If you have a massive amount of debt, including unsecured (credit card), a high mortgage payment, or other debt, bankruptcy can be an answer.

 

But it’s not always the right answer for your situation. Below is some bankruptcy information for Long Island residents to consider before filing bankruptcy in order to get rid of debt, particularly credit card debt.

 

If you’re considering bankruptcy, it’s important that you meet with a good attorney in order to get the best information for your situation.

 

For example, you may be able to regain control of your finances without having to resort to bankruptcy. Examine your financial situation carefully. Could you eliminate unnecessary expenses in order to have more money to pay toward your creditors? Could you sell your car, get rid of your cell phone, cancel the cable and/or gym membership? What about renting out a spare room?

 

Would you feel comfortable asking a relative for a loan? What about contacting the Consumer Credit Counseling Services (CCCS), a non-profit community service agency that, according to its website, is “dedicated to helping people with money problems.”

 

A CCCS counselor can help you put together an effective budget, set priorities for your finances, pay your debt down, thus reducing your stress and helping you achieve financial stability. In fact, if you and your CCCS counselor decide that a debt management program would fit your situation, you and your counselor together can develop a debt repayment plan, work with your creditors to lower your monthly payments, possibly eliminate – or reduce – fees, and even lower the number of calls you may be receiving from collection agencies.

 

If the specter of foreclosure is prompting you to seek bankruptcy information, Long Island law firms such as ours and/or an experienced real estate professional can help you research alternatives such as a short sale, a deed in lieu of foreclosure or even a modification of your mortgage to lower either the interest or your monthly payment.

 

Here at the Law Office of Ronald D. Weiss, P.C., we specialize in bankruptcy and foreclosure law, as well as foreclosure defense, reorganizations, mortgage modifications, and much more. Won’t you call us today so that we may learn more about your situation and suggest a financially prudent course of action? We look forward to hearing from you!

If you're considering filing bankruptcy, you should know that bankruptcy laws in Long Island and around the country changed considerably in 2005, when Congress made changes to the Bankruptcy Code.

As a result, the bankruptcy process is now more complex. In addition, those filing bankruptcy and their lawyers now have it harder when it comes to making a case for their bankruptcy.

Yet…don't panic. While bankruptcy laws in Long Island are more complex, that doesn't mean you won't be able to qualify for Chapter 7 bankruptcy or Chapter 13. In fact, many people who no longer qualify for Chapter 7 often are able to file Chapter 13.d

Two of the Major Changes to Bankruptcy Laws in Long Island

1. The new laws require that those considering filing bankruptcy must submit to credit counseling prior to filing. You'll also have to take part in what is known as budget counseling once you've filed. These counseling sessions usually are just 30 minutes on the phone with a court-approved credit counseling agency.
2. Perhaps the most important change to bankruptcy laws in Long Island is what is known as the "means test." You'll really need a bankruptcy attorney to help you wend your way through this requirement, as it involves a complex series of calculations designed by the government that establishes whether you qualify for a Chapter 7 bankruptcy. No longer can anyone file Chapter 7 — you must meet the requirements.

The "means test" determines whether or not you have the financial means to honor all or some of your obligations (that is, pay your debts). If you can, then you may not be able to file Chapter 7 and you'll have to file a repayment plan via Chapter 13.

As a rule of thumb, if your family's income is below the median that New York State deems it should be for a family of your size, then you should be able to pass the "means test" and file Chapter 7.

If you have any questions whatsoever about bankruptcy laws in Long Island, contact the law firm of Ronald D. Weiss, Esq. We've helped hundreds of people file bankruptcy under the new laws and we'll be able to help you find the best solution to your financial challenges. We look forward to hearing from you!

If you’ve decided to file bankruptcy, information in Long Island is easy to come by. Still, it’s nice to be a bit forearmed as you wend your way through the bankruptcy process.

 

Here are some common bankruptcy terms to help you understand your court proceedings a bit better.

 

Bankruptcy: This is the legal procedure by which people and businesses can deal with debt problems. More specifically, these are cases filed under Title 11 of the United States Code (also known as the Bankruptcy Code).

 

Chapter 7: This is the section of the Bankruptcy Code that allows for "liquidation" (the sale) of the "non-exempt" property of the debtor to pay all or part of the debtors to creditors.

 

Exempt Property: The property that a debtor will be allowed to keep, in a bankruptcy.

 

Chapter 11: The reorganization of your debts instead of the liquidation of them. The court will sell a debtor’s valuable assets and give proceeds to creditors.

 

Chapter 13: The section of the Bankruptcy Code that allows an individual with regular income to discharge applicable debts over a period of time (usually three to five years).

 

Confirmation: The judge’s approval of a bankruptcy reorganization plan.

Consumer Debts: All of your debt that you have accrued for your personal need (as opposed to a company’s debts). Consumer debts typically are credit cards, car loans, etc.

 

Secured Debt: This is debt that’s backed by a pledge of collateral, a lien or a mortgage. Creditors have the right to pursue secured debt that has fallen into default.

