Understanding Chapter 7 Bankruptcy

It is time that we begin to understand that filing for Bankruptcy protection is not dishonorable.  Sometimes circumstances in life and business lead to serious financial situations.  The Government, understanding that individuals need help to get back on the path of financial stability, has created “The Fresh Start”. They understand that often Bankruptcy is the best, and in many cases, the only way that families will be able to get back on their feet.

What is a Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy will grant you a discharge of most of your debt, including credit card debt, personal debt, medical bills, foreclosures and automobile repossessions.  Generally, student loans and tax debt are not eliminated.

Under a Chapter 7 Bankruptcy, you are allowed to keep certain assets such as bank accounts, automobiles, pension plans, IRA’s, and your house.  No one from the Bankruptcy Court comes to your home.  Your employer is not notified.  Your wages are protected.

Even though your family income must be less than the average family income in the county in which you live, the average family income is changed approximately every three months by the U.S. government. For example, the average income of a family of 3 living in Rockland County in 2017 is $75,870, for a family of 4 it is $92,000 and up.

As soon as you file a Chapter 7 Bankruptcy, the Bankruptcy Court imposes an injunction on all of your creditors called the “Automatic Stay”.  The Automatic Stay prohibits creditors from any collection activities, including lawsuits, wage garnishments, collection calls, collection letters, bank restraints, foreclosures or repossessions.

If you need to take responsible financial steps to eliminate your debt and save your assets, it is important to discuss Bankruptcy protection with an effective and experienced attorney. The Law Office of Allen A. Kolber, Esq. provides quality legal services to clients in New York State who need a helping hand through tough times.

If you require the services of an experienced Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.