Why Hire New York City Bankruptcy Lawyers to File for Chapter 7 Bankruptcy?
The recent economic challenges have affected many New Yorkers to the point of filing for bankruptcy. The city has some of the highest taxes in the world, and with the real estate market in a down turn, it’s hard for people to make ends meet. If you are living and struggling under debt, you may want to consider Chapter 7 Bankruptcy as a way out. New York City Bankruptcy Lawyers, including a law firm like the Law Office of Richard Kistnen, can discuss this and prepare your chapter 7 Bankruptcy case with you.
The process of filing for bankruptcy can be simple and complex – at the same time! That’s why working with a New York bankruptcy attorney that you find easy to work with will help tremendously to help you prepare and file your case quickly and as easily as possible. The sooner you get your discharge provided under bankruptcy law, the sooner you and your family will be free the crushing weight of debt and living a new life with a financial fresh start.
When is the right time to file for chapter 7 bankruptcy in NYC?
So you’re thinking about filing for bankruptcy? More likely than not, you feel stressed out by your debts, all the collection letters in the mail, and the constant stream of phone calls. You need to pay off all your creditors. You’ve heard that you could file for bankruptcy and have all your debts wiped away. You are not sure, though, if it is the right time to file bankruptcy.
Put plainly, Chapter 7 is a great (and often the best) option when you are simply unable to pay your debts. Even though a Chapter 7 bankruptcy filing may have a negative impact on your credit score at the beginning, most people can eventually rebuild their credit pretty quickly. If you decide to file for Chapter 7, it is important to consult with a knowledgeable and experienced bankruptcy attorney to make sure that bankruptcy proceedings will work for you.
In conclusion, the right time to file for chapter 7 bankruptcy in NYC is when your financial situation feels stressful, including feeling overwhelmed by credit card debt, facing a wage garnishment, a repossession or foreclosure sale by secured creditors, or you have more outstanding debts than assets. Some good signs include non-stop creditor harassment. By filing bankruptcy proceedings with a New York bankruptcy lawyer, you can quickly and easily experience the power of bankruptcy relief, and you will be able to start fresh with a clean slate.
How do you qualify for chapter 7 bankruptcy in NYC?
When many people think of Chapter 7 bankruptcy, they instantly think of people who are in really deep financial trouble and are having trouble making ends meet. Chapter 7 is the most common form of bankruptcy filing for individuals. The bankruptcy law underlying these types of bankruptcy proceedings is designed for people who do not have substantial assets and are unable to keep up with their debts. It relieves them of most, if not all, of their debt (whether held by secured creditors or unsecured creditors) and allows them to keep their property once they receive a discharge of their debts.
There are lots of different aspects of the bankruptcy process that must be evaluated before the case is filed. Some of these aspects include looking at all of the person’s assets and determining what property they may protect and keep under the exemption laws. Another aspect is recent debt usage. Still another aspect is the financial part – does the person qualify based on their income earned over the last six months , as well as looking at a current snapshot of their household income versus their regular monthly expenses. These are all items that a bankruptcy trustee will examine, so it’s worthwhile to prepare for it as much as possible. It’s for all of these different aspects of bankruptcy law that you should work with an experienced New York bankruptcy law firm to get sound legal advice, and to help you with your bankruptcy petition.
If you or someone you know has reached the point where you can no longer stay under the crushing weight of debt, then it may be the perfect time to file for bankruptcy relief. The first step is to speak with a New York City Bankruptcy Lawyer who can explain your options and answer questions you may have.
What can you keep if you file for chapter 7 bankruptcy in NYC?
Bankruptcy is a legal status that indicates that an individual or business cannot pay their debts. Chapter 7, also known as liquidation bankruptcy, requires the debtor to turn over non-exempt assets in order to receive a discharge and stop any future collections. It involves liquidating all of your non-exempt property in order to pay off your creditors. Before you file your case, it’s important to know what property you may be able to keep, as well as what property a bankruptcy trustee may seek to get from you to pay your unsecured creditors.
As an experienced New York City bankruptcy lawyer, I get asked all the time about what people can keep if they file for Chapter 7. Frankly, the answer really is that it depends on what it is and how much of it is. There is an array of exemptions, both under state and federal law, that have to be explored in every case to see under which applicable exemption amounts maximizes property that can be protected. Here are some of those exemptions that may help you better understand what you can and cannot keep (current through August 2021):
- Real Estate: if you own your home (must be primary residence, not any investment property), you’re allowed to exempt up to $179,975 if using the state exemptions; under federal law, up to $25,150;
- Vehicle: you may exempt up to $4,825 of equity in a motor vehicle; under federal law, up to $4,000;
- Cash (including bank accounts): under New York law, if no homestead exemption is claimed, then up to $1,000 in cash; under federal law, if no homestead exemption is claimed, then up to $12,575 that can be used on any personal property, including cash, through the wildcard exemption
- Jewelry: up to. $1,175 under state bankruptcy exemptions; up to $1,700 under federal exemptions;
- Household furnishings/wearing apparel: under the state exemptions, no real limit; under federal bankruptcy exemptions, up to $13,400
Keep in mind that the role of the bankruptcy trustee is to protect the interest of unsecured creditors. If exemptions aren’t properly taken under the bankruptcy code, then it’s the trustee’s business and duty under the bankruptcy code to recover and liquidate nonexempt property to pay back unsecured creditors.
How Will a Creditor Know I Am Filing for Bankruptcy?
One of the requirements for bankruptcy filers under the bankruptcy code is that they include, as part of their paperwork filed in the bankruptcy court, is a creditor matrix. This documents includes the names and addresses of all of your known creditors. This is critical because the bankruptcy court will mail out a notice of the bankruptcy relief order to all creditors listed in that document. Additionally, many companies subscribe to third-party services that scrape the bankruptcy court dockets each day to search for new filings.
