Chapter 7 Bankruptcy in New York City
Bankruptcy laws are offered by the federal government to help individuals and businesses who are no longer able to pay off their creditors. While incorrect myths abound—causing a negative stigma to be associated with bankruptcy—it is crucial to understand that many times bankruptcy can only help your financial condition. Some of the most successful people in history have utilized bankruptcy as a solution for dealing with debt.
If you are interested in filing for bankruptcy, you will first have to decide which chapter of bankruptcy is suitable for you. Bankruptcy laws provide two ways for individuals to get a fresh start: liquidating assets to pay off debts or creating a repayment plan. Chapter 7, which is also known as “straight bankruptcy,” is a liquidation proceeding; it is the most common form of bankruptcy used today. Chapter 7 is a viable option for individuals, as well as married couples who would like to file jointly.
The Chapter 7 Process
Interested in filing for Chapter 7 in NYC? You should schedule an initial consultation with our firm. During this time, Robert M. Fox will be able to evaluate your financial situation—including your debts, income, expenses, and personal property—which will allow us to determine whether or not Chapter 7 is the best course of action for you. If we determine that Chapter 7 is the right choice, we will begin to gather all relevant information and documentation so we can prepare your Bankruptcy Petition and Schedules.
Once we have finalized the preparation of your Bankruptcy Petition and Schedules and you review and sign them, we will file them with the appropriate court. A bankruptcy trustee will be appointed to your case immediately after it is filed. Your respective trustee will be responsible for the liquidation of your non-exempt property to pay off your creditors. This, however, does not mean that you will lose everything that you own. In fact, New York State Law permits bankruptcy filers to keep a limited amount of property exempt from liquidation.
The following are examples of assets which are exempt in New York State:
- $170,000+ in equity in your primary residence ($340,000+ for married couples filing jointly)
- $4,000 in-car equity ($8,000 for married couples filing jointly)
- Most household items (ex: furniture, TV, radio, appliances, etc.)
- Personal property (ex: clothing, wedding ring, and a limited amount of jewelry)
- Most public benefits (ex: Social Security, disability, veteran’s benefits, unemployment, etc.)
- Qualified retirement accounts & pensions
- Up to $14,000+ in any property if the New York State Homestead is not claimed
This list is not all-inclusive. For a complete list of exemptions please consult with our law office.
Immediately after filing, you will be granted an automatic stay under 11 U.S.C. § 362 of the Bankruptcy Code; this prohibits creditors from harassing you in an attempt to collect a debt. In addition to the peace of mind you will achieve from the automatic stay, you will also benefit from a stop to any attempt to garnish your wages and mortgage foreclosures. You will truly be given the time you need to breathe and get your finances in order.
Anywhere from 30 to 40 days after the filing of your case, you will attend a Section 341(a) Meeting of Creditors along with Robert M. Fox or one of his associates. During this meeting, you will be asked several questions pertaining to your financial condition. Roughly 60-90 days after your 341(a) meeting, you will receive a discharge of your debts, releasing you from personal liability.
Chapter 7 Business Filings
Partnerships, corporations, and other business entities can seek relief under Chapter 7. If, for example, you are a business owner, you can file for Chapter 7 either on behalf of your business or for yourself personally. There are several benefits to filing business bankruptcy under Chapter 7. The first benefit is the protection of the automatic stay. After the filing of the businesses’ petition, creditors will have to cease all litigation against the company. You can use a Chapter 7 filing to find a quick and easy way to close and liquidate your business without the hassle of handling it all yourself.
Finding a Solution with The Law Offices of Robert M. Fox
At The Law Offices of Robert M. Fox, we are committed to helping clients start a new chapter in their life. We proudly evaluate each client’s financial situation on a case-by-case basis and can help to simplify the bankruptcy process. As an experienced New York City bankruptcy attorney, Robert M. Fox can bring clarity to your situation and hope into your life. By hiring our firm, you can rest easier knowing you are not alone and that you have an advocate on your side who can help guide you to a fresh start.
Call us today for a FREE consultation!
We can help:
- STOP wage garnishments!
- STOP harassing phone calls!
- STOP letters from collectors!
- STOP foreclosure!
- STOP car repossession!
To schedule a free consultation with our firm, please contact us today.
Informally called “straight bankruptcy,” Chapter 7, a liquidation proceeding, is the most common form of Bankruptcy filed in the U.S. today. This form of bankruptcy may be right for you if you meet the above criteria.
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