Chapter 7 Bankruptcy is the easiest and the most common type of a bankruptcy proceeding which allows you to get a fresh start in your financial life. We file Chapter 7 cases in New York.
Usually filed by people who do not have substantial assets and are not able to keep up with minimum payments on their credit cards. The process from "soup to nuts" will take you about three months.
It starts with an interview which you can have over the phone with one of the attorneys in the office or you can schedule an appointment in one of our offices for a free consultation. After the interview we will file your case with the court. In a month after the filing, an attorney will attend a meeting of creditors (341 meeting) with you. Two to Three months after the meeting you will receive an official discharge notice from the court. Chapter 7 Bankruptcy allows you to keep all of your possessions which are under the exemption limits, which are: $2,500 in a bank account, $50,000.00 ($100,000.00 for a married couple) homestead exemption (amount of equity in the house), a car valued at $ 2,400.00, and $5,000.00 in personal possessions.
Our office is also competent to consult you on tax issues within bankruptcy and the ways you can discharge taxes to Internal Revenue Service and New York State.
Per New Bankruptcy Law (Chapter 7 Cases in New York)
1. Must get credit counseling before filing. (On-Line webinar)
2. Must get debtor education after filing. (On-Line webinar)
3. Must supply PayStubs and/or income verification up to 6 months prior to filing.
4. Must provide tax returns filed for the past 2 years.
5. If own secured property, must file with the court within 30 days, a statement of intention regarding re-affirming the secured debt or not. If the debtor chooses not to re-affirm the debt within 45 days of filing, then the automatic stay is terminated.
6. Must pass Means Test.
7. Cases are now subject to random US Trustee Audit.
8. There is now a 8 year time limit after filing a prior chapter 7 in order to file a current one & there is now a 4 year time limit after filing a prior chapter 13 to file a current chapter 7.