Chapter 7 Bankruptcy Lawyers in Astoria

Helping Clients Find Relief from Debt

In America, we talk a lot about ‘personal responsibility’ and the idea that working hard is all it takes to get ahead. But people who’ve struggled with debt know the reality is more complex. Many people fall into debt due to circumstances beyond their control—medical bills, job loss, or simply the high cost of living in a place like New York City.

If you’re feeling overwhelmed by debt, you’re not alone—and there may be a path forward. For many, bankruptcy offers a fresh financial start.

Filing for bankruptcy is a big decision. But it should not be seen as a failure. Sometimes, bankruptcy is the most responsible option when your current path is unsustainable. If hard work alone isn’t enough to overcome your financial burdens, it’s time to explore legal options.

At Ortiz & Ortiz, LLP, we serve clients in Astoria and throughout the five boroughs of New York City. Our attorneys have decades of experience helping people navigate the bankruptcy process and take steps toward financial freedom. We can help stop creditor harassment, trigger an automatic stay, and help eliminate many forms of debt.

To learn more about your options and whether Chapter 7 is right for you, contact our firm to schedule a confidential consultation.

Who is Eligible for Chapter 7 Bankruptcy?


Most U.S. residents who own property or do business in the country can file for Chapter 7. However, there are restrictions. For example, if you didn’t pass the means test or have significant disposable income, you may not qualify.

Other disqualifying factors include recently dismissed bankruptcy cases or prior debt discharge through Chapter 7 or Chapter 13 in the last six years. Credit counseling from an approved nonprofit agency is also a prerequisite.

Additionally, Chapter 7 cannot be used to avoid debts resulting from fraud or intentional wrongdoing.

What is the Means Test?


The means test determines whether your income is low enough to qualify for Chapter 7. If your household income is below the New York median, you likely qualify. If it’s above, you may be steered toward Chapter 13 instead.

This test looks at your average annual household income. For example, if you’re a single filer earning less than roughly $47,000 a year, you may pass the test.

US military veterans and certain homeland defense members are exempt.

Debts That May Be Eliminated

Chapter 7 can help discharge several types of unsecured debt, such as:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Utility bills
  • Rent arrears
  • Business and car loan debt
  • Certain tax debts (in some cases)

Debts That Typically Cannot Be Discharged

  • Student loans
  • Child support and alimony
  • Court fees and fines
  • Debts from fraud or intentional harm
  • Most taxes and government-imposed penalties
  • Debts from divorce settlements
  • 401(k) and pension plan debts

What Assets Can You Keep?

Chapter 7 involves liquidation, but many assets are exempt under either federal or state law. Depending on your choice, you may be able to keep:

Under Federal Exemptions:

  • Up to $4,000 in motor vehicle equity
  • $13,400 in personal property
  • $25,150 in home equity

Under New York State Exemptions:

  • Up to $4,550 in vehicle value
  • Up to $3,400 in tools of your trade
  • Up to $179,950 in home equity in Queens County (subject to change)

Speak with a bankruptcy attorney to assess your individual situation and determine which exemptions apply.

How a Bankruptcy Attorney Can Help

Bankruptcy law is complex, and mistakes can delay or derail your case. An attorney can provide guidance, handle paperwork, and ensure you receive the protections afforded under the law, like stopping creditors through an automatic stay.

If you’re unsure about what Chapter 7 entails or whether it’s right for you, a bankruptcy attorney serving Astoria can help walk you through your options and offer advice tailored to your situation.

Contact a Bankruptcy Lawyer Serving Astoria, NY


It doesn’t matter how you ended up in debt—whether due to injury, job loss, or financial strain caused by inflation. What matters is finding a way out. Bankruptcy can be the lifeline you need.

At Ortiz & Ortiz, LLP, we serve clients in Astoria and throughout New York City. We believe that with the right legal team, bankruptcy doesn’t have to be a scary or shameful experience.

Call us at 916-796-1858 to schedule a confidential consultation and take the first step toward financial freedom.