As you begin the bankruptcy petition process with your Nassau County bankruptcy attorney, you’ll be asked to file a statement of intention regarding property secured by liens (usually a car or a house.) In essence, you must decide whether you want to keep (and be obligated to pay for) the asset in question, or if you want to give it up.

Most debts are dischargeable under the federal bankruptcy code, so you can choose to relinquish the asset and have the outstanding debt become eligible for discharge. While this may be a prudent move for many types of secured assets, most people are reluctant to part with their personal vehicle because they rely on it for transportation to and from work.

One method that your Nassau County bankruptcy attorney may counsel you on is a Reaffirmation of Debt. This process can help you keep your personal vehicle during the bankruptcy process – but be warned: A Reaffirmation of Debt is a formal agreement that renews your legal obligation to be financially responsible the property in question. The renewed debt also becomes ineligible for discharge.

Reaffirming a debt also involves a few intricacies which your Nassau County bankruptcy attorney will explain to you in greater detail. For example, even if you and the lender agree to the terms of a reaffirmation, the bankruptcy judge can override it if he or she feels the obligation is not in your best long-term interest.

Additionally, even though you obligate yourself to this new contract once you sign it, most states give you a window of opportunity to cancel it if you later reconsider (usually 45 to 60 days, but again your Nassau County bankruptcy attorney will advise you about your particular situation.)

As a matter of routine, most Nassau County bankruptcy attorneys caution against committing to a Reaffirmation of Debt because it undermines the very protections you are seeking to receive by filing for relief. However, in the right circumstances, a Reaffirmation of Debt may be the best course of action for people who have a steady source of income and can commit to honoring an ongoing installment obligation.

It’s important to weigh all the pros and cons before undertaking a Reaffirmation of Debt. A reputable Nassau County bankruptcy attorney will help you weigh your options so you can decide if reaffirming a debt is the right path for you.

When people become resigned to the reality that they will have to file bankruptcy on Long Island, they often assume it’s best to file immediately.

But that assumption oftentimes leads to a misstep – one that can cost you even more in the end. Depending on your circumstances, it may be wise to hold off on your decision to file for bankruptcy on Long Island. A reputable Long Island bankruptcy attorney can help you assess your unique circumstances, and determine whether filing immediately is truly in your best interest.

What are some circumstances where you should probably NOT file for bankruptcy on Long Island immediately?

• You Want to Stop Collections:  If the sole reason you want to file for bankruptcy on Long Island is because you want to stop the incessant stream of collection calls, you can do so under the Fair Debt Collection Practices Act. You need merely send a letter requesting creditors contact you only in writing and cease collection calls at your home or work. An experienced Long Island bankruptcy attorney can help you write (and send) the letter if you feel you need help doing so.
   
• Your Past Income Was High, But Has Since Dipped:  In order to file under Chapter 7 bankruptcy (liquidation bankruptcy), your Long Island bankruptcy attorney will tell you that you need to be able to pass a “means test.” If your past year’s income was higher than stipulated for your state, you are automatically precluded from a Chapter 7 filing. Instead, you will have to file under Chapter 13 (Restructuring) bankruptcy. If your income has dipped within the past six months, however, it may behoove you to hold off and not file for bankruptcy on Long Island now. By waiting six more months, your re-calculated past year’s income will be lower (which may then qualify you to file under Chapter 7.) A reputable Long Island bankruptcy attorney can help determine what timing may be right for you.

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If you’re struggling financially and have faced the looming specter of a lawsuit, foreclosure, or other legal action by a creditor, it can truly be an intimidating process – one that leaves you, the little man, playing David to the big-wig corporate Goliaths.

 

One cut-throat tool that bankruptcy lawyers in Suffolk County see creditors use is a Default Judgment – a legal means to force payment via court order. When a creditor sues you and you fail to appear, the judge can issue a Default Judgment that grants the plaintiff’s request for an award. If granted, a Default Judgment legally binds the defendant to pay the damages to the plaintiff (creditor) the amount sought in the complaint (and usually interest and court costs, too.)

 

If you’ve received a court summons, it’s imperative that you immediately consult with an expert bankruptcy attorney in Suffolk who can advise you how to proceed. If, however, you’ve already been subject to a Default Judgment, don’t think that you’ve lost and should give up. There are ways to fight (and even overturn) a Default Judgment, but you first you have to take action.

Your Suffolk Bankruptcy attorney will assess your situation and see if there are grounds to vacate (re-open) the Default Judgment. Usually there are two avenues to overturning a Default Judgment.

