It is very common for people in New York to find themselves struggling financially. This often occurs after an unexpected event that they were financially unprepared for, such as a medical issue, legal matter, or loss of income. When the financial challenges become too much to bear and it seems that there is no way out, bankruptcy may be the best way to help you achieve a fresh start. There are two types of consumer bankruptcy: chapter 7 and chapter 13.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a great way for consumers to take control of their finances when they need help. In chapter 7 bankruptcy, a wide variety of your debts can be discharged. Some of these debts can include credit card debt, personal debt, medical bills, auto payments, foreclosures, and more. It is important to note, however, that student loans, taxes, alimony, child support, restitution, and some other debts are considered non-dischargeable. Some people are concerned about what they can and cannot get rid of. There is often a certain amount of personal property that is protected in a Chapter 7 bankruptcy under a Homestead Exemption, an automobile exemption, and up to $10,000 worth of household goods, furniture, and clothing. Additionally, you can keep any televisions and wedding rings.
Who is eligible for Chapter 7?
Not everyone is eligible for chapter 7 bankruptcy. To find out, you must take the bankruptcy means test, which determines whether your family income is less than the average family income in the county where you live. If so, you can file for chapter 7. If your income is greater than the average family income in your county, you will have to file for a chapter 13 bankruptcy instead.
For example, if you live in Manhattan (New York County), the US Census Bureau states that the median household income for 2017 was $79,781. If your household income falls below this, you may be eligible for chapter 7. Of course, it is important that you speak with an experienced bankruptcy attorney who can assess your situation and walk you through your options. Zimmet Law Group, P.C. is happy to help you find the financial peace you are looking for. Contact our firm today.
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.