Blogs

3 weeks 6 days ago

As several readers of our emails and blogs know, Congress has passed a new form of Chapter 11 bankruptcy for small business debtors. Details about this kind of bankruptcy filing can be located at our blog at https://shenwick.blogspot.com/search?q=subchapter+v
When a company files for bankruptcy, frequently they will need debtor in possession financing to remain in business and reorganize. While the Bankruptcy Code provides for a debtor in possession financing, our experience and the experience of many of our clients have been that debtor in possession financing is very difficult for small businesses to obtain after they file for Chapter 11 bankruptcy. This circumstance should be contrasted with large publicly traded companies that file for Chapter 11 bankruptcy, in which a market exists to provide those companies with a debtor in possession financing. After the Paycheck Protection Program (the "PPP") was established in The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, many bankruptcy attorneys, financial advisors and accountants believed that PPP money may be a source of debtor in possession financing for  Chapter 11 debtors and Subchapter V debtors.
The CARES Act extended PPP loans to Subchapter V small business debtors, but unfortunately not to Chapter 11 debtors. The CARES ACT further allows that PPP loans will be offered only if the SBA Administrator in its discretion sends a letter to the Director of the Executive Office for United States Trustee allowing  PPP loans in bankruptcy-unfortunately to date, the SBA has not sent that letter.Due to the SBA administrator not sending that letter, it is unclear as to whether small business subchapter fee debtors will qualify for PPP loans.
Qualification may be based upon whether the Subchapter V Debtor received a 1st PPP loan, whether the loan was repaid or forgiven, or whether the SBA suffered a loss as a result of the 1st PPP loan.Alison Bauer at Foley Hoag LLP wrote a great article on March 10, 2021 on this topic: “PPP Loans and Small Business Debtors in Bankruptcy”, which can be found athttps://www.jdsupra.com/legalnews/ppp-loans-and-small-business-debtors-i...
As a result, Chapter 11 debtors are not eligible for PP pay loans.
Subchapter V debtors may qualify for PPP loans, but they must proceed with caution and they may want to contact their bank or other banks that are processing PPP loans to determine whether they would qualify for a loan if they file for Subchapter V bankruptcy.
Individuals with questions about subchapter V Bankruptcy should contact Jim Shenwick at 212-541-6224 or jshenwick@gmail.com  


3 weeks 6 days ago

Every individual’s financial condition is different from each other. Struggling with debt and financial problems is complicated. Choosing whether to file for bankruptcy and learning how to file is likewise not an easy decision to make. To decide if bankruptcy is the right option for you, you should consult with Washington & Oregon bankruptcy attorneys. 
A bankruptcy filing is a legal proceeding wherein a debtor files a petition for bankruptcy to repay lenders. Filing bankruptcy allows you to have a fresh start with your finances. It is highly recommended to hire a bankruptcy attorney to prevent legal issues during the bankruptcy process. Before filing for bankruptcy, understanding the basics of bankruptcy law is important to have a successful bankruptcy filing.
What are the benefits of filing a bankruptcy petition?
Automatic stay
Pros and Cons in Bankruptcy One of the advantages you get when you file for bankruptcy is the automatic stay. Once the petition in bankruptcy has been approved by the bankruptcy court, an automatic stay will take place. It prohibits any collection activities from creditors and lenders. This will also stop wage garnishment, foreclosure, phone calls, emails, and repossession. If a creditor continues to demand payment from you, your Portland bankruptcy lawyer may file a contempt of court action against these debt collectors. You may ask the bankruptcy court for an extension of the previous automatic stay if you have filed bankruptcy within the last year. However, an automatic stay will not take effect until the court issues an explicit order if you have filed multiple times last year. 
Eliminating dischargeable debts 
Debtors will be entitled to wipe out their obligation to pay off dischargeable debts. These debts are the ones that may be discharged in a bankruptcy proceeding. Unsecured debts such as credit card bills, medical bills, and personal loans are common examples.
Bankruptcy exemptions 
Exemptions from bankruptcy allow debtors to keep their homes after filing for bankruptcy. These exemptions are crucial in both bankruptcy cases under Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy).
Rebuilding your credit score 
While fears of a ruined credit report deter a lot of individuals from filing for bankruptcy (because a filing stays for seven to ten years), a lot of debtors find that after a bankruptcy filing, their credit scores eventually improve. If an individual’s dischargeable debts have been discharged, they can start over and gradually rebuild their credit score.  
Timing is crucial when filing for bankruptcy. 
Filing a bankruptcy petition that is not in your best interest or filing for bankruptcy too soon may result in a loss of assets that you would have been able to secure (or a situation that could otherwise worsen a bad financial circumstance). This can also happen if you filed for bankruptcy under Chapter 7 instead of Chapter 13. This is why consulting credible Portland Oregon bankruptcy attorneys is important. They can help you decide on which among the types of bankruptcy is the best option for you.
Bankruptcy filings may also have potential consequences. Throughout the bankruptcy procedure, an experienced and trusted Portland Oregon bankruptcy lawyer will assist you.

