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A Bankruptcy Lawyer in Deer Park Working with Individuals and Businesses

Deer Park is a hamlet situated in Suffolk County, New York with a population of nearly 28,000 people. It sits in the northeast part of the town of Babylon on Long Island and is a vibrant community with all of the amenities one would expect in the the New York metropolitan area. And just like any other community of its size, the people who live and the businesses that operate in Deer Park sometimes experience serious financial problems.

If you are having difficulty keeping up with your financial obligations and are in the Deer Park, New York, area, filing bankruptcy may be a helpful option. In many cases, filing for bankruptcy can eliminate debt and help people and businesses obtain a fresh start and brighter financial future. Choosing the right type of bankruptcy and filing correctly are complicated matters, however, so it is advisable for anyone considering bankruptcy to discuss their options with an experienced bankruptcy attorney. To schedule a free consultation with one of the lawyers at Ronald D. Weiss, P.C., call our office today at 631-271-3737 or send us an email through our online contact form.

Debt Relief through Chapter 7 Bankruptcy

When most people talk about bankruptcy, they are referring to Chapter 7 bankruptcy. It is the most commonly filed consumer bankruptcy in the United States, with hundreds of thousands of people filing each year. Chapter 7 is known as a “liquidation bankruptcy,” as the debtor’s non-exempt assets are liquidated (sold) in order to pay back creditors. Importantly, only a debtor’s nonexempt assets are sold, meaning that the bankruptcy rules allow debtors to keep certain categories of property (usually up to a certain value). As a debtor, it can be comforting to learn that the majority of Chapter 7 Bankruptcies are “zero-asset” bankruptcies, which means that party filing has no assets that are reachable by the court (i.e. they are all exempt). In zero-asset cases, debtors are typically able to obtain a discharge of their debts without having to part with any of their assets. When a debt is discharged, it means that the debtor is no longer under any legal obligation to pay it back. Some of the types of debt that are often discharged in Chapter 7 bankruptcy include the following:

• Medical expenses
• Credit card bill
• Unpaid rent
• Past due utility bills
• Car loans
• Personal loans
• Collection accounts
• Certain tax debts
• Civil judgments

Filing for Chapter 7 is not without its downsides, however, as doing so can make obtaining financing or credit more difficult, as the fact that you filled will remain on your credit for years. It is important to keep in mind, however, that if you are considering bankruptcy, there is a strong chance that you already have poor credit and that filing for bankruptcy will ultimately help your credit score.

Chapter 13 Bankruptcy for Individuals

Chapter 7 is often a good option for people without significant assets, irregular income, and high levels of debt. But what about people who want to keep their assets and make a regular wage but are having trouble with their bills? In these types of cases, Chapter 13 bankruptcy is often a more appropriate choice. Chapter 13 is known as a type of “reorganization bankruptcy” and does not involve the liquidation of debtor’s assets. Instead, the Chapter 13 debtor enters into a court-approved payment plan through which debts are paid off or down, depending on their type. Chapter 13 payment plans last for three to five years, and as long as the party who filed is making his or her payments, he or she is protected from any collection activity from creditors. In fact, Chapter 13 is often used to save a person’s house from foreclosure, as it allows a debtor to pay his or her mortgage arrears over the course of the payment plan while continuing to make regular mortgage payments during the life of the plan.

Chapter 11 Bankruptcy in New York

Chapter 11 bankruptcy is another type of reorganization bankruptcy. Both businesses and individuals can file for Chapter 11, but in practice, it is mostly used by businesses due to its onerous reporting requirements and the high costs associated with filing. Typically, a business that is having trouble keeping up with its bills will file for Chapter 11 if it wants to continue operations while obtaining protections from creditors. Chapter 11 allows the business to continue operating the business as a “debtor in possession.” It must, however, obtain approval from the bankruptcy court over certain important decisions, including expanding or contracting business operations, paying for professional services, entering into a lease, and changing union, vendor, or licensing contacts. There are no legal limitations on the duration of a Chapter 11 case. While a party is in Chapter 11, it is protected from collection activities from creditors, including attempts at foreclosure, repossession, or the filing of a lawsuit. Chapter 11 debtors are able to obtain financing on favorable terms as new creditors are able to obtain priority status over existing debtors. Because this type of bankruptcy is extremely complicated, it is highly advisable for anyone considering it to speak to an attorney familiar with Chapter 11 cases.

Call Our Office Today to Speak with a Deer Park Bankruptcy Lawyer

Financial problems can hang over your head like a dark cloud. You may be in danger of losing your business, your car, or your home. You may even be scared to answer to phone or check the mail. Fortunately, in many cases, bankruptcy is a way out of unmanageable debt and can change your life for the better – starting the moment you file. At the Law Office of Ronald D. Weiss, P.C. we will take the time fully understand your financial situation and help you determine what course of action is right for you. To schedule a free case evaluation with one of our Deer Park bankruptcy attorneys, call our office today at 631-271-3737 or contact us online.