Blogs
SMALL BUSINESS ADMINISTRATION IMPLEMENTS 60-DAY GOODWILL EXCEPTION FOR PPP, EIDL LOANSBlackenterprise.com has a very informative article on a 60 Day Goodwill Exception for PPL & EIDL loans and how that program operates. The article can be found at https://www.blackenterprise.com/sba-implements-60-day-goodwill-exception-for-ppp-eidl-loans/
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Using Bankruptcy as Financial Relief for Student Loans
Student loans often stand as a significant burden for many individuals. The prospect of addressing these loans through bankruptcy can be daunting. Yet that is a topic that warrants understanding.
Student loan bankruptcy may seem like a financial lifeline. But it comes with its complexities. Bankruptcy can offer relief for various types of debts. But student loans are often the exception. There are circumstances, especially showing “undue hardship”. Individuals might seek relief through bankruptcy.
Quick Summary:
- Filing student loans under bankruptcy is possible. Achieving discharge is generally difficult because student loans are “non-dischargeable” debts. Discharge may be possible by proving “undue hardship.”
- Student loan bankruptcy involves two primary chapters. In Chapter 7, proving “undue hardship” is challenging. Chapter 13 offers a structured repayment plan.
- Discharging student loans through bankruptcy is complex and generally challenging. It requires assessing your financial situation, filing for bankruptcy, and proving “undue hardship”.
- A student loan discharge case needs proof, particularly based on undue hardship. It demands presenting compelling evidence through detailed financial documentation and a strategic approach.
Is It Possible to Include Student Loans in a Bankruptcy Filing?
Including student loans in a bankruptcy filing is an option. But it’s important to understand that discharging student loans is challenging. Student loans fall under “non-dischargeable” debts. That poses challenges for elimination compared to other debt types in bankruptcy.
Nonetheless, individuals may explore relief avenues for their student loans in specific situations. They could do so by demonstrating “undue hardship.”
Can Bankruptcy Clear My Student Loans?
Two primary bankruptcy chapters can help with student loan bankruptcy. Those are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Under Chapter 7, most unsecured debts can find resolution. But student loans are “non-dischargeable.” The debtor must prove “undue hardship” to discharge them. This stipulation presents a formidable challenge.
It demands evidence that maintaining a minimal standard of living would be impossible. This is while repaying the loans.
Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, you create a structured repayment plan for three to five years. Student loans remain non-dischargeable. But the repayment plan allows for more manageable payments. An individual’s income and expenses are the basis for the payments.
This structured approach provides individuals with a workable path to address their financial situation.
How Can I Discharge My Student Loans?
Below is a general guide on how you might pursue the discharge of your student loans:
- Check your financial circumstances. Consider your income, expenses, assets, liabilities, and other challenges.
- File for bankruptcy under the relevant chapter (Chapter 7 or Chapter 13).
- You must prove “undue hardship” if filing for Chapter 7. That involves presenting proof that extends beyond financial difficulties. Show that repaying student loans makes it impossible to afford a basic standard of living.
- You may need to start an adversary proceeding for Chapter 7 cases. This is for seeking student loan discharge. That is a separate lawsuit focused on the dischargeability of student loans.
- The court will decide whether to discharge your student loans or not. Evidence presented during the adversary proceeding will be the deciding factor.
- Stay informed about any legislative changes or court precedents. Those might influence the standards for student loan discharge over time.
How Do I Prove My Case Through Undue Hardship?
Specifics may vary, but we list a general guide on how you can strengthen your case:
- Provide thorough documentation of your financial situation. Your income, expenses, assets, and liabilities will be proof of your current financial standing.
- Show that repaying your student loans would prevent you from maintaining a minimal standard of living. Outline necessary expenses for housing, utilities, food, transportation, and other essential needs.
- Prove that your financial difficulties will likely continue for a significant part of the student loan repayment period. Use realistic projections based on your current circumstances. Consider factors like employment prospects, health, and potential life changes.
- Highlight your genuine and sincere efforts to repay the student loans. The document attempts to negotiate alternative payment plans. It also seeks loan forbearance or participates in income-driven repayment programs.
- Emphasize the impact on your dependents if applicable. Show evidence of their financial dependence on you. Illustrate also how repaying the student loans would affect their well-being.
- Document your medical conditions. Note associated expenses if health issues contribute to your financial challenges. Include medical records, bills, and any information about health issues. These documents add proof to your financial strain.
- Show evidence of active job search efforts if unemployment or underemployment is a factor. That could include records of job applications, interviews, and communications with potential employers.
- Record any attempts to negotiate alternative repayment plans with your student loan lenders. Demonstrating proactive efforts to find solutions strengthens your case.
- Highlight any adverse financial circumstances beyond your control. Examples are sudden changes in employment, a family crisis, or unexpected financial obligations.
