FAQs

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  • Important Questions to Ask When Considering Bankruptcy

    What is the cost for filing Bankruptcy with a lawyer? We can give you a price range for Chapter 7. The cost for filing Bankruptcy cases in will typically run somewhere between $1000 and $2000 for the lawyer fee for Chapter 7. (Chapter 13 fees depend on so many factors that there is no point trying to figure out the fee without seeing you in person for a consultation.) The court filing fee will be another $335, and court credit counseling should run about $15. But the exact cost for filing bankruptcy depends entirely on the facts your case. There is only one good way for you to find out. You need to see a bankruptcy lawyer for a personal consultation. Unless you do that, you are just fishing around and wasting your time.



    The amount of court filing fees might be confusing. Many people thing a filing fee is an extra fee that goes to your lawyer. It isn’t. Filing fees are money collected by the court. The money for filing fees is used to pay the operating costs of the court. The filing fee for Chapter 7 bankruptcy is $335. The filing fee for Chapter 13 bankruptcy is $310. Normally, these fees are paid at the time you file your papers.



    Why don’t lawyers charge everyone the same bankruptcy fee? We could do that. But it will be a bad deal for you. Most people would wind up paying more than they have to. Here’s why. The price for everything in life always depends on how much it costs to make it. The time and effort to do your neighbor’s bankruptcy case might be a lot more than it takes to do yours. That’s why your neighbor’s case will cost more. Your case is more simple. Should you pay as much as we charged your neighbor? Those differences directly affect the cost to file bankruptcy.



    But some lawyers advertise a flat fee for everybody, don’t they? Yep. We see those ads just like you do. And we don’t believe them. We represent many clients who came over to us after they already went to those places. “Bait and switch” advertising has been around for a long time. (Think mortgage brokers, car dealers, jewelry stores, appliances stores, mattress stores, etc.) That’s because a new sucker is born every minute. And, bait and switch ads work on suckers. Going to a lawyer who plays “switcheroo” games on your fee is just asking for trouble later on.



    We offer a completely free bankruptcy consultation.How much does it cost to file bankruptcy? Come see us and find out. You will meet with a bankruptcy expert having years of experience. You will get all your questions answered. We will explain how everything works. We will tell you if we see any troublesome problems. We will not recommend bankruptcy unless you need it. We will offer you a flat fee for any work we recommend, and we will put our fee in writing. Our fees are reasonable. Also, we consider ability to pay. We will reduce our fees for anyone with an extreme hardship.



    An adequate bankruptcy evaluation will normally take anywhere from 30 to 60 minutes of office time.Without spending the time, a lawyer might not have enough information to tell you how much it will cost to file bankruptcy. Here are examples of some things a bankruptcy lawyer should know before quoting you the fee.



        Which kind of bankruptcy are you going to file:


        1. Have you been in business?


        2. Who are your creditors?


        3. What are your assets?


        4. What is your income?


        5. What are your basic living expenses"


        6. Is there an emergency, like a foreclosure sale or wage garnishment?


        


    You may have documents which the lawyer needs to review, such as lawsuit papers, deeds, and foreclosure notices.



    “How do I pay you?”Once you know the cost to file bankruptcy, paying it is the #1 problem most clients have. I wish I had a dollar for every time someone asked, “How do I pay you?” Some people who need bankruptcy will never be able to pay a lawyer. However, most people will be able to afford a lawyer if they come to us. Without an experienced lawyer , you are running some big risks. Some of the problems we see in such cases are very serious where people file without a lawyer:



        1. Lost assets that might have been protected.


        2. Failed to discharge taxes that might have been dischargeable.


        3. Had their bankruptcy denied.


        4. Filed under the wrong chapter.


        5. Lost their home because the lawyer gave the wrong instructions.



    What can be done to make it easier to pay the cost for filing Bankruptcy?



    There are ways that make it easier to pay the cost to file bankruptcy. There are things that lawyers can do. And there are also some things that clients can do.



