ABI Bankruptcy Blog Exchange » » Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law » July 2009

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Is a Short Sale a Reasonable Alternative to Foreclosure on Long Island?

Fri, 31 Jul 2009 08:15:38 -0700

Written by Craig D. Robins, Esq. Many Long Island homeowners have homes that are underwater, meaning that the homeowner owes more on the mortgage than what the home is worth. What are your options if your home is underwater and you can’t afford to make the mortgage payments any more? One frequently-discussed option is the short sale. What is a Short Sale? A short sale, also known as a compromise sale, is when the homeowner sells the property to a bonafide purchaser for less than what is owed on the mortgage. The only way to do this is to persuade the mortgagee that it is in their best interest to do so, and then get their consent. Short Sales are Very Difficult to Obtain With the advent of the sub-prime mortgage market and the increasing popularity of securitized mortgages, negotiating with mortgagees has become an exercise in frustration. No longer is it possible to make a simple call to a lender to discuss a short sale or mortgage modification. It is now necessary to go through many layers of committees that are often ill-equipped to make quick decisions, let alone any decision at all. During most of the past decade, my firm and I have refused to negotiate short sales and mortgage modifications because of the low likelihood of success. Even If a Short Sale is Possible, It is Often Not the Best Option If you have relatively few assets, it is often most advisable to simply file for Chapter 7 bankruptcy and walk away from the house, assuming that you’re eligible for a Chapter 7 filing. A special benefit arises from the way a Chapter 7 bankruptcy interacts with foreclosure law – You will often be able to stay in your home without making any mortgage payments for well over a year. If you have assets or high income, you might think that trying to negotiate a short sale is the way to go. Perhaps not. A lender is not about to let someone walk away from many tens of thousands of dollars or more – if they have the financial ability to pay off the difference later on. One thing is certain: meeting with an experienced Long Island foreclosure defense attorney who is also familiar with bankruptcy is a necessity to get good advice.

Long Island Foreclosure Case Dismissed! Written by Craig D. Robins, Esq. Mortgage Company messes...
New York Homeowners in Foreclosure May Get More Time Written by Craig D. Robins, Esq. This past September,...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: The Difference Between an Emergency Bankruptcy Filing and a Rush Bankruptcy Filing

Fri, 31 Jul 2009 05:00:39 -0700

Written by Craig D. Robins, Esq. Last week I wrote that a debtor can file an emergency bankruptcy petition within hours if necessary to stop a foreclosure sale, even though it is not wise to leave a bankruptcy filing until the 11th hour. See How Quick Can Bankruptcy Relief Be Obtained? . Upon thinking about this, I would like to distinguish the difference between an emergency filing, which is necessary to stop an immanent action, and a rush filing, which is usually done because the client is very anxious to file. We’ve had clients who wanted us to file their case almost immediately even though no emergency situation existed. I’ve learned over the years that clients should not rush the bankruptcy attorney, especially now that both debtor and attorney must comply with all of the various mandates of the new bankruptcy laws. In order to have a successful case, the bankruptcy attorney must sufficiently review all of the relevant facts and devote the appropriate amount of time to prepare the bankruptcy petition. Then, the attorney must review it with the client for accuracy. Obviously, in an emergency situation, not all of this is possible to the extent that would be advisable. But absent that, ensuring that the bankruptcy goes smoothly requires spending the necessary time prior to filing the petition. In any event, a good Long Island bankruptcy attorney such as our firm should be able to fully complete a petition and file it within days if the client has all of the necessary documents and information.

Consumer Bankruptcy: Handling the Emergency Filing Written by Craig D. Robins, Esq. Be Prepared for Emergency...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: We’re In For a New Wave of Corporate Bankruptcy on Long Island

Thu, 30 Jul 2009 16:30:31 -0700

Written by Craig D. Robins, Esq. Yesterday’s Businessweek Magazine contained an insightful article, “Bankruptcies: The Next Wave.” The author analyzed the current economy and stated that even though credit markets have improved somewhat as of late, and the American economy may be on the road to recovery, that won’t prevent a new run of corporate bankruptcies in the next year. Here’s why: too many companies loaded up with too much debt to survive the next year without defaulting on their debt obligations. As such, they will need to file for bankruptcy protection under Chapter 11. There is still too much debt on the balance sheets of corporate America. Banks gave many loans in 2007 when the economy was still strong. However, these loans are now coming due at a time when the economy is still weak and access to additional credit is very tight. The recent improvement in the stock market may make credit more available. However, banks will only make credit available to financially healthy companies, and not those who may need it the most. The article concluded by saying: “The irony is that a record number of troubled firms could tumble into bankruptcy next year, at the same time that the economy and credit markets start showing major signs of improvement.” Unfortunately, the wave of Chapter 11 bankruptcy filings will certainly hit Long Island, as it is home to a number of struggling companies, including retail and restaurants.

The Ominous Wave of Mounting Foreclosures . by Dean Webber, Esq. The Rise of...
Long Island Business Bankruptcy Filings Skyrocket Written by Craig D. Robins, Esq. Business bankruptcy...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Three Reasons Why a Chapter 7 Bankruptcy Case Can Go Bad

Thu, 30 Jul 2009 13:30:40 -0700

Written by Craig D. Robins, Esq. As long as a debtor is honest and straight-forward with their bankruptcy attorney about the facts of their case, and as long as the bankruptcy attorney is experienced and qualified to handle the case, there is very little that can go wrong with a consumer’s typical Chapter 7 bankruptcy filing. Based on my experience, the following situations are where a debtor can get into trouble: Reason #1: The debtor does not advise the attorney of all of their assets and liabilities and other information, and as a result, the petition is not accurate. If a trustee learns that the debtor withheld important information, the trustee can object to the debtor’s discharge. Reason #2: The debtor does not use a bankruptcy attorney and instead files a pro se petition. Bankruptcy law, practice and procedure is complicated enough for bankruptcy lawyers; it is even more difficult for the lay person to understand everything that is necessary for a bankruptcy case to go smoothly. Even if a debtor can prepare the petition on his own, there are still so many requirements under the new bankruptcy laws that it is very difficult to comply with all of them without knowing all of the particularities of the law. The bankruptcy court throws out many pro se bankruptcy cases because the pro se debtor does not do what they are required to do. Reason #3: The debtor employs an attorney who is not experienced in bankruptcy law. As indicated above, bankruptcy law has become rather complex and complicated and can result in a mine field of traps and pitfalls for the unwary. I’ve personally seen many, many debtors get into trouble because their bankruptcy petitions were filed by general practitioners who were not sufficiently versed in bankruptcy law. Knowing what assets are protected, knowing what documents must be filed and how, and knowing relevant deadlines are all very important aspects of practicing bankruptcy law which are not that easy to grasp for those who do not regularly practice in the bankruptcy court.

Three Main Reasons Why Creditors Will Not Object to Your Chapter 7 Bankruptcy Discharge, Even If They Have Grounds To Do So Written by Craig D. Robins, Esq. Objections to a...
The Inadvertently-Omitted Creditor in a Closed Chapter 7 Bankruptcy Case What happens if a Chapter 7 debtor realizes that he or...
The Means Test is Often the Key to a Successful Chapter 7 Bankruptcy Case Written by Craig D. Robins, Esq. Since the bankruptcy...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Chapter 7 Bankruptcy Trustee Kenneth Kirschenbaum and Nassau County District Attorney Fight Over Assets After Debtor Commits Suicide

Wed, 29 Jul 2009 03:15:02 -0700

Written by Craig D. Robins, Esq. Recent Decision by Judge Grossman settles matter for the time being

In July 2008, my friend and colleague, Long Island bankruptcy Attorney Scott R. Schneider, filed a typical Chapter 7 bankruptcy petition for a consumer debtor, Anthony J. Vitta, in the Central Islip Bankruptcy Court.

Nine months before, the debtor had been arrested by the Nassau County Police Department and charged with selling drugs. As part of that proceeding, Nassau County seized various assets that the debtor owned pursuant to the New York Civil Forfeiture law. In the month prior to filing the bankruptcy petition, the debtor pled guilty to felony charges and agreed to execute a stipulation of settlement which would permit Nassau County to keep the seized property. The trustee, Kenneth Kirschenbaum, who then learned about this, immediately brought an adversary proceeding against Nassau County, seeking a turnover of the seized property, alleging that it was property of the debtor’s bankruptcy estate. In October 2008, before the debtor could be sentenced, he committed suicide. What followed was a battle between trustee Kenneth Kirschenbaum and the County of Nassau. Nassau County argued that the debtor’s interest in the seized property was terminated when the debtor pled guilty and agreed to execute the stipulation to forfeit the property. Thus, the County argued, the debtor had no interest in the seized assets at the time the bankruptcy petition was filed. The bankruptcy trustee argued that the debtor had retained an interest in the assets at the time he filed for Chapter 7 bankruptcy relief and that these assets belonged in the debtor’s bankruptcy estate. In entertaining a motion for summary judgment in March 2009, Judge Robert E. Grossman concluded that the seized property was property of the debtor’s estate as of the date the bankruptcy petition was filed because the civil forfeiture proceeding did not divest the debtor of title to the property. Judge Grossman ordered Nassau County to turn over the assets to the bankruptcy trustee. Nassau County was not pleased at all with the decision. The County quickly brought a motion seeking reconsideration. The judge confirmed his prior conclusion in a written memorandum decision just released last week which denied the County’s motion. However, even though he reached the same result, he revised his rationale. Judge Grossman provided a fairly detailed legal analysis. As it turns out, New York state law provides that the death of a criminal defendant abates a criminal action. This then left the status of the forfeiture action up in the air. He distinguished the difference between pre-conviction and post-conviction forfeiture crimes. Since the criminal action against the debtor died with the debtor, so, too did the stipulation. Thus, the County no longer had a lien on the property. The matter may not be totally over, however. Judge Grossman permitted the County to commence a forfeiture action against the seized property, although he commented that Trustee Kirschenbaum has the right to assert any defenses it has under the Bankruptcy Code including those granted under Bankruptcy Code § 544(a). . Incidentally, the debtor received his discharge three weeks after he passed away.

Suffolk County Bankruptcy Attorney Written by Craig D. Robins, Esq. New Patchogue Bankruptcy...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Congress Considers Amending Bankruptcy Code to Make it Easier for Consumers to Discharge Medical Debt

Tue, 28 Jul 2009 18:03:00 -0700

Written by Craig D. Robins, Esq. This afternoon, the House Judiciary Subcommittee on Commercial and Administrative Law held a hearing examining the role that medical debt plays in consumer bankruptcy. The hearing, which was titled “Medical Debt - Is Our Healthcare System Bankrupting Americans?,” focused on a recent study I wrote about last week – Are Americans Being Driven Into Bankruptcy by the Health Crisis? The chairman, Congressman John Conyers, Jr. (D-MI), in his opening statement, said that he wanted to see, at the very least, revisions to the 2005 Bankruptcy Amendment Act, particularly with respect to debtors dealing with significant medical issues. He suggested eliminating the credit counseling requirement for such debtors, calling it a waste of time and money. He also wanted medical debt debtors to be relieved from the onerous means test requirements. President Obama previously suggested the need to re-write some of the bankruptcy law (see: Bankruptcy Change Under President-Elect Obama ). Hopefully we will see proposed legislation in the near future.

Special Bankruptcy Protection on the Way for Consumers with High Medical Debts Written by Craig D. Robins, Esq. Last week, a new...
How to Eliminate Medical Bills Written by Craig D. Robins, Esq. There is a cure...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Three Main Reasons Why Creditors Will Not Object to Your Chapter 7 Bankruptcy Discharge, Even If They Have Grounds To Do So

Tue, 28 Jul 2009 10:30:47 -0700

Written by Craig D. Robins, Esq. Objections to a bankruptcy discharge in a typical New York bankruptcy case are relatively rare. Technically, a creditor has the right to file objections if they feel the debtor engaged in fraudulent conduct regarding the way a debt was incurred, such as lying on a credit application. A creditor can object to a bankruptcy discharge by filing a lawsuit within the bankruptcy called an adversary proceeding. However, very few creditors will consider bringing an adversary proceeding, even if grounds for doing so exist. Here are three reasons why: 1. There were a number of cases earlier in the decade which raised the burden of proof that a credit card company or bank must show the bankruptcy court in order to prevail. 2. Adversary proceedings are not cheap. The creditor has to pay a court filing fee of several hundred dollars and they also have to hire bankruptcy counsel. 3. The judges in our district have very burdensome chambers rules for adversary proceedings which require an exceptional amount of work on the part of the bankruptcy attorney. The court expects the lawyers to do the same amount of legal work whether the case involves a $5,000 consumer credit card debt or a $1,000,000 Chapter 11 turnover action. Keep in mind that creditors, in recent years, have filed far fewer adversary proceedings in consumer bankruptcy cases in New York. Nevertheless, if they believe firmly enough in their position, they may still seek relief.

Protecting Your Client from Creditors Who Ignore the Discharge Written by Craig D. Robins, Esq. While I prepare some...
Three Reasons Why a Chapter 7 Bankruptcy Case Can Go Bad Written by Craig D. Robins, Esq. As long as...
A Primer on Adversary Proceedings Written by Craig D. Robins, Esq. Adversary Proceedings. Even what...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Can They Take the Shirt Off My Back In a Bankruptcy Proceeding?

