Queens Bankruptcy Lawyer

Bankruptcy is a legal process that helps people and businesses deal with debts they can’t afford to pay under the supervision of an appropriate bankruptcy court. It can help you erase some debts entirely or provide the framework and legal protection that would allow you to  set up a plan to repay what you owe over time. It can also stop creditor calls, prevent foreclosure, and protect the things that matter most  like your home and your car.

Understandably, choosing to file for bankruptcy is a big step, and the process can feel confusing. The forms, deadlines, and court requirements may also be too much to handle on your own. That’s why having an experienced bankruptcy attorney is so important. 

At the Law Offices of Wenarsky and Goldstein, LLC, we understand how tough this moment is and know how to help you through it. If you’re looking for experienced bankruptcy guidance you can trust in Queens, New York, we can help you understand your choices, prepare your paperwork, and advocate for you through every aspect of bankruptcy court proceedings. Our goal is to make the process simple and manageable so you can focus on your future.

Understanding the Bankruptcy System

Filing for bankruptcy means taking active steps to resolve your debt situation without constant pressure from your creditors. However, despite its immense benefits to debtors, the U.S. bankruptcy system is built to protect both sides. 

For debtors, bankruptcy can stop wage garnishments, lawsuits, foreclosure, and endless collection calls. It offers a way to either eliminate debts or set up a plan to repay them over time in a way that’s manageable.

For creditors, the system makes sure the process is fair and allows them to participate and protect their interests during the bankruptcy proceedings. It creates a clear structure for who gets paid, how much, and when. 

The bankruptcy process follows a legal framework built from both federal and state laws. Federal law, through the Bankruptcy Code, lays out the main steps and protections and is generally applicable throughout the U.S. State laws, on the other hand, help to decide a few important details, like what property a person can keep if their property has to be liquidated.

These layers of law and the different protections for both sides can make the process complicated. That’s why working with an experienced bankruptcy attorney is so important. A skilled bankruptcy attorney can help you understand your options, avoid mistakes, and move toward a stronger financial future with confidence.

In a Chapter 7 case, the assigned bankruptcy trustee may liquidate (sell) non-exempt assets to pay creditors. However, many filers are able to retain key personal assets thanks to state/federal exemption laws, which protect necessities like a primary residence, vehicles up to a certain value, personal items, and retirement accounts. 

The Means Test

To qualify for this type of bankruptcy, you must pass a financial evaluation/means test to determine whether you are truly unable to repay your debts.  The test will compare your household income/earnings to the median income for a household of a similar size in your state (in this case, New York). 

If your income is lower than the state median, then you automatically pass and qualify for Chapter 7 (as long as you meet all other requirements). But if your income is higher, a second part of the test applies to determine whether you have enough income to repay your debts after deducting your necessary living expenses, including the cost of items like housing, food, and healthcare. If the test shows you have little or no income left, you’re eligible for relief under Chapter 7; otherwise, you may need to explore other options.

The Bankruptcy Discharge

Once the creditors in a Chapter 7 case have been repaid from the debtor’s liquidated non-exempt assets, the bankruptcy court typically discharges most remaining unsecured debts, such as personal loans and medical bills.

A discharge eliminates the debtor’s obligation to repay those debts. However, not all debts can be discharged. Obligations like child support, alimony, certain taxes, court fines, and most student loans usually survive a Chapter 7 filing, which means you remain responsible for them during and after the bankruptcy.

Key Features of Chapter 13 Bankruptcy

Often referred to as a wage earner’s plan, Chapter 13 bankruptcy is designed for individuals who have a steady source of income but are struggling to manage their debt load. 

Under Chapter 13, debtors propose a debt repayment plan that lasts between three and five years, depending largely on their income level. During this period, they make monthly/biweekly payments to a bankruptcy trustee, who in turn hands it out to creditors according to the terms of the plan if the bankruptcy court approves it. This process allows individuals to catch up on missed mortgage or car loan payments, pay off unsecured debts like credit cards or medical bills at a reduced rate, and protect key assets from foreclosure or repossession.

However, maintaining a steady income and strict adherence to the repayment schedule are critical for a successful outcome. 

There are rules governing each aspect/stage of the bankruptcy process. Failure to comply with these rules can cause delays or even outright denial of the bankruptcy relief you seek. Getting an experienced lawyer to act for you throughout the proceedings can help significantly reduce the risk of a negative outcome.

The Automatic Stay in Bankruptcy

Once you file a bankruptcy petition, something called an automatic stay is activated. This immediately:

• Stays or stops creditor collection efforts
• Halts foreclosure actions and wage garnishments
• Pauses most legal proceedings against you.

The automatic stay gives you valuable breathing room to assess your next steps. It can last throughout the bankruptcy proceedings, but it can also be lifted by the bankruptcy court if a creditor requests, depending on the circumstances.