There are many instances when the debt-related nightmare experienced by clients in Middletown NY and surrounding communities simply cannot be rectified through a repayment plan, and stronger, more immediate action is required.  This is when filing a case under Chapter 7 can make the most sense.  Chapter 7 is a “liquidation” bankruptcy that is best filed by folks with large amounts of unsecured debt (i.e., credit cards, medical debt, loans without any associated collateral, etc.) who do not have significant equity in their assets.

At Hayward, Parker & O’Leary, Esqs. experienced Chapter 7 bankruptcy lawyer Michael O’Leary will evaluate your circumstances via an in-person, free Initial Consultation.  Detailed information will be flushed out concerning your assets and your income, from all sources, together with assessing whether any recent asset transfers could jump up and bite you in Chapter 7.  As a Chapter 7 Trustee himself for many years (i.e., 1994 thru 2011), Chapter 7 bankruptcy lawyer Michael O’Leary possesses unique insight into the type of assets and activities that a Chapter 7 Trustee will want to investigate, and which can, in some circumstances, make Chapter 7 a bumpy ride.  Any problematic transfers or “at risk” assets will be fully discussed, as well as whether any curative actions should be undertaken prior to filing a Chapter 7 case.  Some potential “problems” can be effectively addressed and smoothed over prior to filing a Chapter 7, while others cannot.   Once fully discussed a determination will be made whether Chapter 7 is the best course of action for the client, or whether some other option should be considered.

Relevant Considerations When Filing Chapter 7

 Not every potential debtor is eligible to file for Chapter 7, as eligibility is contingent upon:

• You must not have received a Chapter 7 Discharge in a bankruptcy case filed within the prior eight years: and
• You must “pass” the Means Test, which is largely based on your average monthly income for the prior 6 months, from which certain expenses are deducted.

In addition, Chapter 7 is a “liquidation” proceeding where essentially a trade-off occurs.  In return for obtaining a Discharge of your obligation to repay most debts, your Chapter 7 Trustee gets to liquidate (i.e. ,reduce to cash) your non-exempt assets.   That is the Chapter 7 “bargain”, and an unwary debtor can lose assets if not properly counselled by an experienced Chapter7 bankruptcy lawyer.

Benefits of Hiring a Local Chapter 7 Bankruptcy Lawyer

 There are many intricate issues presented in Chapter 7.  Decisions must be made about how to best protect a client’s assets, beginning with whether the federal exemptions or the NYS state exemptions should be deployed.  Preparing the Means Test and debtor’s monthly budget involves analysis of complex financial data, beginning with 6 months’ worth of paystubs for each debtor who files, as well as determining the client’s monthly cost of living expenses.  Many clients are surprisingly unfamiliar with where their money goes each month.  Figuring out whether to retain or surrender an expensive item like a car necessarily involves a discussion about “wants” versus “needs”.  Most people do need a car to get back and forth to work, etc., but they do not necessarily need the luxury car that looks pretty but is financially burying them.  These decisions are best made when the client is dealing with a local attorney with whom he can meet and speak to as needed.  It is easier to iron out sticky issues when the lawyer and client are in the same room and interacting face to face, rather than exchanging emails or Zoom conferences.  A robust and developed attorney-client relationship is absolutely necessary to successfully resolve legal matters, and this is hard to achieve “long distance”.

Calling 845-343-6227 to schedule a free consultation with experienced bankruptcy lawyer Michael O’Leary can be your first step toward achieving debt relief and financial recovery.