If bills keep piling up and creditors won’t stop calling, filing for Chapter 7 bankruptcy can give you the fresh start you need. This legal process wipes out qualifying debts and puts an immediate stop to collection actions and harassment from creditors, giving you space to breathe and rebuild your finances.

Understanding Chapter 7 Bankruptcy Protection

Chapter 7 bankruptcy is often called liquidation bankruptcy because it clears most unsecured debts, though you may have to sell some assets. The good news is that New York state laws protect many of your most important possessions through bankruptcy exemptions. At Adon & Associates, we take the time to review your situation and help you decide if Chapter 7 is the right move for you.

What Debts Can Be Cleared Through Chapter 7

Many common debts can be wiped out with Chapter 7 bankruptcy:

• Credit card debt
• Medical bills
• Personal loans
• Past due utility bills
• Old tax debts (in some cases)

Some debts, though, usually can’t be cleared—like recent tax debt, child support, alimony, and most student loans. We help clients all over the Bronx understand exactly which debts they can eliminate before filing.

The Chapter 7 Filing Process

Required Steps Before Filing

Before you file for bankruptcy, you’ll need to:

• Complete credit counseling with an approved agency
• Gather financial documents like tax returns and pay stubs
• List all assets, debts, income, and expenses
• Pass the means test to qualify for Chapter 7

The means test compares your income to the median in the Bronx. If you earn less, you qualify automatically. If you earn more, we’ll look at your specific expenses to see if you’re still eligible.

What Happens After Filing Chapter 7

Once your petition is filed with the bankruptcy court in the Bronx, the automatic stay kicks in right away. This stops creditors from taking any collection actions against you. A court-appointed trustee will review your case and may schedule a meeting of creditors about 30-45 days after you file.

Property Exemptions in New York

New York’s bankruptcy exemptions protect a lot of your property, including:

• Up to $170,825 in home equity (Bronx residents)
• Up to $4,550 in vehicle equity
• Personal items like clothing and furniture
• Tools needed for work up to $3,575

We help clients from Pelham Bay to Riverdale use these exemptions to protect what matters most.

Life After Chapter 7 Bankruptcy

Most Chapter 7 cases wrap up in 4-6 months. Bankruptcy stays on your credit report for 10 years, but many clients start rebuilding their credit much sooner. We guide you through every step and offer advice on financial recovery and education after your case is closed.

Get Started with Chapter 7 Bankruptcy in the Bronx

Contact Adon & Associates at 718-275-1243 or schedule your free consultation to get started.