money bill with face mask

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…

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woman with mask and wallet

With over 187,000 reported cases and more than 19,000 deaths, New York City continues to be an epicenter for the novel coronavirus pandemic. Social distancing remains in place, and non-essential businesses that can’t operate online remain closed. If you worked at one of these businesses, you’re probably worried about your financial situation. Below is an…

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quill

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…

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woman holding papers

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…

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debt collection letter

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…

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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.…

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debt coins

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…

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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…

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stop hand concept

When you file for Chapter 7 bankruptcy in New York, one of the biggest advantages is that the automatic stay protects you from most creditor actions such as collection agency calls, wage garnishments, lawsuits, foreclosures, and repossessions. The automatic stay is an injunction issued by the bankruptcy court. Once creditors are notified, even a lawsuit…

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RECEIVED stamp

You file for bankruptcy to put your mountain of unsecured debt behind you, but it doesn’t always proceed smoothly. Although it’s not a routine happening, a dispute can arise regarding a debt that you included on the petition. Should this happen, you, your trustee, the creditor, or another party involved in the case can file…

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increase in debt

A recent report by the Federal Reserve Bank of New York indicates that the third quarter of 2018 saw increases in practically all types of borrowing, making it the 17th consecutive quarter that America’s debt load has increased. Household debt rose yet again to $13.51 trillion, most of which was mortgage debt at $9.14 trillion.…

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interest rates

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…

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When you accumulate a certain amount of tax debt, the IRS may file a lien against your property, including your home. These liens effectively encumber everything you own, such as your house, motor vehicle, bank account, and real estate, and everything that you acquire while the lien is still in effect. Once a tax lien…

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Bankruptcy Reaffirmation agreement closeup

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…

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credit card offer

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…

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past due debt and credit cards

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…

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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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new years

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…

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income on desk

Should you fail to pay your bills, your creditors can legally sue you for the money you allegedly owe them, but if you are ‘judgment proof’, they may not succeed in collecting it, especially if it is a credit card balance, medical debt arrears, or some other form of unsecured debt. In this blog, we’ll…

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five reasons concept balloon

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…

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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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houses in bankruptcy

When New York homeowners file for bankruptcy in New York, they are typically aware of the protections extended to them by the automatic stay. The calls and letters from creditors and/or third-party debt collectors stop and all official collection actions, such as wage garnishments or lawsuits, are brought to a halt. A comparative few-and even…

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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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legal consultation with two people

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…

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money bill

Imagine this scenario. Your ex has been ordered to pay you child support after your New York divorce, and she does—approximately half the time. As the months pass, many payments are missed and the amount of back child support due to you increases. Then you find out that she has just filed for bankruptcy to…

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exempt sign bankruptcy

Chapter 7 is often referred to as the “liquidation bankruptcy” because it wipes out most, if not all, of your unsecured debts. This fact, combined with the relatively short duration of a typical filing, motivates a lot of people to use Chapter 7 to get a fresh financial start. There is a potential downside, however.…

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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…

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mortgage

In times of extreme financial difficulty, many people fall behind on their mortgage payments. In some instances, the mortgage company or lender will work with the homeowner by modifying the terms of the loan or facilitating a short sale, but other times they will start the foreclosure process, which entitles them to repossess the house…

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When homeowners experience financial difficulties, meeting their mortgage obligations may eventually become impossible. For many of them, bankruptcy is an opportunity to get a fresh start by discharging all non-exempt debts or organizing them into an affordable payment plan. Each type of bankruptcy treats mortgage debt differently, however, so it is important to evaluate all…

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chapter 13 bankruptcy Plan

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,…

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credit score post 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…

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houses in 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,…

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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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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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mortgages and bankruptcy concept

A recent decision from the Supreme Court is important for homeowners as it addresses second mortgages. The ruling specifically addresses concerns related to these second mortgages where homeowners find their homes underwater. According to the decision, homeowners should not be prepared to strip or otherwise anticipate wiping out their second mortgage completely in bankruptcy just…

