Chapter 7 Bankruptcy Attorney in the Bronx

Proudly Serving Clients for More Than 20 Years

Are you unable to keep up with your credit card debt? Have you grown tired of harassing phone calls from creditors? Do you have few assets and a limited income? Chapter 7 bankruptcy can provide you with a fresh financial start by eliminating a majority of your debt. By sitting down with our skilled and compassionate Bronx Chapter 7 bankruptcy attorneys, you can determine if this is an option that will work for you.

At Park & Nguyen Attorneys At Law, we help our clients develop an individualized plan for debt relief. With 20 years of experience, our attorneys offer sound advice about bankruptcy eligibility and debt reorganization options.

One of the key aspects of the Chapter 7 process is understanding the exemptions available under New York law. These exemptions allow you to protect certain essential assets from liquidation, such as a portion of home equity, specific personal property, and possibly retirement accounts. Knowing which assets you can retain can make a significant difference in your post-bankruptcy financial situation, emphasizing the importance of professional guidance throughout this critical step.

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What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is one of four main chapters in the United States bankruptcy code. This process is for individuals with few to no assets and an income that is at or below the federal median income guideline. These individuals must also be able to pass the bankruptcy means test.

In Chapter 7 bankruptcy, the proceeds from asset liquidation, or a sale of the debtor's non-exempt property, are used to resolve their debts. Any remaining debt balance is typically forgiven, and the person is usually able to keep a car, home, and furnishings.

Understanding the potential impact on your credit score is crucial when considering bankruptcy. While Chapter 7 bankruptcy can initially lower your score, it also offers an opportunity to rebuild credit by managing finances better post-bankruptcy and responsibly using credit in the future. This long-term perspective can enable individuals to emerge stronger over time.

Do I Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy in New York, you must meet certain requirements. To qualify, you must make sure that:

• You can pass the “means test.”
• You have enough disposable income to repay your debt and live comfortably.
• You do not have debt discharged from a previous bankruptcy.
• You do not have a previous bankruptcy case that was dismissed 180 days ago.
• You completed a credit counseling course that is approved by the U.S. Bankruptcy Trustee 180 days before filing.
• You did not defraud creditors.

If you had debt discharged in a previous Chapter 7 case within the past eight years or through Chapter 13 within the past six years, you cannot file for Chapter 7.

Additionally, potential filers should be aware of the types of debt that Chapter 7 potentially impacts. While it can alleviate unsecured debts like credit card debt and medical bills, it typically does not discharge secured debts or certain kinds of tax obligations. It's essential to have a comprehensive evaluation of your financial obligations to understand the full scope of bankruptcy's benefit.

If you are considering filing, be sure to consult with a Chapter 7 bankruptcy attorney in Bronx from Park & Nguyen Attorneys At Law.

The Chapter 7 Means Test

To be eligible to file for Chapter 7 bankruptcy, there are certain requirements that you as the debtor must meet. To determine eligibility, you’ll need to pass a “means test” to see where your income stands compared to your state’s median income level.

A Chapter 7 means test takes your monthly average income from the past 6 months before filing and compares it to the median income of a similar household in your state. If your income is less than the state’s median, you will automatically qualify for filing Chapter 7 bankruptcy. Though median incomes vary from state to state, most applicants have no issue passing the means test since they already have financial issues and tend to be making very little money at the time of filing.

Completing the means test can be complex, and it's crucial to include all allowable expenses accurately. These can range from housing and utilities to medical expenses and transportation costs. Our Bronx team is equipped to help you navigate this process to ensure that all viable deductions and expenses are accounted for, optimizing your chance of qualifying for relief.

What if My Income is Above the Median?

In the event of you having a higher income than your state’s median, you still have a few options for filing Chapter 7 bankruptcy. Since the means test just weighs your income versus your expenses, you can follow through with completing the entire means test instead of trying to qualify based on your income alone. In the event you are left with no disposable income after subtracting allowable expenses from your income, you would be eligible for filing Chapter 7 bankruptcy.

It's essential to analyze your financial statements thoroughly, as there might be overlooked expenses that can be factored in to reduce your disposable income on paper. Consistent evaluation with professional input can substantially impact your qualification status, allowing you to pursue Chapter 7 as a viable option even with a seemingly higher income.

For answers to frequently asked questions, please visit our Chapter 7 FAQ page or contact our bankruptcy attorneys in the Bronx.

To schedule a free phone consultation with our Chapter 7 bankruptcy lawyers in the Bronx, contact us online or call (718) 514-7886.

What Happens When You File Chapter 7?

If you are considering filing for bankruptcy, you may be curious about what happens next. Your debts will not be discharged immediately, so what exactly goes on before that? 

Below is what takes place after an individual files for Chapter 7 bankruptcy:

• Automatic Stay is Triggered: Immediately after the bankruptcy petition is filed, it triggers an automatic stay, which halts creditor actions and collections. This means that creditors must cease all effects to collect your debts -- this includes lawsuits, wage garnishments, and harassing phone calls.
• Bankruptcy Trustee Assigned to Your Case: Upon filing, a bankruptcy trustee will be assigned to your case. The trustee is responsible for reviewing your bankruptcy documents, verifying your financial information, and overseeing the proceedings. They play a crucial role in the administration of your bankruptcy case.
• Attend the 341 Meeting of Creditors: This meeting is conducted by the bankruptcy trustee and provides an opportunity for the trustee and any interested creditors to ask you questions about your financial situation and the information provided in your bankruptcy documents. In most cases, creditors do not attend these meetings.
• Complete A Debtor Education Course: Before receiving a discharge, you must complete a debtor education course, which is designed to provide you with financial management skills to help you make better financial decisions in the future. This course is typically taken online or over the phone and must be completed through an approved provider.
• Discharge of Debts: In most bankruptcy Chapter 7 cases, you can expect to receive a discharge of your eligible debts within three to six months from the date of filing. The discharge order eliminates your liability for those debts, providing you with a fresh financial start.

Preparation is crucial as you approach each stage of the Chapter 7 filing process. Ensuring all financial records are accurate and complete before meeting with the trustee can streamline proceedings. Additionally, familiarizing yourself with the typical timeline and expectations involved helps reduce stress and allows you to focus on the benefits of moving toward financial recovery. For more guidance, connect with a Chapter 7 bankruptcy lawyer in Bronx at Park & Nguyen Attorneys At Law.

Local Bankruptcy Courts and Resources

Understanding the logistics of the local bankruptcy court process is essential for residents of the Bronx considering Chapter 7 bankruptcy. The United States Bankruptcy Court for the Southern District of New York handles Chapter 7 cases for Bronx residents. Having local representation like Park & Nguyen Attorneys At Law means you have attorneys who are familiar with the court's particular procedures and expectations. This insight can help in efficiently guiding you through the legal process.

Beyond legal representation, several Bronx-based community resources can provide additional support during your bankruptcy journey. Organizations such as local credit counseling agencies approved by the U.S. Trustee can offer guidance on repaying debts and managing finances post-bankruptcy. These local services offer a comprehensive support system tailored to help you regain financial stability and make informed financial decisions in the future.

Contact Our Bronx Chapter 7 Bankruptcy Lawyers

You may have seen advertisements for various document services willing to handle your Chapter 7 or Chapter 13 bankruptcy paperwork. While they may complete your documents accurately, they will not be by your side in bankruptcy court. They will also not be there to protect your best interests.

At Park & Nguyen Attorneys At Law, we offer support from day one through the completion of the process. Our Bronx Chapter 7 bankruptcy attorneys understand your fears and will provide you with solid advice, meticulous document preparation, and dedicated courtroom representation. 

Choosing the right attorney ensures that you receive comprehensive assistance tailored to your circumstances, equipping you to face the complexities of bankruptcy with confidence. Our team remains attentive to your evolving needs, offering proactive strategies and solutions that align with your financial rehabilitation goals. Contact a Chapter 7 bankruptcy attorney in Bronx today.

Speak to a Chapter 7 lawyer near you in the Bronx for prompt assistance. Dial (718) 514-7886 or submit your info online now.

FAQs About Chapter 7 Bankruptcy in the Bronx

What Documents Do I Need to File for Chapter 7 Bankruptcy?

When filing for Chapter 7 bankruptcy, you will need to gather a comprehensive set of financial documents to strengthen your application. These typically include proof of income such as recent pay stubs or income statements, a list of monthly living expenses, detailed information on your credit card debts and other liabilities, documentation of any secured debts, and a list of significant assets and property valuations. Additionally, you will need to complete a bankruptcy petition and related forms, which provide an overview of your financial situation. Accurate, thorough documentation can significantly impact the efficiency of your filing process and help your lawyer assess the best strategy for your situation.

How Does Chapter 7 Bankruptcy Affect My Credit Score?

Chapter 7 will result in a decrease in your credit score initially; it is marked as a public record and will stay on your credit report for up to ten years. This may affect your ability to obtain loans or credit in the short term. However, it offers a chance to start rebuilding a healthier credit profile by discharging significant obligations and allowing for new positive behavior like making timely payments on existing bills, secured credit cards, or other financial commitments. With disciplined financial management, many filers often see a gradual improvement in their credit scores over time.

What Is the Role of the Trustee in a Chapter 7 Bankruptcy?

A bankruptcy trustee plays a critical role in the Chapter 7 process. Appointed by the courts, the trustee is responsible for reviewing your bankruptcy application, which includes your financial statements, and validating information to ensure compliance with bankruptcy rules. The trustee’s duties extend to administering the liquidation of non-exempt assets and distributing proceeds to creditors. They will also oversee meetings with creditors and ensure that the debtor adheres to legal requirements. The trustee serves as an intermediary, balancing the interest of creditors as well as ensuring that you receive the debt relief intended under the bankruptcy code.

Can I Keep My Car If I File for Chapter 7 in Bronx?

Whether you can keep your car during a Chapter 7 bankruptcy proceeding often depends on the equity in the vehicle and whether it falls within the New York state exemption limit. If you owe money on a car loan, you can choose to reaffirm the debt, meaning you agree to continue making payments under the same or adjusted terms. Alternatively, if there is significant equity beyond what an exemption covers, the trustee may decide to liquidate the vehicle to pay creditors. It's advisable to consult a Chapter 7 bankruptcy lawyer in Bronx who can evaluate your specific situation and provide guidance on the best course of action to retain your vehicle while obtaining debt relief.

How Long Does the Chapter 7 Bankruptcy Process Take in New York?

The Chapter 7 bankruptcy process in New York generally takes between four to six months from the date of filing to the discharge of debts. This timeline involves several key steps, including preparing and submitting the required documentation, attending a 341 Meeting of Creditors approximately 30-45 days post-filing, and completing a debtor education course before debts can be discharged. Factors influencing the duration can include the complexity of the case, the necessity of asset liquidation, and the time taken to address any potential disputes with creditors. Working with a knowledgeable Chapter 7 bankruptcy attorney in Bronx can help streamline this process and ensure you adhere to all procedural requirements, minimizing delays.

Get the help you deserve to reach a fresh financial start. We offer reasonable rates and flexible payment plans to our bankruptcy clients. Speak with our Chapter 7 bankruptcy lawyer in Bronx as soon as possible.