New Yorkers who have debt problems regularly don’t have enough money to pay a bankruptcy attorney. There’s a strong incentive to cut costs as much as possible, and one way to accomplish this, they’re told, is to hire a bankruptcy petition preparer. There are many reasons to steer clear of these folks.

Primarily, bankruptcy petition preparers are . . . → Read More: Bankruptcy Petition Preparers in New York Are Frequently Not Worth the Money

Once a primary mortgage is underwater (i.e., the payments left on the mortgage are higher than the total value of the house), the second creditor holding the second (or higher) mortgage is in a precarious situation. At this point the homeowner has plenty of options in this situation, including discharging it in bankruptcy and then stripping . . . → Read More: Is It Worthwhile to Settle an Underwater Second Mortgage in New York?

Frequently, when people file bankruptcy in New York, they don’t have much in the way of assets (e.g., a house and a car), but they do have quite a bit of debt. These cases sometimes have their difficulties, but for the most part a Chapter 7 or Chapter 13 will address the problem.

In other situations, though, . . . → Read More: Leasing Underwater Property While in New York Bankruptcy Is Usually Not a Good Idea

On February 7, 2012, the National Association of Consumer Bankruptcy Attorneys (NACBA) published the results of a survey of its 860 of its members. It found that a whopping four out of five bankruptcy attorneys reported a “major jump” in student loan debtors seeking counseling with bankruptcy attorneys. The NACBA characterized the problem as the “Student . . . → Read More: Bankruptcy Attorneys Recommend Returning Bankruptcy Protections to Student Loans

Most New York bankruptcies are either in Chapter 7 or Chapter 13. The two chapters provide benefits and drawbacks to petitioners, which means there are good reasons to file in one chapter and not another. For example, if you borrow money to buy a car, have a relative co-sign on the loan, and then run into . . . → Read More: Using Chapter 13 to Protect a Co-Signer in New York

The Federal Reserve tracks the amount of “nonrevolving” consumer debt in the United States. “Nonrevolving debt” contrasts with “revolving debt,” the difference being that revolving debt represents a set amount of credit that one can borrow in any amount at any time but can still reuse it once it’s paid off. Nonrevolving debt means the loan . . . → Read More: $1 Trillion of Student Loan Debt and Advice to Student Debtors in New York

When homeowners are deeply underwater on their mortgages and also have a second mortgage or home equity line of credit, they might be able to negotiate with the bank holding the second mortgage. The resulting settlement occasionally comes to a fraction of the total loan, and it’s understandable for people to wonder why second mortgagee would . . . → Read More: Banks Are More Willing to Negotiate a Settlement on a Second Mortgage in New York Than One Might Think

One creditor that can cause more hassles in a Chapter 7 New York bankruptcy than others is the government, specifically the IRS, New York’s Department of Taxation and Finance, or municipal revenue agencies. The bankruptcy code is kinder to the IRS than other creditors, but while tax debts generally receive “priorities” in bankruptcy—meaning they can’t be . . . → Read More: Yes, New Yorkers, Some Income Tax Debt Can Be Discharged in Chapters 7

Short selling a home in New York is one alternative for resolving the underwater mortgage. Others include refinancing, loan modifications, deed in lieu of foreclosure agreements, and of course bankruptcy. The short sale, though, is quite common and the process is essentially simple. The homeowner sells his or her house for less than the remaining . . . → Read More: A Short Guide to Short Sales for New Yorkers

For too many people, bankruptcy feels like giving up. Choosing other, riskier options may make them feel as though they’re still in control, and who knows? Maybe things will turn around for them. They run down their savings, rely on credit cards, and then as a last resort make a visit to a payday lender.

Payday lending . . . → Read More: Stay Clear of Payday Lenders, Bankruptcy Is So Much Safer