If you are considering filing bankruptcy in New York under chapter 7 or 13, the first thing that you need to do is determine your eligibility. Remember, bankruptcy enables debtors to protect their property as well as save lots of money on existing debts. But when you are out to file for bankruptcy in New York, it could be important for you to have proper knowledge on the eligibility requirements for filing a chapter 7 or 13 bankruptcy.

If you are considering How to file bankruptcy in New  York under chapter 7 or 13, the first thing that you need to do is determine your eligibility. Remember, bankruptcy enables debtors to protect their property as well as save lots of money on existing debts. And in the state of New York, unemployment rates are much lower in comparison to the national figures but still home foreclosures pose a major problem. But when you are out to file for bankruptcy in New York, it could be important for you to have proper knowledge on the eligibility requirements for filing a chapter 7 or 13 bankruptcy. Here is some crucial information pertaining to the same which could guide you, if you feel, “Should I file for bankruptcy?” in your endeavor to file for New York bankruptcy with a much greater degree of success.

Under the rules and regulations that apply to New York bankruptcy,

• You can get a discharge for $20,000 worth medical bills or all your credit cards under chapter 7.
• You can secure legal protection for your home and owned car under chapter 13.

When should you file a bankruptcy in New York?

As per amendments in the bankruptcy code in 2005, to be eligible for a chapter 7, debtors are required to pass the “Means Test”. But if you have a higher monthly or annual income, it may not be possible for you to qualify for a chapter 7 in New York. Alternatively, if you owe huge amount of debts, you cannot for a chapter 13. You can get more valuable information from a local competent New York bankruptcy attorney.

Find New York Bankruptcy Attorney – For Free No Obligation Bankruptcy Consultation

Existing levels of median incomes for New York residents

• $46,523 for a single individual
• $57,006 for a married couple
• $67,991 for a 3 member family
• $83,036 for a 4 member family
• In case the number of family members is more, you could save more money

A free evaluation with a professionally qualified as well as experienced New York bankruptcy lawyer who is well versed with the state bankruptcy laws and filing procedures can tell you more about other state bankruptcy exemptions.

Typically, in a chapter 13 bankruptcy, total unsecured debts such as medical expenses or credit card bills cannot exceed $336,900 and total secured debts like home and vehicle cannot exceed $1,010,650. Furthermore, while everybody is eligible for a chapter 13, you can qualify for a chapter 7 even if you were ineligible earlier, provided your financial situation worsens within the next six months. This is because the Means Test is not based on the monthly salary of the debtor, but takes into consideration how much the debtor has earned during the past six months.

To get more useful and relevant information on the New York bankruptcy exemptions, it is hereby recommended to utilize the professional services offered by reputed online service providers like Bankruptcy Only.

Is bankruptcy looming on the horizon and you’re looking for a good Queens New York Bankruptcy Lawyer to help you? Then this is certainly the article for you, because it contains all the information you need to know to make a good decision! You will get all the help you can get, but contact them as soon as you can.

Let’s take it slowly at first, and see what important things you should do before deciding on a lawyer. First of all, check out the rates of local law firms. You should set a budget for this and try to stick to it, because paying more may not get you better representation, and you might be better of sticking with a cheaper law firm. There are numerous affordable law firms that can provide you the best representation, but you just need to know where to look!

Yes, you read correctly! You shouldn’t choose just by looking at the rate, and you should check out all law firms in the area, no matter what their rate is. After you’ve picked several, pay each of them a visit and spend some time chatting with them. This way you’ll be able to tell what they’ll be like in court!

You simply have to chat with a Queens New York Bankruptcy Lawyer and you should be able to tell if he’s the lawyer you want representing you. Explain your case to him, and mention every little detail so he can get an idea of what you case is about. The lawyer will then tell you how you should proceed, and you can then choose to stick with him, or visit another law firm.

You should feel very comfortable when speaking to your Queens New York Bankruptcy Lawyer. This allows you to remember things that you may have otherwise overlooked, at that may help your case. Try to give your lawyer all the details regarding your case, and help him whenever you can. Most importantly however is the fact that you should never feel ashamed of the situation you’re in now, because you did absolutely nothing wrong!

