#NewYorkBankruptcy

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How Long Does a Chapter 7 Bankruptcy Take?

Many people who come to seek my help are afraid to file bankruptcy. They assume that once they file bankruptcy their life is over. This is simply not true. Filing for bankruptcy can help you get back on your feet and start over. You will be able to get credit again. If you are concerned about how the process works give Karra L. Kingston Esq. a call to better understand the process and your options.

How Long Does Chapter 7 Bankruptcy Take?

  A Chapter 7 can be filed immediately once you have given us all of your paperwork to create your Chapter 7 bankruptcy petition. When you meet with us our lawyers will provide you with a list of documents that you will have to gather. Once you have gathered all of the requested information we will create your petition. Normally, a petition takes about a few days to a week to complete. Once we have completed your petition we will have you review it to make sure everything is in order. During this time you will also have to complete an online counseling course before we file. Once you have reviewed your petition you will sign it. As soon as the petition is signed and no corrections have to be made, we will file your Chapter 7 bankruptcy petition with the Court.As soon as the Clerk of Courts receives your bankruptcy petition, you will be assigned a case number, a bankruptcy trustee and a court date. If you have no property/ assets most Chapter 7 bankruptcy cases typically take anywhere from three to six months to be completed. If on the other hand you have assets it could take longer. For example , if you have a foreclosure pending and want to try to get a loan modification through the Bankruptcy Court it could take four months or longer. Our office makes sure that the documents the trustee requests are sent before you go to Court. This allows for a smoother process. If we get to Court and the trustee asks for more documents this could also extend your Chapter 7 bankruptcy case timeline. What is a Chapter 7 Bankruptcy   A Chapter 7 bankruptcy is considered the liquidation chapter of bankruptcy. This is because the Chapter 7 bankruptcy trustee can sell your property in order to pay your creditors back. A good bankruptcy lawyer will make sure that you will not lose any property. Many people don't realize that their are exemptions that protect your assets and  allow you to keep your property when you file a Chapter 7 bankruptcy. A bankruptcy lawyer knows what exemptions to use so you can still file bankruptcy and not lose anything! What are The Bankruptcy Exemptions   There are certain Federal and State exemptions that allow you to keep certain property. New York and New Jersey have different state exemptions. It is important to know when you should use the Federal exemptions vs the State exemptions. Speaking with a bankruptcy lawyer is the best way to ensure your property is safe.  Some exemptions that allow debtors filing a Chapter 7 bankruptcy to keep their property are for: Vehicles, clothing, retirement, tools, personal property, pensions, jewelry, health aid, life insurance, child support , alimony, retirement benefits, pensions etc. Do I Need an Attorney a Bankruptcy Attorney to File a Chapter 7 Bankruptcy? You are not required to hire a bankruptcy attorney to help you file bankruptcy. However, it may be in your best interest to hire one. Exemptions are complicated and hiring an attorney can make the difference between losing your property and protecting it. A Chapter 7 bankruptcy attorney can also prepare you for the types of questions that will be asked in Court and ensure that the proper paperwork is filed prior to your hearing. If you are worried about paying for a bankruptcy attorney many law firms allow payment plans and will help you. Our office works with each of our client's to make sure they are able to file a Chapter 7 bankruptcy without worrying! Read the full article

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Will Filing a Chapter 7 Bankruptcy Lower My Credit Score?

Will Filing a Chapter 7 Bankruptcy Lower My Credit Score?

