Ronald D Weiss, PC Attorney at Law

What Are the Basic Types of Bankruptcy Cases? There are three basic types of bankruptcy cases: Chapter 7, the most common, is a liquidation bankruptcy, Chapter 13, also frequently used by individuals, is a wage earner’s bankruptcy, and a Chapter 11, mostly used by businesses, is a business reorganization. These basic types of bankruptcy cases are named after their respective chapters in the Bankruptcy Code and are appropriate to different situations. A Chapter 7 bankruptcy ...case may be used to eliminate or discharge most debts of an individual or to liquidate a business. A Chapter 13 bankruptcy case may be used by an individual or by a sole proprietorship business, that has a regular income, in order to pay debt over a period of time, and is often used by debtors who seek to save their house or other real property from foreclosure or by individuals with other problematic debt who do not choose Chapter 7 because of excess income or excess equity in their assets. A Chapter 11 reorganization case may be used by a business or an individual to reorganize its financial affairs while continuing to own, manage, and operate its property. The mechanics, requirements, and rights involved in these different types of bankruptcy cases vary drastically and how they may apply to a particular case can also vary greatly depending on the particular circumstances and parties involved in a case. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

What Are the Alternatives to Bankruptcy? While filing for bankruptcy protection is often an option chosen by debtors in resolving serious financial problems, there are also non-bankruptcy options that may provide an alternative to a bankruptcy filing. Some of these options involve out of court negotiations, leading to potential settlements or loan modifications with creditors. Other options entail litigation defense by answering the creditor’s complaint (within 20 or 30 days)... and defending against a creditor’s pursuit of debt by either challenging the legitimacy of the debt or the methods by which the creditor has attempted to pursue the debt. In some situations, non-bankruptcy options are available and preferable. However, a bankruptcy filing is often the most direct and powerful tool for a debtor to deal with serious financial problems. Nonetheless, it must be stressed that bankruptcy is not the solution for every problematic financial situation, and that in some cases, bankruptcy entails certain risks. If your debts are primarily unsecured debts, like credit cards, negotiations with your credit cards, especially by a firm like ours that can otherwise file a bankruptcy case can be effective in lowering the debt. Lump sum agreements give more of a discount than payment plans, but both can yield positive results. We can also litigate with unsecured creditors, especially when there is a potential dispute, or where we need additional time or leverage to reach a positive settlement. Bankruptcy usually provides more certainty and immediacy in terms of a resolution of debt. However, negotiated agreements or litigation defense may be preferable when the client does not have a general debt problem, but only has issues one or two isolated creditors, or where a client may not qualify for bankruptcy. Also, some clients may prefer to try to avoid bankruptcy, and negotiation options, even if not as effective as bankruptcy, can provide enough relief in their situations without the need for a bankruptcy filing. Our office generally negotiates most debts on behalf of our clients including credit card, tax, mortgage, and other debts. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

What Are the Potential Benefits of a Bankruptcy Case? The filing of a bankruptcy case will immediately create an automatic stay that would protect the person filing the case from their creditors. In Chapter 7 most debts can be eliminated by the bankruptcy discharge and in a Chapter 13 or Chapter 11 case most debts can be cured, reduced and/or reorganized under a plan. Bankruptcy cases are overseen by a federal bankruptcy court that specifically has jurisdiction to adminis...ter bankruptcy cases and therefore there is a forum to go to if there are disputes or issues as to a case. However, creditors are generally respectful of the bankruptcy stay and discharge and will cease all collection efforts upon the filing of a case, and note the discharge on a person’s credit report. A bankruptcy filing is often used as follows: By individuals to eliminate overwhelming credit card debt, medical bills, and other types of debt; By individuals or businesses to save their real property or house from foreclosure or to save their car or other assets from repossession; By businesses, under a cash flow squeeze to obtain a breathing spell from their creditors in order to reorganize their financial affairs or to sell off assets; By individuals or businesses to extend, resolve and/ or reorganize mortgage or real estate tax arrears or burdensome sales and withholding tax liability; and By businesses to stop eviction from leased real property or repossession of leased equipment. The above uses of bankruptcy are not exclusive and a bankruptcy case can be used for other purposes. However, an individual or business contemplating filing a bankruptcy case should carefully review their goals with a bankruptcy attorney since bankruptcy law can be complex. A bankruptcy attorney will be able to determine whether the above goals can be achieved depending upon the particular circumstances of a situation. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

