About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Archive for July, 2009
Written by Craig D. Robins, Esq.More and more Long Island seniors are eliminating their debts with bankruptcy
Although our tough economic times are hurting people of all ages, I find senior citizens who are living on pensions and Social Security are struggling the most. They are often juggling medical credit card payments, medical debts and other obligations made difficult by Long Island’s high cost of living.
AARP Report Shows Bankruptcy Rates Rising for Seniors
According to a recently-released report by AARP, the rate of personal bankruptcy filings among those ages 65 or older grew by 125 percent, while the bankruptcy rate of seniors ages 75 to 84 jumped a stunning 433.3 percent.
A large number of my clients consist of the elderly, and filing bankruptcy enables them to eliminate their debts and remove a great source of stress in their silver years.
Economist Puts Some Blame on this Country’s Poor Pension Systems
I recently discussed bankruptcy and the economy with Thomas J. Mackell Jr., a former Chairman of the Board of Directors of the Federal Reserve Bank of Richmond and a crusader for pension reform. See Former Federal Reserve Bank Chairman Points Out Disturbing News About Americans and their Pensions.
Mr. Mackell said of senior citizens’ financial problems, “It’s frightening. It’s a horror story in the making. It will not get better. It will continue to get worse.”
He continued, “We are facing a generation of boomers where 55 percent of them are ill-prepared economically to retire.”
More and more Americans are finding that their debt obligations prevent them from retiring. However, it does not make sense for senior citizens to be slaves to their credit card debts when they can be eliminated easily in a Chapter 7 bankruptcy proceeding.
I’ve counseled many Long Island senior citizens and am glad that I have been able to provide many with a means to reduce their stress and a way out of their financial burden.
Long Island Railroad Was In Bankruptcy
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Written by Craig D. Robins, Esq.
Here is a fact that only a few historians probably know: The Long Island Railroad filed for bankruptcy in March, 1949.
In the 1940’s, LIRR costs had greatly increased, but because of government regulation, railroads were not permitted to raise fares. In addition, in the years after World War II, the rise of the automobile and improved air travel caused passenger rail service to decline dramatically. These elements created great financial difficulty.
At the time, the LIRR was owned by the Pennsylvania Rail Road. When the LIRR’s debts got to be too much, the Pennsylvania Rail Road stopped paying them and put the LIRR into bankruptcy. At the time of the bankruptcy, Pennsylvania transferred the LIRR to a subsidiary, the American Contract and Trust Company.
Eventually, Governor Nelson Rockefeller created the MTA which took over the LIRR in 1966.
Notes about the photograph: In the rare time that I take off from my Long Island bankruptcy practice, I like to take fine art photography images. I personally took this photograph at the Montauk Train Station in 2006. It was published by both The New York Times and Newsday, and it is in the permanent collection of the Long Island Museum in Stony Brook, where it won their first annual juried photograph competition in 2007 out of about 400 entrires.
Written by Craig D. Robins, Esq.A “conditional order” can give a Chapter 13 debtor additional time to cure post-petition mortgage payments
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Most consumers file for Chapter 13 bankruptcy relief to stop foreclosure. They use the Chapter 13 plan to pay back the mortgage arrears. If a debtor misses some payments after the bankruptcy is filed, the mortgagee will bring a motion to vacate the stay.
When this happens, negotiating a conditional order with the mortgagee can often provide a reasonable resolution.
Chapter 13 debtors sometimes fall behind with mortgage payments or trustee payments even when they have the best of good faith intentions.
There are many reasons why a debtor can fall behind. Often unanticipated expenses — like a broken hot water boiler or covering the cost of a relative’s funeral — can mean the difference between being able to make mortgage payments or not. A debtor can also fall behind if his or her income is reduced as the result of sickness or loss of overtime.
One way I often try to resolve the problem of post-petition mortgage arrears in my Long Island bankruptcy practice is to work out an arrangement with the attorneys for the mortgagee called a conditional order.
