All Bankruptcy Lawyers in Yonkers

The automatic stay is a federal court injunction that takes effect the exact moment a bankruptcy petition is filed. It immediately halts nearly all collection actions by creditors, including eviction proceedings, utility shut-offs, wage garnishments, and residential foreclosures.

Chapter 7 involves the prompt liquidation of a debtor’s non-exempt assets to pay creditors, often concluding in a few months. Chapter 13 does not liquidate assets; instead, it establishes a court-monitored repayment plan lasting 36 to 60 months based on the debtor’s disposable income.

The means test is a statutory calculation used to determine if a debtor qualifies for Chapter 7. It compares the debtor’s average income over the preceding six months to the median income in their state. If income is too high, the debtor is generally restricted to filing Chapter 13.

Certain obligations cannot be erased through bankruptcy proceedings. These typically include recent tax debts, domestic support obligations such as alimony and child support, criminal restitution orders, and debts incurred through willful or malicious injury to another entity.

Yes, state statutes provide a homestead exemption that protects a specific amount of equity in a primary residence. If the equity in the home falls below the statutory exemption limit, the property is generally shielded from being sold by the Chapter 7 trustee.

The 341 meeting is a mandatory hearing where the court-appointed bankruptcy trustee and any attending creditors ask the debtor questions under oath regarding their filed petition, financial history, and current asset holdings to verify accuracy and identify potential fraud.

Under the Fair Credit Reporting Act, a Chapter 7 bankruptcy record legally remains on an individual’s credit report for 10 years from the filing date. A Chapter 13 bankruptcy typically remains on the report for 7 years from the date of filing.

An adversary proceeding is a separate civil lawsuit filed within the broader bankruptcy case. It is often initiated by a creditor seeking to have a specific debt declared non-dischargeable due to alleged fraud, or by a trustee seeking to recover preferential payments made prior to filing.

No. Chapter 13 is strictly reserved for individuals and sole proprietors. Corporations, limited liability companies, and partnerships seeking to restructure their commercial debts must file for reorganization under Chapter 11 of the bankruptcy code.

A reaffirmation agreement is a voluntary, legally binding contract where a debtor agrees to remain liable for a specific debt, waiving the bankruptcy discharge for that item. This is typically done to prevent the repossession of collateral, such as an automobile.

Student loans are notoriously difficult to discharge. The debtor must file an adversary proceeding and prove that repaying the loan would impose an ‘undue hardship’ on themselves and their dependents, which requires meeting a highly restrictive legal standard established by the courts.

By filing the formal bankruptcy petition, the legal professionals listed here activate the federal automatic stay. They then serve immediate notice of the filing to the debtor’s employer and the garnishing creditor, which legally compels them to cease all payroll deductions immediately.