Information on Bankruptcy
Filing for Bankruptcy in Long Island
Considering bankruptcy? If you live in Long Island and are facing overwhelming debt, you may be able to put an automatic stay on debt collection efforts by filing for bankruptcy. Successfully completed, bankruptcy will also result in the
discharge of all eligible debt. We never know what life will throw at us. When you consider that a serious illness, divorce, loss of employment or financial mistakes may leave you up to your neck in debt, it is important to recognize the potential benefit of filing for bankruptcy. However, this is a major decision that should not be made lightly. This is why we recommend consulting with an attorney and getting all the information about the advantages and disadvantages of bankruptcy,
Chapter 7 versus Chapter 13,
bankruptcy FAQs, and how filing for bankruptcy in Long Island may affect you now and in the future.
Areas of Practice
At Jacoby & Jacoby, we have more than five decades of experience in Long Island bankruptcy and debt management. We are completely committed to our clients and are here to offer you the legal counsel, information and guidance you need in this important matter in order to take full advantage of the benefits that
bankruptcy law has to offer you as a debtor. Please review the information provided below and contact our firm for prompt answers to any additional questions you may have.
Alternatives to Bankruptcy
While bankruptcy can be a beneficial move for some debtors, it is not always the right option for everyone. There are number of other options that may fit the financial needs of some individuals better.
Not all assets of an individual filing for bankruptcy will be touched. There are various items that are considered exempt when it comes to filing that will not be touched during the process.
Bankruptcy law is an important and ever changing area of law that is greatly significant to those who have been overwhelmed by the increase in monetary obligations they have. If you are considering filing, it is important to be educated about bankruptcy laws or to enlist the help of a legal professional.
If you are facing more debt than you can handle but still possess a reliable source on income, Chapter 13 may be a great choice for you. It protects you against the liquidation of your assets while still helping you get a handle on financial debt.
For those that are over the head with growing debt and are unable to see a way out, Chapter 7 liquidates non-exempt assets to cover expenses owed to creditors and can help debtors achieve a fresh start. It can also be of great benefit in cases of foreclosure.
Under the Fair Debt Collection Practices Act, creditors are held to certain standards to keep them from using abusive tactics in order to collect owed expenses from debtors. When creditors take it too far, there are options available to protect debtors against threats and unrelenting phone calls.
Debt Consolidation vs. Settlement
Through debt settlement, negotiations takes place with creditors to help reduce the financial obligations of the debtor. Through consolidation, debts are put together and payment is only made to the new loan allowing further time to pay it off.
Through the discharging of a debt, the individual who owes on the specific debt is no longer obligated to pay on it and is thereby free of the financial burden. Collectors are no longer able to take action against the debtor in seeking payment.
For a married couple that is facing financial troubles, filing jointly brings the two bankruptcy cases of the couple together and allows the couple to only pay one filing fee.
When you are up against financial hard times, the payment of a mortgage may be unattainable. If you are unable to make the monthly payments, your house may be foreclosed upon and taken away from you.
Freezes on Your Bank Accounts
One of the actions a creditor can take against debtors is freezing their bank account to prevent them from gaining access to the funds in your account. This leaves debtors in a tough position and they are unable to pay many of their expenses.
One of the popular alternatives to bankruptcy is loan modification. Adjustments are made to the terms of service on a loan, providing something that is more attainable for the individual paying on it.
When you are unable to pay for an item that you purchased through a loan, the lender can not only pursue payment on the loan but might resort to repossession. Repossession involves taking back the actual item that was bought, and usually refers to cars or property.
Tax Debt & Bankruptcy
Taxes are affected by bankruptcy in different way than other owed expenses. There are a number of variables that will determine how taxes will be affected by filing for bankruptcy, and a legal professional can help you figure out which variables apply to your situation.
Top Bankruptcy Myths
When it comes to bankruptcy, there are a number of common myths that people believe. Having inaccurate views on the bankruptcy process may prevent a debtor from seeking it when it may be the most profitable option.
Why involve a bankruptcy lawyer?
As an individual, you are not required to hire a lawyer to help with your Long Island bankruptcy. However, this is a legal process and may be exceedingly complex. Improperly filing for bankruptcy or misrepresenting information may result in you losing the opportunity to file again for a certain period of time. A Long Island bankruptcy lawyer can protect your financial interests and properly represent your case throughout every step of the process, working to help you secure the release of your debt and keep as many assets and property as possible.