Around the same date that MF Global filed for Bankruptcy protection, I took a cab from my Sheepshead Bay office to my Manhattan office.  I usually take the train, but that day, for one reason or another, I did not.  The driver picked me up in a beat up old Toyota 4Runner with horns on the grill.  That’s horns on the grill.  The conversation would change my perspective on things for some time to come.

The cab driver told me about working for a prominent law firm a few years back, only to be let go when the firm went belly up after some accusations of wrongdoing (happening more often these days).  He couldn’t find work in the legal sector because of his affiliation with his former employer, so he did anything he could to feed his family.  I mean anything.  He did construction work until the gas it cost him to get to his job in Connecticut ended up costing him almost as much as he was making for the day.  He worked in a pizzeria.  He sold trinkets on the street.  During that time his wife left him.  He told me that he never thought that would happen.  17 years of marriage down the drain once the money stopped coming in.  But then a funny thing happened.  I noticed he never once frowned or complained.  He took what life gave him, what this crisis gave him, and with it he shaped a new life.  He’s happy because his “scenery changes every day” while driving a cab.  He met someone new, with whom he fell in love; with whom he sells vitamins (yes, I’m serious) for extra money.  She treats him incredibly well, he told me.  And he misses none of the things he thought he would.

When the cab driver pulled up to my street, I asked him how much the cab fare was and typically when a driver doesn’t know he’ll call the dispatcher and ask.  But instead, said “I dont know. Whatever you think it typically is.”  I paid the man and thanked him.  I did so sincerely.

Somewhat dumbfounded, I stepped out of the cab and looked across the Financial District of Manhattan.  The area where bankers make money for themselves, and for New York City.  Where Occupy Wall Street, whether you agree with them or not, protests peacefully not two blocks from the epicenter of the financial world against companies and government allegedly run amok. And I thought of MF Global, and the millions of dollars missing from its books.  The countless lives likely harmed as a result.  And of a Governor who was painfully close to becoming the next Treasury Secretary.  I came to the realization that the storm is far from over.  The Country continues to balance precariously between a rebound and falling back into this deep recession that we can’t seem to lift ourselves out of.  But amongst all of this lost money and the realization that the security blankets that kept us safe at night were nothing more than a mirage (a hope or a dream), we still continue to persevere and move on and build new lives.  The very companies that were supposed to keep books and manage risk and ensure they were safe from implosion are the ones that are showing us that no one and nothing in this climate is immune.  That people who have gone broke have nothing to be ashamed of.   Understand that if you find yourself in the same position as this cab driver, or of any of your neighbors, that you’re not alone. In fact, you’re likely not the minority anymore.  The pillars that will support us as we rise again wont be companies like MF Global, but rather the hard workers that we are surrounded by every day.  The undefeated ones who refuse to accept the cards that have been dealt and instead make their own deck to play with.  This cab driver reminded me how difficult times are, and how much better they will ultimately be.  All of my clients, past, present, and future should take solace in that.

The new exemptions allow you to either opt in to the New York Bankruptcy Exemptions or the Federal ones. Really, its all boring lawyer stuff, but the bottom line to you is that you can now get rid of thousands upon thousands of dollars in credit card debt, stop wage garnishments, lawsuits, and STILL STILL have enough to start your financial life over again.

With the new law I figured there would be a ton of questions from people out there, and we were right. We’re going to be instituting something called “Free Hour Fridays” in the coming weeks. You get to talk to yours truly, via Skype, either through phone or video, free for one hour. Ask me any questions about filing Bankruptcy in Brooklyn, Queens, Staten Island, Long Island, the Bronx. You get it. I’m absolutely thrilled that we’ll be able to help our clients keep so much more of whats their while getting rid of their debt.

Stop wasting money on debt settlement and solutions that dont work, before speaking to a New York City Bankruptcy attorney about this new law!

Exemptions on all kinds of things have increased as well. The exemption for a vehicle has increased from $2400 to $4000 as well. Again, if your car is worth up to $4,000 more than what you owe on it, and you need to file for Bankruptcy in New York, you’ll be able to keep the vehicle now. There are now Federal exemptions to work with as well, which can mean a very large increase in the amount of cash you can exempt.

Contact our office to learn more about this bill and its implications to you. Merry Christmas to everyone out there.

I had a client in my Brooklyn office the other day. Debt well in excess of $100,000.00. The client also owned a vehicle outright. It was a pretty new vehicle as well, so it still had some equity in it. If the client filed for Chapter 7 Bankruptcy in Brooklyn, the client would most likely lose the car. I advised the client that because of the amount of debt that client had, it would still be highly beneficial to file for Bankruptcy. Without making minimum payments, he would be able to save several thousand dollars in the coming months, and purchase a vehicle (not a great one, not a sexy one, but one that ran). He didn’t want to do it yet, which is unfortunate.