- Prove you have complied with the terms of your student loans. Show that you tried your best to meet your repayment obligations before filing for bankruptcy.
What Will Happen if I Ignore My Student Loans?
Ignoring student loan debt isn’t advisable due to its lasting consequences. Unlike other debts, student loans don’t disappear with time. Remember, it can’t be discharged through bankruptcy.
Ignoring them can lead to damaged credit scores, accumulation of interest and fees, legal action (e.g., wage garnishment), and hindered financial goals (e.g.,buying a home). Federal student loan default can also lead to loss of eligibility for future financial aid.
Addressing student debt promptly through repayment plans or seeking forgiveness options is crucial. It can prevent long-term financial repercussions. A financial adviser or bankruptcy attorney can offer great advice in managing the process.
Call Our Bankruptcy Attorneys Today!
To navigate student loan bankruptcy, you must understand the legal landscape. The term “student loan bankruptcy” is not a simple financial phrase. It is a potential path to relief for people overwhelmed with their student loan debt.
Our experienced bankruptcy attorneys at Northwest Debt Relief Law Firm have invaluable skills. Our attorneys can also assess your financial situation and explore options for managing student loan debt. We can guide you through the bankruptcy process and help present your case for discharge.
We ensure that you can navigate this intricate terrain with confidence. Call us today for our free debt solution consultations! We can help with your student loan bankruptcy troubles.
Next Avenue has a helpful article on
How to Get a Handle on Debt in 2024. The article can be found at
https://www.nextavenue.org/how-to-get-a-handle-on-debt-in-2024/
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt!
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The SBA just announced a new relief program for PPP and COVID EIDL Borrowers.Details and information about the new relief program can be found at https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan/manage-your-eidl#:~:text=SBA%20is%20offering%20a%20Hardship,renew%20after%20the%20plan%20concludes.The relief is an extension of the Hardship Accommodation PlanThe new Hardship Accommodation Plan will reduce borrowers monthly payments and help cash flow issues in the short term (6 months or longer) but it will not reduce the sum owed to the SBA or address a failed business that cannot make regular payments to the SBA. Borrowers with defaulted SBA loans should schedule a telephone call with Jim Shenwick, Esq.The SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. Borrowers eligible for this plan may make reduced payments for a six-month period, with the option to renew after the plan concludes. Interest will continue to accrue, which may increase (or create) a balloon payment due at the end of the loan term.TermsBorrowers are required to pay a fixed percentage of their monthly payment amount. Payment reduction will vary based on past enrollment status.The regular monthly payment amount will resume and be required after the six-month Hardship Accommodation period ends. Borrowers may be able to renew the Hardship Accommodation Plan, if necessary. The terms may vary for renewals.
Eligibility & EnrollmentBorrowers are eligible to enroll in the Hardship Accommodation Plan beginning 60 calendar days before their first payment due date. If your loan amount is less than or equal to $200,000: First-time enrollment: To enroll in the Hardship Accommodation plan, create an account or log in to the MySBA Loan Portal. Within the portal, click “Loan Summaries” in the toolbar. On the Loan Summary page, look for “Hardship Accommodation Plan” in the bottom right corner. Click “Learn more and enroll.”Renewals: You may renew the Hardship Accommodation Plan one time through the MySBA Loan Portal. If you need renew more than once, please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line), or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements. If your loan amount exceeds $200,000: First-time enrollment and renewals: Please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line) or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements."
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
The FBI combating COVID related fraud, including PPP & EIDL loans. The article written by an FBI agent can be found at: https://www.fbi.gov/contact-us/field-offices/springfield/news/how-the-fbi-is-combatting-covid-19-related-fraud
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Chapter 11 Bankruptcy Filings Rose 72% in 2023 CFO is reporting that Chapter 11 bankruptcy filings rose 72% in 2023. The story can be found at https://www.cfo.com/news/chapter-11-bankruptcy-reorganization-2023-Epiq-...
