Solomon Lawyer

FOR IMMEDIATE RELEASE

February 28, 2012

New York, New York – Financial difficulties can be caused by a myriad of issues.  In some cases poor spending habits and a lack of financial knowledge can lead to overwhelming debt.  Often, however, the crisis is caused by circumstances beyond your control; a sudden reduction in income, crippling medical expenses, divorce or some other personal or professional upheaval.     

“Bankruptcy can be a devastating experience which takes a toll financially, personally and emotionally,” remarks Rob Solomon, an experienced bankruptcy attorney in NY.  “People come into the process feeling hopeless.  What they need to realize is that there is life after bankruptcy, and this is something the attorneys at our firm try to emphasize with each client.”

In 2005 Congress passed legislation reforming the US bankruptcy laws in an effort to discourage abuse of the system while continuing to offer an opportunity for debt relief and restructuring.  Many of these changes have made the process increasingly difficult by shifting more responsibilities onto the debtor.  “The courts now require the clients to not only prove they do not have the ability to pay back the debts, but they must also show that they have explored all other financial alternatives prior to filing for bankruptcy,” Mr. Solomon explains.   

One of the major reasons people file for Chapter 7 relief, which results in a cancelation of debt, is because of an overwhelming amount of high interest credit card and consumer debt.  A means test was added in 2005 which states that if a petitioner has an income higher than the average in his home state, his petition for complete debt absolution will be denied.  A bankruptcy attorney in NY can help you take the necessary steps required prior to filing to understand and fulfill the new obligations.  In addition, he will make an honest assessment of your income and liabilities in order to advise you which bankruptcy provisions are applicable to your case.

People who have a steady income but are behind on their debts and unable to catch up may benefit from filing for Chapter 13 restructuring.  This is a popular choice with those who are behind on their mortgage and hope to save their homes or who are unable to qualify for Chapter 7.  Many times the courts will allow you to keep your home under a repayment plan that stops the continual increase of penalties on currently late payments and incorporates a method for catching up a portion of the past due balance with each payment.  In addition, interest and most principal may be eliminated on consumer debt, making it possible to pay off the outstanding balances.  Mr. Solomon adds, “Many of our clients are now able to wipe out their second mortgage in Chapter 13 because their homes are underwater.  This allows them to keep their homes.” 

If you are considering filing for bankruptcy you should first contact a bankruptcy attorney in NY.  Eliminate some of the stress from this turbulent time by employing a professional advocate to plead your case.  “In our law firm,” Mr. Solomon states, “our goal is to reduce the greatest amount of debt while helping you retain the largest amount of assets.”

About Robert H Solomon

Robert H. Solomon, PC, received his undergraduate degree in Economics from the University of Pennsylvania with honors and his JD degree from Duke University School of Law.  He has built a firm on Long Island, NY of qualified attorneys offering NY bankruptcy assistance since 1982.  Listed in Marquis Who’s Who in American Law and Who’s Who in America, Robert H. Solomon and his associates help individuals and businesses with bankruptcy, repossessions, foreclosures, mortgage modifications and debt settlements. For more information, visit www.solomonlawyer.com.

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.

Most people encounter financial difficulties from time to time, but what happens when the debt becomes overwhelming?  Robert H. Solomon, a bankruptcy attorney on Long Island, NY, lists the following warning signs of serious financial problems.

Ø  You use credit cards to pay for groceries, utilities, rent or other necessities.

Ø  You struggle to make the minimum payments on credit cards.

Ø  You borrow money from one card to make the payments on another card.

Ø  You let your phone go to voice mail in order to avoid creditors.

Ø  Your credit cards are maxed out.

Get Help Now

The days of easy bankruptcy filing passed with the Bankruptcy Reform Act of 2005.  While consumers are still allowed to represent themselves in court, they are strongly encouraged to seek assistance from an attorney.  In order to reduce the number of bankruptcies the law now requires debtors to explore other financial alternatives first. Failure to do so will result in your petition being denied.  NY bankruptcy assistance also includes providing access to the type of credit counseling required by the court before a person can file for relief.

Understanding Bankruptcy Options

Another change made by the Bankruptcy Reform Act of 2005 was adding the “means tests”, or income limits, to Chapter 7 bankruptcy.  Chapter 7 is a complete discharge of your debts without any repayment to your creditors.  People who file for bankruptcy are hoping to get all of their debts canceled while retaining all of their assets.  However, if your income exceeds certain minimums, you may not to file Chapter 7.  Instead, you may qualify for Chapter 13 protection.  Chapter 13 is a court ordered debt consolidation, which provides the protections of Chapter 7 and discharge, but requires repayment of a portion of your debts over a 5 year period with no interest.  A bankruptcy attorney in NY will assess your income and expenses and show you what you qualify for under the law. 

While bankruptcy is a federal issue, individual states have set up their own asset exemptions.  An asset exemption protects property from being taken in Chapter 7 to pay debts.  For example, if you are in a trade the courts cannot take the tools you need in order to continue working.  In addition, a certain dollar amount is allowed for home equity, a vehicle, and some other items.  The exemption amounts vary between jurisdictions, so it is important to seek NY bankruptcy assistance in order to take advantage of all of the protections provided for in your area.

What Not to do Prior to a Bankruptcy

When a person is struggling to make ends meet, balance transfer offers appear tempting.  The consumer is given a new credit card and encouraged to transfer other card balances “interest free” for a limited period of time.  The prospect of paying off a high interest balance with a lower payment loan is inviting, but what frequently happens is that the consumer begins to charge up the card they just paid off in a frantic effort to keep up.  When a bankruptcy court sees this pattern it may suspect you of trying to defraud creditors and deny your petition.

Other behaviors which raise red flags include giving one creditor preferential treatment while ignoring other obligations or transferring property to family members in order to protect it from being sold by the court to pay debts.  Unnecessary credit card purchases and large cash advance loans acquired within the months leading up to bankruptcy filing can also result in a fraud charge.

Another mistake sincere debtors make is to empty their 401Ks and other retirement accounts to pay off consumer debt.  If a person is headed for bankruptcy there is no reason for them to use all their retirement money which is generally considered exempt property. Before doing something like this speak with a bankruptcy attorney in NY to determine what decisions will leave you in the best financial situation.

I am so excited to be able to share with my clients and friends, useful information, thoughts, insights and  (perhaps) ramblings regarding bankruptcy.  This will be the first I hope of many communications which will lead to conversations about important topics facing us all.  These are difficult times and it is my hope that through this medium, we  may face in a constructive way  overwhelming debt and solutions through bankruptcy and bankruptcy alternatives.  My guiding premise, is that no one means to get to this point and no one arrives here overnight.  Bankruptcy has a bad rap.  But the truth is that it is a fundamental right and  constitutionally guaranteed by the founding fathers who  knew the opportunity to get a fresh start is as fundamental liberty. It is my job to help my clients get a fresh start through filing for Chapter 7 and Chapter 13 of the Bankruptcy Code.  While I have been helping people for thirty years, I view today as a new beginning.