 

The first, an Excusable Default, can be awarded if you:

 

1. Have a reasonable excuse for missing your court appearance
2. A Meritorious Defense – a good defense as to why the Default Judgment should be re-opened and vacated.

 

 

 The second is a Lack of Personal Jurisdiction, meaning that you were improperly served with the summons (or never served at all.) Some common reasons that Suffolk attorneys see instances of improper service are:

 

1.     Sending the summons via a mail (instead of delivering it in person)

2.     Leaving it with a neighbor to give to you

3.     Delivering it to your old address

4.     Serving someone else who has your same name.

 

Because of the many legal complexities that fighting a Default Judgment entails, it’s crucial that you consult with a reputable attorneys in Suffolk & Nassau County who can fight for your rights and help you beat a Default Judgment.

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Nassau Bankruptcy Attorneys know that it’s not just civilians who are impacted by the economy. The economic downturn has affected people from all walks of life across America, including many of the over 1.4 million active duty military personnel serving in the United States Armed Forces. Even though service members enjoy employment stability themselves, circumstances (such as a spouse’s layoff or a health issue) can wreak havoc on a military family’s finances.

 

Because the American government wants to keep national defense strong, lawmakers realized that service members on active duty needed a method of protection to help them preserve their economic status and rights while they are away from home on deployment.

 

Thus, the Servicemembers’ Civil Relief Act (SCRA) was signed into law in December of 2003. This long overdue piece of legislation was hailed by Bankruptcy Attorneys in Nassau County for its depth of protection to American military personnel.

 

Primary protections include:

 

Protection from Default Judgments:

 

Rules now require that plaintiffs file an affidavit with the court stating whether the defendant is in the military or not. Additionally, the court cannot order an entry of judgment until the court has appointed an attorney to represent the defendant. The court may also make further decisions, orders, or judgments to help protect the rights of a service member. Your local Nassau Bankruptcy Attorney can advise you about these critical rights in further detail.

 

Stay of Proceedings (Where Service Member has Notice of Proceeding):

Prior to any final judgment in a civil matter involving a member of active-duty military, the service member covered by the SCRA may ask the court to stay the proceeding pursuant to 50 U.S.C. app. § 522. This stay grants the defendant a stay of at least 90 days (and sometimes longer). The application for a stay under this section requires additional documentation, and your experienced Bankruptcy attorney can advise you further on this matter.

 

These are just two of the many protections offered to military personnel under the Servicemembers’ Civil Relief Act.

 

One caveat:  While the SCRA offers full protection to active duty military personnel, only a portion applies to the nation’s approximately 848,000 reservists. If you’re currently serving in a reserve status, it’s important to consult with your Bankruptcy lawyer to discuss the exact extent of protections allowed to you under the SCRA.

 

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Google the term “Long Island bankruptcy lawyer”, and you’ll get about 159,000 results (without quotes, it zooms to a whopping 400,000!).

So how are consumers supposed to narrow down the overwhelming amount of choices and find the best Long Island bankruptcy lawyer for their unique situation?

While there are a slew of websites that abound in offering advice on finding the best lawyer for you, we offer a very simple method – one that works well for any situation, including finding the best Long Island bankruptcy lawyer for your particular needs.

This 3-P method of inquiry breaks down what can seem like an arduous and time-consuming task into very doable ‘baby steps’:

PROBLEM:

The first step in getting started is to determine exactly what your problem is. While this might seem relatively simple at first, you might be surprised at what you find.

For example, you might be having problems making your monthly mortgage payment, and feel that your only choice is to file bankruptcy. You “assume” you’ll need a Long Island bankruptcy lawyer.

But what if the reason you’re struggling to make your mortgage payment is really because of high credit card balances and/or interest rates, or that your adjustable mortgage rate skyrocketed and is now unaffordable?

In these two cases, you might be better served by an attorney who specializes in debt consolidation and reduction for the first scenario, and a lawyer who is adept at negotiating loan modifications for the latter.

PROWESS:

Let’s face it:  Experience does count – especially when your fate is in someone else’s hands.

Regardless of the specialty – whether you need a Long Island bankruptcy lawyer, personal injury lawyer, or an attorney who specializes in real estate matters, you need to do your homework and check credentials, backgrounds, and references.

Here is a quick checklist:

Education:  Where and when did the attorney graduate law school?

Experience:   How long has the attorney been practicing law, and how long in the specific area you’re considering hiring him for?

Credentials:  Is the attorney currently licensed to practice law, and if so, in what states?  Are they a member of the American Bar Association or the State Bar Association?  Do they have any additional memberships or affiliations? 

References:  Ask for references – both from current and former clients.

