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When you’re struggling with mounting debt balances, bankruptcy can give you the financial relief you need- unless your goal is to eliminate student loan debt. This is not to say that you can’t discharge your student loans, but it’s extremely difficult, and the chance of success has traditionally been low. For a bankruptcy court to…

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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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Veterans of the U. S. military sometimes struggle financially after they return from active duty.    Physical and/or emotional injuries (according to the Bureau of Labor Statistics, in 2018 an estimated 41% of Gulf War-era veterans had a disability related to their service) or a personal crisis like divorce can make it impossible for them to…

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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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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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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 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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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 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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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The New York Law Journal announced the new rules that were put into effect by the Consumer Financial Protection Bureau (CFPB) in a January 18, 2013 news article. The CFPB created new restrictions on how mortgage companies practices. These new restrictions were implemented to better protect consumers from unnecessary financial hardships and harassing practices. The…

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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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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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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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