  • When you apply for bankruptcy, several credit card companies immediately terminate any cards you have. Following your bankruptcy filing, you will almost certainly receive several offers to apply for an unsecured credit card. While this could help in rebuilding your credit score, they typically come with a high-interest rate and annual fee.
  • Filing bankruptcy immediately affects your credit report. A bankruptcy Chapter 7 stays in the report for ten years and seven years for a Chapter 13 bankruptcy declaration.
  • Obtaining a mortgage or loan is difficult. For several years, filing for bankruptcy could make it hard to obtain another mortgage or loan.
  • Exemptions do not always apply to both personal assets and real estate. It means that the court may seize and sell some of your assets to pay back your creditors.
  • Tax refunds are denied. A bankruptcy filing will likely result in the denial of state, local, and federal tax refunds.
  • The stigma associated with employment and housing. Any prospective employers and landlords will inquire regarding any previous bankruptcy filing, which could adversely affect your prospects for both. 
  • Not all types of debts can be wiped out. Certain types of debts are non-dischargeable when you file bankruptcy. Secured debt, child support, alimony, student loan debt, criminal fines and restitution, tax debt, and other debts accrued by fraud are all examples of debts that are not dischargeable.

There are variations between the benefits and drawbacks of a bankruptcy filing. Most of it will depend on an individual’s financial condition and there are a lot of factors that may influence these situations. For assistance and basic bankruptcy exemption, contact our Portland Oregon bankruptcy attorneys at Northwest Debt Relief Law Firm for a free consultation.
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The post Understanding the Different Pros and Cons in Bankruptcy Filing appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.


4 weeks 19 hours ago

Protection of Stimulus Payments from a Bankruptcy Trustee
The following is from the NCLC Consumer Law Implications of the American Recovery Plan Act
Public Law No. 116-260, Consolidated Appropriations Act of 2021, div. FF, tit. 10, § 1001(a) adds a new Bankruptcy Code § 541(b)(11) to the list of exclusions from property of the bankruptcy estate. It provides that “recovery rebates made under section 6428 of the Internal Revenue Code of 1986” are not property of the estate. The stimulus payments under the Consolidated Appropriations Act were authorized under new section 6428A of the Internal Revenue Code.
The ARPA stimulus payments are provided using this language: “Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6428A the following new section … In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2021 an amount equal to the 2021 rebate amount determined for such taxable year.” See ARPA § 9601(a). The ARPA stimulus payments are therefore authorized under IRC § 6428B. This means that consumers who receive an ARPA stimulus payment may file bankruptcy without having to use a wildcard or other exemption to protect the funds from possible recovery by the bankruptcy trustee.
It is possible that a court may construe section 6428B as a separate statute and therefore not a recovery rebate “under section 6428.” However, this interpretation would render meaningless the enactment of Code § 541(b)(11) because even the stimulus payments under the December 27, 2020 Consolidated Appropriations Act would not be protected—they were authorized under section 6428A, and the earlier stimulus payments under the CARES Act would have already been spent by debtors at the time Code § 541(b)(11) became effective. Such a reading of the statutory provisions would be contrary to Congress’s intent to protect stimulus payments.
student loan

.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:Normally we expect math and science to have specific answers, but not so much with medicine and law.  The answer may appear clear at one time, but then changes as new facts are known or if those with new view points get involved (like the appellate courts). 
In the practice of law the answer to most questions starts with “it depends”.  After that statement the lawyer goes on to ask for facts that depict that person’s unique situation.  That person answers the questions, many times guessing at what the lawyer meant by certain terms or giving the answer they think the lawyer wants to hear.  The lawyer then answers the question (based on what may be false “facts”), but adds “different courts may have a different answer and we cannot guess what the final answer will be”. 
Moral here – NEVER GUESS AT THE ANSWER FOR ANY QUESTION ASKED BY A DOCTOR OR LAWYER.

Oh good!!  So how are you supposed to make an informed decision?  That is where the Rubik’s cube (pictured here) comes into play.  You solve one side (all the same color), but in solving the other sides the first side is messed up.  After many, many tries it is possible to solve all six sides, but meanwhile your life goes on.  You have made choices based on one interpretation of the law, only to find out that the interpretation was “wrong” according to a higher court and now all your decisions are wrong.  We tolerate (for the most part) this experimentation from our doctors, but assume that lawyers have the ability to predict the future.  They do not. But a good lawyer explains this dilemma, so you understand that there is no guarantee in life (other than death and taxes).  Be careful when trusting any doctor or lawyer who answers a complicated question with a firm, unqualified answer.

@media only screen and (max-width:980px) {.fusion-title.fusion-title-2{margin-top:0px!important;margin-bottom:6px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:10px!important;margin-bottom:10px!important;}}– Diane L. Drain.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 30px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 45px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}.fusion-button.button-1 {border-radius:10px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}Click here for steps to your free bankruptcy consultation
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The post You will not lose your 2021 Stimulus Payments if you File Bankruptcy (Maybe?) appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.


4 weeks 1 day ago

You have a reverse mortgage: Know your rights and responsibilities

Publication from Consumer Financial Protection Bureau “CFPB”.  Reverse mortgages can be a nightmare, leaving your spouse evicted from their home once the signing spouse dies.  This in-depth guide teaches current reverse mortgage borrowers about their rights and responsibilities under a Home Equity Conversion Mortgage loan. Topics include how a borrower can fulfill their loan obligation, what to do if receive a notice of foreclosure, loan payback options, and more.

The guide is designed to assist reverse mortgage borrowers meet their ongoing responsibilities under a Home Equity Conversion Mortgage, the most common type of reverse mortgage loan.
Topics include:

  • The reverse mortgage loan requirements
  • How a borrower may pay-off their reverse mortgage loan
  • What happens after the borrower moves out of the home or dies
  • What default means and how a borrower may find help
  • What heirs may need to know

The guide also includes a glossary of commonly used terms and a list of resources that borrowers can use to find help.
The CFPB’s reverse mortgage resources are free and available to download or order.
For more information on reverse mortgages, visit consumerfinance.gov/reversemortgage.
Although the You have a reverse mortgage: Know your rights and responsibilities guide does not address protections for reverse mortgage borrowers affected directly or indirectly by COVID-19, you can learn more about these protections by visiting the Unified Housing Hub.
Thank you,
Consumer Financial Protection Bureau

Note from Diane: Please don’t jeopardize your future security by assuming you know the law.

.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:Seniors should not be faced with homelessness because their spouse signed a reverse mortgage not understanding the legal consequences.  Don’t misunderstand me, there are good reverse mortgages that help the homeowner to stay in their home for as long as physically and psychologically possible.  Unfortunately, sleazy lenders saw seniors as easy targets for scams. 
Generally seniors trust those who are advertise themselves as “experienced”, whether the plumber, real estate agent, lawyer or doctor.  Trust must be earned, not freely given.  Always investigate any professional who is supposed to help you.  I say this time and again, typically you should be able to trust your gut.  Unfortunately, some con-artists are really good at deceiving others.  Reach out to family and friends for their guidance and common sense thoughts.

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.fusion-body .fusion-builder-column-5{width:75% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 15px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 15px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 5;padding-right : 0px;padding-bottom : 0px;margin-bottom : 20px;padding-left : 0px;}
The post You Have a Reverse Mortgage: Know Your Rights and Responsibilities appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.


1 month 2 days ago


The credit counseling profession has been turned upside down over the past 20 years. When I first started representing clients in bankruptcy cases, we would routinely refer clients to a Consumer Credit Counseling Services of Nebraska if we thought bankruptcy could be avoided.
Unfortunately, CCCSN closed in 2015 and there was no local professional left to send clients to for real credit counseling.
A real credit counselor is a professional who sees beyond the numbers. Behind every financial problem lies a deeper issue: divorce, gambling, drug addiction, mental conditions, business failures and every other disorder you can imagine. To understand a money problem you must first understand the root cause of the problem, and money problems are usually secondary to a larger issue. Real credit counseling professionals have largely disappeared.
What happened? Why did traditional credit counseling die?
Many factors contributed to the death of traditional credit counseling.

  • Fair Share compensation drastically declined. Fair is the percentage of a monthly credit counseling payment creditors allow the agency to retain to fund its operation. That percentage declined from 15% to almost zero in recent years.
  • Debt Settlement firms have taken over the market. Why? Because their payments are so much cheaper. Instead of paying all the debt back settlement companies falsely claim that debtors only need to pay a fraction of what they owe. They lure clients away with slick advertising and lower monthly payments.
  • Technology changes are disrupting every industry these days and only the most tech savvy firms are surviving in any field.
  • Consumers cannot distinguish real credit counseling programs (i.e., those certified by the NFCC) from phony agencies that pretend to be nonprofit counselors.

Traditional credit counselors could not contend with dropping revenue, increased competition, and blinding technology changes while consumers became lost in a sea of confusing alternatives.
The bottom 60% of America is lost, losing ground and is in debt.
At the same time real credit counseling has been disappearing, Americans have been struggling to stay in the middle class.

  • Few workers receive pension plans today. In their place, workers receive 401(k) Plans that are commonly cashed out as they go from one job to the next.
  • Foreign competition and job outsourcing has put a squeeze on wages.
  • Relationships are less stable and an increasing percentage of children are raised by one parent.
  • Jobs change frequently and once a worker reaches 50 they want you gone due to higher insurance costs.
  • Church membership is down and there is a general sense of social dissolution.

The top 40% of America is doing well and they have abundant financial counseling, mostly in how to invest their savings, but the bottom 60%–the people who need financial counseling the most–have nowhere to turn.
It is time to reinvent credit counseling.
The trending term in credit counseling these days is called Financial Coaching.  This goes beyond managing a debt repayment plan. Financial coaching is a process of teaching and assisting a consumer to manage their way out of debt and into savings.
How does Financial Coaching differ from Credit Counseling?

  • Credit Counselors take possession of client funds to manage debt repayment plans. Financial coaches never take possession of client’s funds.
  • Financial coaches do not receive Fair Share payments from creditors, so there are no conflicts of interest.
  • Coaching requires regular face-to-face meetings to review progress and to continue education.
  • Coaches focus on diagnosis, organization, and educating.
  • Coaches teach skills and then make the client implement the payment plans.
  • Coaches help set short-term and long-term financial goals.
  • Credit Counseling is about managing a payment plan. Financial Coaching is about a relationship.
  • Credit Counseling normally requires a large corporate organization to manage plans. Financial Coaching is a profession operated by independent actors.

