New York City Chapter 7 Bankruptcy Attorneys

New York City's dynamic economy can be a double-edged sword, offering immense opportunity but also the potential for overwhelming debt. If you're struggling under the weight of financial burdens impacting your business or personal life, our team at Jacobs P.C. can help. 

Our experienced NYC bankruptcy attorneys have a proven record of success in guiding businesses through the legal process of filing for Chapter 7 bankruptcy.

Every situation is unique, and we can work closely with you to determine if Chapter 7 is the right path forward for your company. We'll guide you through every step of the filing process, answer your questions with clarity, and make sure that you understand your options thoroughly. 

Whether you are a massive company, an up-and-coming startup, or an established mom-and-pop operation, our goal is to empower you with the knowledge and legal support you need to make informed decisions about your business's financial future.

Is your company ready for a new chapter? Call (347) 952-7030 to schedule a consultation with a New York City Chapter 7 bankruptcy attorney at Jacobs P.C. today.

The Best Time to File for Chapter 7 Business Bankruptcy

Determining the right time for a business to file for Chapter 7 bankruptcy in New York City requires a thorough evaluation of your company's financial health, as the timing of your filing can significantly impact the process and outcome. Generally speaking, we recommend considering Chapter 7 when your business debts have become unsustainable, and there are no viable options for recovery.

You should also consider filing for Chapter 7 if:

  • Your business debts are primarily unsecured: Chapter 7 is best suited for debts such as business credit cards, unsecured lines of credit, and certain supplier invoices.
  • Your business is facing aggressive collection actions: Filing can provide immediate relief from creditor lawsuits, asset seizures, and other collection efforts.
  • Your business income is insufficient: Chapter 7 eligibility may be based on a means test that compares your business income to the median income for similar businesses in New York. If your income falls below this threshold, you are more likely to qualify.
  • You haven't recently incurred substantial new debt: Taking on significant new debt shortly before filing could raise red flags about fraudulent activity.

Strategic timing is crucial to protect your business assets and maximize the benefits of Chapter 7. Consulting with an experienced bankruptcy attorney at Jacobs P.C. can provide the insight needed to make an informed decision. We can analyze your business financials, discuss your options, and develop a timeline that works for you.

How Can Filing for Chapter 7 Bankruptcy Help Your Business?

Chapter 7 bankruptcy can provide several benefits to businesses facing overwhelming financial challenges:

  • Immediate relief from creditor actions: The automatic stay, triggered upon filing, halts all collection efforts, including lawsuits, foreclosures, and repossessions. This gives your business breathing room to reorganize finances and develop a plan for moving forward.
  • Elimination of unsecured debt: Many types of unsecured business debts, such as credit card balances, unsecured loans, and specific contracts, can be discharged through Chapter 7. This can significantly reduce your debt burden and improve your financial outlook.
  • Protection of essential assets: While Chapter 7 involves liquidating assets to repay creditors, certain assets may be exempt under state law, allowing your business to retain necessary tools and equipment. Our experienced bankruptcy attorneys can help you maximize your exemptions.
  • A fresh financial start: By discharging eligible debts and restructuring your financial obligations, Chapter 7 can provide your business with a fresh start, free from the weight of overwhelming debt. This allows you to focus on rebuilding and pursuing new opportunities for growth.

Remember, Chapter 7 is a complex legal process, and its suitability for your business depends on various factors. It's crucial to consult with a qualified bankruptcy attorney to evaluate your options and determine the best course of action for your unique situation.

What to Expect When Filing for Chapter 7 Bankruptcy

The Chapter 7 bankruptcy process for businesses begins with a comprehensive evaluation of your company's financial standing. Once the decision to file is made, you'll need to engage in mandatory credit counseling.

The formal initiation of your Chapter 7 case occurs with the filing of your bankruptcy petition. This triggers the automatic stay, providing an immediate shield against creditor actions. This is a crucial stage where our legal expertise becomes invaluable, safeguarding your business from further financial strain.

