Bankruptcy Solutions Brooklyn

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• Modification & Negotiation
• Credit Card Debt Relief

Bankruptcy Lawyers Suffolk & Nassau Counties, Brooklyn

Bankruptcy allows individuals and businesses to eliminate, reduce and/or extend debt. Our law office represents clients under all chapters of the bankruptcy code (Chapters 7, 11 and 13) and Adversary Proceedings and Bankruptcy Appeals.

• What Is Bankruptcy?
• Who Can File for Bankruptcy Protection?
• What Are the Potential Benefits of a Bankruptcy Case?
• What Are the Alternatives to Bankruptcy?
• What Are the Basic Types of Bankruptcy Cases?
• What Are the Qualifications for a Bankruptcy Case?
• What are: a) an Adversary Proceeding; b) a Contested Motion; and c) a Bankruptcy Appeal?
• Can a Credit Rating Be Rebuilt After a Bankruptcy Filing?
• When Can or Should a Bankruptcy Case Be Filed?
• How Has Covid-19 Affected Bankruptcy Law and Practice?
• Why Use Our Law Office for Your Legal Needs?

What Is Bankruptcy?

The purpose of federal bankruptcy legislation, sometimes known as Title 11 of the United States Code or the “Bankruptcy Code,” is to provide an opportunity for financial reorganization or a fresh start for legitimate debtors who are unable to fulfill their obligations. This objective is achieved by bankruptcy law, which gives debtors a legally binding tool that allows them to: (1) eliminate, reduce, reorganize, and/or extend the majority of their debts; and (2), subject to certain restrictions, shield themselves from creditors’ harassment and pursuit during the bankruptcy case. Simultaneously with that In addition to trying to provide the debtor with relief, bankruptcy law also aims to treat a debtor’s creditors fairly by: (A) shielding them from deception; (B) treating creditors in similar circumstances equally; (C) establishing a process by which the debtor must reveal details about their assets, income, and debts in order to confirm their eligibility for a case; and (D) giving creditors regular notice and a chance to be heard during the bankruptcy case.

Who Can File for Bankruptcy Protection?

An individual (by themselves or as a married couple) or a business (a sole proprietorship, partnership, or corporation) may file for bankruptcy protection, with very few exceptions. A voluntary bankruptcy petition does not necessitate insolvency, even though most debtors seeking bankruptcy protection are “insolvent”—that is, either unable to fulfill their obligations as they become due or have more liabilities than assets.

What Are the Potential Benefits of a Bankruptcy Case?

An “automatic stay” will be put in place as soon as a bankruptcy case is filed, protecting the filer from creditors. Most debts in a Chapter 13 or Chapter 11 case can be cured, decreased, and/or reformed under a plan; in a Chapter 7 case, most debts can be removed by the bankruptcy “discharge”. There is a forum to go to if there are any questions or concerns because bankruptcy cases are managed by a federal bankruptcy court that has the express authority to handle bankruptcy matters.

disagreements or problems with a case. Nonetheless, after a case is filed, creditors will stop all collection efforts and honor the bankruptcy stay and discharge. They will also record the discharge on the debtor’s credit report.
The following uses of filing for bankruptcy are common:

• by people to get rid of excessive credit card debt, hospital expenses, and other debt;
• by people or companies to prevent the foreclosure of their real estate or home, or to prevent the repossession of their vehicle or other assets;
• by companies experiencing a cash flow crunch to ask for a “breathing spell” from their creditors so they can sell off assets or restructure their finances;
• by people or companies to extend, settle, and/or restructure heavy sales and withholding tax obligations, mortgage or real estate tax arrears, and
• by companies to prevent the seizure of leased equipment or the eviction from leased real estate.

Bankruptcy can be used for purposes other than those listed above; there are additional uses for bankruptcy cases. However, because bankruptcy law can be complicated, a person or company thinking about filing for bankruptcy should carefully discuss their objectives with a bankruptcy counsel. Based on the specifics of each case, a bankruptcy lawyer can decide whether or not the aforementioned objectives can be met.

What Are the Alternatives to Bankruptcy?

Although declaring bankruptcy is a common solution for those facing severe financial difficulties, there are other options available to them that can serve as a substitute for filing for bankruptcy. A few of these alternatives entail extrajudicial discussions that could result in settlements or loan adjustments with creditors. Other possibilities include arguing against a creditor’s pursuit of debt by contesting the validity of the debt or the means by which the creditor has attempted to pursue the debt, or by responding to the creditor’s complaint (within 20 or 30 days).
Options other than filing for bankruptcy exist and are sometimes better. However, for a debtor facing significant financial difficulties, declaring bankruptcy is frequently the most effective and straightforward course of action. However, it is important to emphasize that not all difficult financial situations may be resolved by bankruptcy, and that there are hazards associated with bankruptcy in some circumstances.