Mon, 27 Jul 2009 12:00:55 -0700

Written by Craig D. Robins, Esq. Of course not. Clothing is protected. When you file for bankruptcyin the State of New York, a consumer can keep and protect a certain amount of clothing. Although there is a specific dollar amount for personal effects which include clothing, for all practical purposes, all usual and ordinary clothing is exempt and protected. The fact is that a trustee has no interest in trying to liquidate someone’s used duds. There are only two possible exceptions. One would be an expensive fur coat which actually has to be separately itemized on the schedule of assets in the bankruptcy petition. The other exception might be a collection of expensive designer dresses. . However, in over twenty years of representing consumer debtors, I have yet to file a bankruptcy case with either. A debtor will probably be able to keep even once-expensive designer clothes I did have one client several years ago whose husband, while he was working, earned several hundred thousand dollars a year. The wife had spent over $500,000 on designer clothes in the five-year period before they retained me. In fact, their largest creditor was Barneys, the famous New York clothing store, which was owed about $200,000. We never had to address how a trustee would handle the designer clothes because the matter was resolved without a bankruptcy filing. Looking at what happened to former vice-presidential candidate Sarah Palin’s designer clothes, which were very much in the news last fall, the Republican National Committee eventually determined that they only had nominal value and turned them all over to Goodwill, even though they had cost many tens of thousands of dollars. So chances are that even if a consumer who was previously affluent files for bankruptcy owning some designer clothes, the trustee will not care less about them. The bottom line: used designer clothes, even if they have potential value, are not easy to liquidate. Therefore, even if they may be technically non-exempt, a debtor will probably end up being able to keep them.

If Miss California Files Bankruptcy, What Kind of Bankruptcy Would She File? Written by Craig D. Robins, Esq. Using a hypothetical,...
The Chapter 7 Trustee’s Report of No Distribution [caption id="attachment_1338" align="alignleft" width="280" caption="Although Chapter 7 bankruptcy trustees...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: The Changing Psychology of Debtors Filing Chapter 7 Bankruptcy in New York

Mon, 27 Jul 2009 01:45:38 -0700

Written by Craig D. Robins, Esq. We are seeing new trends in New York Chapter 7 bankruptcy cases During the past half year, the psychology of clients meeting with us has changed dramatically. We are seeing more and more New York consumers who previously would never have contemplated a bankruptcy filing. Now they see Chapter 7 bankruptcy as a reasonable solution to their debt problems. These clients have always paid their bills on time and did not take risks. Unfortunately for them, however, they suffered a financial calamity: they were laid off from work or their hours were reduced, they became involved in matrimonial issues such as separation or divorce, or they encountered substantial unanticipated medical expense. Other clients experienced a sudden drastic increase in expenses caused by a rate change with an adjustable rate mortgage. And to make matters worse, many of these clients have homes that no longer have any equity. The fact is that in New York, especially Long Island, the high cost of living makes coping with a financial calamity extremely difficult, if not impossible. For those that are eligible, Chapter 7 bankruptcy can eliminate all credit card debt, medical bills, and many other financial obligations. It also enables homeowners to walk away from real estate that is no longer worth keeping. Consumers in New York and Long Island who have suffered a serious financial calamity should recognize bankruptcy as an option and explore its immediate and long-term benefits with an experienced bankruptcy lawyer.

Senior Citizens Are Filing Bankruptcy In Record Numbers Written by Craig D. Robins, Esq. More and more Long...
Are Americans Being Driven Into Bankruptcy by the Health Crisis? Written by Craig D. Robins, Esq. and Dean Weber, Esq.**...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Eliminates Obligations on Toxic Florida Real Estate Investments

Sun, 26 Jul 2009 19:46:38 -0700

Written by Craig D. Robins, Esq. During the real estate boom that ended about two years ago, numerous Long Island consumers gobbled up Florida real estate as an investment. Unfortunately, as we all know, the real estate bubble burst, especially in previously-red-hot real estate markets like South Florida, and almost every one of these investors lost their entire investment and more. During a time of “build it and they will come,” speculators ran rampant from around the nation, driving up the prices of Florida condominiums to a feverish pitch. Since then, the values of these units have dropped incredibly and many are worth much less than one-half of the original purchase price. In the past 18 months, our Long Island bankruptcy practice has helped numerous consumers who have suffered extreme losses from these Florida real estate investments, not to mention real estate investments in other previously-hot areas such as Las Vegas. In every case, the clients purchased the out-of-state real estate with financing, leaving open the possibility of large deficiency judgments from mortgage foreclosure proceedings. When the real estate values plummeted, the owners could not sell and were stuck. Our bankruptcy firm has filed a number of Chapter 7 bankruptcy cases for these New York residents, enabling the New York consumers to simply walk away, as well as eliminate their existing credit card debt. In every case, our client was successful in discharging their obligations on the investment properties. For those that have toxic real estate investments, it would be prudent to meet with an experienced bankruptcy attorney to discuss how a bankruptcy filing might offer a successful resolution and opportunity for a fresh new financial start.

Five Bankruptcy Practice Pointers to Deal with the Effects of the Real Estate Boom Most Long Island homes have doubled in value over the...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Can Federal Exemptions be Used in New York Bankruptcy Filings?

Sat, 25 Jul 2009 09:00:48 -0700

Written by Craig D. Robins, Esq. When a consumer files for bankruptcy relief, the bankruptcy laws permit him or her to keep and protect certain assets. These laws are called exemption statutes. There is a set of exemption provisions set forth in the Bankruptcy Code and they are called the Federal Exemptions. However, in 1978, Congress gave the legislature of each state, such as the state of New York, the ability to “opt out” of the federal exemptions. This is because for almost 200 years, there has been an issue over whether state rights should include the authority to regulate exemptions. Accordingly, each state can determine whether to use the Federal exemptions or their own state exemptions. New York has opted out of the Federal Exemptions I often meet with clients who have read up on bankruptcy law before coming to meet with us and many of them have expressed confusion over whether the federal exemptions apply in New York. Here in the state of New York, federal exemptions are not used or recognized. There are a number of different New York state statutes which contain exemption provisions. Some of these statutes include the New York Debtor and Creditor Law, the New York Insurance Law, and the New York Civil Practice Law and Rules (CPLR). Only 16 of the 50 states permit debtors to use the federal exemptions. The remaining states each have their own exemption statutes. For those readers who live outside of New York, here is a list of states that permit the federal exemptions: .

Arkansas
Connecticut
Hawaii
Kentucky
Massachusetts
Michigan
Minnesota
New Hampshire
New Jersey
New Mexico
Pennsylvania
Rhode Island
Texas
Vermont
Washington
Wisconsin

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Quick Can Bankruptcy Relief Be Obtained?

Fri, 24 Jul 2009 06:00:06 -0700

Written by Craig D. Robins, Esq. In a real emergency situation, bankruptcy relief can be obtained within hours. Although it is certainly not wise waiting until the last minute, there have been numerous times that a client has contacted one of our Long Island bankruptcy law offices the day before a scheduled foreclosure sale. Usually this happens when the client believes that the mortgage company will agree to postpone the foreclosure sale but the company does not do so. Under emergency filing conditions, we can file what is known as a “bare-bones” or “skeletal” petition — one with just the minimal number of pages necessary to obtain bankruptcy relief. The remaining schedules can then be filed the following week. However, the new bankruptcy laws that went into effect in 2005 have made emergency filings more difficult because of the additional obligations placed on both debtor and bankruptcy attorney. Nevertheless, an emergency bankruptcy filing can usually be accomplished.

Consumer Bankruptcy: Handling the Emergency Filing Written by Craig D. Robins, Esq. Be Prepared for Emergency...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: The Overdraft Trap: Banks Force Consumers Into Bankruptcy with Obscene Fees

Thu, 23 Jul 2009 14:15:28 -0700

. Written by Craig D. Robins, Esq. . Squeez’em ‘till they’re dry – that’s what the banks are doing to consumers with soaring overdraft fees Even though Congress and the Obama administration have been cracking down on banks that have fleeced the American public with abusive mortgage and credit card practices, the banks still continue to trap consumers with some outlandish fees. . . … … ….