The opportunity going forward is to build a network of professionals who gradually guide clients out of debt and into savings while teaching life-long skills and awareness that changes peoples lives.
Technologies like Zoom and Teams and Google Meet allow us to break through geographic boundaries and to share information like never before.  We can share files and calendars and spreadsheets and video calls without leaving our homes. It is now possible to create a financial classroom with one-on-one counseling at virtually no cost.
It is possible for a single financial coach to guide 100 or more families out of debt and into savings.  A modest monthly fee will support the compensation necessary to support this new profession. As a bankruptcy attorney I personally manage hundreds of cases through 5-year chapter 13 payment plans, and a financial coach with 20 working days in a month can easily meet with 100 clients monthly by conducting 5 meetings per day.
Do the math.  I recently reviewed a new client’s debt payment program with a credit counselor. She was paying nearly $150 per month to have them manage a plan that was going nowhere. No real credit coaching was taking place.  If a trained financial coach could guild 100 clients out of debt and out of the ignorance of thinking like a poor person, they would earn a very decent living.
So, it is time to build a new network of professions that folks like me can refer clients to for real financial coaching. It’s time to build a brand that is easily recognized as a standard of professional care. The Association for Financial Counseling and Planning Education (AFCPE) is a newer organization moving in this direction.
I know where to send clients to prepare taxes or to fix their car or to have their lawn cut, but I don’t know a single individual who takes on personal credit counseling matters. If someone asks me for a lawyer referral I give them the lawyer’s name, not their firm’s name.  I know of credit counseling agencies who help with debt problems, but not a single human being who does. It’s time to change that.


1 month 2 days ago

Nebraska bankruptcy attorney Patrick Patino and had a great conversation about the hot topic of bifurcated chapter 7 fees in Nebraska.
In a traditional chapter 7 case all fees must be paid before a case is filed.  Why? Because unpaid attorney fees are wiped out once a case is filed so attorneys demand that all fees be paid BEFORE a case is filed.
But under the controversial bifurcation fee agreement the attorney only prepares some of the work before the case is field. After the case is filed the client signs a new contract  to complete the case.  Since most of the work is prepared after the case is filed the attorneys are, in theory, allowed to accept monthly payments.
Is this possible? Can attorneys charge a small fee down to file a skeletal chapter 7 case and then accept payments after the case is filed for the remaining work?
As our discussion reveals, the promise of affordable chapter 7 fees under the bifurcation fee arrangement may be illusory.


1 month 4 days ago

This article first appeared at Yahoo Finance and link is below.

https://finance.yahoo.com/news/nyc-pledges-65-million-taxi-163158992.html

NYC Pledges $65 Million of Taxi Aid That Drivers Call ‘Horrible’

Henry Goldman
Tue, March 9, 2021, 11:31 AM·1 min read

(Bloomberg) -- New York City is creating a $65 million fund to help taxi medallion owners, but drivers called the plan “a disgraceful betrayal from a city that already has blood on its hands.”

The proposal, funded with federal stimulus money, will offer $20,000 loans to help restructure debts on taxi medallions, and as much as $9,000 in debt payment support, said Taxi and Limousine Commissioner Aloysee Heredia Jarmoszuk.

“I think this new plan will be a difference maker for many drivers,” Mayor Bill de Blasio said Tuesday.

But Bhairavi Desai, executive director of the 21,000-member Taxi Workers Alliance, said the plan is “horrible” and “does absolutely nothing for us.”

“It’s a cash bailout for lenders while we are left to drown in debt, foreclosure & bankruptcy,” Desai said in a Twitter post. “No debt forgiveness. No collective solution. No justice.”

In response, the mayor said, “It’s very easy to call for plans that aren’t going to work. Our job is to come up with solutions that will actually work.”

Read more here: N.Y. Attorney General Seeks $810 Million From NYC for Taxi Fraud and here: Suicides, Traffic Hell in NYC Spur Second Look at Uber’s Growth

The market for taxi operating permits known as medallions has collapsed with the onset of the digital ride-hailing industry, leaving thousands of drivers facing financial ruin. Several have committed suicide.

The Alliance has called on the city to help convince and incentivize lenders to restructure their debt.


1 month 4 days ago

You have a reverse mortgage: Know your rights and responsibilities

Publication from Consumer Financial Protection Bureau “CFPB”.  Reverse mortgages can be a nightmare, leaving your spouse evicted from their home once the signing spouse dies.  This in-depth guide teaches current reverse mortgage borrowers about their rights and responsibilities under a Home Equity Conversion Mortgage loan. Topics include how a borrower can fulfill their loan obligation, what to do if receive a notice of foreclosure, loan payback options, and more.

Please don’t jeopardize your future security by assuming you know the law.

.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:Seniors should not be faced with homelessness because their spouse signed a reverse mortgage not understanding the legal consequences.  Don’t misunderstand me, there are good reverse mortgages that help the homeowner to stay in their home for as long as physically and psychologically possible.  Unfortunately, sleazy lenders saw seniors as easy targets for scams. 
Generally seniors trust those who are advertise themselves as “experienced”, whether the plumber, real estate agent, lawyer or doctor.  Trust must be earned, not freely given.  Always investigate any professional who is supposed to help you.  I say this time and again, typically you should be able to trust your gut.  Unfortunately, some con-artists are really good at deceiving others.  Reach out to family and friends for their guidance and common sense thoughts.

@media only screen and (max-width:980px) {.fusion-title.fusion-title-2{margin-top:0px!important;margin-bottom:6px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:10px!important;margin-bottom:10px!important;}}– Diane L. Drain.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 30px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 45px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}.fusion-button.button-1 {border-radius:10px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}Click here for steps to your free bankruptcy consultation
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.fusion-body .fusion-builder-column-5{width:75% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 15px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 15px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 5;padding-right : 0px;padding-bottom : 0px;margin-bottom : 20px;padding-left : 0px;}
The post You Have a Reverse Mortgage: Know Your Rights and Responsibilities appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.


1 month 4 days ago

Automatic Stay File with GavelOn January 14, 2021, the U.S. Supreme Court decided City of Chicago, Illinois v. Fulton (Case No. 19-357, Jan. 14, 2021), a case which examined whether merely retaining estate property after a bankruptcy filing violates the automatic stay provided for by §362(a) of the Bankruptcy Code. The Court overruled the bankruptcy court and U.S. Court of Appeals for the Seventh Circuit in deciding that mere retention of property does not violate the automatic stay. Case Background The City of Chicago (the “City”) impounded respondents’ vehicles for failure to pay fines for motor vehicle infractions. Thereafter, each respondent filed a Chapter 13 bankruptcy petition and requested the return of their vehicle. The City refused to return the vehicles, and the bankruptcy court in each case found the City’s refusal to be a violation of automatic stay. The Seventh Circuit affirmed, concluding that by retaining possession of the debtors’ vehicles after they declared bankruptcy, the City had acted “to exercise control over” the debtors’ property in violation of the automatic stay. Read More ›
Tags: Case Law Updates, Chapter 13, U.S. Supreme Court


