Daniel Gershburg

Posted by: Daniel Gershburg, Esq.

A very short blog today. I have been, and continue to be impressed with many of my clients who come into my office to remedy their financial position. What I mean by that is the popular conception is that many people abuse the Bankruptcy system. They buy electronics, cars,etc., rack up a credit card or two…or 5, and then file for Bankruptcy. That is simply not the case. There are many clients who have walked into my doors and said “Look, I am in a terrible financial situation. Things haven’t been the same since (medical reason, 9/11, death in family, unemployment) but I have debts to pay and I want to pay them. Can you help me?” I am constantly surprised, and to be honest, inspired by those people who feel that their debts are their obligations and will go to great lengths, even though their credit is in a terrible state, to make ends meet while paying their debts. Just thought people should know that not everything is what it appears.

Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving a diverse clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy.

By: Daniel Gershburg, Esq.

A short post today to warn many of you of listening to “rumors” from members of the community about Bankruptcy laws. As I’ve stated in previous posts, in order to save some money, people have been attempting to file their Bankruptcy cases through community members as opposed to attorneys. Here is the problem with this (also questions posed from clients in my office)

Rumor #1-I cant file bankruptcy if I have any money in the bank. TOTALLY FALSE! The Median Test lays out exactly how much you can earn on an annual basis (and based on family size).

Rumor #2-I cant keep my car if I file for Bankruptcy. FALSE! This all depends on the amount of equity you have in your car. If you have a Toyota Camry and owe more than the car is worth, guess who gets to keep your car (hint…you).

Rumor #3-I cant keep my house if I file for Bankruptcy. FALSE! Again, this depends on the amount of equity you have in your house. Many clients differ, however for the most part most clients that come into my office have been victims/participants of the credit crisis and have very little, if any, equity in their household. What does this mean? It means the clients have the option of either (1) surrendering their house or (2) Reaffirming (meaning keeping the house if they can make payments).

There are so many more rumors that I can, and will go through, in future blog posts. But again the lesson to be learned is to go to an attorney if you are thinking of filing for Bankruptcy. While I understand that many people dont have the disposable income required, the alternative, going to a “community fixer” is not better and will cost you more money at the end of the day (incorrect filing, exemptions, etc.).

Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving a diverse clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy

By: Daniel Gershburg, Esq.

When I started my New Jersey bankruptcy office, I began to advertise in the school newspaper of my Alma mater-Rutgers University.  What I have found, and continue to find, is incredibly troubling.  More and more young people are attempting to file for Bankruptcy protection.   This is occurring for several obvious reasons.  The first, and likely most important reason is the proliferation of credit card companies on college campuses.  Often times credit card companies will link their cards to a giveaway.  Sign up to get pre-approved for a card, and receive free Basketball tickets, hats, etc.  Obviously, at the age of 18, this seems incredibly appealing.  Before you know it, you’ve signed up for 4 credit cards and you begin to use them.  You think you will simply pay the minimum each month, but as month after month passes by, and interest rate increases your balance, you realize that you wont be able to pay off these high balances.  

Ok, big deal, you’re in some debt and you now need to file for Bankruptcy.  Here’s why this is such a big deal.  #1-your credit rating is in the toilet like a frat brother after a party.  What does that mean to you?  That means not being able to qualify for a mortgage, car loan, and…wait for it….STUDENT LOANS.  You’re flat screen TV purchase just precluded you from qualifying for student loans for your senior year (unless you have a cosigner).  Or, you’ll get these loans with absurdly high interest rates, making it all the more difficult to pay off.  

#2-Employers check your credit report.  While it is against the law to not hire, or to fire, an individual based on whether or not they have filed for bankruptcy, employers will nevertheless not look at it as a plus when making a determination as to who to hire.  It’s clear that there also is a distinction between finding a 40 year old single mother filing for bankruptcy because she is having a tough time paying the bills after an illness, and an 18 year old college student filing for Bankruptcy.  

#3-You will have serious issues filing Bankruptcy again, if you ever need to.  A Bankruptcy petition asks whether or not you have filed for Bankruptcy in the last 8 years.  Lets say you’ve bought everything you could fit into your car at Best Buy at the age of 21 and now have to file for Bankruptcy.  That means for 8 years thereafter, you have to be perfect, or close to perfect financially speaking.  You’ll be more weary of purchasing a house because you’ll know it will be tough to file for bankruptcy again.  It will affect many life decisions that individuals make around the time they graduate college (You’ll also have a hard time going to grad school without student loans).  

Again, this blog isn’t intended to suggest that all young adults who file for Bankruptcy are irresponsible individuals who aren’t mature enough to handle credit cards and have no grasp of financial discipline.  Its to suggest that the vast majority are not.  Having said that, the price you will pay for your financial mistakes when you are younger may be more than you would pay if you were filing for Bankruptcy in your 40′s or 50′s.  Our younger years are when we decide what career path to take, if we should purchase our first home, if we should pursue advanced degrees, etc.  Taking all of that into account, it is clear that young adults should be that much more careful about applying for credit.  The consequences are staggering if they don’t use credit with a mature discipline.  

Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving a diverse clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester.  Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area.  Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy