attorney who will file chapter 7 on your side

Full Answer

Do I need a lawyer for a Chapter 7 bankruptcy case?

All Chapter 7 cases require you to fill out extensive bankruptcy forms, research exemption laws (to protect property) and follow all local court rules and procedures. If you aren't comfortable doing the work—and assuming the risk—consult with a bankruptcy lawyer.

What happens when you file Chapter 7 bankruptcy?

The most important factor in filing Chapter 7 bankruptcy is finding an experienced bankruptcy attorney. Once you decide on an attorney, you can refer creditors to your lawyer’s office. Filing the petition will trigger an “ automatic stay ,’’ which means creditors can’t pursue lawsuits, garnish your wages or contact you about your debts.

Should you talk yourself out of Chapter 7 bankruptcy?

But if you talk yourself out of Chapter 7 when it could be the right decision, consider a future of trying to explain your missed debt payments, defaults, repossessions and lawsuits. And yes, all of those will hurt your credit, too. You will be forced to be more disciplined financially.

What happens if I don’t meet Chapter 7 requirements?

If you fail to meet Chapter 7 requirements, a Bankruptcy Court can convert the case to a Chapter 13 bankruptcy. The only exceptions are: Note: Before October 17, 2005, it was largely up to a bankruptcy judge to decide whether a debtor met Chapter 7 requirements.

What Cannot be filed under Chapter 7?

Additional Non-Dischargeable Debts Certain debts for luxury goods or services bought 90 days before filing. Certain cash advances taken within 70 days after filing. Debts from willful and malicious acts. Debts from embezzlement, theft, or breach of fiduciary duty.

How much cash can be protected in a Chapter 7?

For example, typically under Federal exemptions, you can have approximately $20,000.00 cash on hand or in the bank on the day you file bankruptcy.

When would a dismissal of a Chapter 7 petition be likely?

Usually a chapter 7 bankruptcy is dismissed if the client didn't tell the lawyer that they owned something valuable, like a car, house or business.

Can one spouse file Chapter 7 and not the other?

If most debts are owed only by one spouse, it may be appropriate for that spouse to file for bankruptcy alone. However, if one spouse does file for bankruptcy in order to discharge debts, the other spouse may be held responsible for repayment of some debts, such as jointly-owned credit card debt or medical debt.

Do they freeze your bank account when you file Chapter 7?

Some banks will freeze your account as soon as they find out about the bankruptcy. They do it to protect the assets for creditors. In most cases, you or your attorney can ask the bankruptcy trustee to contact the bank and release the freeze. The trustee will likely do so if you're entitled to the funds.

Does Chapter 7 trustee check your bank account?

Your Chapter 7 bankruptcy trustee will likely check your bank accounts at least once during the process of overseeing your filing. They have a right to perform a full audit of your accounts or check them any time it is necessary. However, it is rare for them to keep close tabs on every account.

How much do you have to be in debt to file Chapter 7?

Again, there's no minimum or maximum amount of unsecured debt required to file Chapter 7 bankruptcy. In fact, your amount of debt doesn't affect your eligibility at all. You can file as long as you pass the means test. One thing that does matter is when you incurred your unsecured debt.

What can you not do after filing bankruptcies?

After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt.

How do you pass Chapter 7 means test?

Certain family and household expenses might help you pass the means test for Chapter 7 bankruptcy. If your income is higher than your state's median income for a similar size household, you must complete the entire bankruptcy means test form to determine whether you qualify for Chapter 7 bankruptcy.

Can a married person file Chapter 7 individually?

1. You Can File Individually If You Are Married. Married couples have the freedom to file for bankruptcy together or individually. Couples typically file together when they have joint debts, but spouses can file by themselves if they choose to.

Can a married couple file Chapter 7?

Married couples have the option to file a joint bankruptcy, but sometimes it's best for one spouse to file alone. Learn more about it. Married couples can file together in a joint bankruptcy that combines both spouses' property and debts into the same bankruptcy case.

Debt Relief for a Fresh Start

There are some words that scare people just by hearing them. Bankruptcy is one of them.

What Is Chapter 7 Bankruptcy?

Chapter 7 of the United States Bankruptcy Code is a provision under Federal law designed to assist those who can’t repay their debts.

Do I Qualify for Chapter 7 Bankruptcy in New York?

In order to qualify for Chapter 7 in New York, you need to meet certain requirements.

Get Rid of Credit Card Debt for Good

There are three kinds of debt under the Bankruptcy Code: “ secured debt ,” which is backed by an asset like a car or a house, “ unsecured, priority debt ,” such as taxes, alimony, child support, and student loans, and “ unsecured, non-priority debt ,” like credit cards, personal loans, and unpaid bills from friends, family, or customers.

The Differences between Chapter 7 and Chapter 13 Bankruptcy in NY

We are often asked about the differences between Chapter 7 and Chapter 13 bankruptcy in New York. There are many factors to consider, including how each chapter will apply to your particular financial situation.

What are the circumstances in which a debtor is not eligible for Chapter 7?

