New York Chapter 7 Bankruptcy Attorneys

Chapter 7, often referred to as “liquidation bankruptcy,” allows eligible individuals and businesses to discharge most unsecured debts within a matter of months.

Unlike Chapter 13, which involves a multi-year repayment plan, Chapter 7 typically resolves cases in approximately 4 to 6 months. Once your debts are discharged, creditors are legally prohibited from continuing collection efforts, giving you a true financial reset.

To qualify for Chapter 7, you must pass the Means Test, which compares your income to the median income in New York.

You may be eligible if:

• Your income falls below the state median, or
• Your disposable income is insufficient to repay your debts after allowable expenses

Our attorneys conduct a detailed financial analysis and guide you through the Means Test so you clearly understand your eligibility before filing.

Chapter 7 can eliminate many types of unsecured debt, including:

• Credit card balances and interest
• Medical and hospital bills
• Personal loans and lines of credit
• Utility arrears
• Most civil judgments
• Certain older income tax debts (subject to specific conditions)

However, some obligations are not dischargeable, including child support, alimony, most student loans, recent tax debts, and debts arising from fraud or criminal conduct. We carefully review your financial situation so you know exactly what to expect.

New York law allows filers to protect essential assets through bankruptcy exemptions. These may include:

• Homestead exemption: up to approximately $204,825 depending on county
• Motor vehicle exemption: up to $4,825
• Retirement accounts: generally fully protected
• Household goods: protected up to certain limits
• Tools of the trade: protected for working professionals

Depending on your situation, you may be able to choose between New York exemptions and federal exemptions. We help you determine which option best protects your assets.

From consultation to discharge, we handle every aspect of your case:

Comprehensive Financial Evaluation
We assess your income, assets, debts, and financial history to confirm eligibility and identify the best strategy.

Asset Protection & Exemption Planning
We maximize the property you keep by applying the most advantageous exemption strategy.

Petition Preparation & Filing
We prepare and file all required documents with the U.S. Bankruptcy Court, ensuring accuracy and compliance.

Automatic Stay Enforcement
Filing triggers an automatic stay, immediately stopping creditor calls, lawsuits, wage garnishments, and foreclosure actions. We enforce your rights and address violations.

341 Meeting Representation
We prepare you for and attend the Meeting of Creditors with you, ensuring you feel confident and protected.

Discharge & Post-Bankruptcy Guidance
After discharge, we help you rebuild your credit and move forward with a stronger financial foundation.

Certain actions before filing can negatively impact your case. Common mistakes include:

• Transferring assets to family or friends
• Repaying certain creditors ahead of others
• Accumulating new credit card debt before filing
• Withdrawing funds from retirement accounts
• Ignoring lawsuits or wage garnishments

We guide you early to help you avoid costly missteps and protect your eligibility.

Chapter 7 can also be used by businesses to wind down operations and resolve outstanding debts.

• Sole proprietorships: Business debts are typically included in the owner’s personal bankruptcy
• LLCs and corporations: These are separate legal entities and must file independently

We evaluate both personal and business exposure to determine the best course of action.

While Chapter 7 is a powerful tool, it is not the only option. Alternatives may include:

• Debt settlement
• Debt consolidation
• Chapter 13 repayment plans
• Loan modification
• Direct creditor negotiations

We help you compare all available options to make the most informed decision.

A Chapter 7 discharge is not the end, it is a fresh beginning.

Many clients begin rebuilding their financial lives quickly by:

• Opening secured credit cards
• Paying bills on time
• Monitoring credit reports
• Keeping low credit utilization

Within 12 to 24 months, many individuals are able to qualify for:

• Auto loans
• Traditional credit cards
• Even mortgage financing

We provide guidance so you can rebuild with confidence.

How long does a Chapter 7 case take?

Most cases are completed in approximately 4 to 6 months, depending on complexity and court schedules.

Will I lose my home or car?

Not necessarily. With proper exemption planning, many filers retain their home and vehicle.

Can Chapter 7 stop foreclosure?

Yes, the automatic stay temporarily halts foreclosure. For long-term solutions, Chapter 13 may be more appropriate.

Can I file again if I filed before?

Yes, but you must wait 8 years between Chapter 7 discharges.

How does Chapter 7 affect my credit?

It remains on your report for 10 years, but many people begin improving their credit soon after discharge.

Does my spouse have to file with me?

No, but joint filing may be beneficial depending on shared debts.

Can creditors object to a discharge?

Yes, in limited circumstances such as fraud or misrepresentation. We take steps to minimize these risks.

What happens if I inherit money during bankruptcy?

Certain inheritances received within 180 days of filing may become part of the bankruptcy estate.

Can I keep my retirement accounts?

In most cases, yes. Retirement accounts are generally fully protected under applicable exemption laws.

What happens to lawsuits if I file bankruptcy?

Most lawsuits are paused immediately due to the automatic stay, and some may be discharged entirely.