When Can a Mortgage Company Foreclose in New York?
When a homeowner falls far enough behind on their mortgage payments to their lender or servicer, they are at risk of foreclosure. In New York,
In 2005, the United States made substantial changes to its bankruptcy laws. One of the major changes is known as the Means Test, which is an income and expense test under the bankruptcy code. What does that mean? Simply put, it means that if you want to file a Chapter 7 bankruptcy for consumer debts, you must meet certain requirements. The Means Test requires that your “current monthly income” be less than the median income in your state for your particular family size if you want to be able to file for bankruptcy under Chapter 7.
The Means Test was designed to limit the use of Chapter 7 bankruptcy. It does this by deducting specific expenses from your “current monthly income” (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.” The debtor’s “current monthly income” is reduced by a set of allowed deductions specified under the “collection standards of the Internal Revenue Service.” Because these deductions do not necessarily reflect all the actual expenses the debtor incurs on a monthly basis, there are other deductions that are taken into account in the calculation. They include:
The higher your disposable income, the more likely you won’t be allowed to use Chapter 7 bankruptcy. If you do not pass the means test, it may be rebutted in the case of “special circumstances.” If you do not pass the Means Test, you are not necessarily out of options. You may still be eligible to file a Chapter 13 bankruptcy.
The Law Offices of David I. Pankin, P.C. have helped thousands of New Yorkers get a financial fresh start. The attorneys at the firm understand the nuances of the Chapter 7 bankruptcy Means Test and are dedicated to crafting legal strategies that are best suited to each client’s unique, financial situation.
For more information on how the firm can help you to control of your financial life, please contact our office by phone at 888-529-9600 to arrange for a free, initial consultation regarding the Means Test and Chapter 7 bankruptcy.
We have 3 convenient locations in Midtown Manhattan, Downtown Brooklyn and Melville, Long Island. We have helped clients from all five boroughs, Westchester, as well as Nassau and Suffolk counties.
Remember, “bankruptcy is not the end, it’s a new beginning.”
When a homeowner falls far enough behind on their mortgage payments to their lender or servicer, they are at risk of foreclosure. In New York,
The credit repair industry preys upon consumers desire for better credit. Last year, the industry had revenues of approximately $4.4 billion. This is up from
When experiencing financial hardship, some homeowners may fall behind on their monthly mortgage payments. This, in turn, can often lead to a foreclosure action against
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The Law Offices of David I. Pankin, P.C. provides bankruptcy, foreclosure and loan modification representation to clients throughout the New York area in boroughs that include Manhattan, Brooklyn, Long Island, Queens, Bronx and Staten Island. This website is a Legal Advertisement. Our firm assists in the discharge of debt. We help people file for bankruptcy relief under the bankruptcy code. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney client relationship.
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