Lutzky & Labayen, P.C. | Attorneys At Law • NYC Bankruptcy

Bankruptcy Lawyers in NYC Support Cramdown Legislation for Americans

September 27th, 2009

A “cramdown” is jargon used by lenders and bankruptcy lawyers in NYC. It effectively imposes a court-ordered reduction of the balance of a loan for an outstanding asset – oftentimes a car, boat or motor home. And while this type of forced loan modification exists for non-real assets, it historically has excluded real property.

During Spring 2009, legislators fought to pass a bill under the umbrella of the Helping Families Save Their Homes Act that would make real property eligible for cramdown modifications – a bold move whose intent was to help stop the glut of foreclosures burdening homeowners throughout America.

Bankruptcy lawyers in NYC followed that cramdown legislation for homes with keen interest, as the proposed legislation wound its way through Congress. Ultimately, it failed in the Senate in a 45-51 vote in April 2009. At the time, most pundits and observers felt that the defeat in the Senate would be the final nail in the coffin for this much-sought-after relief championed by bankruptcy lawyers in NYC and beyond.

Now, however, cramdowns for real property may be on the comeback trail. Initially dismissive of potential attempts to revive the bill in May, House Financial Services Committee Chairman Barney Frank (D-Mass) told reporters recently that he intends to try to revive the bill, possibly as soon as October.

This is a move hailed by both homeowners and bankruptcy lawyers throughout NYC, as it gives new hope to those at the heart of America’s financial crisis. While big-name banks continue to receive bailouts at taxpayer expense, they have been wont to share the government’s largesse by sincerely working with those homeowners who, month after month, struggle to meet their mortgage obligations.

Supporters of cramdown legislation cite the continued flood of foreclosures on the real estate market, and feel that cramdowns would help stabilize the real estate industry by finding the financial floor in housing prices. Bankruptcy lawyers in NYC also support the measure, because court-ordered modifications could help millions of borrowers who are burdened with mortgage debt be able to keep their homes.

Stay tuned, as this financial Capitol Hill smackdown – “Lenders vs. Homeowners” unfolds. Bankruptcy lawyers in NYC and across the nation now wait to see if special interests will yet again prevail, or if this time struggling homeowners can actually get some much-needed relief.


–

Filed under: Bankruptcy Cramdown,Bankruptcy Lawyer,Filing Bankruptcy in NYC — Tags: , , , — Lutzky & Labayen • NYC Bankruptcy Lawyers

Consider This Before You Decide to File Bankruptcy in NYC

September 19th, 2009

While bankruptcy is often a last resort for those who struggle to meet their monthly obligations, deciding to file bankruptcy in NYC can also be the best course of action for those who’ve come to the end of their financial rope.

 

Whether you’re struggling because of a job loss, a reduction in work hours, unexpected medical bills, or a lifestyle change such as a divorce, bankruptcy offers you the opportunity to legally pursue the chance for a fresh start.

 

But it’s not a process to be entered into lightly. Before you file bankruptcy in NYC, it’s important to consult with an experienced attorney who is an expert in the field. Your attorney will review your personal situation, and assess your financial picture to see where you’re eligible to file bankruptcy in NYC, and if it’s the best course of action for you.

 

What are some things to consider before you file? First you need to decide whether you have the means to fulfill your obligations. It can be hard to discern this alone, as you are so close to your own situation that it’s difficult to look at it with an unbiased eye. That’s why it’s always a good idea to consult with an expert attorney before you opt to file bankruptcy in NYC.

 

In order to make an accurate assessment, you’ll need to gather all of your financial documents, including outstanding loans, monthly bills and obligations, as well as paystubs and other documents that detail your monthly income. As you discuss your options to file bankruptcy in NYC with your attorney, you’ll get a much better idea of where you stand financially, and if bankruptcy is the right course of action for you. And many attorneys offer potential clients a complimentary consultation to discuss the law as it pertains to your unique situation.

 

As with any big decision in life, the decision to file bankruptcy in NYC should not be made lightly. After exploring options such as credit counseling, debt consolidation, and selling off assets, bankruptcy may be your only alternative. Only by researching your options and consulting with a professional will you be able to make an informed decision on whether you need to file bankruptcy in NYC, or if there are indeed other, less drastic alternatives.

 

 –

Filed under: Bankruptcy Lawyer,Filing Bankruptcy in NYC — Tags: , , — Lutzky & Labayen • NYC Bankruptcy Lawyers

Bankruptcy Attorneys in NYC Reveal the Truth about ‘Sticky Debts’

September 10th, 2009

It’s one of the most common misconceptions that bankruptcy attorneys in NYC have to deal with: the erroneous belief that filing for bankruptcy will make all debts disappear.

 

While bankruptcy can discharge (eliminate) a substantial amount of debt, there are certain types of debt that are permanently exempt from being discharged. There are also several different types of bankruptcy filings, so whether or not a debt can be discharged in your situation is best left to discuss with one of the many expert bankruptcy attorneys in NYC.

 

The federal Bankruptcy Code lists 21 different types of debts that are subject to being ineligible for discharge. Again, the type of bankruptcy you file will dictate whether a debt can be discharged, but as a general rule, bankruptcy attorneys in NYC advise potential clients that the following types of debts will not qualify for discharge under most personal bankruptcy cases:

 

Alimony and Child Support:  The courts deem family obligations to be a matter of top priority, and strive to protect and maintain the interests of dependents and/or the ex-spouse. Bankruptcy attorneys in NYC have seen far too many cases where one spouse has sought bankruptcy protection as a means to avoid paying alimony, only to be told that alimony and child support are ineligible for discharge.

 

Taxes and Liens: You probably knew this one was coming. While the government wants to give struggling consumers the chance at a fresh start, Uncle Sam made sure to position himself near the top of the list for repayment. As such, most taxes and liens are exempt from discharge, both under Chapter 7 and Chapter 13 filings.

 

Student Loans:  As much as bankruptcy attorneys in NYC would like to help struggling students, again Uncle Sam is not quite so forgiving. While it used to be possible to wipe out student loans under the protection of bankruptcy, the increased volume of loans, as well as the skyrocketing cost of an education that drove up loan amounts caused the government to exclude student loans from discharge.

 

If you’re wondering which of your debts might qualify for discharge, it’s important to consult with one of the many reputable bankruptcy attorneys in NYC before proceeding, so you don’t make a financial misstep that won’t really help you in the long run.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Filed under: Bankruptcy Lawyer,New York Bankruptcy Laws — Tags: , , — Lutzky & Labayen • NYC Bankruptcy Lawyers