 

Equity: The value of your property left over after debt and any liens are paid off. For example, if you have a home valued at $300,000 and you carry a $150,000 mortgage, you have $150,000 in equity.

 

Filing bankruptcy never should be taken lightly. The most important bankruptcy information in Long Island you should remember is this: Bankruptcy can disrupt your life for years after filing. It will affect your ability to purchase get loan to purchase cars, homes, etc., and it even could affect your ability to get a job (some employers check a person’s credit rating before hiring).

 

Yet if you’re swimming in debt, if your life is unmanageable and you wonder how you will feed your family without some financial relief, then bankruptcy may be the right option for you.

 

The operative word is may. If you’re considering filing bankruptcy, please get the correct bankruptcy information in Long Island by calling our offices. We’re Long Island Bankruptcy & Foreclosure, the Law Office of Ronald D. Weiss, P.C. and we’re here to help you decide if bankruptcy is the right route for you to take and to help you make your way through it if is. Contact us today!

 

If you believe your financial situation is so dire that you’re considering filing for bankruptcy protection in Long Island, you’re in good company: about 1.53 million consumers across the country filed bankruptcy petitions in 2010, a nine percent increase over 2009.

 

Knowing that you’re not alone is small comfort, however. But if your finances are in such poor shape due to job loss, home repossession, or health issues of yourself or a loved one and you’re considering taking this most serious of steps, consider this move very carefully because you may not see the relief you expect. In fact, you could end up with even more problems!

 

First of all, never think of bankruptcy as some sort of "quick fix" for your financial woes. Check for other alternatives first. You’ll want to explore all other avenues for your situation because if you file for bankruptcy protection you’ll take a big hit to your credit rating. This hit will happen no matter what type of bankruptcy (Chapter 7, Chapter 13, etc.) you file. Once you’ve filed for bankruptcy, you may have a hard time getting credit and difficulty finding a job (some employers take your credit rating into account when considering candidates).

 

First of all, you need to carefully examine whether you really do have the ability to pay your obligations (your debt). Look at how much money you owe, how much your income is (and if it’s regular) and how much of that income you need for basic living expenses. You may find that you can pay your debt without filing for bankruptcy.

Understand that bankruptcy protection in Long Island won’t cover all of your debts, so you’ll need to figure out what debts you’ll still have to pay. You can choose to have your non-exempt property liquidated (sold) or take on a debt repayment plan. Still, you’ll find it essential that you know what you’ll still owe after you file bankruptcy papers.

 

As you search for an attorney to help you file bankruptcy protection, Long Island has many great ones. Here are some tips to help you find them:

 

1. Ask your CPA or other attorneys you may know for the name of a bankruptcy attorney they think is good. If you don’t have a CPA or know other attorneys, check with your county’s local bar association.
2. Once you have some referrals, call at least three and ask for a meeting. Almost all will provide this first appointment at no charge, but be sure to ask, just in case.
3. If the attorney charges a fee for this first appointment, don’t turn him or her down automatically. You want the best attorney to handle your bankruptcy protection in Long Island case and if you feel the fee-attorney is the best, paying for your first consultation could be a smart move.

 

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.

 

If you’ve been considering filing a Long Island bankruptcy case, I’m sure you’ve been mining the Internet for bankruptcy information. I’m also certain you’ve noticed that bankruptcy laws, in Long Island or elsewhere, always mention the word “discharge.” As bankruptcy lawyers on Long Island, we often are asked what discharge means under bankruptcy law.

Simply put, a discharge means you no longer have an obligation to pay your debt. It also means your creditors are not allowed to force you to repay. While this piece of bankruptcy information may sound particularly attractive, you should be aware that not all your debts are eligible to be discharged. Our Long Island bankruptcy attorneys can help you navigate the following situations that affect the discharge of your debt and various types of non-dischargeable debts.

• Only debts that you owed and listed at the time you filed for bankruptcy, not those you incurred after filing, are eligible to be discharged.
• If a relative, friend or some other person has co-signed or guaranteed your loan, his/her obligation is not discharged.
• If you have property that is collateral for a loan, the creditor may still be able to repossess that property if you do not repay the loan.
• Debts you have incurred through fraud or by willful or malicious actions are not dischargable. For example, a loan you obtained when you knew you could not repay or certain credit card purchases made immediately before filing bankruptcy, especially the purchases are "luxury" items or services such as a vacation.
• Debts to creditors you did not list in your bankruptcy paperwork are not dischargable.
• Domestic support obligations such as alimony and child support debts are not dischargable.
• Debts payable to any form of government, such as a city or state are not dischargable. • Restitution imposed on you as part of a criminal sentence is not dischargable.
• Student loans are not dischargable.

 

Those considering filing a Chapter 7 or Chapter 13 Suffolk County bankruptcy case can rest (a little) easier knowing that in most cases pension and retirement funds are protected. There are a few limitations, of course, which is why talking with a bankruptcy lawyer familiar with bankruptcy in Suffolk can go a long way in safeguarding your remaining assets.

