ABI Bankruptcy Blog Exchange » Items by Craig

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: It’s Time for Bankruptcy Songs

Sun, 15 Nov 2009 19:45:00 -0800

Written by Craig D. Robins, Esq. My friend, Steven Horowitz, the originator of the Bankruptcy Bill and BAPCPA Man bankruptcy comic strips, recently announced a bankruptcy song contest. Although practicing bankruptcy is usually serious business, it’s still fun to make light of its humorous aspects. I’m considering entering the song contest. In the meantime, I will post some already-written bankruptcy songs. Here is one by Michael Silverstein, who was previously a senior editor with Bloomberg Financial News. He wrote this to make light of how consumers were hurrying to file their bankruptcy petitions before the law changed in 2005.

The Bankruptcy Song
(To be sung to the tune of
“My Bonnie Lies Over The Ocean”)

To bankruptcy court I am fleeing,
This cop out is calling to me,
I’ve spoken to Irv my accountant,
He says it’s my best strategy.
Bankrupt, bankrupt,
There’s creditors at my front door,
My door;
Need a,
Court date,
Before Congress changes the law. The stock market took down my savings,
It’s years since I got my last raise,
My bills keep on growing like fungus,
There’s just one way out of this maze. Bankrupt, bankrupt,
There’s creditors at my front door,
My door;
Need a,
Court date,
Before Congress changes the law. I’m woefully overextended,
When the phone rings I shake and I twitch,
The gap twixt my debts and my assets,
Makes the Grand Canyon look like a ditch. Bankrupt, bankrupt,
There’s creditors at my front door,
My door;
Need a,
Court date,
Before Congress changes the law. To see more of Michael’s funny songs and poetry, which emphasize satirical verse about financial themes, check out his website: [www.wallstreetpoet.com].

No related posts.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Can Provide Way Out of Bad, Highly-Leveraged Real Estate

Tue, 10 Nov 2009 01:30:16 -0800

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.

Bankruptcy Eliminates Obligations on Toxic Florida Real Estate Investments Written by Craig D. Robins, Esq. During the real...
Five Bankruptcy Practice Pointers to Deal with the Effects of the Real Estate Boom Most Long Island homes have doubled in value over the...
Real Estate Financing Options for Your Bankruptcy Clients Written by Craig D. Robins, Esq. We have now seen...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Do Creditors Find Out About a Bankruptcy Filing?

Mon, 09 Nov 2009 03:00:47 -0800

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: How Quick Will Creditors Stop Calling Me If I File Bankruptcy? Once the bankruptcy petition is filed with the bankruptcy court, the Court sends out a “Notice of Commencement” form which, in a Chapter 7 case, is also known as a “Notice of Chapter 7 Case, Meeting of Creditors and Deadlines.” This notice is uniform throughout the country as it is on Official Form 9A. The court typically mails the notice between two and four days after the petition is filed. The Court sends the notice to all creditors and interested parties listed in the petition. Thus, it is important to make sure that you provide correct and accurate addresses for all creditors in the petition. The notice contains your name and address; your Social Security number; the date of filing; the name and address of the bankruptcy court where the case is pending; the chapter of bankruptcy you filed for relief under (usually Chapter 7 or Chapter 13); the name of the judge; the name, address and phone number of the trustee; the date, time and location for the meeting of creditors; the deadline for filing objections to discharge; the deadline for filing objections to exemptions; a notation as to whether a “presumption of abuse” exists (in Chapter 7 cases); a notice to creditors that they may not engage in collection actions; and a schedule of explanations of common bankruptcy terms and concepts. This notice is the only time the Court will send a creditor any documentation containing your Social Security number. Violating the automatic bankruptcy stay is a very serious offense. What Are Your Rights If a Creditor Violates the Automatic Bankruptcy Stay? If creditors call you after filing because they have not yet received this notice, you can tell them that you filed for bankruptcy and give them the chapter (usually 7 or 13), the case number, and the name of the Court. For most of my clients that would be “the Bankruptcy Court for the Eastern District of New York.”

How Quick Will Creditors Stop Calling Me If I File Bankruptcy? Written by Craig D. Robins, Esq. When any bankruptcy...
Will Creditors Show Up For My Hearing In Bankruptcy Court? Written by Craig D. Robins, Esq. Whether you file...
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...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: New Fannie Mae “Deed for Lease” Program May Be an Alternative to Foreclosure But It May Not Be the Best Choice for Many Homeowners

Fri, 06 Nov 2009 20:15:53 -0800

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: [loanlookup.fanniemae.com]. What are the details of the “Deed for Lease” program?

The mortgage servicer has to decide that the homeowner qualifies for a “deed in lieu of foreclosure.” Basically, borrowers who are in default on their loan voluntarily give the deed back to the lender, negating the need for a drawn-out foreclosure process. Traditionally this has been considered less damaging to the borrower than foreclosure, although both actions have severe effects on a borrower’s credit standing–and both result in loss of their home.

Borrowers-turned-tenants must be able to afford market rent on the home. That rent can’t exceed 31 percent of their monthly gross income, which must be documented.

Borrowers cannot have 12 or more past-due payments on their mortgage. And they must have made at least three payments since the loan was first taken out–or since the last time it was modified. Borrowers can’t be in the process of declaring bankruptcy.

Rentals are for 12 months, with the possibility of an extension.

The home remains available for sale, subject to the terms of their lease. Renters remain responsible for maintaining the property.

Only primary residences qualify. Landlords may qualify if their tenant has been using the home as a primary residence.

Mortgages backed by the FHA, VA or other government agencies don’t qualify.

Borrowers who think they might qualify for the new rent-back program should talk with their mortgage servicers, who, in conjunction with Fannie Mae, will figure out if they qualify for a rent-back offer.

Is a Short Sale a Reasonable Alternative to Foreclosure on Long Island? Written by Craig D. Robins, Esq. Many Long Island...
New York Homeowners in Foreclosure May Get More Time Written by Craig D. Robins, Esq. This past September,...
Long Island Foreclosure Case Dismissed! Written by Craig D. Robins, Esq. Mortgage Company messes...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Credit Card Debt Collectors Ripped in Federal Report

Fri, 06 Nov 2009 04:00:21 -0800

Many debt collectors are downright evil!

Written by Craig D. Robins, Esq. Two weeks ago the Government Accounting Office (GAO) issued a scathing report about the illicit practices of bill collectors. Of course, this is a regular complaint that I hear from my Long Island bankruptcy clients. The GAO has been asked by Congress to examine federal and state consumer protections statutes to see if they were working. They concluded that they were not and reported back to Congress that the Fair Debt Collection Practices Act (FDCPA) should be amended to provide consumers with better protection. Like, tell us something we don’t know! The report, Credit Cards: Fair Debt Collection Practices Act Could Better Reflect the Evolving Debt Collection Marketplace and Use of Technology, is interesting reading and 66 pages long. The Federal Trade Commission (FTC) receives more complaints about bill collectors and the debt collection industry than any other industry. Last year they received 79,000 complaints on third-party debt collectors. This is almost 19 percent of all of the complaints it received. Ongoing abusive practices include trying to collect debt that isn’t owed or is beyond the statute of limitations, making harassing phone calls, threatening to make arrests that the debt collector has no authority to make, and collecting debt discharged in bankruptcy. I previously wrote about efforts here in New York to deal with the problem of rogue bill collectors: Debt Collectors Shut Down by Attorney General . Hopefully, Congress will indeed make the debt collection laws stricter to prevent the abuse that we hear so often.

Can Credit Card Companies Trust the Collection Firms They Hire? Written by Craig D. Robins, Esq. Law Firm of...
Debt Collectors Shut Down by Attorney General Written by Craig D. Robins, Esq. . Andrew Cuomo...
New York Commences Nationwide Investigation Into Debt Settlement Industry — Many Offers to Eliminate Credit Card Debt are False and Misleading [caption id="attachment_2222" align="alignright" width="280" caption="Rogue debt settlement companies...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Does a Chapter 7 Bankruptcy Trustee Sell Assets

Thu, 05 Nov 2009 19:55:42 -0800

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: How Much Do Chapter 7 Bankruptcy Trustees Get Paid? What are typical assets that a Chapter 7 trustee may sell? These can be cars, jewelry, collectibles, homes, and even baseball tickets. However, a good experienced Chapter 7 bankruptcy attorney will properly guide the client to make sure that there are no unprotected assets. Also, Sometimes Debtors Can Keep Non-Exempt Assets in Chapter 7 Bankruptcy Cases . . Read The Back-Door Politics Behind Trustees Pursuing Non-Exempt Assets. . For those considering filing bankruptcy in New York, here is a list of the most common Bankruptcy Exemptions in New York .

Sometimes Debtors Can Keep Non-Exempt Assets in Chapter 7 Bankruptcy Cases Written by Craig D. Robins, Esq. The bankruptcy laws...
The Back-Door Politics Behind Trustees Pursuing Non-Exempt Assets Written by Craig D. Robins, Esq. I recently attended...
Why Consumer Debtors Can’t Transfer Assets Like a House or Car Before Filing Bankruptcy on Long Island Written by Craig D. Robins, Esq. If every person could transfer...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Woman Gets Bankruptcy Discharge Without Having to Show Any Photo Identification

Mon, 02 Nov 2009 17:00:58 -0800

Written by Craig D. Robins, Esq. Last week I wrote a post in which I said that You Need Certain Identification to File for Bankruptcy . I did have one unusual case in which my client could not obtain the necessary photo ID. Several years ago I represented a disabled woman through the Volunteer Lawyers Project. She had no photo identification when she came to my office and had never driven a car in her life. In addition, she had never worked. As you can imagine, she never received a driver’s license or any other kind of photo identification. I sent her to the NYS Department of Motor Vehicles to get an official New York State identification card, but they refused to give her one because she had no other sources of identification to prove who she was. When I filed her bankruptcy case in the Central Islip Bankruptcy Court, the Chapter 7 trustee, Allan B. Mendelsohn, eventually agreed to examine her at the meeting of creditors, but did not officially close the meeting. I then brought a motion to waive the identification requirements after reviewing the matter with the Office of the United States Trustee. The motion was granted, the trustee closed the meeting of creditors, and the debtor received her discharge.

You Need Certain Identification to File for Bankruptcy Written by Craig D. Robins, Esq. Everyone who files...
Will Creditors Show Up For My Hearing In Bankruptcy Court? Written by Craig D. Robins, Esq. Whether you file...
Everything That Can Go Wrong With the Meeting of Creditors. Part One: Common Problems Written by Craig D. Robins, Esq. What the Meeting of...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: What Income Has to be Disclosed in a Bankruptcy Petition?

Sun, 01 Nov 2009 04:00:18 -0800

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: .

Rental Income
Business Income
Investment Income
Child Support, Alimony, and Maintenance
Gambling Winnings
Pensions and Retirement Income
Individual Retirement Account (IRA) Withdrawals
Life Insurance Policy Withdrawals
Money received through Inheritance
Social Security / SSDI Benefits
Disability Payments
Unemployment Insurance Proceeds
Workman’s Compensation
Food Stamps or Welfare
Annuity payments
Regular Contributions from others in the household
Payment on Notes and Mortgages you own

Even though all income must be disclosed, that doesn’t necessarily mean that all of it must be included in the means test. For example, Social Security payments do not fit into the means test calculation. There can be strict penalties for failing to accurately disclose all of your income. They include having your bankruptcy petition dismissed or being denied a discharge. Consumers have a great opportunity to discharge their debts with bankruptcy. It’s not worth messing around and jeopardizing your ability to eliminate your debts by neglecting to reveal everything.

Cash Advances Are Not Pre-Petition Income Recent Case Further Defines Means Test Criteria by Craig D....
Can You File Chapter 7 Bankruptcy on Long Island With a Family Income of $200,000 a Year? Written by Craig D. Robins, Esq. . … ....
If I Make Over $100,000 a Year, Can I Eliminate Credit Cards Debts in Bankruptcy? Many High Income Families on Long Island are Eliminating Debts...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Cartoon Strip BAPCPA Man — Bankruptcy & Halloween

Fri, 30 Oct 2009 21:15:07 -0700

. . BAPCPA Man Pokes Fun at the Poorly-Written Bankruptcy Amendments! Written by Craig D. Robins, Esq. . I am pleased to post antoher cartoon strip of BAPCPA MAN, the new comic strip from New York bankruptcy attorney Steven Horowitz and and artist Gideon Kendall. Here is strip number 13. BAPCPA MAN is designed to entertain both consumers and bankruptcy attorneys. . Steve and Gideon originally came up with the well-received Bankruptcy Bill cartoon strips, about a hapless New York City bankruptcy attorney associate at a large bankruptcy firm. “BAPCPA”, an acronym universally known to all bankruptcy attorneys, stands for The Bankruptcy Abuse Prevention and Consumer Protection Act. This is the new bankruptcy law that went into effect in 2005. The strips seek to educate consumers, humor attorneys, and will also try to poke fun at some of the more ridiculous requirements of the new bankruptcy law. Please check out the Bankruptcy Bill and BAPCPA Man Website which now has references and links to other bankruptcy blogs around the country. . The strip is posted with permission from Bankruptcy Bill.

BAPCPA Man — The Bankruptcy Cartoon Strip (#4) Bankruptcy Can Be Humorous! Written by Craig D....
Bankruptcy Cartoon Strip BAPCPA Man — #5 . BAPCPA Man Shows that Bankruptcy Can Be Humorous!...
Bankruptcy Cartoon Strip BAPCPA Man — #6 . . BAPCPA Man Shows that Bankruptcy Can Be Humorous!...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: You Need Certain Identification to File for Bankruptcy

Fri, 30 Oct 2009 01:00:42 -0700

Written by Craig D. Robins, Esq. Everyone who files for personal bankruptcy must produce identification. You are not required to produce identification at the time of filing, but at the meeting of creditors which occurs one month later. However, any experienced bankruptcy attorney will want to see that ID from the outset. The Office of the United States Trustee adopted a policy in 2002 in which individuals are required to identify themselves with picture identification (typically a driver’s license) and proof of correct Social Security number (typically a Social Security card). However, other forms of proof are acceptable as well. According to instructions about identification issued by the Office of the United States Trustee, Chapter 7 and Chapter 13 trustees should also accept the following items as acceptable forms of photographic identification: passport, legal resident alien card, military identification, or state-issued photo identification card. Satisfactory proof of Social Security number can be also demonstrated with the following documents as long as they contain the full Social Security number and full name of the debtor: pay stub, health care card, any correspondence from the Social Security Administration, or a current W-2. I’ve actually attended hearings in which I observed some local trustees in the Central Islip Courthouse being unaware that a debtor can furnish proof of Social Security number with some of the above documents. Hopefully all of the trustees have become aware of the U.S. Trustee’s policies by now. If the debtor does not have photo identification and proof of Social Security number with them when they appear before the trustee at the meeting of creditors, the trustee can refuse to examine them. In my practice, I require all clients to provide me with their driver’s license and Social Security card at the initial intake. I then make a legible photocopy and place it in the file. On numerous occasions these copies have saved the day when the client forgot to bring their ID to the court. Also, by reviewing the debtor’s identification early on, I have time to enable the debtor to obtain satisfactory identification there is a problem with it.

Woman Gets Bankruptcy Discharge Without Having to Show Any Photo Identification Written by Craig D. Robins, Esq. Last week I...
Everything That Can Go Wrong With the Meeting of Creditors. Part One: Common Problems Written by Craig D. Robins, Esq. What the Meeting of...
You Can Bring Your Own Security Guard to the Meeting of Creditors Written by Craig D. Robins, Esq. The United States...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Reading the Bankruptcy Petition

Thu, 29 Oct 2009 03:30:24 -0700

Reading the bankruptcy petition before signing it is very important!

Written by Craig D. Robins, Esq. While waiting for my bankruptcy cases to be called, I always observe the hearings that are heard before mine. Lately I’ve seen a lot of debtors who were represented by other attorneys get into trouble because they neglected to read their bankruptcy petitions and were unaware of factual errors or omissions that they contained. A completed bankruptcy petition is rather lengthy and probably not the most exciting material to read. However, by signing it, you are indicating that you not only read it, but that all information therein is true and correct. Each bankruptcy hearing at the meeting of creditors begins with the trustee asking the debtor if they read the bankruptcy petition before having signed it, and if everything in the petition is true and correct. I can’t tell you how many times I’ve seen trustees getting very upset at debtors because their petitions weren’t accurate. Debtors would tell the trustee, “I don’t know how that information got in there, because it’s not correct,” only to later admit they neglected to read the petition. When important information if missing from the petition which could have been easily caught, the debtor’s credibility is greatly reduced. In a worse-case scenario, the trustee can allege that the debtor was engaging in fraudulent and deceptive conduct. This is why I insist that my clients read every page of their petition before signing it. Clients sometimes say, “I trust you; I know you did a good job in preparing the papers; I don’t have to read them.” That doesn’t fly in my office. Every client must read their petition and understand it. Remember, by signing the petition, you are representing to the court that you have read it and that the contents of it are true. Bankruptcy provides great benefits. Don’t squander them by being lazy or careless.

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...
Pro Se Debtor, Deodath Ramcharan, Files Chapter 11 Petition Without Attorney Written by Craig D. Robins, Esq. Debtor goes it alone...
How Do I Get Away With Cheating On My Bankruptcy Petition? Written by Craig D. Robins, Esq. I am sad to...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: How Much Do Long Island Bankruptcy Judges Earn?

Wed, 28 Oct 2009 14:00:28 -0700

Written by Craig D. Robins, Esq. The Chief Judge of New York, Jonathon Lippman, announced today that he will be providing all New York State judges with an allowance of $10,000 in addition to their regular salary. This is a welcome addition considering that this is the 11th straight year that New York judges have not gotten a pay raise. However, this does not apply to Bankruptcy judges. Bankruptcy judges, who are federal employees, have not gotten significant pay raises for quite some time as well. The current salary for a bankruptcy judge is $160,080, and this amount is set by Congress. The salary is actually based on 92% of the salary of a United States District Court judge, which is currently $174,000. Incidentally, New York State Court judges in the Supreme Court currently have a salary of $136,700, and County District Court judges earn slightly less than that. Many of the Long Island bankruptcy attorneys appearing before Judges Robert E. Grossman, Alan S. Trust, and Dorothy T. Eisenberg in the Central Islip Bankruptcy Court therefore earn more than the judge. Although a judge’s salary, when compared to the typical salary of a Long Island resident, may seem pretty good, it is relatively less than what the judge can earn in private practice. This is the main reason why former Chief Bankruptcy Judge Melanie S. Cyganowski retired from the bench two years ago. (See the my interview of her: Chief Bankruptcy Judge Melanie Cyganowski Stepping Down ) For more information about the Central Islip Bankruptcy Court judges, please see my post: How Are Long Island Bankruptcy Judges Appointed?.

What has Former Chief Long Island Bankruptcy Judge Melanie L. Cyganowski Been Up To? Written by Craig D. Robins, Esq. It was two...
How Are Long Island Bankruptcy Judges Appointed? Written by Craig D. Robins, Esq. There are three...
How Much Do Long Island Chapter 13 Bankruptcy Trustees Earn? 2008 Statistics for Trustees Michael J. Macco and Marianne DeRosa Written by Craig D. Robins, Esq. ...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: IRS Federal Tax Liens in Bankruptcy

Tue, 27 Oct 2009 04:30:54 -0700

Written by Craig D. Robins, Esq. Last week I wrote about Eliminating Taxes in Bankruptcy . Although you can often eliminate personal liability for old income tax debt, IRS tax liens can still remain attached to assets. What is a Federal Tax Lien? When there are substantial tax arrears, the IRS will prepare a document called a Federal Tax Lien and then file it with the county clerk’s office. Doing so then results in the IRS obtaining a secured lien on any asset that the taxpayer may own in that county, whether it is real estate or personal property. According to the Internal Revenue Service, three things must occur before a federal tax lien is issued: The IRS must assess the liability, send a Notice and Demand for Payment, and you must neglect to pay in full for 10 days after the notice was sent. Can Federal Tax Liens Be Eliminated in a Personal Bankruptcy Filing? Unfortunately, even though a debtor can bring a proceeding to discharge old tax income tax debt, this will not remove a federal tax lien.

Thus, you can prevent the IRS from going after you personally by filing for bankruptcy, but if they have a lien on your home, you will have to deal with that if you decide to sell or refinance the home.

Voiding Pre-2005 Judgment Liens Written by Craig D. Robins, Esq. On August 30, 2005,...
Eliminating Taxes in Bankruptcy Written by Craig D. Robins, Esq. Can You Discharge...
Can Federal Exemptions be Used in New York Bankruptcy Filings? Written by Craig D. Robins, Esq. When a consumer...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Chapter 11 Bankruptcy on Long Island

Tue, 27 Oct 2009 00:30:29 -0700

Craig D. Robins, a Chapter 11 bankruptcy attorney on Long Island, provides summaries of all Chapter 11 bankruptcy cases filed in the Long Island Bankruptcy Court, on his Long Island Bankruptcy Blog.

Click here to access these summaries: Chapter 11 bankruptcy cases filed on Long Island. . Click here to see information about filing Chapter 11 bankruptcy on Long Island. … If you have a business that is considering Chapter 11, please feel free to contact my office to arrange a free, confidential consultation.

LDR Trucking Corp Files for Chapter 11 Bankruptcy on Long Island Written by Craig D. Robins, Esq. LDR Trucking Corp. filed...
About Long Island Bankruptcy Law Firm Representing consumer bankruptcy clients throughout...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Cartoon Strip BAPCPA Man — #7

Mon, 26 Oct 2009 18:49:26 -0700

. . BAPCPA Man Illustrates the Powers of Bankruptcy Against Evil Mortgage Companies! Written by Craig D. Robins, Esq. . I am pleased to post the seventh cartoon strip of BAPCPA MAN, the new comic strip from New York bankruptcy attorney Steven Horowitz and and artist Gideon Kendall. Here is strip number seven. BAPCPA MAN is designed to entertain both consumers and bankruptcy attorneys. . Steve and Gideon originally came up with the well-received Bankruptcy Bill cartoon strips, about a hapless New York City bankruptcy attorney associate at a large bankruptcy firm. “BAPCPA”, an acronym universally known to all bankruptcy attorneys, stands for The Bankruptcy Abuse Prevention and Consumer Protection Act. This is the new bankruptcy law that went into effect in 2005. The strips seek to educate consumers, humor attorneys, and will also try to poke fun at some of the more ridiculous requirements of the new bankruptcy law. Please check out the Bankruptcy Bill and BAPCPA Man Website which now has references and links to other bankruptcy blogs around the country. . The strip is posted with permission from Bankruptcy Bill.

BAPCPA Man — The Bankruptcy Cartoon Strip (#4) Bankruptcy Can Be Humorous! Written by Craig D....
Bankruptcy Cartoon Strip BAPCPA Man — #5 . BAPCPA Man Shows that Bankruptcy Can Be Humorous!...
Bankruptcy Cartoon Strip BAPCPA Man — #6 . . BAPCPA Man Shows that Bankruptcy Can Be Humorous!...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Cell Phones and Bankruptcy

Mon, 26 Oct 2009 13:00:18 -0700

Written by Craig D. Robins, Esq. . Filing bankruptcy can release you from a burdonsome cell phone contract and let you discharge the early termination penalty . These days, almost everyone has a cell phone. Should a typical consumer debtor filing bankruptcy on Long Island list their cell phone provider as a creditor for bankruptcy purposes? Consumers Who Have Old Accounts with Deficiencies. If you have an old bill on a closed account with a balance due, then there is no question. This is a debt that you must include. The entire obligation will be eliminated by the bankruptcy filing. Consumers Who Have Active Accounts with Balances Due. Consumers filing for personal bankruptcy are required to list all outstanding debts in the bankruptcy petition. Thus, if you owe your cell phone provider a balance, even if you plan to keep the account, you must list them. Doing so will enable you to discharge the balance owed. Some cell phone companies may ask you to post a security deposit after the bankruptcy filing, but I observe that most providers are not asking for this. What Happens to the Service Contract in Bankruptcy? Chances are you are still in a service contract which requires that you pay a penalty if you cancel it before the end of the contractual period, which is typically two years. Most consumers can benefit by canceling their cell phone contracts. This would enable the consumer to not only eliminate their balance but remove their obligation to pay any early cancellation penalty. Here’s why: Filing a Chapter 7 bankruptcy has the effect of terminating any “executory contract” which is one in which the parties are still performing it. Cell phone contracts are executory contracts during the typical two-year contract period. By including the cell phone provider as a creditor in the bankruptcy petition, the contract is automatically terminated, and any early cancellation penalty becomes a dischargeable debt just like the credit card debts. Consumers Who Have Accounts that Are Totally Up-to-Date. Consumers should list the cell phone provider as a potential creditor in the bankruptcy petition, even if no balance is owed. Although the bankruptcy law has the effect of automatically terminating the cell phone contract, virtually all cell phone companies will continue service if the account is current, and will not pay any attention to the bankruptcy filing. The advantage to you, the consumer, by including the cell phone company in the petition, even if you are current, is that you can later terminate the contract before the end of the typical two-year period, and not be responsible for the early termination penalty. Special Note About Cell Phones for Later: Since I’m talking about cell phones, please note that when you do eventually file for bankruptcy relief and later go to court for the meeting of creditors, you must leave your cell phone in the car. The Central Islip Bankruptcy Court has a policy of not permitting any cell phones into the building. If you arrive at court by public transportation, the U.S. Marshall will permit you to check your phone with them in the lobby.

Paying the Price of Putting Off Filing for Bankruptcy Written by Craig D. Robins, Esq. Several times a...
Directions to Central Islip Bankruptcy Court - Long Island Written by Craig D. Robins, Esq. The new Federal...
Attorney General Investigating Process Servers for Taking Illegal Shortcuts Many consumers have had to rush to seek bankruptcy protection...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Ramp Chevrolet / Hummer Files for Chapter 11 Bankruptcy

Thu, 22 Oct 2009 22:00:43 -0700

Written by Craig D. Robins, Esq.

Port Jefferson Automobile Dealership Seeks Chapter 11 Bankruptcy Protection

Ramp Chevrolet, Inc., a Long Island Chevrolet and Hummer automobile dealer that was established in 1944, filed for Chapter 11 bankruptcy relief on October 5, 2009 in the Central Islip Bankruptcy Court under case number 8-09-77513. Judge Robert E. Grossman was assigned to the case as bankruptcy judge.

