Archive for the ‘Consumer Advocacy’ Category

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Queens Bankruptcy attorney Daniel Gershburg constantly hears “I did not get served by Mel Harris and they’re suing me”

Friday, April 9th, 2010

Lets put it this way, I am not singling out Mel Harris.  I hear about not getting served from firms such as Rubin & Rothman, Cohen and Slamowitz, Pressler and Pressler, and many other debt collection firms in New York.

So you didnt get served but they’re suing you…now what?

Well, this Queens Bankruptcy Attorney would tell you NEVER to call them and leave it at that.  You think a phone call is proof of anything but you having a phone?  Its not.  And don’t send in random letter either (notarized doesnt it make it the end all be all either).  If you’re getting sued by any of these debt collection firms and you don’t think you were ever served with papers then it’s your job to go into court and “answer” the complaint against you, or hire a lawyer (hi!) to do that for you.  New York law has explicit requirements as to how you can be served in these actions.  Believe me, you’re not alone in thinking this suit came out of nowhere.  Thousands upon thousands of people across Queens, and all of New York say that they were never served with any papers but now there are judgments against them.  If they can’t prove they served you, they would have to restart the case all over again, or, in some instances, they could have the suits completely dismissed altogether.

So the lesson of the day is not simply to fight back against these firms by sending certified mailings, but its instead to have proper representation in court and make them prove their case before they start freezing your bank accounts and taking your salary and having it be a complete surprise to you.  The worst thing you can do is nothing at all.

Posted in Consumer Advocacy, Credit Cards, Debt Settlement, Gersh Blog | View Comments

Staten Island Bankruptcy Lawyer Daniel Gershburg discusses the inevitability of Bankruptcy

Sunday, February 7th, 2010

Ive handled many Chapter 7 Bankruptcy cases for clients in Staten Island, as well as everywhere across New York.  One of the things that I notice the most when a potential Chapter 7 client walks into my office is that clients emotions.  What I mean by that is whether theyve accepted the fact that it is literally mathematically impossible to pay off the amount of debt they have, and therefore that Bankruptcy may be the only realistic solution for them.  I just wish that many of these individuals were able to discover that sooner, as it could have saved them literally thousands of dollars.

Here is what I mean as an example.  If youre someone who makes about $40,000 a year in gross wages (before tax) and you have approximately $20,000 in debt or more, chances are you will NEVER pay off this debt.  If you havent missed a payment, you’re like paying the minimum on many of these cards since it would be implausible that youd be paying the entire amount of the balance and living on 40k a year BEFORE taxes.  If you’re keeping a balance, youre likely paying a rate of anywhere from 10-20%.  If you’ve missed a payment, that percentage likely went up to 30%.  If you do the math, there simply is no way at all that you could possibly make a dent in this debt while continuing to support yourself.  I understand that there are just so many emotions involved in something like this.  Fear, shame, embarrassment.  In any case, you need to realize that when you made these purchases that you had every intent to pay them back (I imagine).  And many of my clients who have finally come to grips with the fact that they need to file have contacted the creditors, but they are simply unwilling to compromise to payment plans that you can afford.

Also, when you settle a debt, you can be taxed on the amount you save as regular income.  So if you settle a 10k debt with a creditor for 5k, you may be responsible for taxes on the 5k you saved as ordinary income.

Look at the end of the day this area of law has more to do with your emotions than anything legal.  We are able to get the vast majority of people through a Chapter 7 case in Staten Island, Brooklyn, Manhattan or anywhere in New York with little or no problem.  But this issue is an emotional one.  Once you come to grips with the fact that there is no way you could possibly pay back this amount of debt you have, the decision can become a much clearer one for you.

Posted in Bankruptcy, Debt Settlement, Gersh Blog | View Comments

Brighton Beach Bankruptcy Lawyer Daniel Gershburg discusses how Cohen & Slamowitz, Rubin & Rothman and the rest can freeze your bank account without you knowing

Tuesday, December 22nd, 2009

I am a Manhattan Chapter 7 Bankruptcy attorney but there are numerous instances where I have clients in New York City who do not want to file for Chapter 7 Bankruptcy in Brighton Beach, Coney Island, or whereever. Instead, they have one or two unpaid bills that are now in the hands of collection firms like Rubin & Rothman, Pressler & Pressler, Cohen & Slamowitz and the rest. Heres the constant problem that they have. They get these absurdly harrassing phone calls from these companies (Ive never been part of the convo, but my clients tell me they are harassing phone calls) and then the client gets scared and will give up a crucial piece of information, like a social security number or a bank account number. At that point, good luck. Almost immediately, you’ll have these collection firms freezing these accounts. The only way to get your money out of that account is to file an Order to Show Cause with the local court, filing for Bankruptcy, or agreeing to a settlement (sometimes this doesnt even work.) So whats my advice? Well my advice is that you should NEVER EVER disclose any personal information to these collection firms, unless and until you speak to an attorney. Furthermore, you shouldn’t ever give up this information unless your provided with written proof of the validation of the debt from the collection firm. How do we know that they own this debt and can go after you for this money? How do we know that the amount they claim you owe for some unpaid debt is accurate? The answer is, we dont. Not until they prove it to us, on paper, and in a legally acceptable fashion. Do not believe what these collectors tell you on the phone when it comes to outlandish claims that they will get you fired, put in jail, or punished in some other ways. You have a slew of state and federal laws that are specifically made to help consumers when they deal with credit collectors. Make sure you’re aware of those and do not become another statistic. Someone who has had their account frozen, money garnished, or worse, because you were intimidated by these individuals. There are simple legal ways to fight back and ensure that what you’re doing is correct.

On a personal note, I’d like to wish all of our readers and clients a very Merry Christmas, a very happy healthy New Year and Happy Holidays. Our business has grown and grown thanks to your support. And we’re able to do what we love to do, helping consumers, because you continue to show us the confidence you have in us to treat you the way you deserve to be treated. All the best to all of you in the new year. May it be stress free and collection call free!

Posted in Debt Settlement, Gersh Blog | View Comments

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