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Chapter 7 Bankruptcy

Chapter 7 Bankruptcy Attorney in Manhattan

Experienced Bankruptcy Lawyer Serving Clients in Manhattan, Brooklyn and Queens

Sometimes referred to as “straight bankruptcy,” Chapter 7 is a liquidation proceeding and is the most common type of bankruptcy that is filed in the country today. Depending on your individual financial situation, this may be the type that is ideal for you. The Law Office of Julio E. Portilla, P.C. is here to evaluate your circumstances and help you make an informed decision about the right form of debt relief for you.

Some of the most common reasons to file for Chapter 7 include:

  • Unemployment
  • Substantial medical bills
  • Marital problems
  • Seriously overextended credit
  • Additional unexpected expenses

Call our Manhattan Chapter 7 bankruptcy lawyer at (917) 909-6166 today to schedule a free consultation.

Filing for Chapter 7 in NY

The first step in declaring Chapter 7 bankruptcy is an initial consultation with a well-seasoned NYC bankruptcy attorney. During this interview, your current income, expenses, debts, and personal property are assessed to see whether straight bankruptcy is suited to your situation. To ensure accuracy, your lawyer needs to see all relevant tax returns, wages, and other information to prepare the necessary filings for the court.

In the second step, a trustee is appointed to the case. This person will receive all of your property that is non-exempt and will hold an auction to convert these assets into cash that is available for distribution to creditors.

New York Chapter 7 Exempt Property

Although many of your assets will be liquidated in a Chapter 7 bankruptcy, you are allowed to keep some of your property. These are known as “exempt” assets.

In New York, there are several types of property that can be exempt, including:

  • Real property including co-op, condo or mobile home, to $150,000 for the counties of Kings, New York, Queens, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $125,000 for the counties of Duchess, Albany, Columbia, Orange, Saratoga, and Ulster; $75,000 for the remaining counties in the state (husband & wife may double)
  • If you do not own a home, or if you have no equity in your home and do not need the homestead exemption, you may exempt $5,000 in cash or deposits in the bank; $10,000 for a couple
  • Motor vehicle to $4000, $10,000 for disabled person (husband and wife may double)
  • 100% of valid 401(k), 403(b), IRA accounts, and other ERISA qualified retirement savings accounts
  • Up to $10,000 in household goods
  • 100% of funds on deposit in a valid college tuition savings program trust fund for a child
  • A wedding ring, no matter the value (though not an engagement ring)
  • Jewelry, artwork, or antiques up to $1,350
  • Tools necessary for your trade or business, up to $3,000
  • Pension, social security, or worker’s compensation benefits
  • Child support and alimony payments, to the extent necessary for the support of the debtor and his/her children
  • Up to $7,500 in a recovery of a personal injury action
  • Domestic animals and 60 days of food up to a value of $1,000

Chapter 7 Federal Exemptions

In New York State, debtors filing for Chapter 7 bankruptcy are entitled to choose between the Federal Exemptions and the New York State Exemptions.

Under the Federal Exemptions, a debtor would be able to protect:

  • Up to $21,625 in equity per debtor, in the home, condo, or mobile home that you live in; this amount doubles to $43,250 for married couples who own the property jointly
  • $3,425 in equity in a vehicle
  • Valid 401(k), 403(b), IRA accounts, and other ERISA qualified retirement savings accounts up to $1,095,000 per debtor
  • Household goods, valued at up to $550 per item, with a maximum total value of $11,525
  • Jewelry up to $1,450
  • Tools necessary for your trade or business, up to $2,175
  • Pension, social security, or worker's compensation benefits
  • Child support and alimony payments, to the extent necessary for the support of the debtor and his/her children
  • Up to $21,625 except for pain and suffering or for pecuniary loss in a recovery of a personal injury action
  • So-called "wildcard" exemption, which allows a debtor to protect up to $1,150 of any property and any unused portion of homestead up to $10,825 per debtor

What Happens After I File for Bankruptcy?

Once a debtor files for bankruptcy, the debtor's estate is protected by the "automatic stay," which bars creditors from trying to collect debts without the permission of the bankruptcy court. This provides immediate protection against foreclosure, repossession of your car, eviction from your apartment, garnishment of your wages or bank accounts, cut-off of your electricity, or other measures creditors may take to try to recover monies owed.

Approximately 30 to 45 days after your initial filing, you will have a meeting of creditors with your appointed bankruptcy trustee. At this meeting, you will have to answer questions under oath regarding the information in your bankruptcy petition. About 60 days after your initial meeting of creditors, you will receive a discharge of indebtedness that releases you from all personal liability.

Call our Law Firm Today to Get Started

The Law Office of Julio E. Portilla, P.C., is devoted to your case and personally handles it in its entirety. For more information on how we can help you, feel free to contact us today.

Call (917) 909-6166 now to discuss your options with our Manhattan Chapter 7 bankruptcy attorney.

What Sets Us Apart?

The Difference is Clear
  • High-Quality Representation

    The majority of the firm's clients are referrals. This is a testament to their faith in Attorney Portilla's ability to provide the best legal counsel and advocacy.

  • Accessible

    When you hire Attorney Portilla you can count on transparent communication regarding your case and fast response times on all questions!

  • Convenient

    For your safety and convenience, The Law Office of Julio E. Portilla, P.C. offers phone and video consultations as well as same-day appointments.

  • Multilingual

    The team at The Law Office of Julio E. Portilla, P.C. is multilingual and serves its clients in English, Spanish and French.

  • Personalized Attention

    Attorney Portilla takes the time to listen, walk you through the process, and create a personalized strategy for your case.

  • Courtroom Experience

    Attorney Portilla is a proven litigator who has vast experience handling various cases types in a courtroom successfully.

Meet Our Dedicated Attorney Julio E. Portilla

"I will fight to protect your legal rights under the law."

Stories from People We have Helped 

Read Our 5 Star Reviews 
  • He not only guided me in my most difficult moments, but he was determined and positive at all times.

    “Mr. Julio E. Portilla is a great attorney. His expertise in Bankruptcy law allowed me to help solve my case with the greatest success possible. I thank Julio so very much because he not only guided me ...”

    - Kat Sykes
  • He helped us every step of the way and made us feel so comfortable during a very difficult time.

    “Absolutely amazing attorney. I would not even think about retaining anyone else! He helped us every step of the way and made us feel so comfortable during a very difficult time. Mr. Portilla is very ...”

    - Anahida
  • He was there for me in my time of need when I thought I had no options.

    “Mr. Portilla was an excellent lawyer. He was there for me in my time of need when I thought I had no options. He was professional and was always available to help in any way he could.”

    - Iris
  • I never felt lost, and the entire process was very stress-free thanks to Mr. Portilla.

    “I was referred to the Law Office of Mr. Portilla by a friend. When I filed for bankruptcy I was very nervous. The minute I stepped into Julio's office and heard him speak I was put at ease. Julio ...”

    - Happy Client
  • He was there for us every step of the way and would recommend his services to anyone who needs a reliable lawyer.

    “Mr. Portilla previosly helped out my family so we knew his services were excellent. He was there for us every step of the way and would recommend his services to anyone who needs a reliable lawyer.”

    - A. Ovan
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