Bankruptcy & Debt Settlement

If your debts are piling up and you are worried you cannot catch up, you have come to the right place - We help people settle debt problems every day. Not only can we share all the options available to you, we can detail the pros and cons of each option and give you recommendations based on our years of experience in helping people facing similar financial issues. 

Filing bankruptcy on your behalf is not our first solution to financial challenges. However, sometimes this is the best solution for getting a fresh start. If it is the right decision for you, our attorneys can provide you with the guidance to move forward. 

We are conveniently located across the Tri-State area and welcome you to book your free consultation in any one of our nine office locations. Review the information we've shared below and let us help you get back on your feet.

Common Debt Problems

If you find yourself with any of the financial issues listed below, you can benefit from speaking to one of our experienced attorneys.

Collection Lawsuit. The more income and assets you have, the more likely a creditor is to pursue you in court. We can closely examine your case for possible defenses, such as improper service, identity theft, statute of limitations, disputed sum, unlicensed collector, lack of standing, and others. In many cases, the debt collector has made a mistake, and we can apply pressure to reach a favorable compromise.

Garnished Wages. If you find yourself in this position, you were likely sued and suffered a default judgment. Still, you have options. We can help you file paperwork that can make part of your income exempt, the underlying debt can be brought into question, and garnished wages can even be returned to you. There are a number of ways to do this, and our attorneys handle these cases on a regular basis.

Frozen bank account. If your bank account has been restrained due to an adverse judgment, it's possible that some or all of the funds are exempt from seizure. The following monies are exempt:

  • 90% of wages or salary earned in the last 60 days

  • Public or private pension payments

  • Social Security and Veteran’s benefits

  • Disability benefits

  • Child and spousal support

  • Worker’s compensation

  • Public assistance and unemployment benefits

Steps You Can Take Now

Call Your Creditors. If you have only recently fallen behind on debt payments, call your creditors. Tell them the source of the problem (job loss, divorce, medical bills, etc.) and ask for forbearance. Suggest possible courses of action like:

  • Temporarily reducing the size of each payment

  • Skipping several payments and adding them to the end of the payment schedule

  • Dropping late fees if you remain timely in the future

  • Permanently adjusting the payment schedule to make it more affordable

Prioritize Your Debts. Some of your debts are likely secured by assets – a car is the collateral for your auto loan and a home secures your mortgage. If you want to keep those assets, you need to make those payments timely. 

You should treat government debt like secured loans. If you don’t pay your taxes, domestic child support, or student loans, the government can take your tax refunds or garnish your wages with very little notice to you.

Talk to a Professional. Our experienced attorneys can make sure you're aware of all the options, as well as explaining the pros and cons of each option. We can also give you recommendations based upon years of practical experience helping people facing the same financial issues. The earlier you learn what steps to take, the more options you will have. Call us now.

Is Bankruptcy the Right Choice for Me? 

Bankruptcy might be the right choice for you if:

  • A secured lender is about to take action. Filing for bankruptcy can halt or delay a repossession or foreclosure. A Chapter 13 filing may permit you to reduce the balance of your loan, eliminate unsecured junior liens, and may remove your second or third mortgages.

  • You do not own much property. In a Chapter 7 bankruptcy filing, you may be able to eliminate your debt provided you pass the Chapter 7 test. A Chapter 13 filing lets you keep your property, but you will be required to pay your unsecured creditors an amount equal to the value of your non-exempt property.

  • You face an adverse judgment. A creditor who obtains a judgment against you can garnish your wages, place a lien on your assets that must be satisfied before they are sold, and have money removed from your bank account.

  • Have unsustainably-high credit card balances. Unless you spent extravagantly or lied on your credit application, most credit card debt and other unsecured loans are erased with a Chapter 7 filing.


What Else Should I Know About Bankruptcy?

If you are a good candidate for bankruptcy and are considering filing, you should know the accompanying negatives:

  • Bankruptcy is intrusive. Filing bankruptcy requires you to disclose the details of your finances, and other people might learn those details. Property can be taken away from you in a Chapter 7 filing. A Chapter 13 bankruptcy can mean having to ask permission for three to five years on how to spend your money.

  • Bankruptcy affects co-signers. If someone near and dear helped you out by co-signing your loan documents, that friend or relative will be stuck with your unpaid debt in a Chapter 7 filing (but not with a Chapter 13 bankruptcy).

  • Bankruptcy may not ease some debts. Your mortgage obligations will not be reduced or erased by bankruptcy. 


Should I Seek Legal Advice When I File for Bankruptcy?

Many situations exist where the assistance of an experienced bankruptcy attorneys can be extremely helpful. For example, if you:

  • Have fallen behind on mortgage payments

  • Owe back child support

  • Own a business you want to keep operating

  • Have overdue car payments

  • Have judgments against you

  • Face financial obligations from a divorce

  • Have overdue student loan payments

  • Used a credit card to pay taxes

  • Face a wage garnishment

Whether your financial situation is relatively simple or more complex, our bankruptcy lawyers can provide you with personal answers and guidance. For a free initial assessment with a member of our team, we encourage you to contact us.

Call 1-800-LA-FIRMA (1-800-523-4762) or book your FREE consultation now.


Cabanillas & Associates has been designated as a Federal Debt Relief Agency by an Act of Congress and the President. We represent bankruptcy, foreclosure defense, loan modification, and short sale clients in New York, New Jersey and Connecticut.

Bankruptcy Disclaimer: The law firm of Cabanillas & Associates, P.C. is a debt relief agency. We assist individuals file for bankruptcy relief under the United States Bankruptcy Code. The services or benefits that we offer our clients with respect to bankruptcy relief under Title 11 of the United States Code and the assistance that we provide may involve bankruptcy relief under Title 11.