How Long Does it Take to Complete Chapter 7 Bankruptcy?

The time it takes to complete Chapter 7 bankruptcy varies depending upon your situation. In general, you can expect it to take around three to four months on average to complete Chapter 7 bankruptcy and have your debts discharged. However, if there are objections from creditors or other complications, it could take much longer. 

An experienced Melville, NY bankruptcy lawyer will do everything possible to ensure you complete Chapter 7 bankruptcy as quickly as possible so you can move on with your life and begin to rebuild your credit score. Call Ronald D. Weiss, P.C. today to learn more about how you can get help to complete Chapter 7 bankruptcy.

How Long Does it Take to Complete Chapter 7 Bankruptcy?

Before you can file Chapter 7, you must complete pre-bankruptcy counseling with an approved credit counselor or agency. This counseling is the first step in your bankruptcy and you must complete the counseling within 180 days before officially filing for bankruptcy.

You have to be a resident of the state where you plan to file for bankruptcy at least 90 days prior to filing for protection and you are not allowed to repay any creditors or incur certain types of new debts for “luxury goods or services” within this 90 day period. If you give any creditor money in the 90 days before filing, the transaction may be undone. If you buy luxury items, obtain cash advances exceeding $750 or pay for luxury services on credit within the time leading up to the bankruptcy, the debt will be considered non-dischargeable.

Your bankruptcy officially begins when you actually file a bankruptcy petition in a bankruptcy court in New York State. Your creditors will receive notice of the bankruptcy and a bankruptcy trustee will be assigned and will oversee your case until you complete Chapter 7 bankruptcy.

Within 15 days of filing, you must complete and file your financial schedules with the court. These forms require you to declare expenses, income, assets and liabilities. These financial schedules can also be filed with your initial petition.

Around 15 days after you have filed with the court, you will also receive a Notice of Commencement of Case in the mail. This notice will also be sent to your creditors. It contains the date of your 341 meeting of creditors as well as deadlines for creditors to object.

A Statement of Intention must be filed within 30 days of your initial bankruptcy filing. This will advise the court and creditors whether you intend to keep any property that is serving as collateral for secured debts, such as keeping a car that is serving as collateral for a car loan. After the Statement of Intention is filed, you have 45 days to either get current on property you are keeping or to surrender property that you have chosen not to keep.

A meeting of your creditors is held within around three to six weeks after your case is initially filed. This meeting is presided over by the bankruptcy trustee and creditors may attend but often choose not to come. After the meeting, creditors and the trustee have 30 days to make objections to exemptions you’ve claimed. Creditors also have 60 days to object to any of the debts included in your bankruptcy being discharged. Usually, there are no objections.

Within 90 days, creditors also have to file a proof of their claim if they want to recover any money from the bankruptcy estate. If you owe any money to the government, the government has 180 days after your case is filed to submit proof of a claim against you.

Finally, if no objections are filed, your debts are discharged and the bankruptcy process ends. You should be guided throughout this process by an experienced Melville, NY bankruptcy lawyer who will help you complete Chapter 7 bankruptcy. Call Ronald D. Weiss, P.C. today to get the representation you need.

Applying the Chapter 7 Means Test in New York

Chapter 7 bankruptcy can benefit many people who are experiencing financial difficulties. The fundamental idea behind a Chapter 7 bankruptcy is giving a debtor a clean slate by liquidating all of his or her non-exempt assets and using the money to pay off creditors. Most debts that are not paid off are discharged, meaning that the debtor no longer has any legal obligation to pay that debt.

Partially due to perceived abuse of the bankruptcy system, Congress passed a law in 2005 making it more difficult for consumers to file for bankruptcy. As part of these reforms, a “means test” was introduced in order to prevent consumers with too high of an income from filing for Chapter 7. While the means test can be complicated to apply, here are some basics about the way that it operates.

The Means Test

As a potential filer, you must first determine whether your current monthly income is less than the median income in your state. If it is, you pass the test and you can file without having to make any additional determinations. The median income levels by household size for New York as of 2014 are as follows:

• 1 person – $48,109
• 2 people – $60,504
• 3 people – $71,179
• 4 people – $84,839

If your monthly income exceeds these amounts, a second calculation needs to be completed. You must determine your “disposable income” by subtracting your “allowable expenses” from your monthly income. Allowable expenses involve a combination of national and local standards; national standards have been established for food, clothing, out-of-pocket healthcare, and other items. Standards for housing, utilities, and transportation are established locally.

For people who are not able to file for Chapter 7 bankruptcy because they fail the means test, Chapter 13 may be an option. Chapter 13 can often help people who have relatively high monthly income, but have fallen behind on their debts. Discussing your situation with an attorney will help you determine which type of bankruptcy, if any, is right for you.

Contact a Long Island bankruptcy lawyer today to schedule a free consultation

Anyone who is experiencing financial difficulties should discuss their circumstances with an experienced bankruptcy lawyer. To schedule a free consultation with New York lawyer Ronald P. Weiss, call our office today at (631) 479-2455.

