Many people who want to escape from New York for a quieter life are choosing Southold and other locations on the North Fork of Long Island. With beaches and relatively affordable housing, families are eschewing the Hamptons for the low-key atmosphere of Southold. Many people are seeking out properties to purchase in Southold as their first real estate investment, though they may use it as a second home to their city rental.
Simply because Southold and surrounding areas are growing in popularity does not mean that some households in the area are not experiencing hardships, especially financial hardships. The good news is that financial difficulties do not have to define your life and New York law provides different forms of relief for struggling households. One of the avenues for such relief is to file for bankruptcy.
At the law office of Ronald D. Weiss, P.C., we help many individuals, married couples, and businesses in and around Southold resolve their financial problems and start with a fresh financial slate. If you would like to learn more about bankruptcy or other debt solution options, please call our office today.
While filing for bankruptcy is not the only option to resolve financial issues, it can be the best option if you believe your inability to pay your bills is not a temporary problem. If you have overwhelming debt and do not foresee any change in your inability to pay, bankruptcy can help to largely wipe away much of that debt to free up income so that you can meet future obligations.
The ultimate goal of a bankruptcy is the discharge, which is the order issued by the court to end your obligations to pay certain qualifying debts. Different types of bankruptcy have different requirements to obtain a discharge, however, any type of discharge can help rid you of credit card balances, medical bills, certain legal judgments, certain tax debts, past due rent, and much more. However, long before a discharge, a bankruptcy filing can help to immediately relieve stress as the court will order an automatic stay that goes into effect at the time of filing. This automatic stay prohibits any further collection attempts – including lawsuits, garnishments, letters, phone calls, repossessions, and foreclosures – during your bankruptcy case. Therefore, bankruptcy can provide relief from financial pressures almost immediately and as you await your discharge.
If you decide that bankruptcy is the preferable debt relief option for you, the next step is to carefully consider which type of bankruptcy is right for your situation. There are many factors that can contribute to this determination and a skilled bankruptcy attorney can help you weigh the options and file in the most beneficial manner. The following are the three main types of bankruptcy that we handle at our law firm:
Chapter 7 – Chapter 7 bankruptcy1 is the most common for consumers and is also often a wise choice for small businesses. Chapter 7 is a relatively quick process with no obligation to make further payments to the court or toward certain debts. Instead, a bankruptcy trustee will seize any eligible property or assets that you have and liquidate them to pay as much as possible toward your debts. For this reason, Chapter 7 is often referred to as the “liquidation” bankruptcy. This does not mean that you will be left with no property, however, as the law provides exemptions that your attorney can help you use to protect as much as your property as possible. The court will then discharge any remaining qualifying debts. Chapter 7 is generally best for filers with lower income, fewer assets, who have significant unsecured debt, and businesses that plan to close their doors.
Chapter 13 – Chapter 13,2 on the other hand, does not involve any liquidation of property, though you will be required to make payments to the court for three to five years, which will go to pay down your debts, which will be reorganized by the courts. The payment amount and length of the payment plan will depend on how much income you have available to pay. Once you have successfully completed your payment plan, the court will discharge your remaining debts. This type of bankruptcy is not available for businesses, but is preferable for consumers who have a significant amount of property they want to protect or they have too much income to qualify for Chapter 7.
Chapter 11 – Chapter 11 bankruptcy3 is similar to Chapter 13 bankruptcy in that it requires reorganization of your debts and a strict payment plan instead of liquidation. While it is available to both consumers and businesses, the large majority of Chapter 11 filers are businesses that want to remain in operation after the bankruptcy. Until your business completes the payment plan, you will have to remain in close contact with the court and keep it apprised of any changes in the financial state of your business. In addition, the court may be able to dictate certain aspects of the operations of your business to preserve assets. At the successful completion of the plan, you can receive a discharge of any debts that remain.
No matter what type of bankruptcy you select, the process can be complicated and you want to ensure you have a knowledgeable bankruptcy attorney handling your case. Your attorney will help ensure that all forms filed with the court are accurate and will represent you in all communications with the bankruptcy trustee and at court hearings. This assistance can prevent any delays and can ensure that you receive a successful discharge.
New York attorney Ronald D. Weiss has assisted many clients in the Southold area with their financial situations through bankruptcy, mortgage modification, foreclosure defense, and other debt relief methods. If you are overwhelmed by debt and want to learn more about the bankruptcy process in New York and how our office can help, please call 631-271-3737 or fill out our online form to schedule a free consultation.
Even if you’re not filing a joint petition with your spouse, you must give a summary of your spouse’s income and any property or obligations that you own or are liable on jointly. This is done so that the court can assess your family’s overall financial situation.
Before filing for bankruptcy, you must first complete a credit counseling course (which can be completed online or over the phone) and obtain a credit counseling certificate (which is good for six months). Credit counseling must be obtained through a counseling agency on the government’s approved list. Credit counseling has a price, although it is small—around $25 to $35.
By filing for Chapter 7 bankruptcy, you are essentially turning over your nonexempt property to the bankruptcy court. You are not allowed to sell or give away any of your nonexempt property while the bankruptcy is ongoing. When you file for bankruptcy, a bankruptcy “estate” is created. The estate effectively becomes the owner of your nonexempt property as well as any nonexempt property in which you have an interest. Most (but not all) of your debts are dismissed in Chapter 7 bankruptcy.
You will need the bankruptcy court’s permission if you want to reaffirm (agree to continue to repay) any debts that are part of the bankruptcy filing (i.e. a mortgage or a car loan) (i.e. a mortgage or a car loan). However, with a few exceptions, the property you acquire after the bankruptcy was filed and the income you earn after that time is within your control and you may do what you want with it.
The court will appoint a “bankruptcy trustee” to handle your bankruptcy case. The trustee will first look at all the paperwork you filed to make sure everything is complete and in order. The trustee will then hunt for nonexempt property that can be auctioned to pay your creditors. In most Chapter 7 cases, the trustee does not find very much (if any) nonexempt property that can be sold. The trustee then strives to make sure your creditors are paid as much as possible of the debt you owe them.
The trustee will then convene a meeting of your creditors. You are present at that meeting, and you will be put under oath and asked about your property and other financial affairs.
References:
1http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics
2http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
3http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics