Thinking of filing for bankruptcy in Central New York? Get to know the debts you can discharge using Chapter 7 bankruptcy.
The topic of bankruptcy is often taboo in most circles, and central New York households are no exception. But it truly can be an excellent tool when you want to erase substantial debt. However, before filing for bankruptcy, you have the difficult task of deciding which type of bankruptcy suits your needs.
In part because of the stigma around it, too few families or business owners know their bankruptcy options, or realise that distinct types of debt are treated differently in each type of bankruptcy.
Working with an experienced bankruptcy lawyer can help you identify the type of bankruptcy that will best serve your needs. At the Hobaica Law Office in Central New York, we have decades of experience helping clients just like you successfully file for bankruptcy.
During this time, the most common Chapter of bankruptcy we have helped folks with is Chapter 7, though other options like 11 or 13 can be preferable depending on your circumstances.
The key factor to keep in mind when considering Chapter 7 bankruptcy is that it works only on unsecured debt. This means that only debt that is not backed by collateral (such as a house or car) can be successfully discharged under Chapter 7 rules.
That said, there is a wide variety of debts that qualify, most of which will usually be entirely gone by the end of Chapter 7 bankruptcy, including:
And that is only a partial list of the debts you can discharge using Chapter 7 bankruptcy. The only way to be sure if your debts qualify is to consult with your Chapter 7 bankruptcy lawyer for a more comprehensive review.
While typically filed by individuals, small businesses looking to close down can also use Chapter 7 bankruptcy to liquidate their assets and pay off their creditors with the help of a small business bankruptcy attorney.
Another crucial aspect to consider with Chapter 7 bankruptcy is the types of debt that you cannot discharge. When you get the discharge order after successfully filing for Chapter 7 bankruptcy, it will not list the debt you wiped out. However, it will list the debts you will remain responsible for paying, which may include the following:
When filing a Chapter 7 bankruptcy, while many debts are discharged, those creditors will get a small amount of what they are owed, as you are forced to sell off assets. However, you still need to keep certain essentials to help you remain productive in society, which is why Chapter 7’s rules allow considerable exemptions at both the federal and state levels.
For example, some of the assets that might be exempt in a Central New York Chapter 7 filing include the following:
If you are unsure what you will be able to keep while still getting rid of your debts, you should contact an experienced Chapter 7 bankruptcy lawyer to go over your assets. If it turns out you would lose too much and would rather pay off some of the debt than lose those assets, Chapter 13 might be a better bankruptcy option for you.
While we understand the anguish and stigma surrounding bankruptcy, it may be the only way to lay down your debt burden and start working towards a new financial future.
If you are thinking of filing for bankruptcy and starting over, or are unsure how you could keep going with your debts, filing for Chapter 7 bankruptcy with the help of a skilled attorney can help you move forward.
Whether you’re filing Chapter 7 bankruptcy for yourself or for your small business, the Hobaica Law Office is here to assist. You can contact us at (315) 201-5653 to set up a discreet consultation to go over your situation and options.
