If you're considering filing bankruptcy, you should know that bankruptcy laws in Long Island and around the country changed considerably in 2005, when Congress made changes to the Bankruptcy Code.

As a result, the bankruptcy process is now more complex. In addition, those filing bankruptcy and their lawyers now have it harder when it comes to making a case for their bankruptcy.

Yet…don't panic. While bankruptcy laws in Long Island are more complex, that doesn't mean you won't be able to qualify for Chapter 7 bankruptcy or Chapter 13. In fact, many people who no longer qualify for Chapter 7 often are able to file Chapter 13.d

Two of the Major Changes to Bankruptcy Laws in Long Island

1. The new laws require that those considering filing bankruptcy must submit to credit counseling prior to filing. You'll also have to take part in what is known as budget counseling once you've filed. These counseling sessions usually are just 30 minutes on the phone with a court-approved credit counseling agency.
2. Perhaps the most important change to bankruptcy laws in Long Island is what is known as the "means test." You'll really need a bankruptcy attorney to help you wend your way through this requirement, as it involves a complex series of calculations designed by the government that establishes whether you qualify for a Chapter 7 bankruptcy. No longer can anyone file Chapter 7 — you must meet the requirements.

The "means test" determines whether or not you have the financial means to honor all or some of your obligations (that is, pay your debts). If you can, then you may not be able to file Chapter 7 and you'll have to file a repayment plan via Chapter 13.

As a rule of thumb, if your family's income is below the median that New York State deems it should be for a family of your size, then you should be able to pass the "means test" and file Chapter 7.

If you have any questions whatsoever about bankruptcy laws in Long Island, contact the law firm of Ronald D. Weiss, Esq. We've helped hundreds of people file bankruptcy under the new laws and we'll be able to help you find the best solution to your financial challenges. We look forward to hearing from you!

The global economy is yet to recover from the devastating effects of the recent financial tsunami. The impact of the financial meltdown on the U.S has been particularly shocking and it seems that the recession simply refuses to go away from America. Millions of people are falling in debt and resorting to debt management programs or filing bankruptcy. The soaring bankruptcy rates in the U.S testify the fact. Data from the administrative office of the U.S courts reveal that more than 1.5 million people filed bankruptcy in 2010. As bankruptcy filings are steadily increasing, protection of intellectual property is becoming more and more important. So it is important for you to know how to protect your rights to intellectual property in bankruptcy. Let’s discuss it in detail.

What does intellectual property include?

1)    Patent rights

2)    Copyright Patents

3)    Trade secrets

4)    Trademark and service mark rights

Invention of a unique product/process or improvement over an existing product can be protected by patent rights created by the federal law. Innovation is rewarded by providing the inventor exclusive rights over his invention for a certain period of time (usually 17 years). Copyrights protect “original work of authorship” in different mediums of expression like books, music etc. Trade secrets refer to things like know-how, formula etc. which are guarded by the business owners and can have considerable impact if leaked out. They are protected by state laws. Trademarks and service marks are symbols, words etc which represents a business and are unique to it. Both federal as well as state laws protect them.  

How can you protect your rights to intellectual property in Bankruptcy

If you obtain a security interest in intellectual property then it should be perfected. Otherwise, it can turn void in bankruptcy. To perfect the security interests, you should file a Uniform Financial Code (UCC) financing statement and a proper agreement should be recorded in the Patent and Trademark Office or the Copyright office. The perfection of security interests can be tricky and the agreement that you sign for collateral like intellectual property should be highly specialized for the purpose.

The security agreement should include the existing and to be acquired or created intellectual property.  Related things like license rights, proceeds and income etc. should also be a part of the agreement and should be mentioned in detail. This would make it mandatory for the debtor to inform the creditor in case he acquires or creates intellectual property. Since this is a secured debt, the rights of the creditor should be clearly stated in case of a default.  Also, the agreement should mention that the debtor would pay maintenance fee for the patent and would inform the creditor in case of any infringement of intellectual property rights.

In a bankruptcy case, a creditor can often encounter a situation where the collateral is copyrightable but it has not been registered with the Copyright Office. In such a situation, the creditor must ask the debtor to register the collateral with the Copyright office. Otherwise, the creditor will end up losing the security interest in the intellectual property since it is not perfected.

Do you remember the Avalon Software case? The software programs, which comprised of a major part of the debtor’s assets, were not registered and the creditor was found unperfected. Therefore, the creditor lost claim to those assets and incurred substantial losses.

