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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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Section 550 of the U.S. Bankruptcy Code allows a trustee to sue creditors to recover any payments made by a debtor within the 90-day period prior to their bankruptcy filing. These actions, which as known as preference lawsuits, apply to payments that were made: On a previously incurred (as opposed to current) debt While the…

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Many clients who file bankruptcy with our office have received notices in the mail or calls by phone that their debts have been purchased by a debt collector. A few of the most common agencies are: Midland Funding Asset Recovery Systems (ARS) United Collection Bureau (UCB) Cavalry Portfolio Services Many clients have many questions about…

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The month of January can be a difficult time for financially for anyone. They may have acquired even more debt due to holiday spending and are reaching the point where they have to choose between paying the rent and paying their credit card bill. People stuck in this situation may benefit from Chapter 7 bankruptcy.…

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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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Many consumers have heard of the Fair Debt Collection Practices Act, which protected them from abusive, unfair, and unconscionable treatment by third-party debt collectors. What may not be as well-known is that individual states have their own debt collection laws, some of which extend greater protection to residents. The New York debt collection regulations were…

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If you are struggling financially, then you may fall behind in your rent payments. With New York rents being so high, it is not unusual for a distressed consumer to go into arrears simply to put food on the table. This means that you will eventually receive a notice of eviction from your landlord.  For many filers,…

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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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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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Many New Yorkers who start their own businesses, alone or with someone else, choose to incorporate. Their personal assets are differentiated from the company’s, offering greater protection, banks are more receptive to lending money to incorporated businesses, and having “Inc.” or “Corp” after the company name enhances credibility and opens up more opportunities. When an…

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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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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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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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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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When you file for Chapter 13 immediately after receiving a Chapter 7 discharge, it is known as a Chapter 20 situation. Its intended purpose is to allow you to discharge your unsecured debts via a Chapter 7 and then catch up on nondischargeable debts such as taxes and your mortgage in a Chapter 13 repayment…

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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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When you file for bankruptcy in New York, all of your listed creditors are provided with a notice of your filing. They also receive notification of your discharge once you successfully complete all of your bankruptcy obligations. There are, however, occasions when debt collectors will attempt to collect a debt that was included in your…

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Although it sounds like the title from a bad movie, zombie debt is a real problem for modern consumers. It refers to a financial obligation that has been charged off or otherwise removed from a creditor’s books because the lender could not afford to pay it or could not be located. The majority of creditors…

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If you are considering a New York bankruptcy and have guarantors or co-signers on any or all of your debts, then you may wonder how filing may affect them. Once you are officially bankrupt, doesn’t it mean that your creditors will now go after the people who guaranteed those debts? These are usually family members…

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The Fair Credit Reporting Act (FCRA) is a federal law that governs the actions of credit reporting agencies (CRAs) such as Experian, Equifax and TransUnion, and the individuals and businesses that supply the information used to compile your credit report. It also dictates the following: What the CRAs, creditors, and other authorized parties can (and…

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The average credit card debt in New York state is approximately $6,390. For some, that can be managed. But if you are experiencing financial difficulties, it may be beyond your ability to cope with, especially if you have high-interest credit cards that make paying down the principal impossible. Credit card balances are unsecured debts, so…

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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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There are some big benefits to living in New York State when it comes to debt collection, because the Empire State has some of the strongest anti-harassment laws around the country. The laws on the books are designed to protect consumers from being unreasonably harassed by debt collectors. If you’ve ever received a phone call…

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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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Perhaps you’ve considered filing a Chapter 7 bankruptcy but you’ve hesitated because you weren’t quite sure what will happen.  Can creditors come after you for repayment even after you file?  Will all credit card debt automatically be dismissed? Those are troublesome questions, to be sure.  A brief explanation of the Chapter 7 provisions can help…

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The Fair Debt Collections Practices Act (FDCPA) is designed to regulate the debt collection industry and to protect consumers. The FDCPA defines what a debt collection agency is and orders that such agencies provide clear information to customers every time the agency communicates with them. On August 14, 2014, the New York Law Journal reported…

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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 718-514-6619 to learn more and set up a free in-person consultation with attorney Jayson Lutzky who has…

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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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Bankruptcy is usually filed by the person or entity that is unable to pay its debts, and that is looking for either a discharge of such liability or to establish some sort of a repayment plan, as per a Chapter 11 or a Chapter 13 bankruptcy respectively.  However, recently a few creditors filed a petition…

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Creditors of a personal bankruptcy law firm, Jacoby & Meyers Bankruptcy LLP, have forced the company into involuntary Chapter 7 bankruptcy. The firm had closed itself facing financial difficulties in December 2013. The firm formed a trust that would pay out the creditors of the firm. Legal Zoom, a legal document service company, is one…

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Bankruptcy cases can take a while, especially when the court has to approve the discharge and the reorganization plan under a Chapter 11 Bankruptcy filing. The law firm Dewey and LeBoeuf filed for a Chapter 11 bankruptcy two years ago. Two members, who were responsible for running the company, requested that “discovery of a trustee…

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Let’s suppose you have a credit card and you have been making large purchases and living beyond your means. You don’t want to stay in debt, but you’re only paying the minimum required payments. According to AARP, credit card minimum payments are usually only 2% of the balance. By consistently paying minimum payments, you will…

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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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Even media companies are significantly suffering financially. According to a March 27, 2013 Huffington Post article CommonSense Media filed for a Chapter 7 bankruptcy. The company, located in Washington D.C. petitioned the courts seeking to liquidate its assets. The media company, originally founded in 2007, works to publish and advertise via digital media. The media…

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Going through a bankruptcy can be a stressful process to a person who is unaware of procedure, but it does not have to be. When deciding whether bankruptcy is right for your financial needs it is important to look into the risks and benefits of filing. Chapter 7 personal bankruptcies are more common than the…

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In an article published by the New York Law Journal, dated May 29, 2012 (dec.nylj.com/1202555921081), a creditor, Pride Acquisitions made a motion for a summary judgment claiming they made their case based on “breach of contract and account stated.” Pride sought fought summary judgment based on the fact that they were treating a “cease and…

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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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