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

If she had a large amount of debt, I could help her.  If she had any debt, I could help her.  I could file a Chapter 7 Bankruptcy in New York for her and I could make sure she wouldn’t have to pay any types of credit card bills anymore.  If she had past due medical bills I could easily get rid of those also.  But that’s it.  That’s the most infuriating part.  I could help her get rid of nasty credit collectors calling her, or idiotic law firms that dont follow protocol, freezing her bank accounts without notice.  But I can’t really get her paid, or on her feet.  I can’t really help her afford luxuries like toothpaste.

And before you accuse me of being a bleeding heart, understand that I am 100% for personal responsibility.  But more and more I’m seeing clients who are working and working and they can’t possibly make ends meet.  I have a client who works a night shift….and a day shift, and he can’t afford his rent and he has no family to move in with.  Another, who bought a house, was told not to make payments to get a loan mod, and now faces foreclosure.  There must be a way to help these people.

Which brings me to my next point, which is that you can’t just throw money at the problem.  I donate a specific percentage of my profits to various organizations in an attempt to give back.  In 2012, we will donate 12% of all profits to various local organizations.  Everything from education for children in Kenya, to the Wounded Warriors Project (which is an amazing charity, by the way.)  But it’s not enough to actually transform someones life.  Thus far, my firm has partnered with The Street Academy of Financial Literacy and Pencil.org to bring Financial Literacy lessons to kids across Brooklyn.  But again, I can and should do more.  Which is why I’d like your ideas this holiday season.  As we embark and yet another few weeks/months where we say thanks for all we have (even if our families are insane…yes, yours too), we should also reflect on meaningful ways of giving back.  If you’ve any ideas/thoughts/etc., on how my law firm can really make an impact in Brooklyn or Manhattan, feel free to email us.  It’s not just donations, though.  I’m looking for real, concrete ideas to help people like the woman who lost her job when St. Vincents closed down. Or anyone you know who is trying to make ends meet.  If we can implement them, we will…and immediately.

I look forward to hearing from you.

The rest of us, to the best of my knowledge, are not immortal, and therefore we have to do some prudent financial planning going forward. Our life expectancies are going up. Our money has to stretch farther than ever. Which means we have to save more for retirement. Which means we have to put more money away now towards retirement. Which means we need to free up more money to put away but not paying for unnecessary expenses. Which means I have absolutely no idea whatsoever why you are paying credit card minimums when you are so neck deep in debt that you will never, ever, ever, be able to get out of it by doing the things you’re doing now. Like that buildup? It was OK. No big deal.

Heres my point: You have to assess your financial situation immediately and take steps to rectify it and put you back on the path you need to get on. If you’ve got a ton of credit card debt that you know you wont be able to pay off, and your sacrificing putting money aside because of it, then maybe you should stop. Or at least talk to a Bankruptcy Lawyer. Almost every single one of my clients, before they came to my office, thought that their debt was manageable. But how can you manage interest accruing at 30%. The Mafia doesnt charge that (there, um, is no mafia).

I’m not telling you to simply stop paying your bills and put money aside. Specifically if you’re not in over your head. But I am telling you that if you realize you’re only making minimum payments, then you have to have a conversation about what to do going forward. You can’t simply say “I was doing OK because I was paying minimums”. It would be weird if I owned a car and could only afford to put one gallon in at a time. Maybe thats telling me something. Maybe I shouldn’t own a car. Maybe I should figure out why I keep driving my car when I can only put in one gallon at a time.

Realistically speaking, you know when you’re in over your head. There is no magic formula. You just know. You might want to trick yourself into thinking if you just wait another year you’ll get that promotion or someone will give you money or your grandma will die and leave you the money in her will, but that likely wont happen. More importantly, thats another year of bad credit. Another year where you haven’t contributed to your IRA, 401k, your kids college fund. For what? For the sake of saying you’re paying minimums on cards you wont be able to pay off? Or making interest only mortgage payments on a house you know you can’t afford.

Its time to have a conversation with yourself. My grandmother may be immortal, but we are not. We’re going to need money to live on.

I’m not allowed to offer advice here really. Its supposed to be an informative blog that lets you know about recent issues in the Bankruptcy and Real Estate field, but lets be real for a second. If you’re settling some debt for 50% of what its worth, but you have $20,000 in other debt that you cant pay off, whats the point of settling that debt. If you could file a Chapter 7 Bankruptcy and be done with them all, for a fraction of what it would cost to settle each one, why wouldn’t you? Think your credit will be worse off? Not true. I can show you articles and studies. Think they’re going to take your stuff? Unlikely. New York has some of the most liberal exemptions in the Country now (thanks Governor Patterson-he never heard that phrase much, did he?). There is zero reason to unfreeze your bank account by settling on debts IF you have plenty of other debts you can’t pay. Why? Because those other creditors will likely try and freeze your accounts. Now we’re back to square one.

Look, to be honest, lawyers get paid either way. If they’re settling court cases or filing Bankruptcy. But I can’t express how much better Chapter 7 usually is for peoples livelihoods, pockets, and credit. Once you get around the whole “stigma” surrounding Bankruptcy, you realize how much more it can do for you. I know I sound like Im selling Bankruptcy Time Shares, but its really the case.

Like a warm and loving family member, we are here for you. Unlike a warm and loving family member, we will not ask to borrow your car.

Here’s an example to illustrate:

You’re being sued for 10,000.  You decide to settle.  You, after weeks of negotiating, settle for $6,000.  You now have to make $600 monthly payments, further distressing the amount of money you have to use. Plus you now likely can’t afford to pay your other credit card bills.  And to top it off, if you miss even ONE payment, the Creditor can say “No Deal, whole thing is now due”.    And, by the way, you’re still in a ton of debt.

OR

For about 1/3 of the price (approximation and depends on each individual case) you can file Chapter 7 Bankruptcy and get rid of all of your debt in 4-5 months and keep the $600 a month from going to your creditors in the above situation.

Again, YES, I am a Bankruptcy Lawyer in New York so obviously I prefer that you file for Bankruptcy.  But its not self interest.  It literally is because you save THOUSANDS, and don’t have to deal with the above nonsense.  It literally is the smart choice in almost ever single situation.  Contact us to find out more.

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.

So what happens next? You call them, they say they have your money and you owe the debt and to pay up because they are just going to collect it anyway? Not a chance. Get a lawyer. Do it yourself. Whatever is preferable to you, you need to understand that as cliche as it sounds for a lawyer to say this…YOU HAVE RIGHTS. They can’t just freeze your account without serving you properly in New York City. And guess what? Many of these firms don’t have the documentation at times to back up collecting the actual debt itself. It’s not as if Citibank can call Pressler and Pressler and say “Hey Jeanine Lopez (fictitious name) owes us $2,000. Go collect” It doesnt work that way. Debt collection is heavily regulated, even though in my opinion, most debt collectors do not follow the rules. Having said that, you need to realize that before you listen to the things they tell you, or the rights they claim to have, you have ways of fighting back. You can request something called validation of a debt, which they are required to provide you. You can file an Order to Show Cause with the Court. You can negotiate the sum due. Just make sure you take a step back, speak to someone, and then decide before losing your hard earned money.

http://www.msnbc.msn.com/id/38130515/ns/business-consumer_news/

Let me know your thoughts guys.  Always eager to hear

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