Chapter 7 Bankruptcy Petition Lawyers
Chapter 7 Bankruptcy is the most common type of a bankruptcy proceeding. It allows you to discharge your permitted debt, which allows you to get a fresh start in your financial life.
A Chapter Seven Bankruptcy is usually filed by a person, or married couple, that does not have substantial income and cannot afford their credit card bills, medical bills or other expenses. If everything is done efficiently, the whole process can take about four 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. Approximately 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. Listed below are some of the current exemptions available under New York State Law, but beware that these exemptions are subject to change:
- In lower New York, an individual may exempt $150,000.00 in equity in the home, condo, or mobile home that you live in; a married couple may be entitled to a $300,000.00 exemption. In different counties outside the five boroughs and Long Island, these limits are different.
- You may save $4,000 in equity in a vehicle.
- You may exempt Pension, social security, or worker’s compensation benefits, and Child support and alimony payments, to the extent necessary for the support of the debtor and his/her children.
- You may exempt 100% of valid 401(k), 403(b), IRA accounts, and other ERISA qualified retirement savings accounts.
- You may protect up to $10,000 in household goods. This is based upon replacement value at their present condition.
- You may exempt 100% of funds on deposit in a valid college tuition savings program trust fund for a child. (i.e. 529 plans). A wedding ring, no matter the value (though not an engagement ring). Jewelry, artwork, or antiques up to $1,350. Tools necessary for your trade or business, up to $3,000.
- Finally, you may exempt up to $7,500 in a recovery of a personal injury action.