Foreclosure in Suffolk: Can I Keep Living In My Foreclosed Home?

The foreclosure process in Suffolk County can take a long period of time. When you begin to miss payments, the mortgage lender must take action and initiate the process of taking your home. This can take several weeks, or even months or years depending upon how many homes the lender is foreclosing on and how high of a priority your house is for the lender to deal with.

Because the foreclosure process can last for so long, many people wonder if they can remain in their homes while the lender moves forward. The answer to this question is yes. Remaining in your home throughout the foreclosure process can give you time to save extra money that you will need when you eventually are required to move out into a new location. Since you can essentially live rent-free for weeks or months while waiting for foreclosure (and not sending payments to lenders), you can put aside that money towards a security deposit for a new apartment or towards moving expenses.

Knowing when you need to leave your home is just one of the many questions you may have during the foreclosure process. To get your questions answered correctly and to ensure you are getting sound legal advice, contact a Suffolk debt relief and foreclosure lawyer to represent you. Your attorney can assist you in dealing with your lender, exploring mortgage modification options or foreclosure alternatives, or in fighting against or delaying foreclosure.

Living in a Foreclosed Home

Even when a lender has begun foreclosure proceedings, the home still remains yours. Typically, the house is going to continue to be yours until the lender has officially foreclosed and the home has reverted to the lender’s possession or been sold at a foreclosure auction.

Once the house has been sold, the lender or the other new owners of the home can come and evict you if you have not yet left the home voluntarily. Leaving at or before this point is usually advisable to avoid legal trouble.

However, leaving before your home is officially transferred to the new owner can be unwise for many reasons. Not only does staying in the house give you the benefit of avoiding rent or housing costs, but you can also ensure that the house is still maintained. There have been cases where people have left homes before the foreclosure was finalized and have then been held responsible by local authorities for allowing the house to fall into disrepair in violation of code requirements.

Your attorney can advise you on when to leave your house, as well as on all other aspects of your foreclosure case. The Law Office of Ronald D. Weiss, P.C. has 25-years of experience representing clients with debt problems and those who are in danger of losing their homes. Call today to speak with a member of our legal team and learn how we can help you.

Do I need Credit Counseling to file for Bankruptcy?

Statistics reported1 by the United States Bankruptcy Courts indicate that filing for bankruptcy helped over 1 million Americans in 2013, including 35,242 residents of New York. While bankruptcy can help individuals and households in the United States manage overwhelming debt and give them a new financial start, there are certain requirements that Americans must meet to ensure their bankruptcy is approved by the courts. For example, all filings must be fully complete and accurate and you must pass a means test to qualify for Chapter 7 bankruptcy. All individuals filing for bankruptcy must also undergo credit counseling to have their bankruptcies approved.

The Basics of Credit Counseling

As part of the preparations for bankruptcy, the courts require you prove that you have undergone a consultation with a counselor at an approved credit counseling agency. The intention of this requirement is to ensure that you have explored other financial solutions to manage your debt and to make sure that bankruptcy is needed in your situation. Certain individuals may be exempt from the credit counseling requirements including active military members stationed overseas, those with mental or physical disabilities, or people requiring an emergency bankruptcy.

Many people may be concerned with this requirement, as a credit counselor may recommend other debt relief options. However, even if your counselor has other recommendations, you may still continue with your bankruptcy. For this reason, credit counseling requirements are actually a technicality of which you should not be anxious.

You must undergo credit counseling in the six months prior to your bankruptcy, and the counseling must occur through an agency that has been approved for New York filers2 by the office of the United States Bankruptcy Trustee. Once you have completed the counseling, you must submit a certificate of completion to the bankruptcy court. The court must receive this certificate within 15 days from the date you filed for bankruptcy.

How a bankruptcy attorney can help

An experienced New York bankruptcy attorney will understand all of the credit counseling requirements for bankruptcy filers and will guide you through the filing process. If you are considering bankruptcy as a debt solution, call the Law Office of Ronald D. Weiss at 631-479-2455 for help today.

What is Debt Reaffirmation in Bankruptcy?

Many people who are considering filing bankruptcy are concerned about losing important property such as their home of the vehicle. After all, the fundamental premise behind Chapter 7 bankruptcy1 is the liquidation of a debtor’s assets and using the proceeds to pay off his or her debts. Fortunately, there are many ways that a bankruptcy attorney can help people keep their assets while still taking advantage of the benefits of filing.

Anyone who is experiencing financial problems should discuss their options with an experienced bankruptcy lawyer as soon as possible. Call a Long Island bankruptcy lawyer at The Law Office of Ronald D. Weiss, P.C. at 631.479.2455 today to schedule a free consultation.

Keeping Assets in a Chapter 7 Bankruptcy

The most common legal mechanism through which people who file for Chapter 7 bankruptcy keep assets is by taking advantage of the various exemptions authorized by law. Types of property that may be exempt include your equity in your home, vehicles, clothing, jewelry, or work tools. Non-exempt property will be liquidated in order to satisfy underlying debt, and the amount of debt left unsatisfied is discharged. 