Filing for bankruptcy can be embarrassing, but you shouldn’t feel anything of the sort because this can happen to absolutely anyone! Businesses can go wrong, or deals can fall, and once a bad luck chain is started it is hard to put a stop to it. Just accept the fact there there’s nothing for you to be ashamed of and you’ll be able to focus on other important things.

The final thing to remember when choosing a law firm to represent you is to check out how you are treated. Some law firms show no respect to their clients and treat them like criminals, even though they’ve done nothing wrong! You don’t want such a law firm representing you, because you deserve as much respect as the next man!

If you’re still looking for that perfect Queens New York Bankruptcy Lawyer, then check out our recommendation. They’re one of the best law firms you can hire, and you don’t have to spend a fortune for this either! Just give them a try and we’ll see why they’re the best!

Bankruptcy filings are up considerably. So, don’t be surprised if you open your mail and find a letter from an attorney telling you that one of your clients or customers is seeking relief from the courts to solve his or her financial troubles.

The bankruptcy process is full of rules that the debtor and creditor must follow. However, bankruptcy is not as formal as say civil court, Bankruptcy is a big “Let’s Make a Deal.” You can negotiate a resolution, hopefully one that is in your favor, in cases where the debtor is trying to save the business and pay back creditors.

With a Chapter 11 or Chapter 13 filing, reorganization is the goal. Debtors are required to pay debts according to a repayment plan the court sets up. Chapter 7 bankruptcy filing is quite different; the business is shutting its doors permanently and individuals are given a “fresh start” by liquidating assets and discharging debts.

Of course, the problem is that the vast majority of the filings are Chapter 7. More than 1.5 million consumer bankruptcy filings were processed over a 12-month period ending September 30, a 14 percent increase from the previous year, according to data released by the Administrative Office of the U.S. Courts. Chapter 7 filings were up 16 percent to over 1.1 million. Chapter 13 filings were up 9 percent to 434,839, while Chapter 11 filings were down nearly 4 percent to 14,191. Business bankruptcy filings fell 1 percent to 58,322.

Samuel J. Gerdano, executive director of the American Bankruptcy Institute (ABI), expects bankruptcies to rise in months ahead as unemployment hovers near 10 percent and access to credit remains tight. “As the economy looks to climb out of the recession, businesses and consumers continue to file for bankruptcy to regain their financial footing.”

The extent of your customer or client’s financial situation is more clearly revealed in the bankruptcy filing and “341” notices you receive. These will spell out 1) the type of bankruptcy filed; 2) the date the case was filed; 3) the court in which the case is being heard; 4) the deadline to file a proof of claim; 5) the time, date, and place for the first meeting of creditors; and 6) the rules for collecting what’s owed to you.

In some cases, you will have a better chance of getting paid the money that’s due—maybe not all but at least some of it. Here are some guidelines.

1. Stop Contact Completely

Once a person or business files for bankruptcy, you have to stop any and all collection activity. If you make contact to try to get your money back, you will violate the bankruptcy code and you can actually be sued. Even if you filed a lawsuit against the client, it gets stayed until the bankruptcy is completed. You can, however, contact the attorney or court appointed trustee to work out an arrangement on how your debt is handled in the bankruptcy, says Ring, who is the author of 102 Things Your Need to Know Before You File Bankruptcy. If for some reason you are not listed in the bankruptcy petition as a creditor who is owed money, then you will have the right to keep collecting on the debt even after the bankruptcy is over, says Ring.

2. Do a Cost-Benefit Analysis

Assess whether it is even worth your time or should you simply take the loss, says Daniel Gershburg, a Brooklyn, New York bankruptcy attorney. Meaning, “in a practical sense can you really get any money back from this consumer or client?” For instance, say the business grosses over $500,000 but it has over $1 million in debts and a long string of 15 creditors or more. There is very little chance you are going to receive any money back, Gershburg says. In most cases, he adds, small companies or consumers filing bankruptcy aren’t going to have tangible assets that the trustee can sell and then distribute to any and all creditors. Ring suggests reviewing the schedule I and schedule J, included in every petition, which will show the filer’s income and expenses.