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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…

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liens and bankruptcy credit image

You may have heard the term lien before, but what does it mean exactly? Simply put, a lien means that there is a “hold” (a legal claim) on a particular property. This can be real estate property or personal property. This means that the property becomes collateral against the services or money that is owed…

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financial distress illustrated underwater

Even though it sounds a little complicated, the term ‘underwater’ is not as difficult as it might appear at first. Underwater (alternative options include “upside down”) means that you owe more on your current mortgage than your actual home is worth. Even though it is a relatively simple concept, the truth is that it is…

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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 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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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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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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foreclosure and banks

Fannie Mae and Freddie Mac, home mortgage agencies, take over or issue many American’s mortgages. The US government backs Fannie and Freddie mortgages. While some may think that Fannie and Freddie will always help borrowers in financial trouble that is not always the case. Some organizations, such as Stabilizing Urban Neighborhoods (SUN), a Massachusetts non-profit,…

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bankruptcy singer

Rihanna filed for bankruptcy about five years ago, in 2009, because her accountants were unable to keep detail logs of her money or failed to inform her that she was heading downhill financially, as reported by AOL in a February 12, 2014 article. The well-known singer claims that “their poor advice saw her fortune fall…

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in debt

A credit reporting company recently analyzed about 5 million mortgages to determine, in part, if borrowers who received mortgage modifications kept up with their payments after the modification. TransUnion found that more than half of those who received a mortgage modification were behind on payments a year-and-a-half later. The June 21, 2012 New York Times…

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bankruptcy attorney

Deciding to file for bankruptcy is a hard choice or decision that one has to make. Filing for bankruptcy might mean giving up one’s home and car, and relocating to another neighborhood, as reported by The Week in a January 29, 2014 article. Moreover, when one has a family and has to tell his or…

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foreclosure

The Truth in Lending Act (TILA) was signed into law in 1968. It requires banks and other lending institutions to layout terms and costs related loans in a specific manner. In one case covered by the New York Law Journal on January 8, 2014, a borrower asked the court for partial summary judgment relating to…

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Medical debt

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…

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mortgage debt concept

Many people take out a mortgage, so that they are able to purchase or finance a home. Due to the economic crisis, many people are unable to pay their bills. As a result, many people are taking advantage of reverse mortgages and as a consequence, the laws governing them are becoming stricter.  A reverse mortgage…

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Bankruptcy Bronx

Usually people file for bankruptcy when they are unable to keep up with their mortgage payments, credit card payments, medical bills, etc.  Many people file for bankruptcy because they are unable to keep up with their mortgage payments and they do not want to lose their homes. When one files for a Chapter 7 bankruptcy,…

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Bronx Bankruptcy Lawyer

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…

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Today many people are unable to keep up with their mortgage payments. As a result, the lender or the bank is stepping in and foreclosing on the property. A lender recently foreclosed on property when the borrower defaulted on his mortgage payment. The borrower wanted to “vacate the judgment of the foreclosure and the sale,…

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A February 8, 2013 Reuters online article announced that Florida’s Supreme Court issued a ruling that prevented a homeowner from re-opening a voluntarily foreclosure even though it was found that the bank falsified documents. The Florida case involved a Florida homeowner who filed for foreclosure after receiving a past due mortgage notice. The homeowner agreed…

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Bronx Bankruptcy Attorney

In a February 21, 2013 Bloomberg news article it was reported that the housing marketing is starting to stabilize and strengthen. New reports show that more people are showing interest in purchasing their home because of the low mortgage rates and unemployment rates are lowering. Last year roughly 4.66 million homes were sold, the largest…

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According to the Boston Globe and the Times Union in articles published on January 22, 2013, bankruptcy filings were down in Massachusetts and the Albany region in 2012 as compared to previous years. Experts say that the number of bankruptcy filings often follows the economy. For example, in 2009, banks offered credit to many borrowers…

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