Many people do not want to file a Chapter 7 bankruptcy because they are afraid that it will lower their credit score. Debt settlement and debt consolidation companies lure people in by providing false  information. Debt settlement companies tell potential clients that their credit will be ruined if they file a Chapter 7 bankruptcy.  This is false. Many people who have low credit scores often see their scores go up after filing a Chapter 7 bankruptcy. These same people will also be given lines of credit within the next few months after obtaining a Chapter 7 bankruptcy discharge. How Bankruptcy Can Help You Rebuild Your Credit Studies have shown that filing a Chapter 7 bankruptcy can help repair your credit. One year after filing for bankruptcy, people who file bankruptcy are able to open up more credit accounts than those who choose not to file for bankruptcy. The majority of people who file for bankruptcy are given new lines of credit to help rebuild their credit score. Many people who do not file for bankruptcy and opt into a debt settlement program are usually stuck in a repayment plan for years. During this time their credit becomes worse and creditors are unlikely to extend new credit. Statistics show that within one quarter of filing for bankruptcy, the credit scores of people who go bankrupt improve by an average of 80 points over people in the same situation who do not file. People who file bankruptcy are also at an advantage compared to those who choose not to because they can begin saving their money. How Does Bankruptcy Help Improve My Credit Score? Many people do not understand how filing for bankruptcy can increase their credit score. Filing a Chapter 7 bankruptcy allows your debt to be wiped out. With no debt creditors are more likely to extend credit because they are more likely to be paid back. Lets look at an example: John owes $50,000 in credit card debt. John files a Chapter 7 bankruptcy and gets his debt eliminated. He applies for a credit card and the credit card company extends him credit because he has no debt. On the other hand, Frank has $50,000 of debt. Frank has medical bills, a repossession and 6 credit cards he owes. He decides he does not want to file a Chapter 7 bankruptcy. Instead, Frank wants to sign up with a debt settlement or  debt consolidation company. After Frank signs up with a company he still has $50,000 dollars of debt. Frank will be in a repayment plan for the next few years. Creditors do not want to extend Frank credit because he has a high amount of debt and they think they will not get paid back. Another reason that creditors will extend credit to you if you file for bankruptcy is because creditors know that you can only file a Chapter 7 bankruptcy every eight years. This means that if you do not pay them back you have no recourse to completely eliminate your debt. Creditors don't like to give loans to people who have high loans and low credit because they are afraid they will file for bankruptcy. People who opt not to file for bankruptcy still have high loans, low credit and can file bankruptcy to wipe out their debt. New York and New Jersey Bankruptcy Lawyer Karra L. Kingston Esq. Karra L. Kingston Esq. has helped numerous people facing financial struggles eliminate their debt. She has helped people who have faced garnishments, repossessions, foreclosures and more. If you are being harassed by a creditor call Karra L. Kingston Esq. to speak with an experienced bankruptcy lawyer. A bankruptcy lawyer can help you decide if bankruptcy is the right decision for you. Karra L. Kingston Esq. has offices all over New York and New Jersey and can even travel to you at no extra cost if you can't travel to one of their offices. Read the full article

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Cost of a New York Bankruptcy Attorney

Cost of a New York  Bankruptcy Attorney

The cost of a New York Bankruptcy attorney  usually ranges anywhere from $1500 and up. Although, the cost of  a New York bankruptcy attorney  may seem high, there  are many  reasons to hire  a bankruptcy attorney if you plan to go bankrupt.

Qualifying for a New York Bankruptcy

First, bankruptcy attorneys in New York are usually experienced to handle these types of cases. Bankruptcy attorneys are professionals that have studied and understand the law. Bankruptcy law can be quite complicated, especially if you own assets. Not everyone can qualify for a Chapter 7 bankruptcy. If you do not pass the New York State Means Test, or you have too many assets then you can not qualify for a Chapter 7 bankruptcy in New York. If you file a Chapter 7 bankruptcy and do not qualify the trustee can sell your assets to pay your creditors or convert your case to a Chapter 13. In a Chapter 13 bankruptcy a payment plan will be set up to pay back your creditors over a certain period of time.

Preparing for Bankruptcy Court

A New York bankruptcy lawyer, can prepare you for Bankruptcy Court. When you file bankruptcy, you have to attend a meeting of creditors. During that meeting of creditors a trustee will question you regarding the petition you submitted. New York bankruptcy attorneys usually know the types of questions that you will be asked in Court and can prepare you. Many times New York bankruptcy lawyers appear in front of the same trustees and are familiar with the types of questions they will ask. Further, if you find that some of the questions the trustee asked were confusing, your bankruptcy attorney can help you understand the question being asked. There is also a large amount of paperwork that must be prepared before your bankruptcy hearing. If you have never filed a bankruptcy petition before it can be confusing. There are certain exemptions in New York that can be used to exempt some of your property. This means that even if you do own assets you still may be able to qualify. A New York bankruptcy lawyer knows the exemptions in New York in order to ensure that your property is safe. Further, the trustee will request a list of documents before the hearing. If you hire a bankruptcy lawyer they will be able to send the requested documents promptly for you. It is important to note that leaving things out of a bankruptcy petition (even by accident) can be grounds for committing a felony. If you lie or omit things on your bankruptcy petition it can be deemed as fraud or abuse and you could face possible jail time. Take for instance Real Housewife of New Jersey, Teresa and Joe Giudice who failed to list certain assets in their petition. Both were charged with a felony and sentenced to prison time. A New York bankruptcy lawyer can to the best of their ability, ask you for the proper information to ensure you don’t omit anything. Remember, if you lie to your bankruptcy attorney then you only may end up hurting yourself!

Is Filing Bankruptcy Worth It?

