Bankruptcy Lawyer in Bay Terrace, NY

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Get immediate protection from creditors and a clear path to financial freedom in Bay Terrace.

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Bay Terrace Debt Relief Attorney

What Life Looks Like After

The phone stops ringing with collection calls. Your paycheck stays in your account instead of being garnished. You sleep through the night without worrying about losing your house.

That’s what happens when you file for bankruptcy with proper legal guidance. Chapter 7 bankruptcy can eliminate credit card debt, medical bills, and personal loans in just a few months. Chapter 13 bankruptcy lets you keep your home while paying back what you can afford over three to five years.

You’re not just getting rid of debt. You’re getting your life back. The automatic stay protection kicks in immediately after filing, which means creditors must stop all collection activities by law. No more threatening letters, no more wage garnishments, no more bank account freezes.

Experienced Bay Terrace Bankruptcy Law Firm

We Know New York Bankruptcy Law

We have been helping Bay Terrace residents navigate bankruptcy and debt relief for years. We understand the specific exemptions available to New York residents and how to protect your assets during the bankruptcy process.

You need an attorney who knows the local bankruptcy court procedures and trustees. We’ve filed hundreds of cases in the New York bankruptcy courts and know what it takes to get your case approved quickly and efficiently.

We’re not here to judge your financial situation. We’re here to help you use the legal tools available to get back on solid ground.

How to File Bankruptcy in NY

Your Path to Financial Freedom

First, we’ll review your income, debts, and assets during a consultation to determine if Chapter 7 or Chapter 13 bankruptcy makes more sense for your situation. Chapter 7 works best if you’re below the median income and want to eliminate unsecured debts quickly. Chapter 13 works better if you’re behind on mortgage payments and need time to catch up.

Next, we prepare and file your bankruptcy petition with the court. The automatic stay goes into effect immediately, stopping all collection activities. We handle all the paperwork, including the detailed financial schedules and required documents.

Finally, you’ll attend a meeting of creditors where the bankruptcy trustee asks basic questions about your finances. Most meetings last less than 10 minutes. In Chapter 7 cases, you typically receive your discharge in about four months. In Chapter 13 cases, you make payments according to your approved plan and receive your discharge after completing the plan.

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Bankruptcy and Foreclosure Defense Services

Complete Debt Relief Protection

Our bankruptcy services include both Chapter 7 and Chapter 13 filings, foreclosure defense, and debt negotiation. We handle everything from the initial means test calculation to the final discharge order.

If you’re facing foreclosure, we can use bankruptcy to stop the foreclosure process and give you time to work out a solution with your mortgage company. Chapter 13 bankruptcy is particularly effective for homeowners who are behind on payments but have enough income to catch up over time.

We also provide foreclosure defense outside of bankruptcy for homeowners who want to challenge the foreclosure or negotiate a loan modification. Bay Terrace homeowners have specific rights under New York law, and we make sure those rights are protected throughout the process.

How much does it cost to file bankruptcy in Bay Terrace?

Chapter 7 bankruptcy typically costs between $1,500 and $2,500 in attorney fees, plus a $338 court filing fee. Chapter 13 bankruptcy usually costs between $3,000 and $4,000 in attorney fees, plus a $313 court filing fee. We offer payment plans for both types of cases because we understand you’re filing bankruptcy precisely because money is tight. The exact cost depends on how complicated your case is, but we’ll give you a clear fee quote upfront with no hidden charges. Most clients find that the money they save by not paying credit cards and other debts more than covers the bankruptcy cost within a few months.

Will I lose my house if I file bankruptcy in New York?

Most people keep their homes when filing bankruptcy in New York. The homestead exemption protects up to $170,825 of equity in your primary residence, and if you’re current on your mortgage payments, bankruptcy doesn’t change your obligation to keep paying. If you’re behind on mortgage payments, Chapter 13 bankruptcy actually helps you keep your house by letting you catch up on missed payments over three to five years while stopping the foreclosure process. Chapter 7 can eliminate other debts so you have more money available for your mortgage payment. The key is acting quickly before you fall too far behind on payments.

What's the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy eliminates most unsecured debts like credit cards and medical bills in about four months, but you must qualify based on income and pass the means test. Chapter 13 bankruptcy involves a three to five year repayment plan where you pay back a portion of your debts based on what you can afford. Chapter 7 works best if you have limited income and want a fresh start quickly. Chapter 13 works better if you have regular income, are behind on mortgage or car payments, or have too much income to qualify for Chapter 7. Both chapters provide immediate protection from creditors through the automatic stay.

How long does bankruptcy stay on my credit report?

Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date, while Chapter 13 bankruptcy stays on for 7 years. However, the impact on your credit score decreases significantly over time, especially if you use credit responsibly after bankruptcy. Many clients see their credit scores improve within 12-18 months because they no longer have high debt-to-income ratios and late payments. You can often qualify for an FHA mortgage just two years after a Chapter 7 discharge and immediately after completing a Chapter 13 plan. The key is rebuilding credit gradually with secured credit cards and making all payments on time.

Can bankruptcy stop wage garnishment in New York?

Yes, filing bankruptcy immediately stops wage garnishment through the automatic stay provision. This happens as soon as your case is filed with the court, usually within 24 hours. Your employer must stop taking money from your paycheck for unsecured debts like credit cards, medical bills, and personal loans. However, certain types of garnishment for child support, taxes, and student loans may continue depending on your specific situation. In Chapter 7, the garnishment stops permanently if the underlying debt is discharged. In Chapter 13, you’ll make payments through your repayment plan instead of having wages garnished.

What debts cannot be eliminated in bankruptcy?

Certain debts survive bankruptcy including most student loans, recent taxes, child support, alimony, and debts incurred through fraud. Secured debts like mortgages and car loans also continue, but you can choose to surrender the property and eliminate any remaining balance owed. Recent credit card purchases for luxury items or cash advances may not be dischargeable if made within 90 days of filing. However, most common debts including credit cards, medical bills, personal loans, and older tax debts can be eliminated. We’ll review your specific debts during consultation to explain exactly what can and cannot be discharged in your situation.

Local Resources

Bay Terrace, NY is located in Queens County in New York State