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGSMany people are contacting us, asking if wrongfully applying for or misusing SBA EIDL funds constitutes a crime or could subject them to civil or criminal penalties. The answer depends on the "facts and circumstances" of each case. The first fact to consider is whether the action was a mistake (negligent) or willful. Negligent actions are not criminal, but willful actions may be. Second, what is the dollar amount involved? Was it a misapplication of $25,000.00, $50,000.00, or $1,000,000.00? The SBA and Department of Justice are busy organizations that tend to focus on larger dollar amounts when pursuing criminal actions.Third, were the involved parties part of a criminal gang or ring with prior criminal actions or convictions or first offenders.Fourth, reported criminal cases often involve situations where loans were obtained with no legitimate business purpose. Instead, the funds were acquired through false representations to the SBA, with the intent to steal from or defraud the government. Consequently, wrongfully applying for or misusing SBA EIDL loans can lead to civil or criminal penalties.The SBA loan documents signed by all borrowers say that whoever wrongfully misapplies SBA loans shall be civilly liable to the Administrator in an amount equal to one-and-one half times the original principal amount of the loan under 15 U.S.C. 636(b).Second in addition, any false statement or misrepresentation to the SBA may result in criminal, civil or administrative sanctions including, but not limited to: 1) fines, imprisonment or both, under 15 U.S.C. 645, 18 U.S.C. 1001, 18 U.S.C. 1014, 18 U.S.C. 1040, 18 U.S.C. 3571, and any other applicable laws; 2) treble damages and civil penalties under the False Claims Act, 31 U.S.C. 3729; 3) double damages and civil penalties under the Program Fraud Civil Remedies Act, 31 U.S.C. 3802; and 4) suspension and/or debarment from all Federal procurement and non-procurement transactions. Statutory fines may increase if amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.Third,if one intentionally misuse the funds, it could be considered fraud, wire fraud, money laundering, false statements, or theft of government funds. which are criminal offenses. Fraudulent use of SBA loan proceeds may lead to fines, penalties, and potentially imprisonment.Fourth, The dischargeability of SBA EIDL loans in Chapter 7 Bankruptcy is governed by bankruptcy law section 11 U.S.C.A. § 523(a)(2)(B). That section provides for non-dischargeability of debts obtained by false representation or fraud. Clients with questions about defaulted SBA loans and civil or criminal penalties, or discharging those loans in Bankruptcy should contact Jim Shenwick, Esq [email protected] 917 363 3391Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
The Washington Post Business Edition is reporting that in a reversal of policy the U.S. Government will heighten efforts to collect $30 Billion of defaulted SBA EIDL loans by referring those loans to Treasury Direct for collection. This is a reversal of SBA policy where the SBA had stated that they would not seek to collect defaulted SBA loans under $100,000.00Clients with questions about defaulted SBA loans should contact Jim Shenwick, Esq. 917 363 3391 [email protected]Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!------SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute-of.html
SBA EIDL Penalties if an SBA EIDL Loan is Not Repaidhttps://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loan-is.html
Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filingshttps://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html
SBA EIDL HARDSHIP PROGRAMhttps://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html
Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Codehttps://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html
Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html
EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html
EIDL Loan Default Questions & Answers https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISEhttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html
EIDL Defaulted Loanshttps://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html
New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html
EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAMhttps://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html
PPP & EIDL Fraudhttps://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html
Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loanshttps://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html
The Ultimate Guide to Preserving Your Retirement Savings in Oregon Bankruptcy
Bankruptcy can be stressful and overwhelming, especially if you are worried about losing your hard-earned retirement funds. However, there are ways to protect your retirement savings from creditors and keep them intact for your future. In this article, we will discuss the steps and strategies for protecting your retirement funds in bankruptcy in Oregon.
Short Summary:
- In Oregon, retirement funds like PERS, IRA, 401(k), and 403(b) are protected from creditors during bankruptcy, ensuring that individuals can discharge debts while safeguarding their savings.
- Retirement savings act as a vital financial safety net, allowing individuals to maintain independence and decision-making power, especially during challenging financial times like bankruptcy.
- Familiarize yourself with Oregon’s bankruptcy exemptions specific to retirement accounts.
- Prioritize contributions to recognized qualified retirement accounts for enhanced creditor protection.
- Regularly update beneficiary designations to ensure seamless asset transfer.
- Strategically segregate retirement assets from liquid or accessible assets for added protection.
- Stay informed about legislative changes and economic trends to adapt proactively.
Bankruptcy in Portland, Oregon, like in other parts of the United States, is a legal process designed to help individuals or businesses that cannot repay their debts to either reorganize their finances or obtain relief from certain debts. This seemingly complex topic underscores the importance of informed decisions and strategic planning specific to Oregon’s regulations.
Why Are Retirement Funds Important in Bankruptcy?
Necessarily included in protecting your retirement funds in bankruptcy, it is crucial to understand the importance of retirement funds first. In Oregon, creditors in bankruptcy cannot touch your Public Employees’ Retirement System (PERS), individual retirement account (IRA), 401(k), 403(b), and other qualified retirement accounts. This safeguard ensures that, even if you have dischargeable debts, such as $50,000 in credit card balances, your retirement funds, totaling $300,000, remain fully protected during bankruptcy. That allows individuals to discharge eligible debts while preserving the rest of their qualifying retirement savings.
Declaring bankruptcy can be daunting and overwhelming, casting shadows over one’s financial future. Amidst the myriad of concerns and uncertainties, retirement funds often emerge as a primary point of contention and concern for many individuals. But why are retirement funds so crucial in the landscape of bankruptcy? Let’s delve into the significance and implications.
