Law Office of Ronald D. Weiss, P. C.

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The Law Office of Ronald D. Weiss. P.C. concentrates in bankruptcy (Chapters 7, 13 & 11), foreclosure defense litigation, and mortgage loan modification solutions. Our law firm has represented many individuals and businesses experiencing financial hardship and mortgage difficulties in the Suffolk County and New York areas. Through advice and representation, our attorneys help determine and implement the best and most affordable ways to: eliminate overwhelming credit card obligations, reduce burdensome mortgage payments, stop creditor collection actions, and overcome foreclosure difficulties. The legal team works to defend and protect the rights and best interests of clients undergoing financial hardship with strategies designed to match their objectives.

Chapter 7: This type of bankruptcy is a traditional liquidation, which means all of your non-exempt assets are liquidated, typically including your home, vehicle, furniture, bank accounts, jewelry, and anything else of great value, and the money is given to the bankruptcy trustee. The trustee then distributes the money in priority order between all your creditors that filed as parties in interest. Once the money is distributed, the rest of your non-exempt debts are discharged, which means forgiven. Because bankruptcy is a tenant of American law, when you are loaned money or given a credit card, the creditors are taking a risk that a bankruptcy discharge is a possibility. This is why you are typically subject to higher interest rates and penalties for unsecured debts because it’s a greater risk to the creditor. Secured creditors, such as your mortgage holder, are taking less of a risk because their debt is actually secured by something of value, i.e., your home.

Chapter 13: Many Long Islanders do not have the option of taking advantage of New York’s homestead exemption, which is capped at $150,000. With the average home price in Bohemia at $380,000, you will likely lose your home if you file for Chapter 7 liquidation. However, there is another option. If you are working, have a steady income, and your debts are not too high, then you likely qualify for wage-earner bankruptcy. In this case, your debts are consolidated, and you are essentially put on a budget where you pay down your debts over a period of three to five years. If you successfully complete your payment plan, then your remaining dischargeable debts are forgiven, and you get to keep your assets, including your home.

Chapter 11: This type of bankruptcy is for business owners who do not want to give up their business. Maybe you’ve just fallen on hard times and need a leg up after a bad year, but you still believe the business can succeed. This type of bankruptcy is similar to Chapter 13, except you act as your own trustee, following the court’s orders and distributing your profits to your debtors accordingly. The benefit, however, is that you get to both keep your business assets and stay in business, and if you complete your payment plan, you may be eligible for discharge. The downfall of this type of bankruptcy is that it takes a lot of compliance paperwork. Having a bankruptcy attorney on your side during this process can greatly reduce your stress level and increase your chances of successful compliance.

No matter what type of bankruptcy you file for, it is going to result in significant life changes for you and your family. You may have to adjust your lifestyle, and it will be difficult to get a loan or credit card in the future. However, it also means you can get a fresh start on life, free from debt and harassment. You may also be able to keep your home, vehicles, and assets if you have the right attorney on your side.