 

Under new bankruptcy laws revised in 2005, nearly all retirement and pension plan funds are exempt from creditors. In most instances, the exemption amounts are unlimited, thereby protecting the entire retirement account.

 

Plans subject to this exemption include:

 

• - 401(k)s
• - 403(b)s
• - IRAs (Roth, SEP, and SIMPLE)
• - Keoghs
• - profit-sharing plans
• - money purchase plans
• - defined-benefit plans

 

Of course when it comes to bankruptcy in Suffolk or anywhere, exceptions exist and nothing is black and white. For example, in the case of traditional and Roth IRAs, the amount of money off limits to creditors is capped at $1,095,000 per person (an amount adjusted every three years for cost of living increases). If you have more than one of these types of IRA’s, this cap applies to the combined total across all accounts, and any money in excess of the limit can be used to pay back your creditors. Also not exempt are retirement benefits paid to you as income.

 

Additional differences with retirement fund exemptions exist between Chapter 7 and Chapter 13. Because of this—and the fact that no two Suffolk bankruptcy cases are alike—working with a lawyer experienced with Suffolk bankruptcy proceedings can help make your golden years shine much brighter.

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.

–

 

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.

–

 

When you model an economy on Vegas principles, you’re bound to lose.  That is precisely what we have done.  Americans gambled by borrowing and living beyond our means, and our banking systems gambled that we would somehow miraculously find a way to pay it all back.  Well, we didn’t find a way, and so here we are- scalding in the lava of a financial meltdown.   Furthermore, if history is any indicator of what to expect, this situation will potentially worsen before it gets better.  To minimize the damage and rebuild what we have lost, we must gain a unilateral understanding of how we got into this mess.  First and foremost, we need to accept some responsibility, and recognize that we all played an important part in this crisis.   In 2007, the debt to income ratio for Americans was 130%.  This means that we were spending all the income we generated, and then some.  In plain terms, we spent nearly a trillion dollars more than we earned.  Because of the housing boom and liquid credit markets that existed since the late nineties, we assumed challenging mortgages, purchased investment and vacation homes, demanded high-energy vehicles, and maxed out our credit cards- assuming the boom would continue and we would meet all our financial obligations.  Who did we turn to in order to finance all this?  That’s right- American banks.   Would you lend money to someone whose debt to income ratio was 130%?  Well, our lending institutions in this country did exactly that.  Banks made what are called subprime loans.  Subprime loans are issued to people whose credit is substandard.  These types of loans carry high interest rates and thus are profitable, but they also carry high default rates, and thus are considered risky.  Banks leveraged this risk by securitizing mortgage payments and credit portfolios and selling them to investors; turning an enormous profit in the meantime.  The most important of these are known as Mortgage-Backed Securities (MBS), and they are an integral part of the global marketplace.   Risk often means great rewards to investors; the riskier the investment, the higher the return.  American investors purchased the MBS, betting that more borrowers would pay than would default, and that the housing boom would continue.  However, as we all know, the housing boom did not continue.   Eventually, homeowners began to default on their loans.  The predatory lending practices that were widespread during the housing boom were starting to have an effect as teaser rates and other favorable terms expired, and homeowners found their interest and payment sometimes doubling or more.   Investors began to flee mortgage-backed securities too late, while banks simultaneously either failed altogether, or greatly tightened lending requirements.  In fact, the tightening of credit not only applied to mortgages and credit cards, but banks also stopped lending to each other.  This resulted in the credit “freeze”.  The credit freeze has made it nearly impossible for most companies and businesses to perform or procure work; resulting in layoffs, closings, sell-offs, and one of the highest unemployment rates in American history.   As homeowners defaulted on their loans and abandoned their properties, this coupled with the great surplus of homes built during the preceding few years served to drive the price of existing homes downward dramatically.  For many, homes were devalued to the point that they were worth less than the mortgage itself.   Thousands of people lost more than just money- they lost their life-savings and their livelihoods.  The personal wealth of Americans in general plummeted.   It certainly didn’t help that, during all of this, we also experienced an oil crisis.  Because of this, we are paying more for literally everything; from daily commuting expenses to groceries.  For the first time, Americans as a whole have begun to feel the strain of an economy gone astray.   We can see now where we have gone wrong: we as individuals gambled our personal wealth and spent beyond our means.  Our banking institutions gambled by looking the other way and ignoring pertinent information while making us loans that they should not have made.  Investors gambled that just the right amount of people would pay, and that just the right amount would default.  We all gambled that the housing boom would continue, and we all bet that our prized American lifestyle could not be interfered with.  But this is one bet that we lost- so far to the depressing tune of $700,000,000,000.   The question now is: “What are we going to do about it?”  Well, some tottering steps have been taken.  Six months ago Americans received an economic stimulus package.  Recently, our government rescued several organizations, and assumed a great deal of unhealthy mortgages.  Last week, we passed the “bailout” legislation.  But what more is the financial sector doing to solve these problems, and what will all this mean as we move toward 2009?  Bookmark this blog for clear, accurate answers!     –