Financial Safety Net for the Future
At its core, retirement savings serve as a financial safety net designed to provide individuals with a source of income during their non-working years. These funds represent years of diligent saving, planning, and sacrifice, ensuring that individuals can maintain a certain standard of living post-retirement. Protecting these savings during bankruptcy ensures that individuals have resources to rely upon when they can no longer generate income from employment.
Social Security and Limited Income
For many retirees or those nearing retirement age, Social Security benefits may constitute a significant portion of their post-retirement income. Individuals might become overly reliant on these limited benefits if retirement funds are depleted or accessed prematurely due to bankruptcy. Ensuring that retirement funds remain intact allows for a more balanced financial portfolio, reducing dependency on government assistance.
Maintaining Financial Independence
Maintaining financial independence, even amidst challenging circumstances like bankruptcy, is paramount. By safeguarding retirement funds, individuals preserve their autonomy and decision-making power regarding their future. Without these savings, individuals might find themselves at the mercy of creditors, unable to make choices aligned with their long-term goals and aspirations.
Psychological and Emotional Well-being
Beyond the tangible financial implications, retirement funds hold significant psychological and emotional value. Knowing that one has a secure nest egg for the future provides peace of mind, alleviating stress and anxiety associated with financial uncertainty. In the context of bankruptcy, preserving retirement savings can bolster mental well-being, enabling individuals to navigate the process with greater resilience and optimism.
Legacy and Generational Planning
For some, retirement funds represent more than just personal savings; they symbolize a legacy to be passed down to future generations. Whether providing for children or grandchildren or supporting charitable causes, these funds allow individuals to leave a lasting impact and fulfill their generational aspirations. Protecting retirement savings during bankruptcy safeguards these legacy intentions, ensuring that individuals’ hard-earned assets serve their intended purpose.
What Steps Should I Take to Ensure My Retirement Funds Are Protected in Bankruptcy?
Navigating the intricate world of financial planning requires foresight, diligence, and a proactive approach, especially when safeguarding crucial assets like retirement funds. In today’s volatile economic landscape, taking strategic steps to protect these savings is critical. In protecting your retirement funds in bankruptcy in Oregon, you have to take note of the following efficient strategies:
Understand Oregon’s Bankruptcy Exemptions
Familiarize yourself with Oregon’s specific bankruptcy exemptions related to retirement funds first. State laws often provide protective measures for certain retirement accounts, ensuring they remain untouched during bankruptcy proceedings. By understanding these regulations, you can leverage them to your advantage and navigate financial challenges confidently.
Opt for Qualified Retirement Accounts
Prioritize contributing to qualified retirement accounts recognized under federal and state laws, such as 401(k)s, IRAs, or pension plans. These designated accounts often benefit from enhanced protection against creditors and bankruptcy proceedings, shielding your savings from potential liquidation or seizure. Regular contributions to qualified accounts demonstrate a commitment to long-term financial security and fortify protective measures.
Regularly Review and Update Beneficiary Designations
Periodically reviewing and updating beneficiary designations for your retirement accounts is essential. Ensuring accurate and up-to-date information guarantees that your assets transfer seamlessly to intended beneficiaries, bypassing potential probate complications or disputes. By maintaining meticulous records and addressing life changes promptly, you can preserve the integrity and intent of your retirement savings.
Separate Retirement Assets from Liquid Assets
Strategically segregating retirement assets from liquid or accessible assets can bolster protection measures. Consider establishing trusts or specialized accounts to insulate retirement funds from potential creditors or legal actions. This strategic separation creates a distinct financial barrier, safeguarding your savings and mitigating risks associated with external liabilities.
Stay Informed and Remain Vigilant
In today’s dynamic financial landscape, staying informed about legislative changes, tax implications, and economic trends is crucial. Regularly monitoring industry updates, consulting legal resources, and participating in financial education seminars empower you to make informed decisions and adapt to evolving circumstances proactively. Knowledge is your most potent weapon in preserving retirement security and navigating potential challenges.
Learn More About Protecting Your Retirement Funds in Bankruptcy!
In protecting your retirement funds in bankruptcy in Oregon, you will inevitably deal with plenty of legal concepts and complicated terminologies. Northwest Debt Relief Law Firm is the one that you can rightfully trust when dealing with complex situations. Our experienced bankruptcy attorneys offer complete court representation and free lifetime support.
Other than liquidation bankruptcy and reorganization bankruptcy, we also offer practical guidance in rebuilding your credit after bankruptcy. Get free debt solution consultations today!
IRS Grants Automatic Relief To Millions In Taxpayer Penalty WaiversThe story can be found at https://www.pelhamplus.com/finance/irs-grants-automatic-relief-to-millions-in-taxpayer-penalty-waivers/
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.