Bankruptcy for Homeowners and Consumers
New York Bankruptcy Attorney
Nassau County | Suffolk County | Manhattan | Bronx | Brooklyn | Queens | Staten Island | Westchester County | Long Island NY
Congress’s authority to make laws concerning bankruptcy is derived from the United States Constitution. The current Bankruptcy law is designed to protect debtors and to give them a fresh start. The law is a uniform federal statute and is broken down into chapters.
Chapter 7 bankruptcy is a straight bankruptcy, where all assets are liquidated and the funds received from those assets are used to pay off creditors. If you do not have any non-exempt assets, you pay your creditors zero.
Chapter 13 bankruptcy has a payment plan that can be either a percentage of your debt or for all of your debt. The plan can take between three to five years to be completed and plan payments are made to a chapter 13 bankruptcy trustee who sends the payments to your creditors. There is a $50,000 per person Homestead Exemption for individuals who own a house (in New York). A husband and wife who own a home that has $100,000 in equity can therefore still file a chapter 7 bankruptcy.
Before a bankruptcy is filed, a disposable income and means test must be met. There is an established median income level for each geographic area that the debtor cannot exceed. If the individual has significant income left over after paying his or her monthly expenses, he also must pay off a portion of the unsecured debts.
When a bankruptcy is filed, an automatic stay is ordered by the federal bankruptcy court. This prevents creditors from bringing lawsuits against the debtors, garnishing their wages or starting foreclosure proceedings. Telephone calls to collect their debts or sending letters to the debtor regarding the collection of debts are also prohibited . This eliminates the stress and aggravation of collection activities that debtors have to deal with.
Approximately three to six weeks after the filing of the bankruptcy-petition, there is a meeting of the creditors called a “341 meeting”. At the meeting, the trustee appointed to review the bankruptcy asks the debtors questions under oath concerning the accuracy of the information contained in the bankruptcy-petition.
Within 60 days of the 341 meeting, the trustee and other creditors must file any objections they have to the exemptions claimed by debtor in his or her bankruptcy. Creditors can object to the discharge of a debt if it was obtained through fraud, related to a divorce, theft was involved or the debt relates to personal injury claims. Student loans, child support or spousal maintenance money (alimony payments) owed to state, federal or other governmental agencies are not dischargable in bankruptcy.
Credit Counseling Course
Prior to filing bankruptcy, the debtor must take a credit counseling course either online or by telephone. After the 341 meeting, the second half of the credit counseling course must be taken.
Contact a New York Bankruptcy Attorney at the Law Office of Elliot Schlissel
Bankruptcy is an excellent means of dealing with debt. Before filing bankruptcy, you should meet with a competent attorney, experienced in handling bankruptcy matters, to discuss whether this course of action is appropriate for you. For more than 32 years, the Law Office of Elliot Schlissel has been representing debtors in bankruptcy-cases. We have filed more than 400 bankruptcies on behalf of debtors. Should you have any questions regarding whether bankruptcy is the correct route for you to take, feel free to call us at 1-800-344-6431.
The Law Office of Elliot S. Schlissel helps people who have fallen on hard times throughout New York, including Nassau County, Suffolk County, Manhattan, the Bronx, Brooklyn, Queens, Staten Island, Westchester County, Long Island and surrounding areas. Visit our contact page or feel free to call toll free, any time, day or night, at 1-800-344-6431 or contact us at 718-350-2802. You can also reach us in Nassau County at 516-561-6645.
We make clients a priority, treating each client with dignity and respect. When you seek our help, you have our assurance that your private and sensitive legal matters will be handled with the utmost discretion.
There is no charge for an initial consultation. We will be happy to arrange an appointment to evaluate your case and allow you to explore how an attorney – client relationship with our firm can benefit you. Your attorney will discuss fees before taking your case.
Our law firm strives to maintain reasonable rates. The length of time required to resolve your issue is the primary factor in fee determination. We keep a tight rein on your legal. The services you pay for are promptly and efficiently delivered. Our firm will work out payment plans and accepts credit card payments.
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