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What is the Rule 2004 examination in bankruptcy?

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…

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Bad faith in involuntary bankruptcy

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…

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Bankruptcy and the SCRA

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…

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Who will find out that you filed for bankruptcy in New York?

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…

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What to expect at a 341 meeting

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…

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Buying a home after a New York bankruptcy

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…

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Common issues clients must overcome when filing bankruptcy

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…

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Takata files for bankruptcy

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…

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Chapter 9 bankruptcy

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…

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Title III bankruptcy: What it is and how it works

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…

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Social security disability and bankruptcy

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…

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How to conduct yourself prior to filing for bankruptcy

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.…

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Student loans and bankruptcy in New York

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…

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Puerto Rico’s debt reaches the Supreme Court

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…

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Will bankruptcy eliminate all of my debts?

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…

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Homeowners still underwater with mortgages despite asking for help

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…

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Supreme Court will hear case on bankruptcy and underwater second mortgages

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…

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BANKRUPTCY DISCOUNT: CUT YOUR DEBT FOR 10% LESS

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…

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Detroit exits bankruptcy, but will it rebound?

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…

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What debt can be discharged in bankruptcy? What debt cannot be discharged?

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…

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Century-old New England paper mill files for Chapter 7 bankruptcy

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…

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Pension exceptionalism doctrine questioned in Stockton bankruptcy

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…

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New York must pay for failure to observe bankruptcy’s automatic stay

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…

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Why there are fewer defaults on VA home loans than FHA loans

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…

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Is bankruptcy enough for Detroit?

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…

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Will health care coverage cause hospitals to close down?

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…

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Recap of bankrupt municipalities

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…

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Puerto Rico and its financial troubles and potential debt bailout

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…

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A bankruptcy success story

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…

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Stockton is beginning to recover from financial woes and bankruptcy

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…

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Detroit’s bankruptcy plan is not finalized as yet

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…

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Why bankruptcy reduces one’s options

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…

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Hospitals face bankruptcy, too

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…

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Alabama is unsatisfied with bankruptcy plan

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…

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Major airline bankruptcy and merger looks settled

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…

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Is Detroit eligible for bankruptcy?

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…

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Bronx bankruptcy lawyer blogs on American Airlines emerging from bankruptcy

Bronx Attorney

American Airlines, which has merged with US Airways, has gotten the final clearance to take off from bankruptcy protection according to the New York Times in a September 12, 2013 news article The company has been under bankruptcy protection for about two years. The bankruptcy court in Manhattan has given American approval to finish the…

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Judge has the right to lower legal fees in bankruptcy

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,…

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Bronx attorney comments on losses in a municipal bankruptcy

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…

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San Bernardino and its bankruptcy problem continued

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…

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Government cuts causes bankruptcy

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…

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Detroit’s financial crisis

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…

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Credit card receipts provide too much information

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…

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San Bernardino and its bankruptcy problem

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…

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Tourist destination in financial crisis

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…

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New Jersey Attorney General prevents an engineering firm from filing for bankruptcy

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…

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Oil and Gas industry affected by financial constraints

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…

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California state pension fund cannot collect from bankrupt municipality

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…

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Popular city in California files for Chapter 9 bankruptcy

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…

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Senators propose changes to private student loan laws

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…

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A Brooklyn hospital prepares to file bankruptcy

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…

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Auto loan modifiers’ business backfires as FTC takes action

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…

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