Bankruptcy Attorney Shelter Island

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

Shelter Island is a town and island on the Eastern end of Long Island with a population of more than 2,300 people. Less than 100 miles from New York City, Shelter Island offers residents and visitors with a variety of activities, including boating, cycling, golf, hiking, swimming, and ice-boating. While you may expect a place like Shelter Island to be free from economic problems, statistics indicate¹ that 10.5 of residents in the community had below poverty-level income in 2013. If you are a Shelter Island resident that is having difficulty meeting your financial obligations, it is important to understand that you are not alone and that help is available.

People can run into financial problems for a variety of reasons, many of which can arise without warning. Some of the most common causes of financial issues include unexpected illnesses, accidents, the loss of a job, poorly performing investments, or overutilization of credit. If you are having money problems, it is likely that you are being harassed be creditors and feel like there may be no way out of your situation. In addition, you may be dealing with the added stress associated with worrying about the bank foreclosing on your house or your car being repossessed. If any of this sounds familiar, there is a good chance that bankruptcy could benefit you.

Ronald D. Weiss, Attorney at Law has been helping people and business in Shelter Island address their debt through bankruptcy and other methods for nearly 30 years. He and his associates offer free consultations and will take the time to fully understand your financial situation in order to determine whether you would be able to benefit from bankruptcy. If you choose to file for bankruptcy, our team will walk you through every step of the process from filing to the discharge of your debt. We always strive to obtain the best possible outcome for each client we represent and ensure that our clients are able to enjoy a future with fewer financial problems. To schedule your free consultation, call our office today.

Determining Whether Bankruptcy is Right for You

Filing for bankruptcy is a big decision that can benefit a great number of people. It is important to understand, however, that bankruptcy is not right for anyone and can have certain drawbacks that may make it inadvisable. Examples of the kinds of financial problems that may make filing for bankruptcy a good decision include the following:

• Substantial unsecured debt, like credit card bills, unpaid medical bills, or personal loans
• Your debt load is such that the inability to keep up with your bills is not a temporary problem
• You are facing foreclosure or repossession of your personal property
• Your business is in debt to the extent that it will be unable to continue operations if you pay the bills
• You are facing lawsuits from your creditors

Importantly, while bankruptcy cannot eliminate your mortgage loan, it can stop any foreclosure proceedings that have already been started and keep foreclosure from moving forward during the time that your bankruptcy is pending.  When you are able to eliminate your other debts through bankruptcy, it may provide you with enough additional income each month to catch up with your payments. In this way, bankruptcy can save your home.

What Types of Bankruptcy Are Available in Shelter Island?

There are several different types of bankruptcy that are available to both businesses and individuals. The one that is most appropriate in your situation depends on a number of factors, including your debt load, your income, your assets, and your goals. Before filing for bankruptcy, it is advisable to have your financial situation thoroughly reviewed by an experienced bankruptcy attorney in order to determine which type of bankruptcy would most benefit you. Below is some basic information about some common forms of bankruptcy.

Chapter 7 – Chapter 7 bankruptcy² is the most commonly filed form of bankruptcy in the United States.  In this type of bankruptcy, all your nonexempt assets are liquidated in order to pay back debts. Most, if not all, remaining debts are discharged, which means that you will no longer be under any legal obligation to pay them back. Notable debts that cannot be discharged include student loan debts and past due child support payments. Not everyone can file for Chapter 7, however, as filers are required to pass the Chapter 7 means test, which balances a person’s income against their debts in order to determine whether they can afford to pay.

Chapter 13 – Chapter 13,³ on the other hand, involves a reorganization of debts rather than a liquidation of property. As such, it is often utilized by people who have significant assets that they would like to keep and who have the ability to make regular payments. Chapter 13 bankruptcy works by making court-ordered payments to a bankruptcy trustee who then distributes the money amongst your various creditors. The period of payments lasts anywhere from three to five years. So long as you are making your payments, you are protected from any collection activity like repossession, foreclosure, or the initiation of a lawsuit. Chapter 13 is not available for businesses.

Chapter 11 – Chapter 11 bankruptcy⁴ is very similar to Chapter 13, but can be utilized by businesses. In cases where a business wants to keep operating rather than liquidate and shut its doors, it provides an alternative to Chapter 7 bankruptcy. In order to file for Chapter 11, a business must be able to make regular payments to the court and be willing to be subject to court supervision regarding business decisions. After a Chapter 11 bankruptcy gas concluded, most remaining debts will be discharged, hopefully allowing the business to return to prosperity. It is important to note that Chapter 11 bankruptcies can be converted to Chapter 7 in the payment plan proves to be too onerous.

Call a Shelter Island Bankruptcy Attorney Today to Discuss Your Case

If you are experiencing financial problems, you should speak to a Shelter Island bankruptcy lawyer as soon as possible to learn about your options. Our office helps individuals and businesses in bankruptcy, foreclosure defense, mortgage modification, and other debt relief methods to lay the groundwork for a brighter financial future. To schedule a free consultation, contact us online or call our office today at 631-271-3737.

Dealing with Debt Collectors

Can they bring a lawsuit against you? Can they seize your home or vehicle? Can you go to jail?

Maybe this has happened to you: you’ve lost your job and your debts are mounting, or you’ve had some unanticipated medical costs that your salary simply can’t cover. Suddenly you are in debt and frightened about what’s going to happen to you and your family.

What may occur if you have a debt? Can you end up in jail? Can one sue you? What about those unpleasant phone calls from the debt collectors—can you stop them? You should know, there are regulations in place to safeguard you if you can’t afford to pay your obligations.

Can I go to jail for not paying my debts?

No. You can’t be thrown in jail because you owe money on a credit card or dentist bill. The only cases where someone goes to jail for debt issues is where they commit tax fraud; fail to respond to a court order or subpoena in a debt case; or fail to pay child support or court fines and restitution. It might be illegal for a debt collector to threaten you with jail time.

What is the difference between secured debts and unsecured debts?

Some debts are called “secured debts.” Secured debts have something that you agreed to offer as collateral for the loan. This means that the creditor can take the collateral back if you don’t pay the loan. Automobile loans, mortgages, and some furniture installment contracts are examples of secured debts.

If you default on a secured loan, the creditor will seize (or “repossess”) the collateral, sell it, and apply the proceeds of the sale to the amount you owe on the loan; if the collateral sells for less than the amount owed on the loan, the creditor may sue you to recover the shortfall.

References:
¹ http://www.city-data.com/poverty/poverty-Shelter-Island-New-York.html
² http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics
³ http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
⁴ http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics