As the economy slowly regains composure and as unemployment rates stabilize at around 9.1%, there are still many hard-working Americans feeling stressed about credit card debt and impending foreclosure and bankruptcy.

According to the Huffington Post, people on average carry around $44,000 in debt – mortgages, credit cards, auto loans and other consumer debt. That's a far bigger load than in the early 1980s, when unemployment topped 10 percent. In 1982, per capita debt totaled about $14,000 in today's dollars. Despite this, Americans are trying hard to save money and pay off debt in order to shed the stress that’s associated with not being able to keep up with finances.

Debt stress is not only relegated to the unemployed. With cost of living expenses skyrocketing and payroll hours and salaries being drastically reduced, it’s even difficult for those that are employed to keep up, let alone get ahead.

Attorney Ronald D. Weiss, P.C. understands this. Our Law Office is poised to consult and represent individuals and businesses located on Long Island, New York City and Westchester in bankruptcy proceedings under all Chapters of the Bankruptcy Code. We even offer free initial consultations so that your legal options are clearly outlined.

Let us help you rid yourself of the stress. Contact the Law Offices of Ronald D. Weiss, P.C.

If you have a massive amount of debt, including unsecured (credit card), a high mortgage payment, or other debt, bankruptcy can be an answer.

But it’s not always the right answer for your situation. Below is some bankruptcy information for Long Island residents to consider before filing bankruptcy in order to get rid of debt, particularly credit card debt.

If you’re considering bankruptcy, it’s important that you meet with a good attorney in order to get the best information for your situation.

For example, you may be able to regain control of your finances without having to resort to bankruptcy. Examine your financial situation carefully. Could you eliminate unnecessary expenses in order to have more money to pay toward your creditors? Could you sell your car, get rid of your cell phone, cancel the cable and/or gym membership? What about renting out a spare room?

Would you feel comfortable asking a relative for a loan? What about contacting the Consumer Credit Counseling Services (CCCS), a non-profit community service agency that, according to its website, is “dedicated to helping people with money problems.”

A CCCS counselor can help you put together an effective budget, set priorities for your finances, pay your debt down, thus reducing your stress and helping you achieve financial stability. In fact, if you and your CCCS counselor decide that a debt management program would fit your situation, you and your counselor together can develop a debt repayment plan, work with your creditors to lower your monthly payments, possibly eliminate – or reduce – fees, and even lower the number of calls you may be receiving from collection agencies.

If the specter of foreclosure is prompting you to seek bankruptcy information, Long Island law firms such as ours and/or an experienced real estate professional can help you research alternatives such as a short sale, a deed in lieu of foreclosure or even a modification of your mortgage to lower either the interest or your monthly payment.

Here at the Law Office of Ronald D. Weiss, P.C., we specialize in bankruptcy and foreclosure law, as well as foreclosure defense, reorganizations, mortgage modifications, and much more. Won’t you call us today so that we may learn more about your situation and suggest a financially prudent course of action? We look forward to hearing from you!

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!

If you’re thinking of filing Chapter 13 in Long Island, here’s a short overview of the process.

(An important note: the process is very complicated; you really will want to hire an attorney who’s an expert in Chapter 13′s many ins and outs.)

You’ll need to file what is known as a "bankruptcy petition" with the courts. This document — often dozens of pages thick — lists your debts, your assets and other important information about your finances. The bankruptcy petition must be put together in a very particular way an in a particular order.

Chapter 13 in Long Island will require that you and the court agree to a payment plan. The plan will detail how your Chapter 13 trustee will administer your debt during the bankruptcy. It will answer how much of your unsecured debt you’ll pay back. Will you keep your car? Will you catch up on your mortgage in order to stay away from foreclosure?

Once the repayment amount and is squared away, you’ll be paying it over 36 months (three years), so the courts will need to know precisely how to calculate your monthly payments so that you’ll be able to afford them.

Once your petition and payment plan are ready, your Chapter 13 Long Island attorney will submit them to the U.S. Bankruptcy Court. You’ve just filed for bankruptcy.

You will appear in court to answer some questions of the court. This is called the "meeting of creditors." You will be placed under oath under penalty of perjury to answer the questions.

Once you’ve had your day in court, your bankruptcy attorney will return to court at some point to make sure the Chapter 13 Long Island payment plan is fair to you and that you’re able to pay it. Once approved, the court will "confirm" your plan and you start submitting the monthly payments.

You then will mail your monthly payments to your Chapter 13 trustee. Because you’re not supposed to have much extra money (after all, you declared bankruptcy because of financial issues), you’ll need to watch your day-to-day spending carefully and not go over an amount as set by your payment plan.

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