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Chapter 7 Frequent Questions

What is a Chapter 7 bankruptcy?

Chapter 7 Bankruptcy is a "liquidation" bankruptcy. Technically, this means that the court-appointed trustee liquidates the assets of your bankruptcy estate and sells them for the benefit of creditors. In reality, most Chapter 7 bankruptcy cases are considered to be "no asset" cases. This means that, after you avail yourself of all applicable bankruptcy exemptions, there are no assets to be liquidated for the benefit of your creditors. However, you must note that there are certain non-dischargeable debts, such as court ordered alimony, child support payments, criminal restitution and student loans that will not be discharged by this filing.

How do I know if I qualify for a Chapter 7 bankruptcy?

In order to qualify for a Chapter 7 bankruptcy, you must satisfy the Means Test. Your average monthly income for the six-month period before you file for bankruptcy must fall below the median income for your state. If it does, then you must complete an analysis based on your income and expenses. Your disposable income must be less than $125 per month in order to qualify you for a Chapter 7 bankruptcy. Because the requirements vary by state, it is important to have an attorney who is experienced in New York bankruptcy law work with you to determine whether or not you are able to file for a Chapter 7 bankruptcy.

Will I lose my house and my car if I file for bankruptcy?

No. In most cases, you will be able to keep your house and car, provided that your payments are up-to-date. You will also be able to keep your personal property, provided that the equity in your house, your car and your personal property does not exceed the allowable exemptions that apply to each of these items. When a bankruptcy petition is prepared, we make sure to list all of your assets. You have the right to retain certain exempt property. There are uniform federal exemptions and the state of New York also has its own specific exemptions. After taking the allowable exemptions, an experienced bankruptcy attorney will guide you in retaining all or most of your personal property to the extent possible under the law. A number of allowable state and federal exemptions designate personal items as exempt from your creditors.

Our goal is to ensure that you keep as many of your personal belongings and assets as possible. As an experienced bankruptcy, Glenn L. Kantor will use his knowledge and experience to ensure that you take every available exemption to protect your property. If certain of your personal belongings and assets simply cannot be protected under applicable bankruptcy law, we will let you know before the case is filed.

Will a bankruptcy help with my overwhelming medical bills?

If you have a great deal of debt in addition to your medical bills, the best option may be to file for bankruptcy. Medical bills are categorized as unsecured debt, the same type of debt as credit cards and personal loans. This means that all these unsecured debts could be discharged under a Chapter 7 bankruptcy.

Is my credit score ruined?

Generally, by the time you file for bankruptcy, your credit is not in good shape. The good news is that filing for bankruptcy means you are prohibited from filing for a bankruptcy to discharge your debts for another 8 years, so some creditors will consider you a good risk. Your bankruptcy will be expunged from your records within 10 years, and most are removed from your credit history even sooner. Oftentimes, you may even qualify to purchase a home in just a couple of years.


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What is a Chapter 7 bankruptcy?

Chapter 7 Bankruptcy is a "liquidation" bankruptcy.

What is a Chapter 13 bankruptcy?

Under a Chapter 13 bankruptcy filing, you will be working out a payment plan with your creditors.


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Fax: 631-439-6801
Email: info@kantorlawgroup.com

Kantor Law Group
150 Motor Pkwy Ste 401
Hauppauge, NY 11788

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Westhampton Beach, NY 11978

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