    At my law firm, we struggle to stay affordable. There are several ways we do this. For one thing, we don’t waste client money paying for fancy offices. We don’t have oriental rugs on the floor. We don’t have fancy furniture. We keep our offices simple and functional. The biggest cost advantage that our clients benefit from is our experience . We can do most things in a fraction of the time it takes a less experienced lawyer. The cost savings is passed on to you.

  • 12 Myths of Filing for Bankruptcy

    Like most big, bad scary things, bankruptcy has a reputation based on a few tidbits of truth and a lot of embellishment. And like most creepy crawlies, it's not nearly as frightening once you know the truth.



    With a mind toward declawing the monster, here are a dozen misconceptions about bankruptcy:



    1. Everyone will know I've filed for bankruptcy. Unless you're a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, manpower or inclination to run all of them, although some local newspapers do print the names of those who have filed in that community.



    2. All debts are wiped out in Chapter 7 bankruptcy. Certain types of debts cannot be discharged, or erased. They include child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud.



    3. I'll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it.



    While bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing.



    For most people, they'll pass through a bankruptcy case and keep everything they have. If you have a mortgage or a car loan, you can keep the property as long as you keep making payments (like the rest of us).



    4. I'll never get credit again. Quite the contrary. It won't be long before you're getting credit card offers again. They'll just be from subprime lenders that will charge very high interest rates. "There are innumerable companies that will provide credit to you," says California bankruptcy attorney and trustee Howard Ehrenberg.



    I don't advise any of my clients to run out and run up the bills again, but if someone does need an automobile, they can go and will be able to get credit. You don't have to go underground or something to get money. 



    5. If you're married, both spouses have to file for bankruptcy.Not necessarily. It's not uncommon for one spouse to have a significant amount of debt in their name only. However, if spouses have debts they want to discharge that they're both liable for, they should file together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who didn't file.



    6. It's really hard to file for bankruptcy. It's really not. Technically, you don't even need an attorney -- you can do the paperwork without one. However, going through the procedure alone is not recommended.



    7. Only deadbeats file for bankruptcy. Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness. They've struggled to pay their bills for months and just keep falling further behind.



    8. I don't want to include certain creditors in my filing because it's important to me to pay them back someday, and if the debt is discharged, I can't ever repay them. Bless you for even thinking about such a thing. You're no longer obligated to repay them, but you always have the opportunity. If your conscience won't let you sleep because you didn't pay your debts, there's nothing in the bankruptcy code that prevents you from doing that once you're back on your feet. But it is nearly impossible to leave any account with a balance out of your list of creditors. In general, all creditors receive notification of your bankruptcy filing, whether they are listed in the petition or not.



    9. Filing for bankruptcy will improve my credit rating because all those debts will be gone. Unlike other negatives, which stay on your report for seven years, bankruptcy can be there for 10 years, but you can obtain a mortgage as short as 2 years after filing.



    10. You can't get rid of back taxes through bankruptcy. Generally speaking, this is true. However, there are certain rules that allow you to eliminate tax debts if they are at least 3 years old.



    11. You can only file for bankruptcy once. The truth is, you can file for Chapter 7 bankruptcy only once every eight years. For Chapter 13 reorganization, you can file more often than that.



    Of course, that doesn't make it a good idea.



    12. I can max out all my credit cards, file for bankruptcy and never pay for the things I bought. That's called fraud, and bankruptcy judges can get really cranky about it.




    Here is a link to the original article on the MSN Money website that I thought my clients would be interested in reading. They are myths to filing bankruptcy and are common mistakes in the perceptions of the general public.



    http://money.msn.com/credit-rating/12-myths-about-bankruptcy-bankrate.aspxu 

  • Life After Bankruptcy

    You have a fresh start, and some new challenges. Your credit rating, which probably wasn't all that great already, will be impacted by filing for bankruptcy. Filing for bankruptcy will have a short term negative impact on your credit rating, but not filing for bankruptcy may be worse. Not filing for bankruptcy and continuing to incur late fees, legal charges and judgements will continue to bring down your credit until you do something about it.



