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Smithtown, originally called “Smithfield”, was first settled around 1665.  Local legend has it that, after rescuing a Native American chief’s kidnapped daughter, Richard Smith[1] was told that the chief would grant title to all of the land Smith could encircle in one day “on a bull”. Smith chose to ride the bull on the longest day of the year (summer solstice), to enable him to ride longer “in one day”. The land he acquired in this way is said to approximate the current town’s location. There is a statue of Smith’s bull, known as Whisper, at the fork of Jericho Turnpike (New York State Route 25) and St. Johnland Road (New York State Route 25A).

Residents of Smithtown who are experiencing financial struggles can contact the office of Ronald P. Weiss to discuss bankruptcy options and solutions.  The U.S. Bankruptcy Court Eastern District of New York[2] reports that 3,590 Bankruptcy Petitions were filed in Suffolk County in 2015.  During that year, 2,742 were Chapter 7 Petitions and 815 were Chapter 13 Petitions.

Bankruptcy Laws

Article I, Section 8, of the United States Constitution[3] 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 called the “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[4], Bankruptcy Rules and local rules set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.

When Should You Consider Filing a Smithtown Bankruptcy?

The decision to file for bankruptcy is very personal and should be discussed with an experienced Smithtown bankruptcy attorney who can review all of the applicable bankruptcy and non-bankruptcy options.  It might be time to consider a bankruptcy filing, however, if you have one or more of these issues:

• Foreclosure:  You are facing foreclosure on your home because of unpaid mortgage payments
• Debts:  Your unsecured debts are greater than one year’s gross income
  Garnishment:  Your wages were garnished to satisfy unpaid debts
• Collections:  You are receiving collection phone calls or letters from one or more debtors because you are more than 30 days behind on monthly bills.
• Medical bills:  You and your family have mounting medical bills that are not covered by insurance.

Chapter 7 Bankruptcy in Suffolk County

There are several different types of bankruptcy petitions.  Only a Suffolk County bankruptcy attorney can determine which petition is appropriate based upon your financial situation.  One type of petition, filed in accordance with Chapter 7, is often called a liquidation bankruptcy as it gives debtors a fresh start. A Chapter 7 filing requires individuals to turn over non-exempt assets including furniture, jewelry, and household contents, which are sold to pay creditors. In return, debtors usually receive a discharge of their debt with the exception of certain types of non-dischargeable debt such as alimony, child support, certain taxes and student loans. This form of bankruptcy provides for the relatively quick elimination of most debts and does not require payments to creditors after the bankruptcy filing.  Because not all people can file Chapter 7, such as people with higher incomes, it is necessary for a Smithtown bankruptcy attorney to decide the most appropriate filing in your individual case.

What Documents Do I Need to File a Smithtown Bankruptcy?

Before you schedule an appointment with a Smithtown bankruptcy attorney to discuss your options, there are several documents that you need to gather including:
Tax Returns
You will usually need to provide copies of your tax returns or tax transcripts for the last two years.  If you have unfiled returns, you will need to explain why you were not required to file. Some trustees may require more tax returns, but it will be helpful to have copies of the past two years to review with your attorney.
Income Documentation
If you are an employee, you will need copies of paystubs for the six-month period prior to the bankruptcy and your last two W-2 statements. If you are self-employed, you will probably need to provide a profit and loss statement for the same six-month period as well as business bank statements to verify the amounts on the statement. If you have income from other sources such as social security, disability, or rental properties, proof of this income is also required.  It is important to bring as many records as you have to review with your lawyer.
You also need information on all other sources of money that come into your household, such as regular gifts from others, support, part-time jobs, the sale of property, rent, and anything else that comes to mind. You may not have to include it all, but it sure will be easier for your attorney to prepare your documents with all your information easily available.
Real Estate
If you own real estate, you will need to provide information regarding the current value of the property, mortgage statements showing the current loan balance, and proof of homeowners’ insurance.
Vehicles
If you own a vehicle you will need to provide copies of your registration, proof of insurance as well as information confirming the current value of the automobile, motorcycle and/or truck.  If there is a loan owed on the vehicle, you will also need to confirm the balance owed and the amount of the monthly payment.

• Retirement and Bank Accounts
• Recent bank and retirement account statements usually have to be provided
• to the bankruptcy trustee for all accounts.

Miscellaneous
If you have any other special circumstances affecting your bankruptcy such as being required to pay alimony or child support or other unusual expenses, you will need to show proof of these expenses.
Bills:  You need to provide copies of all recent bills and collection letters.  If the accounts have been turned over to collections, you probably want to find the original creditor’s bill.  Credit reports do not have all the information needed, nor does a credit report have a complete list of everything that an individual owes.

Any attempt to negotiate debts can be referred to as debt settlement, which is a general term. Debt settlement is specifically the act of offering a lump sum or installment payment toward the remaining balance of an existing debt in exchange for the forgiveness of the difference.

Which Debts May Be Repaid?

There is no need or reason for you to feel humiliated if you have found yourself in a position where you need legal aid for the management of debts. Millions of Americans are prevented from living the lives they want every year by unpaid debts and low credit scores. You are showing your resolve to get through this challenging time and improve your financial situation by considering debt settlement.

The fact that debt settlement does not eliminate all debts must be emphasized once more. Only unsecured debts are eligible for total forgiveness and installment payments.

Unsecured debts include:

• Credit card balances
• Cell phone bills
• Medical bills
• Business debt
• Other unsecured loans

Secured debts, like mortgages and auto loans, are not admissible for settlement because they are backed by property.

Why Settle Your Debts?

Many people should use the option of settlement before turning to the legal processes of bankruptcy for those debts that qualify. While it may not always be stated clearly, many lenders frequently participate in debt negotiation since it ensures a sizable chunk of payments sooner than bankruptcy would.

Lenders are likely to cooperate with your lawyer's debt settlement efforts if they receive the incentive of swifter and more substantial repayment. By working with a skilled bankruptcy lawyer in Smithtown, the individual gains enormous negotiating power and frequently manages to reduce outstanding balances by 50% to 90%.

Any time you choose to settle a debt, it is advised that you speak with a lawyer experienced in this area of law. To ensure that your rights are not violated by creditors and to help you reach a fair and advantageous settlement, you should work with a skilled Smithtown bankruptcy attorney.

Contact a Smithtown Bankruptcy Attorney

If you are unable to pay your debts it is important to speak to a Smithtown bankruptcy attorney who can interpret and apply federal and New York laws and discuss all of the issues that may arise from your financial situation.  The bankruptcy process is complex and relies on legal concepts like the “automatic stay,” “discharge,” “exemptions,” and “assume” making it necessary to contact an experienced bankruptcy ttorney.

Our office is located in Melville, New York and is easily accessible from Smithtown from the Northern State Parkway. Take exit 40 toward NY-110N/Walt Whitman Road.  If you need further directions or want to discuss bankruptcy solutions,

call the office of Ronald P. Weiss today at (631) 296-0361.
References
[1] http://longislandgenealogy.com/bull.html
[2] http://www.nyeb.uscourts.gov/statistics?field_stat_date_value_1%5Bvalue%5D%5Byear%5D=2015
[3] http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/process-bankruptcy-basics
[4] https://www.law.cornell.edu/uscode/text/11