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Bankruptcy Basics in Hempstead, New York
According to the United States Bankruptcy Court Eastern District^[1] New York, in 2015, there were 1,416 Chapter 7 Bankruptcy filings in Nassau County, and 540 Chapter 13 Bankruptcy filings.  As of February 22, 2016, there were already 89 Chapter 7 Bankruptcy filings and 54 Chapter 13 Bankruptcy Filings in Nassau County.
Nassau County Bankruptcy Statutes
Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times since its enactment. It is the uniform federal law that governs all bankruptcy cases.
The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure, often referred to as Bankruptcy Rules, and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code, Bankruptcy Rules as well as local rules, set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.
What is a Hempstead Bankruptcy Discharge?
A bankruptcy discharge^[2] releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.  The bankruptcy discharge varies depending on the type of case the debtor files such as Chapter 7 or Chapter 13.
Chapter 7 Bankruptcy in Nassau County
A chapter 7 bankruptcy case involves a bankruptcy trustee gathering and selling the debtor’s nonexempt assets and using the proceeds of such assets to pay holders of claims, known as creditors, in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets.
A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a chapter 7 discharge is subject to many exceptions, debtors should consult with an experienced Hempstead bankruptcy legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases.
Nassau County Chapter 13 Bankruptcy
A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period.  If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years in accordance with the terms of  11 U.S.C. §1322(d)^[2].
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts, other than a mortgage for their primary residence, and extend them over the life of the chapter 13 plan. Doing this may lower the payments.
Bankruptcy Terms for Hempstead
If you are an individual who is having difficulty paying their monthly expenses, it is important to speak to a Nassau County bankruptcy attorney who can review the distinctions between the various filings including, Chapter 7, Chapter 11 and Chapter 13, before deciding the best method of proceeding for your specific case.  In the meantime, there are general bankruptcy terms that apply to nearly all Hempstead bankruptcy cases as follows:

• Bankruptcy: A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).
• Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. §§ 101-1330^[3]), the federal bankruptcy law.
• Chapter 7: The chapter of the Bankruptcy Code providing for “liquidation,”(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.)
• Chapter 11: The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11).
• Chapter 13: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years).
• Consumer debts: Debts incurred for personal, as opposed to business, needs.
• Creditor: One to whom the debtor owes money or who claims to be owed money by the debtor.
• Discharge: A release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts.
• No-asset case: A chapter 7 case where there are no assets available to satisfy any portion of the creditors’ unsecured claims.
• Nondischargeable debt: A debt that cannot be eliminated in bankruptcy. Examples include a home mortgage, debts for alimony or child support, certain taxes, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime.
• Reaffirmation agreement: An agreement by a chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e. the car) that would otherwise be subject to repossession.
• Secured debt: Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Examples include home mortgages, auto loans, and tax liens.
• Trustee: The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator.
• Unsecured claim: A claim or debt for which a creditor holds no special assurance of payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor’s assessment of the debtor’s future ability to pay.

Both federal and New York bankruptcy laws are complicated and can be difficult to apply to an individual case.  If you are unable to pay your debts it is important to speak to a Hempstead bankruptcy attorney who can interpret and apply federal and New York laws and to discuss all of the issues that may arise from your financial situation.  Call the office of Ronald P. Weiss today at (631) 296-0361 in order to discuss the specifics of your case and to review all of your possible bankruptcy solutions.
References:
[1] http://www.nyeb.uscourts.gov/statistics?field_stat_date_value_1%5Bvalue%5D%5Byear%5D=2015
[2] https://www.gpo.gov/fdsys/granule/USCODE-2011-title11/USCODE-2011-title11-chap13-subchapII-sec1322
[3] https://www.law.cornell.edu/uscode/text/11