and assistance when considering filing for bankruptcy and throughout the process, you need an experienced lawyer who is knowledgeable about all of the provisions of the law and who genuinely wants to help. Request our free newsletter and/or sign up for our seminars using the message field on our contact form. Call our emergency legal hotline at 877-871-6179 or contact the Law Offices of Kyle Norton, P.C. online for a free consultation that could possibly save your home, change your life, and get you on track toward a fresh, new start in Long Island.
Your initial, in-person consultation is free.