PERSONABLE:

Lastly, there’s the human factor. Despite a great education and years of experience, it’s also extremely important that you feel comfortable with your new attorney. If you feel rushed, or that you’re not being heard, it may be a good idea to listen to your gut and look elsewhere.

By following the simple 3-P method of finding legal help, you can take heart in knowing that you’ve done all you can to make an informed decision. Whether you need the services of a Long Island bankruptcy lawyer or a family law attorney, the 3-P method can help narrow down the choices, so you can find the right attorney for you.

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One of the most feared aspects of Long Island bankruptcy proceedings is the “341 Meeting” with creditors. This name is derived from the section of the Federal Bankruptcy Code, 11 U.S.C. 341, that requires a meeting to verify your financial information under oath. These meetings are usually scheduled around 30 days after the bankruptcy petition has been filed.

Most consumers approach this meeting with a sense of dread or apprehension, and one of the biggest reasons for that is the fear of confronting the creditors. However, creditors usually do not appear at this meeting (although they have the right to later contest or dispute any information given in their absence.)

If you have doubts about who will be at the meeting or what will occur, your Long Island bankruptcy lawyer can meet with you ahead of time to discuss the potential events that are likely to unfold, and can answer any questions you have in more detail.

Another common fear is the mistaken belief that you will have to appear before a judge. This is incorrect, as 341 Meetings are presided over by a bankruptcy trustee, not a judge. The trustee will oversee the meeting and ensure that responses are formally put on record.Rest assured, your Long Island bankruptcy attorney will look out for your interests, and advise you as necessary throughout the process.

One of the most pleasant surprises petitioners encounter is that 341 Meetings are usually short (sometimes lasting under five minutes!). While it is a momentous event to you, it’s really just a matter of business as usual for the trustee, who can hear upwards of 20 cases an hour if things go smoothly, as well as your experienced Long Island bankruptcy lawyer who will guide you through the day’s proceedings.

Remember – despite your apprehension, you’ve come this far in the process, and the 341 Meeting is just another step along the path towards financial recovery and freedom. By working with an expert Long Island Bankruptcy attorney, you’ll finish the day that much closer to the final outcome – a fresh start towards regaining your financial footing in life.

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Tests. Not only are they a dreaded part of high school, they also play a critical role in determining eligibility for filing Chapter 7 bankruptcy in Long Island.

Chapter 7 – also known as liquidation bankruptcy – is used for those consumers who have few assets and/or limited means to meet their financial obligations.

Many people mistakenly believe that if they own a valuable asset (such as a home), that they are disqualified from filing Chapter 7. Conversely, some people may think that because they have what they deem to be little disposable income left over at the end of the month, they’re automatically eligible to file for Chapter 7 bankruptcy in Long Island.

There is no hard, fast rule that denies homeowners the right to file for Chapter 7 bankruptcy in Long Island (nor conversely automatically grants those with limited discretionary income protections under Chapter 7 either.)

Instead, the Bankruptcy Court relies on what is known as the Means Test – a formula that takes numerous factors into consideration and then calculates whether a debtor qualifies to file for a Chapter 7 bankruptcy in Long Island.

A Means to an End: Your State’s Median Income

The first step to getting started in implementing the Means Test is to determine whether your income is above or below your state’s median income. In NYC, for example, if you are below the state median then you automatically qualify to file Chapter 7 bankruptcy in Long Island.

If you are above your state’s median, then you’ll need to complete the Means Test in its entirety. The Means Test is merely a formula that deducts certain monthly expenses from your current average monthly income to determine your final official level of disposable income.

Why Use the Means Test?

The purpose of the Means Test is to delineate those who earnestly cannot pay their debts, from those who have some means to do so. Many people want to file a Chapter 7 bankruptcy in Long Island, believing that it will erase all of their debts. While this can sometimes be the case, there are also many instances where this is not so.

Furthermore, for those with assets such as a home, Chapter 7 may not be the right solution for you. Only by working with a competent attorney who handles Chapter 7 bankruptcy in Long Island will you be able to determine which filing is right for you.

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Many people mistakenly believe that once they’ve missed a house payment or two, that their home is bound to be foreclosed upon.

 

But today more than ever, that’s far from the case. Lenders are drowning in a glut of properties on the market, and thus have a keen interest in helping homeowners stop home foreclosures in Long Island. 

 Once a lender has filed a Notice of Default, it becomes much more difficult (but not impossible) to stop home foreclosures on a Long Island property. This filing is a legal way for lenders to protect their interest, and it starts the clock ticking against you as you endeavor to stop home foreclosure on your Long Island home. Since foreclosure is a timeline-driven process, it’s important to act immediately – as soon as you foresee you will have problems in making your payments.

 

Here are just a few ways homeowners can stop home foreclosures on Long Island properties:

 

1.  Be Proactive: In order to stop home foreclosures in Long Island properties, it’s imperative that you take the initiative and contact your lender before you miss a payment. Oftentimes, terms can be worked out that allow you to make up a missed payment (i.e., paying $100 extra a month for the next year to make up for this months missed $1,200 mortgage payment.) By proactively working with your lender, you’ll be demonstrating your intent to meet your obligation, and your lender will be much more willing to work with you.

 

2.  Extra time to make up missed payments:  Some lenders will extend a grace period before taking legal action against you, so it’s a good idea to at least ask for this option.

 

3.  Loan Modification – Reduced rate:  Lenders are more willing than ever  to consider loan modifications that reduce your interest rate (or convert an adjustable rate into a fixed rate.)

 

4.  Loan Modification – Extended Amortization Period:  Another option is to ask to extend the life of your loan, often from a 30-year loan to a 40-year loan.

 

5.  Backload Missed Payments: While some lenders want missed payments repaid up front, tacking missed payments onto the end of the loan is becoming an increasingly popular option. Recalculating and re-amortizing the loan can be a very effective means to help you catch up, and to stop foreclosures on your Long Island property.

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Filing bankruptcy is often a last resort for most people who’ve done everything in their power to try to pay their debts. After exhausting all other avenues of settlement, bankruptcy is often the only viable solution to help people regain their financial footing.

Because of the complexities of the legal system, it’s prudent to seek counsel from a local bankruptcy lawyer in Nassau who can help guide you through the legal process. One key point your lawyer will go over with you is what form of bankruptcy filing is right for you.

Chapter 7 bankruptcy – also known as Liquidation Bankruptcy – is commonly used when the debtor has little property except for basic necessities (such as furniture and clothing.) In order to qualify, however, a petitioner has to have little or no money left after paying basic monthly expenses, but your bankruptcy lawyer in Nassau can advise you in greater detail regarding this criteria. Other things typical of a Chapter 7 filing include:

• - Most unsecured debts can be completely eliminated
• - The process is relatively quick compared to other types of filings
• - You gain the benefit of protection from contact from creditors, both during the filing and after the debts are discharged.
• - Many courts require mandatory credit counseling, which can help you make the most of the fresh start you’re embarking upon.

The process for commencing a Chapter 7 bankruptcy starts with a comprehensive consultation with a bankruptcy lawyer in Nassau, who will begin the process to prepare the petition.

While the benefits of Chapter 7 bankruptcy are grand for those in debt, there are downsides that need to be weighed, including losing most (if not all) of your non-essential assets, having your personal business on public record, and a negative impact on your credit history. That said, Chapter 7 bankruptcy has helped thousands of people regain their financial footing, and a reputable bankruptcy lawyer in Nassau can help put you back onto the road to financial freedom.

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Many people mistakenly believe that bankruptcy is one all-encompassing concept – something that releases debtors from some or all of their debts.

However, the law takes a much more detailed approach to the concept of bankruptcy, and divides it into several sub-categories in an attempt to ensure that all parties are best served by the bankruptcy protection process. That’s why it’s critical to work with only an experienced bankruptcy attorney in Suffolk who knows the ins and outs of the bankruptcy process.

The two most common types of bankruptcies are Chapter 7 (also known as Liquidation bankruptcy) and Chapter 13 (known as Reorganization bankruptcy.) While both have their pros and cons, an experienced bankruptcy attorney in Suffolk can help guide you through the process, so you can decide which one is best for you.

Chapter 7 bankruptcy is commonly used when the debtor has few if any assets other than basic necessities (such as furniture and clothing.) Most unsecured debts can be eliminated completely, and the process often progresses much more rapidly than other types of bankruptcies. Again, a bankruptcy attorney in Suffolk can advise you in further detail if Chapter 7 might be right for you.

The goal of Chapter 13, on the other hand, is to reorganize your finances in order for you to pay off as much of the debt as you can, while having the remainder legally eliminated by the court if possible. One big attraction of Chapter 13 over Chapter 7 is that it lets you retain most of your property.

If you’re in a financial bind and wake up every morning wondering how you’ll get through the day, filing bankruptcy might be the right choice for you. While there are some downsides to filing bankruptcy, the benefits can be truly life changing.

Whichever option you’re contemplating, it’s imperative that you seek competent legal counsel from a reputable bankruptcy attorney in Suffolk, who can give you the advice you need, so you can start down the road to fiscal recovery.

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