A few months ago, we began to sit down and figure out what the direction of the Firm would be, moving forward, as we’ve grown since 2010.  And we began to realize a few things:

1. The area of Bankruptcy law is getting more crowded in New York City as more and more attorneys are coming into the practice and each website slowly begins to look almost identical to one another.

2. Many people were (are) coming to us and complaining about problems with receiving a loan modification even when their lender told them to stop making payments (thus ruining their credit). Now these same people face foreclosure in New York.

3. We like doing work for the most underprivileged in our New York City area but realized we could do more.

4. I like donating money to charity.

So, over the next year, here’s our plan:

While I’ve no doubt that you like reading the blog (except the emails I receive that say  ”I don’t like reading your blog.”) I overwhelmingly hear about how much you prefer our videos. So, we’re going to give you more of that.  In early 2012, we’ll roll out a video page that, I think, is unlike anything you’ve seen before on a law firm’s website.  As always, we’ll ensure that the videos are clear and understandable.  But we also realize there is not a “one size fits all” approach to either Bankruptcy or Real Estate, and so our videos will be more tailored to you.  Personalized.  They’ll answer questions directly.  Why?  Because there is so much out there on the internet, and the last thing you want is to research for hours and fail to find anything that address your particular situation.  In other words, I think we can do it in a different way that will be more easier, more direct, and more appealing for you.

Another issue we’ve identified is how many people across New York City have been victimized by their own lenders when it comes to loan modifications. I say victimized sincerely.  Client after client complains about listening to their own lenders advice on not making future payments, to their detriment.  We hope to change that.  In 2012, we’re going to substantially expand our presence in Foreclosure Defense in New York City.  It’s one thing if “Loan Mod USA “(fictional name) tricks someone into believing they can reduce their principal and payments.  It becomes quite another when the very bank that financed your home is telling you to take steps that hurt your credit score, and then foreclose on that home.  We hope to change that, and we believe we will. Look for a Gershburg Foreclosure Defense site in January 2012.

I’m perhaps most excited to address #3 and #4 above.  Ever since I established this practice five years ago, I believed it was imperative that I give back to the community in the form of Pro Bono work.  The reason?  I basically learned the practice of Bankruptcy through doing volunteer work at the Brooklyn Bar Association.  Each time I did a pro bono case I felt as if I was doing something good for the Brooklyn community.  Is it cliche and cheesy?  Maybe, but it was and continues to be, quite important for me.  Having said that, at the time of this blog, the Brooklyn Bar Association has 30 open Pro Bono Bankruptcy cases waiting to be filed.  I’ve called them and said that my firm would personally take on each one of them in 2012.  We hope to bring the open case load down to 0 by December of 2012.  Why?  Because it’s important for us and it’s the right thing to do.

This year, we’ve been able to donate money to the Wounded Warrior Project, an amazing organization that helps develop programs for  severely wounded  Vets come back home.  Also, in conjunction with the Street Academy for Financial Literacy and an absolutely amazing organization, Pencil.org, we’ve been able to bring Financial Literacy programs to a middle school in Brooklyn, and we are eager to expand this, with Pencil’s help, to several schools across Brooklyn in the coming year.  We’re teaching kids the value of a dollar and how to save it.  We’re teaching them about credit and debt and the relationship they have.  And we’re teaching kids good money habits that can transform their lives as they grow older.

In addition, the communities where our offices are located (one in TriBeCa and one in Sheepshead Bay) are incredibly important to me.  I’ve lived and worked in both areas and they are close to my heart.   In 2012, we ‘ve pledge to donate up to 10% of the profits of Daniel Gershburg, Esq., P.C. to various charities working in both areas (email us if you know of worthwhile charities in either community). Beyond that, we’re putting even more of an emphasis on doing volunteer work .  In fact, starting in 2012, our staff they will receive paid days off for doing volunteer work at the charity of their choice.

So, why am I telling you all of this?  First, because I think it’s time we did this.  I’m incredibly happy with our website, but it’s time we do something different…again.  I think that law firms and social media and tech are a great combination. In fact they’re so great that everyone is doing it. In fact so many people are doing it that you can’t tell the difference anymore.  Everyone is on Facebook and Twitter and LinkedIN and that’s fine. But this blog has never been here to scream “Look at us, we’re great!”; That’s unethical.  This blog and site were designed to serve a purpose, which was to make finding the information you need easier for you while you search at work.  We hope to do that with our new video page.  We hope to do that with our new Foreclosure Defense Page.  And, most importantly, we hope to do that by doing things you can’t possibly do online.  We hope to do our part in changing our communities.

I wish you the very best in this holiday season and the New Year.

-Daniel

In the opinion of this Manhattan Bankruptcy lawyer, things are getting worse, not better.  Unemployment hovers around 9% (those are the official numbers.  The unofficial numbers are likely much worse).  About 1 in 5 people is behind on his/her mortgage.  People are underpaid, and many of them don’t have enough to out food on the table and pay the rent at the same time.  Not everyone who was meant to file Chapter 7 Bankruptcy in Manhattan has filed Chapter 7 Bankruptcy in Manhattan.  To the contrary, many people are still waiting for that next big paycheck or job to come in.  They’re dealing with debt settlement companies when they should be filing.  They’re spending more and more on interest and late charges when they could realistically be completely out of debt in approximately 90 days.  They’re doing the same thing, but there is even less money to play with now.

