Is Chapter 7 Still Available in New York City After 2005?

Many prospective clients considering bankruptcy protection in New York City have come into our office wondering if Chapter 7 bankruptcy is even still available after 2005.  While congress did change some of the bankruptcy requirements with adoption of the Bankruptcy Abuse and Consumer Protection Act, the truth is that nearly 3/4 bankruptcies filed in New York City today are in fact still Chapter 7 cases. The BACPA legislation wasn’t intended to prevent people from seeking the bankruptcy relief they truly need, it just limited the abuse.  The Chapter 7 bankruptcy discharge remains as powerful as ever.  Nevertheless, and because of the rumors, we find more people waiting until things get really bad before getting the advice they need.

In the United States everyone still has the right to bankruptcy protection.  The idea is as old as the country itself, and many prominent Americans have needed to file bankruptcy.  Congress changed some of the rules in the Bankruptcy Code in 2005, but the changes don’t affect honest people who have fallen on hard times.  If you are underwater on your debts you will always have the opportunity for a fresh start in the United States.

There were some “sweeping changes” to the bankruptcy code, but the media generally blew them out of proportion and left the public with the impression that Chapter 7 was a thing of the past.   The fact is that most people who would have qualified for Chapter 7 before 2005 will still qualify for Chapter 7 today.  For an attorney the process is a little more complicated now, but a consumer won’t really notice the difference.  The people who need a Chapter 7 discharge will still receive it, and the power and benefits of the discharge have not been reduced in any way.  Bankruptcy remains the most powerful way to eliminate your debts and get the fresh start you need despite the changes to the law in 2005.

If your financial situation is continuing to go downhill, and you have exhausted all your other debt relief options realize that bankruptcy is still available and still as powerful as it was before the BACPA legislation.  Bankruptcy will require some sacrifice on your part, but in the end is still the best way for anyone in America to get the second chance they need.  If you live in New York City and have questions about bankruptcy please contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free bankruptcy consultation today.  We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.

This article is intended for educational purposes.  By reading no attorney-client privilege has been created.