When you file for Chapter 7 in New York, your trustee is tasked with administering all of the property in your bankruptcy estate. Anything of value that is not covered by an exemption is typically seized and sold so the proceeds can be paid out to your creditors. Sometimes, however, the trustee abandons a piece…

Read More
2019 and 2020 wooden blocks

Last September, the Consumer Financial Protection Bureau released the latest quarterly consumer credit trends report. This document, whose primary purpose is to track how the frequency and types of bankruptcy filings have varied since 2001, also examines issues like: BAPCA effect on the frequency of Chapter 7 filings Discharge rates for Chapter 7 bankruptcies vs.…

Read More
capital building

Veterans of the U. S. military sometimes struggle financially after they return from active duty.    Physical and/or emotional injuries (according to the Bureau of Labor Statistics, in 2018 an estimated 41% of Gulf War-era veterans had a disability related to their service) or a personal crisis like divorce can make it impossible for them to…

Read More
car and figure

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 More
claim denied text

One of the many reasons why people hesitate to file for bankruptcy is that they worry about their life being impacted. While it’s true that you may encounter difficulties with renting an apartment, getting a car loan at a decent interest rate, and other undertakings that require a decent credit score, there are laws that…

Read More
calculator pen spreadsheet

Most bankruptcies in New York go smoothly. If your trustee or one of your creditors has questions or concerns, then they are generally raised and resolved during the meeting of creditors. In some rare cases, a party seeking additional information will file a motion for a Rule 2004 examination. The Rule 2004 examination explained Debtors…

Read More
United States Bankruptcy Court sign on wall

You’ve heard about how bad faith on the part of a debtor can impact their bankruptcy filing. When they are motivated by anything other than unmanageable debt and the desire to start over, the court can dismiss their case. However, there are also cases where creditors can act in bad faith, particularly when they force…

Read More
soldier and family

Anyone can run into financial difficulties, and members of the U.S. armed forces are no exception. However, because they are tasked with the monumental responsibility of defending the nation, laws are in place to protect them during civil matters like lawsuits, foreclosure, and even bankruptcy.  The Servicemembers Civil Relief Act (SCRA) is a federal law that evolved from…

Read More
newspaper notices

Many New York residents who are contemplating bankruptcy worry that their friends, family, and employer will find out, causing them to lose respect and even their job. The bad news is that your bankruptcy filing is a public record, meaning that anyone can look it up—provided they know about it in the first place. In…

Read More
bankruptcy court hearing 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 More
houses

If you are thinking about filing for bankruptcy, then you may be wondering if you will ever be able to buy a home before the filing disappears from your credit report (10 years for a Chapter 7, seven years after a Chapter 13). The answer is a definite yes, but you should generally wait a…

Read More
warning sign

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 More
accident with airbag deployment

The Japanese company behind one of the worst automobile safety scandals has filed for bankruptcy. Airbags have been instrumental in minimizing the injuries of automobile drivers and passengers, but once the danger presented by Takata airbags became known, the National Highway Traffic Safety Administration (NHTSA), the federal agency responsible for automotive safety in the United…

Read More
bankruptcy law book

Chapter 9 bankruptcy is specifically structured to address the needs of financially distressed municipalities, which can include a broad range of government entities such as: Towns Cities Counties Taxing districts School districts Chapter 9 allows these entities to reorganize their debts, extend repayment timelines, reduce the principal / interest, or obtain refinancing. In order to…

Read More
bankruptcy law

Hounded by creditors and low on financial resources, Puerto Rico recently filed a Title III petition in federal court. This is apparently the first time that an American state or territory has sought this type of relief from a crushing debt load (in this instance, $74 billion to creditors and over $40 billion in pension…

Read More
bankruptcy consideration

When disability benefit recipients investigate bankruptcy as a debt solution problem, they are naturally worried about how a filing will affect their income. How much of an impact bankruptcy has on your disability payments will depend on which chapter you file and how the payments are structured. Social Security Disability Insurance (SSDI): Bankruptcy laws generally…

