Comparing the period September 1, 2009 to October 30, 2009 and October 1, 2010 to September 30, 2011, bankruptcy filings across the United States have fallen 8%. Here in the Eastern District of New York, which covers Staten Island, Brooklyn, Queens, Nassau and Suffolk Counties, comparing the periods of September 1, 2009 to August 31, 2010 with September 1, 2010 to August 31, 2011 Chapter 7 Bankruptcies have fallen by 4% and Chapter 13 have fallen by 36 %.
In Atty Peltz's words, people's credit cards have something to do with this, “when the markets crashed in 2008 and 2009, banks issuing credit cards cut credit lines and closed many accounts. Since that time they haven't extended substantial amounts of credit. You see, a lot of people that had credit card debt have already filed for bankruptcy. With credit now scarce fewer people are needing to file bankruptcy due to credit cards.”
"The Modification Process is another reason why there are fewer bankruptcies being filed. Many New Yorkers are 'under water' and behind on their loans. When these people attempt the modification process it will often take many months and often isn't successful. But they will hold off on a bankruptcy filing in order to see if they can first execute a successful modification”
Quite a few homeowners are late in their house payments and have also begun the foreclosure process. And with a large number of loans in foreclosure, the banks and courts can't keep up and are way behind. This has resulted in homeowners staying in their homes, while not paying their mortgage, for sometimes years. These people put off filing Chapter 7 Bankruptcy because they are not yet ready to walk away from their home.
Attorney Peltz continues, “ In better times people who fall behind in mortgage payments would start to consider Chapter 13 for relief. However with the poor economy many of these people can't manage a Chapter 13 repayment plan in order to catch up on their payments. This has resulted in an amazing drop of 36% in the Eastern District of New York.”.
“When bankruptcy numbers start to rise that will probably reflect an improving economy. Eventually people will have the money to file bankruptcy so that they can get their finances in order and start the process to rebuild their credit. I know this sounds very strange but I believe it's true, when the economy improves you will see an increase in bankruptcies because more people can afford them.I suggest you and your attorney do your own calculations and decide if now or later is the best time to file your bankruptcy”, stated NY bankruptcy attorney Jeff Peltz, and remember, always get a second opinion”.
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About the Law Office of Jeffrey B. Peltz
Jeffrey Peltz is a New York bankruptcy lawyer and a member of the Brooklyn Bar Association, New York State Bar Association and American Bar Association. In addition to being admitted to practice law in New York and New Jersey, Mr. Peltz is admitted to practice law in the Federal Court of New Jersey, as well the Eastern , Southern and Northern District Courts of New York.
Since the establishment of the law firm of Jeffrey B. Peltz, P.C. has helped more than 20,000 clients in the areas of Bankruptcy, Divorce, Family Law, Immigration and Real Estate. Located at 26 Court Street, #2707, Brooklyn, NY 11242. (718) 625-080. Hours 9:00 am – 5:00 pm
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