Long Island, New York Matrimonial Law Attorneys

Bankruptcy Law

What is Bankruptcy?

Bankruptcy is intended to give people a fresh start, free of debt. In general, there are two chapters of bankruptcy available to individuals in financial distress. A Chapter 7 is used to discharge or wipe out obligations, but may result in the liquidation of non-exempt assets. A Chapter 13 is a repayment plan that can reduce debt to a manageable level to be paid back over a three- to five-year plan.

Is Bankruptcy a good option for me?

Financial problems can be triggered by unfortunate, unforeseen or even tragic events. Many times, your financial situation is not your fault. If any of these situations sound familiar, bankruptcy may be the solution:

• You have lost a job or had a reduction in income;
• You have incurred medical debt due to illness or accident;
• You are late with credit card payments and are being harassed by rude and unsympathetic debt collectors;
• You are being threatened with legal action, are already being sued or have judgments against you;
• You have fallen behind on mortgage or car loan payments as a result of trying to keep up with credit card payments that carry exorbitant interest rates, possibly to the point of facing foreclosure or repossession of your property;
• You are trying to keep your debts current but are going without many essentials of life to do so;
• You have researched credit counseling, debt consolidation or debt settlement but have been unable to meet the requirements of such plans.

Regardless of the reason for your financial distress, you should not be embarrassed, ashamed or afraid. There is a lot of misinformation out there about bankruptcy. To discuss any of the topics below with an experienced bankruptcy attorney, please contact us and schedule a free, in-person consultation at either our Garden City or Hauppauge office.

Call us today and educate yourself.

• Chapter 7 fresh start: The goal of a Chapter 7 bankruptcy filing is to wipe out (discharge) your debts in exchange for a liquidation of certain unprotected (non-exempt) property. In many cases, much or all of your property will be protected (exempt).
• Chapter 13 repayment plan: The goal of a Chapter 13 bankruptcy filing is to repay your debts in monthly installments over a three- to five-year plan. It can be used to defend against foreclosure, allowing you to repay mortgage arrears over time and save your home. It can also be used to reduce certain debts.
• The automatic stay: A bankruptcy filing triggers an order of the court prohibiting all collection activity. This includes creditor harassment, lawsuits including foreclosure actions, and property seizures including bank account freezes, and wage garnishments.
• Chapter 11 business reorganization: The goal of a Chapter 11 bankruptcy filing is to allow a struggling business to continue to operate while creating a plan of reorganization under the protection of the bankruptcy court.