Credit Card
Can a debt jubilee solve the national debt crisis?
At the beginning of 2020, household debt in the U.S. was higher than it had been in years. Nearly 6% of all credit card balances were at least two months in arrears, while delinquencies were being reported for 14% and 16% of car loans and student loans, respectively. When COVID-19 shut down all non-essential businesses…
Read MoreWill A Bankruptcy Affect My Credit Score
Will A Bankruptcy Affect My Credit Score? A client recently asked me, “Will a bankruptcy affect my credit score, and what can I do about it?” Yes. A bankruptcy does affect your credit score, somewhat. Here’s why. How your credit score works Your credit score is based on how much money you owe. Are…
Read MoreIf you file for bankruptcy, what happens to your corporate card?
Your debts have spiraled out of control, and bankruptcy appears to be your best option for a fresh start. However, your employer requires you to use a company credit card to pay for rental cars, hotel stays, and other expenses associated with your role at the business. Now you have questions. Do you have to…
Read MoreCan your creditors sue you during the COVID-19 lockdown?
Last month, the New York unemployment rate went up to 14.5%, taking it to its highest level since the Great Depression. According to the New York State Department of Labor (DOL), it was the biggest monthly drop in employment numbers on record. Nationally, the April unemployment rate was 14.7% (compared to 4.1% in March), mostly…
Read MoreWill bankruptcy affect your security clearance?
There are many occupations that require you to have a security clearance. They include positions in the military and government, weapons manufacturing, software and aerospace engineering, and more. When you work in one of these industries or are planning to seek a job there, you may be worried that bankruptcy will jeopardize your career prospects.…
Read MoreWhat is a Statement of Intention?
Anyone who files for Chapter 7 bankruptcy in New York will have to include a form called a Statement of Intention, which is used to provide the following information to your creditors, trustee, and the court: Which debts are secured by collateral (secured) How you plan to address your secured debts Although the automatic stay…
Read MoreWhen should you file a proof of claim for a creditor?
When you file for bankruptcy in New York, the majority of your creditors will file a claim in order to receive any proceeds from the bankruptcy estate. Although not all of them may receive anything, filing their claim provides information about your debt and increases the likelihood that they will receive something if your trustee…
Read MoreWhat are the different types of bankruptcy claims?
When you file for bankruptcy in New York, your debts will become creditor claims. Under bankruptcy law, they are divided into two categories: secured vs. unsecured and, within the latter, priority vs. non-priority. These distinctions dictate which ones get paid first and which ones get paid at all. What are secured claims? Secured debts are…
Read MoreHousehold debt continued to rise in 2019
A third quarter report from the Federal Reserve Bank of New York’s Center for Microeconomic Data found that in the third quarter of last year, overall household debt jumped 0.7% to $13.95 trillion. Nominally speaking, this total exceeds the previous peak of $12.68 trillion, which was reported in the third quarter of 2008. The report…
Read MoreHoliday shopping and bankruptcy
Most of us have a tendency to overspend during the holiday season, even when we’re months behind on our credit card payments and other bills. Although you want your loved ones to have a memorable Christmas morning, excessive spending during the months leading up to bankruptcy can cause serious problems for your case. If you…
Read MoreRepossession vs. charge-off in bankruptcy
When you take out a mortgage or car loan, you agree to repay the amount over time. If financial challenges become so steep that you end up having to file for Chapter 7 bankruptcy, the lender will usually do one of two things: take back the asset or charge off the debt. How is repossession…
Read MoreWhat if your bank freezes your account after you file for bankruptcy?
When you file for Chapter 7 bankruptcy in New York, you can probably use an exemption to keep all the money in your checking or savings account. This is why it is so alarming when your bank or credit union freezes those funds and leaves you with little or nothing to live on until the…
Read MoreDisputing information on your credit report
The Consumer Financial Protection Bureau reported that in 2016, the top source of consumer complaints was inaccurate credit reporting. When you’re trying to rebuild after bankruptcy, a defective credit report can be a major obstacle. Your credit rating dictates whether you will be approved for a credit card, personal loan, or mortgage and, if so,…
Read MoreWhen should you delay your bankruptcy petition?
If you’re thinking about filing for bankruptcy, your debt situation has probably reached crisis level. Perhaps your creditors are calling you on a daily basis, and one or more of them is threatening to sue you. Shouldn’t you see a bankruptcy attorney immediately and receive the protection of the automatic stay? In most cases, the…
Read MoreCan you keep a credit card in a Chapter 7 bankruptcy?