3. Pay Attention to the Type of Bankruptcy

Chapter 7 is available to both individuals and businesses. Its purpose is to achieve a fair distribution to creditors of the debtor’s available non-exempt property, according to ABI. If debts outweigh the value of the assets, whatever is liquidated gets split up among creditors. Chapter 13 is for individuals or sole proprietors. It is designed for someone with regular income whose debts do not exceed certain amounts. It is used to budget some of the debtor’s future earnings under a plan through which creditors are paid in full or in part. Chapter 11 is primarily used by corporations. The purpose of Chapter 13 and 11 is to give the debtor a breather from creditors while the individual or company attempts to reorganize and come up with a better, more profitable way of doing business. The average case takes four to seven months to submit and approve a repayment plan.

4. File a Proof of Claim

Check the bankruptcy filing notice to see what the deadline is to file a claim with the bankruptcy court detailing what you are owed and why. Failure to file a claim definitely will eliminate any chance you have of getting paid. If there is any money left after the bankruptcy proceeding, the trustee appointed by the court will be charged with paying various creditors what’s leftover. Proof of claim is a one-page form that you can fill out yourself; you don’t need a lawyer. You can download this form for free from the US Courts web site; the filing fee is around $20.

Dig Deeper: Ask Inc.: A client of mine just went bankrupt. Now how do I get them to pay me?
5. Get in Line and Wait

Bankruptcy court has a definitive pecking order. Where you fall in the order will determine how likely you are to get any of what you are owed. Secured claims, which include mortgage holders, rank higher than unsecured claims, such as goods sold or services rendered. There are also fees that have to be paid to the trustee and administrators. Schedule A and Schedule B of the bankruptcy petition list secured debts while Schedule E or Schedule D lists unsecured debts. If the debt is secured, you have a stronger leg to stand on. But even if there is a chance you will get your money back, it’s typically 10 cents on every dollar owed.

6. Attend the “341” Creditors Meeting

This is a meeting with the court-appointed trustee, the debtor, and creditors. At this meeting, the debtor explains how things got so bad and what’s going to be done about it. Here is where as a creditor you get to ask questions of the debtor. You can object to the repayment or reorganization plan if you feel the debt owed you is not being treated fairly, says Ring. If you believe some type of fraud is being committed, you can make that accusation—if you have proof to back it up.

7. Review Any Proposed Repayment Plan

For the first 120 days, the debtor has the right to come up with a reorganization plan. If the court-appointed trustee decides the plan is workable, it’s sent out to all the creditors for review. For the plan to be approved, the debtor needs to have the consent from more than 50 percent of the total number of creditors and from more than two-thirds of the debt owed. Look at the disclosures to see how the debtor plans on paying each of the creditors.

8. Follow PACER (Public Access Court Electronic Records)

This allows users to obtain case and docket information from bankruptcy courts online. You can create a user name and password to look up what is essentially public information. You can see for yourself what is going on with a bankruptcy filing, bypassing the need for an attorney.

Dig Deeper: Case Study: Was Bankruptcy the Answer?

9. Protect Your Business Upfront

Get a deposit, collateral, or a third-party guarantee from your clients. For instance, an entrepreneur can use a security agreement and a Uniform Commercial Code 1 form to insure his or her receivables. When extending credit to your client, you can negotiate a security agreement, which means in effect you are placing a lien against an asset of the company (e.g., piece of equipment). You can file a UCC-1 form with your state or county. Should that client file bankruptcy you are not guaranteed payment; however, if you have a UCC filing it puts you further ahead on the line of other creditors that are trying to collect.

10. Conduct Credit Checks

Before you go into business with a company do a background check or a credit check if it’s a consumer. Ask to see cash-flow statements to make sure everything is fine. Conduct routine credit checks or take note of any behavioral changes among clients or customers. For instance, “you may see payments are coming in slower than usual, so a client who paid on time is now paying you 90 to 120 days past due. This is a major warning sign,” he adds. Protect yourself contractually; meaning, draw up terms that specify if accounts go unpaid after 90 days, it will be considered a breach of contract. You can sue and take that client to court immediately.

