Bankruptcy Attorney for Long Island, NY

If you're a resident of Long Island in New York, you may have a plethora of attorneys to choose from when planning to file for bankruptcy. But who can you trust to put you first? The answer -- Kanzer & Associates.

Michael F. Kanzer & Associates, P.C. has helped Long Islanders file bankruptcy and discharge their debts for over 10 years. If your debts are creating hardships for your life, filing bankruptcy can help you clear or repay some or all of what you owe, so you can get back to living life without the harassing calls from creditors, and the past due notices and credit collection letters coming in the mail.

Give Kanzer & Associates a call today. A Long Island bankruptcy attorney you can trust to help you put your debts in the rear view mirror and turn your life around.

Avoid Credit Cards this Holiday Season

Christmas comes later next month and, for some, the ritual of running up a large credit card tab and spending the next year paying it off feels necessary. In this economy, however, and in the wake of changes to the Bankruptcy Abuse Prevention and Consumer Protection Act, we suggest re-thinking this strategy.

According to the new rules, debts to a single creditor totaling more than $550 for luxury goods or services can't be discharged in a bankruptcy. Should you find yourself in a tough spot after the holiday season -- so tough that you're forced to declare bankruptcy -- you might not be able to discharge credit card debt you've rung up for Christmas purchases. If you've accumulated thousands of dollars in Christmas credit card debt, you'll be paying it back no matter what.

Instead of relying on your credit cards this holiday season, instead try to save up enough money to do your Christmas shopping, or look into making your own gifts. The potential trouble over-spending could cause you down the line is not worth it.

Smart Christmas Spending

The holiday season is one that brings joy to the hearts of many. It's a chance to see and spend time with loved ones, eat cookies, drink hot cocoa and exchange gifts.

For some, however, this same season can be an extremely stressful period of time.

The pressure to purchase gifts for everyone can take its toll, and in some cases, can cause people to spend more money than they can possibly afford. They ring up astronomical credit card bills and spend themselves completely dry. Christmas shopping can become the catalyst that sparks an eventual bankruptcy, if you aren't careful.

Here are a few tips on how you can avoid holiday over-spending and eventual financial issues.

1. Establish your holiday shopping savings early and contribute to it throughout the year.
2. Buy gifts during the year, even when you're nowhere near Christmas.
3. Set a limit for your Christmas shopping.
4. Don't bring your credit cards. This forces you to shop only with the cash you've saved.

How to Take a Positive Approach into Bankruptcy

Bankruptcy can be seen as a low point in the life of the filer, but it shouldn’t be. One should think of the low point as being the event that has forced one into filing for bankruptcy, like illness or the loss of a job. If you’re filing for bankruptcy protection, you should see it as a fresh start, since this is the reason bankruptcy was first created.

The bankruptcy process gives the debtor the chance to clear away many overwhelming debts, freeing up income for secured debts like a mortgage. When discharged from bankruptcy, the petitioner will find less hassle from creditors.

If someone has filed because of an illness, divorce or unemployment, the last thing he or she needs is stress from collection agencies. To most of these folks, however, the filer is just a name, number and collection amount. However, debt collectors work everyday with people in default, so they become hardened.

If you switch your mindset from looking at a bankruptcy filing as a low or looking at yourself as a failure to seeing the process as a fresh start, you can let the filing take away a lot of stress. Let your bankruptcy lawyer help you remove the negative images you might associate with it. If you’re filing for bankruptcy, don’t think of it as a negative. Think about the fresh start it will provide and new hope you will have.

Should You File for Bankruptcy?

“Should I file for bankruptcy?” It’s a common question many are asking themselves, especially in these tough times. However, the answer can only be answered by the person who is thinking about filing for bankruptcy protection. Bankruptcy was designed to protect individuals and business from their creditors and discharge eligible debts, and after this discharge is entered by the court, the parties can go on without being burdened by debt and lead a productive life. Essentially, bankruptcy is able to provide one with a fresh start.

So, should you file for bankruptcy? First, you’ll need to weigh the positives and the negatives, and then make the soundest financial decision. When it comes to overburdening debt that has you thinking of filing for bankruptcy, there are no easy answers. You should meet with a bankruptcy attorney to discuss your income, expenses and assets to determine the best course of action, whether it’s Chapter 7 bankruptcy, Chapter 13 bankruptcy or not filing at all. Each option comes with its own sets of rules: Chapter 7 is to completely discharge all your debts, while Chapter 13 reorganizes them to make it easier to pay them down.

At the end of the day, the decision for file for bankruptcy is a personal one that must be made by the filer, and should not be taken lightly. How the party goes about the process depends on income, expenses and assets, and these are all different, which is why it’s important one seeks the advice of a competent bankruptcy lawyer.

Need to get in touch with a bankruptcy attorney in Brooklyn? Contact the experts at Kanzer & Associates by visiting www.KanzerLaw.com.

Bankruptcy: Don’t Let Credit Card Debt Overwhelm You

If you’re constantly in the financial red because of credit card bills, then filing for bankruptcy might be an option to consider. It can help many persons in similar situations, but before you phone up the first bankruptcy attorney you find, you should know about the benefits and disadvantages to filing for bankruptcy because of credit card debt.

Advantages

• You can learn sound financial tips that can help you in the future.
• You will be able to get out of debt in a fast manner.
• You can stop harassing creditors from constantly calling you.

Disadvantages

• You will not be allowed to use your credit cards and not be able to apply for new cards for a while.
• You will have to attend credit counseling classes in order to obtain certificates of financial education.

You have the ability to file the paperwork yourself, but you should contact a bankruptcy lawyer. If you need a bankruptcy attorney in Brooklyn, then get in touch with the experts at Kanzer & Associates by visiting www.KanzerLaw.com.

Bankruptcy Rules

It can be a daunting and stressful process to declare bankruptcy, but knowing the rules and having on your side an experienced bankruptcy attorney can help lessen the pains.

Chapter 7 vs Chapter 13

Chapter 7 bankruptcy will write off most unsecured debts within 90 days of filing. The bankruptcy will stay on your credit report for 10 years, and while your debts are forgiven, you may have to sell off some property and those proceeds will be distributed to creditors.

Chapter 13 bankruptcy will establish a repayment plan (three or five years) to repay the debts. This will remain for seven years on your credit report, but you’ll get to keep all your property.

When does each make sense?

Chapter 7 can make sense if you no assets (house, car, etc.) to lose, but you may be forced to sell valuable belongings. Chapter 13 is recommended for those who fell behind on payments thanks to a job loss or medical problem, but can pay if given time.

Credit: What happens and how do I rebuild?

You’ll get a notation on your credit report of filing for bankruptcy. Your credit score will most likely take a hit, but how bad depends on what your score was prior to filing. This won’t be forever the case.

Rebuilding credit might be troublesome for filers, as credit got them into this predicament after all. To rebuild, you’ll need to make sure the accounts on your report are all at a zero balance. Then, get credit cards (consider secured ones) and pay them off every month. Another way to rebuild may be to ask a friend or relative if they’ll let you piggyback on their credit.

Don’t go into bankruptcy alone. Kanzer and Associates has a qualified New York bankruptcy attorney that can help you. Enlist our services today by visiting www.KanzerLaw.com. 

Bankruptcy Code

The federal bankruptcy code can be often hard to understand. It’s important (and in some cases required) that you hire a competent bankruptcy attorney who can guide you through the process.

Does bankruptcy code require my belongings to be liquidated?

Most of the filings are liquidations, and they come under Chapter 7. Chapter 7 bankruptcy usually involves the trustee to sell all non-exempt assets, and the funds made are distributed among the creditors. For individuals, the court might discharge any of the remaining debt. For businesses, the operation is shuttered.

What about reorganization?

Creditors often have a better chance for being repaid under Chapter 11 and Chapter 13. Chapter 11 bankruptcy is used more by businesses and those with high incomes or complex debts. Chapter 13 bankruptcy is more for individual consumers. Either way, debtors who file under these chapters agree to repay the debts according to a court approved schedule.

How about voluntary and involuntary bankruptcy?