The dealership, which is located at 1395 Route 112 in Port Jefferson, is being represented by Eric J. Snyder, Esq. of the New York City bankruptcy law firm of Siller Wilk, LLP. . The Chapter 11 debtor’s president is Charles Rampone, Jr. . The debtor owes GMAC $587,201 and also owes the New York State Department of Taxation $2,082,386 in secured debt and $425,993 in priority debt. The petition also listed 144 unsecured creditors, although there were no amounts listed for each of these creditors in the initial schedules that the debtor filed. It was unclear what necessitated the Chapter 11 bankruptcy fililng because the debtor neglected to file all of its schedules and statements as required by the local bankruptcy rules. However, as I’ve written in the past, as General Motors revamps itself under its own bankruptcy protection, effects are reverbarating around the country. GM said over the summer that it was going to cut about 1,100 dealerships immediately and another 2,600 over the next 18 months. See Chrysler Bankruptcy Will Lead to Many Long Island Personal Bankruptcy Filings and Why Did Chrysler and GM File for Bankruptcy in New York? . Just a few weeks ago, another Long Island car dealer sought Chapter 11 bankruptcy relief: Mazda Automobiles of Great Neck Files for Chapter 11 Bankruptcy Protection . … The debtor has already negotiated a cash collateral stipulationwith the secured creditor, which was approved by the bankruptcy court, and has also received bankruptcy court permission to pay pre-petition wages. . The debtor filed a bare-bones bankruptcy petition and was required to file all remaining bankruptcy schedules by October 20, 2009, but failed to do so on time. . The debtor brought an order to show cause to use cash collateral and pay pre-petition wages, and an interim order authorizing cash collateral was granted. The Meeting of creditors will be held on November 6, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 563 at 11:00 a.m.). A Status conference has been scheduled before Judge Grossman for November 9, 2009 at 1:30 p.m. in Courtroom 860. .

This post is one of a series of posts available on the Long Island Bankruptcy Blog detailing every Chapter 11 bankruptcy case filed in the Central Islip Bankruptcy Court since August 1, 2009. I will typically post a summary of each Chapter 11 case several days or weeks after it is filed as not all info is available immediately upon filing. To see a list of Chapter 11 cases profiled on this blog, click Chapter 11 Filings on Long Island or type the name of the debtor in the upper right search box.

EPets, Inc. Files for Chapter 11 bankruptcy Written by Craig D. Robins, Esq. New Hyde Park Pet...
Mazda Automobiles of Great Neck Files for Chapter 11 Bankruptcy Protection Written by Craig D. Robins, Esq. C.D. Autos, Inc., a...
Long Island Children’s Clothing Store Bonmer, Inc. Files for Chapter 11 Bankruptcy Written by Craig D. Robins, Esq. .Bonmer, Inc. filed for...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Eliminating Taxes in Bankruptcy

Thu, 22 Oct 2009 05:00:18 -0700

Written by Craig D. Robins, Esq. Can You Discharge Taxes in Bankruptcy? Some taxes can be discharged in a personal bankruptcy filing. The most common type of tax that consumers owe is back income taxes. In certain circumstances, they can be discharged. Most other types of taxes cannot be eliminated in bankruptcy. What Taxes Are Dischargeable In Chapter 7 Bankruptcy?

There is a multi-prong test for determining whether income taxes can be eliminated in a personal bankruptcy filing and this test is rather detailed and complicated. First Prong: More than three years must have elapsed from the date that the tax return was “last due”. Assuming that no extension request was filed, the income tax is “last due” on April 15th of the following year. It does not matter that you may have filed the tax return a month earlier; the three-year period starts running from the date the return was due — in this case April 15. Extension requests have to be incorporated into the “last due” calculation as well. Second Prong: The tax return must have been actually filed at least two years prior to the date the bankruptcy petition is filed. Thus, even if more than three years elapsed from the date the return was “last due”, there must be at least two years that elapsed since the date the return was actually filed, before the bankruptcy petition can be filed. Third Prong: More than 240 days must have elapsed since the date that the IRS “assessed” the tax obligation. Tax assessments are tricky and IRS records and transcripts should be reviewed to determine tax assessment dates. Other Issues to Consider: The IRS has the right to object to efforts to discharge tax debts if they feel that the taxpayer filed fraudulent returns, willfully attempted to evade taxes, or engaged in a pattern of tax evasion. Also note that even if you can eliminate federal tax obligations that you ow to the Internal Revenue Service, they may still have a lien on your assets if the IRS obtained a federal tax lien. I will address this issue in a future post. How Do You Eliminate Taxes in a Bankruptcy Proceeding? It is generally necessary to obtain a determination from the bankruptcy court. This, unfortunately, can be more involved than the bankruptcy itself, as it often entails actually suing the IRS in an “adversary proceeding”, which is a federal lawsuit brought within the bankruptcy case, and heard before the bankruptcy court judge. However, since tax debt is often substantial, it is usually worth the investment. For more information on adversary proceedings, see A Primer on Adversary Proceedings . What about Discharging New York State Taxes? The same bankruptcy rules that apply to the IRS also apply to state tax obligations. What Taxes Cannot Be Eliminated in Bankruptcy Filings? Most other types of taxes cannot be discharged in a bankruptcy proceeding. These include withholding taxes, fiduciary taxes, excise taxes, and sales taxes. Remember, income taxes, in general, that are less than three years old, cannot be eliminated in bankruptcy. Discharging taxes in bankruptcy can be rather complicated. Getting advice from an experienced bankruptcy attorney who has actually brought tax dischargeability proceedings is important if you have significant tax obligations.

IRS Federal Tax Liens in Bankruptcy Written by Craig D. Robins, Esq. Last week I...
Student Loans and Bankruptcy Written by Craig D. Robins, Esq. Most debts can...
What is a Judgment? Written by Craig D. Robins, Esq. . When you don’t...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: EPets, Inc. Files for Chapter 11 bankruptcy

Wed, 21 Oct 2009 23:00:03 -0700

Written by Craig D. Robins, Esq.

New Hyde Park Pet Store Seeks Chapter 11 Bankruptcy Protection

EPets Inc., a large retail pet store, filed for Chapter 11 bankruptcy relief on September 29, 2009 in the Central Islip Bankruptcy Court under case number 8-09-77362. Judge Robert E. Grossman was assigned to the case as bankruptcy judge.

The corporation, which is located in New Hyde Park, is being represented by Long Island bankruptcy attorneys McBreen & Kopko, and its bankruptcy attorney, Kenneth Reynolds, who is located in Jericho, New York. Its president is Timothy Denis. The debtor has 13 employees. The store is located at 1335 Jericho Turnpike in New Hyde Park. The Debtor’s bankruptcy filing was necessitated by efforts taken be a secured party to. The debtor had previously purchased the assets of another retail pet store, Pets of New Hyde Park, for $1.075,000, and owed this credior approximately $720,000. The creditor is represented by Robert L. Pryor, Esq. of Pryor & Mandelup in Westbury. . The debtor has already negotiated a cash collateral stipulationwith the secured creditor, which was approved by the bankruptcy court, and has also received bankruptcy court permission to pay pre-petition wages. . The debtor filed a bare-bones bankruptcy petition and was required to file all remaining bankruptcy schedules by October 14, 2009, but failed to do so. The Meeting of creditors will be held on October 30, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 563 at 11:00 a.m.). A Status conference has been scheduled before Judge Grossman for November 9, 2009 at 1:30 p.m. in Courtroom 860. .

Long Island Children’s Clothing Store Bonmer, Inc. Files for Chapter 11 Bankruptcy Written by Craig D. Robins, Esq. .Bonmer, Inc. filed for...
Mazda Automobiles of Great Neck Files for Chapter 11 Bankruptcy Protection Written by Craig D. Robins, Esq. C.D. Autos, Inc., a...
Lightning AB Corp. Files for Chapter 11 Bankruptcy Written by Craig D. Robins, Esq. Bankruptcy of Glen Cove...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Medical Debt Bankruptcy Exception Being Considered

Wed, 21 Oct 2009 15:00:34 -0700

Written by Craig D. Robins, Esq. At various times this year, Congressional committees have pondered the idea of making it easier for consumers who are overwhelmed with medical debt to file for bankruptcy. . I previously discussed this in: Special Bankruptcy Protection on the Way for Consumers with High Medical Debts and Congress Considers Amending Bankruptcy Code to Make it Easier for Consumers to Discharge Medical Debt . Yesterday, the Senate Judiciary Subcommittee on Administrative Oversight and the Courts held a hearing on proposed legislation to make it easier to file for bankruptcy relief for those consumers whose medical debts are the primary cause of their financial difficulty. The legislation is being sponsored by subcommittee chair Senator Sheldon Whitehouse (D-R.I.). The hearing questioned whether the new bankruptcy laws adopted in 2005 make it unreasonably difficult for consumers burdened with medical debt to get a fresh new financial start. One of the key issues is determining what consumers would be eligible for relief. The other key issue concerns what the relief would be. Here’s what was being discussed: A) the means test would be waived B) the credit counseling requirements would be waived C) there would be a national homestead exemption of $250,000 for these debtors D) these debtors would be permitted to pay some of their attorney’s fees after filing

Congress Considers Amending Bankruptcy Code to Make it Easier for Consumers to Discharge Medical Debt Written by Craig D. Robins, Esq. This afternoon, the...
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...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Lightning AB Corp. Files for Chapter 11 Bankruptcy

Wed, 21 Oct 2009 12:30:51 -0700

Written by Craig D. Robins, Esq.

Bankruptcy of Glen Cove Chinese Restaurant Forces Landlord to Seek Chapter 11 Bankruptcy Protection

Lightning AB Corp., a single asset real estate company, filed for Chapter 11 bankruptcy relief on September 29, 2009 in the Central Islip Bankruptcy Court under case number 8-09-77322. Judge Robert E. Grossman was assigned to the case as bankruptcy judge, replacing Judge Trust because this case is related to another case.

