What is Chapter 7 Bankruptcy?

What is Chapter 7 Bankruptcy?

Facing financial struggles is incredibly stressful. It is easy to feel overwhelmed. Luckily, you have some choices. If you are struggling financially, it is important that you reach out to a bankruptcy attorney to discuss your potential options as soon as possible. One option may be filing for Chapter 7 bankruptcy. Read on to find out more about Chapter 7 bankruptcy in New York.

Who is Eligible for 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 included. Under a Chapter 7 Bankruptcy, you are allowed to keep certain assets, such as bank accounts, automobiles, pension plans, IRA’s, and your house. In order to be considered eligible to file for Chapter 7 bankruptcy, you must receive credit counseling from a U.S. Trustee approved agency within 6 months before filing. Additionally, you will have to take a debtor education course in order for the state to grant you a discharge. Once these requirements are satisfied, you can begin the process of filing.

What Forms Do I Need in Order to File?

The first thing you should do is retain the services of an experienced bankruptcy attorney. After you obtain an attorney, you will file a petition for bankruptcy. You will need to obtain the following forms:

  • A list of all of your debts
  • An account of your income
  • A list of all of your assets, including all of your real estate and possessions
  • Your monthly living expenses

What is the Homestead Exemption?

The Homestead Exemption protects the equity in your home, which is the unsecured portion of your home.  Therefore, the value of your home, less the mortgage due on the home, equals the equity in your home. The maximum federal homestead exemption is $25,150. The New York State homestead exemption is:

  • $142,350 in Dutchess County, Orange County, and Ulster County.
  • $170,825 in Putnam County.
  • $85,400 in Greene County and Sullivan County.

If you are struggling financially, it is important to reach out to an attorney as soon as possible. Our firm is here to help you with all of your bankruptcy matters and act as your advocate. Contact our firm to speak with a skilled and dedicated attorney today. We will explore all legal options to help you get back on track.

CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE

Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.

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