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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• - 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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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.

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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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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Many people mistakenly believe that bankruptcy is one all-encompassing concept – something that releases debtors from some or all of their debts.

However, the law takes a much more detailed approach to the concept of bankruptcy, and divides it into several sub-categories in an attempt to ensure that all parties are best served by the bankruptcy protection process. That’s why it’s critical to work with only an experienced bankruptcy attorney in Suffolk who knows the ins and outs of the bankruptcy process.

The two most common types of bankruptcies are Chapter 7 (also known as Liquidation bankruptcy) and Chapter 13 (known as Reorganization bankruptcy.) While both have their pros and cons, an experienced bankruptcy attorney in Suffolk can help guide you through the process, so you can decide which one is best for you.

Chapter 7 bankruptcy is commonly used when the debtor has few if any assets other than basic necessities (such as furniture and clothing.) Most unsecured debts can be eliminated completely, and the process often progresses much more rapidly than other types of bankruptcies. Again, a bankruptcy attorney in Suffolk can advise you in further detail if Chapter 7 might be right for you.

The goal of Chapter 13, on the other hand, is to reorganize your finances in order for you to pay off as much of the debt as you can, while having the remainder legally eliminated by the court if possible. One big attraction of Chapter 13 over Chapter 7 is that it lets you retain most of your property.

If you’re in a financial bind and wake up every morning wondering how you’ll get through the day, filing bankruptcy might be the right choice for you. While there are some downsides to filing bankruptcy, the benefits can be truly life changing.

Whichever option you’re contemplating, it’s imperative that you seek competent legal counsel from a reputable bankruptcy attorney in Suffolk, who can give you the advice you need, so you can start down the road to fiscal recovery.

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