Author Archives: Thomas Denaro

At the meeting of creditors – or a 341 meeting – the debtor, who has filed Chapter 7 bankruptcy, meets with the trustee who will be overseeing his or her case.

When people hear the word “bankruptcy” they might envision a situation where the court seizes their home, cars, and other possessions to pay off their debts thereby leaving them with only a few assets.

Consolidating debt is the process of combining high-interest debts from student loans, credit cards, or car loans with a single lender. Debt consolidation may reduce your interest rate, and it could also result in a lower monthly payment on outstanding debts.

Most bankruptcy cases are caused by financial hardship – not irresponsible spending habits – which disproportionately affect low-income individuals and neighborhoods.

Whether you plan to file for Chapter 7 or Chapter 13 bankruptcy, and whether you are filing as an individual or a couple, you will no doubt have many questions and concerns.

As people overwhelmed with credit card bills, loan debt, mortgage payments, and other forms of secured and unsecured debts assess their options for getting their finances back to a manageable place, they often consider filing for bankruptcy protection.

Filing for bankruptcy protection is a complicated and often overwhelming process. To then hear that your claim is dismissed is not only frustrating, it can induce anxiety knowing that the pressure of your debts has not been resolved and that it’s only a matter of time before the collectors start calling again.

One of the key phases of filing for bankruptcy is taking a thorough inventory of your financial status. This includes your income, the assets you own (including currently-owned or recently-transferred property of yours), your monthly budget/living costs, and of course, a detailed accounting of the debts you owe.

Despite the generally negative connotation of debt, there are important benefits to carrying debt and eventually paying it off. Perhaps most obviously, taking on debt and making monthly payments in full helps you build good credit, allowing you to secure the best interest rates and/or highest limits on future credit cards, loan applications, car purchases, and home mortgages.

According to New York’s Civil Practice Law and Rules (CPLR) section 213 and understanding that most debts are considered “a contractual obligation or liability,” creditors have six years in which to file a collection lawsuit against a debtor.