Understanding Bankruptcy in the New York Metropolitan Area
At Anderson, Bowman, Wallshein PLLC, we see bankruptcy as a chance for people to start anew. Legally speaking, it is a court proceeding that offers individuals or businesses an opportunity to eliminate or restructure their debts. This process starts after you file a bankruptcy petition, which is then reviewed by a court. If the court finds that the debt is valid and meets certain criteria, it may discharge or restructure your debt, allowing you to move forward with a clean financial slate.
Before filing, you should determine that bankruptcy is truly the best option for your situation. Although it could benefit you in many ways, you should not take bankruptcy lightly, and you ought not to proceed without consulting a bankruptcy attorney in Queens first. Should you turn to Anderson, Bowman, Wallshein PLLC, we can help you better understand bankruptcy, such as determining which type to file for and how to proceed. Along your journey, we can provide valuable counsel and advocacy, so you can avoid missteps and have your rights protected.
The complexities of bankruptcy law in New York are profound, often involving intricate rules and regulations unique to the state. Understanding these nuances is crucial for navigating your bankruptcy effectively. Our team is adept at explaining the intricacies of New York's bankruptcy code, ensuring that you make informed decisions every step of the way. Whether you're concerned about asset protection, the consequences of filing on your credit rating, or the timing of your petition, we have the knowledge to guide you through potential challenges and various outcomes you might face.
To learn more about how our Queens bankruptcy attorneys could serve you or your business, call (929) 590-5053 or contact us online. Free consultations are available.
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While there are several types of bankruptcy, two of the most common are Chapter 7 and Chapter 13. Below, we explore the key aspects you ought to know about them:
Chapter 7 Bankruptcy
In our experience, this is the most common type of bankruptcy. In this proceeding, a trustee will liquidate certain property and assets to repay debt. Once you have completed the process, most qualifying debts get discharged.
We must note that some types of debt cannot be discharged, such as student loans and child support payments. Additionally, to file for Chapter 7 bankruptcy, you must pass New York’s means test. It is a way of determining whether you have enough disposable income to pay off your debt. If you do not pass the means test, Chapter 13 bankruptcy may be a better option.
Filing for Chapter 7 bankruptcy in New York requires careful preparation and consideration. The means test determines eligibility by comparing your average monthly income over the past six months to the median income of a similar household in New York. If your income is below the median, you might qualify for Chapter 7. Otherwise, further calculations involving allowed expenses and debts are conducted to evaluate your eligibility. Our attorneys provide expert guidance in preparing for the means test, collecting necessary documents, and understanding the asset exemptions that can protect your property from liquidation. For experienced guidance, connect with a skilled bankruptcy lawyer in Queens from Anderson, Bowman, Wallshein PLLC.
Chapter 13 Bankruptcy
This form of bankruptcy allows you to restructure your debts and create a repayment plan over three to five years. It is a good option for those who do not qualify for Chapter 7 or have significant assets they wish to protect from liquidation, such as a home or car. Under this chapter, you keep your property while making regular payments to creditors through a court-appointed trustee.
Chapter 13 bankruptcy also offers the possibility of modifying the terms of your repayment plan if your financial situation changes during the repayment period. This flexibility is particularly beneficial for those expecting fluctuations in income, such as self-employed individuals or those with variable monthly earnings. We can guide you in crafting a feasible and sustainable repayment plan that aligns with your long-term financial goals and advises you on the legal obligations involved in maintaining this arrangement.
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Which Type of Bankruptcy Is Appropriate for Businesses in Queens?
Chapter 7 can help small businesses discharge their debts and close operations. For larger companies or enterprises that want to continue, there is another option: Chapter 11. This type of bankruptcy allows businesses to restructure their debts and sustain operations. Generally, it is the most appropriate choice for companies that have a chance of regaining financial viability but need relief from debt.
Understanding the distinct nature of Chapter 11 bankruptcy is crucial for businesses considering this option. It involves the creation of a detailed reorganization plan aimed at keeping the business operational while paying back creditors over time. This plan is subject to approval by the court and the involved creditors. Our expertise facilitates the drafting of such plans, negotiating with creditors, and presenting your case in court to ensure all parties understand the viability and benefits of the proposed reorganization.
Chapter 11 provides businesses with the unique advantage of potentially securing new financing, renegotiating existing leases, and modifying unfavorable contracts while under court protection. Seeking legal counsel when contemplating Chapter 11 is vital as it can fundamentally change the trajectory of your business's financial health and its ability to recover successfully.
The Benefits of Bankruptcy for Residents in Queens
Beyond discharging, lessening, or restructuring debt, bankruptcy can provide numerous benefits to individuals, families, and businesses alike.