Banks and credit card companies continue to beat up the public with unconscionable overdraft fees .

“Over-limit fees” weren’t enough. The banks have been charging even greater fees for what they euphemistically call the “courtesy overdraft fee” – a fee the bank charges customers for being able to charge when they don’t immediately have the money available to pay. Overdraft Fees Are Becoming Rampant Overdraft fees are the single largest source of fees for banks. This year, banks expect to earn an incredible $38 billion from overdraft fees, which is almost twice as much as the $20 billion they will earn from penalties such as late fees and over-limit fees. ABC’s Nightline recently highlighted the problems with overdraft fees which are pushing consumers deeper into debt in our difficult economy. USA Today also recently ran a cover story detailing the over-aggressive drive of banks to develop overdraft policies to milk the public. How Overdraft Fees Work A customer who already owes a balance fills up the gas tank, which purchase costs $30. However, the typical bank then charges an overdraft fee of $35. If the customer then makes a handful of other small charges the same day – say for a quick meal, some groceries and other incidentals, the fees for that one day will add up to $175 !!! This relates to an annual interest rate that can exceed 5,000 percent. Consequently, a typical consumer can be hit with fees in the many hundreds of dollars in a matter of days – fees which many consumers cannot afford to pay. Some banks even engage in sneaky practices such as charging consumers before they overdraw by deducting a purchase when it is made, rather than when it clears. This has the effect of pushing the account into the red even sooner. With such excessive fees, it is no wonder that many consumers cannot pay them and are driven to file for bankruptcy relief. In our Long Island bankruptcy practice, we see evidence of these outlandish fees on a daily basis. Legislators Are Being Forced to Introduce New Legislation to Curb Overdraft Fee Abuse Our own Congresswoman from New York, Rep. Carolyn Maloney (D-NY), is currently proposing legislation which will require banks to get consumers’ permission to cover overdrafts, disclose APRs and pay transactions in a way that does not increase fees.

Universal Credit Card Default Affects Many Long Island Consumers Written by Craig D. Robins, Esq. “Universal Default” is when...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Do I Get Away With Cheating On My Bankruptcy Petition?

Thu, 23 Jul 2009 07:15:25 -0700

Written by Craig D. Robins, Esq. I am sad to say that a few times each year a potential client asks me this question. However, the answer is quite simple. You cannot cheat on your bankruptcy petition. No winks; no baloney; no funny business. You simply cannot lie or cheat in a bankruptcy case. Americans are very fortunate that they have access to federal bankruptcy laws that enable them to eliminate debts and get a fresh new financial start. In doing so, they have to approach the bankruptcy filing in good faith; they have to be honest and accurate in listing their assets and liabilities; and they have to comply with their reasonable obligations as a bankruptcy debtor. Although it is rare, some potential clients have disclosed to me that they owned certain assets, but they were adamant that they did not want to list them in their bankruptcy petition. One potential client said he owned property located out of the country and that nobody would find out. I told these potential clients that they had to be totally honest in their petition. For those who did not agree, I refused to represent them and sent them on their way. An honest mistake is one thing, but cheating on a bankruptcy petition is something else. It is simply not acceptable.

Recent Decision Summarizes Consumer Debtor’s Obligation to Retain Documents and Explain Pre-Petition Loss of Assets Written by Craig D. Robins, Esq. I was most intrigued...
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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Are Americans Being Driven Into Bankruptcy by the Health Crisis?

Wed, 22 Jul 2009 20:30:30 -0700

Written by Craig D. Robins, Esq. and Dean Weber, Esq.**
. . . Too many consumers are insured but insufficiently protected resulting in an exodus to Chapter 7 bankruptcy to eliminate burdensome medical debt

It is well known that many consumers who have no health insurance are often forced to seek the protection that bankruptcy affords, as the result of huge medical bills. Hospital bills, not to mention doctor fees, can be catastrophic.

But, what about those who actually have health insurance? One might think that consumers who are covered would be pretty safe from large medical bills. Unfortunately, it turns out that this is often not the case according to a study recently highlighted by the New York Times that pointed out that too many people are underinsured: Insured, but Bankrupted by Health Crises. Said the Times article: “Health insurance is supposed to offer protection — both medically and financially. But as it turns out, an estimated three-quarters of people who are pushed into personal bankruptcy by medical problems actually had insurance when they got sick or were injured.” One reason is that many health insurance policies do not cover all aspects of medical treatment. Often, coverage is so meager, that financial calamity is but one negative diagnosis away. These “limited-coverage” policies are very common, and very often, the insured does not even realize that he or she is lacking decent coverage. Congress may soon pass legislation to make insurers issue much clearer-language policies – so that the insured is more aware of the policy’s serious limitations. One health economist, from the New America Foundation, said that, “conceptually, insurance means normal people should not go bankrupt from serious medical conditions.” However, there is no doubt that this is exactly what is happening, and people are well advised to check their health insurance policies so that they might better understand their coverage and perhaps better protect their financial well being. At our office, we have helped many debtors who were compelled to file Chapter 7 bankruptcy on Long Island because of their insurmountable medical debts. Just one serious operation can result in tens of thousands of dollars in bills. . Even to one with perfect credit, a large, unexpected medical debt can be impossible to handle. Fortunately, medical debt is fully dischargeable in a Chapter 7 case, and a bankruptcy filing can provide the ideal solution to an overwhelming medical debt problem. * **Dean Weber, Esq. is a full-time associate with our firm

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Much Can You Protect In an Individual Retirement Account (IRA) While Filing Bankruptcy in New York?

Wed, 22 Jul 2009 14:48:51 -0700

Written by Craig D. Robins, Esq. An individual retirement account is certainly exempt in a New York bankruptcy case. However, there is no clear-cut answer as to how much is exempt. The exemption statute that protects IRA accounts in New York is set forth in the New York Debtor and Creditor Law section 282(2)(e), which totally exempts IRA accounts “to the extent reasonably necessary to support the debtor and the debtor’s dependants.” Most consumers who file for bankruptcy in New York need not worry about this distinction. I have never seen a situation where a trustee has tried to go after an IRA with a value of a few hundred thousand dollars or less. Most consumers have IRAs that are worth much less than that. However, what issues would be involved with trying to ascertain if an IRA worth several hundred thousand dollars or more is exempt? Here the trustee, and ultimately the bankruptcy court, would look at the reasonableness of the debtor needing the full amount of the account. This would result in an analysis of the debtor’s factual situation. In interpreting the facts, the court would also look at Congressional intent and prior case law. Congress has decided that consumers should be able to protect over a million dollars in an Individual Retirement Account Let’s first look at what Congress recently determined to be reasonable. The 2005 Bankruptcy Amendment Act changed the federal exemption amount for IRA accounts (Code section 522(n)) by increasing it to $1,000,000 per individual. The Judicial Conference increased this amount again in February 2007 to $1,095,000. Although New York has opted out of the federal exemption scheme, which means that this provision does not apply to bankruptcy cases filed in New York, we cannot ignore Congress’s evaluation as to what a reasonable IRA exemption is. Congress determined that a reasonable amount is $1,095,000. As a matter of fact, the federal exemption is not even limited to $1,095,000. The federal statute provides that this amount can be increased “if the interests of justice so require.” We also need to be mindful of, and accommodate, the significantly strong legislative intent behind the policies and goals underlying the new laws to protect retirement accounts and encourage regular deposits into retirement accounts. This is demonstrated in the various provisions permitting deductions for retirement accounts in the means test. In other words, Congress made it clear that it wants consumers to have retirement accounts. Accordingly, the legislative intent is certainly to protect a large amount of funds in retirement accounts and encourage deposits into them. There has not been much New York case law on this issue since the bankruptcy laws changed in 2005. However, most trustee should be persuaded by the above argument. I have already convinced one aggressive trustee to leave a debtor alone whose family retirement accounts were half a million dollars.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Directions to Central Islip Bankruptcy Court - Long Island

