FRIENDLY, AFFORDABLE AND KNOWLEDGEABLE Chapter 7 Chapter 13 Loan Modifications

Bankruptcy can feel like a life sentence for a credit score. The good news is most filers see their score return to near-600 or better within a year, according to recent data from the Consumer Financial Protection Bureau (CFPB); by two years, more than half are in the mid-600’s. In fact, you can begin repairing your creditworthiness in as little as six months. Once the report improves, filers often come to appreciate, rather than regret, the virtual “blank slate” Chapter 7 discharge offered.

If you’ve filed, or are preparing to file, for Chapter 7 bankruptcy, there are a number of steps you can take to quickly repair your credit. In general, rebuilding your creditworthiness comes down to quickly securing a line a credit you know reports to bureaus responsible for scoring; carefully maintaining a low balance, while still using your credit; and actively monitoring your credit score throughout for errors and discrepancies. There are pitfalls, such as receiving too many application denials too quickly, or not correcting errors on your report in a timely manner. Once you understand the basics, however, it becomes easier to fix your credit.

Credit reporting works by analyzing your ability to repay debt. This ability is quantified in two ways. The first way--and simplest, immediately following a Chapter 7 discharge--is a low debt load relative to income. Chapter 7 will discharge most, if not all, of your current debt, making this a bigger issue later in your creditworthiness quest. The second way reporting agencies analyze your creditworthiness is through your demonstrated history of repaying debts, such as making card payments. Though it may seem paradoxical, that’s why it’s important to secure new credit as soon as possible following discharge. But you have options, such as getting someone to cosign on a new loan. Above all, you need to manage that new debt carefully--federal law prohibits another Chapter 7 bankruptcy discharge filing before eight years have passed from the previous one.

Your lawyer might offer additional information about fixing your score, particularly in relation to the details of your filing. For most, however, your lawyer will primarily focus on managing the bankruptcy case itself. Most of these cases allow people to easily improve their scores on their own, following discharge

First steps to repairing credit after your bankruptcy

Before you do anything else, stay on top of any obligations not discharged by your Chapter 7 filing. Typically, these include student loan payments, child support obligations, alimony, back taxes, monetary court judgments and any debt you chose to reaffirm through the bankruptcy. Reaffirmed debts might include payments on a loan for a car that you use to commute to work. Failure to continue these payments will further damage your ability to repair your creditworthiness.

** Read out 8 Tips to Repairing Your Credit blog post for in-depth information on this topic **


One building block to rebuilding your score is employment. Stable employment is necessary to fix your credit in earnest. Before you apply for any kind of loan, you need to start generating consistent income. If you were employed when you filed for Chapter 7, then you’re already in a great place to repair your credit. Where possible, some experts recommend avoiding changing employers while rebuilding your credit. Multiple job changes can reflect poorly on your ability to repay. However, that warning should mostly apply to those leaving for similarly-paying jobs. For those taking a better job, an increase in salary or pay rate will likely counteract any negative impact from the change of employers. You should check with your attorney if you are unsure whether to take a new job.

Securing your first credit line

Though difficult, rebuilding your score means getting a new line of credit as quickly as possible following discharge. This can seem like a “Catch-22”--you need creditworthiness to build creditworthiness. As such, your first post-bankruptcy credit line will typically carry a high-interest rate or will come from a “secured” line. Secured lines work by requiring you to lay down a deposit equivalent to the credit line. For example, you’ll provide a deposit of $500, in exchange for a card chargeable up to $500. This might seem like the proverbial money-from-one-pocket-to-the-other, but the key to this other “pocket” of income is that the secured money spent counts towards your score.

Other options available to rebuild credit include:

  • Retail store cards
  • ”Credit builder” loans
  • Asking a friend or relative to cosign
  • Becoming an “authorized user” on an existing card

Whenever you have someone cosign for a card or loan, remember to choose someone whom you can trust and who has, themselves, maintained good creditworthiness. Likewise becoming an “authorized user” should only be an option for accounts owned by someone you have direct access to and whom you feel you can trust. A breakdown in their creditworthiness is breakdown in yours.