Read More
credit card debt

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 More
student loans - bankruptcy

Student loans have always been one of the most difficult, if not impossible, debts to discharge in a bankruptcy. A 2005 change to the U.S. Bankruptcy code even classified private student loans as “non-dischargeable,” placing them on a level with child support and tax liabilities. There is a remote chance that you can discharge your…

Read More
court gavel

Puerto Rico is dealing with large amounts of public debt. The island has racked up debt over many years and the Supreme Court recently heard a case dealing with the issue of the bankruptcy and debt according to a March 22, 2016 New York Times article. As a territory, Puerto Rico cannot file for Chapter…

Read More
eraser for debt

For the most part, filing for bankruptcy will discharge the vast majority of your debts. There are some categories, though, that cannot be eliminated in bankruptcy, regardless of the type of bankruptcy you opt to file. This list includes: Loans you received by purposely providing false information to the creditor on the loan who relied…

Read More
homeowner foreclosure

The Home Affordable Modification Program was started by the federal government to throw a lifeline to homeowners who were at risk of foreclosure. First presented to borrowers in 2009, it was meant to allow homeowners the opportunity to ask for a loan modification. According to a recent report, however, it looks like those who asked…

Read More
under water house bankruptcy

In 1992, the Supreme Court determined that homeowners whose first mortgage was underwater could not have their bank’s lien cancelled. This especially applied to people filing Chapter 7 bankruptcy. That ruling said that if someone had a mortgage on their home and the home was worth less than this mortgage, then the bank still owned…

Read More
bankruptcy is debt elimination

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 More
bankruptcy in city

After intense negotiations and a court hearing, Detroit has been cleared to exit bankruptcy. This municipal bankruptcy will eliminate $7 billion of debt. Also, a plan has been created for the city to invest $1.7 billion in its own city services, such as buying equipment for its fire department and fixing up buildings according to…

Read More
discharge debt bankruptcy

In a consumer, personal Chapter 7 bankruptcy, an individual (or two individuals, if filing jointly) can erase most of their debts. We say, “Chapter 7” because it is one of several “chapters” that the Bankruptcy Code governs. Each chapter is different. For example, Chapter 9 is meant for municipalities, such as cities. A Chapter 7…

Read More
factory bankruptcy

The Great Northern Paper Co. has filed for Chapter 7 bankruptcy in court in Delaware. This business, which is approximately 100 years old, used to produce paper for books, newspapers and other uses. They recently stopped operations at their last plant in Maine, according to the Portland Press Herald on September 29, 2014 and the…

Read More

The City of Stockton, which is in California, has been under federal bankruptcy protection for approximately two years. It seems that it will exit soon, but for now, its pension system, Calpers, is holding up the process. Calpers is California’s public pension system for municipal employees. Previously, it had seemed that in bankruptcy, debts to…

Read More
wage garnishment

When a bankruptcy petition is filed, what is known as an “automatic stay” is put in place on the debtor’s bankruptcy estate. A bankruptcy estate is the grouping of a person’s assets that they are put in their bankruptcy filing. The automatic stay prevents creditors from collecting on debts covered under the estate. This is…

Read More
home mortgage problems

Loans guaranteed by the government’s Federal Housing Administration (FHA) have, between 2000 and 2012, faced higher default rates than loans partially guaranteed by the Department of Veterans Affairs (VA). When understanding the reason or reasons for the different default rates, one might assume it has to do with the type of borrowers the FHA lends…

Read More
bankruptcy case

Detroit’s bankruptcy trial recently commenced. This trial is expected to last for five weeks and deals, in part, with objections to the proposed settlement. Two of the city’s creditors do not want their debt restructured, but the city claims these creditors have a lower payback priority than the city’s pension funds. The city has $18…