The bankruptcy trustee then assumes a central role in the process, meticulously reviewing your petition and business assets. A meeting of creditors, known as a 341 meeting, allows for inquiries, but with our seasoned attorneys by your side, this process is typically straightforward and efficient.

A key consideration is the means test, which determines eligibility for Chapter 7 based on your business income compared to the median income for similar businesses in New York. 

While the potential for asset liquidation may raise concerns, it's important to note that New York's exemption laws offer significant protection for essential business assets. Our team works hard to see that all available exemptions are investigated and taken advantage of when possible.

Upon fulfilling these steps, the court's discharge of your qualifying debts marks a significant milestone toward a fresh financial start. This discharge, the cornerstone of Chapter 7 bankruptcy, liberates your business from the weight of unsecured debts, paving the way for a renewed future.

Chapter 7 Business Bankruptcy Attorneys in NYC

There's often a stigma surrounding bankruptcy, but it's important to remember that it's a legal tool designed to help people find relief from overwhelming debt. If you're struggling financially, don't let fear or embarrassment prevent you from exploring your options.

The team at Jacobs P.C. believes in second chances. We provide informed, actionable guidance to help you make decisions about your financial future. Let us help you understand if Chapter 7 is the right solution for you and steer a new course toward the future.

Trust the NYC Chapter 7 bankruptcy attorneys at Jacobs P.C.. Call (347) 952-7030 or contact us online to schedule a virtual consultation today.

Frequently Asked Questions

Providing You With Answers & Solutions
  • How quickly can Chapter 7 bankruptcy stop creditor actions against my business?

    The "automatic stay" goes into effect immediately upon filing, halting most collection efforts like lawsuits, wage garnishments, and repossessions. This gives your business breathing room.

  • What debts can be discharged through Chapter 7?

    Many unsecured business debts like credit card balances, unsecured loans, and some supplier invoices are dischargeable. However, certain debts like taxes, secured debts, and fraud-related debts may not be eligible.

  • Will my business have to close down if I file Chapter 7?

    In most cases, yes. Chapter 7 is primarily for businesses that are ceasing operations. Other bankruptcy chapters may be suitable for businesses aiming to restructure and continue.

  • Can I keep any of my business assets?

    Yes, New York State has exemption laws that allow you to keep certain essential business assets, such as necessary equipment and inventory up to a certain value. We can help you identify and protect these exempt assets.

  • What happens to my business's employees if we file for bankruptcy?

    Unfortunately, Chapter 7 usually results in layoffs as the business winds down. However, we can advise you on legal obligations regarding severance pay and other employee-related matters.

  • How will filing for bankruptcy affect my business's credit rating?
  • How long does the Chapter 7 bankruptcy process typically take?

    While the timeline can vary, most Chapter 7 cases for businesses are resolved within a few months. Our firm works diligently to streamline the process and achieve timely resolution.

  • What are the costs involved in filing for Chapter 7 bankruptcy?
    Costs include filing fees, attorney fees, and potentially trustee fees. We offer transparent pricing and can discuss the estimated costs based on your specific case.

We Put Control Back in Your Court.

We are creative minds that think quickly, use well-balanced, reasoned legal judgment, and are caretakers of our clients' Confidences.

  • Boutique Legal Guidance
    We listen, internalize, and engage our clients’ needs with the utmost respect and care. We understand how scary and stressful this time can be and we help alleviate the burden.
  • Unmatched Legal Experience

    We have more than 100 years of combined experience. We are advocates for you, your business, and the outcomes you need. When you engage the firm, you're engaging an aggressive and intelligent set of attorneys.

  • Exceptional, Client-Driven Results

    When legal matters disrupt your business, the clock is ticking. At Jacobs P.C., no matter how insurmountable your business problem is, we work tirelessly to achieve results that matter to you.

Confront the Impossible Use Our Experience to Succeed
At Jacobs P.C., we are committed to achieving victory with unparalleled precision and drive.
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