Whatever option you find, it’s important to check that the company reports to the three bureaus that track scoring--Equifax, Experian, and TransUnion.

Keys to Managing Your Credit After a Bankrtupcy

Most Long Island residents who are under financial duress look for relief. Some need a fresh start and some need a financial plan to prioritize debt, but most importantly, people need help. One such way to get assistance is by the protection of the bankruptcy laws. For an individual, there are two chapter filings that can provide relief, and they are Chapter 7 and Chapter 13.

To provide a sense of comfort, the term bankruptcy does not necessarily mean that you lose everything. This is a common fear, however, there are certain exemptions that are in place that allows you to protect your property. These exemptions allow certain items to be protected against being sold in the repayment to creditors. These exclusions vary from state to state and is totally dependent upon where you reside. Regardless of the state that you live in, an attorney is necessary who will work on your behalf. The Law Offices if Adam C. Gomerman are licensed in the State of New York and are happy to speak with any Long Island resident regarding bankruptcy and the oftentimes confusing questions surrounding asset protection and bankruptcy exemptions. 
Millions of Americans, and thousands of Long Island residents, are drowning in a sea of debt. This debt has many different causes. Some people are faced with underwater mortgages for houses they never should have bought. Other people are forced to pay massive medical bills or run up tens of thousands of dollars on credit cards. These people are often overwhelmed by the process of asking for help or applying for discharge. This feeling can be mitigated somewhat by the emergency discharge process. Emergency bankruptcy is by no means a solution to a person's financial problems. Instead, it is a tool that a person can use to stem the damage from their obligations and eventually get back on track. If you are looking for emergency bankruptcy filing in New York or on Long Island, contact The Law Offices of Adam C. Gomerman today to speak with an experienced Long Island bankruptcy attorney.

Why would one need an emergency bankruptcy filing?

The process of gaining official debt liquidation or repayment is a time-consuming one. It can involve signing and processing a number of forms and aggregating a considerable amount of financial data. This process can be stressful for a person who has nothing else to do. But people who are going through discharge are incredibly stressed and face pressure from a number of different areas. They are often being harassed by creditors and bill collectors. The tactics of many bill collectors are ruthless and unscrupulous. Some collectors knock on a person's door and directly demand the money that is owed. They can call at many hours of the day and constantly send pieces of mail threatening wage garnishment. In many instances, bill collectors will try illegal tactics such as impersonating law enforcement. They count on people facing overwhelming bills to be too overwhelmed to fight back and file charges. In many instances, that assumption is correct. Some parts of the bill collection system are irreversible. Many banks will have a foreclosure sale for people who are far enough behind on their debts. These sales are final and cannot be undone. Therefore, people sometimes need an emergency option to stop the foreclosure system at any time. Emergency creditor relief filing is useful for these situations. A person can go through an immediate filing and secure an immediate halt on a foreclosure procedure. They can then work their way through the procedure and secure protections for their property. Preparing a filing is much easier when a person is able to do so in the comfort of their own homes.

Types of bankruptcy Long Island, New York

Along with filing for official protection from their creditors, individuals looking for an emergency filing on Long Island or New York need to determine what kind they are filing for. Chapter 13 is a common form that involves a person setting up a sanctioned debt repayment plan out of their regular income. This type of bankruptcy is for people who have a considerable income and still work a job. It can be less debilitating to a person's overall credit score and credit history than a Chapter 7 discharge. In Chapter 7 in NY, a person secures discharge of their debt except for special cases such as student loan debt. Chapter 7 discharge takes away many types of property from a person and sells that property in order to help discharge debt. Creditors, like credit card companies and hospitals holding medical bills, line up and are paid according to the importance of their bills as determined by a court. Some creditors will receive nothing in a process that reflects the risk they took on when they made a loan or extended a line of credit. People who go through Chapter 7 often are unable to borrow money for seven years. They have to start over financially from scratch but are able to do so without fear of foreclosure or constant calls from bill collectors.

