If you are one of those burdened with debts and seeking help from a debt settlement agency, then you have to be careful because there is a chance that you may end up worse off than you were. The settlement agencies usually charge between 15% to 20% of a consumer’s credit card balance as fees. It has been estimated that consumers rarely get out of debt settlement programs with their debts cleared. In most situations, consumers get out of these debt settlement programs worse off with severely damaged credits, continuous threats from collection agencies and lawsuits from their creditors.

The first thing the settlement agencies tell you is to stop making payments to your creditors and rather make the payments into a special account that they will set up for you. They do their best to assure you that you will have nothing to worry about once you start the program. They tell you once you manage to reach a certain amount, they will strike a deal with your creditors to cut your debt by half and pay the debt off. This debt settlement program usually has to last between 2 and 3 years.

All this information that the debt settlement companies provide to consumers can be best described as fraudulent if not deceptive. This is because after you start the program, you will soon realize that your participation in the program does not necessarily stop the calls and threats from your creditors and collection agencies. When you start getting calls from your creditors and debt collection agencies, you will immediately call your debt settlement agency thinking that they have you covered. The usual response from them will either be that you do not yet have enough money in your account to cover the debt or that they have no control over the actions of your creditors and collection agencies. What will shock you even further will be the realization that you only have about half of the money you have been paying so far in your special account. For example if you have managed to pay about $3000, you will find out you only have about $1500 in your account. When you ask why, your debt settlement agency will tell you they used the about half of your money to cover administrative fees. Meanwhile, the calls and threats of lawsuits from your creditors and collection agencies will be forcing you into bankruptcy.

Before you sign on to any debt settlement program, please contact your qualified Bronx, Brooklyn, Queens, Manhattan and other New York City bankruptcy attorney for counsel. Do not make that choice without a bankruptcy lawyer and drown yourself deeper in debt.

Here is news for you. Federal law prohibits your employer from discriminating against you or from terminating your employment solely because you filed for bankruptcy. The reality now is that a great number of people in New York City and possibly someone near you in the Bronx, Queens, Brooklyn and Manhattan have filed or are filing for bankruptcy. Businesses cannot help it but have a good percentage of that number in their companies. It’s a reality that everyone is facing and so companies would rather not do anything that would appear to be discriminating against their employees.

Besides, you’ve got the law on your side. Your employers would rather have you working than you suing them for huge sums for discrimination.

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.

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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.

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The first of these requirements is that the debtor wishing to file must undergo mandatory credit counseling six months prior to filing the petition. The session must be conducted by an approved non-profit counseling agency that oversees budget and credit counseling programs for consumers. Your Westchester bankruptcy lawyer can provide you with a list of approved credit counseling agencies.

During this session, the counselor will discuss the many alternatives to bankruptcy, and will also help design a personalized budget analysis for you. Once you complete the credit counseling session, notify your bankruptcy lawyer in Westchester, who can then start a file for you and commence the six-month countdown to filing.

While you might be ntimidated about having to discuss personal information with a stranger, these approved credit counselors are professionals who aren’t there to judge you, just to help you. Westchester bankruptcy lawyers have found that most agencies offer either private sessions or group sessions, which gives you some options when it comes to both pricing and privacy. And speaking of privacy, some credit counseling agencies even offer sessions via the internet, so you can “attend” the session online in the comfort of your own home.

If you’re thinking of filing bankruptcy, your Westchester bankruptcy lawyer will consult with you about the steps you must take and the timelines you must follow.

Remember, every journey starts with a single step. The road to successfully completing the bankruptcy process begins with credit counseling through an approved agency – the required first step that will start you on the path towards a new financial future and a brighter tomorrow.

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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.

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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.

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• You have little (if any) money left each month after meeting your monthly expenses
• You struggle to pay the minimum balance on credit cards each month, and often miss payments
• You pay for basic necessities — like gas and groceries – with credit cards, because you have no disposable income to do otherwise
• You’ve maxed out the limits on all or most of your cards
• You’ve borrowed from one credit card to make a payment on another
• You are being hounded by debt collection calls
• Your personal life and relationships are suffering because of your financial situation
• You are overwhelmed with anxiousness, and wonder how you’ll make it through each month
• You’ve contemplated filing for bankruptcy, and have already thought about finding a bankruptcy lawyer in Manhattan to work with