A New York bankruptcy attorney should be looked at as an investment. Many times people have over $20,000 worth of debt. In order to get rid of the debt, spending $1,500 - $2,500 to wipe out $20,000 of debt or more is worth it. Karra L. Kingston Esq. Karra L. Kingston Esq. is a top rated law firm in New York and New Jersey. Call today to speak with a bankruptcy lawyer regarding your situation. Bankruptcy can be a difficult decision and speaking with a knowledgeable bankruptcy attorney can help you better understand the steps and if bankruptcy is the right decision for you.   Read the full article

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A Further Look At The Bankruptcy Process in New York and New Jersey

Bankruptcy is a process that offers individuals, such as consumers and businesses who are facing financial hardship a way out. The federal courts have implemented different Bankruptcy laws in each state so that individuals and businesses can get help and manage repayments under the Court. There are different chapters of Bankruptcy. The most common form of Bankruptcy is a Chapter 7 Bankruptcy. In a Chapter 7 Bankruptcy any non exempt assets are liquidated and any outstanding debt is discharged. Chapter 7 Bankruptcy is usually for consumers. However, businesses can file under a Chapter 7 as well. In a Chapter 7 Bankruptcy, any property that is not exempt is liquidated, meaning sold by the trustee. The proceeds from the sale of any assets is then used to payback any outstanding creditors. Unfortunately, not everyone can file a Chapter 7 bankruptcy, and get their debts wiped out completely. If you generate too much income, have too many assets, or have filed previously then you will not qualify for a Chapter 7 Bankruptcy. In order to file a Chapter 7 Bankruptcy, the court first looks to see if you are below the median household income level. The court uses a test called “The Means Test.” Different states such as New York and New Jersey have different median incomes which means the Means Test is different per state. The court uses this test to determine whether you qualify for a Chapter 7 Bankruptcy. In order to qualify for Bankruptcy under the means test, the court takes your average household income for the last 6 months and compares it to the standard median income for a household of the same comparable size in that state. It is important to note that social security payments are not included in calculating The Means Test. An individual can only file for a Chapter 7 Bankruptcy every 8 years. A person who has filed a Chapter 7 Bankruptcy in the past must wait eight years before filing again. Many people prefer to file a Chapter 7 Bankruptcy because your debt gets completely wiped out. Further, many people are under the misguided impression that filing for Chapter 7 Bankruptcy means that you won’t be able to keep any of your assets. This is completely false. There are Federal and State exemptions which allow debtors who file a Chapter 7 Bankruptcy to sometimes keep their property if they fall within the exemptions. Unlike a Chapter 7 Bankruptcy where assets are liquidated and the debt is discharged, a second method of bankruptcy involves Reorganization. Reorganization is a method in which you can communicate to the court how much you intend to pay your creditors to clear your debts. This is also known as filing for a Chapter 13 Bankruptcy. Unlike Chapter 7 Bankruptcy, with a Chapter 13 you pay back your creditors over a 3-5 year plan. One of the reasons people enter into a Chapter 13 Bankruptcy is because they generate too much income or have too many assets. The monthly payment plan in a Chapter 13 Bankruptcy is determined by adding up your outstanding debt to secured creditors. One advantage of choosing a Chapter 13 Bankruptcy is that all of your debts will be paid back interest free. Another advantage of a Chapter 13 Bankruptcy offers individuals an opportunity for individuals with too much equity to save their homes from foreclosure. By filing a Chapter 13 Bankruptcy individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Under the Bankruptcy Laws, any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief. The Bankruptcy law permits the filing of a Chapter 13 Bankruptcy as long as the individual's unsecured debts are less than $394,725 and secured debts are less than $1,184,200. 11 U.S.C. § 109(e). These amounts are adjusted periodically . It is important to note that a corporation or partnership may not file a Chapter 13 Bankruptcy. Under the Courts rules if you intend to file either a Chapter 7 or Chapter 13 Bankruptcy, it is required that a credit counseling course is completed prior to the filing and a debtor education course is filed after the case has been filed. These courses are done in the convenience of your own home and take about an hour each to complete. The first Course is imposed to allow you to make an informed decision whether Bankruptcy is the right option for you. While the second course will help to ensure that your finances don’t become unmanageable in the future. In order to determine which Bankruptcy Chapter you qualify for, it is important to speak to an experienced Bankruptcy attorney who can assess your individual circumstances. If you are considering filing bankruptcy and have more questions regarding the advantages of filing bankruptcy, then talking to an experienced New York or New Jersey bankruptcy lawyer is important. Call Karra Kingston and William Bonomo today to get a Free Consultation. Read the full article