Steps to filing for bankruptcy on long island

There are multiple steps to filing for bankruptcy on Long Island. The first step to an immediate bankruptcy filing is filling out a skeleton form. This form has a number of sections that must all be filled out quickly. There is a general information petition where an individual lists their identifying information, the basics of their situation, and what chapter they would like to file under. A person fills out this form along with a list of creditors and their addresses. This list is essential to informing these persons that they need to stop all collections procedures while a person is filing for official protection from their creditors. Then, a person needs to address the credit counseling requirement. They must show that they have attended credit counseling and that it has been unsuccessful in allowing them to meet their credit obligations. Finally, there is the filing of a form of dismissal along with the skeleton form. The form of dismissal provides for a legal justification to dismiss a case if the full amount of paperwork is not turned in within 14 days. All of these forms are filed together along with a fee. If a person cannot pay the fee or wants a payment plan, they can file a form requesting a waiver. All of these forms are quickly reviewed and put into action. Once the Long Island court accepts the emergency filing with the blessing of a lawyer review, they can immediately send out notices to creditors stopping all actions. The creditors then have 14 days to wait until it becomes clear what a person is going to do. If the person does not file their paperwork, they can go back to wage garnishment or foreclosure in order to retrieve their bills. But if they succeed in filing the paperwork, they are once again halted and have to go through the discharge process.

What to do next?

Any individual who is considering an immediate bankruptcy filing in Long Island needs to first consult an attorney and a financial adviser. The financial adviser and attorney will help an individual gauge their financial situation and determine if discharge is right for them. Many people feel overwhelmed by their bills and simply want out as quickly as possible. Professionals will help a person determine if they need to go this drastic step and what they need to do. Most courts in NY require that a person also go through credit counseling before filing for bankruptcy. The person should follow the suggestions of credit counseling as they attempt to work their way out of their debt problems. If a person has to file for emergency bankruptcy, they should first start by quickly filling out the required forms with the help of an attorney. Then, they should focus on filling out other required forms associated with creditor protection with the help of a lawyer. These forms include itemized lists of different pieces of property and means test forms as well as lists of expenses and income. Such forms help a court better ascertain a person's financial situation and the best way for creditors to receive as much as they reasonably can. A person needs to put all of their time and effort into filling out these forms on time. Missing a filing deadline can be debilitating in many ways. It can lead to a person being poorly treated in any future discharge filings as well.


An emergency bankruptcy filing should be viewed as a final step in the debt repayment process. People should do everything they can in order to avoid this drastic step. It may not be particularly helpful in the bankruptcy process after the emergency declaration has been granted. Enlisting the help of a lawyer may also cost money that a person does not think they have. But the process may be worthwhile if it means the difference between keeping or losing one's house.

To speak with a qualified, experienced bankruptcy attorney on Long Island today, contact our offices immediately to schedule your consultation.
Owning a company can be stressful, especially if your personal finances are in jeopardy. Bankruptcy seems to be the logical way out for financial woes, but you must wonder how this will affect your establishment. The structure of the company will dictate if any of the company assets can be used to pay back your creditors.

You have a few options when it comes to bankruptcy, but it's best to speak with an attorney to properly advise you on the best route. As an individual, you can file either a Chapter 7 or Chapter 13.
If you don't have the right amount of health insurance coverage, a serious health complication or injury that results in a trip to the hospital can cause you to be provided with costly health care bills that you have no way of paying. In many cases, these bills are unable to be repaid in a timely manner, which can cause the affected individual to file for Chapter 7 in an attempt have their debts discharged. If you're thinking about filing for bankruptcy because of the medical debts that you owe, it's important that you speak with a reputable attorney who can help guide you through this extensive process.

What Chapter 7 Bankruptcy Entails

Chapter 7 bankruptcy is available to certain individuals who are no longer able to make their loan payments and pay off their credit cards. When a person files for this form of bankruptcy, some of these debts will be erased and discharged. In order to repay what you owe, most of your possessions will be sold, which includes any cars that you own and even your home. You might want to consider the Chapter 13 option if you want to be able to hold on to some of your more important possessions.

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