If the majority of your bills are credit card debt or other unsecured debt, negotiations with your credit cards, particularly by a company like ours, which is capable of filing for bankruptcy and can effectively reduce the debt. Payment plans do not offer the same discounts as lump sum agreements, although both can have favorable outcomes. Additionally, we can litigate with unsecured creditors, particularly in cases where there might be a disagreement or when we require more time or power to get a favorable resolution. When it comes to paying off debt, bankruptcy typically offers more assurance and speed. However, in situations where a client may not be eligible for bankruptcy (due to income or asset limitations in Chapter 7 or due to debt limitations in Chapter 13, as explained further below), negotiated agreements or litigation defense may be preferable if the client does not have a general debt problem and only has issues with one or two isolated creditors. Additionally, some consumers might want to attempt avoiding bankruptcy, and bargaining Options can offer sufficient relief in their circumstances without requiring a bankruptcy filing, even if they are not as successful as bankruptcy. Generally, our office negotiates most debts on behalf of our clients including credit card, tax, mortgage, and other debts.

What Are the Basic Types of Bankruptcy Cases?

Bankruptcy cases can be of three fundamental types: In a liquidation bankruptcy, Chapter 7 is the most typical type. Chapter 11 is a company restructuring, and Chapter 13 is a “wage earner’s bankruptcy,” which is also commonly utilized by individuals. These fundamental categories of bankruptcy cases are suitable for various circumstances and are called after the corresponding chapters in the Bankruptcy Code. A Chapter 7 bankruptcy case can be used to liquidate a corporation or to erase or “discharge” the majority of an individual’s obligations. A debtor may file for bankruptcy under Chapter 13 or used frequently by debtors trying to prevent the foreclosure of their home or other real property, as well as by people with other problematic debt who do not choose Chapter 7 due to excess income or equity in their assets, by a sole proprietorship business that generates a regular income over a period of time in order to pay debt. A company or an individual may utilize a Chapter 11 reorganization case to restructure its financial obligations while keeping ownership, control, and operation of its assets.

The procedures, conditions, and rights associated with these various bankruptcy case types fluctuate significantly, and their applicability to a given situation might also differ substantially based on the specific facts and persons involved.

What are the Qualifications for Bankruptcy?

Chapter 7,is the most common bankruptcy case filed due to the fact that it “discharges” or gets rid of debt. But because Chapter 7 has requirements that dictate whether a client can and/or should bring a case under Chapter 7, it is not accessible to all parties. The primary criterion involves comparing the client’s income level to the median income of a family with the same size in New York State, which is based on family size, or the number of dependents in a household. The purpose of means testing is to establish if a client in the State of New York who earns more than the median income for their household size is eligible to file a case based based on their essential costs, as established by their actual, verifiable spending and limited by certain IRS guidelines applied to this kind of testing. The exam examines a client’s earnings, allowable expenses, and essential outlays for the six months leading up to the bankruptcy petition. In order to be eligible for Chapter 7, a client must both have a negative budget (i.e., one that does not include payments on debts that the bankruptcy case would discharge) and a negative disposable income as determined by the means test. A client may still be eligible for Chapter 13 if they meet both the means test AND the budget test requirements for positive disposable income. relief, and maybe pay down a tiny portion of their debt over the course of a five-year plan, but they are not required to file for Chapter 7 at that point. Chapter 7 contains additional non-official restrictions regarding the equity in the client’s assets in addition to official, statutory constraints on the income level. If there is a significant amount of unprotected equity in a client’s assets, such as a house, car, and/or a right to money from an inheritance, a lawsuit, or a tax return, even while such equity may be protected by liens and exemptions, the client’s assets could potentially be at risk for a sale by the Chapter 7 trustee. Therefore, a client may not want to file under Chapter 7 if there is a large, exposed amount of equity in a potential asset.

With provisions designed to give small businesses corporations that fall between those of a traditional Chapter 11 case and a Chapter 13 case a reorganization option, Subchapter V to Chapter 11 for small businesses allows Chapter 11 cases for small corporations to proceed more effectively, economically, and quickly.

In certain situations, choosing which bankruptcy code chapter to apply may necessitate careful planning with a bankruptcy attorney. Give us a call to schedule a free consultation.

What is an Adversary Proceeding?

An adversary bankruptcy proceeding is a court lawsuit that is brought by a creditor, the debtor, or a bankruptcy trustee to resolve a significant matter that needs to be decided by the bankruptcy court. Objections to the debt’s dischargeability based on claims of fraud or misrepresentation by the debtor about the debt are among the issues raised by creditors. The Bankruptcy Trustee’s concerns include contesting the bankruptcy discharge in its entirety, stopping a purportedly fraudulent or favorable transfer, and turning over an asset.

What is a Contested Motion?

A contested motion in a bankruptcy case is far more common. Examples of these include a creditor’s move to lift the stay against the debtor’s opposition or a Chapter 13 debtor’s motion to reduce or erase a specific creditor claim.

What is a Bankruptcy Appeal?

An appeal of a decision that we believe may have been made incorrectly is made from the U.S. Bankruptcy Court to the U.S. District Court. This process is known as a bankruptcy appeal.

Can a Credit Rating Be Rebuilt After a Bankruptcy Filing?

Individuals and companies who are thinking about declaring bankruptcy frequently have major financial issues that have already been reported on their credit reports or will soon. A person’s credit record would also be affected by filing for bankruptcy, but the filing has the benefit of addressing and possibly resolving some of the underlying financial issues. As a result, a person who files for bankruptcy is frequently in a better position to pay back new creditors and eventually may represent a lower credit risk than they did before filing.

arrears, filing for bankruptcy can eventually assist you in regaining your credit by removing or rearranging your high-risk debt and removing the cause of your financial difficulties.

People who are filing for bankruptcy protection might get advice from a bankruptcy attorney on how to improve their credit score.

When Can or Should a Bankruptcy Case Be Filed?

choice to safeguard one’s income, possessions, bank accounts, and credit standing. The individual filing for bankruptcy will be shielded from creditors right away and assisted in getting the majority of their debts, including credit card debt, personal loans, and medical expenses, discharged or eliminated. The individual filing will typically be allowed to keep their homes, automobiles, bank accounts, and other possessions. To find out if filing for bankruptcy will help you with your financial issues, please give us a call.

Making the decision to file for bankruptcy is up to each individual. But there are numerous methods you you Getting a free consultation is the best course of action. We provide a free phone consultation and in-person consultation in our Melville, Brooklyn law office. During this time, we may go over your options and determine whether filing for bankruptcy is the best course of action.

How has Covid-19 Affected Bankruptcy Law and Practice?

In addition to providing emergency assistance to families and businesses affected by the pandemic, the United States Congress passed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act early in the 2020 pandemic, and the President signed it into law on March 27, 2020. This legislation also included some significant changes to the bankruptcy laws, which are listed below:

simplified and abbreviated the approval process for Chapter 11 Plans by eliminating the need for a disclosure statement and enabling a more condensed and straightforward Chapter 11 plan and approval procedure.

CHAPTER 7 and COVID-19 – The Cares Act attempted to facilitate easier access to Chapter 7 relief by excluding the additional federal assistance to unemployment insurance—which was an additional $600 per week in addition to unemployment insurance, later reduced to an additional $300 per week—from the income counted in applying the “means test” for Chapter 7 eligibility.

COVID-19 and CHAPTER 13: Under the Cares Act, a verified Chapter 13 plan may be extended for a maximum of two years in response to challenges associated with COVID-19. By extending a chapter 13 plan from five years (60 months) to seven years (84 months), a debtor can significantly reduce their monthly payments and have more flexibility during times when they are experiencing increased financial hardship.

Why Use Law Our Office for Your Legal Needs?

We cover all there is to know about bankruptcy, from A to Z. Because we have focused on bankruptcy law for nearly 30 years, we have expertise, knowledge, and resources at our disposal. We have deep-seated expertise in complex litigated bankruptcy matters, including defending and prosecuting adversary proceedings, filing and opposing contested motions, and taking bankruptcy appeals from decisions that we believe are unfair and incorrect. Our expertise spans all chapters of the Bankruptcy Code, including Chapters 7, 11, 13, and the recently added Subchapter V of Chapter 11. We are capable of beingefficient and reasonably priced for simpler bankruptcy cases, as well as having the ability to be extremely sophisticated (while maintaining affordability) for more complicated and singular bankruptcy cases requiring intricate customisation, structured brilliance, and creative intelligence. We take pride in what we do and treat every task as if it were a signed work of art. We are a funny, kind, cheerful, and intelligent group of people that love what we do and enjoy working with our clients. Despite the debt issues life dealt you, our firm was able to work with you to address them, improve your circumstances, and—despite the challenges—make working through the answers to your debt issues enjoyable for all of us.

Our consultations are free, but our legal advice may be invaluable.
Please call us at (631) 271-3737, or e-mail us at [email protected] for a free consultation in our Melville, Brooklyn law office to go over your legal options in more detail, including Bankruptcy Solutions.