Is Bankruptcy The Answer To Your Debt Troubles?
The bankruptcy laws were created to provide relief from creditors and a fresh start to people who are unable to pay their debts. Bankruptcy erases debts or allows you to pay them back over time. It also halts foreclosure, vehicle repossession, wage garnishment and other creditor actions.
The bankruptcy attorneys of Palacios Law Group can help you escape the cycle of debt, protect your assets, stop creditor harassment and start to rebuild your life. Our Mineola law firm has helped hundreds of individuals and families on Long Island and in New York City, and we are confident we can find solutions for you as well.
Start with a free consultation to find out how we can help. Call us today at 516-873-8783.
The Benefits Of Bankruptcy And How We Can Help
We handle both Chapter 7 and Chapter 13 bankruptcy (explained below), as well as Chapter 11 bankruptcies for small businesses. Bankruptcy is a path out of debt. It also provides immediate relief from creditors starting the day your bankruptcy petition is filed with the U.S. Bankruptcy Court. Our law firm provides bankruptcy representation and related legal services to help you protect what you own and get your finances back on track.
Palacios Law Group can help you:
- Eliminate certain debts or make the payments more affordable
- Stop garnishment of your paychecks or freezes on your bank accounts
- End harassing phone calls from bill collectors
- Prevent repossession or get your repossessed car back
- Pause the home foreclosure process
- Negotiate a loan modification with your mortgage lender
- Protect your assets, including your house and retirement savings
Bankruptcy is fact-specific. You might have to forfeit some property to pay creditors in a Chapter 7 bankruptcy, and some debts are not eligible for discharge. One of our lawyers will sit down with you to explain the law and help you decide the best approach for your circumstances.
Three Types Of Bankruptcy Proceedings
A filing under Chapter 7 of the Bankruptcy Code is also called liquidation. In exchange for canceling your unsecured debts, you may have to forfeit some assets, which the bankruptcy trustee will liquidate (sell) to repay your creditors. However, many assets are exempt from liquidation, including retirement savings. Many people do not lose any possessions if their assets are covered by the bankruptcy exemptions.
Chapter 7 erases unsecured debts such as credit card balances and medical bills. But many debts cannot be discharged, including child support, alimony, student loans, tax debts and recent large purchases. Our experienced attorneys will be able to gauge which debts are dischargeable and which assets the bankruptcy court will likely let you keep. When you file for bankruptcy, you invoke an automatic stay against all creditors. This means that collection efforts, including wage garnishment and creditor harassment, are immediately halted.
A Chapter 13 bankruptcy is also known as a repayment plan or wage earner’s plan. It recognizes that you can pay some but not all of your debts under your current financial situation. A bankruptcy trustee calculates a monthly payment based on your available income after living expenses. A Chapter 13 plan is for 36 months or 60 months. At the end of your plan, if you have made all the monthly payments, the remainder of your eligible debts are discharged.
Many debtors chose Chapter 13 to avoid home foreclosure or vehicle repossession. If you can keep up with the current mortgage or car payments, the arrears are folded into your repayment plan. Our attorney can determine if Chapter 13 or Chapter 7 is best for you.
A Chapter 11 bankruptcy, also known as a reorganization, provides creditor relief to businesses. Creditor actions are temporarily halted while the business reorganizes its finances and creates a plan to repay creditors over time or at a prorated percentage of the debt. The Chapter 11 repayment plan must be accepted by a committee of the creditors. The primary goal of Chapter 11 is to allow the business to continue operating. Our attorneys can help you determine if the business can be salvaged through bankruptcy protection.
Can A Bankruptcy Filing Be Challenged?
Under the Federal Rules of Bankruptcy Procedure, Rule 7001, an adversary proceeding (legal challenge) may be filed to object to a debtor’s bankruptcy petition. Adversary proceedings are rare in a typical Chapter 7 or Chapter 13 filing, unless the debtor is suspected of hiding assets or income or is accused of paying a few favored creditors while stiffing others. Usually, there is no challenge if your modest assets are covered by the exemptions and you lack the means to pay the debts. It is important to be forthcoming with your attorney and the bankruptcy judge about all debts, income and assets so that your petition is not voided, delayed or challenged.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.