New York Bankruptcy ∙ Chapter 7 or Chapter 13?
You may have become overwhelmed with debt when your two income family went to a single income family. Or perhaps there was a major illness or accident in your family. Or maybe you thought your income would continue climbing, but that didn't happen.
No matter the reason, you need non-judgmental and experienced help. At Glenn & Glenn, L.L.P., that is what you'll find. Roger and Susan Glenn are a husband and wife team that provides experienced legal advice for a variety of financial and legal matters, including Chapter 7 and Chapter 13 bankruptcy.
For a free initial consultation, please call 845-256-8396 locally or toll free at 877-862-7197 or send an e-mail to Glenn & Glenn, L.L.P.
Chapter 7 or Chapter 13?
There are many small differences between a Chapter 7 and Chapter 13 bankruptcy, but the main differences are these:
- Chapter 7 eliminates all debt with a few exceptions.
- Chapter 13 repays a portion of the debt over three to five years, then eliminates the remainder.
- Chapter 7 liquidates most assets, although you can keep $50,000 of home equity per person if your payments are current.
- Chapter 13 protects most assets as long as you stick with the court-ordered payment plan.
- Both Chapter 7 and Chapter 13 bankruptcies will stop creditor harassment and wage garnishment and halt foreclosure proceedings.
The Means Test
One of the first tasks to do when determining whether to file for a Chapter 7 or Chapter 13 bankruptcy is to complete our law firm's detailed bankruptcy questionnaire. The information on the questionnaire is very detailed, but it will lead us to be able to determine whether or not you pass the means test. For those who pass the means test, the best alternative is typically a Chapter 7 bankruptcy.
The Chapter 7 means test states that your current monthly income (CMI) must be less than the Census Bureau's median income for a family of your size in your state.
If you make more than the CMI, you cannot file for a Chapter 7 liquidation bankruptcy. If you make less than the CMI in New York, a Chapter 7 bankruptcy is your best option. In general, a Chapter 7 is preferable if you qualify for it.
The Right Lawyer for a Difficult Time
The New Paltz Chapter 7 and 13 attorneys at Glenn & Glenn, L.L.P., are available to discuss your case and advise you on how to move forward to solve your legal issues and find debt relief. For a free initial consultation, please call 845-256-8396 locally or toll-free at 877-862-7197 or send an e-mail to Glenn & Glenn, L.L.P.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
