How Can I Qualify For Chapter 7 Bankruptcy?

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To learn about the process of filing for Chapter 7 bankruptcy, continue reading and contact our Rockland County Chapter 7 bankruptcy attorney.

Do I qualify for Chapter 7 bankruptcy?

To determine if you qualify for Chapter 7 bankruptcy, you will first take the means test where you will compare your income with the median of a comparable household in your state. You will likely pass the means test if your yearly income is lower than the median income, which will qualify you for Chapter 7 bankruptcy. However, you may qualify for Chapter 7 in certain cases even if your income is above the median income.

What should I know about filing for Chapter 7 bankruptcy?

You will file a petition for bankruptcy to begin the process of filing for Chapter 7. You will submit the following within your petition:

  • A list of your debts/liabilities
  • A list of all of your assets including possessions, real estate, and more
  • The monthly cost of living in your home
  • A statement regarding your yearly income

After the above information has been submitted, you will receive an automatic stay which will prevent creditors from conducting all collection activities. This includes a halt of all wage garnishments, repossessions, foreclosures, and more. Your assets will be sent to a court-appointed bankruptcy trustee who will use your assets to pay off as much of your debt as possible. Next, you will attend the Meeting of Creditors along with the bankruptcy trustee and certain creditors. It is best to attend this meeting with a bankruptcy attorney in your corner. Your financial station will be discussed and the main focus will be to determine the best path for all parties. Finally, you should receive a bankruptcy discharge from the Bankruptcy Court.

Will I lose my assets?

If you are looking into filing for Chapter 7 bankruptcy, you may be wondering what will happen to your assets. Chapter 7 bankruptcy is sometimes known as liquidation bankruptcy. However, you can actually keep quite a bit of your assets. You are permitted to retain up to $11,000 in your bank account in New York and $10,000 in value of household goods such as clothing and furniture. Television sets and wedding rings are exempt from bankruptcy as well. You may also be able to keep your car if it is worth less than $4,200.

From New York City to Rockland County, each spouse may retain up to $165,000 of equity in their homes. However, Orange up to Albany County residents may retain up to $150,000. IRAs, pension plans, and 401(k)s are fully exempt, up to $1 million.

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.