Long Island Bankruptcy Attorneys

Bankruptcy FAQ

If I file bankruptcy will creditors stop harassing me?

Creditors are required by law to cease all actions against a debtor once bankruptcy has been filed.  Creditors will not be able to initiate or continue lawsuits or even telephone calls to the debtor.  At Jacoby & Jacoby, we can help you with creditor harassment if creditors do not cease contacting you after you’ve filed bankruptcy.

Why do most Long Island residents file bankruptcy?

Common reasons for filing bankruptcy include unemployment, excessive medical expenses, overextended credit, marital problems, and large unexpected expenses.  More than half of all bankruptcies in the U.S. are caused by medical bills. 

What is chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a liquidation proceeding where a debtor turns over all property to a bankruptcy trustee who sells it and then pays off creditors.  This type of bankruptcy is typically used when people have accumulated too much credit card debt and is a quick fix to exceedingly high debt.  There are long-term consequences, mainly the reduction of your credit score.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy helps debtors pay off their debts over a longer period of time, usually between 3-5 years.  People with predictable income will be evaluated to determine if they qualify for this type of bankruptcy and unlike chapter 7 bankruptcy, they will not lose property, but will pay off debtors over time. 

Who will know that I filed bankruptcy?

Bankruptcy filings are considered to be public records, but the only people who will really be aware of your status are Credit Bureaus, who will record your bankruptcy on your credit record.

I’ve already filed bankruptcy once.  Am I eligible to file it again?

Individuals who have not filed Chapter 7 bankruptcy more than 8 years after their previous filing can file Chapter 7 bankruptcy again.  If you have previously filed Chapter 13 bankruptcy, you can file it again if at least two years have passed since you received a Chapter 13 discharge. 

Contact a Long Island Bankruptcy Lawyer at Jacoby & Jacoby today with any questions you may have regarding bankruptcy!