Written by Craig D. Robins, Esq.
Individual Bankruptcy filings have continued to increase this year, bringing the filings for those overwhelmed by consumer debt to new highs since the bankruptcy laws were overhauled in 2005.
Nationally, the 135,913 consumer bankruptcy filings in October represented a 27.9 percent increase over last October’s monthly total of 106,266.
The above graph, courtesy of the Calculated Risk Blog, shows consumer filings on a quarterly basis going back to 1996. We are now approaching the levels seen just prior to when the bankruptcy laws were changed in October 2005.
The filings have increased virtually every single quarter since 2006. I previously wrote about Bankruptcy Filings Returning to Pre-Amendment Levels .
Through October, there have been 1.18 million personal bankruptcy filings in the U.S.
Related posts:
- Bankruptcy Filings Returning to Pre-Amendment Levels Written by Craig D. Robins, Esq. Last month,...
- National Bankruptcy Filings See Major Increase Written by Craig D. Robins, Esq. Even though some...
- Rate of National Bankruptcy Filings Now Over One Million a Year Written by Craig D. Robins, Esq. A few weeks...
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Written by Craig D. Robins, Esq.
Law Firm of Bill Collectors Dissolves Amid Law Suits Alleging that the Collection Firm Engaged in Fraud
I previously wrote about debt collector law firms in New York that had gotten in trouble with the law. 
Written by Craig D. Robins, Esq.
Possible New Bankruptcy Chapter for Companies “Too Big To Fail”
We are all familiar with bankruptcy Chapters 7, 11 and 13. Then there’s Chapter 9 for municipalities, Chapter 12 for farmers, and rather recently, 
Written by Craig D. Robins, Esq.
The two major reasons why people who know they need to file for bankruptcy, but put off doing so, is anxiety about filing, and concern about paying the legal fees.
Some consumers consider filing themselves. However, this can be a major mistake and create additional problems. Here’s why:
In every bankruptcy case, the debtor must appear before a court-appointed trustee. The trustee is not your friend. To the contrary, the essential purpose of the trustee is to investigate the debtor and determine if there are any assets that can be taken for the benefit of creditors. Meeting with an experienced bankruptcy attorney will enable the debtor to have his or her assets reviewed.
What many debtors do not realize is that certain conduct that may have occurred years before filing can have a major impact. For example, giving away assets or transferring an interest in real estate can result in significant litigation in the bankruptcy case. Such matters are regularly reviewed by bankruptcy counsel before a bankruptcy petition is filed. There are many reasons 
Written by Craig D. Robins, Esq.
What happens when you take two spirited six-year-old boys who love to use their imagination and pretend to be Power Rangers, and it also happens that both of their fathers are bankruptcy attorneys?
Why, you get Super Ninja Bankruptcy Attorneys!
My son went through a faze where he couldn’t get enough of the ”Power Rangers” television program. He would often pretend to be a Power Ranger, which is a seemingly ordinary individual who morphs into a powerful, costumed superhero.
Add to the mix visiting Daddy’s bankruptcy law office, seeing Daddy come home “costumed” in his suit and toting his briefcase, and hearing Daddy talk a lot about this thing called, “bankruptcy.”
So about three years ago, my son, Max, while playing with his best friend, Sam, came up with the idea that they were Super Ninja Bankruptcy Attorneys. Sam is the son of former Brooklyn Chapter 13 trustee 
Written by Craig D. Robins, Esq.
My friend, Steven Horowitz, the originator of the 
Written by Craig D. Robins, Esq.
For many, purchasing a home in the past few years with no money down was the way to go. Now, however, with real estate values plummeting, many homeowners are finding themselves owing substantially more than their homes are worth. This is a concept I’ve focused on repeatedly in many blog posts over the past several months.
The concept of taking a loss with such real estate purchases has to do with leveraging — putting very little down, but purchasing a lot.
When property values are increasing, the homeowner is considered a winner. However, with the collapse of real estate values, often combined with an increase in the costs of monthly mortgage payments because of adjustable-rate mortgages, the costs of home ownership become especially difficult.
