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6 years 4 weeks ago

Trust fund taxes and sales taxes are not dischargeable in bankruptcy. However, federal and state income taxes that meet the following criteria are: 1. The tax year in question is more than 3 years prior to the filing the bankruptcy, 2. the tax has been assessed more than 240 days prior to the bankruptcy, 3. the tax return for the year in question was filed at least more than two years prior the bankruptcy and 4. the tax return is non-fraudulent and there is no showing of willful evasion of payment of a the tax. Discharging taxes in bankruptcy is technical and complex and James H. Shenwick has an LLM in Taxation from New York University Law School and he has discharged many taxes for clients in personal bankruptcy filings. The starting point to determine if taxes are dischargeable in personal bankruptcy is the review of a clients tax transcript which is obtained from the IRS.


6 years 4 weeks ago

A person who owes money is know as a debtor. A creditor seeking to collect money under New York law generally has 3 remedies. The first is garnishing 10% of a debtor's paycheck, the second is liening and levying on the debtor's bank account, checking account or brokerage account and the third is docketing a judgment against real estate to prevent the debtor from selling or refinancing the real estate. A personal bankruptcy filing will stop all lawsuits and prevent garnishment, liens and levies and the docketing of judgments against real estate pursuant to section 362 of the bankruptcy code.


6 years 4 weeks ago

The meeting of creditors or 341 meeting, is schedule approximately 30 days after a debtor files for bankruptcy. At that meeting the debtor must bring their social security card and a photo id which shows a New York address.


6 years 4 weeks ago

Chapter 7 bankruptcy is known as "liquidation and fresh start". The chapter 7 bankruptcy is required to sell non-exempt assets in a chapter 7 bankruptcy and distribute those monies to creditors. Non-exempt assets could be a house, coop or condominium with more than $150,000 of equity for single debtor, a car with more than $4,000 of equity or a business that a debtor wants to keep. Accordingly if a debtor has a non-exempt asset which they want to keep after a bankruptcy filing they would need to file chapter 13 bankruptcy not chapter 7.


6 years 4 weeks ago

In a chapter 13 bankruptcy, besides meeting with a client, attending the 341 meeting (that is the meeting with the bankruptcy trustee) there are 2 additional steps. The attorney for the Debtor must prepare and file with the Bankruptcy Court a chapter 13 plan and attend the hearing on plan confirmation. In a chapter 7 bankruptcy a plan is not drafted and filed with the Court and there is no hearing on plan confirmation so the legal fees for chapter 7 bankruptcy are less than for a chapter 13 bankruptcy.


6 years 4 weeks ago

There are 3 costs or expenses in filing chapter 13 bankruptcy. The first cost is the filing fee which is presently  $281. The second cost is for credit counseling and debtor education is $40 at www.DebtorWise.org. The third cost is legal fees which cost approximately $5,000 in New York City. After the initial consultation Shenwick & Associates provides the client with a written estimate of these costs.


6 years 4 weeks ago

In New York City there are 3 costs or expenses in filing chapter 7 bankruptcy: 1. The first cost is the filing fee which is presently $306. 2. The second cost is for credit counseling and debtor education which costs $40 at DebtorWise.org and 3. The third cost are the legal fees. For a simple bankruptcy the legal fees are $2,000 to $2,500 and for a more complex personal bankruptcy the legal fees are $4,000 to $5,000. After the initial consultation, Shenwick & Associates provides all clients with a written quote for the cost of legal fees.


6 years 4 weeks ago

We received a tremendous response to our Cooler e-mail "Covet Thy Neighbor's Apartment," which discussed the attempts of Chapter 7 Bankruptcy Trustees to assume and assign rent-stabilized and rent-controlled leases for the benefit of creditors.

We believe that the following factors are important in determining whether a Chapter 7 Bankruptcy Trustee will attempt to assume and assign the lease to a rent-stabilized or rent-controlled apartment:

1. How many years has the Debtor lived in the apartment?

2. How much rent is the Debtor paying under the rent-stabilized or rent-controlled lease, and what would be the market value rent if the apartment was vacant and not rent-stabilized or controlled?

3. Is the apartment in a gentrifying area or an upscale neighborhood?

4. Has the apartment building recently undergone a condo or co-op conversion?

5. If yes, did the Debtor decline to buy the unit, and therefore become a non-purchasing tenant?; and

6. If the Debtor is married, did the Debtor's spouse also file for Chapter 7 bankruptcy protection?

If you're considering bankruptcy and have a rent-stabilized or rent-controlled apartment, you should contact Jim Shenwick.


6 years 4 weeks ago

iStock_000003523715XSmallOne of the most common myths about bankruptcy is that all of your debts will be forgiven. First, it depends what type of bankruptcy you file for. Chapter 13 bankruptcy creates a payment plan that allows people who file to pay off most of their debts. It is appropriate for people who fail the means test—meaning that the court determines that the have enough assets and income to be able to pay their debts. In Chapter 7 bankruptcy, the type appropriate for people with few assets, lower income, and greater hardships that make it impossible for them to pay off their debts, most debts will be discharged.
Still, there are some types of debt that will not be forgiven, even if you file Chapter 7 bankruptcy. If these types of debt are your primary problem, bankruptcy will not be the best solution for you. This is one of the many reasons why it is important to discuss your unique financial situation with a knowledgable bankruptcy attorney before you decide whether to file for bankruptcy. These types of debt cannot be discharged, even in Chapter 7 bankruptcy:

  • Fraud. If you run up your credit cards or incur other debt when you know you will be filing for bankruptcy, you will be charged with fraud, and required to pay back what you owe. Other forms of fraud will also not be forgiven in bankruptcy.
  • Dischargeable debt incurred to pay off non-dischargeable debt. For example, if you know you’ll be filing bankruptcy soon, so you use your credit card to pay off your student loan or your tax debt, that credit card debt will not be forgiven.
  • Criminal fines, fees, restitution, and other criminal debts. This includes court fees, court-ordered judgments, victim’s compensation, personal injury and wrongful death claims, and other debts due to criminal negligence.
  • Some tax payments. Some tax debts can be discharged in bankruptcy, but many cannot. This post from Nolo.com can help you understand the basics of bankruptcy law and taxes. Talk with your lawyer to find out if your specific tax debts can be discharged.
  • Most student loans. Unless you can prove that your situation involves unusual hardship, your student loans will most likely not be discharged.

Before filing for bankruptcy, be sure to talk to us first. We can give you experienced bankruptcy advice and provide you with the best options for moving forward. Each case is unique, and we are dedicated to helping those in debt resolve their financial headaches so they can live productive lives.
The original post is titled Considering Personal Bankruptcy? Not all Debts are Forgiven , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .


6 years 4 weeks ago

Ace Frehley Facing Foreclosure | Music News | Rolling Stone.
Former Kiss guitarist reportedly owes over $700,000 on New York home

Read more: http://www.rollingstone.com/music/news/ace-frehley-facing-foreclosure-20130226#ixzz2M98KZo1b 
Follow us: @rollingstone on Twitter | RollingStone on Facebook

 
Ok, I have to admit, I’m a big Kiss fan.  I grew up with their records and up until the time they replaced their iconic guitar player, Ace Frehley, I still counted them as one of my favorite bands. So, the news today that Ace was facing foreclosure saddened me.  ”Space Ace”, as he is known, has faced drug addiction, serious car accidents and contract battles with his former bandmates who replaced him with a stand-in guitarist who continues to wear his original Kiss makeup and costumes that Ace he made famous.
His situation is not unique.  Families all over the Montgomery area are struggling to hold on to their homes.  In my bankruptcy practice, most of my clients are forced to file a Chapter 13 when the mortgage companies either won’t work with them or the modification process is so slow and complicated that the house goes into foreclosure before the homeowners can even find out if they are approved.  Chapter 13 is a way to catch up the home mortgage payments by paying it back over a period of 3 to 5 years.  In addition,  filing a Chapter 13 will stop pending foreclosures and still allow you to stay in your home.
Assuming Ace qualifies for a Chapter 13, it could be the best way to save his home. Good luck Ace!


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