Queens NY Bankruptcy Lawyer


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


WHAT CHAPTER BANKRUPTCY SHOULD I FILE?

Whether you’ve made the decision to file Bankruptcy or are considering filing Bankruptcy we recommend that you schedule a FREE CONSULTATION to meet with our office so that we may conduct an analysis and help you decide which chapter of Bankruptcy is not only right for you, but would benefit you most.

CHAPTER 7 BANKRUPTCY
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 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 money from you.

Once you file a Bankruptcy a “Bankruptcy Estate” is created by operation of law. The “Bankruptcy Estate” is made up of all your assets.

From this point the court will schedule what is known as a Bankruptcy Section 341 meeting in which you will be interviewed by an assigned Bankruptcy trustee. The Bankruptcy Section 341 meeting consists of a meeting between you, the Chapter 7 Bankruptcy trustee and your attorney. The purpose of the meeting is for you to give testimony under oath that what is in your petition is true and correct.

Additionally, the Bankruptcy Trustee will review your petition to look for non-exempt assets. In most Chapter 7 Bankruptcy 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 your meeting is closed (most meetings are closed after one appearance) the Chapter 7 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 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.

CHAPTER 13 BANKRUPTCY

Chapter 13 Bankruptcy is usually used by debtors who have assets above and beyond the allowable exemptions. Also, a debtor may file a Chapter 13 Bankruptcy because he has income over and above the allowable NYS Median Income for the size of the debtor’s household.

In a Chapter 13 Bankruptcy a similar petition to that of a Chapter 7 Bankruptcy is prepared, filed with the court and the automatic stay is created. However in a Chapter 13 Bankruptcy a “Plan” is filed in which it proposes to pay a certain amount to creditors on a monthly basis. This amount is determined by the amount of debt and kind of debt the debtor has and the debtor’s available monthly disposable income.

These payments are made as monthly payments paid to the Chapter 13 Bankruptcy Trustee, who then distributes them to creditors on your behalf.

Chapter 13 Bankruptcy Plans can last as long as 3-5 years depending on the amount of debt and the amount of disposable income.


Castro Law, PLLC

82-11 37th Avenue, Suite 603

Jackson Heights, NY 11372

Tel: 718.533.8090




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