11. Get Paid Early to Avoid Danger

Make it a habit of getting paid on time. In general, a business should not be 60 days in arrears on a major contract. Consider giving clients discounted fees for paying earlier. It is common in many lines of business to offer cash discounts—a reduction in the amount of a bill if it is paid early. For example, 3 percent if paid within 10 days, 2 percent in 30 days, and net regular terms for 60 days. Having a client declare bankruptcy is a risk you take in business, but if you get paid earlier or on time, there won’t be so much money outstanding if they do file.

Also, talk to your attorney or accountant about taking a deduction for the bad debt on your taxes. If you miraculously manage to recoup any portion of the money owed, then you can claim it as income later on.

Credit Reporting and Bankruptcy: Is Your Post-Discharge Credit Reporting Inviting Trouble?

11.15.2010

Diane P. Furr

Lisa P. Sumner

In difficult economic times, debtors’ attorneys closely review credit reports looking for potential legal claims against creditors. Long after a debtor has been discharged from bankruptcy, creditors can find themselves defending claims of improper credit reporting. A recent case from the Eastern District of North Carolina illustrates the trouble facing creditors who furnish incorrect reports of discharged debt. See In re Adams (Bankr. E.D.N.C. 2010). The Adams debtors filed a chapter 13 petition in 2008 and received a discharge after completion of plan payments. A few days after the discharge, the debtors filed a motion seeking a declaration from the bankruptcy court that all payments due on their residential mortgage were current. The mortgage lender was served with this motion but filed no response. The bankruptcy court entered an order declaring the mortgage debt current. Thereafter, the debtors applied to refinance their mortgage. They were turned down when their existing lender provided the prospective lender with a payoff statement and loan history containing serious errors. The report stated that the debtors’ residence was in foreclosure, which was not true. Despite repeated demands, the lender failed to correct the errors. The debtors then re-opened their bankruptcy case and filed a motion asking the court to find lender in violation of the discharge injunction and in contempt of court. The bankruptcy court found the lender in contempt for willfully, knowingly and flagrantly violating the discharge injunction and the order finding the mortgage current, and awarded compensatory and punitive damages to the debtors. The debtors suffered actual harm because they were unable to refinance their home at market rates, incurred attorneys’ and appraisal fees in their refinancing efforts and their credit was damaged by the false negative reporting. Factors significant to the damage award included: (1) it had been 21 months since the debtor filed the motion to show cause, during which time the lender took no action to correct its credit reporting; (2) even though the lender stated that it would update its credit reports, it still provided no proof of doing so at the show cause hearing in 2010; (3) from 2007 to well into 2009, the lender was still reporting the debtors’ mortgage as being in foreclosure; (4) the lender had assessed foreclosure fees and costs and applied the debtors’ payments to those costs instead of to the loan principal; and (5) the lender did not acknowledge the seriousness of the matter. The court reduced the interest rate on the debtors’ loan from 10.8% to 6%, thereby reducing the loan balance by $10,000. The court awarded punitive damages in the amount of $66,300, which represented a fine of $100 per day beginning when the lender was served with the debtors’ motion and ending when the lender complied with the contempt order. The lender was ordered to prove to the court, debtors’ counsel and the chapter 13 trustee that it had contacted all three major credit reporting companies and clarified that the debtors were in bankruptcy and the debt was current from date of discharge to the date of the corrected report. In addition, the lender was ordered to pay attorneys’ fees for the chapter 13 trustee and debtors’ counsel, including appraisal expenses incurred by the debtors. Finally, if the lender failed to comply within 14 days of the contempt order, the punitive damages were to be applied as a setoff against the amount owed on the mortgage debt, effectively eliminating the loan balance.

Do Bankruptcy Courts Impose Uniform Post-Discharge Credit Reporting Rules?