It is ultimately your job to schedule and give notice to all the creditors you possibly can. A creditor that isn’t provided notice of the bankruptcy case may have cause, in the future, to argue that the discharge does not apply to them.
Does a Bankruptcy Filing Stop Civil Litigation?
Whether you file for bankruptcy under Chapter 7 or Chapter 13 bankruptcy , you are taking a big step toward financial freedom. Whether you are in debt due to medical bills or credit card balances, or just spending that was a little more than you could manage, money can be a major source of stress. That stress jumps tremendously once a creditor sues you.
Fortunately, filing for bankruptcy assistance will stop almost all litigation as soon as you file your case. This powerful form of debt relief can be critical in foreclosure cases, as well as in post-litigation actions, like wage garnishments or repossessions.
Keep in mind, however, that while filing a bankruptcy case may stop most litigation efforts, a creditor still has the right to go to the bankruptcy court and request that the bankruptcy judge enter an order lifting the stay against that particular creditor. These are issues that New York City bankruptcy lawyers, like the Law Office of Richard Kistnen, can help you prepare for.
How Does Filing for Personal Bankruptcy Affect a Judgment Against Me?
When a creditor obtains a judgment against you, it means they’ve won the case in court, and now have a court order that allows them to collect that money from you. If you don’t pay them, they may take actions such as garnishing your wages or filing a lien against your home. So how does filing for bankruptcy affect a judgment against you?
How bankruptcy affects judgments entered against you really depend on your specific circumstances. If you don’t own real estate, then generally a bankruptcy discharge will operate to void the judgment for unsecured debts. (Creditors, however, will rarely file any paperwork in the court clerk office to vacate or remove the judgment. If it comes up in the future, you have to show a copy of your bankruptcy discharge.)
In the case of a judgment based on a secured debt, the bankruptcy discharge operates to terminate the secured creditor right to enforce the judgment against you personally, but they still may enforce the judgment against the property.
As an example, let’s look at foreclosure. The house has a secured claim – a mortgage against it. Secured creditors obtain a judgment of foreclosure and sale against the homeowner. Two days before the foreclosure auction, the homeowner files for chapter 7 bankruptcy, and eventually gets a discharge. After the bankruptcy case is over, the secured creditor may proceed with the foreclosure auction. If there is a deficiency balance (the house sold at auction for less than the balance owed to the secured creditor), the creditor cannot attempt to collect that deficiency balance from the debtor. In this case, the judgment is not enforceable against the debtor, but was enforced against the property. In other words, a bankruptcy generally does not alter the rights of a secured creditor against the property that is the collateral.
What questions should I ask a bankruptcy lawyer?
Facing bankruptcy is a difficult experience for anyone, so you really need the right bankruptcy lawyer. Experienced bankruptcy attorneys will be able to help you with all your questions and guide you through the bankruptcy process. Some common questions people have include:
- How bad is filing for bankruptcy?
- What information is need to prepare a bankruptcy petition?
- How do the different types of bankruptcies work?
- Do you get out of all debts if you declare bankruptcy? If not, what types of debt is no discharged in bankruptcy?
- What are advantages of filing bankruptcy?
- Can I file chapter 7 for a business bankruptcy?
- Is bankruptcy just good for unsecured debts, like credit card debt and medical debt, or can bankruptcy help me with things like tax debt?
- Can I keep my car if I file bankruptcy?
- What happens to my student loans when I file for bankruptcy?
- I have a pending personal injury claim. How does it impact the bankruptcy process?
- We are a married couple, but only one person wants to file. How does bankruptcy affect my spouse?
- How much does it cost to declare bankruptcy?
- How long does it take to repair credit after bankruptcy?
These are just a few of the questions that experienced New York City bankruptcy lawyers, like the Law Office of Richard Kistnen, can help you answer as you prepare to file your bankruptcy case.
If You Want Debt Relief Now, Contact An Experienced Consumer Bankruptcy Lawyer, the Law Office of Richard Kistnen, Today!
Debt relief is a necessary step for a lot of people, and it can be hard to know where to start. Some might think that applying for bankruptcy protection is the solution to all their problems, but this isn’t necessarily the case. Before you decide to take this step, it is important to find a qualified bankruptcy lawyer to help you navigate through the process.
We all experience debt at some point in our lives. When struggling with overwhelming debt, it can be really hard to figure out how to best handle it. Do you file for bankruptcy? Do you get a loan? What should you do? The answer, as always, is more complex than it seems.
With so many forms of debt relief and the complexity of each one, it can be difficult to figure out what type of relief is best for your specific financial situation. Fortunately, an experienced consumer bankruptcy lawyer can help you determine what will work best for your needs and your goals. Debt relief is a necessary step for a lot of people, and it can be hard to know where to start. Some might think that applying for bankruptcy protection is the solution to all their problems, but this isn’t necessarily the case. Before you decide to take this step, it is important to find a qualified bankruptcy lawyer to help you navigate through the process.
If you’re struggling with debt, bankruptcy is a great solution. The Law Office of Richard Kistnen offers affordable legal service to those in need. If you want relief now, contact them for more information and an obligation-free consultation. People come to us because they know that we can help them resolve their financial problems quickly and efficiently. Satisfied clients also have shared that they know they will never be taken advantage of or pressure them into a decision (signs of a valued attorney client relationship) at the Law Office of Richard Kistnen law firm.
It’s your time to get out from under the crushing weight of debt and experience your financial fresh start. Contact New York City’s favorite bankruptcy attorney, the Law Office of Richard Kistnen, today and book your No-obligation, confidential consultation . Still have more questions? Then check out this Bankruptcy Masterclass Webinar today!