If you’re thinking about filing for Chapter 7 bankruptcy, then you may be wondering if you can still keep a credit card. This concern is understandable. Credit cards appear to be essential if you want to rent a hotel room, a car and enjoy other benefits that are more difficult to acquire with cash or…
Read MoreStarting a new business after filing for Chapter 7
You may have filed for Chapter 7 because you lost your job or had your hours cut back at work and couldn’t find suitable replacement employment. Now you’re thinking about taking your financial future into your own hands by starting a new business. While there is technically nothing stopping you from becoming an entrepreneur after…
Read MoreMistakes to avoid when filing for bankruptcy
When you approach the bankruptcy process from an honest and informed perspective, you have an enviable opportunity to eliminate a crushing debt load and start over. Unfortunately, too many debtors are dishonest or uninformed, causing them to risk dismissal of their case and, in some cases, charges of bankruptcy fraud. Before you file, make sure…
Read MoreCan you include your Christmas shopping in bankruptcy?
The holiday season can be as stressful as it is magical. This reality can become even more difficult when you know that your debt load has become more than you can handle yet you still have holiday gifts to buy. Your son wants a new PlayStation and your teenage daughter insists that her social life…
Read MoreShould filing bankruptcy be your New Year’s resolution?
Did your holiday shopping leave your family thrilled but saddle you with even more debt? If so, you may be thinking about including bankruptcy in your plans for the New Year. Whether that’s a good idea or not depends on how much you spent during the holidays, on what items, and related conditions. The tax…
Read MoreAn overview of the Truth in Lending Act
The Truth in Lending Act, or TILA for short, was passed 50 years ago to ensure protection and transparency for consumers in their interactions with creditors and lenders. Today, it is part of the more encompassing Consumer Credit Protection Act, but its echoes can be felt in the measures taken to help consumers avoid a…
Read MoreHow to correct errors on your credit report
After you’ve been discharged from bankruptcy in New York, you have the chance to start over. An important part of rebuilding is monitoring your credit report for accuracy and reporting any discrepancies immediately. Black marks on your file can result in denial of credit, higher interest rates, and even lost job opportunities. Unfortunately, credit report…
Read MoreWhat is a reaffirmation agreement?
When you file for Chapter 7 bankruptcy in New York, the goal is to seek relief from all of your debts. There are times, however, when you may want to remain responsible for a particular obligation. This possibility happens when the debt is secured by a significant asset that the creditor could seize if you…
Read MoreApproaching lenders after bankruptcy
Even if they are being called daily by creditors and facing collection lawsuits, many New Yorkers shy away from declaring bankruptcy because they believe doing so will prevent them from ever getting credit again. This is untrue: once the crippling debt load is discharged, you can build your way to a stellar credit score. You…
Read MoreMistakes to avoid when filing Chapter 7 bankruptcy in New York
When you are filing for Chapter 7 bankruptcy, certain mistakes and oversights can cause your petition to be denied. To help you avoid situations that can prevent you from getting the fresh start you need, five of the most common mistakes are outlined below. Filing at the wrong time. If you have filed for bankruptcy…
Read MoreHow will Chapter 7 bankruptcy affect your sole proprietorship
When you start your own business, you’re excited about the future possibilities. Ideally, it will be a success that allows you to support your family and even your future generations. Unfortunately, not every small business meets with success. Debt such as commercial leases, supplier contracts, and business loans can exceed income until bankruptcy is the…
Read MoreLet this New Year be your fresh start
For many of us, creating and sticking to a budget is a top New Year’s resolution. Mastering the ability to live within your means is especially important if you are in the middle of a Chapter 7 bankruptcy or planning to file, because successful planning can help ensure greater financial success in the future. Here…
Read MoreChapter 7 bankruptcy and Christmas: what’s the solution?
For many of us, the holidays are when budgets go out the window. In 2016, the average American shopper spent $935.58 on Christmas presents, and this year the total will probably go up, thanks to higher-priced gifts and advertisements that make it difficult to resist overspending. For some people, the intention is to spend as…
Read MoreFive reasons why New Yorkers declare bankruptcy
Last year, less than 800,000 people filed for bankruptcy throughout the country. At first glance, that seems like a lot, but in reality the number of filings for 2016 was the lowest for any year since 2006. Although filings appear to be in the decline, thousands of people throughout New York continue to seek bankruptcy…
Read MoreWhat to expect at a 341 meeting
When you file for bankruptcy in New York, one of the conditions of a future discharge is that you attend a meeting of creditors known as the 341 hearing, named after a section of the Bankruptcy Code. Your trustee will attend and ask you a series of questions. Although creditors are allowed to attend, none…
Read MoreHow does bankruptcy affect your security clearance?
