How is your mortgage, car loan, or other debt coming due? The Staten Island bankruptcy lawyers of our firm can advise you. Finding out what options are available to you to become financially stable again is important if you are finding managing your finances difficult.
If you find yourself in one of the following situations, Chapter 7 may be for you:
- Indebtedness
- Ownership
- Garnishment of salaries
- A creditor harassing you
After filing, you prevent creditors from making further collection attempts. You will automatically be granted a stay of proceedings. In a liquidation bankruptcy, your debt can be extinguished while you maintain your residence and property. This is an easy way to get your financial life back on track.
But as someone who files for a bankruptcy proceeding, you might still want to ask yourself this question, ‘Does Bankruptcy Clear All Debts?’ While you might think all your debts can be cleared when filing for a Chapter 7 bankruptcy, that assumption isn’t true. If you have medical bills, credit card bills, and other unsecured debts, you can extinguish them by filing for bankruptcy. Unfortunately, if you have debts, such as tax liens without some exceptions, federal student loans, alimony payments, Learn more and child support payments, initiating a bankruptcy proceeding can’t do anything since these debts can’t be discharged in bankruptcy.
What Are The Laws On Staten Island Regarding Chapter 7 Bankruptcy?
It is important to speak with a New York attorney if you want to know if you qualify for Chapter 7 bankruptcy. Using a means test, you analyze your income in relation to your area’s average income. A means test determines the amount of debt relief that needs to be implemented.
It is the best alternative for those who cannot repay their debts because Chapter 7 bankruptcy eliminates the debt- however, it may not be the best option for those who have a regular income or own a lot of property. Perhaps you would be a good candidate if you earned very little money.
The financial situation of a New York bankruptcy client should be evaluated by an experienced attorney to determine whether or not Chapter 7 is appropriate. There are ways to determine if Chapter 7 is the best option for you if you have a large amount of debt, or if you can file Chapter 13 and repay it over time.
You can get a free financial assessment from The Staten Island bankruptcy Lawyer if you worry about what this court process will do to your finances. Also, the lawyer will tell you how filing for Chapter 7 bankruptcy can affect your credit score. Generally, initiating a bankruptcy proceeding will not hurt your credit rating forever. Even if the filing will stay on your credit report for a couple of years, it will allow you to increase your score after the filing.
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What Are My Chances Of Losing Everything I Own?
Many people fear losing everything when they go through Chapter 7. Most assets will not be seized under Chapter 7.
You will receive an automatic stay that will prevent your creditors from harassing you or collecting your debt. These creditors will not be able to garnish your pay, seize your house, car, or empty your bank accounts for the time being. The purpose of this time is to reevaluate your financial situation. How is one going to make a living if he or she does not have a home or a car?
Application Submission
If you file for bankruptcy under Chapter 7, you are technically surrendering your debts and property to the court. Your property must be sold or your debt must be settled with the court’s approval.
After filing, you will be able to manage your property and finances however you like. In order to ensure that creditors receive a high percentage of what they are owed, the court appoints trustees.
You may be able to sell nonexempt property to pay your debts if your paperwork has been reviewed. Furthermore, we will examine your financial transactions from the past year to find out if there are any that can be reverted in order to allocate assets to your creditors. Since the majority of your property is small in comparison to what you owe, it might be exempt from bankruptcy.
The bankruptcy court will summon you to a creditors’ meeting within a few weeks of filing for bankruptcy. As part of the meeting, a bankruptcy trustee will ask you questions about your bankruptcy and filing. During the litigation process, you normally only stop at the Staten Island courthouse.
Conclusion
The decision to file a Chapter 7 bankruptcy depends on several factors, such as your financial situation, qualifications, and timing. Not only that, the process of filing such a legal proceeding can be challenging and stressful. Because of this, it’s imperative to work with an experienced bankruptcy attorney in Staten Island or wherever you may be located. With them by your side, you’ll be able to better understand the impact of bankruptcy both negatively and positively.
If you’re new to Chapter 7 bankruptcy proceedings, you can keep the information mentioned above in mind to know some valuable legal advice from reliable bankruptcy attorneys in Staten Island.