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There are several chapters under the Bankruptcy Code, but the only two that will concern most individuals are Chapter 7 and Chapter 13. Although both chapters apply to individual consumers, there are many important differences between the two types of bankruptcy.
Chapter 7 is usually the preferable chapter of bankruptcy for individuals because debtors are able to discharge most of their debts, meaning those debts do not have to be paid back. However, it is important to consult with an experienced bankruptcy attorney to determine which chapter of bankruptcy is best in your particular situation.
Contact the law firm of Andrew M. Doktofsky, P.C. at (631) 673-9600 for answers to your questions about which chapter of the Bankruptcy Code is right for you. Attorney Andrew M. Doktofsky will advise you as to your options for filing bankruptcy under Chapter 7 or Chapter 13. Call Andrew M. Doktofsky, P.C. today if you are considering filing for bankruptcy throughout the areas of Suffolk County and Nassau County, New York.
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. However, there are many property exemptions available to an individual debtor in New York. Consequently, most Chapter 7 cases are “no asset” cases and the debtor receives a discharge with creditors receiving nothing. A discharge means that the debtor is no longer obligated to pay back his or her debts. However, certain types of debts are not dischargeable in Chapter 7. Read more about nondischargeable debts in bankruptcy.
Generally, with some important exceptions, only property owned by the debtor at the time of the filing of the bankruptcy petition will be considered part of the debtor’s bankruptcy “estate” and, therefore, subject to being sold.
To be eligible to file under Chapter 7, debtors must meet certain income requirements. Read more about the Chapter 7 Means Test.
Chapter 13 bankruptcy is mostly used by debtors who own significant non-exempt assets; have too much income to file under Chapter 7; or debtors who have fallen behind on their mortgage payments. Under Chapter 13, the debtor repays some or all of his or her debts over a three to five year period. The debtor files a repayment plan with the court, which details which of the debtor’s creditors will be paid, and in what amounts. After a debtor has followed through with the terms of the repayment plan, most debts that remain will be discharged, although certain types of debts will not be discharged. Chapter 13 is only available to debtors who have regular income.
The Bankruptcy Court for the Eastern District of New York - This court serves the Eastern District of New York, including the counties of Nassau, Suffolk, Brooklyn and Queens, and is a unit of the U.S District Court. All bankruptcy proceedings in the Eastern District of New York are filed in this court.
USBC-EDNY Local Rules – This link is to the local rules for the United States Bankruptcy Court for the Eastern District of New York. These rules vary from the federal rules, and are applicable only to the USBC-EDNY.
Chapter 7 of the United States Bankruptcy Code – Title 11 of the United States Code, which is entitled “Bankruptcy,” contains the federal law regarding bankruptcy. The Code governs all bankruptcy cases in the United States. This link is directly to the laws pertaining to Chapter 7 bankruptcy.
Chapter 13 of the United States Bankruptcy Code – Title 11 of the United States Code, which is entitled, “Bankruptcy,” contains the federal law regarding bankruptcy. The Code governs all bankruptcy cases in the United States. This link is to the laws pertaining to Chapter 13 bankruptcy.
Contact the law firm of Andrew M. Doktofsky, P.C. today for a free consultation about whether you should file for Chapter 7 or Chapter 13 bankruptcy in Suffolk County and Nassau County, New York. Andrew M. Doktofsky will determine which chapter of bankruptcy is right for you. Call (631) 673-9600 if you are considering filing for bankruptcy in New York and would like to learn more about the process from an experienced Long Island bankruptcy attorney.