Chapter 7 Personal Bankruptcy
Chapter 7 Bankruptcy Attorney in Queens
What is Chapter 7?
Chapter 7 is one of several types of bankruptcy found under the U.S. Bankruptcy Code. It is also referred to as “liquidation bankruptcy.” During Chapter 7 bankruptcy, an appointed trustee sells a debtor’s non-exempt assets using a liquidation process. All proceeds from that process are used to pay creditors. In turn, the individual’s debt is either eliminated or drastically reduced.
In New York, certain exemptions protect an individual’s assets during Chapter 7 bankruptcy. This means that clients are often able to keep their homes, their cars, their personal belongings, and other exempt property.
If you are considering filing for Chapter 7 bankruptcy, your first step should be to contact a Queens bankruptcy lawyer to see whether or not this is the best choice or you.
In order to move forward with Chapter 7 bankruptcy, you must take a means test to determine whether or not you are eligible to file. The means test takes all your forms of income during a certain period and compares that average to the states median income. If your average income is lower than the state’s, then you have the option to file for Chapter 7. If your average income is above the state’s average, then you can factor in various deductions such as alimony or healthcare expenses and calculate your “disposable monthly income.” If this new amount is lower than the proposed limit, you are able eligible to move forward with Chapter 7 bankruptcy.
Chapter 7 Bankruptcy Lawyer in Queens
If you have questions about Chapter 7 bankruptcy or want to discuss debt resolution options, you can contact the Law Offices of Bruce Feinstein, Esq. for more information. With over a decade of successful experience in bankruptcy law, the firm is ready to help you get your life back on track.