    You really need to ask yourself several key questions including, 'how did I get here? What could I have done differently and what should I do differently in the future? And what have I learned from all of this? Your answers will help you create a better financial afterlife in the wake of a bankruptcy.



    Many of my clients tell me that they were able to obtain a new car loan immediately after filing a chapter 7 bankruptcy, even while it is still on their credit report. FHA guidelines also allow you to get a mortgage two (2) years after filing a ch. 7 bankruptcy. You will also get solicited for new credit cards almost immediately because you can only file for a chapter 7 once every eight (8) years. The creditors know you have to pay back your debt to them so they will make credit easy to obtain, although at slightly higher interest rates. Generally, you do not want to incur more credit card debt, however you may want to get one credit card for emergencies or for contingencies such as booking plane tickets or car rentals. Remember, the whole point of filing for bankruptcy in the first place was to rid yourself of debt and get a fresh start, not to get into debt all over again.



    After your bankruptcy has been discharged, you need to re-establish your good credit. You need to do so right away for a chapter 7 or after reorganization for a Chapter 13. Obviously, continuing to pay your other bills on time such as your mortgage and utilities will help to build up your credit. You may also want to get either a secured or unsecured credit card and pay it off every month. There are reputable companies available who will help you to build your credit back up. This can be explained more during your free initial consultation.



    You are only able to receive a discharge in a chapter 7 bankruptcy after eight (8) years have passed since the commencement of the last case in which you received a discharge. You generally can file another chapter 13 case sooner (usually 4 years) if the need arises. Thus, you should not file a bankruptcy if you need the option of doing it again in the next few years. The case may arise if the reason you are filing bankruptcy is to discharge medical bills and you may have to incur additional medical bills in the future.

  • How Much Does it Cost to File Bankruptcy?

    What is the cost for filing Bankruptcy with a lawyer? We can give you a price range for Chapter 7. The cost for filing bankruptcy cases will typically run somewhere around $1,750 and higher for complicated cases for Chapter 7, which includes the court filing fee and credit report fee. (Chapter 13 fees depend on so many factors that there is no point trying to figure out the fee without seeing you in person for a consultation.) The court filing fee is $338, and court credit counseling should run about $15. But the exact cost for filing bankruptcy depends entirely on the facts your case. There is only one good way for you to find out. You need to see a bankruptcy lawyer for a personal consultation. Unless you do that, you are just fishing around and wasting your time.



    The amount of the court filing fee might be confusing. Many people think the filing fee is an extra fee that goes to your lawyer. Filing fees are money collected by the court. The money for filing fees is used to pay the operating costs of the court. The filing fee for Chapter 7 bankruptcy is $338. The filing fee for Chapter 13 bankruptcy is $313. Normally, these fees are paid at the time you file your papers.



    Why don’t lawyers charge everyone the same bankruptcy fee? We could do that. But it will be a bad deal for you. Most people would wind up paying more than they have to. Here’s why. The price for everything in life always depends on how much it costs to make it. The time and effort to do your neighbor’s bankruptcy case might be a lot more than it takes to do yours. That’s why your neighbor’s case will cost more. Your case is more simple. Should you pay as much as we charged your neighbor? Those differences directly affect the cost to file bankruptcy.



    But some lawyers advertise a flat fee for everybody, don’t they? Yep. We see those ads just like you do. And we don’t believe them. We represent many clients who came over to us after they already went to those places. “Bait and switch” advertising has been around for a long time. (Think mortgage brokers, car dealers, jewelry stores, appliances stores, mattress stores, etc.) That’s because a new sucker is born every minute. And, bait and switch ads work on suckers. Going to a lawyer who plays “switcheroo” games on your fee is just asking for trouble later on.



