Bankruptcy Law

Chapter 7 bankruptcy, also known as a liquidation bankruptcy, is a form of debt relief by which you can eliminate most forms of unsecured debt. Types of unsecured debt include credit cards, medical bills, personal loans and personal guarantees of business debts.

Once a Chapter 7 bankruptcy petition is filed, an Automatic Stay will immediately take effect. The Automatic Stay protects you from creditors, collection agencies, and attorneys who are attempting to collect money they claim is owed to them for pre-petition debt.

After you file a Chapter 7 bankruptcy petition, you will be assigned a Trustee who will be in charge of administering your case. Your Trustee will review your file and determine if you own any non-exempt assets that can be liquidated to help pay off your creditors. PLEASE do not let this be a matter of concern for you; in most cases homes, cars, retirement accounts, tools of your trade, wedding rings, household appliances, clothing items, etc. are exempt from liquidation. In addition, New York has very liberal exemption laws which will allow you to keep most, if not all, of your assets. Once the Trustee determines whether or not any assets are to be liquidated, the rest of your unsecured debts will be discharged. Please note however, that some types of debt cannot be discharged (please visit our Bankruptcy Q & A page for further clarification of this matter).  While there are income limits for Chapter 7 filing eligibility, the vast majority of clients pass the “means test” and are eligible to file Chapter 7 bankruptcy.

Although a Chapter 7 bankruptcy will stay on most credit reports between 7 and 10 years the burden of immense financial debt will be lifted and you can start rebuilding your credit. In fact, because one aspect of your credit number is dependent on your debt-to-income ratio, your credit will immediately begin to improve once your Chapter 7 bankruptcy petition is finalized. Some filers fear that filing for bankruptcy will have a negative impact on their ability to have credit extended to them in the future. Most individuals who have filed for Chapter 7 bankruptcy have received offers for credit cards, car loans and car leases within six months, and many have been able to successfully apply for mortgages within  one to two years after they receive their discharge.

You have worked hard to build your business, you should work just as hard to save it!

Chapter 11 bankruptcy is an option that partnerships, limited liability corporations, small and large businesses, and corporations have available to them to restructure their finances, and alleviate the burden of debt. It is also available to individuals whose debt burden disqualifies them from a Chapter 13 filing.  As with other bankruptcy petitions, once the petition is filed, the case begins and an automatic stay of all collections actions is put into effect.  This means creditors may not pursue existing or new collection activities for unpaid pre-petition debts unless the court issues a modification to the stay.  This provides an opportunity for the debtor to draft a reorganization plan and negotiate more feasible and tolerable repayment terms without worrying about its debt obligations. Under court supervision you are still able to continue to operate your business. Each situation is unique and presents a range of possible options.  So, please call to speak with a member of our bankruptcy team at Berger, Fischoff, Shumer, Wexler & Goodman, LLP to discuss options available to your specific situation.

When considering filing a Chapter 11 bankruptcy it is important to seek legal advice from an experienced Chapter 11 bankruptcy attorney. Working together, you and our bankruptcy team at Berger, Fischoff, Shumer, Wexler & Goodman, LLP, can create a plan to financially restructure your business debt and reduce your financial liabilities. Your business may regain profitability by the reduction of certain obligations and the modification of payment terms on other debts. Additionally your attorney may advise you to downsize by selling some of its assets. Making changes to your business may be intimidating but knowing that you are working with an experienced bankruptcy professional will make the process less threatening.

Chapter 11 has helped prevent countless businesses from closing. Many businesses shy away from Chapter 11 bankruptcy because the process is complex. You should not be intimidated by the idea of Chapter 11.  You have worked hard to build your business, now you should work just as hard to save it! At Berger, Fischoff, Shumer, Wexler & Goodman, LLP, our bankruptcy team  has helped countless businesses remain operational by representing them in their Chapter 11 filing.  We have helped reduce or eliminate debts and have negotiated payment plans with taxing authorities and other creditors, for our clients’ benefit.   The bankruptcy team at Berger, Fischoff, Shumer, Wexler & Goodman, LLP, will guide you through the process and speak in terms that you can understand. To help ease your mind, our team will answer any questions you have. We will work efficiently and effectively with you to create a plan that will keep your business operating for years to come.

Chapter 13 bankruptcy, also known as a wage earner’s bankruptcy, is an ideal option if you are facing foreclosure of your house and/or repossession of other assets or do not qualify to file for  Chapter 7 bankruptcy.

With the help of your experienced bankruptcy attorneys at Berger, Fischoff, Shumer, Wexler & Goodman, LLP, a repayment plan is proposed to the court in order to reorganize your debt. The Chapter 13 plan payments are made to an appointed Trustee who distributes the money to your creditors on a monthly basis.  During the period of the plan repayment, you and your property are protected from the creditors as long as you fulfill your obligations via the plan.  Through this process, you will remain current on your secured debts (mortgages, car loans, etc.)

The length of the repayment plan typically varies from three to five years, based upon your “disposable income” as well as additional secured and unsecured debt (please visit our bankruptcy FAQ page to learn more about the differences between secured and unsecured debt).

After your payment plan is successfully completed, your mortgage, car loans, and any other secured debt that initially fell behind will be deemed current. In addition, any remaining unsecured debts will be discharged or wiped out.

The prospect of foreclosure leaves many homeowners feeling frightened, helpless, and alone. At Berger, Fischoff, Shumer, Wexler & Goodman, LLP, we want to help you save your home from foreclosure. Our attorneys have a proven record in foreclosure defense. We possess the experience, knowledge, and skills to aggressively protect your rights as a homeowner. We understand how devastating going through a foreclosure can be. Your home, after all, is more than just a residence – it is the place where you and your family have built your lives.

Berger, Fischoff, Shumer, Wexler & Goodman, LLP, is available to answer all of your questions regarding foreclosure. Our four office locations, and flexible hours of operation make us easily accessible to you. Berger, Fischoff, Shumer, Wexler & Goodman, LLP, does more than just provide foreclosure consultations, we work with clients throughout the foreclosure process to ensure strong communication at every step.

By speaking to a lawyer early on in the process, before your first missed mortgage payment, you will have a better understanding of your options, and, in some cases, early legal intervention may help you keep your home or provide other viable alternatives.

On the other hand, if you are already in the midst of the foreclosure process, Berger, Fischoff, Shumer, Wexler & Goodman, LLP, can assess your financial outlook and attempt to negotiate on your behalf with your lender.

BERGER, FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP…EXPERIENCED LEGAL REPRESENTATION THAT YOU CAN AFFORD!!!