Archive for the ‘Consumer Advocacy’ Category

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I received a Summons and Complaint in the mail, should I file for Chapter 7 Bankruptcy?

Thursday, September 9th, 2010

So…you’re getting sued.  Well, we previously discussed on this blog what happens when you get sued by a Creditor in New York and the available defenses you have. But lets say the Creditor served you properly, and you recognize the debt and it is an amount you owe.  What now?  Two choices.  You can either settle the debt, or you can file for Chapter 7 or Chapter 13 Bankruptcy in New York.  If you settle the debt it could take you months, and your credit will still be in rough shape.  In addition, they can actually write off the debt and make you liable for a percentage of what you paid.  But putting that aside, the best thing to do is to be realistic.  You’re not getting sued by a Creditor because you have a ton of cash lying around and you just dont feel like paying; you’re getting sued because you can’t afford to pay.  If thats the case then why waste your money attempting to settle over a long period of time and paying thousands upon thousands of dollars when you have other credit card bills that you can’t afford to pay.

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.

Posted in Bankruptcy, Consumer Advocacy, Credit Cards, Debt Settlement, Gersh Blog | No Comments »

Manhattan Chapter 7 Bankruptcy Attorney discusses the emotions behind filing for Bankruptcy

Monday, August 9th, 2010

When you’ve dealt with as many Chapter 7 Bankruptcy cases in Manhattan or Brooklyn or Queens as I have, a particular type of client emerges. You know, almost within the first few minutes of walking into the door, whether that person will be filing Chapter 7 Bankruptcy at that time….or not. You know because its an emotional response.

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.

Posted in Cars in Bankruptcy, Co-Op, Credit Cards, Debt Settlement, Gersh Blog, Homes in Bankruptcy, Jobs and Bankruptcy | 1 Comment »

Pressler & Pressler Froze My Bank Account

Friday, July 23rd, 2010

You’re kidding? And you never got served as well? Just something in the mail months after a judgment had been entered against you? Welcome to the world of debt collection in New York. Far be it from me to say whether or not service was correct, but I literally have hundreds of clients that have called me with the same problem. Out of nowhere, their bank accounts have been frozen by Mel S. Harris & Associates, Pressler and Pressler, Rubin & Rothman, or Kirschenbaum and Phillips.

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.

Posted in Consumer Advocacy, Debt Settlement, Gersh Blog | 4 Comments »

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