When Korean American clients consult Song Law Firm about bankruptcy, the first question is usually whether to file under Chapter 7 or Chapter 13. Both arise under federal law (11 U.S.C.), but the procedures and outcomes are very different.
Chapter 7 — Liquidation Bankruptcy
Chapter 7 (11 U.S.C. § 701 et seq.) involves a trustee selling non-exempt assets to pay creditors and discharging the remaining unsecured debt. Filing to discharge typically takes 4–6 months.
Chapter 13 — Reorganization Bankruptcy
Chapter 13 (11 U.S.C. § 1301 et seq.) allows an individual with regular income to repay debts under a 3–5 year plan. It is commonly chosen by clients trying to stop a home foreclosure or catch up on a car loan.
NJ vs NY — Where to File
Both states apply the same federal Bankruptcy Code, but the bankruptcy courts differ. NJ residents file in the U.S. Bankruptcy Court for the District of New Jersey (Newark, Camden, Trenton). NY residents file based on county: Southern District (Manhattan, Bronx, Westchester), Eastern District (Brooklyn, Queens, Long Island), Northern District (Albany), or Western District (Buffalo). Exemption rules also differ by state.
5 Factors Song Law Firm Reviews
(1) Household income at or below the state’s median qualifies for Chapter 7. (2) Significant non-exempt assets favor Chapter 13. (3) A foreclosure notice typically calls for Chapter 13’s automatic stay. (4) Self-employed clients should also consider Chapter 11 Subchapter V. (5) A Chapter 7 discharge in the last 8 years forces a Chapter 13 filing.
FAQ for Korean American Clients
Q. Can green card holders or visa holders file?
Yes. U.S. bankruptcy law does not condition eligibility on immigration status — only on U.S. residence, assets, or debts. Certain business-related visas (e.g., E-2) may require additional review.
Q. Can only one spouse file?
Yes. An individual filing makes sense when the debt is in one spouse’s name. However, jointly-titled debts and assets still affect the other spouse, so Song Law Firm analyzes the entire family financial picture before filing.
Our Commitment
Song Law Firm helps Korean American clients across NJ and NY navigate every step — pre-filing creditor negotiations, asset protection strategy, and post-discharge credit recovery — in Korean, English, and Chinese. Our team serves Fort Lee, Bergen County, Hudson County, and the broader NJ–NY metro area.
Free Consultation
- 📞 (201) 461-0031 (Mon–Fri 9:00 AM – 6:00 PM ET)
- ✉️ mail@songlawfirm.com
- 💬 KakaoTalk Song Law Firm
- 🌐 www.songlawfirm.com
This column is for general informational purposes only and is not legal advice on any specific matter. Reading this article or contacting Song Law Firm does not create an attorney–client relationship. Please consult a qualified attorney for advice on your particular situation.