Read More
bankruptcy effects

One of the major issues in Kentucky today is whether the enactment of the Affordable Care Act (ACA) will do more harm than good? Rand Paul, who is currently one of Kentucky’s senators, does not support the Affordable Care Act. He alleges that the ACA might cause some of Kentucky’s hospitals to close down as…

Read More
bankrupt cities

Within the last five to six years, it seems like many municipalities or cities have filed for bankruptcy because they were unable to eliminate the debts they had at the time. Therefore, they filed a Chapter 9 bankruptcy, which is a reorganization plan for cities and municipalities. However, this must comply with the state’s law…

Read More
bankrupt

Puerto Rico might still be in financial trouble as it is struggling to repay its debt. As a result, it recently obtained the help of a law firm to help rearrange its current liabilities.  Right now Puerto Rico’s debt is about $70 billion, in addition to interest as reported, by Bloomberg View in an April…

Read More
bankruptcy success

We have blogged extensively on the bankruptcy of American Airlines and the legal background behind its subsequent merger with US Airways. We are happy to learn that this Chapter 11 reorganization and the two airlines’ merger have been largely successfully and this blog may, in fact, be the last one on this topic. AMR, the…

Read More
Bronx Bankruptcy Lawyer

Stockton, which is a city located in California, filed for bankruptcy last year. Today it is the second largest municipality which has filed for bankruptcy. Since then, Stockton has been trying its best to stand on its own two feet again. As a result, it recently hiked up its sales tax from “8.25 percent to…

Read More
bankruptcy

When Detroit filed for Chapter 9 bankruptcy earlier this summer, part of its obligation was to have its debt reduction plan approve by its creditors, or the people that it owes money to. While there have been numerous proposals or ideas, none have been approved by the creditors so far. However, this past week, Detroit…

Read More
bankruptcy crisis

The city of Detroit, Michigan has filed for bankruptcy. Thus it needs to come up with a bankruptcy plan on how it intends to pay off its current debt. As a result, in a part of its bankruptcy plan it is thinking about selling its assets as reported by the L.A. Times in an October…

Read More
Bronx Bankruptcy Lawyer

Cities, businesses and individuals are not the only ones filing for bankruptcy. Today, there have been numerous hospitals that have closed down nationwide or are on the verge of closing down.  These nationwide hospitals have filed or will probably file for Chapter 9 bankruptcy, as reported by Becker’s Hospital Review in an October 18, 2013…

Read More
bankrupt

Jefferson County in the State of Alabama filed for bankruptcy nearly two years ago. Generally, when a municipality files bankruptcy, it needs to come up with a court-approved plan to reduce the debt it owes. Alabama is not satisfied with its current plan, and it is thinking about ignoring it if its creditors or debtors…

Read More
Bankruptcy Lawyer

Antitrust laws The US government has antitrust acts in place to ensure that there is fair competition between businesses. This is a practice that benefits consumers. For example, if an apple grower had 100% of the market share of apples in the US, then that would be a problem because consumers would have no choices…

Read More
bankruptcy eligibility

Individuals filing bankruptcy, whether through Chapter 7, 11, or 13 protections, must show that they are eligible to file bankruptcy and that particular chapter, or type, of bankruptcy. The means test helps determine what chapter of bankruptcy an individual is eligible for. The City of Detroit has filed for Chapter 9 bankruptcy, the type of…

Read More

Dewey and LeBoeuf, one of the largest law firms in the United States, filed for a Chapter 11 Bankruptcy in 2012. The lawyers working on the bankruptcy submitted  detailed fees incurred for the bankruptcy, and the judge held that the fees were “excessive,” as reported by the New York Law Journal in a January 28,…

Read More
Bankruptcy

Today many counties and cities within the United States are filing for bankruptcy because they are unable to repay their large debts and their creditors will not cease collection actions until they are repaid. At the end of 2011, Jefferson County in the state of Alabama filed a Chapter 9 municipal bankruptcy case with claims…