1 month 5 days ago

Bankruptcy filings are beneficial for individuals who are no longer capable of making payments to their creditors. There are several advantages to filing for bankruptcy. One of the main reasons why debtors file bankruptcy is for an automatic stay, which prohibits collection activities from debt collectors. This means that the debtor shall be protected from creditor harassment and wage garnishment. Another objective of filing a bankruptcy petition is to obtain a bankruptcy discharge. 
Through filing a petition in bankruptcy, qualifying debts shall be eliminated. Seek legal assistance from Seattle Washington bankruptcy attorneys if you are considering filing bankruptcy. 
There are different bankruptcy rules for each bankruptcy chapter. For you to be qualified to file a bankruptcy petition, you must pass the bankruptcy means test. Your eligibility to file bankruptcy will also depend on your monthly income, living expenses, and the types of debts you owe from your creditors.
If you want to repay your debts without surrendering your assets, Chapter 13 bankruptcy is the best option for you. Bankruptcy proceedings under Chapter 13 (reorganization bankruptcy) are fairly clear and simple. However, you must understand the bankruptcy law before you consider a bankruptcy filing.
The majority of Chapter 13 filers seek legal help from a Seattle, Washington bankruptcy lawyer to assist them with the bankruptcy process. Learning how to file a bankruptcy petition is often more difficult than it seems.
Steps in Filing Bankruptcy under Chapter 13

  1. Chapter 13 Bankruptcy ProcedureA debtor should enroll and successfully finish a credit counseling course within six months before filing bankruptcy. The credit counseling course must be from an institution approved by the United States Trustee’s office.
  2. Debtors will prepare the petition in bankruptcy as well as the debt repayment plan proposal. The petition, payment plan, and other necessary paperwork must be submitted. All assets, wages, loans, and property transactions should also be disclosed. A Chapter 13 bankruptcy case hinges on the repayment plan. It is not easy to come up with a proposal that satisfies all the requirements. This is one of the reasons why hiring a trusted bankruptcy attorney is recommended.
  3. The paperwork will be filed by you and your legal representative, together with your most recent tax return and evidence that you have filed your tax return for the past four years.
  4. A trustee in bankruptcy will be appointed by the bankruptcy court to manage the bankruptcy case. The bankruptcy trustee shall review the repayment plan for legal compliance, collect payments, and allocate the funds to the creditors. The trustee shall also monitor your monthly income and transaction reports.
  5. Once you submit the required paperwork for your bankruptcy filing, the automatic stay takes effect. The creditors will be notified of the bankruptcy filing and the bankruptcy stay. Creditors will be unable to pursue collection activities due to the automatic stay. However, there are several exceptions and creditors may file a motion to lift it.
  6. Even though your payment plan is not yet confirmed, you will have to start making payments a month after you file bankruptcy.
  7. The meeting of creditors shall be arranged by the bankruptcy trustee. You are required to attend because questions regarding your finances and paperwork will be asked during the meeting. The creditors also have the right to object and ask questions regarding your repayment plan.
  8. You should attend a court hearing known as the confirmation hearing. Objections from creditors regarding the proposed repayment plan will be resolved in this court hearing.  If everything goes according to plan, the bankruptcy court will approve your repayment plan.
  9. Creditors are required to submit proof of claim forms to be paid. A proof of claim may be contested. For example, if a creditor fails to file a proof of claim, you may file on behalf of the creditor to settle the debt.
  10. Pay attention to the payment plan’s specifications and deadlines. A debtor should make regular payments until the proposed repayment plan is completed. In some cases, debtors are asked to file such records as income and expense reports.
  11. Complete a course in personal financial management. Before the case is closed, you should finish a debtor education course. This is distinct from the credit counseling that is necessary before filing for bankruptcy.
  12. The bankruptcy case will be dismissed after the bankruptcy court grants the debtor a bankruptcy discharge. The court will issue a discharge after the completion of the payment period. Any existing balance of the certain qualifying debt is wiped out by the bankruptcy discharge.

Rebuild your financial future and have a fresh start with your finances. It is highly advisable to consult with the best Seattle bankruptcy lawyers that are knowledgeable about bankruptcy laws and proceedings. Get in touch with Seattle Washington bankruptcy attorneys at Northwest Debt Relief Law Firm who are credible and experienced in handling bankruptcy cases, for legal help and assistance or for a free consultation.  
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The post Chapter 13 Bankruptcy Procedure in Seattle, Washington appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.


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