Most of the filings are filed voluntarily by debtors. After you file, debt collectors are forbidden to contact you and repayment is decided by the court. Creditors, however, have the option of forcing the debtor(s) into involuntary bankruptcy, but this is done when a number of creditors petition the court, which will determine whether they are entitled to relief.

New York bankruptcy attorney Michael Kanzer of Kanzer and Associates can assist you with all these issues. Enlist his services today by visiting www.KanzerLaw.com. 

NY Bankruptcy Facts

If you’re thinking about filing for bankruptcy, keep in mind the following facts:

• Chapter 7 is debt liquidation, while Chapter 13 is debt reorganization
• If you’ve filed for bankruptcy for, it’s best to remember that certain waiting periods exist
• It IS possible to save your home from foreclosure and avoid having your car repossessed
• Debt will not just go away
• You will have the opportunity to improve your credit score and obtain credit

Need a NY bankruptcy attorney? Get in touch with Michael Kanzer & Associates by visiting www.KanzerLaw.com. 

NY Bankruptcy FAQ

Here are some of the questions we get about NY bankruptcy:

What is Chapter 7 bankruptcy?

Chapter 7 is known commonly as a straight bankruptcy or liquidation proceeding, where the debtor turns over all non-exempt property to the trustee to convert into cash distributed to all creditors. In most of these cases, the bankruptcy filer is without any assets, so this will give the person a quick fresh start.

What are the most common reasons for filing Chapter 7?

Unemployment is the most frequent, followed by large medical expenses, overextended credit and martial problems among other large, unexpected expenses.

What is Chapter 13 bankruptcy?

Chapter 13 is a reorganization type of bankruptcy filed by persons who want to pay off debts within three to five years. This appeals to those who have non-exempt property they want to keep, and is available only to those with predictable income sufficient to pay reasonable expenses.

Will I stop getting harassed by creditors?

By law, they have to cease once documents are filed. The creditors are prevented from continue or file any lawsuits or garnishees demanding payments.

Will my utilities be affected?

Electric companies and other providers of public utilities cannot take disruption actions, such as refusing or cutting off service, because you filed for bankruptcy. They may, however, require a deposit for future services.

NY bankruptcy lawyer Michael Kanzer can help you with all your bankruptcy matters. Contact his office today by visiting www.KanzerLaw.com. 

Bankruptcy: Things To Remember Before Filing

Filing for bankruptcy is a big step for anyone, and it’s not one that should be taken lightly. You don’t want to rush into the process with considering all the consequences. It will have effects on your credit, and there are effects that may not fit every debtor. There are several things you must remember when filing for Chapter 7 or Chapter 13.

Co-debtors

These are the people who have signed with you on a debt, like a mortgage or car loan, and are often close family and friends. If you’re filing for bankruptcy, these co-signers are now left in a tough circumstance, as they may be solely responsible for these debts.

Do you want to kill your debt as quickly as you can? Chapter 7 bankruptcy will assist in this effort, but your co-debtors won’t be protected, leaving creditors able to collect from them. You can protect your friends and family with a Chapter 13 bankruptcy repayment plan, but the downside is you are guaranteeing to creditors a 60-month schedule to pay to them your disposable income.

Playing favorites

If you have one debt that’s more overwhelming than the rest, it might be easy to play favorites. Maybe you have $10,000 in credit card debt that’s leaving you in the lurch, or you owe someone a huge loan. Unsecured creditors include credit card companies and those who lent you money with no collateral backing, like a car loan or mortgage.

Having a bankruptcy attorney in these situations is immensely important, as it will help you to avoid accidental fraud. If you decide not to include the huge loan in your filing, so it won’t be discharged, this could lead to your case being discharged. All your records will be reviewed, and there is nothing to stop you from repaying a discharged debt.

Non-discharged

If your aim is to get rid of all the debt you can, you must know what types of debts you have. Mortgage payments, for example, are secured debts and must be repaid. Other secured debts include taxes, student loans, child support and alimony, among others. If these make up the bulk of your debt, filing for bankruptcy won’t assist you greatly.

