“When an honest man is hopelessly down, financially, nothing is gained by keeping him down.” - United States Congress regarding bankruptcy laws
As bankruptcy lawyers who live and work in Long Island, we understand that often times good people from Nassau County and Suffolk County can be overwhelmed by high credit card interest rates, mortgage payments that ballooned up, or other bills that seem impossible to pay. You start making late payments, but sometimes can’t make any payments at all. Then the nightmare of phone calls and harassing letters from the bill collectors begin. You stop answering the phone while that mountain of bills keeps growing. You can’t continue to live like this, but how are you going to get out of this mess? You’ve heard about chapter 7 and chapter 13 bankruptcies, but don’t know much about it, and don’t know any Long Island bankruptcy lawyers. Ask yourself:
Do You Want To Be Debt Free And Start Over?
Start by calling an experienced Long Island bankruptcy lawyer like Monteiro & Fishman LLP and getting some answers. Bankruptcy, under chapters 7 or chapter 13, is not about cheating or doing something wrong, but about taking advantage of federal and state laws that allow you to get on with your life – debt free. Bankruptcy laws were designed to give the “honest but unfortunate” debtor a way out of a financial crisis. An experienced Long Island bankruptcy lawyer can help you:
- Stop harassing phone calls & letters from collection agencies.
- Eliminate debt and credit card bills.
- End wage garnishments.
- Allow you to keep your house, car and personal belongings.
Welcome To Your New Beginning.
Bankruptcy laws, under both Chapter 7 and Chapter 13, were designed to eliminate your debt and give you a fresh start at rebuilding your credit and financial life. We are Long Island bankruptcy lawyers who have helped clients in Nassau County and Suffolk County make their financial problems a bad memory.
If you have questions or want to talk about your financial situation, then call us to schedule your face-to-face meeting directly with our bankruptcy lawyers, Marcus Monteiro, Esq. or Michael Fishman, Esq. - completely free of charge. We welcome all of our Long Island neighbors, from laborers to judges. We will listen to your concerns, review your finances (like your bills, expenses and income), then give you our professional assessment.
We focus our practice on our Long Island neighbors in Nassau and Suffolk. We have assisted clients throughout Nassau and Suffolk, from Oceanside and Bethpage to Islip and Dix Hills.
We are Long Island bankruptcy lawyers who are thoroughly familiar with the bankruptcy code. Together we will explore the solutions to your problems and consider whether Chapter 7 or Chapter 13 bankruptcy is right for you.
How The Process Works
Don't be scared by the bankruptcy process – as Long Island bankruptcy lawyers, we will guide you through it. Most of our clients call us up with initial questions. Often times they want to meet us at our offices by the District Court, in Hempstead, New York. After our meeting, if we determine that bankruptcy might be helpful, we then determine your Chapter 7 eligibility or Chapter 13 eligibility. Under both Chapters, we fill out our client questionnaire together. That questionnaire contains basic background information, and a detailed listing of all of your debts, property, income and expenses. We also run your credit to make sure we don't miss any creditors. We use this information to fill out the bankruptcy petition, which the firm files with the local bankruptcy court. If you live in Nassau or Suffolk County, that court is located off the Southern State Parkway, exit 43A, in Central Islip, NY. Your petition will contain a schedule of "exempt" property; that is, property you're allowed to keep after the bankruptcy.
Immediately upon filing the bankruptcy petition, the federal bankruptcy court prohibits your creditors from all collection activity, typically called the Chapter 7 "automatic stay." When the automatic stay is in effect, creditors may not start or continue lawsuits, wage garnishments, foreclosure actions, eviction proceedings, or even make telephone calls demanding payment. Those creditors must wait until the bankruptcy proceeding is concluded, or request special permission from the bankruptcy court by making a motion to resume activities. Put another way, the phone calls from the bill collectors stop. If they don't, call us and we'll take care of it for you.
After preparing the Chapter 7 petition, and filing it, between 20 an 40 days thereafter, you will have to attend the "341 meeting of creditors" at the bankruptcy court. At his meeting, the bankruptcy "trustee," will ask you questions, under oath, regarding your financial affairs and property. The trustee is an impartial lawyer designated by the bankruptcy court to administer your case, examine your petition, and determine if any assets exist to distribute to your creditors. You must provide those documents that the trustee requests, like tax returns and pay-stubs, and sometimes even checking account statements. These examinations typically take no more than 10 minutes. If no nonexempt assets exist, the trustee will file a "no asset" report with the court. Most Chapter 7 cases involving individual debtors receive this "no asset" report in a couple of weeks.
Unless the bankruptcy court receives a complaint or objection, the bankruptcy court will generally issue a Chapter 7 discharge order in about 60 to 90 days following receipt of the "no asset" report.
The discharge order releases you from personal liability for those qualifying debts listed in the petition, meaning you don't have to pay any money back and your debtors can take no collection actions against you. Secured creditors retain their rights to seize property that secured their debts, but the debtor may choose to voluntarily keep certain property, like a house or car, and reaffirm that debt. Thereby retaining assets, while eliminating debt.
A Chapter 13 bankruptcy operates like a Chapter 7 in many ways, but the Chapter 13 requires that you start a three to five year payment plan for your debts. A Chapter 13 bankruptcy is an option if you don't qualify for a Chapter 7, or if you want to keep certain property that you would have to turn over to the trustee in a Chapter 7. A Chapter 13 bankruptcy does not liquidate debt like a Chapter 7, but allows you to pay some of your debt to your creditors over the plan period in exchange for keeping your property. At the end of the payment period, you are entitled to a Chapter 13 discharge. So, while Chapter 7 requires you to turn over property to the trustee for sale, Chapter 13 allows you to keep it. A Chapter 13 is also useful when a debtor has fallen behind on mortgage payments and can't immediately catch up, because those arrears can be repaid in the debtor's three to five year plan. In that scenario, the bank is prevented from foreclosing on your home, while you can cure the delinquent mortgage payments over the following years. Also, unsecured second mortgages, lines of credit, and liens can be eliminated. Chapter 13 also allows you to reschedule secured debts and extend them over the payment plan, many times lowering each payment.
You must have steady income to satisfy Chapter 13 eligibility. Also, you will have to attend the Chapter 13 341 meeting of creditors and plan confirmation hearing.
Can I Get Fired If I File Bankruptcy?
In a word, no. Section 525(b) of the Bankruptcy Code says, "No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this [bankruptcy] title…" So if you're fired solely because of your bankruptcy, your employer is violating federal law.
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NOTE: Please note that, just as each person's finances are unique, so is each person's bankruptcy case. The above is a very general outline of the bankruptcy process and is not meant to serve as legal advice or to create an attorney client relationship. The eligibility requirements, the means test, the determination of exempt assets, asset valuation, the determination to use either state or federal exemptions are just a few of the many issues that are unique to each person and require individualized attention and advice. Only an experienced bankruptcy attorney can more fully explain the complete process, and explain those items and processes that are particular to your bankruptcy case. Please call our office with individual questions or to schedule an appointment.
