As lawyers specializing in Suffolk County bankruptcy, we not only help our Long Island clients accurately assess their bankruptcy risks, but our bankruptcy attorneys also guide clients toward options best suited to manage their specific debt problems. While bankruptcy might be the best option in the end, our Long Island bankruptcy attorneys have often seen Suffolk County clients benefiting more from bankruptcy alternatives.

 

For example, our lawyers can help stop harassment from creditors by taking advantage of federal and New York state debt collection laws that protect you from abusive and harassing debt collector conduct. We can also help you negotiate with your creditors. If you have some level of income or even some assets you’re willing to liquidate, negotiating with your creditors for extra time to get back on your feet or settling your debt for less than you owe may leave you better off than filing for bankruptcy. Our bankruptcy lawyers have also had success brokering repayment plans with clients’ creditors or collection agencies.

 

You wouldn’t pilot a plane without proper certifications required to understand the laws of the sky. Risking what remains of your financial future to novice understanding of rules and regulations surrounding the laws of bankruptcy doesn’t make much sense either. With Suffolk County bankruptcy lawyers on your side, you can set the best course needed to help your financial troubles fly right.

When working with Long Island bankruptcy clients, our Nassau County bankruptcy lawyers first help them determine their eligibility between Chapter 7 and Chapter 13 bankruptcy. Of course, the information presented here just scratches the surface of bankruptcy rules and regulations. For the best advice on the specifics of your bankruptcy case, arrange for a free consultation with one of our Nassau County bankruptcy attorneys today. But first, let’s go over the Long Island bankruptcy basics.

 

In Chapter 7 bankruptcy, the bankruptcy trustee cancels many of your debts, sometime even all of your debts, and may also liquidate some of your property to pay your creditors. Chapter 7 bankruptcy also is called "straight" or "liquidation" bankruptcy.

 

You are not eligible for Chapter 7 bankruptcy if:

 

• - you have enough income to repay your debts,
• - you previously received a bankruptcy discharge in a Chapter 7 bankruptcy case within the last eight years or in a Chapter 13 case within the last six years,
• - you had a Chapter 7 or Chapter 13 case dismissed within the past 180 days, or
• - you defrauded your creditors.

 

With Chapter 13 bankruptcy, your debts are not cancelled and your property is not sacrificed. Instead, you keep your property. But you also must pay back all or a portion of your debts over a three to five-year period. Chapter 13 bankruptcy also can be called “reorganization” bankruptcy.

 

You are not eligible for Chapter 13 bankruptcy if:

 

• - you are filing as a business instead of an individual; businesses file Chapter 11,
• - you have insufficient disposable income to meet your repayment obligations,
• - your debts exceed $1,081,400 (this amount periodically adjusts for inflation),
• - you are behind on your income tax filings.

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So you’re still toying with the idea of hiding assets and not complying with the requirement for full disclosure in your bankruptcy filing (even after your Nassau Bankruptcy lawyer has warned you not to?)

While it may be temping to transfer an asset’s deed or title to mom, or hide the Harley in the garage and claim it was stolen, you’d better think again. As previously discussed (and as any reputable Nassau bankruptcy lawyer will tell you), the bankruptcy court can dismiss your case based on fraudulent disclosure (and search back as far as 365 days prior to your filing to search for suspicious lost or missing assets.) There is also the specter of criminal prosecution for fraud.

As Americans, we enjoy many protections under the shield of the U.S. Constitution, including protection from illegal search and seizure (under the 4th amendment). But … that protection only extends so far.

If the bankruptcy trustee believes you to be hiding property (or cash from an undisclosed sale of assets), the bankruptcy court has the authority to obtain an order allowing a search of your home (which includes breaking locks and doors.) The order is usually sought on an ex parte basis, meaning neither you nor your Nassau bankruptcy lawyer will be informed about the trustee’s attempt and subsequent search of your property and records.

Experienced Nassau bankruptcy lawyers have seen the courts issue their fair share of ex parte orders, but we also counsel our clients that as long as petitioners make a full and accurate disclosure of assets, the chances of having one’s residence or workplace searched is extremely slim.

Just remember:  A reputable Nassau bankruptcy lawyer will always seek to find balance – encouraging you to make a complete and full disclosure of your assets, while working with you to help you retain as much exempt property as allowed by law.

