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.

 

In many of the Nassau bankruptcy cases we work with, clients are weighed heavily under debt. Their minds immediately turn to getting debts discharged by filing for Nassau bankruptcy. It’s important to realize that in Nassau bankruptcy and places elsewhere, the debtor does not have the absolute right to have their debts discharged.

Under Chapter 7 bankruptcy in Nassau:

• • An objection to the debtor’s discharge may be filed by a creditor, by the trustee in the case. To object to the debtor’s discharge, a complaint must be filed in the bankruptcy court; this complaint starts a lawsuit that is referred to as an “adversary proceeding.”
• • The court may deny the debtor’s discharge for a variety of reasons including: failure to provide requested tax documents, failure to complete a personal financial management course; transfer or concealment of property, destruction or concealment of records, perjury and other fraudulent acts, failure to account for the loss of assets, violation of a court order or an earlier bankruptcy agreement.

In Chapter 12 and Chapter 13 Nassau bankruptcy:

• • The debtor is typically entitled to a discharge upon completion of all payments under terms of the bankruptcy.
• • Discharge may not occur if the debtor fails to complete a required course on personal financial management, if the debtor received a prior discharge in another bankruptcy case that occurred within certain time frames.
• • Unlike Chapter 7, creditors cannot object to a discharge if the debtor has completed making plan payments. However, creditors can object to confirmation of the repayment plan.

 

We often hear people filing for Suffolk bankruptcy asking anxious questions about losing the roof over their heads and life’s other basic necessities. If you too are considering filing Suffolk bankruptcy but harbor similar worries, read on.

In most, cases you will not lose your car or home.
If filing a Chapter 7 bankruptcy in Suffolk, you will retain your home and car during your bankruptcy proceedings as long as your equity in the property is fully exempt. If your property is not fully exempt, you may still be able to keep your property by filing a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy.

In the case of a Chapter 13 bankruptcy, however, you will be required to pay over a set course of time at least the portion of equity in the property that is the non-exempt as well as any amount you are behind on your home or auto loan. You will also be required to continue to make your regular monthly loan payments.

Your utility services will not be affected.
Public utilities companies, such as electric and water, cannot cut off service because you have filed for bankruptcy. While you don’t have to pay utility bills that surface after your Suffolk bankruptcy petition is filed, the utility company can require a deposit for future service.

You will not lose your job or be discriminated against if seeking employment.
Federal bankruptcy law prohibits discrimination of debtors by employers. It is illegal for employers—for the sole reason that you are about to file for bankruptcy, are undergoing bankruptcy proceedings or have a history of bankruptcy—to terminate an employee or discriminate with respect to hiring.

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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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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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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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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The choice to pursue bankruptcy protection is never an easy one, and should not be made lightly.

However, many people – after exploring all of their options with a reputable bankruptcy attorney in Nassau – come to the realization that bankruptcy is indeed the only way out from under their financial burdens.

For those with assets, the primary advantage of Chapter 13 is the ability of the debtor to retain valuable assets (such as a home), that they would otherwise be forced to sell under Chapter 7.

Chapter 13 also gives debtors a longer period of time to pay their debt than other filing options, and a professional bankruptcy attorney in Nassau can advise you as to what timeframes you might face.

Additional advantages of Chapter 13 include:

• - You keep all of your property – both exempt and non-exempt.
• - You have protection against creditors’ collection efforts, as well as from wage garnishment.
• - You are protected from foreclosure on your home.
• - You can file Chapter 13 in the future as needed. You’re not limited to filing limitations like you would be with Chapter 7.

However, the benefits of a Chapter 13 reorganization bankruptcy also has some counterpoint drawbacks which need to be considered carefully by you and your bankruptcy attorney in Nassau before making a final decision:

• - Your debt must be under $1,000,000, with unsecured usually less than $250,000 and secured less than $750,000.
• - You pay your debts out of remaining monthly disposable (post-bankruptcy) income, greatly restricting availability and access to cash.
• - Not all of the debts are subject to being repaid during the time period of the reorganization. Some may survive, requiring you to keep paying.
• - As with any bankruptcy action, there will be long-term effects to your credit rating.

Filing Chapter 13 bankruptcy may be right for you if you have assets and earnestly want to work with your creditors in order to restructure your debt. By working with an expert bankruptcy attorney in Nassau, you can review your unique situation and get the best legal counsel for your specific circumstances.

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