Wed, 22 Jul 2009 07:47:18 -0700

Written by Craig D. Robins, Esq. The new Federal Courthouse in Central Islip opened in September 2000. Upon entering the Courthouse, you will need to go through a metal detector. VERY IMPORTANT: You are not permitted to take cellular phones into the building. The U.S. Marshal’s Service, which provides building security, will make you go back to your car to leave your cell phone there if you bring it into the building. They will only let you check it if you have no car. There is a coffee shop on the first floor of the Courthouse which serves breakfast and lunch, and pay phones on every floor. If you are going to court for your first bankruptcy hearing, it is called the Meeting of Creditors. They are always held in either room 561 or 563. You cannot miss the Federal Courthouse. It is the tallest building in Suffolk County and it is located in the same complex that contains the Suffolk County Supreme Court. It is a very large white building with an unusual-looking rotunda that looks like a missile silo. The building is located off Exit 43A on the Southern State Parkway and it is at the Northeast corner of Carleton Avenue and the Southern State Parkway. If coming from the West, take Southern State Parkway to Exit 43A. You will loop over Southern State Parkway. Please follow signs to the Court and into the parking lot. If coming from the North, take Route 111 which merges with Carleton Avenue. The Courthouse is on the left, approximately 2 ½ miles south of the Long Island Rail Road tracks in Central Islip. It is just before Southern State Parkway. If using the Long Island Rail Road, the station is the Central Islip station, but you will need taxi accommodations to go the 2 ½ miles south to the Courthouse. We tell our clients to time their travel so that they are at the Courthouse and in the hearing room at least 30 minutes before the scheduled hearing.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Your Employer Will Not Find Out If You File for Bankruptcy

Tue, 21 Jul 2009 20:40:05 -0700

Written by Craig D. Robins, Esq.

Some of my clients want to file for bankruptcy relief but are concerned that their employer will find out. The truth is that generally an employer will not find out that you filed for bankruptcy unless you choose to tell them.

Here’s why: the bankruptcy court does not get in touch with your employer and neither does the trustee. Bankruptcy notices are not sent to employers.

The only reason an employer would be included in your bankruptcy petition is if you owe money to your employer, thereby making the employer a creditor. However, this is exceptionally rare.

You should also know that it is against federal law for an employer to fire or discriminate against someone who seeks bankruptcy relief.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Over 99% of Our Long Island Chapter 7 Bankruptcy Clients Eliminate All of Their Credit Card Debt

Tue, 21 Jul 2009 08:45:55 -0700

Written by Craig D. Robins, Esq.

It true. When I recently looked at some of my bankruptcy law firm’s filing statistics I observed that over 99% of our Long Island consumer bankruptcy clients who we filed Chapter 7 bankruptcy petitons for have been successful in eliminating and discharging all of their credit card debt.

I must say that I was pretty pleased with those figures.

When we meet with a new client and recommend that they file a Chapter 7 bankruptcy petition, it means that we’ve thoroughly reviewed their case and firmly believe that it will go through smoothly.

An important part of any bankruptcy proceeding is having an experienced bankruptcy lawyer review the facts of the case to make sure that the bankruptcy filing is appropriate, that the debtor qualifies for Chapter 7 relief, that the information in the petition is truthful and accurate, and that there are no unusual factors that will become problematic.

For those consumers who are overwhelmed by credit card debt and are considering bankruptcy, they should only meet with a qualified bankruptcy attorney who has the experience and expertise to ensure that the case will produce the desired results.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Long Island Economy: Jobs Down; Unemployment Up; Bankruptcy Up

Mon, 20 Jul 2009 14:30:58 -0700

Written by Craig D. Robins, Esq. Long Island is going from bad to worse, causing many middle Americans on Long Island to seek bankruptcy relief Long Island is suffering big time, according to data just released by the New York State Labor Department. Long Island lost private-sector jobs at an annual rate of over 40,000 in the one-year period ending in June, 2008. What this means is that Long Island is experiencing job losses at a magnitude that it hasn’t seen since the recession in 1991. In addition, unemployment is at its highest rate since 1992 — 7.5 percent. This is a great increase from the levels we saw a year ago. Unemployment for June 2008 was only 4.7%. In the early 1990’s, Long Island suffered some of its highest unemployment losses as a result of the recession at the time and the closing and downsizing of many Long Island defense industry businesses. Now Long Island is suffering because of another recession and a severe economic downturn. Many consumers have no choice but to turn to bankruptcy as they are being battered by high debt combined with job insecurity. My Long Island bankruptcy practice is helping more white collar workers than ever before. According to the data, the largest job losses are in the retail and construction sectors.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: New York Bankruptcy Filing Statistics for Second Quarter of 2009

Mon, 20 Jul 2009 12:15:52 -0700

Written by Craig D. Robins, Esq. As the recession took hold of the economy, bankruptcy filings have surged from prior levels. As indicated in the chart below, which was based on data from Automated Access to Court Electronic Records (AACER) , New York had 28,623 bankruptcy filings in the first half of the year. Of those filings about 80% were Chapter 7 cases and 20% were Chapter 13 cases. Based on per capita filings, New York only ranks 37th among all states. The state with the most filings per capita was Nevada with 10.58 bankruptcies per capita

2009 Bankruptcies for New York
Ratio of filings
Cumulative 2009 filings	28,623
Filings per capita (1,000 people)	2.94
State rank based on per capita filings	37
Total population (July 1, 2008, estimated census)	19,490,297
Increase or decrease in per capita filings, 2009 (annualized) over 2008	0.54
Rank based on greatest annual per capita increase

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Why I Won’t Negotiate Loan Modifications