People who wish to keep secured property that does not qualify under an exemption have the option of reaffirming the debt. Debt reaffirmation is basically an agreement with a specific creditor to not include the debt in the filer’s bankruptcy. As a result, the debtor can keep the property and the creditor continues to receive payments. In many cases, debt reaffirmation is a good opportunity to negotiate with creditors, potentially resulting in lower monthly payments.

Reaffirming a debt is not always a good idea. In addition, there are some cases in which a court2 may not allow a debtor to enter into a reaffirmation agreement. Consequently, it is important for people who are considering bankruptcy and reaffirmation to discuss their options with a Long Island bankruptcy lawyer. Your attorney will thoroughly review your financial circumstances and advise you on your best course of action. In addition, a phone call from an attorney to a creditor can often result in a stronger negotiating position than if you call yourself. When creditors are aware that a debtor is considering bankruptcy, they often will offer much better repayment terms in the hope to recover something rather than nothing.

How Can a Bankruptcy Attorney Help Me?

Many people who are considering bankruptcy are experiencing significant financial problems. After all, if money were not an issue, they would probably not be contemplating filing for bankruptcy. As a result, many potential bankruptcy filers may be tempted to save money by trying to file for bankruptcy without an attorney. While it is possible to do so, it is often an ill-advised idea. In fact, the United States government recommends against filing without an attorney and counsels potential filers that “it is extremely difficult to do it successfully.”

There are many ways that a skilled bankruptcy attorney can help you get the best possible outcome in your bankruptcy case. Some of the most common include the following:

Make sure that all of your paperwork is complete and accurate

One of the most important things in a bankruptcy is completely and accurately filling out all of the necessary paperwork, which can be voluminous. Omitting assets or otherwise misleading the court can have serious consequences, including criminal prosecution. An attorney will help ensure that the documents you turn into the court are in compliance with all relevant laws.

Help you take advantage of all available exemptions

There are myriad exemptions available to people who file for bankruptcy, ranging from exemptions in real estate to livestock. An attorney will take a full accounting of your financial situation and make sure that you keep as much of your property as possible.

Negotiate on your behalf with creditors

In some cases, a debtor may choose to reaffirm certain debts and exclude them from their bankruptcy. This often occurs in cases where the debtor would like to keep some non-exempt property that he or she has financed, such as a house or a car. In these cases, the debtor often has a an opportunity to renegotiate the terms of his or her loan with the creditor, and the assistance of an attorney can often result in a much better outcome.

Schedule a free consultation with a Long Island bankruptcy attorney today

For over 25 years, Long Island bankruptcy lawyer Ronald D. Weiss has been helping people get a fresh financial start through bankruptcy. To schedule a free consultation with Mr. Weiss, call our office today at (631) 319-9238.

Can I Make Large Purchases Before Filing for Bankruptcy?

One of the main advantages of filing for bankruptcy is the discharge of most, if not all, of your unsecured debts. When a debt is unsecured, it means that the creditor does not have a lien or other security interest in a piece of collateral. For example, a car loan is generally a secured debt in that the creditor has a lien on the vehicle the loan was used to purchase. While secured debts can be also be discharged through bankruptcy, it usually also involves the creditor repossessing the property that was used as collateral. As a result, a person who is considering bankruptcy may be tempted to make large or unnecessary purchases on a credit card hoping that the debt incurred for the purchase will be discharged. In most cases, this is ill-advised, as the court has discretion in determining whether or not a debt will be discharged.

Certain purchases or actions can create a presumption of fraud

While the bankruptcy code exists in large part to help consumers who have fallen on hard financial times, it also has the potential to be abused. In an effort to stop certain perceived bankruptcy abuses, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.1 This law tightened the regulations regarding what types of debts are dischargeable in bankruptcy and also made it more difficult for certain people to file for bankruptcy. In addition, it contains a provision that creates a “presumption of fraud” for any luxury items purchased in excess of $650 in the aggregate to one particular creditor. What this means is that the creditor no longer has the burden to show that the debts were obtained fraudulently, but rather the debtor has the burden to show that they were not. Because fraudulent debts cannot be discharged in bankruptcy, a debtor who makes such purchases may well be stuck with the bill even after his or her bankruptcy is completed. While luxury items are not defined by the code, they can include anything that is not “reasonably necessary” for the maintenance or support of the debtor or his or her dependents. Luxury items may include:

• Trips
• Expensive clothing
• New electronics
• A new vehicle
• Jewelry

Whether a particular purchases or purchases will be considered “luxury items” depends on a number of circumstances. As a result, it is best for anyone who is considering bankruptcy to discuss their options with an experienced bankruptcy lawyer.

Contact a Long Island bankruptcy attorney today to schedule a free consultation

To discuss your situation with an experienced bankruptcy lawyer, call Ronald D. Weiss today at (631) 296-0322.