Bankruptcy courts have awarded damages due to incorrect and misleading credit reporting under numerous legal theories, including violation of the discharge injunction and automatic stay provisions of the Bankruptcy Code, as well as violation of the federal Fair Debt Collection Practices Act (“FDCPA”) and Fair Credit Reporting Act (“FCRA”). However, application of these laws varies within the court system. The bankruptcy discharge injunction “operates as an injunction against the commencement or continuation of an action, the employment of process of an act to collect, recover or offset any such debt as a personal liability of the debtor, whether or not such discharge is waived.” One line of bankruptcy cases has held that in addition to the erroneous credit reporting, a creditor must perform some other overt act to collect the discharged debt in order to violate the discharge injunction. These courts reason that the Bankruptcy Code does not require a creditor to take an affirmative step to notify credit reporting agencies that a debt has been discharged. These courts do not view the mere carryover of the pre-discharge debt on the credit report as an attempt to collect the debt. A contrary line of cases rejects the requirement of an additional overt act by the creditor, and holds that incorrect credit reporting alone can be a violation of the discharge injunction. Some courts have inferred an attempt to collect from a creditor’s refusal to update its credit reporting post-discharge. Courts have held that the failure to report a debt as “discharged” or “individual in bankruptcy” with a “zero” balance on the account after a debtor has had his debt discharged may constitute a violation of FCRA, the discharge injunction or both.

Lessons for Creditors

In the face of inconsistent authority, creditors in all jurisdictions are best-served by taking a conservative approach to credit reporting to minimize the risk of compensatory and punitive damages claims by debtors. Particularly when a debtor requests such action, a creditor should consider updating the report of a discharged debtor to reflect the discharge and a zero balance due, or to reflect the status of the debt as otherwise ordered by the Bankruptcy Court. The debtor may be willing to sign a waiver of any potential claims of credit-reporting violations in exchange for such action by the creditor, resulting in a relatively quick, easy way for both sides to avoid costly litigation

If one wants to file chapter 13 bankruptcy, one of the prerequisite is bankruptcy confirmation. The bankruptcy confirmation is also known as reorganization. The plans for repayment of debt need to be submitted at the time of filing the bankruptcy or within 15 days of application filing. The purpose of the hearings for bankruptcy confirmation is to decide whether the reorganization plans are according to the US code of regulations. The amount and the schedule of payment are documented in the chapter 13 payment plans. There is a monthly or biweekly schedule for payments and this schedule is presented for the court trustee. The trustees dispense the payments among the creditors on the basis of terms mentioned in the reorganization plan. After the petition for filing chapter 13 bankruptcy, notification is issued to the creditors. After this, there is scheduling of 341 creditors meeting. This facilitates the face to face meeting of the creditors and debtors. The debtors get a chance to demonstrate the financial situation. They also get a chance to repay as much as they can. On the other hand the creditors can reduce the rate of interest, reduce the debt, accept a lump sum, reduce or eliminate the late fees and penalties. At the 341 creditors meeting, the debtor has to provide genuine information under an oath. If the information furnished by the debtor is proved to be false, the debtor can be jailed and lead to the denial of bankruptcy petition. The filing for bankruptcy information has been made more cumbersome by the new laws that were enacted by the Congress in the year 2005. According to the Bankruptcy Abuse Prevention and Consumer Protection Act there are provisions that make it compulsory for the debtor to repay a part of the debts with the help of plans for reorganization or bankruptcy confirmation. It is very difficult to file for chapter 13 bankruptcies without a legal counsel or a bankruptcy lawyer. Most of the bankruptcy lawyers charge high to get over with the costs of litigation. The “Means Test” compares the income of the debtor with the median income level of the state. The amount of repaid debt is determined by the BAPCPA through this “Means Test.” If the income of the debtor exceed the median level, the debtor can file Chapter 13 bankruptcy but if less, the debtor has to file chapter 7 bankruptcy. The duration of chapter 13 bankruptcy plans lasts from 3 to 5 years.

The stigma of filing for bankruptcy remains persistent despite the changing face of bankruptcy. Because of it, many ill conceived notions are never really rectified by bankruptcy courts. Here is what you need to know that bankruptcy courts will not tell you.

Bankruptcy filers come from all socioeconomic backgrounds
Bankruptcy can happen to anybody. There are many reasons why people file for bankruptcy and contrary to common belief, not all bankruptcy filers are poor as evidenced by the likes of Donald Trump, who has filed for bankruptcy before. Many factors can be out of your control. During an economic downturn losing one’s job without a quick recovery and hopes of finding a new one can force previous high earners into bankruptcy. Sudden illness can also be a factor for having to file for bankruptcy. So are bad investments, slumping real estate values, divorces and many other unexpected life changes.

Not all bankruptcies are created equal
It is important to understand that each bankruptcy case is different. Also, there are certain debts that will not be discharged in any bankruptcy filing such as child support, student loans or outstanding taxes. So be sure to know the advantages and disadvantages of filing for bankruptcy Chapter 7 versus Chapter 13 and how the law will pertain to your particular case. For example, if your assets include property you may be better off filing for chapter 13 if you intend to continue making payments on your home in order to keep it.

Not all is lost
Filing for bankruptcy does not necessarily mean that all assets including your home must be liquidated in order to pay off creditors. In certain circumstances you may have more leverage than the bankruptcy court will tell you. For example, if the mortgage amount of your home is higher than the current value of the home, creditors will most likely not be interested in seizing your home which leaves the opportunity open to keep it and continue making payments on it. Be sure to discuss the homestead exemption with your lawyer. The homestead exemption states, that if the equity in your primary residence is below a certain threshold (this varies from state to state), you may keep your home.

Your credit score is not ruined forever
Although filing for bankruptcy will lower your credit score and will stay in your credit report for ten years, not filing for bankruptcy and missing payments on debt could be far more damaging. Once you file for bankruptcy you have a chance to restore your credit immediately by making on-time payments on loans whereas struggling to make ends meet and not being able to afford payments to pay off debt can send you into a downward spiral indefinitely affecting your credit score negatively.

Prioritize debtors – family and friends come last
Although you may have the best of intentions by paying back your family first, this is a big misstep and will backfire since all property and monies transferred within a year of filing for bankruptcy to relatives, acquaintances, business partners or friends are recoverable by the bankruptcy trustee. Remember, all assets and everything that was sold or transferred within two years of filing bankruptcy must be listed in the bankruptcy filing. Hiding assets or lying about property can have your case dismissed and worse, land you in jail for perjury.

Bankruptcy is a new beginning – not the end
Going through bankruptcy is an emotionally straining process which affected filers paint as a hopeless and shameless act. It does not have to be. It is important to educate friends and family so they can understand what you are going through and provide emotional support to you. If you can retain a positive attitude and look at the benefits of filing for bankruptcy, you will come out of it emotionally stable knowing that this will be a new beginning and nothing to be ashamed of.

FREE BANKRUPTCY REVIEW 1-718-263-6800

Members of the Obama administration are understandably dismayed by the soaring number of consumer bankruptcy filings hitting the United States. According to the latest numbers from the American Bankruptcy Institute, consumer filings are scheduled to hit their highest level this year since 2005. Such filings, of course, are devastating for consumers; depending on the type of bankruptcy protection for which consumers file, this negative mark stays on their credit reports for seven to 10 years. During this time, consumers will struggle to borrow money or qualify for even the highest-interest-rate credit cards. But bankruptcy filings are bad for the country, too. When too many consumers are standing before bankruptcy judges, there are too few willing to spend big bucks on flat-screen TVs and new cars. And the country’s economy depends on this discretionary spending.
Many critics point to the country’s mortgage lenders and bankers as one of the big reasons for the increasing number of consumers seeking bankruptcy protection. Ever since the Great Recession’s height, mortgage lenders have enacted far stricter lending requirements. This hurts homeowners who want to refinance their existing mortgage loans into loans that come with lower interest rates. Because lenders are being so strict – boosting their debt-to-income, credit score, and equity requirements – far too many struggling homeowners aren’t able to qualify for refinances. They then can’t nab today’s historically low interest rates, something that would dramatically reduce their monthly mortgage payments. By reducing these payments, these homeowners might have been able to afford their bills and avoid filing for bankruptcy protection.
Government Programs Failing
The federal government in 2009 introduced its Home Affordable Refinance Program, better known as HARP, to deal with this problem. HARP provides mortgage lenders financial incentives if they’ll refinance the home loans of homeowners who don’t have the traditional 20 percent equity in their homes. Unfortunately, HARP has turned out to be a massive failure. Not nearly enough lenders are approving HARP refinances, and far too many homeowners are falling even deeper into debt because they can’t lower their monthly mortgage payments.
What Next?
Some economists have argued that the economy won’t really improve until the banks and lenders finally loosen their requirements. No one is saying that banks have to go back to the days of lending anyone with a pulse hundreds of thousands of dollars, but there does need to be a happy medium. Until banks start passing out loan money more freely, and until they approve more homeowner refinances, we can all expect the country’s depressing bankruptcy numbers to continue to rise.




Most of the debtors might not be completely aware regarding who may file chapter 7 bankruptcy. In the US, bankruptcies are commonly filed under chapter 7, 11 and 13. And during the first half of 2009, there was a drastic increase of 33% when it came to personal bankruptcy filings. Most of the debtors might not be completely aware regarding who may file chapter 7 bankruptcy. In the US, bankruptcies are commonly filed under chapter 7, 11 and 13. And during the first half of 2009, there was a drastic increase of 33% when it came to personal bankruptcy filings. Remember, the new bankruptcy rules and regulations effective from 2005, have imposed restrictions on chapter 7 qualifications.
Most of the debtors might not be completely aware regarding who may file chapter 7 bankruptcy. In the US, bankruptcies are commonly filed under chapter 7, 11 and 13. And during the first half of 2009, there was a drastic increase of 33% when it came to personal bankruptcy filings. Remember, the new bankruptcy rules and regulations effective from 2005, have imposed restrictions on chapter 7 qualifications. This has in no way deterred debtors whose first personal bankruptcy choice is still remains chapter 7 liquidation of assets. Nevertheless, when you are out to consider a chapter 7 bankruptcy filing, it could be important for you to have a thorough understanding of new bankruptcy laws that apply to chapter 7 bankruptcies. This could actually enable you to know how to file for bankruptcy under chapter 7 successfully.
Typically, under chapter 7 eligible debtors can get all their assets liquidated for repaying their creditors. However, in accordance with new guidelines a personal bankruptcy filer needs to meet few critical requirements that have been stipulated by the new bankruptcy law of 2005. To that effect, one who is considering filing a bankruptcy has to be a legal resident of the U.S. and undergo the Means Test to determine eligibility for chapter 7 personal bankruptcy. This is a complicated test and therefore, if you are out to file for bankruptcy, you need to consult a competent bankruptcy attorney who is well versed with the new bankruptcy rules and regulations as well as filing procedures. This could be essential as failure in passing the chapter 7 bankruptcy Means Test could make you completely ineligible for a chapter 7 bankruptcy.
To be eligible for chapter 7, the first thing is that your existing monthly income needs to be either less than or equal to median household income for a family of similar size prescribed in your state. If your current monthly income is more than the average income determined, you could be required to pass the Means Test for determining your eligibility on filing for a chapter 7 bankruptcy. The primary aim of the Means Test is to know whether you have any disposable income left for paying back your debtors. The process involves calculating the difference between monthly income and IRS permitted expenses besides debt payments. That is why you need to have proper bankruptcy information prior to filing a chapter 7. If you have some surplus income that is above a pre-subscribed limit, automatically chapter 13 rules would apply to your case.

The House Judiciary Committee approved legislation aimed at helping Americans keep their homes through bankruptcy. The Helping Families Save Their Homes In Bankruptcy Act of 2009 to give courts the power to make mortgage loan modification to bring mortgages in line with underlying home values. For families in distress, this is a much-needed addition to government loan modification. And considering the realistic alternatives, it is fair to all concerned. Federal Loan modification Program help is the lifeline many are depending on.
This bill represents one of the most tangible and productive steps we can take to limit the fallout from the real-estate depression that has been sweeping the nation. While it is not the entire answer to the economic crisis, it is a common-sense and practical approach to stopping a downward spiral where foreclosures also depress nearby home values and thereby hurt other homeowners. It offers loan modification when it is most needed. This spiral is not helping anyone.
Some argue that we are acting too quickly in providing the loan modification requirements to bankruptcy, and that we should delay my legislation to give homeowners and lenders more time to accomplish mortgage loan modification on a voluntary basis outside of bankruptcy.
But the evidence shows that such loan modification doesn’t work. For one thing, many of the servicers who control the mortgage loans claim they are not legally permitted to agree to voluntary mortgage loan modification.. And even when they are legally permitted to agree, their financial incentives are stacked in the direction of foreclosure.
For more than three decades, the bankruptcy code has permitted the very kind of court modification we are considering today, for every other form of secured debt, including loans secured by second homes, investment properties, luxury yachts, and jets. For over 20 years, this very kind of modification has been available for home mortgages already — if the home is a family farm. There is no indication that this has in any way increased the cost of credit for any of these kinds of loans.