Need a New York City bankruptcy attorney? Get in touch with Kanzer & Associates by visiting www.KanzerLaw.com.  

Bankruptcy Advice - Keeping Your Car

One of the biggest reasons many don't file for bankruptcy is concern over losing their home or car. Your car is one of your most important assets. It gets you to and from work, directly assisting you in earning a living. To lose it would mean to lose the main tool toward your financial solvency.

Personal property exemption rules in New York changed earlier this year. The biggest change was applied toward real estate, but rules for properties like automobiles also changed, including how much equity in a car a person can keep, as well as whether the item is applicable in bankruptcy court.

Previously, if your automobile had no debt on it and you filed for bankruptcy, it could be liquidated. Now, the state offers more flexibility when it comes this asset and bankruptcy. In most cases, you will not lose your car when you file. Bankruptcy serves to help individuals recover from debt, while not losing the items for which they worked hard.

Every situation, however, is different. Bankruptcy attorney Michael F. Kanzer of Brooklyn NY will help you to keep your assets, while eliminating the debt weighing you down. Contact him today by visiting www.KanzerLaw.com and requesting a free bankruptcy consultation.

Michael F. Kanzer & Associates P.C. Can Legally Guide You Through a Divorce

It's never easy to go through a divorce. Divorce is a difficult and tedious process. It can be emotionally draining and difficult to understand. However, divorce attorney Michael F. Kanzer can help you. He has helped hundreds of New Yorkers receive a divorce, while retaining their dignity. Michael Kanzer protects your rights and security, and is sensitive to your needs as a parent.

If you live in Long Island, Brooklyn or Nassau County NY, Michael Kanzer should be the first divorce lawyer you call. Whether it's child support or separation, attorney Kanzer can help you get through this difficult time with the right security and piece of mind.

Contact us today at 718.769.7200 to set up a consultation. For more information on New York divorce, visit www.KanzerLaw.com.

Let Michael F. Kanzer & Associates, P.C. Help You Through Your Bankruptcy

In today’s struggling economy, bankruptcy is becoming an option for more and more people. According to the latest data from the U.S. Bankruptcy Courts, over 1.5 million people and companies as of March 2010 filed for Chapter 7, Chapter 11, Chapter 12 or Chapter 13 bankruptcy.

That’s over 200,000 more persons and business that filed as of the end of March 2008.

Times are tough and people everywhere are hurting. You probably know a few family members or friends who have lost their job or home to foreclosure.

Bankruptcy is a somewhat difficult and tedious process. It can be emotionally draining and difficult to understand. However, bankruptcy attorney Michael F. Kanzer can help you.

If you live in Long Island, Brooklyn or Nassau County NY, Michael Kanzer should the first bankruptcy lawyer you call. Whether it’s Chapter 7 bankruptcy or Chapter 13 bankruptcy, attorney Kanzer can help you get through this difficult time with the right security and piece of mind.

Contact us today at 718.769.7200 to set up a consultation. For more information on New York bankruptcy, visit www.KanzerLaw.com.

Paycheck Garnishment Explained

Much stressed is caused to people who are being chased by creditors. Certainly nobody wants to fall into debt and not be able pay their bills - but it happens and you have protections from those seeking payment from you.

One of the scariest terms people hear about is "garnishment". Most people understand that this means your employer is obligated by court order to take your paycheck and apply the funds toward your outstanding debt. However, many people are very unclear as to the specifics and limitations of this legal process. Most fear that their entire paycheck can be taken from them!

Fortunately, for you this simply is not true. Title III of the Consumer Credit Protection Act (CCPA) limits the amount of pay that can be garnished and is applicable in all states. The amount of pay that can be taken per week is dependent on what is called "disposable earnings". This income is the amount you get in your paycheck after taxes and other mandatory items are paid. For all deductions not stemming from bankruptcy, taxes or child support obligations, the maximum amount that can be taken is the lesser of 1) 25% of a person's disposable earnings or 2) the amount by which a person's disposable income is thirty times greater than the federal minimum wage ($7.25).

