Posts by Michelle Labayen

Bankruptcy is all about strategy. And sometimes the biggest strategic decisions are the ones that people don’t think much about. For example, there are three ways for you and your spouse to handle a bankruptcy. You could file together. You could file separate bankruptcy cases. One spouse files while the other spouse doesn’t. In New…

Many of our clients worry their Chapter 13 budgets will be so tight that they won’t be able to do anything for the two to five years that they’re involved in their Chapter 13 bankruptcy plans. It’s good to have realistic expectations: Chapter 13 plans can be quite strict. But at the same time, knowing…

Every now and then a new collection agency will take over one of your accounts. And if the account is very old, they might offer to let you “settle” the debt for less than the full amount. It may even seem like a great deal. You pay 60% or 70% of the debt, and they…

Choosing between a Chapter 13 plan and a Chapter 7 plan can be a big decision, one that can impact you immediately. It could mean changing where you live, or agreeing to spend 3-5 years spending your money exactly as the court directs. And while a Chapter 7 is usually over too quickly to make…

If you used a co-signer to secure a mortgage, lease, car loan, or student loan, then you’re right to have some concerns over how bankruptcy will impact them. While it is possible to get through the entire bankruptcy process without hurting your cosigner at all, there are moves you can make to their detriment. Understand:…

Mortgages may disappear after your bankruptcy discharge, but liens stick unless your lawyer can make a case for removing them. Fortunately, there are established mechanisms in place which allow us to do just that.  Your loans just have to meet some specific conditions to allow it. And you have to file the right type of…

Bankruptcy is a complicated legal matter. There are many pitfalls. Running afoul of one of these pitfalls can cost you. In some cases, these mistakes may mean losing assets you could have kept. Others may mean you receive a case dismissal, instead of a discharge. I n the most severe cases, bankruptcy mistakes like the…

If you’re afraid to file bankruptcy, you’re not alone. Most of the people we talk to say they’re scared they’ll never be able to get credit again. And they say it because they’re aware that it’s very difficult to function without credit in our society. Fortunately, we don’t have to hesitate when we say that…

One of the biggest fears clients in NYC have about filing for bankruptcy is the cost of the bankruptcy lawyer. It’s easy to see why a lot of people are tempted by Internet sites that try to make it seem like filing is as easy as printing out a form. But hiring a bankruptcy lawyer…

Being sued over a debt is frightening and stressful. And many New Yorkers are extremely uncertain of what their rights are, or of what they can expect when the lawsuit is done. Here are four things you need to know so you can navigate this situation appropriately.   Avoid paying old debts. The first thing…

Bankruptcy is probably one of the three most common legal procedures an NYC resident will ever go through. The other two are divorce, and estate matters. It’s also one of the most misunderstood legal proceedings. Myths abound, and those myths can get people into a lot of trouble. The way you handle your finances before…