Read More
Pensions & Bankruptcy

According to Thompson Reuters News and Insight in a June 6, 2013 article the city of San Bernardino and its creditors had a court date scheduled today. Calpers, its biggest creditor, was at this hearing and it argued that the city should provide more information pertaining to its financials. However, the judge did not agree…

Read More
bankruptcy

Many companies, counties, cities and health care facilities are facing financial problems or difficulties today. As a result, they have no other option than to file for bankruptcy. A New York City health care company, Sound Shoue Systems Inc., recently filed for bankruptcy under Chapter 11 protection as reported by Thomson Reuters News and Insight…

Read More
Bankrupt

The city of Detroit which is located in the state of Michigan is currently deteriorating structurally as reported by Thomson Reuters News and Insight in a June 3, 2013 article. As a result, the city is facing numerous lawsuits based on the “exposed manholes, malfunctioning traffic lights and broken sidewalks.” The city is currently self-insured…

Read More
Credit Cards

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 More
Bankruptcy

Today many more people, government bodies, and entities are filing for bankruptcy due to the large debt it has and cannot repay. San Bernardino, a city located in California, filed for bankruptcy and one of its former financial advisers said that the city might have been forced to file for bankruptcy due to the misuse…

Read More

Sonoma County, which is located in the State of California, is widely known for its wine and beautiful scenery. Consequently, it attracts many tourists. However, it is currently going through financial difficulties. The roads in Sonoma are “crumbling” and it has a “completely failed road system” as reported by Thomson Reuters News and Insight in…

Read More

According to an April 1, 2013 NJ News article an engineering firm, Birdsall Services Group, was denied their bankruptcy petition for falsely filing. Deputy Attorney General Derek Miller argued in his court documents that the firm’s filing was an attempt to prevent prosecution of the firm’s seven current and former executives. The state’s Attorney General…

Read More
Bronx Bankruptcy Lawyer

A Miami Herald news article published on April 1, 2013 reported that GMX Resources Inc. has filed for Chapter 11 bankruptcy protection. GMX Resources Inc. is an oil and gas production company who was forced to seek financial assistance after natural gas prices hit an extreme low.  The Oklahoma company included their sister units in…

Read More
Bronx Bankruptcy Attorney

The California Public Employees Retirement System, called “Calpers,” is the pension fund for employees of the State of California. The fund has received a disappointing judgment in court regarding its position as a creditor in the San Bernardino, California municipal bankruptcy, as reported by Thomson Reuters News and Insight on December 21, 2012. Calpers has…

Read More
Municipal Bankruptcy

An April 1, 2013 Fox News article reported that Stockton, California will be filing for bankruptcy. Stockton is the nation’s most populated city to suffer financial issues. Officials for the city filed for bankruptcy, which the U.S. Bankruptcy Court accepted this week. The city filed the petition after facing a $26 million debt that arose…

Read More

Student loans represent the largest portion of consumer loans in the United States at over $1 trillion, according to a January 24, 2013 Huffington Post article. Currently, these types of loans, whether they are private or federal, cannot be discharged through bankruptcy, except in very rare circumstances where a party can show that the loan…

Read More
hospital files bankruptcy

Recently, the Interfaith Medical Center, has decided to file Chapter 11 bankruptcy. The New York Times, on December 2, 2012, wrote that this Brooklyn hospital has had financial problems for decades. The hospital serves the Bedford-Stuyvesant and Crown Heights neighborhoods and is having a difficult time paying its employees. Over the years, the hospital has…

Read More
auto loan mod

The Federal Trade Commission (FTC), part of the U.S. federal government, works to protect consumers. One part of their work involves protecting consumers against financial scams. Recently, the FTC cracked down on what used to be an auto loan scam. A company, Hope for Car Owners, LLC, promised to deliver auto loan modifications that would…

Read More