I’m always very compassionate and understanding with clients, but there are also times when you have to realize that problems simply arent going away. If you’re in over your heard in credit card debt to the tune of $100,000.00, thats not going away. Those creditors aren’t going to stop. They’ll call all day, freeze accounts, garnish wages, for up to twenty years. As I keep saying, this practice has made me understand that Chapter 7 bankruptcy is in fact an emotional decision. You have to be ready to say “This is it. I start fresh now.” Along with that comes the realization that you can’t go bankrupt, and have your debts forgiven, and still have assets that are worth more than you’re allowed to exempt. That car that you’re holding onto is not going to stop your creditors from coming after you for money you owe them. That big bank account that you have, if its less than what you owe, wont pay off your debt. Financially speaking, you need to let go of these things to be able to start anew.

Look, I understand that we have connections to things. Its normal, and natural. But you must understand that this process is allowing you to get rid of thousands upon thousands upon thousands of dollars in debt for close to nothing in many case. If I gave you the opportunity to get rid of 90%-100% of your debt for pennies on the dollar( in the worst case scenario), you’d obviously take it. Anyone would. But if I said to get rid of that debt, you have to get rid of the motorcycle or RV that you love, or the Time share, then that question moves people into two categories. The first realize that there is no way they can pay all that debt back, and they want to be free from credit collectors, from annoying calls, from frozen bank accounts. They want to start fresh. The others….still think that somehow, someway, this will go away. I can’t, no matter what I do, help that latter category. At the end of the day, you need to make this decision for yourself. If you have to give up a car that you have an emotional attachment to, so that you can stop worrying about the thousands of dollars of unpaid bills chasing you, I think the decision is a clear one.

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.

First, the fair market value of the automobile must be determined.  The permitted federal exemption for an automobile is $3,225.00. Second, we must look at whether you have any loans or financing on the vehicle.  If you do, we must look at the difference between the loan payoff amount and the value of the vehicle.  If the difference exceeds $3,225.00, then you may have an issue with keeping your automobile. You may also have a problem keeping your automobile if you own your automobile outright and the market value exceeds the above-referenced federal exemption amount.  However, you may still be able to keep your car.  If a debtor does not use the homestead exemption ($20,200.00) on property they own, they are permitted to use half this exemption amount on other assets, such as their automobile.

For example, let’s say you live in Jersey City and own a vehicle with a market value of $10,000.00.  You also have a loan on this vehicle with a payoff amount of $8,000.00.  The equity you have in this vehicle is $2,000.00.  This amount is covered by the federal exemption and you will be able to keep your vehicle.  Let’s say, however, you own a vehicle with a market value of $10,000.00 outright (no loans or financing).  You also do not own any property in New Jersey.  You can use the federal motor vehicle exemption as well as half of the homestead exemption in order to keep your vehicle.

As you can see, there is more than one way to file for bankruptcy in New Jersey and keep your vehicle.  To discuss whether you will be able to keep your vehicle and/or any other assets you may own if you file for bankruptcy in New Jersey, contact Daniel Gershburg, Esq., P.C. today!

The first type of client, lets call him/her, “The Filer” (I didn’t go to Law School for originality) comes in and says “Hi, Im in debt way over my head and I need to file for Bankruptcy”. That person, as is pretty obvious, is likely filing for Bankruptcy right then and there. They’ve gone through the options, figured out they don’t make sense and has decided to take control and get out of this debt.

The second type of client is the “Meh” client. This client comes in and knows that Bankruptcy will likely be their best option, but they still have a multitude of concerns. Everything to “When is my credit coming back” to “What happens if I get a higher paying job after filing for Bankruptcy.” However, this client, emotionally, is also ready to file. They just need some reassurance that this is not financial armageddon.

The third type of client is the “Cmon” client. Ive had two of these in the past week. It’s an odd situation. This type of client is different from 1 and 2. They want to be re-assured that Bankruptcy ISNT right for them. And for some people, its not. People who have a small amount of debt and a large amount of income. People who have a large (over $100,000) amount of equity in their homes. People who own brand new cars outright. But many of these people that come see me do not have this issues. They simply believe that Bankruptcy is a trick. “What do you mean I get to get rid of this debt.” “Why wouldn’t everyone file for Bankruptcy then?” “Are you a cop? (j/k)” In any event I explain to these clients that they arent emotionally ready to file (like Jennifer Love Hewitt in the Ghost Whisperer) and that they should take some time to think over their options again. Many of them are in such financial dire straits that there is literally nothing that will get them out of their hole other than Bankruptcy, but they refuse to accept it, and there is only a limited amount I can do as a Bankruptcy attorney to get them there.

Its my pleasure and realistically I am blessed that so many clients meet with us on a weekly basis to discuss their options. Its just that at the end of the day Chapter 7 Bankruptcy in Manhattan is as much an emotional decision as it is a legal one.

No matter what client you are, we’d be more than willing to talk to you about your options.

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.