Across the country, many individuals, families, and small businesses are struggling with seemingly insurmountable debt. Financial anxiety can cast a shadow on your life as you wonder whether you will ever find a way out of this situation. Meanwhile, additional credit card debt or other debts continue to grow, making it nearly impossible to remain hopeful about the future. However, it’s essential to recognize that bankruptcy offers a path forward and a way for you to regain control of your finances. While the stigma surrounding bankruptcy persists in some circles, there is nothing embarrassing about this process. Chapter 7 bankruptcy allows individuals to discharge most types of debt and take an active role in getting their economic situation under control. There are several advantages to enlisting the guidance of an experienced and compassionate Auburn bankruptcy attorney to ensure the process for a Chapter 7 bankruptcy moves forward smoothly and successfully.
Understanding the Chapter 7 Bankruptcy Filing Process
Many people struggling with debt already feel overwhelmed and stressed by the financial anxiety they experience daily. The prospect of exploring the bankruptcy process can feel intimidating, especially when you are not familiar with how the process works. Reaching out to a seasoned attorney is the best way to ensure you understand your options. Your lawyer will work with you to determine the bankruptcy filing that best suits your situation. They will guide you through each step of the process, answering your questions and addressing your concerns as soon as they arise. If you and your attorney determine that Chapter 7 bankruptcy is the most appropriate for your situation, you can start taking the necessary steps to regain control of your financial future.
A Brief Overview of Chapter 7 Bankruptcy in New York
Chapter 7 bankruptcy enables a court-appointed trustee to review your bankruptcy filing. One part of the bankruptcy filing is the “means test” (takes your last 6 months of income and compares that income to the median income in NYS based on your household size). To qualify for a Chapter 7, you’ll need to pass the “means test”. Essentially, you’ll need to demonstrate that your current monthly income falls below a certain level (i.e., the state median monthly income). If you qualify for Chapter 7 relief, you may file a petition with the bankruptcy court and submit a considerable amount of completed paperwork listing your assets and liabilities, your current income and expenditures, an overview of your financial situation, and other relevant information. It’s important to note that you will be able to keep exempt property, like household appliances, your primary car (up to a certain value), pensions, a portion of the equity in your home, and more. Once you’ve completed the other steps of the Chapter 7 bankruptcy process, such as attending a mandatory online credit counseling session and attending a court hearing, the court will discharge (wipe away) your remaining debt. The process tends to move quickly, often concluding within three months or so.
Supporting You During the Chapter 7 Filing Process
Many people find the idea of completing and filing a Chapter 7 bankruptcy petition to be intimidating and confusing. Your lawyer can help you get and stay motivated to move through the process. There is a significant amount of paperwork that your attorney will fill out for you, ensuring it’s accurate and complete. The last thing you want is to submit a petition that’s incomplete or inaccurate, compelling you to wade through this time-consuming process once more. Working with a trusted Auburn lawyer ensures that your Chapter 7 petition is completed and filed in a timely manner. Additionally, they will help you prepare for the next phases of the process, such as rebuilding your credit after the bankruptcy is filed.
Legal Guidance Full of Care and Compassion
Many people struggling with debt feel embarrassed or even ashamed of their situation. These complicated feelings may prevent them from seeking the legal support they need. However, most bankruptcy lawyers understand how paralyzing debt can be, and they will not judge you or blame you for the situation you’ve found yourself in. While their primary role is to help you navigate the legal procedure of bankruptcy, they also provide the support, care, and compassion you deserve during this difficult time. Your attorney will provide you with the information and guidance you need to face your future with greater confidence.