Long Island Bankruptcy Lawyer
With the high foreclosure rates, increased unemployment, and consumer debts on the rise, many people have had a very difficult time staying on top of their finances and paying all of their monthly bills and expenses. As a result, millions of people throughout New York and the United States are suffering from mounting debt with no end in sight. Bankruptcy was designed to help people who have become so inundated with debt that they have fallen behind on their finances and can no longer pay their bills or other financial obligations. The goal of bankruptcy is to provide individuals and families with the financial relief they need to reclaim their finances so they can have a second chance to start fresh in life.
How does the bankruptcy process work?
When you understand what to expect when filing for bankruptcy, it will help to make it less mysterious. It will put you in a more causative position to manage your financial situation more effectively. A
Long Island bankruptcy lawyer at the Law Offices of Scupp & Berman, LLC will answer any questions you may have about the bankruptcy process. It is important to remember that the process of filing for bankruptcy differs depending upon which method of bankruptcy you are pursuing. The
timelines for the different methods can vary as well. Below is the typical process for Chapter 7 and Chapter 13 filings:
- Within 180 days before filing, you will be required to take a credit counseling course.
- Once your course has been completed, your attorney will file a petition with the bankruptcy court. Your creditors will receive notice that this has been done. From this point forward they will no longer be allowed to contact you for any monies you may owe them. An automatic stay is put on all other collection actions.
- After your bankruptcy petition is filed, you will have 15 days to file documents that fully disclose information about your income, expenses, assets and liabilities, transfers of property and creditor lawsuits. If you are filing for Chapter 13 you will also need to file a payment schedule.
- In Chapter 7 the next action is to file a Statement of Intention which tells the Court, your creditors and the Trustee what you intend to do with your secured property.
- About 45 days after the petition is filed, a creditor meeting will be scheduled and held. You must be present at this meeting. The purpose is to make sure you have honestly disclosed your debts, assets and income in filing for bankruptcy. Creditors may attend, but typically do not.
- In Chapter 7, the process is completed about four to six months after your petition was filed. It ends with your debts being discharged. In Chapter 13, the process ends when you have repaid your debts according to the payment plan. This will usually take three to five years to complete.
- Prior to the discharge of the bankruptcy you must complete a course in financial management.
Understanding the Different Types of Bankruptcy
Bankruptcy refers to the federal court process of eliminating or restructuring a person's debt. In the United States, the two most common forms of bankruptcy available to individuals and families are Chapter 13 and
Chapter 7. Chapter 7 bankruptcy, also known as liquidation, is the most common and most favored form of bankruptcy as it eliminates most of a debtor's unsecured debt. However, Chapter 7 does not discharge all of a person's debt. Certain debts cannot be discharged under Chapter 7, such as alimony, child support, student loans, court fines, personal injury damages and tax debt.
Chapter 13 bankruptcy is slightly different from Chapter 7 bankruptcy, as it does not discharge debt completely. Rather, Chapter 13 consolidates a person's debt and restructures it into a feasible monthly payment plan. Under Chapter 13 bankruptcy, you will have a set amount of time, usually three to five years, to pay off a portion of your debt each month. Although this type of bankruptcy does completely eliminate your debt, it does restructure it in a way that is manageable.
Chapter 11 bankruptcy is available to businesses that are experiencing financial troubles. Under Chapter 11, a business can continue to operate while it restructures or reorganizes its debts and finances. Many businesses favor this form as bankruptcy as it awards them protection from creditors during the reorganization and restructuring period. Furthermore, businesses can also repay their creditor while continuing to operate as they normally would.
Bankruptcy Lawyer Serving Nassau and Suffolk Counties
If you are suffering from inescapable amounts of debt and are considering filing for bankruptcy, the first step you should take is to consult a knowledgeable and experienced bankruptcy attorney. At Scupp & Berman, we have over two years of experience handling bankruptcy cases on behalf of individuals, families and businesses in Long Island and New York. When you come to our office, we will review your financial situation and help you determine whether or not bankruptcy is right for you. If it is, we help you file all appropriate legal documents and represent you at every meeting and court appearance. Our number one priority has always been to help our clients overcome their financial troubles, so they are free enjoy a fresh start in life without stress and anxiety weighing them down.
If you are interested in setting up a free consultation with an experienced bankruptcy lawyer, please contact the Law Offices of Scupp & Berman, LLP as soon as you can.