Long Island Bankruptcy Lawyer

Most Long Island homeowners keep their homes in bankruptcy through New York’s homestead exemption, which protects significant home equity. In Chapter 7, you can keep your house if you’re current on payments and your equity falls within exemption limits. Chapter 13 is particularly effective for stopping foreclosure and catching up on missed mortgage payments through a court-approved plan. We analyze your home’s value, mortgage balance, and equity position to determine the best strategy for protecting your property. Many clients are surprised to learn that bankruptcy actually helps them save their homes rather than lose them.

Chapter 7 bankruptcy typically takes 3-4 months from filing to discharge in New York. The process begins with filing your petition, which immediately stops creditor collection activities. About 4-6 weeks later, you’ll attend a brief meeting with the bankruptcy trustee, usually lasting 5-10 minutes if your case is straightforward. The court then has a 60-day period for creditors to object, though objections are rare in consumer cases. Most clients receive their discharge order within 90-120 days of filing, officially eliminating their qualifying debts and allowing them to move forward with a clean slate.

Yes, business owners have several bankruptcy options depending on their situation. Sole proprietors typically file individual Chapter 7 or Chapter 13 cases that include business debts. Corporations and LLCs can file separate business bankruptcy cases, or owners might file personal bankruptcy for business debts they’ve personally guaranteed. Chapter 11 reorganization allows businesses to continue operating while restructuring debts and contracts. We help Long Island business owners evaluate whether to close and liquidate, reorganize and continue operations, or pursue other alternatives. The key is acting quickly before business problems affect your personal assets and credit.

Certain debts survive bankruptcy discharge, including recent income taxes (generally less than 3 years old), student loans (with limited exceptions), child support, alimony, and debts incurred through fraud. Criminal fines, restitution orders, and most government penalties also remain. Recent luxury purchases over $725 or cash advances over $1,000 within 90 days of filing may be non-dischargeable. However, the majority of common debts like credit cards, medical bills, personal loans, and older tax debts can be eliminated. We review your specific debts during consultation to explain exactly what will and won’t be discharged in your case.

Chapter 7 bankruptcy costs include court filing fees of $338 plus attorney fees, which vary based on case complexity. Chapter 13 cases have a $313 filing fee plus attorney fees, often paid through your repayment plan. Most bankruptcy attorneys offer payment plans since clients typically have limited cash available. We provide transparent pricing during your free consultation, including all costs you’ll face throughout the process. While bankruptcy isn’t free, the immediate savings from stopped collection activities and eliminated debts usually far exceed the filing costs. We also help you understand fee structures and payment options available in your situation.

Bankruptcy impacts your credit initially but isn’t permanent damage. Chapter 7 stays on your credit report for 10 years, while Chapter 13 remains for 7 years, but your score can improve much sooner. Many clients see credit score improvements within 12-18 months as they eliminate debt-to-income ratio problems and begin rebuilding credit responsibly. The key is understanding that maxed-out credit cards, missed payments, and overwhelming debt often damage credit more than bankruptcy itself. We provide post-bankruptcy credit rebuilding guidance, including when and how to apply for new credit, which secured cards to consider, and strategies for demonstrating improved financial management to future lenders.