Protecting your rights to intellectual property in bankruptcy is not an easy job and involves substantial preparation on your part. So make sure you remember the above points before you proceed.

If you’ve decided to file bankruptcy, information in Long Island is easy to come by. Still, it’s nice to be a bit forearmed as you wend your way through the bankruptcy process.

Here are some common bankruptcy terms to help you understand your court proceedings a bit better.

Bankruptcy: This is the legal procedure by which people and businesses can deal with debt problems. More specifically, these are cases filed under Title 11 of the United States Code (also known as the Bankruptcy Code).

Chapter 7: This is the section of the Bankruptcy Code that allows for "liquidation" (the sale) of the "non-exempt" property of the debtor to pay all or part of the debtors to creditors.

Exempt Property: The property that a debtor will be allowed to keep, in a bankruptcy.

Chapter 11: The reorganization of your debts instead of the liquidation of them. The court will sell a debtor’s valuable assets and give proceeds to creditors.

Chapter 13: The section of the Bankruptcy Code that allows an individual with regular income to discharge applicable debts over a period of time (usually three to five years).

Confirmation: The judge’s approval of a bankruptcy reorganization plan.

Consumer Debts: All of your debt that you have accrued for your personal need (as opposed to a company’s debts). Consumer debts typically are credit cards, car loans, etc.

Secured Debt: This is debt that’s backed by a pledge of collateral, a lien or a mortgage. Creditors have the right to pursue secured debt that has fallen into default.

Equity: The value of your property left over after debt and any liens are paid off. For example, if you have a home valued at $300,000 and you carry a $150,000 mortgage, you have $150,000 in equity.

Filing bankruptcy never should be taken lightly. The most important bankruptcy information in Long Island you should remember is this: Bankruptcy can disrupt your life for years after filing. It will affect your ability to purchase get loan to purchase cars, homes, etc., and it even could affect your ability to get a job (some employers check a person’s credit rating before hiring).

Yet if you’re swimming in debt, if your life is unmanageable and you wonder how you will feed your family without some financial relief, then bankruptcy may be the right option for you.

The operative word is may. If you’re considering filing bankruptcy, please get the correct bankruptcy information in Long Island by calling our offices. We’re Long Island Bankruptcy & Foreclosure, the Law Office of Ronald D. Weiss, P.C. and we’re here to help you decide if bankruptcy is the right route for you to take and to help you make your way through it if is. Contact us today!

If you believe your financial situation is so dire that you’re considering filing for bankruptcy protection in Long Island, you’re in good company: about 1.53 million consumers across the country filed bankruptcy petitions in 2010, a nine percent increase over 2009.

Knowing that you’re not alone is small comfort, however. But if your finances are in such poor shape due to job loss, home repossession, or health issues of yourself or a loved one and you’re considering taking this most serious of steps, consider this move very carefully because you may not see the relief you expect. In fact, you could end up with even more problems!

First of all, never think of bankruptcy as some sort of "quick fix" for your financial woes. Check for other alternatives first. You’ll want to explore all other avenues for your situation because if you file for bankruptcy protection you’ll take a big hit to your credit rating. This hit will happen no matter what type of bankruptcy (Chapter 7, Chapter 13, etc.) you file. Once you’ve filed for bankruptcy, you may have a hard time getting credit and difficulty finding a job (some employers take your credit rating into account when considering candidates).

First of all, you need to carefully examine whether you really do have the ability to pay your obligations (your debt). Look at how much money you owe, how much your income is (and if it’s regular) and how much of that income you need for basic living expenses. You may find that you can pay your debt without filing for bankruptcy.

Understand that bankruptcy protection in Long Island won’t cover all of your debts, so you’ll need to figure out what debts you’ll still have to pay. You can choose to have your non-exempt property liquidated (sold) or take on a debt repayment plan. Still, you’ll find it essential that you know what you’ll still owe after you file bankruptcy papers.

As you search for an attorney to help you file bankruptcy protection, Long Island has many great ones. Here are some tips to help you find them:

1. Ask your CPA or other attorneys you may know for the name of a bankruptcy attorney they think is good. If you don’t have a CPA or know other attorneys, check with your county’s local bar association.
2. Once you have some referrals, call at least three and ask for a meeting. Almost all will provide this first appointment at no charge, but be sure to ask, just in case.
3. If the attorney charges a fee for this first appointment, don’t turn him or her down automatically. You want the best attorney to handle your bankruptcy protection in Long Island case and if you feel the fee-attorney is the best, paying for your first consultation could be a smart move.

Are you facing an astounding amount of debt? Are you being inundated with creditors calling night and day, every day? Are you worried that you may lose your home to foreclosure? Filing Chapter 7 in Long Island may be your answer.

Filing bankruptcy under Chapter 7 of the United States Bankruptcy Code means your "non-exempt" assets will be liquidated and the proceeds distributed to your creditors. However, filing Chapter 7 in Long Island also means creditors will stop bothering you and all dept collection efforts by them will cease. What’s more, any foreclosure proceedings against you could be stayed, giving you some breathing room to regroup and find an alternative to foreclosure. In addition, Chapter 7 can take just three to six months from start to finish, meaning your debt could be discharged relatively quickly.

However — and this is big — filing Chapter 7 does have disadvantages. For example, not all of your debt can be discharged, including child and spousal support payments and many student loans and taxes; you still could be liable for these debts. You could lose property and assets that the court deems not covered by Chapter 7 protection. If the court deems it so, these non-exempt assets will be seized and sold, with the proceeds used to discharge some of your debt. Examples of property/assets often considered to be "non-exempt" are: family heirlooms; cash, bank accounts, stocks, bonds, and other investments; a second vehicle (car or truck); a vacation home; collectibles (stamps, coins, etc.)

In addition, filing Chapter 7 in Long Island more than likely will have a very negative effect on your credit rating, making it virtually impossible for you to get a car loan — or just about any type of loan — for several years. Many employers today also are looking at bankruptcy in a bad light and may not hire you because of your filing.

Finally, you can’t look at a Chapter 7 bankruptcy as a quick "solution" to your financial problems whenever they come up. The courts allow people only one Chapter 7 filing every six years.

Did you know you’re not required to hire an attorney to represent you in Chapter 7 proceedings? It may not be required, but it is wise. Filing Chapter 7 in Long Island is complicated and full of technical rules and procedures — it can be easy to make a mistake and see your case dismissed as a result.

In addition, you have a greater chance of seeing your assets and property protected when you have a practiced bankruptcy lawyer in your corner. A good attorney can look at your situation through objective eyes, figure out what property/assets are exempt and work hard to protect them from court-ordered liquidation.

Yes. If you’ve filed for bankruptcy on Long Island, bankruptcy law will protect you from creditors attempting to collect debt or repossess your property without permission of the Long Island bankruptcy court. In bankruptcy law terms, this attempt to collect violates the “automatic stay.”

An automatic stay refers to the mandate that stops creditors from all efforts to collect from you as soon as you file for bankruptcy. No more calls, no more letters, no more lawsuits—they must stop doing everything to make you pay.

Being represented by one of our Long Island bankruptcy lawyers gives you additional leverage in dealings with creditors. You should give the creditor your bankruptcy attorney’s name and phone number. Because the Long Island bankruptcy court may punish a creditor who violates the bankruptcy law’s automatic stay, it can be wise to work with a bankruptcy attorney about creditor issues in order to seek further protection from the court.

If you’ve been considering filing a Long Island bankruptcy case, I’m sure you’ve been mining the Internet for bankruptcy information. I’m also certain you’ve noticed that bankruptcy laws, in Long Island or elsewhere, always mention the word “discharge.” As bankruptcy lawyers on Long Island, we often are asked what discharge means under bankruptcy law.

Simply put, a discharge means you no longer have an obligation to pay your debt. It also means your creditors are not allowed to force you to repay. While this piece of bankruptcy information may sound particularly attractive, you should be aware that not all your debts are eligible to be discharged. Our Long Island bankruptcy attorneys can help you navigate the following situations that affect the discharge of your debt and various types of non-dischargeable debts.

• Only debts that you owed and listed at the time you filed for bankruptcy, not those you incurred after filing, are eligible to be discharged.
• If a relative, friend or some other person has co-signed or guaranteed your loan, his/her obligation is not discharged.
• If you have property that is collateral for a loan, the creditor may still be able to repossess that property if you do not repay the loan.
• Debts you have incurred through fraud or by willful or malicious actions are not dischargable. For example, a loan you obtained when you knew you could not repay or certain credit card purchases made immediately before filing bankruptcy, especially the purchases are "luxury" items or services such as a vacation.
• Debts to creditors you did not list in your bankruptcy paperwork are not dischargable.
• Domestic support obligations such as alimony and child support debts are not dischargable.
• Debts payable to any form of government, such as a city or state are not dischargable. • Restitution imposed on you as part of a criminal sentence is not dischargable.
• Student loans are not dischargable.