The following are circumstances in which a debtor is not eligible for Chapter 7. 1. Your Income is Too High. Eligibility for Chapter 7 requires a determination of whether a filer's income is too high. The " means test " determines whether a debtor qualifies for Chapter 7.

How long can you file for Chapter 7 bankruptcy?

If a filer discharged debt under a Chapter 7 bankruptcy within the past eight years or under a Chapter 13 bankruptcy within the past six years, then the debtor is ineligible for Chapter 7. The time limitation runs from the date when the debtor filed for the previous bankruptcy.

What is the intent of the current bankruptcy law?

As a result, under the old law, most filers chose to have the debt discharged even if they were financially capable of repaying the debt in a Chapter 13 repayment plan. Consequently, the intent of the current bankruptcy law is to weed out filers who can afford to repay some debt.

How long does it take to get credit counseling before filing for Chapter 7?

Within 180 days before filing for Chapter 7, a debtor must participate in credit counseling with a nonprofit agency approved by the U.S. Trustee's office. The purpose of credit counseling is to help the debtor determine whether other options besides bankruptcy are available.

Why is a filer ineligible for bankruptcy?

A filer is ineligible if the dismissal of a previous Chapter 7 or Chapter 13 bankruptcy case occurred within the past 180 days for any of the following reasons: The filer violated a court order. The previous bankruptcy case was considered fraudulent or constituted abuse on the court.

What are the types of actions that a debtor can take within a few years of filing for bankruptcy?

The following types of actions by a debtor within a few years of filing for bankruptcy may indicate fraud in the court's eyes: The debtor transfers property to friends and family members. The debtor mutilates or destroys property. The debtor purchases luxury items.

What is the second part of the means test for Chapter 7?

2. You Can Repay Some Debt.

How does Chapter 7 move?

Most Chapter 7 cases move along predictably: you file for bankruptcy, attend the 341 meeting of creditors, and then get your discharge. But, that's not always the case. Other, more complicated issues can arise that most pro se filers aren't prepared to handle. For instance, many self-represented filers:

What to do if you decide to file for bankruptcy on your own?

If you decide to file for bankruptcy on your own, find out what services are available in your district for pro se filers. Some bankruptcy courts hold pro se clinics where an attorney describes the bankruptcy options and process. Others can connect you with legal aid organizations that do the same.

What do you need to take before filing for bankruptcy?

Failing to take required education courses. In Chapter 7 and Chapter 13 bankruptcy filers must receive credit counseling from an approved provider before filing for bankruptcy, and complete a financial management course before getting a discharge. Many pro se debtors, confused about these requirements, fail to file the proper certificate, which can result in a dismissal of the case.

What is the best bankruptcy for a home?

For most consumers, the logical choices are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Each type has specific benefits that solve particular problems. Also, property is treated very differently in each chapter. For example, if you want to save your home from foreclosure, Chapter 13 might be your best bet.

What happens if you don't understand bankruptcy?

Or something else might crop up. When you find yourself on the receiving end of a complaint or motion, an attorney is essential to your success.

Why do people represent themselves in bankruptcy?

Some people represent themselves because they can't afford the attorney fees. Others have simple cases and don't feel the need to hire an attorney. But while doing so is possible, it's not wise in every case. In this article, you'll learn about some of the most common problems the court sees in bankruptcy cases filed without an attorney.

Do you have to file for bankruptcy if you are self represented?

Many self-represented bankruptcy debtors don't file all of the required bankruptcy documents , which, if not remedied, will result in a dismissal of the case.

What happens if you file Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy, the court—and your creditors—assume that you'll stop making payments on bills that will get discharged (wiped out) in your bankruptcy case and use the funds to pay legal fees instead. For instance, credit card payments, medical bills, past-due utility payments, and personal loans (such as payday loans) usually qualify for a discharge.

Why do people go to bankruptcy lawyers?

It could be because it's cheaper to help someone fix a financial problem once and for all using bankruptcy instead of helping out on an ongoing basis.

What are the free clinics for bankruptcy?

Free Clinics, Legal Aid, and Pro Bono Attorneys. Resources are available to debtors who can't afford a bankruptcy attorney, but they vary depending on where you live. Some bankruptcy courts have free clinics to help debtors file for bankruptcy relief on their own.

How many installments can you pay for bankruptcy?

Otherwise, you might be able to pay the fee in up to four installments. To apply for either, you'll complete and submit the official request forms along with your initial bankruptcy petition. The court will notify you if the judge approves the waiver or installment arrangement.

What to do if you can't afford bankruptcy?

If you can't afford a Chapter 7 bankruptcy lawyer, consider whether one of the following might work for you: stop making payments on debts that will get wiped out in bankruptcy and pay your attorney instead. borrow the fees from a friend, family member, or even your employer. retain a bankruptcy lawyer who will handle creditor calls ...

How much do lawyers pay for retainers?

Some lawyers will let you pay a retainer as low as $100 and then pay the remaining attorneys' fees in installments. However, even though many lawyers offer payment plans, they won't file your case until all fees are paid in full—and for a good reason.

Do you have to file bankruptcy on your own?

