Debt Consolidation or Bankruptcy?

On February 28, 2011, in Bankruptcy, by Robbie L. Vaughn, Esq.

“I should have done this sooner.”

Recently, we have had more and more individuals come into our office who have tried to alleviate their debts by hiring a debt consolidation, debt resolution, debt settlement, or some other “get rid of your debt quick” company. Many of them have paid thousands of dollars to these companies.  Most of them have only had one or two, if they’re lucky, debts actually settled.  After we explain how bankruptcy works and the client decides that filing bankruptcy is in their best interest, they almost all say “I should have done this sooner.”

Get a free bankruptcy Consultation!

So, if you’re feeling overwhelmed by your bills and debt collectors are ringing your phone off the hook , it would be wise to obtain a free consultation from a bankruptcy attorney before you hand over what little money you do have to some company with a fancy commercial and/or website.

We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy filings. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501.

Call (516) 858-2620 to arrange a FREE  consultation with a bankruptcy attorney!

Your Credit Score After Filing Bankruptcy

On June 3, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

How does filing a chapter 7 case affect a person’s credit score?

It will usually worsen it, if that is possible.  If you haven’t been paying your bills, your credit score is likely already pretty low and doing further damage should be the least of your worries.  With that being said, we can pull a credit report which will project what your score will be one year after filing bankruptcy. Often, the a person’s credit score is projected to increase one year after they file for bankruptcy.

How does filing a chapter 13 case affect a person’s credit score?

It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the effect of a chapter 13 case on a person’s credit rating may be similar to that of a chapter 7 case.

Obtaining Credit after filing bankruptcy

The fact that you filed for bankruptcy can remain on your credit report for up to ten years. However, there are some financial institutions that solicit business from people who have recently filed bankruptcy under chapter 7. This is likely because it will be at least 8 years before they can file another chapter 7 case and discharge their debts.

Bankruptcy Attorneys in Mineola

As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you.  Contact us at (516) 858-2620 to arrange a consultation with a bankruptcy lawyer.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

Chapter 7 or 13 Bankruptcy Case by Spouses

On May 4, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

Husband and wife joint bankruptcy filing.

Yes, a husband and wife can file a joint bankruptcy case under chapter 7 or chapter 13.  When a joint bankruptcy case is filed, only one bankruptcy petition is filed and only one filing fee is paid to the court.  However, both husband and wife must complete the required pre-filing credit counseling course and the required post-filing financial management course. The more difficult question is whether or not spouses should file a joint bankruptcy case. A knowledgeable bankruptcy lawyer can assist you in making that decision.

As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you.  Contact us at (516) 858-2620 to arrange a consultation with a bankruptcy attorney.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

On April 21, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

When a person files a chapter 7 bankruptcy case, their non-exempt property (if any exists) is liquidated to pay as much money back to his/her creditors as possible. So, in a chapter 7 case the debtor could lose all or most of his/her non-exempt property.

A person filing a chapter 13 bankruptcy case usually retains his or her non-exempt property. However,  he/she is required to pay the value of the non-exempt property to his/her creditors. The determined amount is usually paid by the debtor, through the chapter 13 plan, over 3-5 years.

Don’t be alarmed, many people contemplating bankruptcy have very little or no non-exempt property. However, you should consult with a knowledgeable bankruptcy lawyer if you are thinking about filing for bankruptcy.

Long Island Bankruptcy Attorneys

As always, the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 is here to assist you.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan