Law Office of Andrew M. Doktofsky

Law Office of
Andrew M. Doktofsky (631) 673-9600

191 New York Avenue, Huntington, New York 11743

868 Little East Neck Road, West Babylon, New York 11704

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Bankruptcy

Bankruptcy is an area of law concerned with the process by which persons, corporations or other entities seek relief from the payment of their debts.

There are several types of bankruptcy filings but the only two that will concern most individuals are what are known as Chapter 7 and Chapter 13. These numbers refer to chapters of the Bankruptcy Code, which is the federal law that governs bankruptcy cases.

Chapter 7

In a Chapter 7 bankruptcy, all of the debtor’s non-exempt property may be sold by a bankruptcy trustee and the proceeds used to pay the debtor’s creditors. (The debtor is the individual or entity filing for bankruptcy). However, there are many property exemptions available to an individual debtor, which will be discussed below. In a Chapter 7 bankruptcy filing, the debtor is given a discharge on most debts, meaning the debtor is no longer obligated to pay back those debts.

Chapter 13

In a Chapter 13 bankruptcy, some or all of the individual’s debts are paid back. Chapter 13 is used by debtors who own significant non-exempt assets; debtors who have too much income to file under Chapter 7; or debtors who have fallen behind on their mortgage payments. A Chapter 13 plan is filed by the debtor, which details how and in what amounts the debtor’s creditors will be paid.

The following statement is required pursuant to 11 U.S.C. §528:

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.