If you aren't comfortable doing the work—and assuming the risk—consult with a bankruptcy lawyer. If you'd like to file on your own, consider using a good bankruptcy self-help book.

What happens when you file Chapter 7?

Filing a Chapter 7 petition automatically stays any action by creditors, meaning they’re unable to continue calling you for payments or go forth with any lawsuits or wage garnishments.

How to file for bankruptcy yourself?

Here are the general steps you will have to take to file for Chapter 7 bankruptcy yourself: 1. Determine Eligibility. The law establishes limits on wealth, income and property for Chapter 7 bankruptcy. You will have to provide a full disclosure of your income, assets and debts for the court to evaluate before you can file for Chapter 7.

What is the pre filing hurdle?

Another pre-filing hurdle requires you to receive credit counseling from an accredited source. You will also have to enroll in a financial management course to ensure you are educated about handling debt. You must file documents certifying you’ve met these requirements.

How long does a bankruptcy meeting last?

Don’t worry, according to thebankruptcysite.org, these meetings typically only last about 1-2 minutes.

Do you have to make less than your income to file for Chapter 7?

You must earn less than your state median income to qualify for Chapter 7 bankruptcy. You should know by using the calculator above whether you qualify, but you will still need to fill out the 22A-1. Here are the three forms, in order: 22A-1. 22A-1 Supp.

What is the best way to file Chapter 7?

The most important factor in filing Chapter 7 bankruptcy is finding an experienced bankruptcy attorney. Once you decide on an attorney, you can refer creditors to your lawyer’s office. Filing the petition will trigger an “ automatic stay ,’’ which means creditors can’t pursue lawsuits, garnish your wages or contact you about your debts. Here’s a potential timetable:

When to File Chapter 7 Bankruptcy?

There are several warning signs that you should be considering Chapter 7 bankruptcy. Five strong signs that indicate filing for Chapter 7 may be the right solution include:

What is the means test for Chapter 7?

You must pass a “means test’’ to qualify for Chapter 7 filing. The bankruptcy means test examines financial records, including income, expenses, secured and unsecured debt to determine if your disposable income is below the median income (50% lower, 50% higher) for your state. The means test income level varies from state to state.

Why is Chapter 7 the most popular?

Chapter 7 is, by far, the more popular form because it’s cheaper, quicker and effective at relieving responsibility for debt … if you qualify! And that’s a big if. You must pass a means test, meaning your disposable income is under the median income in your state.

What is the next step for bankruptcy?

Pre-bankruptcy credit counseling ($50) is the next required step for debtors filing under Chapter 7. These course typically are offered by nonprofit credit counseling agencies, who look at your financial situation to determine if there are other avenues (debt management, debt consolidation, debt settlement) that could resolve the issue without having to file bankruptcy.

How many bankruptcy cases are there in 2019?

It’s the quickest, simplest and most common type of bankruptcy. According to the American Bankruptcy Institute (ABI), 63% of the 774,940 bankruptcy cases filed in 2019, were Chapter 7. An even more encouraging bankruptcy statistic: 94.3% of Chapter 7 filings had their debts discharged, meaning forgiven.

What does "no asset" mean in Chapter 7?

You might be forced to sell any non-exempt assets, though several online sites claim that 96% of Chapter 7 filings are “no asset” cases, meaning there is not enough equity or value in the property for a trustee to sell it and pay off creditors.

What is the repayment plan for Chapter 7?

The courts will engage you in developing an equitable repayment plan – you must work with them and adhere to the plan that is agreed upon. Your repayment plan will be based on your income, total debt and the amount creditors would have otherwise received under Chapter 7.

Who is eligible for Chapter 13?

Any self-employed or unincorporated business is eligible for Chapter 13.

What documents are required to file for Chapter 13 bankruptcy?

Debtors are required to observe the following guidelines when filing for Chapter 13 Bankruptcy and must file the following with the court: Schedules of assets and liabilities. Schedule of current income and expenses. Schedule of executor contracts and unexpired leases. A statement of financial affairs.

How long does it take to file for bankruptcy?

Choosing this option means that any property you own can be seized and sold to settle your debts. This option is available to individuals as a consumer Chapter 7 bankruptcy as well as to businesses as business Chapter 7 bankruptcy. This process can take anywhere from 3-6 months. Filing for Chapter 7 bankruptcy online just got easier – our online bankruptcy filing software will save you many hours of time-consuming work.

Why do you file for bankruptcy?

The bottom line is: You are filing bankruptcy because you do not have the money to pay your debts.

How long do you have to get credit counseling before filing?

An individual must receive credit counseling within 180 days prior to filing. Partnerships and Corporations are not eligible. There are several other considerations that may be taken into account – for more information on these guidelines, the code in its entirety may be viewed here.

Can you forgive debts in Chapter 7?

Additionally, certain debts cannot be forgiven in Chapter 7 bankruptcy filing, such as taxes, child support, educational loans and alimony. A bankruptcy discharge does not relieve property liens. The debtor may be an individual, a partnership, or a corporation or other business entity.