GOSHEN NY BANKRUPTCY LAWYER

People find themselves in overwhelming debt for a variety of reasons, sometimes through no fault of their own. For every person whose road to bankruptcy is paved with bad decision-making, there are others who are simply victimized by the vagaries of life, commonly referred to as “Murphy’s Law”. Regardless of how one ends up buried in debt, the question of “how do I fix my financial mess” must eventually be addressed. The first step should involve figuring out exactly how it all happened so that necessary course corrections can be made to avoid the financial hole becoming any deeper. The second step, however, is a little less clear cut, as there is no “one size fits all” answer. At Hayward, Parker & O’Leary, Esqs. , experienced Goshen NY bankruptcy lawyer Michael O’Leary, Esq. offers a free Initial Consultation with prospective clients to explore financial recovery options, one of which is bankruptcy.

The Bankruptcy Option

For many people the gateway to financial recovery does start with a bankruptcy filing, under either Chapter 7 or Chapter 13. While the bankruptcy process is very structured and regulated, having your case handled by experienced bankruptcy lawyer Michael O’Leary can lead to predictable results. Unlike other debt relief options that lack appropriate guardrails, a properly handled bankruptcy case is specifically designed for the honest debtor to receive the debt relief they so desperately need.

Chapter 7 is commonly referred to as “straight bankruptcy” and can be filed by an individual or a business entity, such as a corporation, partnership, LLC, etc. The vast majority of bankruptcy cases are filed under Chapter 7, and it is most effective when seeking to:

• Discharge unsecured debt such as credit cards and medical debt; or
• Discharge secured debt like mortgages or car loans that are no longer affordable when you no longer wish to retain possession of the collateral (i.e., the house or the car); or
• Discharge old income tax debt in appropriate circumstances.

To be eligible to file Chapter 7 one must “pass” the Means Test, which is largely based on your average monthly income for the prior 6 months, from which certain expenses are deducted. If you do not “pass” the Means Test your only consumer bankruptcy option is Chapter 13. Chapter 7 is a “liquidation” proceeding, which means that non-exempt assets can be liquidated by a Chapter 7 Trustee, with the liquidation proceeds used to repay one’s creditors. Most assets are exempt from Trustee liquidation, meaning the Trustee will not take them from you. Your assets will be thoroughly analyzed by experienced bankruptcy lawyer Michael O’Leary and discussed with you in detail prior to your Chapter 7 being filed. A client never wants any surprises in their Chapter 7 case, and neither does this law firm. Chapter 7 is a fairly quick proceeding, usually taking only 90± days from the date of filing the case to the date your Discharge is entered.  The legal fees in Chapter 7 are less than in Chapter 13, and the debtor makes no direct payments to anyone in Chapter 7.

Chapter 13, on the other hand, is a long-term (3 to 5 years) repayment plan, with the required monthly payment largely determined by the amount of disposable income left over in your monthly budget.  A Chapter 13 Trustee does not liquidate assets and is essentially a disbursing agent, paying your creditors, in accordance with certain statutory and Plan-mandated requirements, the funds received from you via your monthly Plan payments.  A Chapter 13 case is generally filed: to “save” a house from foreclosure; to protect assets that might be liquidated if a Chapter 7 were filed; or if a debtor is not eligible to file Chapter 7, usually due to “failing” the Means Test or having received a Chapter 7 Discharge in a case filed within the previous 8 years.  The legal fees in Chapter 13 are higher than in Chapter 7, and a client’s ability to financially maneuver and “wheel and deal” is somewhat reigned in during the 3-to-5-year duration of the Plan.  Mortgage payments, car payments and regular cost of living expenses that become due after the bankruptcy is filed are paid directly by the Chapter 13 debtor “outside the Plan”.

Alternatives to Bankruptcy

The most common bankruptcy alternative circulating these days is Debt Settlement. The business model these companies employ is fundamentally flawed and can only be successful in very narrow circumstances.  Many unhappy Debt Settlement customers contact this Law Firm trying to fix their mess made worse by their Debt Settlement company.  Debt Consolidation is another alternative, which involves repaying your creditors in full by taking out a new loan, at current interest rates.  Essentially you are just substituting one debt for another.  Debt Consolidation does not change your personal balance sheet at all, and seems to be the classic “zero sum game”.  These options can certainly be discussed with a prospective client, but bankruptcy attorney Michael O’Leary strongly feels that there are very few people who benefit from their services.

Benefits of Hiring a Local Bankruptcy Lawyer

Goshen NY bankruptcy lawyer Michael O’Leary is properly positioned to successfully prosecute your bankruptcy case from date of filing to date of discharge.   While the Bankruptcy Code is indeed a federal statute, many aspects of a Goshen NY bankruptcy case can turn on New York State law, particularly when it comes to the critical area of exemptions.  An attorney from a different jurisdiction, lacking total familiarity with the laws and practices of the Poughkeepsie Bankruptcy Court, can be at a distinct disadvantage in the handling of your case, and this disadvantage can prejudice the results a client obtains.  Having an attorney whose office is hours away makes in-person meetings very challenging to arrange and execute, and information exchanges through emails and other electronic means can be laborious and expensive.  Hiring experienced Goshen NY bankruptcy lawyer Michael O’Leary can benefit your case in many ways:

• Knowledge of the tendencies and preferences of both the Judge and the Trustee involved in your case; and
• Easy accessibility to your lawyer and his staff, making communications more reliable and dependable.

The importance of unfettered communication between a client and his attorney cannot be overstated, and is most difficult to achieve for an attorney operating from a distant location, given the limitations inherent in non-personal communications.

Calling 845-343-6227 to schedule a free consultation with experienced bankruptcy lawyer Michael O’Leary can be your first step toward achieving debt relief and financial recovery.