• Bankruptcy Solutions
• Foreclosure Solutions
• Modification & Negotiation
• Credit Card Debt Relief

Thousands of people live in Riverhead, New York and thousands more visit on a regular basis. While Riverhead has much to offer, reports indicate¹ that more than 22 percent of residents have income below the poverty line. In addition, many households that are above the poverty may struggle to pay their bills due to rising housing prices and costs of living. If you live in or around Riverhead and are having financial difficulties, it is important to realize that you are not alone.

Financial trouble can arise in many ways, including medical events, unemployment, or simply poor financial decisions. Many people are facing overwhelming debt and are constantly dodging collection calls and letters. Other individuals may have judgments issued against them or have their wages garnished by creditors. Some households may live in fear of repossession of their vehicles or even foreclosure of their homes. If you are under water financially and do not foresee any hope of recovery on your own, you may want to consider bankruptcy as a possible option for relief.

The law firm of attorney Ronald D. Weiss, P.C. has been assisting people and businesses in Riverhead and throughout Long Island with bankruptcy and other debt relief methods for decades. We will thoroughly evaluate your financial situation and help you determine whether bankruptcy is right for you. If you decide to proceed with a bankruptcy, we will guide you through every step of the process so that you receive the most favorable outcome possible and can look forward to a future without such extensive financial stress. To learn more about how we can help you, call our office for a free consultation today.

Deciding to File for Bankruptcy

Deciding to file for bankruptcy is a significant decision that should be carefully considered. Some factors that indicate bankruptcy may be the right solution for you include:

• You have significant credit card balances, medical bills, and other unsecured debts
• Your inability to pay your debts is not a temporary issue
• Your creditors are taking or have already taken legal action against you
• You are in trouble of losing your home to foreclosure
• Your business is under water and/or has a serious cash flow problem that is affecting operations

While bankruptcy cannot discharge your mortgage debt, it can immediately halt foreclosure proceedings and can help free up income in the future so that you can catch up with your mortgage payments. It can also give your business relief from creditors so that you can close your small business without lingering liability or so you can reorganize your debt in a manner that allows you to continue operations.

While bankruptcy does have many benefits, it can also have credit implications and can put some of your property and assets at risk. For these reasons, you should carefully weigh the decision to file for bankruptcy with an experienced bankruptcy attorney.

Types of Bankruptcy in NY

There is no one-size-fits-all bankruptcy solution for individuals or businesses. Each financial profile must be carefully examined, including your income, assets, and debts, to determine which type of bankruptcy is the right one for your situation. The following are brief overviews of the three major types of bankruptcy that our office handles in Riverhead:

Chapter 7 – Called the “liquidation” bankruptcy, Chapter 7² involves liquidation of certain property and assets to pay towards your debts and then the discharge of any qualifying debts that are left over. To qualify, an individual or couple must pass a means test proving they do not have enough income to make payments toward their debts. Small businesses filing for Chapter 7 do not have to pass a means test but generally must close their doors due to liquidation.

Chapter 13 – This type of bankruptcy is referred to as the “reorganization” bankruptcy. It allows you to keep your property, however, requires you to complete a three to five-year payment plan toward your debts before you can be granted discharge of your debts. This type of bankruptcy is often best for individuals or couples that cannot pass the means test due to higher income or who have property that they do not want to relinquish to liquidation. This type of bankruptcy is only available for consumers.

Chapter 11 – Chapter 11³ is often considered to be the Chapter 13 equivalent for businesses. If a business does not want to liquidate and has enough assets to follow a payment plan, it may greatly benefit from reorganization of its debts under Chapter 11. Chapter 11 filers must follow all instructions from the court for payment and also business decisions so as to not waste assets. However, if successfully completed, a business can obtain a discharge and remain in operation. If a business cannot keep up with a Chapter 11 bankruptcy plan, it can convert to a Chapter 7 bankruptcy.

Helping You Through the Bankruptcy Process

The bankruptcy process involves many steps and a substantial amount of paperwork that must be complete and accurate to avoid delays and to ensure a discharge. In addition, you will have to meet and answer questions from the bankruptcy trustee assigned to your case and possibly your creditors. Bankruptcies often involve several court hearings to provide updates and to ensure a payment plan is fair and feasible. In a Chapter 7 bankruptcy, you will want to apply complex exemptions set out in the law to protect as much of your property as possible from liquidation. You always want to have a highly skilled bankruptcy lawyer helping you through every stage of this complicated process to ensure the best results in your case.

Discuss Your Situation with a Riverhead Bankruptcy Lawyer Today

If you are considering bankruptcy, you should not hesitate to call Riverhead bankruptcy attorney Ronald D. Weiss, P.C. Our office can assist you with bankruptcy as well as foreclosure defense, mortgage modification, and other legal tools to provide relief from your debts. Please use our online contact form or call us today at 631-271-3737 to discuss your situation today.

Student Loan Debt Relief

There are various government programs available to help with federal student loan reduction. Many of these programs have been expanded in recent years. Loans of this type include:

• Perkins Loans (terminated as of September, 2017) (terminated as of September, 2017)
• FFEL loans (issued prior to 2010) (issued prior to 2010)
• William D. Ford Federal Direct Loans (issued after July, 2010) (issued after July, 2010)

These loans may either be Stafford or Plus Loans but not in default. Available remedies may include:

• Administrative Release (for death, permanent disability, school closures within 180 days, false certifications, lack of accreditation)
• Plans for Income Contingent Repayment (ICR)
• IBR (Income Based Repayment) Plans with forgiveness
• PAYE (Pay as you Earn) (Pay as you Earn)
• REPAYE (Revised Pay as you Earn) (Revised Pay as you Earn)
• PSLF (Public Service Loan Forgiveness) (Public Service Loan Forgiveness)
• Forgiveness of Teachers
• Loan Consolidations

If defaulted, there are ways to Rehabilitate the loan and thus make them eligible for these administrative programs.

Private or state loans necessitate direct negotiation with the lender or servicer, but terms are frequently reached with similar outcomes to federal loan programs. If negotiation is not an option, there are options to consider within the context of Chapter 13 bankruptcy, which can provide general relief with loan deferment or, in certain circumstances, render the loan partially or entirely dischargeable.

References:
¹http://www.city-data.com/poverty/poverty-Riverhead-New-York.html
²http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics
³http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics