What exactly is Chapter 7 Bankruptcy Law?
Federal law outlines a number of different kinds of bankruptcy.
Chapter 7 bankruptcy law is most often reserved for people or companies who are about to become bankrupt.
Filing for chapter 7 bankruptcy within the state of New York can provide immediate debt relief for many individuals or businesses due to financial turmoil.
However, bankruptcy is not without its drawbacks, which makes it important to have some basic information in order to make an informed decision.
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- Allmand Law
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Chapter 7 Bankruptcy Law How Does It Works
The first step to take in determining whether or not to file for chapter 7 bankruptcy is to contact an experienced bankruptcy lawyer.
Each state has its own unique bankruptcy laws.
This means that you must contact a qualified New York bankruptcy lawyer to determine if you qualify for Chapter seven bankruptcy protection.
An experienced bankruptcy lawyer will be able to determine which options are available to you based on your situation.
In some cases, the only option available to someone who is unable to repay their debts is filing for bankruptcy protection.
In other cases, there may be other options that a New York bankruptcy lawyer can explore with your creditors.
In order to determine whether or not you are eligible for chapter 7 bankruptcy protection in New York, you will need to contact a qualified bankruptcy attorney.
These lawyers will be familiar with the requirements and procedures of New York state bankruptcy laws.
After filing for protection, you will likely have to attend and pass an examination. If you fail the examination, you may not be able to file for chapter 7 bankruptcy protection.
You should not attempt to pass this exam without assistance, as failure to do so can result in a license suspension.
After passing the examination, if you meet the state's specific chapter 7 bankruptcy exemption requirements, you may be eligible for chapter 7 bankruptcy.
Some of the specific eligibility requirements include: not having any financial hardship that prevents you from continuing to repay your debts, having no dependent children, and not residing in a household of extreme financial distress.
A bankruptcy specialist will conduct the means test, which is essentially a mathematical formula used to determine if one is eligible for Chapter seven bankruptcy protection.
Filing with a trustee involves choosing a lender to cover your debts.
If you file with a private company or trust, the trustee will distribute funds to your creditors according to a pre-arranged plan.
If you choose a bank, the trustee will use the proceeds to pay off your creditors in a convenient way.
If you choose a credit union, the credit union may actually hire a bankruptcy attorney to work with you when filing.
Prior to filing, you should also discuss with your chapter 7 bankruptcy relief attorney what type of payment arrangements you would like to make.
For instance, you may choose to have a lump sum paid to you by April of the year.
If you do this, it is important to remember that the payment must be made on or before the date of your discharge.
This also pertains to an income or monthly amount. If you have an hourly wage, it is important to let your attorney know.
It is also important to meet other means test requirements to determine whether or not you qualify for chapter 7 bankruptcy.
These means test requirements are based on various factors, such as income, expenditures, assets, debts, etc.
You can visit Bankruptcy Lawyers for more information.
During your meeting with your attorney, they may inform you of ways to reduce the impact of a discharge on your life, including changing your lifestyle habits.
They may also tell you about what they consider as an acceptable lifestyle for someone who has filed for chapter 7 bankruptcy protection.
One thing that is very important to remember is that while your bankruptcy case might have an effect on your ability to retain certain licenses and jobs, these matters will ultimately be determined by the trustee and your state's attorney general.
While your bankruptcy is going on, you will not be allowed to touch the assets or accounts that the trustee has provided for you.
As soon as the chapter 7 bankruptcy trustee files the final order with the court, you will no longer have access to any of the accounts or assets.
For this reason, it is very important to notify your attorney that you are filing for Chapter 7 bankruptcy protection prior to making any decisions regarding any of your accounts or assets.
7 Things To Be Avoided Before Filing Bankruptcy
- Avoid the transfer of any property or money
- Avoid purchasing on credit if the item is not an emergency category
- Avoid paying to favour creditors or any others
- Avoid unusual transactions /deposit
- Also to avoid lawsuits
Because you'll want to avoid mistakes after filing your Chapter 7 case too, you'll also find tips for successfully navigating the bankruptcy process.
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