What the Economy Means for New York City Bankruptcy clients

This will be the first in a three part series (Sounds very “Dateline”-ish) detailing exactly how this economic crisis will affect Bankruptcy, Debt Settlement, and Real Estate in New York (just in my opinion).

The one issue which was before the Congress in the $700 Billion relief package was a provision allowing judges to basically change the terms of a debtor’s mortgage to make sure he/she was able to keep their house.  That measure wasn’t included in the final bill (and, although somewhat controversial, I am happy about it).  How does this affect you?  Well, for one, if you’re one of the people who still is in a house that they can’t afford, you may still just be treading water at this point.  At some point, either today, tomorrow, or five months from now, you’re going to have to deal with the fact that your house is more than you can afford.  One of the best ways to walk away from that situation is by seeking protection in New York under the Bankruptcy Code.  The foreclosure you will face, and most, if not all penalties or judgments as a result, will likely be erased in your Bankruptcy filing.  

 

Credit Cards:

 

Guess what happens when you can’t pay minimums on the credit cards that you use to buy your food, heat your home, and pay the gas that runs your car.  You may very well need help.  Do not, I repeat DO NOT go to any debt settlement companies.  The amount you pay them, and the terms they give you are tantamount to highway robbery (again just my opinion-but if you want to discuss why, I am more than willing).  If you find that you’re in trouble, call your cards immediately and try to renegotiate your interest rate.  If they say no, call an attorney.  If you’re making 50k a year and you’re 50k in debt, believe me you’re not paying that off in any reasonable period of time (if ever-mathematically speaking is close to impossible).  Look, the truth is this period is time is going to be difficult on all of us.  But its time we look at our economic realities.  I know that this is coming from a Bankruptcy attorney in New York and it sounds like a sales pitch.  It’s not. It really us just a plea for you to take a close look at your financial situation, and see what ways you can get yourself out of any mess you find yourself in.

 

Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving  clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester.  Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. He is a proud member of the National Association of Consumer Advocates.   Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy
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