    We offer a completely free bankruptcy consultation. How much does it cost to file bankruptcy? Come see us and find out. You will meet with a bankruptcy expert having years of experience. You will get all your questions answered. We will explain how everything works. We will tell you if we see any troublesome problems. We will not recommend bankruptcy unless you need it. We will offer you a flat fee for any work we recommend, and we will put our fee in writing. Our fees are reasonable. Also, we consider ability to pay. 



    An adequate bankruptcy evaluation will normally take anywhere from 30 to 60 minutes of office time.Without spending the time, a lawyer might not have enough information to tell you how much it will cost to file bankruptcy. Here are examples of some things a bankruptcy lawyer should know before quoting you the fee.



        Which kind of bankruptcy are you going to file:


            - Have you been in business?


            - Who are your creditors?


            - What are your assets?


            -Is there an emergency, like a foreclosure sale or wage garnishment?


            - What are your basic living expenses?


            - Is there an emergency, like a foreclosure sale or wage garnishment?



    You may have documents which the lawyer needs to review, such as lawsuit papers, deeds, and foreclosure notices



    “How do I pay you?” Once you know the cost to file bankruptcy, paying it is the #1 problem most clients have. I wish I had a dollar for every time someone asked, “How do I pay you?” Some people who need bankruptcy will never be able to pay a lawyer. However, most people will be able to afford a lawyer if they come to us. Without an experienced lawyer , you are running some big risks. Some of the problems we see in such cases are very serious where people file without a lawyer:


            1. lost assets that might have been protected;


            2. failed to discharge taxes that might have been dischargeable;


            3. had their bankruptcy denied;


            4. filed under the wrong chapter;


            5. lost their home because the lawyer gave the wrong instructions.



    What can be done to make it easier to pay the cost for filing Bankruptcy?



    There are ways that make it easier to pay the cost to file bankruptcy. There are things that lawyers can do. And there are also some things that clients can do.



    At my law firm, we struggle to stay affordable. There are several ways we do this. For one thing, we don’t waste client money paying for fancy offices. We don’t have oriental rugs on the floor. We don’t have fancy furniture. We keep our offices simple and functional. The biggest cost advantage that our clients benefit from is our experience . We can do most things in a fraction of the time it takes a less experienced lawyer. The cost savings is passed on to you.

  • What the Credit Industry Doesn't Want You to Know

    The credit industry wants to discourage debtors from filing for bankruptcy protection. In an effort to collect on debts, creditors can be aggressive and frequently try to frighten hardworking people. At The Brooke Law Firm, we want to make sure those in financial distress understand the truth about filing bankruptcy.



    From our office in Brightwaters (next to Bay Shore in Suffolk County), our firm has helped thousands of clients get the debt relief they need through Chapter 7 and Chapter 13 bankruptcy. During a free initial consultation, will meet with you and answer all your questions about bankruptcy and how it can affect your life. Do not let the credit industry scare you. Get the facts.



    Did You Know?



    Here is some information you may not know about bankruptcy :



            1. Recent bankruptcy laws are not as restrictive as you might think— While it is true that these laws created more steps and paperwork for bankruptcy filings, these changes will most likely affect your bankruptcy attorney more than they affect you.


            2. A majority of individuals who file for bankruptcy do not lose any of their belongings— Creditors would like you to believe that if you file bankruptcy, you will lose your house, your car and all your personal belongings. The truth is that a majority of petitioners retain all their property.


            3. After you file bankruptcy, creditor harassment must stop— Once you file, an automatic stay goes into effect, prohibiting creditors from contacting you.


            4. You have the power to stop a home foreclosure— Filing bankruptcy halts all foreclosure actions, giving you room to breathe.


            5. You can rebuild your credit— Once your debt is discharged, you will be able to work on repairing your credit score. Many people get approved for a secured credit card or loan within a year after filing bankruptcy. You may even have the ability to avoid high interest rates.


            6. Many people filing bankruptcy are good people who have fallen on hard times— The credit industry would like you to believe that only deadbeats file bankruptcy. However, a large number of petitioners got into financial trouble because of job loss, divorce or unforeseen medical expenses.


            7. Bankruptcy offers the best solution to obtain a fresh start after suffering from a financial hardship— Bankruptcy is usually a one-time, one-fee proposition. Your fresh start begins immediately after filing.

  • Bankruptcy vs. Debt Consolidation

    If you are struggling with debt and looking for a way out, it is wise to explore your options. You have probably seen or heard advertisements for debt consolidation services that promise to work with your creditors to consolidate your debt and significantly lower your monthly payments. We urge you to use caution before contacting one of these services. Like most promises that sound too good to be true, they often are. At The Brooke Law Firm we will help you explore all of the debt relief options available to you. We are a bankruptcy firm, but we do not push our clients into bankruptcy if we do not think it is the best option for them. We are committed to helping our clients resolve their debt problems, achieving true debt relief and avoiding potential debt consolidation scams.Call (631) 397-0042or contact us online for a free consultation with a Long Island bankruptcy lawyer. It could be your first step on the road to debt relief.



    Is Debt Consolidation Right for You?



    If you hire a debt consolidation service, the best case scenario is that they will act in good faith and attempt to work with your creditors to consolidate your debt and negotiate lower payments. The question is: How are they going to get your creditors to go along with the plan?



    In many cases, debt consolidation services have no leverage and no means of providing lenders with incentive to agree to a debt consolidation. If, after months of waiting, the company is not able to help you, you will be left with all of the debt plus months of interest and/or late fees. Plus, you probably paid good money to the debt consolidation service. More often than not, the fees are more excessive for less relief than a discharge in a bankruptcy.



    The above scenario is based on the assumption the consolidation service is acting in good faith. Since these companies are largely unregulated, consumers are putting themselves at risk by handing money over to them. A bankruptcy law firm is backed by the power of the federal bankruptcy code. When you file for bankruptcy, you do not have to get your creditors to agree to the plan. It is enforced by the bankruptcy court.



    Bankruptcy is not right for everyone, but those who it can help are usually at a disservice by hiring a debt consolidation service.

  • Reaffirming Debts Such as Car Loans

    If you are behind on car or mortgage payments, which are classified as secured debt, and you want to keep the property after filing a Chapter 7 bankruptcy, you may be thinking about a reaffirmation agreement. By reaffirming the debt you owe, you are able to keep your vehicle or personal property recently purchased, provided you are able to make the payments.



    However, reaffirmation agreements can be complex. To get all the information you need to make a sound decision, speak to us at The Brooke Law Firm. Our firm has helped thousands of individuals throughout Long Island achieve debt solutions that work for them. Meet with us to discuss your situation during a free consultation.



    How Does a Reaffirmation Agreement Work?



    Since home mortgages and car loans are considered secured debt, if you have defaulted on your payments, the lender can take the property from you. With a vehicle, it is referred to as repossession . With a home, it is a foreclosure action.



    By reaffirming the debt, you are essentially promising the lender that the debt will not be discharged in bankruptcy. It involves entering into a new contract with the creditor for the remaining amount due. There are certain benefits to reaffirming a debt such as being reported on your credit report as being paid which will help you rebuild your credit.



    Should I Sign a Reaffirmation Agreement?



    If you wish to keep your vehicle you may need to sign a reaffirmation agreement. However, it is important that you understand that entering into that contract will make you personally liable for that debt, despite your bankruptcy relief. Therefore, it is critical that you can afford the payments established in the new creditor payment plan. The payments and interest rate stay the same, and are sometimes even lowered, and you are guaranteed the lender won't take the property as long as you are current with payments.



    When the Financial Stakes Are High, Get Professional Advice



    Reaffirmation agreements only apply if you file a Chapter 7 bankruptcy, not a Chapter 13 bankruptcy. To determine if you are eligible for Chapter 7 bankruptcy, you must pass the means test. We will meet with you in a free consultation to answer all your bankruptcy questions.

