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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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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