Bankruptcy Attorney Northport

Providing Individuals and Businesses with Bankruptcy Services throughout Northport, New York

Northport is a village that lies within the Town of Huntington on Long Island in the state of New York. With more than 7,000 residents within in 2.3 square miles of land, Northport is a vibrant community that has become an entertainment, shopping, and cultural destination just 55 minutes east of Manhattan.

Like any other village, town, or city in the United States, people, and businesses who live and operate in Northport occasionally have financial problems and experience difficulty keeping up with their debts. Fortunately, help is available. Attorney Ronald D. Weiss is a Northport bankruptcy lawyer who understands how to help people find relief through bankruptcy. To schedule a free consultation to discuss your financial situation, call our office today at 631-271-3737 or send us an email through our online contact form.

Chapter 7 Bankruptcy Can Eliminate Many Debts

The most commonly filed form of consumer bankruptcy in the United States is Chapter 7 bankruptcy.¹ In this type of bankruptcy, a debtor’s non-exempt assets are liquidated—this is why it often referred to as a “liquidation bankruptcy.” The proceeds from the assets are used to pay off the debtor’s outstanding liabilities. At the end of the bankruptcy, many, if not all, of the debtor’s remaining debts are discharged. This means that he or she is no longer under any legal obligation to pay them back. Some of the kinds of debts that are often eliminated in Chapter 7 include the following:

• Medical expenses
• Credit card bills
• Past-due rent
• Personal loans
• Business debts
• Certain tax debts
• Auto loans

Many people mistakenly believe that a Chapter 7 bankruptcy will leave them penniless and force them to part with most of their most prized possessions. It is important for anyone considering filing for Chapter 7 to understand that the majority of Chapter 7 filings are “zero asset” bankruptcies, meaning that the filer has no nonexempt assets for the bankruptcy trustee to liquidate. As a result, most people who file for Chapter 7 obtain the significant benefits of the discharge without losing any of their personal property or real estate assets.

Chapter 11 Bankruptcies

Chapter 112 is a type of reorganization bankruptcy that is available to both individuals and businesses. More often, Chapter 11 bankruptcies are filed by large corporations because of the associated costs and onerous report requirements. In a Chapter 11 bankruptcy, the filer remains in control of its assets as a debtor in possession, which allows a business to continue operating while being protected from collection efforts by creditors. Some of the benefits of Chapter 11 include the following:

• The ability to obtain financing on favorable terms by offering new lenders priority on any business earnings realized
• At the discretion of the court, the ability to reject or cancel certain contracts
• While a debtor is “in” Chapter 11, the automatic stay3 prohibits creditors from engaging in collection activities, including repossession, foreclosure, or filing a lawsuit to collect a debt

Chapter 13 Bankruptcy

Chapter 13 bankruptcy4 is another form of reorganization bankruptcy that is often filed by individuals. Chapter 13 does not require a debtor to liquidate any assets but is available only to those filers who are able to make regular monthly payments for a period ranging from three to five years. One of the primary benefits of Chapter 13 is that it allows filers to keep their property while making regular payments to the bankruptcy trustee. As a result, many people who have fallen behind on their mortgages use Chapter 13 to prevent foreclosure by entering into a payment plan on the arrearage while continuing to make regular payments on their existing mortgage.

How a Northport Bankruptcy Attorney Can Help You Obtain a Fresh Start

Filing for bankruptcy is a legally complicated process. Any error you make could result in a significant delay in obtaining your discharge or the rejection of your case. In fact, mistakes or omissions in what you submit to the court could even result in accusations of bankruptcy fraud, a serious matter that could expose you to criminal liability. As a result, it Is highly advisable for anyone considering bankruptcy to consult with an attorney to ensure that everything goes as smoothly as possible and that you obtain the maximum benefit of filing for bankruptcy available under the law. Here are some of the specific ways in which a bankruptcy attorney can help you at every step along the way:

Help you determine whether bankruptcy is appropriate in your situation – it is important to keep in mind that bankruptcy is not a solution to minor financial problems. There are cases in which it is better to try to renegotiate with creditors or engage in a “strategic foreclosure” than to file for bankruptcy. When you meet with an attorney, he or she will evaluate your situation and determine whether bankruptcy is right for you. If it is, your attorney will advise you on which type of bankruptcy you should file.

Ensure that Your Paperwork is complete and accurate – When you file for bankruptcy, you are required to provide a detailed picture of your current financial situation. Your lawyer will review all of your assets and debts and ensure that the paperwork you submit to the court is accurate and includes all relevant information.

Communicate with the bankruptcy trustee and the court – Filing for bankruptcy often requires several court appearances and attending a meeting of creditors. When you retain an attorney, he or she will represent you in these matters and ensure that your rights are protected.

Call Ronald Weiss Today to Speak with a Northport Bankruptcy Lawyer

1 http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

² http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

3 https://www.law.cornell.edu/wex/automatic_stay

4 http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics