Is Bankruptcy Right for You?

Do you feel overwhelmed with debt?

Are you afraid to answer the phone because of creditors?

Do you doubt that there is any way to recover? 

If this describes your situation, you may be wondering if bankruptcy is the right choice for you.  The laws regarding debt and bankruptcy are complex, and every person’s situation is unique.  Robert H. Solomon, considered by some to be the best bankruptcy lawyer on Long Island, has spent 30 years helping thousands of individuals and businesses to explore their options and to navigate the complex process.

Is Bankruptcy the Only Option?

Bankruptcy is a legal process that can result in a discharge of most debt, but it is not the only option for people who are struggling to pay their bills.  Other possibilities include negotiating debt reduction settlements out of court, arranging for a reduction in payments and credit counseling.  The key to getting your creditors to cooperate with these options is to seek bankruptcy help on Long Island early.  A bankruptcy attorney can examine the particulars of your situation and provide advice and assistance in choosing the best solution for your financial distress. 

Limits of Bankruptcy

Bankruptcy is governed by federal law and contains certain limits regarding the type of protection offered.  For instance, Chapter 7 bankruptcy provides a person a “fresh start” by cancelling the outstanding balances on qualifying debt.  Laws passed in recent years require debt education and means testing (income maximums) before a person is allowed to use Chapter 7.  If you need bankruptcy help in Long Island but your income is too high for Chapter 7, then you can usually find relief under Chapter 13.  The best bankruptcy lawyer on Long Island will help you determine what Chapter of the Code fits your situation before filing bankruptcy.  

Certain types of debts are not dischargable in bankruptcy.  For example, the courts are not going to cancel your mortgage and let you keep your house free and clear.  This doesn’t mean that keeping your home is impossible.  In fact, preserving your home may be the primary motivation for filing bankruptcy.  Under Chapter 13 individuals who have a steady income are given an opportunity to pay their bills and catch up on their mortgage arrears over 5 years.  They can even wipe out all or most of their credit cards and medical bills.  Other bills, such as unpaid child support or alimony, student loans and some taxes are not eliminated. 

Things to Avoid before Filing for Bankruptcy

If you are considering filing for bankruptcy, then there are certain activities which you need to avoid or the courts may consider your application an attempt to commit fraud.  For example, you may be tempted to get a cash advance during a crisis to cover rent, food or other necessities.  However, the courts are highly suspicious of any cash advances for more than $750 dollars obtained in the 90 days prior to filing for bankruptcy.  Additionally, credit card purchases or balance transfers $500 within 90 days of filing are also considered potentially fraudulent.  Most consumers are unaware of these rules, which is one more reason that seeking guidance before filing for bankruptcy is so essential.

What a Bankruptcy Attorney Can Accomplish

Bankruptcy help on Long Island will greatly reduce the stress in your life.  To begin with, your attorney can put an immediate stop to harassing phone calls.  He will analyze your assets and your budget to qualify you and protect you.  If you choose, he will help you keep the car you are making payments on by preparing and filing papers reaffirming the debt.  He will guide you through the complicated process, represent you at all hearings and prepare the documents required by the court.  At Robert H. Solomon P.C. the goal is to get as many debts canceled as possible while helping you to retain as many assets as possible. Peace of mind and a fresh start is our goal. If you need NY bankruptcy assistance, please contact us at www.solomonlawyer.com.