If you would like to learn more about Chapter 7 bankruptcy and how our legal team could best help you, continue reading and give our experienced Orange County Chapter 7 bankruptcy lawyer a call today. Here are some questions you may have:
How does Chapter 7 bankruptcy work in New York?
With Title 11 of the United States Bankruptcy Code, it is important to recognize that it is divided into different chapters. Chapter 7 is the first chapter and it supplies safety from creditors. To be entitled to the Chapter 7 test, a means test is used to calculate the power of a debtor to afford the compensation of some of his or her debts.
Furthermore, Chapter 7 is also known as “Liquidation.” Recognize that with most Chapter 7 cases filed in the United States Bankruptcy Court in New York, debt is the only thing that is liquidated. This is because the exemption rights that are available to Chapter 7 debtors, also comprehended as the title supplied to those who file for protection under Chapter 7 of the Bankruptcy Code, are sufficiently reasonable to protect all of the debtor’s assets.
If you have additional questions about Chapter 7 bankruptcy, it is in your best interest to reach out to our firm today to converse with an experienced New York bankruptcy attorney.
What are the benefits of Chapter 7 bankruptcy?
Individuals who would like to file for bankruptcy are doing so for the discharge of debt. With Chapter 7 discharge, suits against a Chapter 7 debtor are uncollectible because of personal liability. Personal liability signifies the exposure to the enforcement of a money judgment. If a creditor seeks legal action against you for money owed and the court rules in the creditor’s favor, the signed piece of paper by the judge is reported by the clerk of court and reported on the county judgment roll or an electronic docket. The docketed judgment allows the creditor to manage your bank accounts and your wages.
What are the exemptions of this type of bankruptcy?
A person will have the right to obtain first money from the judicial sale of an asset by creditors outside of bankruptcy or by a trustee for the benefit of creditors in bankruptcy. For instance, in New York, the law states that a judgment for a defendant’s right to exempt 90% of earnings for services rendered within 90 days. Also, consider the fact that the creditor receives a money judgment for $5,000 against a defendant and then controls and garnishes the defendant’s bank account. In fulfilling the garnishment, the creditor must pay $4,500 (90%) of the account proceeds to the defendant in fulfillment of his or her exemption, and may only hold the remaining $500.
It is in your best interest to give our legal team a call today to learn more about this and speak with an attorney about your options.