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Bankruptcy is a legal process that enables a debtor (someone who owes money) to legally receive forgiveness of some or all debts. Congress passed the Bankruptcy Code in 1978, and, since then, law been amended several times. Most recently with the Bankruptcy Abuse Prevention & Consumer Protection Act (or BAPCPA for short), effective October 17, 2005..

You can therefore think of bankruptcy as a federally guaranteed right to obtain a fresh start. Bankruptcy can free you from a crushing burden of debts that you can’t reasonably pay.

Bankruptcy Law is a complex and intricate field of legal practice. Michael A. Fakhoury, Esq. served as Law Clerk in the Southern District of New York Bankruptcy Court (Poughkeepsie) and has been representing clients in Bankruptcy Law since 1999. Jonathan Garcia, Esq. is an associates with Michael A. Fakhoury, Esq., P.C., who will also assist you with your Bankruptcy Law questions. Sharon Landi is a legal assistant who will also walk you through with the required documents and information you need to commence a petition in Bankruptcy.

Personal Bankruptcy

A Chapter 7 Bankruptcy filing may provide you with the opportunity to legally relieve yourself from unsecured debts (such as credit card debts, medical debts, personal loans or certain bank loans). In most cases, you can keep your home, car, and other personal belongings. During your free phone and office initial consultation, we will further consult you about your specific situation. If you are being harassed by creditors, the filing of a Chapter 7 or Chapter 13 Petition in Bankruptcy (Automatic Stay provisions) will, in almost all cases, immediately STOP your creditors from calling you, harassing you, suing you, garnishing your wages, freezing your bank account or even communicating with you. Once you retain Michael A. Fakhoury, P.C., you can refer any creditor to us and we will notify your creditors that you have retained our firm to represent you.

A Chapter 7 Bankruptcy discharge can eliminate any balance due after a vehicle financing company has repossessed your car or home and auctioned it. In other words, if you file Bankruptcy, you generally have a choice to either keep your house or auto (with the mortgage or auto loan) or surrender your house or auto (and not be liable for the possible deficiency that may occur when the creditor sells your property). A Bankruptcy Petition will also stop wage garnishments, bank account freezes, and, in most cases, stop a home foreclosure. As always, a consultation will be offered free of charge so that you may have the information you need to help you in your specific situation. Contact us now. We offer a Free Consultation

Chapter 13

In a Chapter 13 Bankruptcy, which is generally the type of petition filed if your house is in foreclosure, the law allows you an interest-free debt repayment plan that will consolidate your debts over a three or five-year period of time. Your creditors will not be allowed to continue to bill you or sue you or attempt to collect their debt with you during the Chapter 13 Plan period, if your Chapter 13 Plan is confirmed. At the end of successful Chapter 13 Plan period, the remaining (unpaid) unsecured debts will be discharged (forgiven). In other words, in many cases, some or most of your unsecured creditors will be legally forgiven after your plan is completed, depending on the amount of equity in your home. As always, you should only rely on your Attorney's advice after a consultation.

In many cases, clients decide to file a Chapter 13 Bankruptcy to stop a foreclosure proceeding. A Chapter 13 Petition and Plan can then afford them an opportunity to pay back their mortgage arrears (back payments) over the life of the plan (from three to five years). In other words, the Chapter 13 Petition will stop a foreclosure any time prior to the foreclosure sale of your home and forces the mortgage company to accept your regular mortgage payment and a monthly portion of your mortgage arrears until all of the arrears are paid throughout the life of the Chapter 13 Plan. Again, a free initial office consultation will more fully explain the Bankruptcy Process as it relates to your specif situation.

Michael A. Fakhoury will consult you regarding your legal rights. As always, you can only rely on your Attorney's advice after a consultation and after you submit the required information and documentation.