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.

 

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.

 

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.