What This Practice Covers
Debt is a heavy burden that many people carry quietly for years. Part of the reason is the stigma attached to bankruptcy: the belief that filing is a personal failure rather than a legal process created by Congress for exactly this situation.
In many cases bankruptcy is a viable option, and it can help someone get back on their feet. What matters is understanding what the process actually involves before deciding — which debts may be affected, which property is protected, what happens to a mortgage or a car loan, and what the filing requires of you.
Michael L. Walker represents clients going through bankruptcy and works to make the process as clear and orderly as possible. Knowing the steps in advance, and knowing the obstacles that can appear, makes the experience less frightening. Getting debt under control also reduces the constant background stress that debt creates.
Not every debt problem is best solved by a bankruptcy filing. Sometimes a negotiated modification, a payment plan or a defense to a collection lawsuit is the better route. Those options are discussed in the same conversation, not after a filing is already underway.
Debt Situations That Bring People to This Office
Most people do not call a bankruptcy attorney the first month a payment is missed. They call after something specific has happened. These are the situations that most often prompt that call.
Consumer debt that stopped being manageable
Credit card balances, medical bills and personal loans often build slowly, then reach a point where the minimum payments alone consume a whole paycheck. The question at that stage is not whether the debt is real but which tools are actually available: negotiation, a payment plan, a defense to a particular claim, or a bankruptcy filing. Which of those fits depends on your income, what you own and who you owe.
A collection lawsuit or a judgment
Being sued by a creditor or a debt buyer is a distinct problem from owing the money. A lawsuit carries a response requirement, and a judgment that follows a default can be enforced in ways an unpaid balance cannot. If you have been served, bring every page you received and the date it arrived — that is the first thing an attorney needs to look at.
Wage garnishment or a frozen bank account
An income execution against wages, or a restraint on a bank account, is usually the point at which a debt problem becomes urgent. There are procedures that address both, and certain funds are protected under New York law. What can be done, and how quickly, depends on the underlying judgment and how the enforcement was carried out.
Mortgage arrears and the family home
Falling behind on a mortgage raises questions that go beyond the debt itself: what happens to the equity, whether arrears can be cured over time, and how a filing interacts with a foreclosure that has already started. Chapter 7 and Chapter 13 treat these questions very differently, which is why the choice of chapter is not a formality.
Car loans and other secured debt
A secured debt is tied to specific property. Whether you keep the vehicle, and on what terms, depends on the loan, the value of the car, whether payments are current and the chapter filed. People are often surprised that the answer is not simply “you lose it” or “you keep it.”
Before you change how you are paying anyone. Payments made to creditors — and especially transfers of money or property to family members — in the period before a bankruptcy filing can matter, and so can the timing of the filing itself. Do not restructure your finances based on general information from a website. Speak with an attorney first.
Debt problems get harder to solve after a judgment
If you have been served with a collection suit, or your wages or accounts have been touched, the timeline is no longer yours to set. A short conversation costs nothing.
Common Matters Handled
These are the kinds of matters the office handles in this area. Whether the firm can accept a specific matter depends on its facts, the jurisdiction involved and the results of a conflict check.
- Chapter 7 consumer bankruptcy filings
- Chapter 13 reorganization and repayment plans
- Discharge of unsecured consumer debts
- Negotiating modifications on loan obligations
- Responding to collection lawsuits and judgments
- Creditor harassment and collection calls
- Exemption planning and protecting property
- Reviewing whether bankruptcy is the right tool at all
How These Matters Usually Proceed
- Understand the debt picture. Bring what you have: statements, collection letters, judgments, pay stubs. A rough picture is enough to start — the office will tell you what else is needed.
- Consider the options. Bankruptcy is one option among several. The consultation covers which chapter may fit, what a filing would and would not resolve, and what the alternatives look like.
- Prepare the filing. Bankruptcy is a document-heavy process. Schedules must be complete and accurate, which is why gathering records early makes the whole matter smoother.
- Through the process. Filing, the required credit counseling and financial management courses, the meeting of creditors and, ultimately, the discharge order.
What to gather before a bankruptcy consultation
- A list of debts and creditors, with recent statements if you have them
- Any collection letters, lawsuits, judgments or court notices, with the dates you received them
- Recent pay statements or other proof of income
- A rough list of what you own, including vehicles and real property
- Your last two years of tax returns, if available
- The questions you most want answered
Bankruptcy Law — Frequently Asked Questions
Will I lose my house or my car if I file?
Not necessarily. New York provides exemptions that protect certain property, and how a mortgage or car loan is treated depends on the chapter filed, the equity involved and whether payments are current. This is one of the first things to discuss with an attorney who has seen your actual numbers.
Which chapter should I file?
That depends on your income, your assets, the kinds of debt you carry and what you are trying to protect. Chapter 7 and Chapter 13 do different things. No website can tell you which one fits — that requires a review of your financial situation.
Does bankruptcy erase every debt?
No. Certain categories of debt are treated differently, and some are generally not discharged. Bring a list of what you owe and to whom, and the office can explain how the different categories are usually handled.
Should I stop paying creditors before I file?
Do not make that decision based on a website. Payments made before a filing can matter, and so can the timing of the filing itself. Speak with an attorney before changing how you are handling your debts.
These answers are general and educational. They are not legal advice, they do not address your particular situation, and reading them does not create an attorney-client relationship. Laws, deadlines and procedures vary by jurisdiction and by the facts of each matter.