The Law Offices Of Gus Michael Farinella

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Bankruptcy Attorneys Serving New York City, NY & Surrounding Areas

Bankruptcy is an important weapon in every debtor’s arsenal. It can allow a fresh start when a person becomes overwhelmed by debt. Becoming heavily burdened by debt can happen for many legitimate reasons, and that is why the U.S. Constitution provides for a Bankruptcy Code. In an effort to meet every debtor’s needs, the law provides for many types of bankruptcy. Each type has a specific set of goals.  The U.S. Bankruptcy Code provides types of bankruptcy protection for consumers who experience an overwhelming debt; see (Which Chapter of Bankruptcy is Right for Me?).  While personal bankruptcy has the effect of canceling most or all of your debt, if not properly filed and litigated, risk of loss of property & other assets, even income, is greatly increased. This is why an attorney should be retained to get the job done in the most efficient and expedient manner.

Which Chapter of Bankruptcy is Right for Me?

Chapter 7

The most common consumer bankruptcy is the Chapter 7 Bankruptcy. It is often called a “Fresh Start”. The goal is to relieve you of your debts in order to allow a fresh start & a new beginning. A person can file for Chapter 7 Bankruptcy once every 8 years. This form of bankruptcy is designed for individuals with limited assets and those who do no make enough money to pay back their creditors as part of a repayment plan. In most circumstances, a Chapter 7 filing will not change a debtor’s life except for the fact that they will not have to pay back their debts & their credit report will list the bankruptcy for 10 years. The Chapter 7 process begins when you retain an attorney, then you may contact your creditors and inform them you have retained counsel. You must them complete an individual briefing from a credit counseling agency and obtain a certificate of completion. Your attorney will prepare your petition upon your full payment of the retainer. After about 40 days you must attend a meeting consisting of you, your attorney, and a Trustee/Attorney appointed by the court to discuss your petition. Anytime after the filing of your case you must also complete a course on financial management before you can receive a discharge. 

Chapter 13

The second most commonly filed consumer bankruptcy is a Chapter 13 Bankruptcy. While a Chapter 7 Bankruptcy is for people with limited assets, a Chapter 13 Bankruptcy is designed for people with more substantial assets or income.


The debtor makes arrangements with the court to pay back all or a portion of the debt they owe over a three to five year period. It allows an individual to pay back the arrears on secured debts like a home mortgage, or a car loan, over time.

 

The major difference from a Chapter 7 is that the debtor makes an agreement to pay a fixed monthly amount to the Bankruptcy Court much like a consolidation payment based on income, expenses, and amount of debt. The debtor makes an agreement with the court (plan) and abides by that agreement. This chapter is normally used by people with homes, who have fallen behind on the mortgage(s). Like any bankruptcy filing, Chapter 13 STOPS foreclosure actions. This chapter is also used for student loans and taxes. It provides the debtor a more feasible way of paying back his/her debts. 

Frequently Asked Bankruptcy Questions

  • What is a discharge?

    It is a court order releasing a debtor from all of his or her dischargeable debts and ordering the creditors not to attempt to collect them. A discharge debt is one that you do no t have to pay. All debts of any type or amount including out of state debts are dischargeable in bankruptcy except for the types of debts that are by law nondischargeable. The most common types of non-dischargeable debts are: Child support and alimony, debts incurred by fraud, student loan debt (except for very limited circumstances).  Tax debts can be discharged in Bankruptcy if they meet several legal requirements. 

  • Will I lose any property?

    Usually Not. Certain property is exempt and my not be taken by creditor. In the vast majority of Chapter 7 cases a person is allowed to keep all of their property. We can tell you if you would stand to lose any property in a Chapter 7 case. If you own a home or a car you should speak to a lawyer for information on how bankruptcy would affect those assets.  

  • How does the filing of Bankruptcy affect collection and other legal proceedings that have been filed against me?

    The filing of a Bankruptcy automatically suspends virtually all collection and other legal proceedings pending against you, including foreclosure actions. 

  • Will bankruptcy help me if I have a frozen bank account or garnishments?

    Yes, if you file for bankruptcy a creditor must unfreeze you bank account. If your paycheck is being garnished bankruptcy can stop the garnishment in most cases and eliminate the underlying debt. The most common exception is garnishments for child support. 

  • Will I ever be able to get Credit again?

    A common fear of debtors is that they will never get credit again. This is simply not true. There are many ways that a debtor can rebuild his/her credit. Bankruptcy is just the beginning point.

  • What should I bring to my first consultation?

    • Last Two Years Income Tax Returns
    • A Copy of All Bills (Credit Cards, Medical,, Tax, Student Loans, etc.)
    • Latest Automobile Loan Statement
    • Latest Mortgage Statement 
    • Last 6 months of Payroll Stubs
    • Social Security Card & Picture I.D.,
    • Your Current Bank Statements,
    • Deeds, Mortgages, Titles, for you property

    We realize some of the above may not apply to you, please bring all of the documents listed above that apply to your situation. 


Tackle bankruptcy with the experienced attorneys at The Law Offices of Gus Michael Farinella. Call our team at (516) 326-2333 for more information!

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