If you are active duty military, a government employee, or employed by a defense contractor, then you almost certainly have a secret or top secret security clearance. If financial difficulties overwhelm you and bankruptcy seems imminent, then how will that affect your security clearance? It’s a difficult question because there is no single answer. Security…
Read MoreCommon issues clients must overcome when filing bankruptcy
If you’ve decided that bankruptcy is the best solution to an overwhelming debt problem, you don’t want mistakes and missteps to prevent you from getting the relief you need. Below are some of the activities and transactions that may result in your petition being refused, as some debtors employ them to minimize the negative effects…
Read MoreFiling a joint vs. individual chapter 7 bankruptcy
If you are married and considering Chapter 7 bankruptcy as a debt crisis solution, then you and your spouse will have to discuss whether you want to file a joint petition, file your own separate cases, or have one of you file alone. There is no right answer that applies to all couples equally—it all…
Read MoreWhat does it mean if the court dismisses your bankruptcy without prejudice?
A New York bankruptcy case can be dismissed without prejudice just like any other court case. When you originally filed, you had to satisfy certain requirements to finish the case and receive a discharge. If you failed to complete all necessary steps, then the bankruptcy court might dismiss your case with or without prejudice. Dismissal…
Read MoreWhen debt collectors call after your discharge
When you file for bankruptcy in New York, all of your listed creditors are provided with a notice of your filing. They also receive notification of your discharge once you successfully complete all of your bankruptcy obligations. There are, however, occasions when debt collectors will attempt to collect a debt that was included in your…
Read MoreWhat debts cannot be discharged in a New York bankruptcy?
When you’re overwhelmed by debt and unable to pay it within a reasonable time from, bankruptcy may appear to be your only solution. In most instances, filing can give you the relief that you desperately need… depending on what debts you are struggling with. With Chapter 7, you may have to liquidate non-exempt assets to…
Read MoreLife after a New York bankruptcy
When people consider filing for bankruptcy in New York, one recurring question is, “Will I ever get credit again? Be able to buy a house? Get a car lease on favorable terms?†The universal assumption seems to be that after you file, you lose any chance of being able to benefit from the advantages that…
Read MoreHow to conduct yourself prior to filing for bankruptcy
A New York bankruptcy can give you the fresh start that you need-if you don’t conduct yourself improperly prior to filing. There are certain actions and omissions that can have an irreversible impact on the success of your bankruptcy and prevent you from being successfully discharged or even able to file in the first place.…
Read MoreMeeting with a New York bankruptcy attorney: What to expect
When you’ve scheduled a consultation with an attorney to discuss a New York bankruptcy, it’s normal to wonder what to expect. Although every bankruptcy attorney has their own approach, there are questions and discussion topics that appear in the majority of first meetings. There are also documents you should bring that will make the whole…
Read MoreCan you keep a credit card in a New York bankruptcy?
New Yorkers often wonder if they can keep a credit card after filing for bankruptcy, particularly if the card has a zero balance. On the surface, it seems like a counterintuitive wish. Consumer bankruptcies are intended to eliminate credit card bills and other debt so that they can have a fresh start. Yet they worry…
Read MoreThe Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) is a federal law that governs the actions of credit reporting agencies (CRAs) such as Experian, Equifax and TransUnion, and the individuals and businesses that supply the information used to compile your credit report. It also dictates the following: What the CRAs, creditors, and other authorized parties can (and…
Read MoreCredit card debt and bankruptcy in New York
The average credit card debt in New York state is approximately $6,390. For some, that can be managed. But if you are experiencing financial difficulties, it may be beyond your ability to cope with, especially if you have high-interest credit cards that make paying down the principal impossible. Credit card balances are unsecured debts, so…
Read MoreChapter 13 bankruptcy explained
Chapter 13 has often been referred to as a wage earner’s bankruptcy plan, because those who file must earn a regular income and be able to prove to the court that they can repay some or all of their debts. Unlike Chapter 7, which can eliminate credit card bills, unpaid medical accounts, outstanding utility balances,…
Read MoreHow can a serious diagnosis impact your financial situation?
There are many different implications for your life if you receive a serious medical diagnosis, particularly if this diagnosis is cancer. You may be feeling shock, confusion, grief, and an array of other emotions as you attempt to cope with this situation. Financially, even with solid health insurance, it can be overwhelming and confusing to…
Read MoreHow to handle financial problems after a job loss
One of the leading reasons that individuals consider filing bankruptcy and moving forward with filing for bankruptcy is job loss, according to research published on Investopedia. Whether your job loss situation is due to your own decision to leave the position or the company’s decision, suddenly losing your income can be catastrophic. This is particularly…
Read MoreIs my credit ruined for life if I file bankruptcy?