In meeting with clients in our New York City office, we’re finding many potential clients have already run through their entire 401ks, accruing large fees to the IRS in the process.  They’ve stopped paying rent in hopes that they’ll be able to find a cheaper apartment while still paying their credit card minimums (they have no choice but to live on credit cards).  Things are getting worse, not better.

The advice has always been the same but I fear it still hasn’t sunk in.  You’re wasting your money in almost every other scenario.  The debt isn’t going away, nor is the stress.  The credit card companies and debt collection companies aren’t going anywhere either.  I can’t ever be clearer about this than I am now.  You’re wasting money as things seems to be getting worse, not better.  You’re paying debts that aren’t going away with money that could likely keep in a Bankruptcy filing. You may be wasting what money is left on this.

Now look, I know you may be thinking “Chapter 7 Brooklyn Bankruptcy Attorney Daniel Gershburg, you have a nice tie, and also, I have all this money in an account with my brother. I’ve never used the account. I have no check signing authority on the account. I don’t even know my name was on it. But it’s there, and I don’t want my brothers money taken should I file for Bankruptcy, so I’m going to remove it.” This is one version. The other, more common version, is that you do it, and you don’t tell your lawyer about it. Which is, by far, the worst thing you could possibly do. In either example, you’re engaging in hiding assets. This may not be the same, in your mind, as taking money out of your account and putting it under the mattress, but in the Courts eyes it is.

Heres the other part. Lets say your name IS on a bank account with some other family members and there is some money in it. If you’ve never taken a dime, if you’ve never accessed the account, if you’ve never deposited money into the account, the Trustee will likely not touch the account. However, if you’ve been using the account and you take your name off before you file, thats simply not allowed. And realistically, whats happening here. You’re trying to save a few thousand dollars while getting rid of tens of thousands of dollars of debt.

At the end of the day, the moral and the lesson is this: Don’t do anything without speaking to your consumer Bankruptcy attorney. I wouldn’t bring my car into the mechanic and say “I heard a noise, and I thought it sounded like it was going to be expensive, so I ripped out some hoses. Here. Fix it.” The same applies here. This is a huge financial decision for you. Make sure everything you’re doing is correct. Speak to us before you do it.

We’re very confident the same methods we use in New Jersey when speaking with our prospective clients will work just as well with a Bankruptcy client in Newark.  Or if someone owns a home in, lets say, Hoboken, we want to give you the same easy to understand information about filing Bankruptcy as you would get if you were our client in New York.  I’ve also hired an associate, Danielle Spallino, J.D. (Pending Bar Admission).  Shes loves what she does and everyone notices.  She shares the same philosophy we do.  She’ll be in New Jersey as often as I will.  So the basic point is this.  If you’re looking for Bankruptcy Attorney in New Jersey, whether it be for a Chapter 7 or a Chapter 13; if you want to know if you can keep your car in New Jersey and still file for Chapter 7 Bankruptcy, or any other questions, were now here.

Look, no one ever thinks they are going to be the ones sitting in a Bankruptcy meeting and having their debts discharged.  Its clearly not a life goal.  But that doesn’t mean that once you are in a situation like this, that you should do everything you can to avoid it, even at your emotional and financial peril.  had clients who weren’t sleeping for months prior to filing.  Clients who refused to use their own checking accounts for fear of having it frozen, or having their wages garnished.  What I’m saying is that Bankruptcy affords you a way out of this financial mess with a very straightforward procedure.  it allows you to restart your financial life, and in all honesty, your entire life, all over again.  So before you fork over your next minimum payment of several hundred dollar to a credit card that you know you’ll never be able to pay Ive off, at least speak to a Bankruptcy attorney as one of your options.

If you own a small business, the Trustee will likely ask you for tax returns for the last few years the business filed, as well as 6 months to one years worth of bank statements.

The first thing you need to ask yourself is:  Does the business have any assets that can be liquidated to pay creditors.  Most individuals do not.  You have an office and a few computers, but you likely dont have 20k servers or John Deere machines.  In that case the Trustee wont care at all about the business and likely wont liquidate a thing.  However, keep the type of business you run in mind.  If you have a dry cleaning business, youre likely to have a bunch of materials that can be sold for some money.  Same goes for a grocery store or a hardware store.  Real estate business is more unlikely (unless you have a considerable amount of comissions going in.)

The Chapter 7 Trustee in Brooklyn or wherever will also want to know how much the business has in the operating account.  Remember, unlike personal bankruptcy itself, listing your business in a Chapter 7 personal Bankruptcy doesnt come with any exmeptions.  If you have 10k in your business account, you cant protect a cent of it (unless its spoken for by other creditors or its their money.)  Keep that in mind.

Also look out for incoming monies.  Just because your business is flat broke now doesnt mean the Trustee wont ask about monies coming in.  If for instance you’re a commission based business, and you have $100 in the bank, but a 20k commission coming in, the Trustee is going to ask about it and want it, so be sure to be cognizant of that before you go see a Bankruptcy Attorney in Brooklyn.

Finally the Trustee will ask if you have partners in the business, as the Trustee cant technically touch the partners share.  If the assets in the business are worth 20k but you have three other partners, the Trustee might not touch the assets given the headaches that would come with it.

The bottom line is dont get scared about filing personal Chapter 7 Bankruptcy in New York City if you own a business.  Just make sure to speak to us about it before you file so that we can guide you about the proper way to file.