Those considering filing a Chapter 7 or Chapter 13 Suffolk County bankruptcy case can rest (a little) easier knowing that in most cases pension and retirement funds are protected. There are a few limitations, of course, which is why talking with a bankruptcy lawyer familiar with bankruptcy in Suffolk can go a long way in safeguarding your remaining assets.

Under new bankruptcy laws revised in 2005, nearly all retirement and pension plan funds are exempt from creditors. In most instances, the exemption amounts are unlimited, thereby protecting the entire retirement account.

Plans subject to this exemption include:

• - 401(k)s
• - 403(b)s
• - IRAs (Roth, SEP, and SIMPLE)
• - Keoghs
• - profit-sharing plans
• - money purchase plans
• - defined-benefit plans

Of course when it comes to bankruptcy in Suffolk or anywhere, exceptions exist and nothing is black and white. For example, in the case of traditional and Roth IRAs, the amount of money off limits to creditors is capped at $1,095,000 per person (an amount adjusted every three years for cost of living increases). If you have more than one of these types of IRA’s, this cap applies to the combined total across all accounts, and any money in excess of the limit can be used to pay back your creditors. Also not exempt are retirement benefits paid to you as income.

Additional differences with retirement fund exemptions exist between Chapter 7 and Chapter 13. Because of this—and the fact that no two Suffolk bankruptcy cases are alike—working with a lawyer experienced with Suffolk bankruptcy proceedings can help make your golden years shine much brighter.

Businesses considering filing for bankruptcy in Nassau County have two bankruptcy options: Chapter 7 and Chapter 11. Each type of bankruptcy has advantages and disadvantages. Our lawyers experienced with Nassau bankruptcy understand the ins-and-outs of each filing type and can help you sort out which bankruptcy option is best for your Nassau County business.

Chapter 7 bankruptcy
Chapter 7 bankruptcy requires the selling off of a company’s property to pay debts. After filing a petition in Nassau County bankruptcy court listing all of your business’s property, debts and financial history, the court appoints a trustee to sell some of the business’s property to pay its debts. Some debts will be discharged and not have to be paid. Other debts are not dischargeable, such as recent taxes, debts from prior bankruptcy and penalties payable to the government.

Quick facts:

• - Faster and simpler than Chapter 11
• - Requires only one court visit to file the petition
• - Some property must be sold
• - Involves a court-appointed trustee to manage the bankruptcy
• Typically results in the company going out of business entirely

Chapter 11 bankruptcy
In Chapter 11 bankruptcy, the business can reorganize its finances and eventually pay off its debts. Like Chapter 7, the process begins by filing a petition for Chapter 11 bankruptcy with the Nassau County bankruptcy court. The business then gets 120 days to come up with a viable plan to reorganize and eliminate unprofitable parts of the business. The plan must be approved by the company’s creditors and explain how the company plans to pay those creditors.

Quick facts:

• - The company likely remains in business after bankruptcy
• - Property does not need to be sold
• - Debts must eventually be paid
• - No court-appointed trustee is required because the business remains in operation
• - Longer and more complex than Chapter 7

As experienced bankruptcy attorneys in Nassau County, we find people file for bankruptcy for a range of reasons. Each bankruptcy case is unique and our bankruptcy attorneys can explain what will happen to you, your debts and your property when filing for bankruptcy in Nassau. That’s why before rushing to file, we strongly recommend that you talk to a lawyer familiar with the bankruptcy process in the Nassau County area.

Some people file a bankruptcy case when they cannot pay their current bills. Some file when they think they will be unable to pay their future bills. Others suffer from emotional distress and depression because their financial situation is more than they can handle and are looking to release their current debt in order to have their income and property secure for themselves and their family in the future. Many people who have had their wages garnished also benefit from filing for bankruptcy because bankruptcy can stop the garnishment and in some cases even get back some of the money already garnished.

Here are some scenarios our attorneys commonly see in Nassau County that can be effectively resolved through filing for bankruptcy:

• • You are facing foreclosure proceedings against your home.
• • You are being harassed by collection agencies.
• • Your wages and/or bank account have been garnished.
• • Your total debt is more than you could pay, even over a number of years.
• • Your payments on more than one bill exceed 30 days overdue.
• • You have lawsuits pending against you.
• • You have high medical bills not covered by insurance.
• • You are unable to pay income taxes that you currently owe.
• • You have few assets and little or no savings.
• • You have had property repossessed.

If you can identify with any of these situations, filing for bankruptcy may give you a new start. Because of the many rules and regulations governing bankruptcies, it is important to seek council from an experienced Nassau County bankruptcy attorney.