Get Rid of Your Debt for a Fresh Start

With nearly 20 years of professional litigation experience, the bankruptcy attorneys of Todd Cushner & Associates, P.C. have the knowledge required to give you the debt relief you deserve.

Todd Cushner, Esq.

As a Brooklyn real estate developer in the 1980s, Todd Cushner felt the full effect of the market crash in 1987. While struggling under the weight of significant debt, an attorney friend suggested filing for bankruptcy. Although hesitant at first, Mr. Cushner eventually decided to appear before a bankruptcy court and present his case along with his attorney. After walking out of court debt-free, he chose to pursue a career in bankruptcy law in order to provide people with the same relief that he experienced.

The Benefits of Filing for Bankruptcy

Due to the way it has been talked about in the media, bankruptcy has received an underserved bad rap throughout the American public. In reality, filing for bankruptcy can clear your debts and give you a fresh financial start.

Some Advantages of Filing for Bankruptcy

  • Can expunge certain tax liabilities
  • Provides a fresh start for rebuilding your credit
  • No more irritating phone calls from creditors
  • No more garnished wages or frozen bank accounts

The Different Chapters of Bankruptcy

There are several chapters of bankruptcy; however, the most relevant ones are Chapter 7, Chapter 11, and Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common form of bankruptcy in America. Also referred to as a liquidation bankruptcy, Chapter 7 bankruptcy is overseen by a court appointed trustee. At Todd Cushner & Associates, P.C., our bankruptcy lawyers will work with you to ensure you receive all the debt relief you deserve without letting the system take advantage of your situation.

Chapter 7 Eligibility

To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. 11 U.S.C. §§ 101(41), 109(b). Subject to the means test described above for individual debtors, relief is available under chapter 7 irrespective of the amount of the debtor’s debts or whether the debtor is solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

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Chapter 11 Bankruptcy

Chapter 11 bankruptcy usually involves a corporation or partnership, although in certain scenarios individuals can also file for Chapter 11 bankruptcy. This type of bankruptcy reorganizes the assets, debts, and business affairs of the debtor. Filing for Chapter 11 bankruptcy can be an extremely complex process. Fortunately, our years of bankruptcy litigation experience can help you navigate your way to a successful outcome.

Chapter 11 Eligibility Timeline

The debtor has a period during which it has an exclusive right to file a plan. 11 U.S.C. § 1121(b). This exclusivity period may be extended or reduced by the court. But in no event may the exclusivity period, including all extensions, be longer than 18 months. 11 U.S.C. § 1121(d). After the exclusivity period has expired, a creditor or the case trustee may file a competing plan. The U.S. trustee may not file a plan. 11 U.S.C. § 307.

A chapter 11 case may continue for many years unless the court, the U.S. trustee, the committee, or another party in interest acts to ensure the case’s timely resolution.

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Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as a wage earner’s plan, adjusts the debts of an individual who has a regular income. This form of bankruptcy enables the debtor to keep his or her property and pay off their unsecured debts in a specified amount of time, and usually at a dramatically reduced amount.

Chapter 13 Eligibility

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $394,725 and secured debts are less than $1,184,200. 11 U.S.C. § 109(e). These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor. Id.

An individual cannot file under chapter 13 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111.

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Gavel atop a pile of hundred dollar bills

A Law Firm You Can Trust

The lawyers of Todd Cushner & Associates, P.C. have helped countless families and businesses get the debt relief they need. Contact us today to learn how we can help you get a fresh start.

 
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