Eligibility & Protecting Property

Do I qualify for Chapter 7 in New York?

Eligibility involves more than the amount you owe. For many individual consumer cases, the means test evaluates income and allowed expenses. The applicable New York median-income information depends on household size and the filing date. Having income above the median does not, by itself, answer every eligibility question; further calculations and the full circumstances of the case matter.

Income records, household expenses, and prior bankruptcy history help your attorney evaluate the available path. Tell the office about recent changes in employment, overtime, commissions, or household contributions. Use the official U.S. Trustee data applicable to the filing date rather than relying on an old online income chart.

Can I Keep My Home or Car?

Property protection requires a separate analysis from debt discharge. New York law permits an individual debtor to choose federal exemptions instead of the applicable New York exemption package, subject to bankruptcy eligibility rules. The choice affects which property and how much value can be protected. Do not assume the two systems can be combined.

A home or vehicle review should consider its value, loan balance, ownership, available exemptions, and payment status. A discharge does not automatically remove a mortgage or car lien. Ask your attorney to explain both the property risk and the consequences of any proposed agreement with a secured lender.

Chapter 7 or Chapter 13?

The right chapter depends on what you need to accomplish. Chapter 13 ordinarily uses a three- to five-year repayment plan and can provide a way for eligible homeowners to catch up on mortgage arrears. Chapter 7 does not offer that same repayment structure. An attorney can compare the alternatives before you file.

A Nassau County homeowner and a Suffolk County renter can have very different priorities. Explain what you need to protect, what payments you can maintain, and which debts are creating the most pressure. That information makes the consultation more useful.

The Chapter 7 process on Long Island

Prepare, file, and complete the required steps

1. Review your finances. Discuss debts, income, assets, prior cases, and your goals. Ask which documents the office needs and how legal fees will be handled.

2. Complete approved credit counseling. Individual debtors generally need prefiling counseling within 180 days before filing, subject to limited exceptions. Use an approved provider.

3. File accurate disclosures. Your case requires detailed financial information. Disclose property and transactions honestly; concealing assets or making false statements can jeopardize a discharge.

4. Attend the meeting of creditors. The trustee asks questions about your financial affairs. The ordinary Chapter 7 meeting window is 21-40 days after filing. Follow the actual case notice and provide requested records.

5. Complete debtor education and await the court. The postfiling financial-management course is separate from prefiling counseling. Discharge is generally entered 60-90 days after the first scheduled meeting date when no issue delays it. Administration of assets can continue afterward.

How much does Chapter 7 cost?

The Eastern District of New York currently lists a $338 Chapter 7 filing charge: $245 for filing, $78 for administration, and $15 for the trustee surcharge. Attorney fees and course charges are additional. Ask for a clear explanation of the total anticipated cost.

An eligible individual may request installments or a court-approved fee waiver. A waiver requires income below 150% of the applicable poverty guideline and inability to pay in installments; approval is not automatic.

What should I bring to a consultation?

Prepare recent income records, tax returns, bank statements, creditor notices, loan information, and a list of property. Include foreclosure documents or lawsuit papers if applicable. Tell the attorney about transfers, gifts, recent borrowing, expected refunds, and any previous bankruptcy cases. Keep original notices and record upcoming deadlines. The office can provide a case-specific document checklist.

Do not transfer property, omit a creditor, or assume that new borrowing will be discharged. Discuss proposed financial changes before taking action. Complete and accurate information helps your attorney identify issues early and explain realistic options.

Nassau and Suffolk County Bankruptcy Help

Serving Residents Across Long Island

The Law Offices of Adam C. Gomerman serves Nassau County and Suffolk County from its Huntington Station office. If you are researching a Chapter 7 bankruptcy lawyer on Long Island, a consultation can help you compare relief options with the financial obligations you face today.

For Nassau County residents in communities such as Hempstead, Levittown, Hicksville, Freeport, and Garden City, questions often begin with household bills and property concerns. Suffolk County residents in Huntington, Smithtown, Babylon, Islip, and Brookhaven can use the same consultation to discuss income, debt, and goals. These communities describe the service area; they are not additional office locations.

Chapter 7
Frequently Asked Questions (FAQs)

Will Chapter 7 erase every debt? No. Domestic support obligations, certain taxes, and other exceptions can remain. Review each obligation with an attorney before deciding to file.

Can I file if I have a job? Employment alone does not resolve eligibility. Your income, household circumstances, allowed expenses, and other legal requirements must be evaluated.

Will I lose everything I own? Exemptions may protect property, but nonexempt assets can be sold. Review your property before filing; no blanket promise applies to every home or car.

Does Chapter 7 permanently stop foreclosure? No. The automatic stay can pause covered proceedings, subject to exceptions and court orders. It does not erase a valid mortgage lien or create a repayment plan for missed installments.

Can I receive another Chapter 7 discharge? A prior Chapter 7 or Chapter 11 discharge can bar a Chapter 7 discharge when the earlier case began within eight years before the new filing. Other prior cases have different rules. This concerns discharge eligibility, not an absolute ban on filing.

How do I get started? Call (631) 549-1111 to request a free initial consultation. Bring your questions and financial records so the office can discuss the next steps.