Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often called a liquidation because a trustee gathers and sells your non‑exempt assets to repay creditors. In most consumer cases there is little or no property to sell because many assets—such as clothing, household goods and retirement accounts—are protected by exemption laws. Once the process is complete, most unsecured debts such as credit cards and medical bills are discharged, giving you a fresh start.

To qualify you must pass the “means test,” which compares your income to the median income for a household of your size in New York. If your income is below the median, you can generally file Chapter 7. If it’s above, we’ll calculate your disposable income after allowable expenses to determine eligibility.

A typical Chapter 7 case lasts four to six months from filing to discharge. During that time, the automatic stay stops collection actions, giving you breathing room. We’ll review your assets, explain exemptions and guide you through each step so you know what to expect. Contact us to find out if Chapter 7 is right for you.