The corporation, which is located in Glen Cove, is being represented by New York City bankruptcy attorney Bruce H. Kaplan. Its president is Nicola Lavista. The debtor’s primary assets consists of a parcel of real estate located at 49 Glen Cove Road, upon which is a two-story restaurant. The debtor estimates the real estate is worth about $850,000. The debtor paid a retainer of $7,500. There is currently a Chinese restaurant renting the premises, Won Long Won Restaurant, Inc. However, the debtor plans on rejecting the lease of this restaurant and selling the property. This restaurant is, itself, currently in a Chapter 7 bankruptcy proceeding before Judge Grossman. The Debtor’s bankruptcy filing was necessitated by the fact that the mortgagee was prosecuting a foreclosure sale. The Meeting of creditors will be held on October 30, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 563 at 9:00 a.m.). The debtor recently filed an application to retain a real estate broker. A Status conference has been scheduled before Judge Grossman for November 9, 2009 at 1:30 p.m. in Courtroom 860. A motion to lift the stay is returnable on the same date. .

LDR Trucking Corp Files for Chapter 11 Bankruptcy on Long Island Written by Craig D. Robins, Esq. LDR Trucking Corp. filed...
Venerable Huntington Restaurant Able Conklin’s Files for Chapter 11 Bankruptcy Relief Written by Craig D. Robins, Esq. Able Conklin’s Restaurant, a...
Empire Masonry Contracting Corp. Files Chapter 11 Bankruptcy Petition Written by Craig D. Robins, Esq. Empire Masonry Contracting Corp., of...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Dying Octogenarian’s Secret Drives Spouse Into Bankruptcy

Tue, 20 Oct 2009 15:45:42 -0700

By Craig D. Robins, Esq.

Husband Used Bankruptcy to Eliminate Debt Fraudulently Incurred by Deceased Wife

One of my most interesting Long Island Chapter 7 bankruptcy cases was a number of years ago. It involved an 80-year-old widower who learned some incredible, disturbing and unfortunate secrets about his wife’s finances while she was on her deathbed. By using some creativity and the filing of a consumer bankruptcy case, I saved the day for my client. Filing Bankruptcy Proved to Be the Ideal Solution to an Unusual Problem

Just a week after his wife had died, the widower, accompanied by his adult children, consulted with me about a very serious debt problem he had only discovered two weeks prior.

His deceased wife, also 80 years old, had been in the hospital, diagnosed with a terminal disease. When the widower walked into her hospital room to pay her a visit a week before she died, he caught her trying to shove some papers under her covers. These were credit card bills and lawsuit papers.

Wife, Unbeknownst to Husband, Incurs Substantial Debt in His Name

As it turned out, for years, the wife, who had handled all of the family’s finances, opened numerous credit card accounts in the husband’s name by forging his signature. She did not tell him about this. She had all the credit card bills sent to a post office box.

Just a week before she died, the husband learned that not only was he obligated to pay over $60,000 to credit card companies for debts he had absolutely nothing to do with, but several of the credit card companies had even commenced litigation against him. The widower wanted to know what to do.

Although we discussed disputing some 15 different accounts, or defending the various suits that had been brought in state court, I decided that the easiest and most efficient way to resolve the problem would be to file a Chapter 7 bankruptcy.

Using Bankruptcy to Resolve the Problem

The tricky aspect of this case was that the debtor-husband owned his entire Locust Valley home free and clear of all liens, far exceeding the homestead exemption. The unprotected home did not concern me because my strategy was to totally eliminate all creditors. I prepared the bankruptcy petition and listed the various credit card accounts totaling $60,000, but indicated that each and every credit card debt was disputed.

The bankruptcy court assigned the Chapter 7 case to Long Island bankruptcy trustee Kenneth Kirschenbaum. He almost fell off his chair at the meeting of creditors when he learned that there was a valuable house that was almost totally non-exempt. Keep in mind that at the time of filing, the homestead exemption was only $10,000 and the house was worth several hundred thousand dollars. The trustee immediately began salivating over the prospect of administering a nice asset case.

However, I told the trustee, “not so fast, Cowboy” (or words to that effect). I explained the situation and said that I would be filing an application for a “bar date” in which creditors would be notified that they have only so much time to file claims. I then told the trustee that I would be filing objections to every filed claim.

Trustee Can’t Administer Bankruptcy Estate and Debtor Gets Discharge

Well, it turned out that even though there were 15 creditors, only six of them filed claims. (Remember, this was many years ago when creditors often neglected to file claims). I then successfully objected to every claim, on the ground that the husband did not incur them.

That left a bankruptcy estate that contained a very significant non-exempt asset — the house — but with not one single claim that could be paid.

Trustee Kirschenbaum, who was not too happy, had no choice but to close the case as a “no asset” case because there were no creditors who he could pay. The debtor, meanwhile, received his Chapter 7 discharge, kept his home, and eliminated all of the headaches caused by his wife’s secret financial life.

By thinking out of the box, I utilized an unorthodox solution to an unusual debt problem and achieved a great result for my client. . About the Author. Long Island Bankruptcy Attorney Craig D. Robins, Esq., is a regular columnist for the Suffolk Lawyer, the official publication of the Suffolk County Bar Association in New York. This article appeared in the October 2009 issue of the Suffolk Lawyer. Mr. Robins is a bankruptcy lawyer who has represented thousands of consumer and business clients during the past twenty years. He has offices in Patchogue, Commack, Woodbury and Valley Stream. (516) 496-0800. For information about filing bankruptcy on Long Island, please visit his Bankruptcy web site: http://www.BankruptcyCanHelp.com.

Who Owns the Tax Refund in a Bankruptcy Case: Trustee or Spouse? Apportioning the Refund of a Non-filing Spouse Written by Craig D. Robins, Esq. Like the famished...
Sometimes Bankruptcy Exemptions Can Be Doubled Written by Craig D. Robins, Esq. Exemption statutes are...
Married Consumers Can File for Bankruptcy With or Without the Spouse Written by Craig D. Robins, Esq. Some married people think...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Cartoon Strip BAPCPA Man — #6

Tue, 13 Oct 2009 21:15:21 -0700

. . BAPCPA Man Shows that Bankruptcy Can Be Humorous! Written by Craig D. Robins, Esq. . I am pleased to post the sixth cartoon strip of BAPCPA MAN, the new comic strip from New York bankruptcy attorney Steven Horowitz and and artist Gideon Kendall. Here is strip number six. BAPCPA MAN is designed to entertain both consumers and bankruptcy attorneys. . Steve and Gideon originally came up with the well-received Bankruptcy Bill cartoon strips, about a hapless New York City bankruptcy attorney associate at a large bankruptcy firm. “BAPCPA”, an acronym universally known to all bankruptcy attorneys, stands for The Bankruptcy Abuse Prevention and Consumer Protection Act. This is the new bankruptcy law that went into effect in 2005. The strips seek to educate consumers, humor attorneys, and will also try to poke fun at some of the more ridiculous requirements of the new bankruptcy law. Please check out the Bankruptcy Bill and BAPCPA Man Website which now has references and links to other bankruptcy blogs around the country. . The strip is posted with permission from Bankruptcy Bill.

BAPCPA Man — The Bankruptcy Cartoon Strip (#4) Bankruptcy Can Be Humorous! Written by Craig D....
Bankruptcy Cartoon Strip BAPCPA Man — #5 . BAPCPA Man Shows that Bankruptcy Can Be Humorous!...
Bankruptcy Cartoon Strip BAPCPA Man — #7 . . BAPCPA Man Illustrates the Powers of Bankruptcy Against...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Bankruptcy Means Test Figures To Be Updated for New York Consumers

Tue, 13 Oct 2009 05:00:52 -0700

Written by Craig D. Robins, Esq. New Bankruptcy Means Test Criteria Goes Into Effect November 1, 2009 Passing the bankruptcy means test is dependant upon the amount of median income in the state where you live. For New York residents, it will be slightly easier for some families to qualify for Chapter 7 bankruptcy next month. For those seeking to file for Chapter 13 bankruptcy, some families will be able to pay less each month. The figures used for the each state’s median income are based on United States Census data, and adopted by the Office of the United States Trustee. The last time the median income figures were updated was March 15, 2009, and I wrote a blog article about that. See Good News for Consumers on Long Island — Chapter 7 Bankruptcy Will Be Easier to Qualify For . The new figures go into effect for those personal bankruptcy cases filed after November 1, 2009. To see the new median income data for each state, go to the U.S. Trustee Census Bureau Median Income Chart. New Means Test Figures Not Helpful for Everyone Family Size of One: For the first time ever, some of the figures have actually decreased. If you are a single individual, which means that you have a family size of one, the New York median income has decreased from $46,523 to $46,485. This is a change of only $38 per year, or $3 per month. Nevertheless, it is less. Chances are, however, that one will be adversely affected by such a small change Family Size of Two: For a family size of two, the new median income figure is just over $1,000 more than the old amount, making it slightly easier to qualify. Family Size of Three: For a family size of three, the new amount is about $1,400 per month more, which will certainly be a help. Family Size of Four: For a family size of four, the new median income amount is actually about $500 less than the previous figure, making it the slightest bit harder for typical families to qualify for Chapter 7 bankruptcy. However, the difference is so small that it should hardly matter for most Long Island consumers. The Bankruptcy Means Test .

This is a comprehensive, very complex series of calculations that the federal government designed to ascertain whether someone qualifies for Chapter 7 filing. Under the old bankruptcy law, almost anyone could seek to eliminate their debts by filing Chapter 7. The new laws changed that. Click here to take a look at the actual Means Test form.

The Means Test formula is designed to evaluate whether a debtor has the financial means to pay back a substantial portion of his or her debts. If the person does, then he or she may not be eligible to file Chapter 7 bankruptcy, and may instead have to file a payment plan bankruptcy under Chapter 13. If debtor’s income is below the New York State median income for a family of that particular size, then passing the Means Test is virtually automatic. If not, the debtor must have a sufficient amount of acceptable deductions permitted by the Means Test.

Impact of New Means Test Figures on Consumers Filing Bankruptcy on Long Island .

In my Long Island bankruptcy law practice, I estimate that about 7 out of 8 clients now seeking to file for Chapter 7 bankruptcy relief do indeed qualify under the means test. The new numbers may just slightly help some couples or small families qualify for Chapter 7 bankruptcy when the new criteria is used.

New Median Family Income Figures for New York

(Effective for cases filed after 11/1/09) Family Size Amount 1 $46,485 2 $58,109 3 $69,421 4 $82,457 Add $6,900 for each individual in excess of 4.

Determining Household Size for the Means Test Written by Craig D. Robins, Esq. Almost two years into...
Disabled Veterans Exempted from Bankruptcy Means Test Written by Craig D. Robins, Esq. I just prepared a...
Can Debtors Deduct College Expenses of their Children on the Means Test? Written by Craig D. Robins, Esq. Several times in the...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Corporate Debtor and Attorney May Be In Hot Water For Failure to File Corporate Resolution

Mon, 12 Oct 2009 15:00:46 -0700

Written by Craig D. Robins, Esq. Every now and then I come across a situation that I just find incredible. I just met with a potential client who was being subpoenaed by the attorneys for a Long Island Chapter 7 bankruptcy trustee. . The trustee is now going on a fishing expedition for assets involving a corporate Long Island Chapter 7 business bankruptcy filing. The trustee retained counsel to assist in this endeavor. Apparently, the potential client and another fellow were each fifty-percent shareholders of a corporation that filed for Chapter 7 bankruptcy relief over a year and a half ago. The amazing thing was that the potential client who I met with had just found out about the bankruptcy. Consequently, we now have all sorts of sticky issues such as whether the corporate bankruptcy was filed in good faith or not. Corporate Bankruptcy Filings Must Be Authorized Here’s why: any time a corporation seeks bankruptcy protection, it must have authority to file the bankruptcy petition. That typically means that the corporation’s board of directors must meet, agree to permit the corporation to file for bankruptcy, and then acknowledge this authorization by preparing a corporation resolution authorizing the bankruptcy filing. In this case, there was no corporate resolution! Local E.D.N.Y. Bankruptcy Rule 1074-1(a) states that any bankruptcy petition filed by a corporation shall be accompanied by a duly attested copy of the corporate resolution authorizing the filing. Such a document was never filed – nor could it have since it would have required the consent of both shareholders. The shareholder I met with never consented to the bankruptcy filing, let alone knew about it. So, here is a corporate bankruptcy filing that is fatally deficient. If a corporate bankruptcy is not duly authorized, it can be dismissed. Authority to File Corporate Bankruptcy Requires Consent by a Majority of the Board of Directors In order for a corporation to have the appropriate authority to file bankruptcy, there must an agreement by the majority of the directors, which is necessary to constitute a quorum to transact business. Shareholders, themselves, lack the authority necessary to file bankruptcy because they do not have the power of management. Thus, one shareholder cannot decide, on his own, that he wants to put the corporation into bankruptcy, even if that shareholder is the president, unless he has over 50% of the voting shares of stock. What is also perplexing is that the shareholder who filed the bankruptcy failed to include his partner as an interested party, which would have enabled the partner to then receive notice of the filing. What happens now? If this is brought to the attention of the court, the judge would have no choice but to find that the court does not have jurisdiction over the case and would be constrained to dismiss it. It also appears that the subpoena that my potential client received cannot be enforced. In any event, this matter leaves some serious questions upon the attorney who filed the case, considering that he may have filed a frivolous case. The attorney, who holds himself out as a business lawyer, should know better.

We’re In For a New Wave of Corporate Bankruptcy on Long Island Written by Craig D. Robins, Esq. Yesterday’s Businessweek Magazine...
Pro Se Debtor, Deodath Ramcharan, Files Chapter 11 Petition Without Attorney Written by Craig D. Robins, Esq. Debtor goes it alone...
Chapter 7 Bankruptcy Trustee Kenneth Kirschenbaum and Nassau County District Attorney Fight Over Assets After Debtor Commits Suicide Written by Craig D. Robins, Esq. Recent Decision by...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Alcides Curtis Files Chapter 11 Relief

Mon, 12 Oct 2009 12:30:34 -0700

Written by Craig D. Robins, Esq.

Numerous pending foreclosure actions push this debtor into seeking Chapter 11 bankruptcy protection

Alcides Curtis, an individual, filed for Chapter 11 bankruptcy relief on September 17, 2009 in the Central Islip Bankruptcy Court under case number 8-09-76989. Judge Robert E. Grossman is the assigned bankruptcy judge.

According to the debtor’s bankruptcy filings, the bankruptcy was necessary because a number of mortgagees had commenced foreclosure actions on several of the debtor’s properties. The debtor, who lives in Freeport, owns eight properties.

The Meeting of creditors will be held on October 23, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 562 at 10:00 a.m.). The first Status Conference before Judge Grossman hasbeen scheduled for November 9, 2009 at 1:30 p.m. in Courtroom 860.

A Notice of Appearance was filed by Jerold C. Feuerstein, Esq. on behalf of Eastern Savings Bank; by Dennis Jose on behalf of GMAC Mortgage, LLC.; and by Bruce Weiner on behalf of Northeast Community Bank.

Venerable Huntington Restaurant Able Conklin’s Files for Chapter 11 Bankruptcy Relief Written by Craig D. Robins, Esq. Able Conklin’s Restaurant, a...
LDR Trucking Corp Files for Chapter 11 Bankruptcy on Long Island Written by Craig D. Robins, Esq. LDR Trucking Corp. filed...
Lightning AB Corp. Files for Chapter 11 Bankruptcy Written by Craig D. Robins, Esq. Bankruptcy of Glen Cove...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Storm Brewing From Adjustable Rate Mortgages; Numerous Bankruptcy Filings Expected

Thu, 08 Oct 2009 19:00:19 -0700

Written by Craig D. Robins, Esq. The next storm to hit the housing market will be caused by the wave of defaults on pay-option adjustable rate mortgages according to an article in the Wall Street Journal yesterday. The problem is part of the sub-prime mortgage meltdown. Between two and four years ago, an incredible number of homeowners took out pay-option adjustable rate mortgages (ARM), especially here on Long Island. A very large number of our clients who own homes have such mortgages. Now, with these mortgages starting to reset to much higher rates and exorbitant monthly payments, many homeowners will be unable to afford them any longer. There can actually be a flood of defaults. Many Long Island communities have a great majority of homeowners who refinanced their homes with ARMs. The rate of delinquencies and foreclosures on ARMs is extremely high, in large part because so many of these homes are underwater and have no equity. A bankruptcy filing can often provide relief from an onerous adjustable rate mortgage The Long Island bankruptcy attorneys in our firm meet with homeowners on a regular basis who are facing this dilemma. Fortunately for them, they have various bankruptcy options. With some, we recommend Chapter 7 bankruptcy which enables them to stay in the home for a period of time without having to make any payments. Then, they can move out and not have to worry about any deficiency obligation on the mortgage, as that is discharged in the bankruptcy proceeding. With other clients who may have several mortgages, we may recommend Chapter 13 bankruptcy as there is a mechanism in that type of bankruptcy to eliminate the second mortgage if he house has lost a great deal of value. For those Long Island homeowners in financial difficulty, it makes sense to quickly meet with an experienced Long Island bankruptcy attorney.

Long Island Has the Highest Foreclosure Rate in New York State Written by Craig D. Robins, Esq. Whatever benefits...
Consumers with Solid Mortgages Facing Foreclosure Written by Craig D. Robins, Esq. Even the least-risky...
The Ominous Wave of Mounting Foreclosures . by Dean Webber, Esq. The Rise of...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Many Owners of Million Dollar Homes Filing for Bankruptcy

Wed, 07 Oct 2009 20:45:54 -0700

Written by Craig D. Robins, Esq. The precipitous drop in real estate values during the past two years is forcing many wealthy homeowners to consider bankruptcy as an option and Long Island is no exception. Here’s why: many well-to-do individuals invested heavily in one parcel of real estate — their home — during the go-go real estate boom, thinking that it was a fantastic investment. After all, who could complain about an investment that increased 10% to 20% in value for a number of years? Recently, homes have been bad investments. The more expensive the home; the worse the investment. However, as we all know, real estate values have plummeted. To make matters worse, many of these high-income homeowners leveraged their real estate purchase. They bought a million dollar home and financed it with a million dollar mortgage. Unlike an investment in stock, which, in a worse-case scenario, can become worthless, a leveraged investment in real estate can actually result in an extreme amount of additional liability. Thus, if the value of the home is under water and worth less much less than the amount due on the mortgage, the homeowner can now be liable to the mortgage company for hundreds of thousands of dollars more than what the home is worth. In addition, the homeowner must also pay for property taxes, insurance and maintenance. Individual Chapter 11 bankruptcy filings with million dollar homes have greatly increased With many highly-paid executives being laid off, there are a lot of million dollar homeowners who can’t afford to make their mortgage payments. According to data from the National Bankruptcy Research Center, personal Chapter 11 filings, which is the type of bankruptcy wealthy individuals would file, have jumped 73 percent over last year. In general, if secured debt is more than $1,010,650, then a homeowner is not eligible for Chapter 13 bankruptcy, and instead, must file for Chapter 11 bankruptcy, which is also the type ob bankruptcy that businesses ordinarily file. Individual consumers who have earned substantial income in the six-month period before seeking bankruptcy relief are often precluded from filing for Chapter 7 bankruptcy because of the means test. The falling demand for million dollar homes is one cause of increased individual chapter 11 filings It is also interesting to note that nationwide listings of homes for ,worth $1 million or more, increased 27.3 percent in July from last October, according to Zillow.com, a Web site that tracks real estate transactions. Yet, the number of nationwide homes sold with a value between $1 million to $2 million fell 23 percent in July from a year earlier, according to the Chicago-based National Association of Realtors. Furthermore, there was a 21-month supply, up from 16 months last year. That means that expensive homes are not selling, and are losing value. In my Long Island bankruptcy practice, I frequently consult with individuals who previously earned substantial incomes, and homeowners who own expensive homes. For such clients, bankruptcy offers many possibilities and should be considered.

Many Owners of Million Dollar Homes Filing for Bankruptcy Written by Craig D. Robins, Esq. The precipitous drop...
Home Buying Advice Over Past Hundred Years Now Wrong Written by Craig D. Robins, Esq. Long Island first-time...
Bankruptcy Eliminates Obligations on Toxic Florida Real Estate Investments Written by Craig D. Robins, Esq. During the real...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Long Island Bankruptcy Attorney Craig D. Robins Speaking at Bar Association Tomorrow

Mon, 05 Oct 2009 19:45:39 -0700

Written by Craig D. Robins, Esq. Tomorrow I am one of three panelists who will be speaking at the Nassau County Bar Association at a public education seminar. The program is entitled: “Is Bankruptcy the Solution? What it Can and Cannot Achieve” At the seminar, we will be providing a “plain English” overview of how bankruptcy can help consumers on Long Island. My fellow panelists include Long Island Chapter 7 bankruptcy trustee Andrew M. Thaler, Esq. and bankruptcy lawyer Heath S. Berger, Esq. The program is from 7:00 to 9:00 p.m. at the Nassau County Bar Association, 15th and West Streets, Mineola. The program is free, but advance registration is requested. Please call the Bar Association at 516-747-4070. For directions go to the Nassau County Bar Association Website.

Craig D. Robins Interviewed on Television Craig D. Robins, Esq. was interviewed by Long Island News...
Suffolk County Bankruptcy Attorney Written by Craig D. Robins, Esq. New Patchogue Bankruptcy...
Chapter 7 Bankruptcy Trustee Kenneth Kirschenbaum and Nassau County District Attorney Fight Over Assets After Debtor Commits Suicide Written by Craig D. Robins, Esq. Recent Decision by...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: What If My Home Loan Modification Isn’t Approved?

Sun, 04 Oct 2009 19:45:49 -0700

Written by Jason Leibowitz, Esq.*

The difficulties that Long Island homeowners are having with loan modifications was evident last week after listening to several colleagues speak at a Suffolk County Bar Association seminar entitled, “Sustaining Real Estate Ownership.”

The fact is that it is very difficult to obtain a mortgage modification, and many mortgagees are not cooperative at all. This was a concept echoed by the speakers.

Home loan modifications, or “loan mods,” involve changing the terms of a mortgage in order to improve the odds that the homeowner will be able to keep up with their monthly payments. So, whether you are really in trouble or not, the idea of getting approved for a home loan payment reduction through a loan mod is almost too good to be true.

Most Mortgage Modifications Are Too Good to Be True

The idea of getting a loan mod often seems too good to be true because it usually is. I regularly meet with new clients who unfortunately already paid $3,000 or more to a “modification company” in the hopes that their loan will be modified. The first instruction the homeowner is often given is to fall behind on the monthly mortgage payments if they are not behind already. This is dangerous.

What mortgage modification companies don’t tell homeowners is that there is no guarantee that their lender will even agree to a loan modification. In addition, once the homeowner voluntarily stops paying the mortgage (often referred to as a strategic default), late fees, attorney’s fees, and other penalties attach. Many unscrupulous mortgage modification companies also do not reveal that for those homeowners who are already in foreclosure, the foreclosure process continues while the lender is reviewing the loan mod request.

The Likelihood of Getting a Mortgage Modification is Slim

USA Today recently published an article stating that among major lenders, mortgage modifications on government-eligible mortgages had a success rate of less than fourteen percent. With such a low likelihood of success, it often makes little sense to put your hopes on resolving a mortgage problem with a loan modification.

Chapter 13 Bankruptcy Is Often a Feasible Alternative to a Mortgage Modification Application

Homeowners should consider a Chapter 13 payment plan option. A Chapter 13 bankruptcy may also make monthly payments much more affordable for homeowners. That’s because a Chapter 13 bankruptcy has the potential of reducing or eliminating principal and interest owed to credit cards, personal loans, medical debts, vehicle loans, and certain home loans.

Many clients do not realize that they are good candidates for such a bankruptcy and that it can be provide much better results than hoping for a loan modification that may never come through. A simple consultation with a qualified Long Island bankruptcy attorney can help the homeowner decide what options may be best.

______________________

Jason Leibowitz, Esq. is a full-time associate with our firm

Loan Modification Industry is a “Sham” Says Attorney General Cuomo ! Written by Craig D. Robins, Esq. Cuomo takes action...
Why I Won’t Negotiate Loan Modifications Written by Craig D. Robins, Esq. I used to...
Can You Trust a Mortgage Modification Company? Written by Craig D. Robins, Esq. Last Week Top...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Almost-Married Couples Must File Separate Bankruptcy Petitions

Thu, 01 Oct 2009 16:45:55 -0700

Written by Craig D. Robins, Esq. Husbands and wives can file a joint bankruptcy petition. When both spouses need bankruptcy relief, it is quite easy to file a joint petition, and it is half the work of filing two separate petitions. See my post: Married Consumers Can File for Bankruptcy With or Without the Spouse . But what about couples that have been together for so long that they’ve considered themselves married for decades, even though they were never legally married? A recent case from California highlights the notion that only legally-married couples can file a joint petition. In that case, the two debtors had been living together in a relationship for so long that they considered themselves married, and they even told their attorney that they were married. They therefore filed a joint bankruptcy petition as if they were husband and wife. However, when they appeared for their meeting of creditors, it came out that they never became legally married. The trustee was then compelled to bring a motion to dismiss the case. All was not lost, however, because at the request of the female debtor, the court permitted her to amend the petition so she could complete the bankruptcy. Her partner, however, had to file a new case. [In re Lucero, 2009 Bankr. LEXIS 2125 (Bankr. C.D.Cal. July 6, 2009)].

Can Same-Sex Married Couples File Joint Personal Bankruptcy? Written by Craig D. Robins, Esq. and Ian Ribald ...
Married Consumers Can File for Bankruptcy With or Without the Spouse Written by Craig D. Robins, Esq. Some married people think...
Sometimes Bankruptcy Exemptions Can Be Doubled Written by Craig D. Robins, Esq. Exemption statutes are...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: This Debtor Didn’t Have to Do the Bankruptcy Means Test

Thu, 01 Oct 2009 06:00:26 -0700

Written by Craig D. Robins, Esq. When debts are primarily business debts, a debtor is excused from the means test Last night I conferred with a client who did not pass the bankruptcy means test. Ordinarily, passing the means test is a prerequisite for being eligible for Chapter 7 bankruptcy filing. However, failing the means test was not a problem for this client. Most of his debts were the result of personal guaranties on a failed business. The debtor had operated several automobile dealerships on Long Island. Unfortunately, due to the problems with the economy, the dealerships recently went out of business, leaving the debtor on the hook for almost two million dollars in corporate debt that he personally guaranteed. When we plugged all of his data into the means test, he did not pass. However, the Bankruptcy Code states that if debts are primarily non-consumer debts, the debtor is exempt from the means test, and the means test does not have to be filled out. We will therefore be able to file his Chapter 7 bankruptcy petition even though he fails the means test. What does consumer debt include? Consumer debt includes debt incurred for personal, family, or household purposes. That would encompass typical credit card debt, utility bills, medical bills, car loans and mortgages. However, obligations resulting from business are not considered consumer debt. How much debt must be non-consumer debt in order to be exempt? The bankruptcy statute uses the word, “primarily.” That means at least 50%. Keep in mind that you must include the full balance on a mortgage as part of consumer debt. Since most business owners own mortgaged homes with mortgages totaling several hundred thousand dollars, the amount of business debt must be quite substantial in order to invoke the exemption. Also note that if a credit card was used to pay business expenses, then the credit card debt is not a consumer debt. Click here to see a copy of the bankruptcy means test form. For more information on the means test, see my post, The Means Test is Often the Key to a Successful Chapter 7 Bankruptcy Case .