The Foreclosure Crisis As you must be aware there is presently a foreclosure crisis in the United States, which has seriously affected our Long Island and New York areas, due to many factors: sub-prime loans, overly aggressive lending and borrowing, a rapidly rising and rapidly falling real estate market and many other global forces that are decreasing our ability to earn the same real incomes as in the past. In this turmoil many homeowners to their dismay have found themsel...ves in arrears on their mortgages and in foreclosure or threatened by foreclosure. Yet, despite the many hardships caused by this crisis, in the last few years more programs, policies, court decisions and laws have been enacted to give homeowners a better chance to save their homes. Because homeowners are frequently confused as to their options, and because the advice of their mortgage holders can be inaccurate and/or misleading, a homeowner threatened by foreclosure or in foreclosure needs to quickly get reliable information from an attorney who concentrates in this area. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected]

What Is Bankruptcy? Federal bankruptcy law (Title 11 of the United States Code, otherwise called the Bankruptcy Code) was enacted to allow the honest debtor, who is unable to meet his/her financial obligations, to obtain a fresh financial start or to reorganize his/her financial affairs. Bankruptcy law accomplishes this goal by providing debtors with a legally enforceable mechanism through which they may: (1) eliminate, reduce and/or extend most debts, and (2) protect thems...elves, subject to certain qualifications, during the bankruptcy case, from pursuit and harassment by their creditors. At the same time that bankruptcy law seeks to give relief to the debtor, it is also the goal of bankruptcy law to deal equitably with a debtor’s creditors by: (A) protecting the creditors against fraud, (B) treating similarly situated creditors in an equal manner, (C) providing a mechanism whereby the debtor must disclose information about assets and income to verify that their eligibility for a case, and (D) providing the creditors with constant notice and an opportunity to be heard during the bankruptcy case. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

Tax Negotiations Many people fall behind in paying taxes to both New York State Department Taxation and Finance and the Internal Revenue Service. This is a huge problem for both the federal and state governments, as such, there are programs in place to negotiate the debt owed to both respective governmental agencies. Our office can negotiate your tax debt and come to a resolution that suits you moving forward. Read more here:... https://www.ny-bankruptcy.com/.../tax-debt-negotiations.../ Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief

Bankruptcy as a Solution to Foreclosure A bankruptcy case has the advantage of providing a sense of certainty by immediately stopping a foreclosure process and any possible actions within the foreclosure litigation such as a foreclosure sale. A bankruptcy case has the advantage of not relying on the consent or agreement of the mortgage holder who under federal Bankruptcy Law is required to abide by the automatic stay which immediately goes into effect upon the filing of the b...ankruptcy case. There are several types of bankruptcy cases available to persons in foreclosure or threatened with foreclosure: Chapter 13, Chapter 11, and Chapter 7. Chapters 13 and 11 reorganize debt and revolve around a plan which allows a catch up over time on mortgage arrears and other debt, while Chapter 7 eliminates or discharges debt. More detailed descriptions of these types of bankruptcy cases and how they can help in a foreclosure situation follows below: Chapter 13 as a Foreclosure Solution Chapter 7 as a Foreclosure Solution Chapter 11 as a Foreclosure Solution A Bankruptcy Stay Compared to a Stay in State Court The Potential Benefits of Bankruptcy as a Foreclosure Solution and the Role of Our Law Office Read more here: https://www.ny-bankruptcy.com//bankruptcy-as-a-solution-t/ Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