In short, if your paycheck per week is $217.50 or less, you can't be garnished. By extension, if your bi-weekly paycheck is $435.00 or less, you can't be garnished. If your weekly earnings are between $217.50 and $290.00, the amount above $217.50 can be garnished. Any pay above $290.00 would mean that 25% could be taken for garnishment. For example, if you make $750 per week, $187.50 could be taken at maximum. As you can see, your entire paycheck simply can't be taken from you. Plus, many people earn so little that they are immune from garnishment.

Further, tips are not subject to garnishment. Garnishment is only based on the wage paid by the employer in these instances.

However, if you owe money for child support, the picture is a little different. Public policy informs us that children should receive proper support even if this is detrimental to the owing adult. As such, 50% of a person's wage can be garnished if they are simultaneously supporting another child. If the person is not supporting another child, then 60% of the wage may be garnished.

There are also exceptions for taxes and cases involving bankruptcy that are beyond the scope of this article.
Finally, if you find yourself falling behind on bills or are being garnished, consult with a qualified attorney who can guide you. This article is not meant to be legal advice but is meant merely to provide a general understanding of the garnishment procedure. If nothing else, it should let you know that garnishment is not the financial Armageddon that so many fear it to be. It is certainly no fun, but you should still be able to meet your basic necessities.

Learn more about debt and bankruptcy issues by visiting Michael F. Kanzer & Associates, P.C. at the Brooklyn, NY location or the Westbury, NY location.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Michael F. Kanzer. Click for search engine optimization and search engine marketing or visit WebDrafter.com's Blog.

A Good Bankruptcy Law

Gov. David Paterson put New Yorkers first and the banking and debt collection industries second when he signed a bill that increases the value of property that people can retain when they declare bankruptcy or when creditors win judgments against them.

This sensible new law puts New York on a par with the rest of the nation. It allows people who hit hard times to keep at least the roof over their heads and the modest car that gets them to and from work.

New York already has a law that shields some debtor assets from creditors and bankruptcy trustees. But the actual dollar amounts in many provisions had not been updated since the 1980s, which means that the protections had seriously been eroded by inflation. Introduced by State Senator Eric Schneiderman, a Democrat of Manhattan, the new law increases the homestead exemption from $50,000 to either $75,000, $125,000 or $250,000, depending on the county of residence.

People who find themselves in deep financial trouble would also be able to keep one cellphone and one computer. The new law raises the value of an exempted automobile from $2,400 to $4,000 or $10,000 for a disabled debtor. The exemption would not apply in cases where the debt being enforced is for child support, spousal support, maintenance or alimony.

The Bloomberg administration argued that the automobile exemption would prevent them from towing some cars, which would make it impossible to collect outstanding traffic fines. The Senate responded by adding language that would void the exemption in cases where the municipality is the creditor. Members of the assembly have promised to do the same at the start of the next legislative session.

The new law will go a long way toward ensuring that bankruptcy or debt collection do not strip people of all they own, turning them into wards of the state.

A version of this editorial appeared in print on December 24, 2010, on page A22 of the New York edition.

For more information on bankruptcy or to request a free consultation, visit Michael F. Kanzer & Associates, P.C. of NY.

Filing for Bankruptcy - The Emotional Side

"I do not want to do this - why me?" or "I can't believe this happening." are common thoughts people have when they realize their debt burden is so great that bankruptcy is the only real solution. It can be a lonely and guilt ridden place to be.

There is much information to be found on the mechanics of filing bankruptcy but very few people take the time to consider the emotional impact that it can have on a person. If you are thinking of filing for bankruptcy, do not internalize the process as a negative reflection on yourself. Sure, nobody wants to go bankrupt but you might be there because of reasons that were beyond your control such as astronomical medical bills, for instance. Buck the antiquated social stigma that you should be able to handle whatever is thrown at you financially.

Life can be a difficult road to travel at times and it can get the best of you through no fault of your own. However, this does not mean you are off the hook if your actions did lead you to being in over-your-head financially. Perhaps too many spending binges resulted in crushing credit card debt or a gambling habit is an issue for you. Whatever the reason you have an obligation to learn from the experience and make corrections so that you can become a better person.