Once you have made the decision to file for bankruptcy and set up a meeting for New York bankruptcy attorney, it’s time to bust through some of the common myths associated with this practice of discharging your debts. One of the biggest misconceptions about bankruptcy is that it ruins your credit for the remainder of…
Read MoreWhat to do when debt consolidation does not work for you
You may have made the effort to go through debt consolidation or credit counselling in the hopes that it would repair your current financial situation. However, it can be even more frustrating when you emerge from debt consolidation without any significant progress forward. Many individuals considering filing for bankruptcy in New York are doing so…
Read MoreWill I ever be able to buy a house again after I file for bankruptcy?
One of the most common questions asked by individuals who are contemplating bankruptcy filing in New York has to do with how this will impact their future over the long run. While many people are familiar with the short-term consequences of filing for bankruptcy like difficulty obtaining credit and an impact on your credit score,…
Read MoreWhat you should know about your credit score after filing for bankruptcy
Depending on whether or not you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy in New York, you can expect this to impact your credit score. As time goes on after you have filed for bankruptcy and your bankruptcy has been approved, you may ultimately begin to see an improvement in your credit score.…
Read MoreWill bankruptcy destroy my credit in New York?
Making the decision to file for bankruptcy in New York is likely something you have arrived at over the course of carefully considering all of your options. You may have even attempted other methods such as credit counselling or consolidating all of your debts. While there is no clear answer to the question about how…
Read MoreEducational debt a major threat to financial future of students
A new analysis by The Motley Fool reveals that while mortgage and housing debt has decreased over the past few years, other debts is on the rise in American households. This category of “non-housing†includes credit cards, purchases of cars, and educational loans. Although more families in America seem to be working to get their…
Read MoreThe most common reasons for bankruptcy
According to recent research, medical expenses are the most common reason for filing bankruptcy, but it is certainly not the only cause for people to get in over their heads financially. Overwhelming medical expenses influence two-thirds of people who ultimately file bankruptcy, even when health insurance was in place. Major events like a sudden medical…
Read MoreTips for avoiding credit card fraud
When you are in the process of considering filing bankruptcy protection, you want to ensure you have reviewed all of your accounts for accuracy. Even once you have gone through the process of filing for bankruptcy and discharging your debts, you should still keep on top of your credit reports. One of the biggest reasons…
Read MoreDebt collection agency not allowed to collect as it did not follow proper procedures
Often, lenders bundle up a group of people’s debt and sell it to another company at a discount. This new company can collect on the debt, but is still held to certain legal standards about how they must notify borrowers and what records the must keep. Sometimes, a dispute arises regarding the transfer of debt…
Read MoreWhat happens to my credit card debts at bankruptcy?
Perhaps you’ve considered filing a Chapter 7 bankruptcy but you’ve hesitated because you weren’t quite sure what will happen. Can creditors come after you for repayment even after you file? Will all credit card debt automatically be dismissed? Those are troublesome questions, to be sure. A brief explanation of the Chapter 7 provisions can help…
Read MoreWhat happens if a creditor sues me after bankruptcy?
Can a creditor sue you if you fail to repay your credit card debt because you had the debt discharged under bankruptcy? Well, a creditor can always challenge the bankruptcy court’s actions to dismiss your debt, but that doesn’t necessarily mean that you will end up paying it. Such a situation is illustrated in the…
Read MoreRent-stabilized leases cannot be taken away in bankruptcy
When someone files bankruptcy, a bankruptcy estate is created for that person. Inside that estate are assets and liabilities. If someone has a savings account, for example, then that is an asset in the estate. If someone has credit card, then that is part of his or her bankruptcy estate. A bankruptcy trustee may, in…
Read MoreHow do credit card balances get out of hand so easily?
It’s easy to see how unrestrained shopping sprees can plunge a family into credit card debt that seems never to go away, but there is another reason for spiraling credit card balances – a reason that is rarely noticed while it does tremendous damage to an account’s balance. That reason is compounding interest. Credit card…
Read MoreMultiple credit card holders and bankruptcy
A credit card account holder can have other card holders on his or her account. But what happens if one of the users decides to file for a Chapter 13 bankruptcy? Does this affect the other users, and their credit? The primary account holder is responsible for any debt incurred on the account, as reported…
Read MoreBankruptcy Basics
Chapter 7 & Chapter 13 Bankruptcy Filing for bankruptcy can help consumers regain financial control over their lives, helping them protect their family and vital assets such as a primary residence and automobiles. Bad things can happen to good people, and it is common for problems to arise in life that create financial stress from…
Read MoreBANKRUPTCY DISCOUNT: CUT YOUR DEBT FOR 10% LESS
We are offering 10% off legal fees for customers starting a bankruptcy between December 15, 2014 and January 31, 2015. A personal bankruptcy can eliminate many of your debts allowing you to get a fresh financial slate. Call 718-329-9500 to learn more and set up a free in-person consultation with attorney Jayson Lutzky who has…
Read MoreWill my credit be repaired after bankruptcy?
