Consumer bankruptcy is the beginning and not the end!

According to the United States Courts, last year over 700,000 people filed for consumer (chapter 7) bankruptcy in the United States and that number is on the rise. With the cost of living steadily increase and salaries remaining stagnant, more and more individuals are turning to the law for help.

Frequently Asked Questions

 

How long will bankruptcy stay on my credit report?

A Chapter 7 bankruptcy will negatively impact your credit report for 7 years. This does not mean that you will not be eligible for a credit card or bank loan, but it will make it more difficult and your limits may be lower.


will I be able to get a credit card?

Bankruptcy is not the end but merely a beginning towards are more stable financial future. Many of our clients receive credit card offers in as little as 3 months after their bankruptcy is discharged. You can resume your life and work on repairing your credit and the best way to do so is to show that you have become a reliable consumer. Banks and credit card companies will always give you a second chance to redeem yourself, but will do so cautiously.


What kind of debt can I discharge?

Generally all consumer debt is dischargeable under chapter 7 bankruptcy; this includes but is not limited to.

  • Credit cards

  • Medical bills

  • Personal loans

There are however a few exceptions. Chapter 7 bankruptcy protection does not cover the following.

  • Student loans

  • taxes

  • Credit card debt incurred after you file

  • Child support & Alimony payments.

We strive to thoroughly review each petition and provide vast amounts of information during the initial consolation and life-cycle of the process. It is our belief that you must fully understand the ramification of your decisions from the beginning in order to have a positive outcome for both attorney and client.


The process

The typical lifecycle of the bankruptcy process generally takes 4-5 months (absent any complications).

  1. After the individual meeting with one of our attorneys and providing all required information, the chapter 7 bankruptcy petition may be filed. The filing triggers an automatic stay on any and all litigation and collection efforts; this means that no creditor may contact you before the bankruptcy process is complete.

  2. A meeting of the creditors commonly referred to as a 341B hearing is held approximately 30 days after the petition filing. This meeting presents an opportunity for all of your creditors to appear in court and make the case for why your bankruptcy should not be granted. We always personally attend all hearing with our clients and make sure the are comfortable with the process and have a fully understanding of what is expected of them.

  3. Once the hearing is complete the trustee (representative assigned by the court to oversee the bankruptcy process) forwards his / her findings to the judge who then has 60 days to make a decision.

The cost

Legal fees vary based on each firms individual assessment of the case and the work product, but the general fees are as follows.

  • Legal Fees $N/A we generally like to sit down with our clients to determine the complexity of their case and work out a pay structure and plan they are comfortable with. We understand that sensitive financial nature of personal bankruptcy and do everything we can to reach an amicable and mutually beneficial agreement.

  • Filing fee $335.00

  • Credit report pull ($0 - $20) In order to make sure that all of your creditors are listed on the chapter 7 bankruptcy petition we must be certain of who they are. We generally like to pull the credit report and sit down with our clients so they have a clear understanding of what creditors are listed and be certain that none are left out.

  • Financial Management course $15-25 (this is an online or phone class required by the state of New York) this course must be completed prior to the 341B hearing and typically takes 1-2 hours.

  • Debtor credit counseling course $15-25 (this class much like the financial management course is required by the state of New York) this class must be completed after the 341B hearing