Queens NY Bankruptcy Lawyer


Experienced Bankruptcy Attorney Serving Queens, Brooklyn, Manhattan, Bronx, Nassau and Suffolk


HOW DOES A CHAPTER 7 BANKRUPTCY WORK?

Your attorney will prepare your Bankruptcy petition listing your assets, income, debts and liabilities which are then filed with the Bankruptcy court located in your jurisdiction. Once the Bankruptcy case is filed, the court issues a protection to the filer known as the “Automatic Stay”.

The “Automatic Stay” immediately prevents any creditors from attempting to collect on any claims against you pending the outcome of the Bankruptcy, with a very limited exceptions (i.e. child support). The Bankruptcy court notifies your creditors that you have filed a Bankruptcy and by court order your creditors must stop trying to collect any claims against you. Once you file a Bankruptcy a “Bankruptcy Estate” is created by operation of law. The “Bankruptcy Estate consists of all your assets.

From this point, the court will schedule what is known as a Section 341 meeting in which you will be interviewed by an assigned Bankruptcy trustee. The Section 341 Bankruptcy meeting consists of a meeting between you, the Bankruptcy trustee and your attorney. The purpose of the meeting is for you to give testimony under oath that what is in your Bankruptcy petition is true and correct.

Additionally, the Bankruptcy Trustee will review your petition to look for non-exempt assets. In most Chapter 7 cases your “Bankruptcy Estate” will only contain “exempt” property, meaning that there will be nothing for the Bankruptcy Trustee to take from you.

Also, your creditors have the right to appear at the Section 341 meeting although a vast majority of the time they do not.

After you meeting is closed (most meetings are closed after one appearance) the Bankruptcy Trustee has 30 days in which to object to your exemptions. If there is no objection your assets are yours and no longer part of the Bankruptcy estate.

More importantly, creditors have 60 days to object to the dischargability of your debts. If they fail to object the debts will be discharged (there are some exceptions but creditors only object a very small percentage of the time).

Finally, once the 60 day time period to object has expired, the Bankruptcy court will grant you a discharge of debt. A Bankruptcy discharge is essentially a court order determining that the debts are forgiven, bars creditors from attempting to collect on them and relieves you of your obligation to ever pay them. A copy of the discharge is mailed to you and your attorney by the Bankruptcy court.



Castro Law, PLLC

82-11 37th Avenue, Suite 603

Jackson Heights, NY 11372

Tel: 718.533.8090




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