  • Student Loans and Bankruptcy

    After working hard to improve your education, it can be frustrating to deal with massive student loan debt. Recent graduates often struggle to make ends meet, let alone pay down their loans. If your student loan debt is causing unmanageable financial hardship, it is time to talk with a bankruptcy attorney.



    Generally, student loans are not dischargeable in bankruptcy but it is possible under certain circumstances. Under the Brunner test, a bankruptcy court looks at the following three factors to determine if repayment of your student loans would cause undue hardship, thereby justifying the discharge of some or all of your student loan debt through bankruptcy.


    They factors are: based upon your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if you are forced to repay your loans. Your current financial situation is likely to continue for a big part of the repayment period and you have made a good faith effort to repay your student loans.


    By filing either Chapter 7 or Chapter 13 bankruptcy, you can free up funds, making it easier to pay your student loans. At The Brooke Law Firm, we know the bankruptcy laws from the inside out and will explore every option available to get the relief you need.



    Helping You Obtain an Increased Cash Flow



    While you will most likely not be able to eliminate your student loan debt, there are ways to get the debt under control. By filing Chapter 7 bankruptcy, we can help you discharge your unsecured debts, such as credit card bills and medical expenses . Because you will no longer need to pay those debts, money is freed up to focus on your student loan.



    By filing Chapter 13 bankruptcy, it is possible to reduce the amount of your monthly payment to something more workable without the threat of penalty. Your student loan could also be deferred for a period of time. To learn more about your options, call our office in Brightwaters (next to Bay Shore in Suffolk County) at (631) 397-0042 to arrange a free initial consultation.

  • Do I Make Too Much Income to Qualify for a Chapter 7?

    New York Bankruptcy Means Test



    If you would like to file a Chapter 7 bankruptcy you must pass the New York means test. The test only applies to higher income filers which means that if your income is below the New York median for your household size you are exempt from the test and may file a Chapter 7. While the information below is a little complicated The Brooke Law Firm is an expert in the Means Test and will do the calculations for you. 



    If your income is higher than the New York median you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a Chapter 13 bankruptcy.



    Means Test Exemptions



    If your debts are not primarily consumer debts then you are exempt from the means test. You are also exempt from the means test if you are a disabled veteran and incurred your debt primarily during active duty or performing a homeland defense activity.



    New York Median Income



    If your currently monthly household income is less than the New York median income for a household of your size there is a presumption that you pass the means test and are eligible to file a Chapter 7 bankruptcy.



    Your average household income is determined by averaging your monthly income over the last six calendar months. If you are over the median income limit and your income has declined over the last six months, then waiting one or more months might bring your income under the median level for New York. Once you determine your average monthly income you multiply that by 12 to determine your annual income for the purpose of New York median income test.


    As of May 15, 2022:

    Household Size Annual Income

    1                                 $63,548.00

    2                                      $80,784.00

    3                                 $96,854.00

    4                                 $117,706.00


    Means Test



    If your income is over the New York median income for a household your size then you must complete the means test by calculating your income and expense information.



    Income includes almost all of sources of income you may have including, but not limited to, business income, rental income, interested and dividends, pensions and retirements plans, amounts paid by others for your household expenses, and unemployment income.



    Much of the information related to your expenses is based on national, New York, and local averages and standards and comes from the Census Bureau and the Internal Revenue Service. There are some actual expenses you are allowed to include such as obligations you are legally required to pay and expenses necessary for health and welfare.



    After you have collected all the required information, you subtract all of your allowed expenses for New York from your income to determine the amount of income under the bankruptcy law that you have available to pay your unsecured creditors in a Chapter 13 plan; or if the expenses allowed are more than your current monthly income you qualify for a Chapter 7.

  • What to Do When You Can't Afford an Attorney?

    The Eastern District of New York Bankruptcy Court has instituted an electronic self-representation platform (eSR) on it's website to help individuals file a chapter 7 bankruptcy "pro se". Below is the link:


    https://www.nyeb.uscourts.gov/filing-pro-se-without-attorney

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