Chapter 7 Bankruptcy

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Chapter 7 Bankruptcy in Ulster, Dutchess, Greene, Orange, Columbia, Sullivan, and Putnam Counties

When you have accumulated tens of thousands of dollars of debt and aren’t sure which way to turn or how you will ever escape the deep financial hole you’re in, filing for bankruptcy may be an option. For individuals, there are two common types of bankruptcy: Chapter 13 and Chapter 7. A Chapter 7 bankruptcy is for individuals who pass the means test. Read more below about Chapter 7 bankruptcy filings, and call a Kingston bankruptcy attorney directly for a free consultation about your case.

Who Can File for Chapter 7 Bankruptcy?

As mentioned, only those debtors who pass a means test can file for a Chapter 7 bankruptcy. If a person has too many “means,” — i.e., income and assets — then they will need to file a Chapter 13 bankruptcy, which will require the debtor to enter into a repayment plan with creditors that will last for between three and five years before debts are discharged.

Usually, if a person makes less than the median income in their state, they pass the means test. If you make more than the median income, you may still qualify for a Chapter 7 bankruptcy if you don’t have enough disposable income to repay a portion of your debts.

How a Chapter 7 Bankruptcy Works

The biggest disadvantage of filing for bankruptcy is that bankruptcy will significantly impair one’s credit score, making it very difficult to secure a loan or a line of credit, buy a home, get approved on a rental application, or even get a job, for years to come. One of the advantages of filing for a Chapter 13 rather than a Chapter 7, though, is that in a Chapter 13 bankruptcy, the bankruptcy filing will only remain on one’s credit report for seven years; it remains for 10 years following a Chapter 7 bankruptcy.

Another benefit of filing for a Chapter 13 bankruptcy is that usually one can keep more of their assets, such as a home.

Is Bankruptcy Right for Me?

It can be difficult to know whether bankruptcy is the right avenue. If you are unsure, you should speak with a financial professional, an attorney, or both. Usually, bankruptcy is considered to be a last-resort option and one that you should pursue only after exhausting other debt-relief methods, such as debt consolidation and creditor negotiation.

Call Our Kingston Law Firm Today

Filing for bankruptcy is an intimidating process, and one that can be legally complex and overwhelming. As you navigate the bankruptcy process in Kingston, consider working with a skilled Kingston bankruptcy lawyer. An attorney can help you to understand your rights and options, prepare your case, represent you in bankruptcy court, and more. Call our Kingston bankruptcy law firm today for the support and guidance you need.

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