If you live in the Bronx, Queens, Brooklyn, Manhattan, or anywhere in New York City or the State of New York, you can fight the garnishment of your wages or remove any hold on your account. You can achieve this if your creditors did not follow proper procedures to get your wages garnished or to put a hold on your account.
Before your creditors in New York City can obtain any judgment against you in a court of law, the creditors must give you notice and an opportunity to be heard. One way of achieving this is through the service of process. This is where you get a complaint or a summons and you are asked to respond to it or appear in court to defend yourself. Even this service of process must be done properly.
Let us look at a case where a debt collection firm sent a summons and complaint to a debtor’s last known address. When there was no response from the debtor, the collection firm went ahead and got a default judgment from a court Clerk in their favor. The New York City collection firm got this default judgment because the debtor failed to appear to defend himself or send any communication explaining his position.
Later, a hold was put on the debtor’s bank account and he challenged the default judgment in court claiming that he did not receive any summons or complaint. The judge ruled in his favor and vacated the default judgment. This is because the collection agency posted the summons and complaint at his last known address.
This is the good news for residents of the Bronx, Manhattan, Queens, Brooklyn and all of New York City. Under New York law, the service of process by fixing the summons and complaint to the door of a defendant of any case is not effective service. In this instance, the New York collection agency could only have achieved effective service if they had sent the summons and complaint to the debtor’s dwelling place, usual place of abode or actual place of business.
Under this New York law, even if the debtor had received or seen the summons and complaints after the debt collection firm had posted it to the door of his last known residence, service would still have been ineffective.
Don’t sit back and give up because your creditors have your salary garnished or have got the court to put a hold on your account. Talk to your Manhattan, Bronx, Queens, Brooklyn or other New York City bankruptcy attorney today to know your options.
Filing for bankruptcy is not an indication that you are lazy, greedy or morally not upright. This is because a lot of bankruptcies are brought about by medical conditions, divorces and unemployment. Filing for bankruptcy involves a very special decision. Whether you decide to file or not to file for bankruptcy, these are some of the things that you should know.
You should list all the debts that you owe and also remember to list the name of every person that you owe. This list includes people that you believe you do not owe but who think you owe them. This is because the disputed debt may turn out to be an actual debt in fact. If you fail to list a debt, that debt may not be discharged.
You should also never hide properties. You must always give a full disclosure of all your property and financial assets. Trying to hide your property and other assets might get you into trouble. This is because there are a lot of ways in which creditors can find out what you own and what you do not own. Your bank statements, credit card statements, tax returns, insurance policies and even data from your computer can expose you.
Remember that all bankruptcy filings are done under the penalty of perjury. This means that you swear to tell the whole truth concerning your bankruptcy and you should therefore be punished if you fail to tell the truth or the whole truth.
Your best approach in filing for bankruptcy is to truthfully declare all of your assets. Remember, the first and best step to filing for bankruptcy is to see a bankruptcy attorney to explain all your options under the law to you.
Not all debts can be discharged in a bankruptcy proceeding. If you owe taxes, those taxes cannot be discharged in a bankruptcy proceeding. Similarly, if the IRS has a lien on your property because of taxes that you owe to the IRS, those liens cannot be discharged via bankruptcy. Another type of debt that is not discharged through bankruptcy is student loans and other government loans.
Filing for bankruptcy will not discharge you from fulfilling your obligations under a court declared child support or child maintenance order or alimony payments. If there is a court order against you to pay certain individuals or businesses some amount owed, those amounts will not be discharged through bankruptcy. That is one reason why you should speak to your bankruptcy attorney before your debtors file their claims against you in court. Once those claims are filed before you file for bankruptcy, you cannot discharge any amount that the court will order you to pay to your creditors through a bankruptcy proceeding.
Debts incurred through a court order to pay damages for willful and malicious injury and judgments in wrongful death or personal injury cases arising from your intoxication will not be discharged via bankruptcy. Debts incurred through fraud cannot also be discharged in a bankruptcy proceeding. You cannot clear these non-dischargeable debts with your credit card and later file for bankruptcy. The bankruptcy court will find out and you may end up in trouble. Just speak to your bankruptcy attorney as soon as you are behind on your payments and you feel you cannot keep up with the payments. We recommend using a professional and experienced NYC bankruptcy attorney at the first sign of debt trouble.
Getting organized – it can seem like a Herculean task during this tumultuous time in your life. But by taking the time to organize your documents ahead of time, you’ll not only be better prepared when meeting with your Bronx bankruptcy lawyer, you’ll also make the entire procedure flow much more smoothly.
If you’ve completed your required pre-filing credit counseling and are ready to proceed with filing, these are some of the basic documents you’ll need. (Make sure to consult with your Bronx bankruptcy lawyer about your particular situation and any other documents you’ll need.):
Tax Returns and W-2 Statement of Income – You’ll be required to furnish your tax returns for at least the past two years.
Real Estate Documents – If you own a home or other real property, you’ll need to furnish your Bronx bankruptcy lawyer with copies of the required documents to submit to the bankruptcy court. These documents include the deed, the mortgage note, the latest appraisal, and your latest property tax bill. This is required not only for your primary residence, but for ALL property that you own or hold title on.
Pay Stubs – You’ll need to furnish pay stubs for the past 60 days, or if you are unemployed, then an affidavit stating such. If you’re self-employed, please consult with your Bronx bankruptcy lawyer about requirements to verify your income.
Statement of monthly net income, and any anticipated increases such as an upcoming negotiated pay raise (also, any anticipated increase in expenses)
Titles to Vehicles – You will need to furnish the court with copies of the titles to all vehicles you own.
Certificate of Completed Credit Counseling – Once you’ve completed the mandatory pre-filing credit counseling, make sure to provide a copy of the Certificate of Completion to your Bronx bankruptcy lawyer.
These are just some of the documents that you will be asked to produce during your bankruptcy procedure. By taking the time to organize your documents, you’ll have one less thing to worry about as you wind your way through the process towards regaining your financial footing.
New rules under the federal bankruptcy code require that debtors undergo a financial education course before their bankruptcy is finalized. Your Brooklyn bankruptcy lawyer can provide you with a list of approved agencies that conduct this service.
Before you enroll in the course, the agency will require you to provide proof of identification, as well as your bankruptcy case number (which your Brooklyn bankruptcy lawyer can give to you.) This assures the court that the real petitioner is indeed taking the class, and not sending someone else in his place.
The intent of a financial education course is to provide you with the skills you need to wisely manage your money in the future. It will cover topics such as short-term and long-term financial planning, personal budgeting, and disciplined use of credit, as well as consumer skills such as comparison shopping and determining wants vs. needs. Your Brooklyn bankruptcy lawyer can advise you further about additional topics that may be covered.
Requirements by the court dictate that the course must be at least two hours, and thanks to today’s technology, courses are even offered via the Internet by some agencies. Once you complete the course, you’ll be issued a Certificate of Completion, and you should give a copy of this to your Brooklyn bankruptcy lawyer to furnish to the court.
The bankruptcy court understands that your means are limited, and thus holds the agency providing the educational sessions to charging only a fair and reasonable fee for the class. More importantly, you are further protected in that the agency cannot withhold your Certificate of Completion if you are finding it difficult to finish paying for the course. If this is the case for you, your Brooklyn bankruptcy lawyer can advise you about resources available to help you to meet this final expense.
Hang in there – once you’ve reached this stage of the bankruptcy process, you’re in the home stretch. Just a few hours of class work will sweep you over the threshold into your new financial future – one filled with hope at the prospect of a fresh start in life.
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.
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.
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.