If you’ve decided to file for bankruptcy in Nassau County, you may feel a mixture of emotions:  anxiety, over what the process entails; relief that you are about to embark upon a fresh start; and probably some sadness at the thought of the many possessions you may be forced to relinquish.

And it’s that last emotion that can be the tipping point. Don’t let sadness, regret, or greed take you from the frying pan to the fire. While it may be tempting to try to shield or exclude assets from disclosure to the bankruptcy trustee, your attorney who will be filing your bankruptcy in Nassau County will tell you:  that idea is a very short-sighted and foolish choice.

Why? Because in addition to the possibility of your bankruptcy case being dismissed entirely if the court finds that you’ve hidden assets, there is also a likelihood of criminal prosecution for fraud. Reputable attorneys who routinely help petitioners file for bankruptcy in Nassau County will always caution you to be up front about your assets and disclose them fully.

But what should you do if you acquire real property or some other asset after you’ve commenced your initial filing and asset disclosure? You need to inform the attorney who’s handling your bankruptcy in Nassau County of the new asset(s) immediately, because there is a 10-day deadline for notifying the court.

And one last caveat – don’t even try to get ‘clever’ and toy with the idea of distributing assets, property or cash to friends or relatives prior to officially filing your petition for bankruptcy. While you might think those actions will go undetected, the courts are definitely on to this practice, and are alert to look for abuse of the legal system from petitioners who file for bankruptcy in Nassau County. The court can even demand reimbursement from your co-conspirators, and still hold you liable for creditor claims after your case is dismissed. 

If the thought of giving up assets leaves you with tinges of regret, remember that filing for bankruptcy is a chance at a fresh start. Don’t blow this legal opportunity at debt forgiveness by trying to hide assets. By working with an experienced attorney who is adept at helping people like you file for bankruptcy in Nassau County, you’ll be on the path to financial freedom in a few short months – without having to always look over your shoulder.

As you begin the bankruptcy petition process with your Nassau County bankruptcy attorney, you’ll be asked to file a statement of intention regarding property secured by liens (usually a car or a house.) In essence, you must decide whether you want to keep (and be obligated to pay for) the asset in question, or if you want to give it up.

Most debts are dischargeable under the federal bankruptcy code, so you can choose to relinquish the asset and have the outstanding debt become eligible for discharge. While this may be a prudent move for many types of secured assets, most people are reluctant to part with their personal vehicle because they rely on it for transportation to and from work.

One method that your Nassau County bankruptcy attorney may counsel you on is a Reaffirmation of Debt. This process can help you keep your personal vehicle during the bankruptcy process – but be warned: A Reaffirmation of Debt is a formal agreement that renews your legal obligation to be financially responsible the property in question. The renewed debt also becomes ineligible for discharge.

Reaffirming a debt also involves a few intricacies which your Nassau County bankruptcy attorney will explain to you in greater detail. For example, even if you and the lender agree to the terms of a reaffirmation, the bankruptcy judge can override it if he or she feels the obligation is not in your best long-term interest.

Additionally, even though you obligate yourself to this new contract once you sign it, most states give you a window of opportunity to cancel it if you later reconsider (usually 45 to 60 days, but again your Nassau County bankruptcy attorney will advise you about your particular situation.)

As a matter of routine, most Nassau County bankruptcy attorneys caution against committing to a Reaffirmation of Debt because it undermines the very protections you are seeking to receive by filing for relief. However, in the right circumstances, a Reaffirmation of Debt may be the best course of action for people who have a steady source of income and can commit to honoring an ongoing installment obligation.

It’s important to weigh all the pros and cons before undertaking a Reaffirmation of Debt. A reputable Nassau County bankruptcy attorney will help you weigh your options so you can decide if reaffirming a debt is the right path for you.

When people become resigned to the reality that they will have to file bankruptcy on Long Island, they often assume it’s best to file immediately.

But that assumption oftentimes leads to a misstep – one that can cost you even more in the end. Depending on your circumstances, it may be wise to hold off on your decision to file for bankruptcy on Long Island. A reputable Long Island bankruptcy attorney can help you assess your unique circumstances, and determine whether filing immediately is truly in your best interest.

What are some circumstances where you should probably NOT file for bankruptcy on Long Island immediately?

• You Want to Stop Collections:  If the sole reason you want to file for bankruptcy on Long Island is because you want to stop the incessant stream of collection calls, you can do so under the Fair Debt Collection Practices Act. You need merely send a letter requesting creditors contact you only in writing and cease collection calls at your home or work. An experienced Long Island bankruptcy attorney can help you write (and send) the letter if you feel you need help doing so.
   
