Get the Fresh Start You Need · Serving Clients Throughout New York City
When the United States Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, it made it harder for people to automatically qualify for Chapter 7 bankruptcy to eliminate their consumer debt. Under the so-called “new bankruptcy law,” individuals and couples must now meet strict criteria for whether their debt-to-income ratio qualifies them for Chapter 7. In short, if the income exceeds a certain ratio to the debt owed, the filer may be required to petition for a court-supervised restructured debt repayment plan, under Chapter 13 of the U.S. Bankruptcy Code.
Since the new bankruptcy law passed more than six years ago, there have been significant changes and developments in both the federal and state laws that have a direct impact on the debtor. One significant change has come in the area of exemptions for homeowners seeking to keep their homes. The amount of equity you can have in your home is significantly higher than it initially was. By reaffirming your mortgage — continue to make timely monthly payments — you can now exempt your home and your assets if you have equity up to $300,000 for joint filers and $150,00 for individuals. That means that the bankruptcy courts cannot force you to sell your home in order to use the equity to repay your other creditors.
Call our office in Brooklyn to learn more about new developments in bankruptcy and rules regarding bankruptcy exemptions, including:
- How the bankruptcy debt-to-income calculations affect your filing status
- How you can save your house and car from creditors
- Applying the automatic stay (stop) to liens, garnishment and foreclosure by your creditors
- How you can strip off a second (or subsequent) mortgage through Chapter 13
- Stricter enforcement of the federal Fair Debt Collections Practices Act (FDCPA)
Why Hire Us?
At the Paul B. Groman, Attorney at Law, clients can expect quality legal services at a convenient downtown location. Our firm is proud to boast the following attributes:
- Customer service: We return calls, address client concerns and do not oversell our services. We constantly seek input from clients and leave the ultimate decision about their legal moves up to them.
- Honest representation: We are upfront about clients’ prospects.
- Conveniently located in downtown Brooklyn
- If we cannot help you, we will refer you to a reputable lawyer who can.
New development: New York now offers filers the choice between state and federal exemptions.
Foreclosure Defense — See Us Before You See a Debt Consolidation Company
If you have received notification that the bank has begun foreclosure proceedings against you, your first call should be to our law firm. Paul Groman will discuss your options with you and show you strategies for avoiding foreclosure, through the bankruptcy process or government programs you may be able to take advantage of. If you are considering talking to a debt consolidation service to free up money to make your house payment, you owe it to yourself to learn about the disadvantages of entering into a long-term agreement with a debt negotiation company.