Disabled Veterans Exempted from Bankruptcy Means Test Written by Craig D. Robins, Esq. I just prepared a...
The Means Test is Often the Key to a Successful Chapter 7 Bankruptcy Case Written by Craig D. Robins, Esq. Since the bankruptcy...
Bankruptcy Means Test Figures To Be Updated for New York Consumers Written by Craig D. Robins, Esq. New Bankruptcy Means...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Advance Planning: File Bankruptcy Before You Get a Year-End Bonus

Tue, 29 Sep 2009 18:15:19 -0700

Written by Craig D. Robins, Esq. Christmas bonuses are now less than 90 days away. This notion is important because receiving a Christmas bonus or year-end bonus for some people can adversely skew the bankruptcy means test and make them ineligible for Chapter 7 bankruptcy.

. . The Bankruptcy Means Test The bankruptcy means test is a very comprehensive, very complex series of calculations that the federal government designed to ascertain whether someone qualifies for Chapter 7 filing. It was designedas part of the new bankruptcy laws to prevent those consumers who have high incomes from being able to eliminate their debts in Chapter 7 cases. See my post, The Means Test is Often the Key to a Successful Chapter 7 Bankruptcy Case . The means test looks at all income you received during the prior six calendar months. Year-End Bonuses Must Be Included in the Means Test if Received Six Months Before Filing Bankruptcy Some people just barely qualify for Chapter 7 filing because they just barely pass the means test. If you are on the edge of being eligible, adding a significant year-end bonus into the calculation of income can preclude you from being able to file for Chapter 7 bankruptcy relief. What this means: if you receive a substantial Christmas bonus in December, you might have to wait as many as six months before being eligible for Chapter 7 filing, because the means test requires that you add up all income received in the previous six calendar months. Consider Filing Bankruptcy Sooner than Later If Expecting a Christmas Bonus What you should do now: if you are considering filing for bankruptcy, and your income appears to be substantial, you should file bankruptcy before getting any year-end bonus. How do you know if your income is considered substantial enough? The only way to find out is to consult with an experienced consumer bankruptcy attorney. One additional caveat: if you know for sure that you are receiving a year-end bonus, then this should be reported on the bankruptcy petition budget schedules as anticipated future income. Doing so has no effect on the means test, but may nevertheless show that there is extra income in your budget. An experienced bankruptcy attorney can discuss how to deal with this concept. Right now, so many companies are cutting back that there may be no way to know if you are going to receive a Christmas bonus this year. Thus, you may be better off filing sooner, rather than later, because at some point between now and Christmas, your employer may inform you that you will receive a year-end bonus.

Can You File Chapter 7 Bankruptcy on Long Island With a Family Income of $200,000 a Year? Written by Craig D. Robins, Esq. . … ....
If I Make Over $100,000 a Year, Can I Eliminate Credit Cards Debts in Bankruptcy? Many High Income Families on Long Island are Eliminating Debts...
The Means Test is Often the Key to a Successful Chapter 7 Bankruptcy Case Written by Craig D. Robins, Esq. Since the bankruptcy...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: A New Powerful Mortgage Foreclosure Defense — Compliments of MERS

Mon, 28 Sep 2009 21:00:05 -0700

Written by Craig D. Robins, Esq. “The Mortgage Machine Backfires.” That was the title of a fantastic and incredibly interesting article in yesterday’s New York Times. Times business columnist Gretchen Morgenson wrote about a recent Kansas Supreme Court case which lambasted a “dubious practice” that mortgagees have relied on for several years now. The principles discussed in that case have the stunning potential of operating as an absolute defense in mortgage foreclosure proceedings throughout the country and especially on Long Island. . “MERS” — The Mortgage Electronic Registration System We are all used the standard recording process whereby deeds and mortgages are recorded with the county clerk. However, during the recent mortgage lending spree, mortgage loans changed hands constantly, often ending up in packaged and securitized mortgage pools. The Times characterized the constant changing of mortgage ownership as a “dizzying series of transactions.” Each time a mortgage is recorded there is a hefty recording fee. To save money, the mortgage industry, including Freddie Mac and Fannie Mae, set up MERS to record mortgage assignments electronically. MERS estimates that it saved its members about $1 billion during the previous decade. There are about 60 million mortgage loans that are registered in the name of MERS! The MERS flaw: It does not own mortgages but merely records them in the MERS name Not only does MERS register mortgages, it also began registering the various mortgage assignments and transfers. However, when it registered anything with a county clerk, it registered the mortgage in the name of MERS. And herein lies the significant flaw that may now become an incredible problem for all MERS mortgages. Even though MERS listed itself as the owner of the mortgage in the public records of county clerks across the country, it did not actually own any of the mortgages. If MERS is only an Electronic Registry, How can it bring foreclosure actions? One of the basic tenets of mortgage foreclosure law is that the mortgagee must have standing to bring the foreclosure action, which means it must own the mortgage being foreclosed upon. I successfully persuaded the Nassau County Supreme Court a few months ago to dismiss a foreclosure for this very reason. See my post: Long Island Foreclosure Case Dismissed! Even though MERS may not technically have standing, it nevertheless brought great numbers of foreclosure proceedings. Some mortgage foreclosure defense lawyers asserted that MERS did not have legal standing to sue. After all, how can an electronic registry with no mortgage ownership claim that it has the right to evict people from their homes? However, judges initially rejected those arguments and allowed the MERS foreclosure actions to proceed. A pivotal case from the Kansas Supreme Court may now preclude MERS from asserting that it has standing Rather than get into the details of the Kansas Supreme Court case, the court held that a mortgagee’s use of MERS to register the mortgage was insufficient to enable the mortgagee to assert any rights. This, in essence, totally rejected the MERS’s business model. This decision from a state’s highest court is quite important because it may likely encourage judges elsewhere to question MERS’s standing in their foreclosure cases. There are other potentially far-reaching implications. For example, there can be an issue as to the priority of mortgage liens if a MERS mortgage is not recognized. From a bankruptcy perspective, aggressive and creative Chapter 7 bankruptcy trustees can argue that mortgagees do not have a valid security interest and that a debtor’s home can therefore be liquidated without worrying about the mortgagee as a secured creditor. As I have frequently written in the past, I refuse to do mortgage modifications. One of the primary reasons is because it is impossibly difficult to reach the appropriate individuals who have the authority to discuss a mortgage workout. Now we are learning that MERS is quite responsible for this. The MERS system has led to great confusion as borrowers are unable to identify who they should turn to. The Kansas case is certainly a stunning victory for homeowners. It will be interesting to see the fallout from this case. Click here to read the New York Times article.

Long Island Foreclosure Case Dismissed! Written by Craig D. Robins, Esq. Mortgage Company messes...
Many New York Foreclosure Suits Are Dismissed Because They Are Defective Written by Craig D. Robins, Esq. A fascinating article...
New York Homeowners in Foreclosure May Get More Time Written by Craig D. Robins, Esq. This past September,...

Related posts brought to you by Yet Another Related Posts Plugin.

» Long Island, New York | NY | Bankruptcy Lawyer | Attorney At Law: Empire Masonry Contracting Corp. Files Chapter 11 Bankruptcy Petition

Sat, 26 Sep 2009 05:30:22 -0700

Written by Craig D. Robins, Esq.

Empire Masonry Contracting Corp., of East Setauket, New York, filed for Chapter 11 bankruptcy relief on September 14, 2009 in the Central Islip Bankruptcy Court under case number 8-09-76876. Judge Robert E. Grossman is the assigned bankruptcy judge.

This is a Chapter 11 case that is one of my own cases that I, Long Island Chapter 11 bankruptcy attorney, Craig D. Robins, Esq., filed. The amount of the pre-petition retainer for legal fees and disbursements was $15,039.

The debtor provides commercial masonry services in the New York metropolitan area, has several ongoing jobs, and is solvent and operating profitably. It has gross revenues of several million dollars per year.

According to the Chapter 11 Affidavit filed with the Court, the debtor fell behind with its financial obligations and now requires bankruptcy relief because several large, slow-paying accounts drove the debtor into a position of low liquidity, preventing the debtor from maintaining timely payments to creditors, primarily withholding taxes it owes to the Internal Revenue Service.

In addition, the type of contracting services the debtor provides requires that a portion of each contract be set aside as “retainage” until the completion of construction. Despite the retainage amounts being held back as assurance for the quality of work, the retainage sums recently have taken an extended time to obtain.The debtor anticipates quickly obtaining confirmation of a Chapter 11 plan of reorganization which will enable it to pay all creditors in full.

The Meeting of creditors will be held on October 16, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 562 at 10:00 a.m.). The first Status Conference before Judge Grossman has not yet been scheduled.

LDR Trucking Corp Files for Chapter 11 Bankruptcy on Long Island Written by Craig D. Robins, Esq. LDR Trucking Corp. filed...
Pro Se Debtor, Deodath Ramcharan, Files Chapter 11 Petition Without Attorney Written by Craig D. Robins, Esq. Debtor goes it alone...
Venerable Huntington Restaurant Able Conklin’s Files for Chapter 11 Bankruptcy Relief Written by Craig D. Robins, Esq. Able Conklin’s Restaurant, a...

Related posts brought to you by Yet Another Related Posts Plugin.