• Your Past Income Was High, But Has Since Dipped:  In order to file under Chapter 7 bankruptcy (liquidation bankruptcy), your Long Island bankruptcy attorney will tell you that you need to be able to pass a “means test.” If your past year’s income was higher than stipulated for your state, you are automatically precluded from a Chapter 7 filing. Instead, you will have to file under Chapter 13 (Restructuring) bankruptcy. If your income has dipped within the past six months, however, it may behoove you to hold off and not file for bankruptcy on Long Island now. By waiting six more months, your re-calculated past year’s income will be lower (which may then qualify you to file under Chapter 7.) A reputable Long Island bankruptcy attorney can help determine what timing may be right for you.

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If you’re struggling financially and have faced the looming specter of a lawsuit, foreclosure, or other legal action by a creditor, it can truly be an intimidating process – one that leaves you, the little man, playing David to the big-wig corporate Goliaths.

 

One cut-throat tool that bankruptcy lawyers in Suffolk County see creditors use is a Default Judgment – a legal means to force payment via court order. When a creditor sues you and you fail to appear, the judge can issue a Default Judgment that grants the plaintiff’s request for an award. If granted, a Default Judgment legally binds the defendant to pay the damages to the plaintiff (creditor) the amount sought in the complaint (and usually interest and court costs, too.)

 

If you’ve received a court summons, it’s imperative that you immediately consult with an expert bankruptcy attorney in Suffolk who can advise you how to proceed. If, however, you’ve already been subject to a Default Judgment, don’t think that you’ve lost and should give up. There are ways to fight (and even overturn) a Default Judgment, but you first you have to take action.

Your Suffolk Bankruptcy attorney will assess your situation and see if there are grounds to vacate (re-open) the Default Judgment. Usually there are two avenues to overturning a Default Judgment.

 

The first, an Excusable Default, can be awarded if you:

 

1. Have a reasonable excuse for missing your court appearance
2. A Meritorious Defense – a good defense as to why the Default Judgment should be re-opened and vacated.

 

 

 The second is a Lack of Personal Jurisdiction, meaning that you were improperly served with the summons (or never served at all.) Some common reasons that Suffolk attorneys see instances of improper service are:

 

1.     Sending the summons via a mail (instead of delivering it in person)

2.     Leaving it with a neighbor to give to you

3.     Delivering it to your old address

4.     Serving someone else who has your same name.

 

Because of the many legal complexities that fighting a Default Judgment entails, it’s crucial that you consult with a reputable attorneys in Suffolk & Nassau County who can fight for your rights and help you beat a Default Judgment.

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Nassau Bankruptcy Attorneys know that it’s not just civilians who are impacted by the economy. The economic downturn has affected people from all walks of life across America, including many of the over 1.4 million active duty military personnel serving in the United States Armed Forces. Even though service members enjoy employment stability themselves, circumstances (such as a spouse’s layoff or a health issue) can wreak havoc on a military family’s finances.

 

Because the American government wants to keep national defense strong, lawmakers realized that service members on active duty needed a method of protection to help them preserve their economic status and rights while they are away from home on deployment.

 

Thus, the Servicemembers’ Civil Relief Act (SCRA) was signed into law in December of 2003. This long overdue piece of legislation was hailed by Bankruptcy Attorneys in Nassau County for its depth of protection to American military personnel.

 

Primary protections include:

 

Protection from Default Judgments:

 

Rules now require that plaintiffs file an affidavit with the court stating whether the defendant is in the military or not. Additionally, the court cannot order an entry of judgment until the court has appointed an attorney to represent the defendant. The court may also make further decisions, orders, or judgments to help protect the rights of a service member. Your local Nassau Bankruptcy Attorney can advise you about these critical rights in further detail.

 

Stay of Proceedings (Where Service Member has Notice of Proceeding):

Prior to any final judgment in a civil matter involving a member of active-duty military, the service member covered by the SCRA may ask the court to stay the proceeding pursuant to 50 U.S.C. app. § 522. This stay grants the defendant a stay of at least 90 days (and sometimes longer). The application for a stay under this section requires additional documentation, and your experienced Bankruptcy attorney can advise you further on this matter.

 

These are just two of the many protections offered to military personnel under the Servicemembers’ Civil Relief Act.

 

One caveat:  While the SCRA offers full protection to active duty military personnel, only a portion applies to the nation’s approximately 848,000 reservists. If you’re currently serving in a reserve status, it’s important to consult with your Bankruptcy lawyer to discuss the exact extent of protections allowed to you under the SCRA.

 

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Google the term “Long Island bankruptcy lawyer”, and you’ll get about 159,000 results (without quotes, it zooms to a whopping 400,000!).

So how are consumers supposed to narrow down the overwhelming amount of choices and find the best Long Island bankruptcy lawyer for their unique situation?

While there are a slew of websites that abound in offering advice on finding the best lawyer for you, we offer a very simple method – one that works well for any situation, including finding the best Long Island bankruptcy lawyer for your particular needs.

This 3-P method of inquiry breaks down what can seem like an arduous and time-consuming task into very doable ‘baby steps’:

PROBLEM:

The first step in getting started is to determine exactly what your problem is. While this might seem relatively simple at first, you might be surprised at what you find.

For example, you might be having problems making your monthly mortgage payment, and feel that your only choice is to file bankruptcy. You “assume” you’ll need a Long Island bankruptcy lawyer.

But what if the reason you’re struggling to make your mortgage payment is really because of high credit card balances and/or interest rates, or that your adjustable mortgage rate skyrocketed and is now unaffordable?

In these two cases, you might be better served by an attorney who specializes in debt consolidation and reduction for the first scenario, and a lawyer who is adept at negotiating loan modifications for the latter.

PROWESS:

Let’s face it:  Experience does count – especially when your fate is in someone else’s hands.

Regardless of the specialty – whether you need a Long Island bankruptcy lawyer, personal injury lawyer, or an attorney who specializes in real estate matters, you need to do your homework and check credentials, backgrounds, and references.

Here is a quick checklist:

Education:  Where and when did the attorney graduate law school?

Experience:   How long has the attorney been practicing law, and how long in the specific area you’re considering hiring him for?

Credentials:  Is the attorney currently licensed to practice law, and if so, in what states?  Are they a member of the American Bar Association or the State Bar Association?  Do they have any additional memberships or affiliations? 

References:  Ask for references – both from current and former clients.

PERSONABLE:

Lastly, there’s the human factor. Despite a great education and years of experience, it’s also extremely important that you feel comfortable with your new attorney. If you feel rushed, or that you’re not being heard, it may be a good idea to listen to your gut and look elsewhere.

By following the simple 3-P method of finding legal help, you can take heart in knowing that you’ve done all you can to make an informed decision. Whether you need the services of a Long Island bankruptcy lawyer or a family law attorney, the 3-P method can help narrow down the choices, so you can find the right attorney for you.

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One of the most feared aspects of Long Island bankruptcy proceedings is the “341 Meeting” with creditors. This name is derived from the section of the Federal Bankruptcy Code, 11 U.S.C. 341, that requires a meeting to verify your financial information under oath. These meetings are usually scheduled around 30 days after the bankruptcy petition has been filed.

Most consumers approach this meeting with a sense of dread or apprehension, and one of the biggest reasons for that is the fear of confronting the creditors. However, creditors usually do not appear at this meeting (although they have the right to later contest or dispute any information given in their absence.)

If you have doubts about who will be at the meeting or what will occur, your Long Island bankruptcy lawyer can meet with you ahead of time to discuss the potential events that are likely to unfold, and can answer any questions you have in more detail.

Another common fear is the mistaken belief that you will have to appear before a judge. This is incorrect, as 341 Meetings are presided over by a bankruptcy trustee, not a judge. The trustee will oversee the meeting and ensure that responses are formally put on record.Rest assured, your Long Island bankruptcy attorney will look out for your interests, and advise you as necessary throughout the process.

One of the most pleasant surprises petitioners encounter is that 341 Meetings are usually short (sometimes lasting under five minutes!). While it is a momentous event to you, it’s really just a matter of business as usual for the trustee, who can hear upwards of 20 cases an hour if things go smoothly, as well as your experienced Long Island bankruptcy lawyer who will guide you through the day’s proceedings.

Remember – despite your apprehension, you’ve come this far in the process, and the 341 Meeting is just another step along the path towards financial recovery and freedom. By working with an expert Long Island Bankruptcy attorney, you’ll finish the day that much closer to the final outcome – a fresh start towards regaining your financial footing in life.

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