Long Island Chapter 7 Bankruptcy Lawyer

There is a lot of confusion and misinformation regarding bankruptcy. Most people believe that filing for bankruptcy will ruin their credit or is something to be ashamed of. The truth of the matter is bankruptcy is a legal route for those whose debts have become overwhelming, usually due to some unexpected financial emergency, to eliminate some or all of their debts and give them a fresh start.

Information About Chapter 7 Bankruptcy

There are several bankruptcy options available to cater to those with differing financial situations. For those who earn relatively low incomes and are in possession of few valuable assets, Chapter 7, which is also referred to as "straight liquidation," is often the option that can provide the most help. Chapter 7 is that part of the Bankruptcy Code that deals with liquidation of debt. It is the most common type of bankruptcy; under Chapter 7 an individual seeks to discharge all debts which are allowed to be liquidated with no repayment to the creditors.

The goal of this chapter is to provide individuals with a fresh start by wiping out all dischargeable debts including medical bills, credit card bills, judgments obtained by creditors prior to the filing of a bankruptcy petition, business related debts, and commercial and residential leases. In a Chapter 7, most or all of the individual's debts are cancelled by a bankruptcy trustee. Additionally, what assets they do have are usually liquidated in order to assist in paying off their creditors - this is often much easier, as they may not possess many valuable assets that would be difficult to part with, such as a house or car.

All About Chapter 7 - Helping You Understand the Process

If after a consultation with a Long Island bankruptcy attorney at the Law Offices of Scupp & Berman, you reach the conclusion that a Chapter 7 bankruptcy is your way out of debt, you will provide us with certain documents (i.e. last two years of tax returns, recent pay stubs, copies of all your debt statements) so that we can prepare the Chapter 7 petition. Upon completion of the petition we will file the document with the Bankruptcy Court Clerk's Office.

Upon the filing of the petition all creditors are restrained from taking any additional action to recover the debt. This restraining act is called a bankruptcy stay. The stay remains in effect throughout the bankruptcy process. Approximately 30 days after the filing of the petition you will appear with a member of our firm at a meeting with the Chapter 7 Bankruptcy Trustee assigned to your case.

At this meeting, which will last approximately 15 minutes, the Trustee will review your petition and ask you a few questions concerning your expenses and income. At the conclusion of this meeting, assuming the Trustee requests no further information, your case will be closed. Approximately 60 days after the meeting, if no objections from your creditors have been filed with the Court, you will receive your discharge of all your dischargeable debts.

What are non-dischargeable debts?

Not all your financial obligations will be eliminated by Chapter 7 bankruptcy. Under the Bankruptcy Code certain debts cannot be wiped out and will not be able to be discharged under this chapter. These debts are classified as non-dischargeable and include the following:

• Alimony, maintenance and child support obligations ;
• Student loans (except in extreme hardship cases);
• Fines, penalties, and criminal restitution;
• Debts incurred as a result of intentional injury; and
• Taxes owed governmental authorities

If your only debts are of the non-dischargeable classification, Chapter 7 will not be an alternative, but as you will see later, Chapter 13 might be an alternative that you will be able to consider.

Chapter 7 Bankruptcy Attorney Serving Suffolk and Nassau Counties

Chapter 7 bankruptcy has the potential to free one from their considerable debt load and grant them a newfound financial freedom. The chances of a successful filing are increased when one has an experienced attorney assisting them, which is why you should contact the Law Offices of Scupp & Berman, LLP today for your bankruptcy needs. Our firm has been assisting clients for 20 years, and we approach every case with the intention of securing a favorable outcome for the individual. We can provide you with the information and legal assistance you require to increase your chances of regaining your financial stability and enjoying a healthy and prosperous future - including information about how the means test will affect your filing. Call us today to learn more about how we can help!

If you are considering filing for Chapter 7 bankruptcy, it is in your best interests to contact a Long Island bankruptcy lawyer from our legal team to discuss your case and learn what you're facing.