In today’s debt laden economy, consumer credit debt and foreclosure are rampant. According to, the average household debt in the US is over $132,000. While all this might seem overwhelming, if you are facing insurmountable debt, there are options to help rebuild your future. Chapter 7 bankruptcy is an option that enables individuals to dig out of debt and get back on their feet quickly.  Here are five things you should know about filing chapter 7 bankruptcy.

  1. Allows a fresh start – The process of filing chapter 7 bankruptcy allows you to liquidate any unsecured debts including medical bills, unsecured loans, and credit card debt. This will give you an opportunity to move forward and start rebuilding your credit.
  2. You may not need to surrender everything – It is the job of your bankruptcy attorney to help protect yourChapter 7 Bankruptcy assets and allow you to retain as much of your personal property as possible. This might include household goods, clothing, pensions, public benefits in a bank account or even damaged acquired as a result of a personal injury.
  3. You must qualify – There are several qualifications you must meet in order to apply for chapter 7. This includes a specific household size and disposable monthly income.
  4. You may be able to keep retirement plan – While this is not always the case, a skilled attorney might able to negotiate a bankruptcy settlement in which your 401k and other retirement funds remain intact after bankruptcy.
  5. Your credit is salvageable – In many cases you will be able to rebuild your credit within a year or two of your bankruptcy filing. Over one-third of your credit score is based on your bill payment history. If you pay your bills on time, there is a good chance you will able to obtain credit.

Facing a bankruptcy can be a stressful and uncertain time. It is important to work with a trustworthy and reputable attorney who can help you understand your rights and the intricacies of the entire filing process.

Our team here at Penachio Malara, LLP has been providing knowledgeable representation of bankruptcy issues for over two decades. We serve clients in Great Plains, New York, and surrounding communities, including New York City, Younkers and the Bronx. Contact us today for a free consultation to discuss your options.


White Plains, Yonkers, Rye, Harrison, Mamaroneck, Larchmont, New Rochelle, Pelham, Mt Vernon, Bronxville, Eastchester, Hartsdale, Hastings on Hudson, Dobbs Ferry, Irvington, Elmsford, Tarrytown, Hawthorne, Armonk, Bedford, Chappaqua, Mt Kisco, Brewster, Pound Ridge, Yorktown New York

We are a Debt Relief Agency. We Help People file for Bankruptcy under the Bankruptcy Code.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

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