Practice Area

Brooklyn Bankruptcy Attorney

Consumer bankruptcy, discharge of debts, and negotiating modifications on loan obligations — filed in the Eastern District of New York.

Where People Usually Start

Debt usually becomes unmanageable through circumstance rather than choice — an illness, a job loss, a reduction in hours, a business that did not work out. By the time the calls and the judgments start, the question is no longer whether to deal with it, but which option actually leaves you better off: bankruptcy, a negotiated modification, or neither.

How we can help

Bankruptcy in New York

Even the most financially-responsible people among us can be overwhelmed by the costs arising from an accident, an illness, a loss of employment, a reduction of hours at work, a spike in interest rates, a loss of overtime wages, a bill for an unexpected repair job, or some other change in circumstances.

The results of spiraling debt can be devastating: depression, relationship trouble, anxiety and sleepless nights can affect an otherwise perfectly grounded individual whose expenses have grown unmanageable. This is why it is essential not only for your mental but also your physical well-being that you act to reduce your debts as quickly and prudently as possible by hiring a New York bankruptcy attorney. The longer one waits to take care of unpaid bills, the more a catastrophic outcome is likely to occur, such as the loss of a home, a car, or other cherished property. Not to mention the health risks posed from coping with long-term stress.

Let go of the stress

If you are eager to restore a sense of balance to your life, you may wish to acquire legal representation from a bankruptcy lawyer. Contact the office today to arrange a free initial consultation.

What is Chapter 7 bankruptcy?

Chapter 7 of the United States Bankruptcy Code is a provision under Federal law designed to assist individuals and businesses who cannot repay their debts. When a person files a Chapter 7 bankruptcy in New York, he or she is taking the initiative to reestablish control over their financial situation. Put another way, a Chapter 7 bankruptcy can help people turn over a new page in their financial history. Dischargeable debts include credit card balances, bank loans, personal loans, court judgments, and medical bills. Of note, there are certain non-dischargeable debts that typically must be paid. These generally include tax debts, student loans, government fines, court fines, as well as child and spousal support.

Exempt property in bankruptcy includes

A certain amount of equity in your home
A certain amount of equity in a motor vehicle
Most household items and personal property such as clothing, a wedding ring, or the tools of your trade
Most public benefits such as social security, disability, veterans benefits and worker’s compensation
Alimony and child support
Qualifying retirement accounts, pensions, and life insurance
A limited amount of cash

Do you qualify?

Changes in the bankruptcy laws require people who earn above the average income in their geographical area to go through a means test to see if they qualify for Chapter 7 bankruptcy in New York. A two-step income and expense analysis, the means test can be complicated for a person unfamiliar with its criteria to determine on his or her own. This office can guide you through the means test and help you determine whether you are an eligible candidate for Chapter 7 bankruptcy. In the event you are not eligible, there are other options to explore such as Chapter 13 bankruptcy.

Once you retain this office, work on your case begins immediately, with representation throughout the entire bankruptcy process from beginning to end. Once you inform the collection agencies that you are represented by an attorney, they are required by law to stop contacting you. In some instances, declaring bankruptcy can stop home foreclosure proceedings as well as deter the repossession of property.

Solutions for bankruptcy

Your best legal options for getting out from under debt will depend on your individual circumstances and goals. You will get clear, honest information on the best course of action and how it will affect you.

If you feel that you are on the verge of bankruptcy, or if you need help understanding how the process works, contact the office for a consultation. The longer you wait, the worse it can become.

Why this needs a lawyer

Filing is a formal proceeding in federal bankruptcy court, and the choice of chapter, the timing of the filing and the way exemptions are claimed determine what you keep. Some debts are not dischargeable. Some transfers made before filing can be undone. A case filed incorrectly can be dismissed with the protection lost. It is worth understanding the outcome before the petition goes in rather than after.

Where these matters are filed

Each borough files in a different court, and for property matters with a different recording office. The pages below set out what changes from one area to the next.

Bankruptcy Law — common questions

Where is a bankruptcy case filed if I live in Brooklyn or Staten Island?

In the U.S. Bankruptcy Court for the Eastern District of New York, at the Conrad B. Duberstein Courthouse, 271-C Cadman Plaza East in Brooklyn. That district covers Kings, Queens, Richmond, Nassau and Suffolk counties. Manhattan and Bronx cases go to the Southern District instead.

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 discharges qualifying debts, generally over a matter of months, and is the more common route for individuals. Chapter 13 reorganizes debt into a repayment plan over several years and is used when income is too high to qualify for Chapter 7 or when there is property to protect that Chapter 7 would not shield.

Which debts can and cannot be discharged?

Dischargeable debts include credit card balances, bank loans, personal loans, court judgments and medical bills. Certain debts generally survive bankruptcy — tax debts, student loans, government and court fines, and child and spousal support.

Will I lose my house or my car?

Not necessarily. New York exemptions protect a certain amount of equity in a home and in a motor vehicle, along with most household goods and personal property, most public benefits, qualifying retirement accounts and pensions, and a limited amount of cash. Whether your equity fits inside those limits is the question to work through before filing.

What is the means test and do I have to pass it?

If you earn above the median income for a household your size in your area, a two-step income and expense analysis determines whether you qualify for Chapter 7. It is not a simple income comparison, and many people who assume they earn too much still qualify once allowable expenses are counted.

Will creditors stop calling?

Once you inform collection agencies that you are represented by an attorney, they are required by law to stop contacting you directly. Filing itself triggers the automatic stay, which halts most collection activity while the case is pending.

Can bankruptcy stop a foreclosure or a repossession?

In some circumstances, yes. Filing can stop home foreclosure proceedings and deter repossession of property. Timing matters a great deal here — the protection depends on where the foreclosure already stands when the case is filed.

Is the consultation really free?

Yes. The initial consultation is free, for bankruptcy and for every other practice area. Bring whatever paperwork you already have — statements, collection letters, court papers — and the more complete it is, the more useful the first meeting will be.

The answers above are general information about bankruptcy law in New York, not legal advice, and do not create an attorney-client relationship. Every matter turns on its own facts.