These include the following:
Stopping Creditor Harassment: Once you file, creditors must halt collection efforts. This means no more phone calls, letters, or lawsuits.
Preventing Foreclosure & Repossession: Filing for bankruptcy can stop foreclosure or prevent creditors from repossessing property. In some cases, it may even allow you to catch up on missed payments through a repayment plan.
Ending Wage Garnishment: Bankruptcy can also stop wage garnishment, which is when creditors take a portion of your paycheck to repay debt.
Providing Time to Reorganize Your Finances: With Chapter 13 bankruptcy, you have three to five years to catch up on missed payments and reorganize your finances. This can allow you to get back on track and avoid future financial issues.
Protecting Certain Assets from Liquidation: Depending on the type of bankruptcy, you may be able to protect assets from being sold off by creditors.
Additionally, declaring bankruptcy can serve as a strategic financial reset, allowing for a re-evaluation of budgeting practices and financial priorities. For many, this process brings invaluable clarity and relief, offering a structured environment to address financial issues systematically. Furthermore, the automatic stay provided by a bankruptcy filing can give individuals and businesses the breathing space needed to explore alternative debt solutions, plan for future financial security, and work towards re-establishing creditworthiness over time. Our firm works to ensure clients benefit fully from these provisions, aligning their bankruptcy strategy with their long-term financial aspirations.
Questions About Bankruptcy in New York? Consult Our Bankruptcy Lawyer in Queens
Anderson, Bowman, Wallshein PLLC is a full-service bankruptcy law firm with a long track record of helping people in Long Island, Queens, and other parts of the New York metropolitan area find relief. If you are thinking of filing, put your confidence in us. Our bankruptcy attorneys in Queens can carefully assess your situation and provide honest, straightforward advice about your options for restructuring or discharging debt through bankruptcy. Then, we can guide you through the legal processes, looking out for your rights and offering actionable insights along the way. Our team understands the stresses you may be experiencing and is committed to providing the compassionate and personalized legal services you deserve.
Our knowledgeable bankruptcy attorney in Queens is prepared to guide you through your case. Contact us via online form or call (929) 590-5053 to book your no-charge consultation without delay.
Frequently Asked Questions About Bankruptcy
What Is the Automatic Stay in Bankruptcy?
The automatic stay is one of the most powerful features of the bankruptcy process. It acts as a legal injunction that stops most lawsuits, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed. In Queens, understanding how the automatic stay works is crucial for those seeking immediate relief from creditor actions. This protection is temporary and lasts throughout your bankruptcy process, except in cases where a creditor requests relief from the stay and the court grants it. The stay provides valuable time to reorganize debts without interference, and at Anderson, Bowman, Wallshein PLLC, we can help ensure this protection works to your advantage as part of your overall financial strategy.
How Does Bankruptcy Affect Credit Scores?
Bankruptcy can initially lower your credit score significantly; however, it also offers an opportunity to rebuild credit more efficiently than with prolonged unresolved debt. In Queens, where financial standing is crucial for obtaining housing or starting a business, understanding this trade-off is essential. Post-bankruptcy, debtors can often start improving their credit scores by responsibly managing new credit lines, paying bills on time, and maintaining low balances. Our tailored guidance supports clients in navigating post-bankruptcy credit management, helping them access tools and resources to rebuild their credit profile responsibly.
Can I Keep My Home and Car if I File for Bankruptcy?
One of the common concerns for those considering bankruptcy in Queens is whether they can retain essential assets like their home or car. In Chapter 13 bankruptcy, debtors can often keep their property, as debts are reorganized into a manageable payment plan. In Chapter 7, exemptions play a critical role, potentially allowing you to retain certain assets depending on their value. New York offers specific exemptions that can protect equity in a primary residence and personal vehicles. The team at Anderson, Bowman, Wallshein PLLC works closely with you to maximize these protections, ensuring you can maintain the foundation of your daily life while addressing your financial concerns.
What Happens to My Debt After Bankruptcy?
Post-bankruptcy, most unsecured debts, such as credit card balances and medical bills, may be discharged, meaning you are no longer legally obligated to pay them. However, some debts, like student loans and alimony, typically remain unless specific conditions are met. In Queens, successful debt discharge can provide a much-needed fresh start for many. We ensure that clients understand which debts can be discharged and offer strategies for dealing with non-dischargeable debts moving forward. Our comprehensive approach helps clarify your financial future with a solid plan for sustainable debt management. If you're struggling with debt, do not be afraid to reach out for help – a bankruptcy attorney in Queens from Anderson, Bowman, Wallshein PLLC is ready to help you.
Speak with one of our Queens, NY bankruptcy lawyers in a free consultation. Call (929) 590-5053 or get in touch online to schedule yours.
