Nassau County Bankruptcy Lawyer

Bankruptcy laws are designed to provide relief to a consumer who is overwhelmed with debt.  In essence, they allow hardworking and honest consumers to have a fresh financial start.  In a Chapter 7 bankruptcy, most debts are wiped out.  In a Chapter 13 bankruptcy, debts are most often paid off over a period of time through a court authorized payment plan.  A bankruptcy is commenced with the filing of a bankruptcy petition in Federal Bankruptcy Court.  Once a petition is filed, an Automatic Bankruptcy Stay is triggered, bringing creditors to a halt.  Once the Stay is triggered, you will have immediate relief from your creditor's harassing phone calls, mail, and threats of law suits and garnishments.  The filing of a petition will also stop a foreclosure on your home, giving you the time to resolve your debts over time or have debts eliminated altogether so you can maintain your home.

A Chapter 7 bankruptcy is a powerful way for someone to start their financial life over again.  If approved, Chapter 7 will relieve the debtor of the debt in their lives that has caused them great financial and emotional distress.  Most often, Chapter 7 bankruptcy is filed by someone who is looking to discharge unsecured credit debt, back rent, utility bills, debts owed on repossessed or surrendered vehicles, and other debts.  Also, those looking for Chapter 7 relief have experienced a triggering event that has placed significant financial strain on their lives such as a loss of employment, death of a family member, or a serious medical condition.

Chapter 13 is one form of legal debt reorganization.  Similar to Chapter 7, it is a legal process filed in Federal Court which starts with the filing of a bankruptcy petition and schedules.  However, unlike Chapter 7, Chapter 13 does not discharge all of your debts.  Rather, it allows you to repay some or all of them over a three to five year time period.  As some debtors may not qualify for Chapter 7 due to income or assets, Chapter 13 is elected to provide relief to a debtor over a period of time.

Typically, people who fall behind on home and car payments elect Chapter 13 bankruptcy in order to prevent foreclosure or repossession while gaining the much needed time to repay these debts, this chapter provides a clear and structured path to rehabilitate your debts and past due payments.  Unsecured debts such as credit cards are often repaid through Chapter 13 bankruptcy, but for far less than what is owed on these debts.

As long as the debtor completes the reorganization plan provided by this chapter, their remaining balances on their unsecured debts will be discharged. Bankruptcy laws require a debtor filing for Chapter 13 relief to undergo required credit counseling before a formal filing of Chapter 13 bankruptcy can be made. Furthermore, the person filing for Chapter 13 bankruptcy must be employed or have some source of reliable income in order for the court to approve their plan.

Business Bankruptcy

Any formalized entity of business can file for Chapter 11 bankruptcy in accordance to United States Bankruptcy Code Title 11, Chapter 11 and under the terms of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Included in the entities able to reorganize and restructure under Chapter 11 bankruptcy include:

• Sole Proprietorships

• Partnerships

• Limited Liability Partnerships

• Limited Liability Corporations

• Corporations

• Co-operatives and Non-Profits

When utilizing a Chapter 11 restructuring, companies face the prospect of continuing business in light of current debt obligations. For executives and employees, the possibility of maintaining jobs, an income source, and retaining all assets used in producing this income are all retained. Furthermore, companies have been known to emerge from Chapter 11 bankruptcy and regain full control of their enterprise once again rather than full liquidating their assets. A bankruptcy court will supervise a company under Chapter 11 bankruptcy, manage the organizations debt, and contract obligations. Under the guidance of federal law, bankruptcy courts can discharge certain debts and contractual obligations in certain circumstances. In other instances, creditors will entirely take over a company in the event the organization's debts outweigh the current assets.Under the mediation of the bankruptcy courts, creditors and debtor companies meet to discuss plans for reorganization and restructure. Typically, a debtor company has a specific period to offer a plan of reorganization, which will include methods to satisfy existing debts, cuts in expenditures, and potential incomes. Creditors will then vote to agree or disagree on the plan, or if no plan is presented, creditors have the opportunity to present their own agenda. The court will decide whether each party is receiving treatment in the fair and equitable interest of resolving the matter at hand.