Full Service Chapter 7 Bankruptcy

If you are a homeowner and are interested in applying for a modification of your mortgage loan while you are in bankruptcy, see the “Home Loan Modifications” page on this website.

If you don’t qualify for an Express Chapter 7, it’s probably because your income is too high or your assets are too valuable. Don’t despair though, because with my help you may instead qualify instead for a Full Service Chapter 7 and still end up, about three months after you file, with all your unsecured debt discharged (erased) while keeping all your assets.

The qualifications for a Full Service 7 are the same as the Express 7 Requirements, with the following differences:

  1. In a Full Service 7, you can own (alone or jointly with another party) real property such as a house, condo, coop, vacant land.)

  2. In a Full Service 7, in addition to unsecured debt such as credit cards and personal loans, and secured loans on leased and financed cars, you can also have one or more home mortgage loans.

  3. In a Full Service 7, you can currently be suing someone for something such as personal injury or medical malpractice that might earn you a cash award. 

If you think you won’t qualify for an Express Chapter 7 because your 

income is too high, read the tenth requirement for an Express Chapter 7 on that page in this website, then give me a call to discuss.

As far as whether your assets are too valuable to qualify for an Express 

Chapter 7, let’s back up and provide some background. 

The worst case scenario in a Chapter 7 bankruptcy is that a person owns assets that are too valuable to be protected by the federal or New York State exemption laws, and which therefore can be confiscated by the bankruptcy trustee and sold to pay off your creditors. An experienced bankruptcy attorney will see this problem emerging well in advance and, if it can’t be resolved within a Chapter 7 bankruptcy, may recommend a Chapter 13 bankruptcy so that your assets will be protected. 

If you own a home, that home will be your most valuable asset for several 

reasons. Therefore, it is vital that, before you file your petition, research 

is carefully done (i) on the ownership history of your home, (ii) on what creditors, if any, have placed a lien on your home, (iii) the value of your home, (iv) how much you owe the mortgage bank and certain other “priority” creditors such as tax agencies, and (v) in a hypothetical sale of your home, how much of the proceeds of the sale you will be entitled to keep under the federal or New York State exemption laws.

Prior to filing a Full Service Chapter 7, we must be absolutely sure that your home will be protected. If we can’t be absolutely sure, we will not proceed with a Chapter 7 and we will discuss filing a Chapter 13 instead.

A Full Service Chapter 7 Bankruptcy can be a vital step in putting your debt behind you and gaining you a fresh start in your finances, but like all areas of the law, bankruptcy is full of hidden pitfalls that only an experienced attorney like me can make sure you avoid. Call me today at 917-414-6795. One more time: phone consultations are free.

The fee for a Full Service Chapter 7 is up to $2,535 assuming no unusual litigation is required. The fee includes the mandatory $338 court filing fee, the cost of a broker’s price opinion if you own a home, and the cost of two mandatory online courses. A $500 deposit is required with the remainder to be paid before your petition is filed.