Legal Question in Bankruptcy in New York

Possibility of bankruptcy

my husband suffers from severe bi-polar disorder, he cannot work; he sees a psychiatrist; therapist and collects disability from the state of NY; during extremely manic stages of his illness he has run up almost 63,000 worth of debt, it includes credit cards; cars, furniture and motorcycles.

He no longer has access to a credit card but even the minimum balances are more than we can handle. I am afraid that we will lose our home if we try and pay more than the minimum.

We have a house and 2 cars and 3 children. He cannot work but I do work, if we file for Chapter 13 will we able to keep our home? What about our cars? I have heard that the government will take money from your salary to pay back debt. Is this correct?

What is the difference between Chapter 7, 11 and 13.

Can you clarify a few of these points for me?

thank you so much for any advice


Asked on 9/26/07, 8:46 am

4 Answers from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: Possibility of bankruptcy

You can find answers to general questions about personal bankruptcy, different chapters of bankruptcy, eligibilty issues, how chapter 13 works, etc. on the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm

If you live in one of the counties that we cover (see our website), I will be glad to have a no-obligation initial phone consultation with you regarding your options. You can reach me at 8888678165.

Best regards,

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Answered on 9/26/07, 9:06 am
Jacob Silver Attorney At Law

Re: Possibility of bankruptcy

You may very well be able to file a chapter 7 depending upon the amount of equity in your home and get rid of all dischargeable debt.

I need more specifics to advise you.

Please contact me as soon as possible.

Thank You for Contacting me and allowing me to advise you regarding a possible filing for Bankruptcy.

I am happy to personally meet with you and discuss your situation with you to determine whether

Bankruptcy is the best option for you. Let me help you work through this difficult situation, together.

Please Download the Bankruptcy Checklist from here- http://www.silverbankruptcy.com/images/BankruptcyChecklist.pdf in the Get Started section.

Feel free to review my website at http://www.silverbankruptcy.com.

Call Me For A Free Consultation.

If you do not have the free Adobe Reader, then Download it from the website and Install it by running it, and then go back to the website and download the checklist.

The purpose of the checklist, is to ensure that I have all of the necessary information in developing

a solution for your situation.

Please Fill out the Form, then Contact me for your Free Consultation.

I look forward to working with you.

My Office is Conveniently Located Near the Bankruptcy Court, where your Case will be heard.

Thank You

Jacob Silver

Attorney At Law

26 Court Street

Suite - 2511

Brooklyn, NY 11242

[email protected]

www.silverbankruptcy.com

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Answered on 9/26/07, 9:16 am
Nancy Delain Delain Law Office, PLLC

Re: Possibility of bankruptcy

Under Chapter 13, it is entirely possible for a debtor to keep their home, cars and other personal property.

The government can garnish your wages for back taxes, but the government doesn't garnish for back debt; collection of private debt is done by the creditor to whom you owe money through the court system. Sometimes it can result in garnishment, I suppose, but usually it's in the form of a money judgment taken out against you that can attach to things like real property.

Chapter 7 is liquidation of assets. A debtor could potentially keep the home and one car under Chapter 7, depending on the loan-to-value ratio that exists on the day the debtor files the petition. The debtor must be income qualified to file a Chapter 7 petition or have a reason for filing under Chapter 7 that is acceptable to the court.

Chapter 11 is a business debt reorganization. It's a royal and very expensive pain in the petoot, and there is rarely any reason for individuals to go to Chapter 11 (though it can be done).

Chapter 13 is an individual's (and "individual" can mean "husband and wife") debt reorganization. The debtor doesn't need to be income-qualified; debtor pays into a multi-year (usually five years) plan that is overseen by the court to pay off (or partially pay off) creditors in a civilized way. Debtor in a Chapter 13 can generally keep all personal and real property, but BEWARE: screw this up and the Trustee can move to convert the petition to a Chapter 7 (where debtors can and do lose assets) or dismiss the case altogether in such a way that debtor cannot re-file.

You need to HIRE AN ATTORNEY who is local to you to help you decide what is your best course of action; there are options outside of bankruptcy, too. Do NOT try to handle a bankruptcy case on your own; you can very easily muck yourselves up and end up even worse off than you already are.

Good luck.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 9/26/07, 9:18 am
Richard Feinsilver Richard S. Feinsilver, Esq.

Re: Possibility of bankruptcy

We may be able to assist you. Please respond to the address below....

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Answered on 9/26/07, 9:26 am


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