You may have heard or seen advertisements for companies that offer credit repair solutions. The fact is that there is no such thing as “credit repair.†Many of these agencies are scams. Other agencies will simply write letters to the three main credit agencies—Experian, Equifax and TransUnion—attempting to correct any errors on your credit report…
Read MoreInfographic: How to Save Money
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Read MoreColleges & universities that issue debit cards should do more to protect students from hidden fees
Some colleges and universities in the U.S. partner with major banks to issue students debit cards to distribute financial aid. A New York Times editorial argues that these schools should do everything they can when working with banks to protect students from “aggressive and misleading marketing.” For example, one bank that has deals with 520…
Read MoreBankruptcy judge has constitutional power to issue final judgments for turnover
In this time of economic downturn, New Yorkers have accumulated a significant amount of debt. This debt may come from student loans, credit cards, loans and mortgages. Chapter 7 bankruptcy offers an alternative to rectify one’s credit history. It gives a debtor the ability to erase nearly all debt, without paying back the money owed.…
Read MoreVideo: Bronx Attorney Answers, “Is it worth filing bankruptcy if I only have credit debt?”
Paying down your debt quickly, Part II
It is common to receive credit card offers nearly every single day in the mail. If you already have a credit card, then it is wise to ignore them. It is especially wise to ignore these offers if you are already in debt as the offer will allow you to charge more and more items…
Read MorePaying down your debt quickly, Part I
Let’s suppose you have a credit card and you have been making large purchases and living beyond your means. You don’t want to stay in debt, but you’re only paying the minimum required payments. According to AARP, credit card minimum payments are usually only 2% of the balance. By consistently paying minimum payments, you will…
Read MoreWhy do many people file for bankruptcy?
Many people think that the leading causes for filing for bankruptcies are credit card debt, student loan debt, and mortgage debt. However, this is not true today as growing medical bills are the main cause, as reported by Today Money in a June 25, 2013 article. Today, medical care is not cheap, and it is…
Read MoreFDCPA breached by inclusion of $140 filing fee in law firm’s letter misstating debt balance
Hallmark v. Cohen & Slamowitz, 11-CV-842 (Sept. 14) In New York, 2013, there is a high probability many residents that suffer from loan, mortgage and credit card debt. In some cases, bankruptcy is an option. There are different types of bankruptcy, which a legal professional may assist you with making the right decision. Lawyers may…
Read MoreInfographic: Credit Cards & Bankruptcy
Does bankruptcy prevent one for acquiring a loan?
Bankruptcy allows one to eliminate most of his or her debt, and it also allows one to obtain a “clean slate†as reported by Wicked Local Norwood in a May 19, 2013 article. When people file for bankruptcy, most people are worried about obtaining a loan  after the bankruptcy is filed, which will be used…
Read MoreCredit card debts
Today, many people have credit cards that they use on a daily basis. While some people might be conservative spenders, some people are not, and they spend lavishly until they max out their credit cards. As a result, the lavish spenders do not have enough money to repay their debt, and credit card companies come…
Read MoreCredit card receipts provide too much information
Today more and more people are using credit cards when they purchase items, regardless of whether it is a small or a large purchase. Credit cards make things  easier and quicker as one does not have to carry around cash and run the risk of it being lost or stolen. As a result, the Fair…
Read MoreBenefits of filing a Chapter 7 bankruptcy
Going through a bankruptcy can be a stressful process to a person who is unaware of procedure, but it does not have to be. When deciding whether bankruptcy is right for your financial needs it is important to look into the risks and benefits of filing. Chapter 7 personal bankruptcies are more common than the…
Read MoreVideo: Staying Out Of Debt
One state’s biggest identity theft scam in history
South Carolina has a big problem on their hands. Millions of social security numbers, credit card numbers, and debit card numbers were hacked and stolen in South Carolina, as reported by the WBTV in an online October 28, 2012 news article. According to the news article roughly 77% of South Carolina residents had their information…
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