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.

• - First and foremost, we can help determine which chapter of bankruptcy (chapter 7, 13, or 11) to file under.
• - All required documents will be correctly completed and filed by our bankruptcy lawyers.
• - Our Nassau bankruptcy attorneys’ experience facilitates more quickly the “automatic stay” that takes effect as soon as your Nassau bankruptcy case is filed. This will provide immediate relief from harassing phone calls and mail from collectors. If being sued over an unsecured debt, the automatic stay can also stop wage garnishment.
• - Certain state and federal level exemptions allow a person to keep varying degrees of their personal property when filing for bankruptcy. Our Nassau bankruptcy lawyers help you understand these exemptions and recommend how best to value personal and real property on the schedules.
• - Our bankruptcy lawyers can evaluate your debts to determine which are dischargeable, which are at risk for being nondischargeable and how to prepare accordingly for each.
• - We can help you to decide which creditors to list as secured, priority, and unsecured.
• - If other debts are discovered after you file for bankruptcy, our Nassau bankruptcy attorneys can amend your case to include these additional debts.
• - At the “Meeting of Creditors” held pursuant to the Bankruptcy Code, our bankruptcy lawyers will represent you instead of your having to represent yourself.

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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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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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Tests. Not only are they a dreaded part of high school, they also play a critical role in determining eligibility for filing Chapter 7 bankruptcy in Long Island.

Chapter 7 – also known as liquidation bankruptcy – is used for those consumers who have few assets and/or limited means to meet their financial obligations.

Many people mistakenly believe that if they own a valuable asset (such as a home), that they are disqualified from filing Chapter 7. Conversely, some people may think that because they have what they deem to be little disposable income left over at the end of the month, they’re automatically eligible to file for Chapter 7 bankruptcy in Long Island.

There is no hard, fast rule that denies homeowners the right to file for Chapter 7 bankruptcy in Long Island (nor conversely automatically grants those with limited discretionary income protections under Chapter 7 either.)

Instead, the Bankruptcy Court relies on what is known as the Means Test – a formula that takes numerous factors into consideration and then calculates whether a debtor qualifies to file for a Chapter 7 bankruptcy in Long Island.

A Means to an End: Your State’s Median Income

The first step to getting started in implementing the Means Test is to determine whether your income is above or below your state’s median income. In NYC, for example, if you are below the state median then you automatically qualify to file Chapter 7 bankruptcy in Long Island.

If you are above your state’s median, then you’ll need to complete the Means Test in its entirety. The Means Test is merely a formula that deducts certain monthly expenses from your current average monthly income to determine your final official level of disposable income.

Why Use the Means Test?

The purpose of the Means Test is to delineate those who earnestly cannot pay their debts, from those who have some means to do so. Many people want to file a Chapter 7 bankruptcy in Long Island, believing that it will erase all of their debts. While this can sometimes be the case, there are also many instances where this is not so.

Furthermore, for those with assets such as a home, Chapter 7 may not be the right solution for you. Only by working with a competent attorney who handles Chapter 7 bankruptcy in Long Island will you be able to determine which filing is right for you.

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Filing bankruptcy is often a last resort for most people who’ve done everything in their power to try to pay their debts. After exhausting all other avenues of settlement, bankruptcy is often the only viable solution to help people regain their financial footing.

Because of the complexities of the legal system, it’s prudent to seek counsel from a local bankruptcy lawyer in Nassau who can help guide you through the legal process. One key point your lawyer will go over with you is what form of bankruptcy filing is right for you.

Chapter 7 bankruptcy – also known as Liquidation Bankruptcy – is commonly used when the debtor has little property except for basic necessities (such as furniture and clothing.) In order to qualify, however, a petitioner has to have little or no money left after paying basic monthly expenses, but your bankruptcy lawyer in Nassau can advise you in greater detail regarding this criteria. Other things typical of a Chapter 7 filing include:

• - Most unsecured debts can be completely eliminated
• - The process is relatively quick compared to other types of filings
• - You gain the benefit of protection from contact from creditors, both during the filing and after the debts are discharged.
• - Many courts require mandatory credit counseling, which can help you make the most of the fresh start you’re embarking upon.

The process for commencing a Chapter 7 bankruptcy starts with a comprehensive consultation with a bankruptcy lawyer in Nassau, who will begin the process to prepare the petition.

While the benefits of Chapter 7 bankruptcy are grand for those in debt, there are downsides that need to be weighed, including losing most (if not all) of your non-essential assets, having your personal business on public record, and a negative impact on your credit history. That said, Chapter 7 bankruptcy has helped thousands of people regain their financial footing, and a reputable bankruptcy lawyer in Nassau can help put you back onto the road to financial freedom.

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