Chapter 7 Bankruptcy Lawyer in New York, New York

Financial challenges can leave anyone feeling stressed and unsure about what lies ahead. Piling bills, relentless calls from creditors, and the fear of losing assets can weigh heavily on individuals and families. But when the path forward seems unclear, it’s essential to remember that legal options exist to help you start anew. Chapter 7 bankruptcy is one such option, providing debt relief and an opportunity to regain financial stability.

At Todd E. Duffy PLLC, we offer compassionate guidance and reliable representation to clients in New York and New Jersey. With extensive backgrounds in bankruptcy and commercial litigation, our attorneys analyze each client’s financial situation in detail and recommend strategies tailored to their needs. Clients never receive one-size-fits-all answers; instead, each case is approached with a focus on realistic solutions.

If you’re considering filing for Chapter 7, we provide individualized attention, taking the time to understand your unique challenges before developing a practical plan of action.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is a legal process that allows individuals and some businesses to eliminate most unsecured debts, such as credit cards, medical bills, and personal loans.

Unlike repayment-based bankruptcy chapters, Chapter 7 typically involves the sale of non-exempt assets to pay creditors. However, many individuals are able to keep essential assets through exemptions provided under state and federal law.

A Chapter 7 bankruptcy lawyer can explain whether this type of filing is right for your circumstances. Not everyone qualifies—there are income requirements and a means test to determine eligibility. For those who do qualify, the process can provide significant relief by discharging debts and stopping creditor collection efforts.

Ultimately, Chapter 7 bankruptcy offers an opportunity for a financial reset. For clients in New York and New Jersey, having experienced attorneys like Todd E. Duffy and Douglas A. Amedeo means entering the process with confidence that their rights will be protected and their financial future considered.

How Chapter 7 Bankruptcy Works

The Chapter 7 process is designed to give debtors a clean slate while treating creditors as fairly as possible. A court-appointed trustee oversees the process, reviewing assets, income, and debts. For most individuals, the process lasts about three to six months from the time of filing to the discharge of debts.

A Chapter 7 bankruptcy lawyer plays an essential role at each step: filing the petition, gathering necessary documentation, attending hearings, and communicating with the trustee. By handling these details, attorneys reduce the stress that clients often feel when managing legal requirements on their own.

Key stages of Chapter 7 bankruptcy include:

• Filing the petition: Submitting financial documents and initiating the automatic stay.

• Automatic stay: Stopping creditor calls, lawsuits, and wage garnishments immediately.

• Meeting of creditors: Attending a court-required meeting where the trustee reviews the case.

• Exemptions: Applying federal or state exemptions to protect property from liquidation.

• Debt discharge: Eliminating most unsecured debts, such as credit card balances or medical bills.

Each stage requires careful preparation and attention to detail. Missing a step or providing incomplete information can delay the process or jeopardize a successful discharge. Working with Todd E. Duffy PLLC means that clients have attorneys who understand how to approach each stage strategically and efficiently.

Debts That Can Be Discharged in Chapter 7

One of the main benefits of Chapter 7 is the ability to eliminate significant debt burdens. However, not all debts can be discharged. It’s essential to distinguish between what will be eliminated and what may remain after filing.

Debts typically discharged in Chapter 7 include:

• Credit card balances: Unsecured credit card debt is often wiped out.

• Medical bills: Past-due medical expenses are generally discharged.

• Personal loans: Unsecured personal loans with no collateral.

• Utility bills: Overdue electricity, gas, or phone bills.

• Lease or contract obligations: Certain terminated leases or contracts.

While these debts may be discharged, some obligations remain, such as child support, alimony, most student loans, and certain tax debts. A Chapter 7 bankruptcy lawyer can help clarify which debts you’ll be free from and which may still require repayment.

Having clarity at the outset is critical for making informed decisions. At Todd E. Duffy PLLC, attorneys take the time to review each client’s debt portfolio and explain how Chapter 7 will affect their financial obligations. This transparency allows clients to enter the process fully informed and prepared.

Property And Assets in Chapter 7

A common concern for those considering Chapter 7 is whether they’ll lose everything they own. In reality, most individuals keep the majority of their essential property thanks to exemptions. Both New York and New Jersey have exemption laws that protect categories of assets from liquidation.

Commonly protected property may include:

• Primary residence equity: Up to certain limits depending on location.

• Personal vehicles: Often protected up to a set equity value.

• Household goods and clothing: Basic items for everyday living.

• Retirement accounts: Most retirement savings remain untouched.

• Public benefits: Social Security, unemployment, and similar benefits.

By applying exemptions strategically, an attorney can help clients retain assets while still obtaining debt relief. The guidance of attorneys like Todd E. Duffy and Douglas A. Amedeo helps reduce anxiety about losing important property during the process.

Clients often find peace of mind knowing that bankruptcy isn’t about starting from zero but about gaining a financial restart while protecting essential items.

Eligibility Requirements for Chapter 7

Qualifying for Chapter 7 bankruptcy isn’t automatic. A debtor must pass a means test, which compares household income to the state median. If income falls below the median, eligibility is straightforward. If it’s above, additional calculations may be required to determine disposable income after allowable expenses.

Factors considered in eligibility include:

• Household income: Comparing gross income to state medians.

• Expenses: Evaluating necessary living costs.

• Disposable income: Calculating funds left after expenses.

• Prior bankruptcy filings: Restrictions apply if recently discharged under another chapter.

Eligibility analysis is one of the first steps a Chapter 7 bankruptcy lawyer will conduct. At Todd E. Duffy PLLC, attorneys walk clients through the means test and provide guidance on whether Chapter 7 or another bankruptcy option may be more beneficial.

Meeting eligibility criteria is critical, but it’s just the beginning of the conversation. Attorneys also evaluate long-term goals and financial stability to confirm that Chapter 7 is the most practical option for each client.

Reasons for Filing Chapter 7 Bankruptcy

Chapter 7 offers numerous benefits for those drowning in debt. The relief it provides often goes beyond financial—it can also restore peace of mind and reduce the stress of ongoing creditor pressure.

Primary benefits include:

• Debt discharge: Wiping out unsecured debts permanently.

• Automatic stay: Immediate halt to collection efforts, lawsuits, and wage garnishments.

• Quick process: Resolution typically within a few months.

• Asset protection: Safeguarding key property through exemptions.

• Fresh start: Opportunity to rebuild credit and financial health.

While Chapter 7 isn’t the right choice for everyone, it’s often the most effective way to eliminate overwhelming debt. Having a Chapter 7 bankruptcy lawyer helps clients maximize these benefits and avoid common pitfalls.

Clients represented by Todd E. Duffy and Douglas A. Amedeo often leave the process with renewed confidence and a clearer path toward rebuilding their lives.

Reach Out to a Chapter 7 Bankruptcy Lawyer Serving New York, New York

Filing for Chapter 7 bankruptcy is one of the most important financial decisions a person can make. For individuals in New York, New York, and New Jersey, Todd E. Duffy PLLC provides advocacy and guidance. Our attorneys offer personalized representation designed to bring relief and clarity to clients. Call today to make a fresh financial start.