Mon, 20 Jul 2009 06:55:27 -0700

Written by Craig D. Robins, Esq. I used to do it but I won’t any more. I haven’t tried to negotiate a loan modification for years. It just isn’t worth it. Although my firm helps Long Island consumers with finding solutions to deal with mortgage arrears and foreclosure problems, we just will not do loan modifications. The reason we won’t do it is mostly related to the concept of “securitized mortgages.” Securitized Mortgages Make Loan Modifications Extremely Difficult Up until the past decade or so, a typical bank would provide a traditional mortgage that it would then collect payments on. Now, however, most banks sell their mortgages —often to an investment banker who assembles a large number of mortgages and sells interests in them to investors in the marketplace. These mortgages which are bundled together like this are described as having been “securitized.” They are being sold to investors as securities. But here’s how this becomes a major problem for the homeowner. The bank no longer has any responsibility for what happens with that mortgage after the bank sells it. The result is that the bank’s going to be rather indifferent about whether this is a good loan or a bad loan. The investors who bought the mortgages were never prepared to handle a great number of defaults and often don’t know what to do. They hire mortgage servicing companies to assist, but that creates an additional layer of bureaucracy. I have found all too often that it is almost impossible to expeditiously work out a loan modification with a securitized mortgage. Those Who Advertise Loan Modifications Are Usually Trying to Con the Consumer Unfortunately for consumers, that does not stop a unscrupulous companies from advertising that they can negotiate loan modifications. I have written extensively about these con artists. See Loan Modification Industry is a “Sham” Says Attorney General Cuomo ! and Can You Trust a Mortgage Modification Company?

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Married Consumers Can File for Bankruptcy With or Without the Spouse

Sun, 19 Jul 2009 20:55:12 -0700

Written by Craig D. Robins, Esq.

Some married people think that if they file for bankruptcy relief they must do so with their spouse. That is not true.

Whether you file a bankruptcy petition individually or jointly, it’s your choice. It’s not uncommon for one spouse to have most of the debt in their name only, in which case an individual filing would probably be best.

However, if both spouses are obligated on debts, they should file together.

It is not uncommon for us to meet with just one spouse because the other spouse is adamant against filing for bankruptcy. In these situations, there is no problem for just one spouse to file the bankruptcy petition.

An experienced bankruptcy attorney will thoroughly analyze a consumer’s financial situation and suggest whether a married couple should file an individual or a joint petition.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Suffolk County Bankruptcy Attorney

Sun, 19 Jul 2009 17:16:31 -0700

Written by Craig D. Robins, Esq. New Patchogue Bankruptcy Law Office in Suffolk County We are pleased to announce that we have recently opened a new office in Patchogue, Long Island to meet with our bankruptcy clients. . . We chose Patchogue because it is conveniently located to many of our Suffolk County clients. . 31 Oak Street, Suite 20 Patchogue, New York 11772 The Patchogue office is in addition to our other Suffolk County bankruptcy law office, which is in Commack. We continue to have two bankruptcy law offices in Nassau County, Long Island – Woodbury and Valley Stream. To make an appointment for a free bankruptcy consultation, please call us at (516) 496-0800.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Is Bankruptcy More Likely After Tax Season?

Sat, 18 Jul 2009 03:30:47 -0700

Written by Craig D. Robins, Esq. There may be a seasonal phenomenon of increased bankruptcy filings influenced by a rise in income-tax refunds It appears that many consumers rely heavily on using their tax refunds to catch up with overdue credit card bills and other financial responsibilities. But the tax refund season only stretches from March through June. So there isa likely relationship with curing credit card defaults in the spring when consumers receive their tax refunds. Several large banks who are facing difficulty in collecting overdue credit card accounts recently blamed the wane of tax refunds for their difficulties, but also pointed to the increase of unemployment. Consequently, there should be a rise in consumer bankruptcy filings in the summer and fall by consumers who need to eliminate their credit card debts. Consumers should be aware that in the state of New York, they can protect and exempt up to $2,500 per person of liquid assets in a bankruptcy proceeding. This includes entitlement to tax refunds, money in the bank and cash in the pocket. A husband and wife can thus protect a total of $5,000 of liquid assets in a bankruptcy case. Thus, for those consumers who have not yet received their tax refunds, they should think twice about using a tax refund to catch up with credit card debt if bankruptcy is a distinct possibility.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Long Island Business Bankruptcy Filings Skyrocket

Fri, 17 Jul 2009 16:35:50 -0700

Written by Craig D. Robins, Esq. Business bankruptcy filings on Long Island have increased substantially. A report in today’s Newsday highlighted the large number of new business bankruptcy filings here. There has been a 73% increase in business bankruptcy filings on Long Island in the 12 months ending march 31, over the same period last year. The actual number of bankruptcy filings during this period was 252. This rate is higher than the rate for the country, which was 59%. The article quoted Irwin Kellner, the chief economist for MarketWatch.com, who said the financial industry meltdown and resulting credit crunch have exacerbated the debt problem for businesses. “Many are having difficulty maintaining or renewing their credit lines,” he said.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Record Foreclosure Filings — Major National and Long Island News

Thu, 16 Jul 2009 23:30:31 -0700

Written by Craig D. Robins, Esq. There were articles yesterday, both in Newsday and USA Today about how foreclosures were continuing to set records despite the Obama administration’s efforts to help borrowers. Long Island Foreclosure Figures In Suffolk County, for the first half of this year, one out of every 155 households was facing foreclosure, while one out of every 166 Nassau County households was facing foreclosure, according to data released by RealtyTrac. This means that there were 3,512 Suffolk Foreclosures and 2,762 nassau foreclosures. This represents a 63.6% increase from last year. National Foreclosure Figures So far in 2009 there have been 1.9 million foreclosure filings in the first six months. This represents a 15% increase from last year, according to data from RealtyTrac. June was the fourth consecutive month that nationwide foreclosure filings exceeded 300,000. The Recession Continues The staggering level of foreclosures is further evidence that the recession is continuing. Americans and Long Island consumers continue to be victims of job losses and cutbacks. Falling home values also continue to plague consumers. It’s no wonder that we are seeing large increases in Chapter 13 bankruptcy filings by consumers to save homes from foreclosure.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Eight Steps to Cope with Emotional Issues During Bankruptcy

Thu, 16 Jul 2009 09:55:54 -0700

Written by Craig D. Robins, Esq. I represent hundreds of typical Long Island consumers each year with bankruptcy. Some find the process extremely smooth and look forward to the procedure that will enable them to feel that a major a burden has been lifted from their shoulders. Others, however, experience a certain amount of emotional anxiety about filing for bankruptcy. For those who may suffer from anxiety surrounding overwhelming debt and feel a sense of conflict in seeking bankruptcy relief, here is a eight-step process to make dealing with the emotions of bankruptcy easier. Also see the post I wrote last month — The Emotional Side of Debt and Bankruptcy . Step 1: If you are having feelings of financial failure, you may be experiencing a sense of embarrassment. You must understand that bankruptcy is not the end of the world. In fact, most bankruptcy proceedings go incredibly smoothly. My clients often say to me after their hearing, “Craig – Is that all there is to it?” Step 2: You may feel that consulting with an bankruptcy attorney for the first time can be difficult and agonizing. However, investigating your bankruptcy options is an important first step to learn the truth about how bankruptcy works and how it may help you. A good bankruptcy attorney is patient and understanding and will ensure that you understand how the process works. Step 3: You are not alone and you must keep the bankruptcy filing in perspective. You certainly aren’t the first person to go down this path and you definitely won’t be the last. For most of the past six years, over a million American consumers sought bankruptcy relief each year. Many tens of thousands file here in New York each year.

