Chapter 7 Bankruptcy

When overwhelming debt affects every part of your life, filing for Chapter 7 bankruptcy may offer a path toward financial stability. At Ursulova Law Offices, P.C., we work with individuals throughout New York who need a reliable way to discharge debt and regain peace of mind. If you struggle to keep up with bills, face lawsuits or wage garnishment, or receive constant collection calls, Chapter 7 may be a solution worth exploring.

Filing for Chapter 7 bankruptcy allows individuals to eliminate most unsecured debts, including credit card balances, personal loans, and medical bills. The process involves submitting detailed financial disclosures and working with a court-appointed trustee. With the support of a Chapter 7 bankruptcy attorney, you can avoid common errors, ensure compliance with filing requirements, and protect your eligible assets throughout the case.

At Ursulova Law Offices, P.C., we have built a reputation for clear, efficient legal support in bankruptcy matters. Our firm has helped many New Yorkers successfully navigate the Chapter 7 process. With offices in Brooklyn and Garden City, we serve clients across the area with the personalized attention they need during difficult financial times. We take a hands-on approach to each case and provide realistic, results-focused guidance every step of the way.

How Chapter 7 Bankruptcy Works in New York

Chapter 7 bankruptcy is sometimes called “liquidation” bankruptcy, but in most cases, individuals can keep their assets. New York law provides exemptions that allow filers to retain necessities such as a car, clothing, furniture, and even some home equity, depending on their situation. The primary goal is to eliminate unsecured debts, giving you a clean financial slate.

A bankruptcy petition must be filed with the appropriate federal court to begin the process. This petition includes your debts, income, assets, and recent financial activity schedules. Once filed, an automatic stay takes effect immediately, stopping most collection activity—including wage garnishments, lawsuits, and harassing creditor calls.

A trustee is assigned to your case to review your documents and ensure everything is accurate. You will attend a creditors’ meeting, often called the 341 meeting, where the trustee may ask questions about your finances. Creditors are allowed to attend, but rarely do. If all requirements are met and no objections arise, the court will issue a discharge order, wiping out qualifying debts.

Eligibility for Chapter 7 Bankruptcy

Not everyone qualifies for Chapter 7. Individuals must pass the “means test,” which compares their income to the median income for a household of their size in New York. If your income is below the threshold, you generally qualify. If it’s higher, a more detailed calculation is required to determine eligibility based on expenses and disposable income.

In addition to the means test, filers must complete a credit counseling course from an approved provider within 180 days before filing. Those who have received a Chapter 7 discharge in the past eight years may also be ineligible. Our role as a Chapter 7 bankruptcy lawyer is to evaluate your financial situation and walk you through your options. If Chapter 7 is unavailable to you, other forms of bankruptcy, like Chapter 13, may be more appropriate. We ensure you understand each option clearly before deciding how to proceed.

What Debts Can Be Discharged?

Chapter 7 bankruptcy is effective in eliminating many forms of unsecured debt. This includes:

• Credit card balances
• Medical bills
• Personal loans
• Utility arrears
• Payday loans
• Older tax debts (in limited circumstances)

However, not all debts can be discharged. Student loans, recent tax debts, child support, alimony, and court fines are typically non-dischargeable. Our firm reviews your debts in detail to clarify which obligations will be affected and how your overall financial picture will look after discharge.

Protecting Your Assets During Bankruptcy

Many people fear losing everything if they file for Chapter 7. In reality, most cases filed in New York are “no-asset” cases, meaning the trustee finds nothing to liquidate. That’s because New York provides generous exemptions for essential property, helping filers retain the items they rely on most for daily life.

Common exemptions include:

• Up to a certain value in home equity
• Motor vehicles up to a set value
• Household goods and clothing
• Retirement accounts
• Tools of the trade
• Public benefits and insurance proceeds

We help you apply the correct exemptions to protect what matters most. Our team takes time to review every asset and ensure nothing is left unaccounted for. This approach minimizes risk, avoids surprises, and supports a smooth resolution from start to finish.