A conditional order is basically an agreement that is “so-ordered” by the court, giving the debtor a certain period of time to do a particular act before the order can become effective.
The conditional order typically provides that the debtor will cure the post-petition mortgage arrears by making extra payments for a period of up to six months. If the debtor fails to do so, the conditional order will provide that the bankruptcy stay will be lifted.
Mortgage companies are not required to enter into conditional orders; however, most will do so.
Conditional orders are only practical if the reason why the debtor has fallen behind is only temporary.
If you are a Chapter 13 debtor who has fallen more than a month behind with your post-petition mortgage payments, you should immediately consult with your bankruptcy attorney to discuss resolving the problem — hopefully with a conditional order.
Written by Craig D. Robins, Esq.There are three bankruptcy judges in the Central Islip Bankruptcy Court and four bankruptcy judges in the Brooklyn Bankruptcy Court. Each of these judges has been appointed for a 14-year term. Here’s how they got there.
Bankruptcy court judges are federal judges. They are considered judicial officers of the U.S. District Court. Congress determines the number of bankruptcy judges in any jurisdiction. I previously wrote that this country’s bankruptcy judges are overwhelmed with cases because Congress has not designated any new bankruptcy judgeships since 1992 — see Are Bankruptcy Judges Overworked? .
When there is a vacancy to an existing bankruptcy judgeship, as there was in the Central Islip Bankruptcy Court two years ago when Judge Cyganowski and Judge Bernstein retired, the Court of Appeals for our jurisdiction, which is the Second Circuit, advertises public notice and solicits applications on a national level. Applicants, who are typically bankruptcy attorneys, can then submit applications to become a bankruptcy judge.
A screening committee which is set up by the Second Circuit Court of Appeals then reviews the applications and makes recommendations based on those individuals best qualified to serve as a bankruptcy judge. This committee consists of a panel of circuit judges and district court judges from our district.
The screening committee will then make its final recommendations to a committee of judges in the Second Circuit Court of Appeals. A majority of judges in the Circuit Court then appoints the new judge.
Several weeks thereafter, the chief circuit court judge will administer an oath to the candidate and swear in the new bankruptcy court judge.
Written by Craig D. Robins, Esq.The publication Consumer Bankruptcy News featured my blog in an article about bankruptcy attorneys who use blogs to provide news, information and commentary to their clients and the public.
Consumer Bankruptcy News is this country’s leading periodical for consumer bankruptcy attorneys. I was quoted several times in the article, which appeared in the July 2, 2009 issue.
The article noted that as more people get their news from the Internet instead of from newspapers, potential clients are more comfortable learning about an attorney’s reputation from the attorney’s website and blog postings.
The article also quoted Brigham Young University political science professor Richard Davis who said, “Blog readers still get most of their news from regular news sources, but they are concerned that they are not getting the whole side of the story there.”
I will certainly endeavor to continue posting as much commentary and “inside information” as possible, in addition to the various other informational postings.
Written by Craig D. Robins, Esq.Even the least-risky mortgages are seeing a drastic increase in delinquencies as consumers are being laid off
According to data just released by the Office of the Comptroller of the Currency, first-time foreclosure filings on prime mortgages more than doubled over the past year. Now 2.9% of all prime mortgages are in default.
Prime mortgages are those that are considered least risky. About two-thirds of all U.S. mortgages are prime mortgages.
It appears that mounting job losses are pushing more and more borrowers towards foreclosure. Even consumers with good credit are finding it difficult to make monthly payments when their income has decreased.
Here on Long Island, consumers who have held the same job for well over a decade are being laid off. Depending on the particular facts, a bankruptcy filing may be the easiest and most efficient way to deal with the situation.
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If a house is upside-down with no equity, now may be the time to walk away, rather than be a hostage to your home. Under the right circumstances, a bankruptcy filing can provide that option.