Should you be experiencing a financial problems and fear losing the house, understand you aren’t alone. Just like millions of other homeowners, you might have lost a job or suffered a pay cut, your adjustable rate mortgage may have reset and you can’t afford the payment, or falling property values mean you can not refinance. It might seem that bankruptcy, foreclosure and loss of your abode is inevitable. One answer doesn’t deal with every scenario, and you will have possibilities that include keeping your home while you work through financial challenges. Explore all options before concluding that all will be lost in foreclosure or bankruptcy proceedings.

Your mortgage payment, that may include amounts for property insurance and taxes, is perhaps the largest single bill you spend each month. The check covers your housing needs, also it symbolizes an investment for most homeowners – you’ll find financial and emotional aspects at the same time. If you can’t make your home loan repayments, you’ll want to have a hard review of your situation, financially and otherwise, and come to a decision on an option that’s good for you. Consulting a bankruptcy or real estate lawyer in your area can help with your decision-making process.
Consider All Options
This is a set of options and factors you will have to consider:
• What is the level of your financial crisis – is there a principal element, like a job loss, or is paying one particular debt at the bottom of the financial problems, like medical bills or your mortgage?
• Is your financial crisis short-lived, such as a short period of unemployment or underemployment, or is there a lasting change, such as a disability that will affect your earning power on a long-term basis?
• How much equity is in your house?
• How does the value of your house compare to the debt it secures – do you owe more than the house is worth?
• How does your current home meet your housing needs – is it the right size, what are the ongoing maintenance and ownership costs, and does the location meet your lifestyle, family, and employment needs?
• Is home ownership the best way to meet your housing needs? Do you have the abilities and resources needed to own the place in which you currently live?
• If you want to keep your home, have all options for loan modification been explored?
• If you don’t want to keep your home, have you tried to sell it, either through conventional means or through a short sale?
• Is your lender willing to pursue foreclosure alternatives, such as accepting a deed in lieu of foreclosure?
• Have foreclosure proceedings started, and if so, how far along is the process?
• Would you qualify Chapter 7 or Chapter 13 bankruptcy
relief?
• Do you have other debts, and could those debts be discharged or restructured through bankruptcy?

Making Home Affordable Relief
In advance of reaching the final stage of bankruptcy or foreclosure, find out if refinancing or changing your mortgage is an available option. Reacting to widespread economic crises suffered by lots of homeowners, the Making Home Affordable program offers relief. Financialstability.gov is a government Website that has information on eligibility as well as the process for getting help. The Internet site has an interactive tool for helping see whether you’re a candidate for relief.
Making Home Affordable has two kinds of relief:
1.Home Affordable Refinancing for homeowners who have loans owned by Fannie Mae or Freddie Mac. This program targets people that haven’t got the capacity to refinance their mortgages at today’s historically low rates because of decreasing home values, leaving them “underwater” with a mortgage balance that’s higher than the house value
2.Home Affordable Modification for homeowners who can’t afford their mortgage payments because of loss or decrease in income, increased mortgage rates or who don’t get a Home Affordable Refinancing. The program aims to modify your mortgage terms and bring the payment within a low priced range
Start by contacting your lender or loan servicer, but be patient and persistent. These programs are new, and lenders must work to quickly implement the programs and the demand is high. Despite the fact that you don’t qualify for these programs, work with your lender to pinpoint a solution. Avoiding foreclosure is usually best for all parties.
For help with Queens County New York Bankruptcy, call a bankruptcy attorney in Queens New York. A bankruptcy attorney in Queens New York could give you the help you need.