Chapter 7 Bankruptcy

Chapter 7 of the U.S. Bankruptcy Code provides for elimination of unsecured debt for individuals and couples who qualify. In New York state, an individual can earn approximately $48,000 per year and still qualify for Chapter 7 bankruptcy (as of June 2011). This number varies by county and is subject to change and a Means Test which determines bankruptcy eligibility when considering household size, marital status, and other factors. When filing Chapter 7, you are also allowed to keep up to $150,000.00 worth of equity in a homestead and automobiles you own outright with an auction value of $4,000.00 or less. You can also reconfirm existing secured debts like car payments for automobiles and home mortgages, but you will have to continue making payments on these items. Alternatively, you have the option to surrender automobiles and your home and be forgiven the debt. If you are considering filing for Chapter 7, contact our office to speak with an attorney or a member of our staff to see if you qualify and discuss your options. If you do not qualify for Chapter 7, a Chapter 13 bankruptcy filing may provide you with the debt protection you seek.

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