Litigation Defense Many of the clients of The Law Office of Ronald D. Weiss, P.C. are faced with potential litigation or collection actions by their creditors. One response to litigation by a creditor, especially one for significant amounts, which are disputed, is to defend against such litigation. Our firm can help the client answer the summons and complaint that initiate the litigation. This needs to be done within 20-30 days after service of the summons and complaint. Such... answer is one out of several documents that are usually filed as part of a litigation defense. Other documents may include a motion to dismiss, if applicable, and a response to a motion for summary judgment. Defending the litigation proceeding allows the client to assert any defenses they may have to the manner in which such litigation was initiated. A litigation defense also gives the client and our firm notice as to the status of the litigation and prolongs the proceeding. In some instances a client may have a strong defense, which may cause a litigation to be dismissed. Defenses asserted by our office look at issues such as defective service, the existence and applicability of the alleged loan documents, the clarity of the alleged loan terms, the appropriateness of the loan amount, the amount of interest and fees charged by the credit card. Often our office would engage in discovery demands to try to obtain documents and/or information regarding the alleged debt and to help with potential defenses. Defending the collection action proceeding allows the client to assert any defenses they may have as to the manner in which such collection action was initiated and/or the manner such debt was extended. Our clients are also often faced with foreclosure procedures against their homes. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

Negotiated Settlement of Credit Card Debt Credit cards can be aggressively settled, especially when the credit card companies are aware that the alternative may be a bankruptcy case to completely eliminate the credit card debt. i) The Need for Credit Card Negotiations Most of the clients coming to our office with credit card debt are interested in bankruptcy solutions since they are usually more thorough and certain than negotiated settlements. However, there are many insta...nces where our clients have either too much in terms of assets or income to file a bankruptcy case that would sufficiently alleviate their debt situation. In other situations the debt is not sufficiently overwhelming to require a bankruptcy case and the client may be better served by negotiating a lower payment for debt that they can pay. ii) How Our Office Can Help You Negotiate a Settlement with Your Credit Cards In situations where bankruptcy is not possible or desired by a client, our office can negotiate lump sum settlements for payment plans with the client’s creditors. Given that we are a bankruptcy firm and routinely file bankruptcy cases creditors are informed that we are exploring bankruptcy options but would prefer a negotiated solution. Often we are able to obtain a lump sum resolution which reduces the debt to 33-50% of the debt. If the client needs to negotiate a payment plan, the loan will not usually be so drastically reduced but it will be reduced in terms of interest and monthly payments. iii) Our Method of Negotiating with Credit Cards Because clients often come to use with several or numerous credit cards that require negotiation, we prepare an Excel sheet that lists all the creditors and their pertinent contact and loan information. Then we systematically write and call all the cards in pursuit of negotiated settlements. Using this method we can best track the progress with our settlement efforts and advise our clients as to our progress. Credit card negotiations can be involved and experience and the leverage of other legal options, are all helpful. The Law Office of Ronald D. Weiss, P.C. regularly represents its Long Island and New York clients in credit card negotiations. Law Office of Ronald D. Weiss, P.C. Long Island Bankruptcy Law Office of Ronald D. Weiss, P.C. 734 Walt Whitman Rd. Suite 203 Melville, NY 11747 P: 631.271.3737 C: 516.743.8844 F: 631.271.3784 [email protected] #bankcruptcy #foreclosuresolutions #taxdebtsolutions #creditcarddebtrelief #litigationdefense

Bankruptcy Relief of Credit Card Debt A Chapter 7 bankruptcy case will eliminate most or all of a client’s debt, and will allow the client to obtain a fresh financial start. A Chapter 7 case is a highly effective tool in dealing with burdensome credit card and other unsecured debts, such as medical bills and personal loans. A Chapter 7 case is especially helpful when the client cannot pay their present bills and faces the prospect of creditor harassment, collection actions an...Continue reading