Perhaps professional counseling is in order or help from friends and family. Again, however, making poor choices at one point in your life does not make you a bad person. We all fail and are not perfect. Learn from your experience and grow as a result. Also, know that you are not alone. There were 1.4 million non-business bankruptcies in the United States in 2009. Simply being aware that many people find themselves in the same situation you are in can help alleviate the feeling of loneliness.

Keep in mind during your decision making that bankruptcy is intended to provide a new start for people and wipe the financial slate clean. Being in debt year after year is debilitating emotionally and keeps your from building a better life. Our society has provided this avenue because we realize that people need to be able begin again and not suffer for years.

Consult with a bankruptcy attorney to learn what can be done in your situation. He or she might be able to recommend ways to work with credit counselors to avoid bankruptcy, if possible. If bankruptcy is the best option, a qualified attorney can help you file the necessary paperwork and answer your questions. Whatever choice you make, remember that everybody is allowed to make mistakes. Just do your best to learn and grow from the experience.

For more information on bankruptcy or to request a free consultation, visit Michael F. Kanzer & Associates, P.C. of NY. Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Michael F. Kanzer. Click for search engine optimization and search engine marketing or visit WebDrafter.com's Blog.

A Strategy to Get Out of Credit Card Debt

In our consumer driven, ad-heavy culture, it can be very difficult to keep spending under control. Modern marketing is designed to make a person feel inadequate unless they have certain designer items, drive a new car or otherwise conform to the "hip" culture that pervades our media. Add to this the seductive ease of spending that credit cards provide and even the most stout and amongst us can find themselves in severe credit card debt. If this is you, how do you escape?

First, acknowledge that you are human and have made a mistake. Forgive yourself. Do not beat yourself up over the situation but do make a promise to fix the current situation to never find yourself in this credit card debt again.

Second, stop spending. Cut up your credit cards or at minimum quit carrying them around with you. If they are not on your person, it is impossible to make quick impulse purchases. These quick little purchases add up to a lot of money over time. Instead, pay cash for everything. Psychologically you are less likely to spend if you are handing over cash instead of a plastic card. Casinos understand this which is why bets are done with chips instead of cash. In this way, you gamble longer as each loss is not as psychologically meaningful. By using chips the casino has the ability to a take even more of your money.

Third, sit down an figure out what you really need and only spend money on these items. This might entail curtailing your social life. For instance, spending $30 at the bar once or twice per week does not sound like much but figure out what it is costing annually. In this case, that cost is about $2,340 per year. Plus these are after tax dollars so you need to make about $3,000 per year to support your bar habit. If you make $30,000 dollars a year this is 10% of your salary! Can you really afford that?

Fourth, transfer high balance cards to lower balance cards. Next, contact each credit card provider and ask for an interest rate reduction. Many times it will be lowered on the spot.

Fifth, check the current balance on each of your credit cards. Pay the minimum each month on all but the smallest balance card. On the smallest balance card, pay as much as you can every single month above the minimum. Keep doing this until the card is paid off. On the card with the second lowest balance, pay the minimum plus the minimum you were paying on the first card. Then pay as much as you can beyond these two amounts. Once the second card is paid off, pay the minimum from the first and second card on the third card plus as much as possible beyond that. Repeat for all of your credit cards. This process is called "snowballing" and your ability to pay off debt increases as your debt load decreases. That is something to get excited about!

Hopefully, focusing like a laser on curtailing spending and paying down your credit cards will get you out of debt in a few years. However, if you are in too deep and the methods outlined are not working, you might need to declare bankruptcy and get a fresh financial start. Bankruptcy is preferable to years and years of financial suffering. Contact a bankruptcy attorney and he or she can advise you based on your particular situation.

Take action now and help yourself in the long run. Credit card debt is a financial cancer and the sooner you address it the better!

Please visit http://www.KanzerLaw.com for more information on paying off debt and bankruptcy.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Kanzer Law.

Talk to Your Bank to Keep Your House Out of Foreclosure

How about a dirty word that is not four letters long - "foreclosure." It certainly is not a word that engenders happy feelings. In general, people finding themselves in a foreclosure situation have suffered a substantial change in their life like divorce, serious illness or job loss. During these times in can be difficult to muster the energy to take proper steps to avoid a home going into a foreclosure. There are, however, proactive measures that can be taken to maximize the chances of keeping your home.

The first rule is overarching - talk to your lender. It can be difficult to actually reach out the bank or lending institution for a variety of reasons. You might be embarrassed that you are having money trouble and missed payments or you might be really angry at the bank if you perceive they are unjust in some fashion. Overcome your inertia no matter what its cause, give the bank a call and explain what is going on in your life and why you have missed payments. They may be willing to work with you during your difficult time.

The fist way a bank might accommodate you is by forgiving the missed payments. In this instance, the bank will simply waive the money due. Although this is a great solution for a borrower, it is rarely granted.

A second method is forbearance. The bank might be willing to give you a period of several months to become current on your loan before they file legal proceedings. In this fashion, you are given breathing room and the opportunity to make things right. This method can be coupled with changing the terms of your loan.

Your loan can become more manageable by changing its terms. The two common methods are by lowering your interest rate or by extending the timeframe of the loan. Both methods cause your monthly payment to be lower. How much and to what degree will vary depending on your specific circumstances.

With all three methods the key is actually calling your bank. Unfortunately, not every bank is willing to work with its borrowers and you may end up in foreclosure proceedings regardless of your efforts. In the end, talking to your banker sooner rather than later can't hurt and may help quite a bit. Don't be shy - call your bank as soon as you miss a payment. Keeping your house may depend on it.

For more information on foreclosure please visit www.kanzerlaw.com.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Kanzer Law.

Chapter 13 Bankruptcy - Need to Knows and Basics

With the large number of bankruptcies being performed it is important to know the basic facts about the kinds of bankruptcies out there. Whether you are about to go through the process or just know someone who is, it is important to stay informed in such pivotal matters.
A chapter 13 bankruptcy, also known as a debt repayment or wage earners bankruptcy, requires that you put together a plan to repay all or portions of the debt you owe in the form of installments that are taken from your income. Under these bankruptcy laws you are allowed to keep your property and possessions and promise to pay back debts over a period of time usually ranging from 3-5 years. Below are some more detailed answers to common questions:
How Do I Know If I Am Eligible for A Chapter 13 Bankruptcy?
The biggest eligibility requirement is simply to have a regular and steady income. Furthermore the income must exceed what the court determines to be 'reasonable' living expenses and must be financially able to perform a repayment. If you are living off of your credit cards you may need to make some serious life changes in order for this to happen. A second requirement is that you must be below a certain threshold of secured and unsecured debt, a number which your lawyer can provide you more accurately.
What are the Benefits of Chapter 13?
In my opinion, the biggest benefit of such a program is that is teaches financial responsibility. Through repayment many learn the lesson of financial ignorance through required programs such as credit counseling and the formation of a formal budget. Many view the largest benefit as the permission of the court to keep your possessions as opposed to starting from scratch, and in some cases, with nothing other than the clothes on their back. This makes Chapter 13 greatly appealing to those who have debts in the form of homes and cars.
Are There Any Disadvantages?
Obviously the largest disadvantage is the fact that the bankruptcy can stay on your credit report for up to ten years. During this time the debtor is not permitted to incur additional debt or obtain more credit without permission from the bankruptcy court. Furthermore creditors are mush less likely to extend any form of credit to a person that they consider to be of such high risk.
While any form of bankruptcy is extremely hurtful they are sometimes necessary, and a Chapter 13 offers some desirable traits. During times of temporary financial trouble is when most choose this form, and because the debtor is permitted to keep his/her belongings a complete feeling of loss can be avoided. As always, professional advice is key and can prevent further headaches, so if you are thinking about filing bankruptcy talk to a professional credit counselor or lawyer to determine the best fit for you.

Visit www.kanzerlaw.com for more details and guidance on bankruptcy information.

Posted by WebDrafter.com, Inc. with permission.

Article independently authored by Matthew Eddington. The content herein may or may not reflect the views and opinions of Michael F. Kanzer Law & Associates