Chapter 7 Bankruptcy Long Island

Most Long Island homeowners keep their homes in Chapter 7 bankruptcy. New York’s homestead exemption protects up to $170,825 of home equity for most residents. If you’re current on your mortgage and your equity falls within the exemption limits, you can continue making payments and keep your house. We’ll calculate your exact equity position and exemption eligibility during your consultation to give you a definitive answer about protecting your home.

A typical Chapter 7 case takes about 3-4 months from filing to discharge. The automatic stay protecting you from creditors begins immediately when we file your case. You’ll attend one meeting of creditors about 30 days after filing, which usually lasts 5-10 minutes. The court then issues your discharge eliminating your debts about 60-90 days later. This timeline can vary slightly based on court schedules and case complexity, but most clients receive their fresh start within four months.

Chapter 7 eliminates most unsecured debts including credit cards, medical bills, personal loans, deficiency balances from repossessed cars, old utility bills, and collection accounts. You cannot discharge recent taxes, student loans, child support, alimony, or debts from fraud. Secured debts like mortgages and car loans aren’t discharged, but you can choose to keep the property and continue payments or surrender it without owing any deficiency balance.

Yes, having a job doesn’t disqualify you from Chapter 7 bankruptcy. The means test compares your household income to New York’s median income levels. If you earn less than the median, you automatically qualify. If you earn more, we calculate your actual monthly expenses including housing, transportation, food, and other necessities. Many working families qualify because their necessary living expenses reduce their disposable income below the threshold required for Chapter 7 eligibility.

Chapter 7 bankruptcy appears on your credit report for 10 years, but your credit score can improve much sooner. Many clients see their scores increase within 12-18 months after discharge because they’ve eliminated debt and improved their debt-to-income ratio. You can typically qualify for a car loan within a year and a mortgage within 2-3 years. The key is rebuilding credit responsibly after bankruptcy rather than continuing to struggle with overwhelming debt that can prevent any credit improvement.

Our Chapter 7 bankruptcy fee includes all attorney services, document preparation, court filing, and representation at your meeting of creditors. We offer payment plans so you don’t need to pay everything upfront. The total cost is typically much less than what you’d pay continuing to make minimum payments on dischargeable debts. During your free consultation, we’ll provide exact pricing and explain payment options that work with your budget while you’re getting back on your feet financially.