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.