In New York, consumers who are facing financial uncertainty due to an overwhelming amount of debt could benefit by filing for bankruptcy. These consumers should evaluate all the ramifications of this process before they file a claim. If you wish to learn more about the pros and cons of bankruptcy, you should visit now.
How to File for Chapter 7:
Step 1: Establish Your Eligibility
Establish your eligibility for chapter 7 bankruptcy by determining your gross income for the year. According to the 2005 Bankruptcy Act, all claimants who wish to file a success chapter 7 bankruptcy claim should have an income that is below the median for their area. The median income for Suffolk County is $84,767 for individuals and $72,112 for families. A Bankruptcy Lawyer in Suffolk County NY can make this distinction for you by evaluating your income statements for at least the last six months.
Step 2: Enroll into a Credit-counseling Program
Enroll into a credit-counseling program that is approved by the state of New York. According to the bankruptcy act, all consumers who wish to file for bankruptcy are required to complete these programs. In these programs, they will learn how to manage their finances and repair their credit after bankruptcy. These concepts are vital for consumers to prevent further negative impacts on their credit.
Step 3: Filing a Chapter 7 Bankruptcy Claim
Gather all of your income tax returns for the last two years, income taxes, and bank account information. You will need deeds, titles, and other documents identifying ownership. Your attorney will inform you of which properties are most likely to be liquidated in this process. If you have any other assets, you are required to disclose this information to your attorney.
Through chapter 7 bankruptcy, your debts are settled after the sale of key properties. The court assigns trustee to your case to monitor the sale of your properties and distribute the proceeds to your creditors. Any creditors who deny inclusion in the bankruptcy claim can take legal action against you to collect any balance owed. If you wish to file chapter 7, you should hire a Bankruptcy Lawyer in Suffolk County NY now.