Step 4: You should stay focused on the reason you are filing for bankruptcy. This requires that you shake feelings of sadness to better control your emotions if you want to recover financially and get back on track. Step 5: Learn from your mistakes. Getting into debt can happen to the best of people. Sometimes a bad debt situation is caused by factors beyond your control; sometimes because of financial mismanagement. If so, learn from it and apply these lessons to your life in moving forward. No matter what caused your debt, consider it only a setback and not a failure. Step 6: Be positive with how you utilize your emotional energy about finances in the future. Rather than feel degraded and destroyed, ask yourself what you can do differently in the future. Step 7: Think about how a major burden will be lifted from your shoulders once you file your bankruptcy case. My clients often tell me that they can finally sleep at night just knowing that they’ve retained us to start the process. Once you file for bankruptcy, bill collectors stop calling and creditors cannot take any further legal action against you. Step 8: Think of bankruptcy as a tool. In many ways, bankruptcy is nothing more than a financial planning tool that the government makes available. Remind yourself of this and think of bankruptcy as taking a course of action to solve a particular problem.
At our office, we make the bankruptcy process as easy and stress-free as possible. If you are suffering from overwhelming debt, make an appointment with us today.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Avoiding Bankruptcy Can Be a Mistake

Tue, 14 Jul 2009 08:00:49 -0700

Written by Craig D. Robins, Esq. All too often I meet with a new client who tells me that they are trying to avoid bankruptcy. Despite the fact that they may have little or no equity in their home (if they own one), and despite the fact that they do not have any assets that can be lost in a bankruptcy, they have this negative opinion about bankruptcy and want to avoid it. But this is usually a mistake. Here’s what I tell them: Stop fighting it; bankruptcy makes way more sense than decimating retirement accounts and using up other assets which would be protected in bankruptcy anyway. Newsweek recently ran a great column by Jane Bryant Quinn, Newsweek’s personal-finance columnist, who said, “When people are in real trouble, they often wait too long to get the relief they need.” The column continued, “Bankruptcy is designed to give people with no other way out a fresh start.” Eliminating debts and moving on with your life is often the smartest move a debt-laden consumer can make. To those who qualify, Chapter 7 bankruptcy, which wipes out most debt, is the route to go. Chapter 7 bankruptcy generally eliminates all credit card debt. For those who are seeking to stop foreclosure, Chapter 13 bankruptcy, which enables the consumer to pay some or all of their debt through a payment-plan, may be the best route. Some people tell me that want to avoid bankruptcy because they think they have “perfect credit.” I help these clients understand that their priorities are misplaced. When you have overwhelming debt, your credit is probably shot anyway. Also, credit is not going to help you resolve your debt problems. Ironically, even though some clients express a desire to avoid bankruptcy, they are extremely angry about the penalties, interest and underhanded tactics of the credit card companies and their collection agencies. The first step to moving towards a debt-free future is meeting with a qualified bankruptcy attorney. Our Long Island bankruptcy offices provide free, confidential consultations.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Does a Credit Card Charge-Off Mean You’re Off the Hook?

Mon, 13 Jul 2009 13:21:24 -0700

Written by Craig D. Robins, Esq. Credit card companies wrote off a record amount of debt last month according to a recently-released report from Moody’s Credit Card Index. The amount of Americans’ credit card balances that banks wrote off in May 2009 as being uncollectible increased to a whopping 10.6% of the total $900 billion in outstanding balances. This is the highest charge-off rate in the twenty-year history of the index. What is a Charge-Off? When a credit card issuer is unable to collect on an account after a certain period of time, it is obligated to write the debt off its books as being uncollectible. This is called charging-off the account. Sometimes this is reported on one’s credit report. If Your Account is Charged Off, Does that Mean that the Bank Will Not Bother to Collect? Absolutely not! Charging-off is merely an accounting notation that the credit card company makes for the purposes of balancing its books and records. What typically happens is that the bank will sell the account to a collection company for about five or ten cents on the dollar. That collection company will aggressively try to collect by calling you, harassing you, and eventually suing you. . A charged-off account also remains on your credit report for the same period of time as any other delinquent account — seven years. No Matter what company ends up owning your charged-off account, it is still a legal liability. However, you can eliminate charged-off credit card debts with Chapter 7 bankruptcy, assuming that you are eligible. You can also negotiate rather reasonable settlements with the holder of the account. See Now May be the Time to Settle Debts with Your Credit Card Company. . One thing is certain. — if you have many charged-off accounts, then you have a serious enough debt situation to warrant immediately meeting with a qualified Long Island attorney who can advise you as to your bankruptcy and debt negotiation options.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Senior Citizens Are Filing Bankruptcy In Record Numbers

Thu, 09 Jul 2009 00:30:09 -0700

Written by Craig D. Robins, Esq. More and more Long Island seniors are eliminating their debts with bankruptcy Although our tough economic times are hurting people of all ages, I find senior citizens who are living on pensions and Social Security are struggling the most. They are often juggling medical credit card payments, medical debts and other obligations made difficult by Long Island’s high cost of living. AARP Report Shows Bankruptcy Rates Rising for Seniors According to a recently-released report by AARP, the rate of personal bankruptcy filings among those ages 65 or older grew by 125 percent, while the bankruptcy rate of seniors ages 75 to 84 jumped a stunning 433.3 percent. A large number of my clients consist of the elderly, and filing bankruptcy enables them to eliminate their debts and remove a great source of stress in their silver years. Economist Puts Some Blame on this Country’s Poor Pension Systems I recently discussed bankruptcy and the economy with Thomas J. Mackell Jr., a former Chairman of the Board of Directors of the Federal Reserve Bank of Richmond and a crusader for pension reform. See Former Federal Reserve Bank Chairman Points Out Disturbing News About Americans and their Pensions. Mr. Mackell said of senior citizens’ financial problems, “It’s frightening. It’s a horror story in the making. It will not get better. It will continue to get worse.” He continued, “We are facing a generation of boomers where 55 percent of them are ill-prepared economically to retire.” More and more Americans are finding that their debt obligations prevent them from retiring. However, it does not make sense for senior citizens to be slaves to their credit card debts when they can be eliminated easily in a Chapter 7 bankruptcy proceeding. I’ve counseled many Long Island senior citizens and am glad that I have been able to provide many with a means to reduce their stress and a way out of their financial burden.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Long Island Railroad Was In Bankruptcy

Wed, 08 Jul 2009 15:08:21 -0700

. Written by Craig D. Robins, Esq. Here is a fact that only a few historians probably know: The Long Island Railroad filed for bankruptcy in March, 1949. In the 1940’s, LIRR costs had greatly increased, but because of government regulation, railroads were not permitted to raise fares. In addition, in the years after World War II, the rise of the automobile and improved air travel caused passenger rail service to decline dramatically. These elements created great financial difficulty. At the time, the LIRR was owned by the Pennsylvania Rail Road. When the LIRR’s debts got to be too much, the Pennsylvania Rail Road stopped paying them and put the LIRR into bankruptcy. At the time of the bankruptcy, Pennsylvania transferred the LIRR to a subsidiary, the American Contract and Trust Company. Eventually, Governor Nelson Rockefeller created the MTA which took over the LIRR in 1966. Notes about the photograph: In the rare time that I take off from my Long Island bankruptcy practice, I like to take fine art photography images. I personally took this photograph at the Montauk Train Station in 2006. It was published by both The New York Times and Newsday, and it is in the permanent collection of the Long Island Museum in Stony Brook, where it won their first annual juried photograph competition in 2007 out of about 400 entrires.