Homeowners faced with this pressure have to make a decision as to whether it is worth it to keep their home if they can barely afford to pay the mortgage and they have absolutely no equity at all.
Our Long Island bankruptcy attorneys help counsel homeowners with exploring the various options. To those who qualify, a bankruptcy can provide an opportunity to walk away from over-leveraged bad real estate without any future liability.
Written by Craig D. Robins, Esq.
The instant a bankruptcy petition is filed, an “automatic bankruptcy stay” goes into effect, making it illegal under federal law for creditors to take any further steps to collect on a debt. This is the first step to getting debt relief in any bankruptcy case.
So who notifies the bill collectors and creditors about the bankruptcy filing, and how do they find out that you filed for bankruptcy? I previously wrote: 
Written by Craig D. Robins, Esq.
If you have a Fannie Mae mortgage, are delinquent with your mortgage payments, and are headed towards losing your house in foreclosure, you may be able to get a temporary break. A new program entitled, “Deed for Lease” permits homeowners to transfer the deed to their house to Fannie Mae and sign a one-year lease. The program was just announced two days ago.
Why would Fannie Mae do this? The foreclosure process is usually lengthy and time-consuming. This program will permit families to stay in their homes (albeit for a limited period of time) and avoid the uncertainty of foreclosure.
However, the program is not for everyone. There is a detailed application process and you must be approved. Also, the program only applies to Fannie Mae mortgages.
Is the “Deed for Lease” program better than filing bankruptcy or engaging in foreclosure defense? Only an experienced bankruptcy attorney can really help answer that question. There are pros and cons with all options. The “Deed for Lease” program means losing your home — for good. On the other hand, filing a Chapter 13 bankruptcy enables the homeowner to cure the mortgage arrears over time and keep the home.
The program also guarantees a minimum one-year rental period, which also calls for a monthly rental payment. However, defending a foreclosure proceeding (assuming that there is a reasonable foreclosure defense) can often provide the homeowner with an even longer period to stay in the home, during which time the homeowner does not make any rent, mortgage or real estate tax payments. In the program, you would have to pay “market rate” for rent, which could be fairly pricey. For a typical Long Island home, that could easily be $2,000 per month or more.
Finally, even if the program sounds good for you, there is no guarantee that you will be accepted into it, and the approval process can take some time — and all the while the mortgagee can continue a foreclosure proceeding.
Of course, if the bank takes back a deed in exchange for a lease, the homeowner is off the hook for any mortgage deficiency. However, keep in mind that a Chapter 7 bankruptcy filing in New York would discharge such a deficiency.
If you’ve already filed for bankruptcy, you are not eligible for the program.
How do I know if I have a Fannie Mae mortgage? Fannie Mae has a website that enables you to look up your property to see: 
Written by Craig D. Robins, Esq.
If a trustee in a Chapter 7 case comes across a significant asset that is not exempt, the trustee will first solicit an offer from the debtor. If the debtor is interested in keeping the asset, then the debtor will negotiate to purchase the debtor’s interest.
What happens if the debtor is not interested or can’t afford to purchase the asset? Then the trustee will try to sell it.
In order to do so, the Chapter 7 trustee must give notice to all creditors and interested parties listed in the petition.
The trustee can then determine how the asset will be sold. It can be through a broker or an auctioneer. The trustee can also publish a notice indicating that the sale will be in his office, or that the item will be sold to the highest bid received by a certain date.
In order for the trustee to accept a bid, even if the only party making the offer is the debtor, the trustee must seek bankruptcy court approval. In some instances, the trustee will structure the sale so that it is subject to a higher or better offer.
Once the trustee sells the asset, then he has good amount of paperwork to do.
You may be interested in a related post I wrote: 
Written by Craig D. Robins, Esq.
Last week I wrote a post in which I said that 
Written by Craig D. Robins, Esq.
The simple answer is that all income of any kind must be disclosed in a bankruptcy filing. Some clients think that because they “work off the books” they don’t have to disclose that income. That’s certainly not the case. All income must be disclosed — no matter how it is received.
In addition to salary and earnings from employment, all other types of income must be disclosed as well. These include:
.