Bankruptcy Attorney Oyster Bay

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Oyster Bay Bankruptcy Attorney

Under the U.S. Constitution^[1], an individual has the ability to relieve all or part of their debts when they can no longer meet their obligations to creditors and lenders. Two major types of personal bankruptcy apply to consumers. Chapter 7 bankruptcy allows debtors to discharge all or part of their debt. In Chapter 13 bankruptcy, debtors repay all or part of their debt based on a payment plan.
Nassau County Bankruptcy Statistics
According to the United States Bankruptcy Court Eastern District^[2] New York, there were 9,039 Chapter 7 Bankruptcy filings in New York in 2015.  During that same year, there were 2,275 Chapter 13 Bankruptcy filing state wide.
Consumer Bankruptcy in Oyster Bay

• Chapter 7. Liquidation under Chapter 7 of the United States Bankruptcy Code is what is commonly thought of as “bankruptcy.” When a Chapter 7 case is commenced, an independent trustee is appointed to liquidate assets, other than those assets that may be exempt under applicable state law or under the limited exemptions in the bankruptcy code, review claims, and pay creditors. The Trustee has the power to investigate payments and transfers by the bankruptcy before the case was filed, and to recover fraudulent transfers of assets or payments that are preferences. Except for certain specified debts and taxes, the debtor receives a discharge from debts, and can retain future earnings and assets free of creditor claims.  Chapter 7 is designed for people who are having financial difficulties and are not able to repay their debts. Consumers can usually qualify for Chapter 7 if their average gross monthly income for the last 6 months is below the state’s Median Income, or their gross income less certain expenses is below the state’s Median Income, or they can show special circumstances that would allow them to qualify for Chapter 7.  An Oyster Bay bankruptcy attorney can explain these requirements as they apply to your situation.

• Chapter 13. The creditors do not vote on a Chapter 13 Plan. Rather, the Court reviews the income and expenses of the debtor and determines whether or not a monthly payment that the debtor proposes is a good faith effort to pay creditors. The monthly payments are made to a Chapter 13 Trustee, who distributes the funds to creditors.  Under Chapter 13, consumers keep all of their property, both exempt and non-exempt, as long as they resume making the regular payments on secured debt and keep current under the bankruptcy repayment plan. A repayment plan can last for up to five years.

Oyster Bay Meeting of Creditors; Do You Need a Bankruptcy Attorney?
After a Chapter 7 petition has been filed, the court will appoint a trustee to oversee the case and take control of the estate. The estate consists of all of the assets that are not considered exempt under federal or New York bankruptcy laws. An Oyster Bay bankruptcy lawyer can determine which assets are considered exempt in your particular situation.  At that time, the court will schedule the 341 meeting, an informal meeting with the trustee where all of the debtor’s creditors are allowed to be present.  The meeting consists of the trustee placing the debtor under oath and asking questions about the debtor’s property and debts.
The process for Chapter 13 is slightly different. With a Chapter 13 filing, there is a meeting of creditors before there is a confirmation hearing in court where a bankruptcy judge will either approve or reject the proposed plan.
Discharge of Oyster Bay Debts
For Chapter 7 Petitions, creditors are allowed 60 days from the 341 meeting to convince the court that their debt should not be discharged. Once that time lapses, all of the debtor’s dischargeable debts will be discharged. In Chapter 13 cases, once the payment plan has concluded your case can be closed.
Steps to Avoid Before Filing an Oyster Bay Bankruptcy
If you feel that you are unable to provide for the payment of your monthly expenses, it is important to speak to a Nassau County bankruptcy attorney as soon as possible in order to discuss your options and possible bankruptcy solutions.  In the meantime, there are several things to avoid:

• Additional Debt: Do not accrue any further debt. This includes charges on credit cards, unsecured loans or similar transactions. Knowingly entering into borrowing arrangements when you are preparing to file bankruptcy can cause serious problems.
• Property: Do not make transfer ownership of any property (cars, land, homes, etc.). Willfully transferring ownership of real property when you are preparing to file for bankruptcy is essentially hiding assets and will cause you a lot of trouble.

Myths About Oyster Bay Bankruptcy
Although some assume that a bankruptcy filing means that the debtor cannot resist the temptation of credit cards, many people who file for bankruptcy do so for other reasons. There are many myths surrounding consumer bankruptcy including:

• People who file for bankruptcy are financially irresponsible. Long-term unemployment, the legal fees associated with divorce, the cost of running two households following a divorce, or the high cost of medical care have all driven well-intentioned Americans into bankruptcy. As of April 2012, more than 5.2 million Americans had been unemployed for six months or longer, according to the Bureau of Labor Statistics^[3]. Meanwhile, a 2011 survey by the Centers for Disease Control and Prevention found that 20 percent of American families had problems paying medical bills in the past year.
• Bankruptcy permanently ruins your credit. People who file bankruptcy are often surprised by how quickly they start getting credit card offers in the mail again. It is often times recommended that those coming out of bankruptcy get a secured credit card and start making regular, on-time payments to rebuild their credit.
• Bankruptcy is a cure-all. Chapter 7 bankruptcy discharges certain debts while Chapter 13 may reduce or reorganize debts. However, neither one offers an easy solution. In Chapter 7, you could lose property. If you go into Chapter 13, you could keep your house but also have to keep making payments and have a very modest lifestyle for at least three to five years. An experienced Oyster Bay bankruptcy attorney can explain these differences in greater detail and determine the type of filing that is best for your individual situation.
• Everyone will know when you file for bankruptcy. Unless you are a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While it is true that bankruptcy is a public legal proceeding, very few local news publications have the space, the manpower or the inclination to provide a listing of all those who have filed.

Both federal and New York bankruptcy laws are complicated and can be difficult to apply to an individual case.  If you are unable to pay your debts it is important to speak to an Oyster Bay bankruptcy attorney who can interpret and apply federal and New York laws and discuss all of the issues that may arise from your financial situation.  Call the office of Ronald P. Weiss today at (631) 296-0361 in order to discuss the specifics of your case and to review all of your bankruptcy solutions.
References:
[1] https://www.law.cornell.edu/wex/bankruptcy
[2] http://www.uscourts.gov/statistics/table/f-5a/bankruptcy-filings/2015/12/31
[3] http://www.bls.gov