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: What is a Conditional Order in a Chapter 13 Bankruptcy Case?

Mon, 06 Jul 2009 19:15:40 -0700

Written by Craig D. Robins, Esq. A “conditional order” can give a Chapter 13 debtor additional time to cure post-petition mortgage payments . Most consumers file for Chapter 13 bankruptcy relief to stop foreclosure. They use the Chapter 13 plan to pay back the mortgage arrears. If a debtor misses some payments after the bankruptcy is filed, the mortgagee will bring a motion to vacate the stay. When this happens, negotiating a conditional order with the mortgagee can often provide a reasonable resolution. Chapter 13 debtors sometimes fall behind with mortgage payments or trustee payments even when they have the best of good faith intentions. There are many reasons why a debtor can fall behind. Often unanticipated expenses — like a broken hot water boiler or covering the cost of a relative’s funeral — can mean the difference between being able to make mortgage payments or not. A debtor can also fall behind if his or her income is reduced as the result of sickness or loss of overtime. One way I often try to resolve the problem of post-petition mortgage arrears in my Long Island bankruptcy practice is to work out an arrangement with the attorneys for the mortgagee called a conditional order. A conditional order is basically an agreement that is “so-ordered” by the court, giving the debtor a certain period of time to do a particular act before the order can become effective. The conditional order typically provides that the debtor will cure the post-petition mortgage arrears by making extra payments for a period of up to six months. If the debtor fails to do so, the conditional order will provide that the bankruptcy stay will be lifted. Mortgage companies are not required to enter into conditional orders; however, most will do so. Conditional orders are only practical if the reason why the debtor has fallen behind is only temporary. If you are a Chapter 13 debtor who has fallen more than a month behind with your post-petition mortgage payments, you should immediately consult with your bankruptcy attorney to discuss resolving the problem — hopefully with a conditional order.

Long Island Foreclosure Case Dismissed! Written by Craig D. Robins, Esq. Mortgage Company messes...
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Litigating Against Abusive Mortgagees. Your Columnist Scores Big Win Against Mortgagee Who Filed Frivolous Motion Written by Craig D. Robins, Esq. A review of United...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Are Long Island Bankruptcy Judges Appointed?

Sun, 05 Jul 2009 06:30:44 -0700

Written by Craig D. Robins, Esq. There are three bankruptcy judges in the Central Islip Bankruptcy Court and four bankruptcy judges in the Brooklyn Bankruptcy Court. Each of these judges has been appointed for a 14-year term. Here’s how they got there. Bankruptcy court judges are federal judges. They are considered judicial officers of the U.S. District Court. Congress determines the number of bankruptcy judges in any jurisdiction. I previously wrote that this country’s bankruptcy judges are overwhelmed with cases because Congress has not designated any new bankruptcy judgeships since 1992 — see Are Bankruptcy Judges Overworked? . When there is a vacancy to an existing bankruptcy judgeship, as there was in the Central Islip Bankruptcy Court two years ago when Judge Cyganowski and Judge Bernstein retired, the Court of Appeals for our jurisdiction, which is the Second Circuit, advertises public notice and solicits applications on a national level. Applicants, who are typically bankruptcy attorneys, can then submit applications to become a bankruptcy judge. A screening committee which is set up by the Second Circuit Court of Appeals then reviews the applications and makes recommendations based on those individuals best qualified to serve as a bankruptcy judge. This committee consists of a panel of circuit judges and district court judges from our district. The screening committee will then make its final recommendations to a committee of judges in the Second Circuit Court of Appeals. A majority of judges in the Circuit Court then appoints the new judge. Several weeks thereafter, the chief circuit court judge will administer an oath to the candidate and swear in the new bankruptcy court judge.

Are Bankruptcy Judges Overworked? Written by Craig D. Robins, Esq. These days bankruptcy...
New Bankruptcy Judges Meet Bankruptcy Bar Written by Craig D. Robins, Esq. In my column last...
Ken Silverman Appointed Chapter 7 Trustee in Agape World Case Long Island Chapter 7 Bankruptcy Trustee Kenneth Silverman was appointed...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Long Island Bankruptcy Blog Profiled in Consumer Bankruptcy News

Fri, 03 Jul 2009 15:00:44 -0700

Written by Craig D. Robins, Esq. The publication Consumer Bankruptcy News featured my blog in an article about bankruptcy attorneys who use blogs to provide news, information and commentary to their clients and the public. Consumer Bankruptcy News is this country’s leading periodical for consumer bankruptcy attorneys. I was quoted several times in the article, which appeared in the July 2, 2009 issue. The article noted that as more people get their news from the Internet instead of from newspapers, potential clients are more comfortable learning about an attorney’s reputation from the attorney’s website and blog postings. The article also quoted Brigham Young University political science professor Richard Davis who said, “Blog readers still get most of their news from regular news sources, but they are concerned that they are not getting the whole side of the story there.” I will certainly endeavor to continue posting as much commentary and “inside information” as possible, in addition to the various other informational postings.

Today’s Newsday Cover Story Is About Long Island Foreclosure Scams Written by Craig D. Robins, Esq. Your blog...
Nine New Year’s Resolutions Consumer Bankruptcy Practitioners Should Make Written by Craig D. Robins With another New Year approaching,...

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» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Consumers with Solid Mortgages Facing Foreclosure

Thu, 02 Jul 2009 01:30:36 -0700

Written by Craig D. Robins, Esq. Even the least-risky mortgages are seeing a drastic increase in delinquencies as consumers are being laid off According to data just released by the Office of the Comptroller of the Currency, first-time foreclosure filings on prime mortgages more than doubled over the past year. Now 2.9% of all prime mortgages are in default. Prime mortgages are those that are considered least risky. About two-thirds of all U.S. mortgages are prime mortgages. It appears that mounting job losses are pushing more and more borrowers towards foreclosure. Even consumers with good credit are finding it difficult to make monthly payments when their income has decreased. Here on Long Island, consumers who have held the same job for well over a decade are being laid off. Depending on the particular facts, a bankruptcy filing may be the easiest and most efficient way to deal with the situation. . If a house is upside-down with no equity, now may be the time to walk away, rather than be a hostage to your home. Under the right circumstances, a bankruptcy filing can provide that option.

Long Island Has the Highest Foreclosure Rate in New York State Written by Craig D. Robins, Esq. Whatever benefits...
Record Foreclosure Filings — Major National and Long Island News Written by Craig D. Robins, Esq. There were articles...
Today’s Newsday Cover Story Is About Long Island Foreclosure Scams Written by Craig D. Robins, Esq. Your blog...

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