Jeffrey M. Rosenblum, P.C.
A Fresh Start

Long Island Bankruptcy Law Blog

Important questions to ask your bankruptcy attorney

If you are wallowing in debt, you are likely having trouble finding a way out of it. Debt can pile up quickly. This is an issue that millions of Americans face each year. Bankruptcy is the best option available for those who are swimming in debt with no end in site. As you prepare to consult with your attorney, be sure to ask the questions outlined in this post.

Once you deem it is time to file for bankruptcy, the first question you should ask your attorney is which type of bankruptcy you should file. You have two options: Chapter 7 and Chapter 13. The lawyer will be able to look at your situation and present you with plenty of information as to which route to take.

Don't let your spouse's tax liability become yours

Like many married or formerly married couples in New York and elsewhere, you have or do file joint taxes. There are a lot of benefits to doing so. Unfortunately, this also means that the Internal Revenue Service can come after you for your spouse's or former spouse's tax liability.

Whether you've divorced or are still married, if you believe that the taxes the IRS says you owe really belong to your spouse or ex. you may not have to pay. For this to happen, it is necessary to file for something the IRS calls Innocent Spouse Relief.

Debt can build without warning quite quickly

Debt is something that almost every American will have to deal with at one time or another in life. Whether it's student loan debt, a mortgage, credit card debt, a car loan, a boat loan or any other type of loan; debt is almost unavoidable. It's necessary for people to go into some form of debt in an effort to live their lives. But, debt can begin to build quite quickly to the point where you are swimming in it and see no way out of it.

A big cause of building debt, especially credit card debt, is inexperience. Many people will get a credit card for the first time and start spending, knowing they have one month before the bill comes due. They might begin paying off their credit card bill in full each month before trouble really begins. Maybe the next month the bill is too much for them to pay in full and that's when the debt begins to mount.

What debts may a Chapter 7 bankruptcy eliminate?

Chapter 7 is the most widely available form of bankruptcy, offering those who face debt they cannot get under control the opportunity to unload some of it in return for surrendering some types of property and submitting to a few restrictions on borrowing for several years. While this form of bankruptcy is often the most difficult to undergo because of property forfeiture, it is also available with fewer requirements than other bankruptcy options.

A Chapter 7 bankruptcy may successfully discharge a number of different kinds of debt, including

  • Unsecured debts, like credit cards
  • Utility bills in collection
  • Medical debt
  • Payday lender debt
  • Car title loans
  • Some types of court judgments

Couple convicted of fraud files for bankruptcy

A couple previously convicted for fraud following a hurricane have filed for bankruptcy, according to a report. The couple hails from Jasper and had been convicted in 2017 for theft and fraud due to diverting hurricane relief money illegally.

The conviction was issued on August 16. The man is the former executive director for the Deep East Texas Council of Governments. He was convicted of theft, money laundering, and wire fraud.

How do I create a budget after bankruptcy?

Life after filing for bankruptcy does not have to come to a grinding halt. Bankruptcy is an excellent option for those who have fallen on hard times financially. It is not the end of the road for you financially. In fact, bankruptcy must be looked at as a rebirth for your finances. Once you exit bankruptcy, you can begin to build your credit and financial portfolio again.

The first thing you need to write down is a list of expenses. You shouldn't have many expenses left on the record following a bankruptcy, but there will still be some leftover. Look at what you spend each day on coffee, cigarettes, lunch and other items that you might be able to cut back on to save some money.

The effect of bankruptcy on your credit score

Bankruptcy is not the end of the world. In fact, it is a new beginning for those who file. Whether you are filing for yourself or for your business, bankruptcy can change your life for the better. The word still carries with it a bit of a stigma but more and more people are opening up to what bankruptcy can do for those in financial trouble. Let's take a look at the effect bankruptcy has on your credit score in today's post.

For starters, a Chapter 13 bankruptcy filing that has been completed will remain on your credit report for no more than seven years. All of the debts discharged in the filing will also remain on the report for seven years.

Common financial challenges faced in today's world

It's not hard for people to find themselves in a heap of debt these days. Not much has really changed from the past as credit cards have been around for decades. If anything, debt has been easier to accrue ever since the dawn of online shopping. Here are some of the common financial challenges people are faced with in the world today.

Living for today is a big financial problem that too many people face. This is when non-retired individuals do not have retirement savings in place. This can include the lack of a 401(k), pension, or other type of savings account. Living for today is never a good idea, especially since you never know when you might need a chunk of money for an emergency.

How do I know which chapter of bankruptcy is right for me?

If you find yourself unable to manage your debt on your own, you may feel that there is no way out of your current financial situation. In reality, there are options available to you, including the option of filing for consumer bankruptcy. Making the decision to file could be an important step for your future, but the next step is to decide which chapter is best for your individual situation.

Most New York consumers will file for either Chapter 7 or Chapter 13 bankruptcy. There are certain eligibility requirements applicants will have to meet, and you may not qualify for your first choice. Regardless, there are options available to you, and it is beneficial to seek a complete case evaluation in order to understand what they may be.

Determining if bankruptcy is the right move

Many people face financial issues on a daily basis. Some of those people know exactly what they are going to do to get out of trouble. Others have no idea where to turn. Not everyone has the ability to work with a financial advisor or other professional when it comes to making such major life decisions. Today, we will discuss how to determine if bankruptcy is the right move for you in Long Island.

There are three major financial situations that cause people to file for bankruptcy these days. Those three situations include divorce, unemployment and the inability to pay for medical debt that is uninsured. When you combine all three of these situations, you come up to a statistic that is mindblowing; they account for 90 percent of all United States bankruptcy filings.