A Complete Guide to Understanding Chapter 7 Bankruptcy for Queens Residents

When you live in Queens and feel buried under debt, it can be hard to see a better future. Many people facing unpaid credit card bills, medical expenses, or other kinds of financial trouble begin to feel that there is no relief in sight.

Chapter 7 bankruptcy can be that chance to start over and find a way to move on with your life. If you are thinking about filing, you should speak with our Queens bankruptcy lawyers to learn more about the process. Getting information can allow you to make the best choice for your life and your goals.

If you are ready to learn more, call Poltielov & Habib, LLP, for a consultation. Our team will explain how Chapter 7 works and what you should know before taking the next step. If you choose to work with us, we will do everything we can to ensure that your case goes as smoothly as possible and you obtain every benefit associated with filing for Chapter 7 bankruptcy.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a type of bankruptcy that can clear or discharge many kinds of unsecured debts. It is often called a liquidation bankruptcy, but that does not mean that you will always lose your property. In many cases, people who file do not give up their homes or their cars as long as those items are protected by certain exemptions and are handled properly. The goal is not to leave you with nothing. Instead, it is meant to give you a fresh start. This is done by wiping out your debt and allowing you to breathe again.

Examples of the kinds of debts that you can discharge in Chapter 7 bankruptcy include:

• Credit card debt
• Medical bills
• Past-due rent
• Utility bills
• Personal loans
• Collection accounts
• Certain court judgments

People who file Chapter 7 often do so because their debts are too large for them to pay back. They might have lost income, faced large medical bills, or dealt with unexpected costs that piled up beyond their control. When you file, the court places an automatic stay on most collection efforts. This means that collection calls, wage garnishments, and other aggressive efforts to make you pay stop right away. This provides some breathing room and a chance to figure out where you stand.

Why Consider Chapter 7 Bankruptcy?

Many people in Queens consider Chapter 7 because they feel stuck. They may be facing credit card debts that never seem to get smaller, even if they make payments. They may be facing unpaid medical bills after an illness or injury. Their income might not be enough to keep up with all their debts. In these situations, filing Chapter 7 can help clear the path forward. It can erase many unsecured debts, like credit card balances or medical bills, and provide a chance to rebuild credit over time.

Is Chapter 7 the Right Choice, or Should I Consider Chapter 13?

Deciding between Chapter 7 and Chapter 13 can be tough. Chapter 7 clears debts quickly, often within a few months. Chapter 13 sets up a payment plan that lasts three to five years. Chapter 7 is often chosen by people who do not have much disposable income and need a quick discharge. Chapter 13 is chosen by those who may have higher income, want to protect assets that would not be exempt in Chapter 7, or need time to catch up on a mortgage or car loan.

Speak with Our Queens Bankruptcy Lawyers Today

Call our bankruptcy attorneys in Queens at (718) 520-0085 or contact us online today to schedule a free case evaluation.