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1 month 1 week ago

Your Bankruptcy Papers
“Here are the papers we sign and file, to get your bankruptcy officially started. This is a half-hour video.”
 


1 month 1 week ago

When you’re in chapter 13, you don’t want a tax refund. Why? If you get a refund more than $250.00, you have to send it in to the bankruptcy trustee. So you don’t want to over-withhold.
You also don’t want to under-withhold. Why? Because on April 15, you’ll owe a tax payment. And you probably won’t have money available to pay it.
So you want as far as possible to break even when the taxes are filed.

In Chapter 13, as far as possible, you want to break even when you file your taxes.
That can be tough to do.
In January 2020, the IRS released a new calculator, that they claim will help you be accurate. Here it is. Hope it helps.


1 week 4 days ago

What About ….?
What about my bank account?
Filing bankruptcy does not force you to close your bank account. (Many credit unions will fire you as a customer.) If your credit is already so bad you can’t open an account, try TD Bank, a new bank in Northern Virginia. Another option is Wood Forest Bank, in some of the larger Walmarts, including the one on Liberia Avenue in Manassas..
What about immigration status?
Filing for Bankruptcy will not hurt your immigration status. You can still get a green card– you can still become a citizen, exactly the same as before.
What about my tax refunds?
Filing for Chapter 7 Bankruptcy will not stop your tax refunds.
Will my employer know?
Filing Chapter 7 Bankruptcy will not involve your employer.
Will I be garnished?
Filing for Chapter 7 Bankruptcy does not mean you will be garnished– it makes it illegal for your credit cards and medical bills to garnish you.
The post Miscellaneous Virginia Bankruptcy Questions appeared first on Robert Weed Bankruptcy Attorney.


3 months 4 days ago

Many clients have contacted us regarding defaulted SBA EIDL loans and the period of time in which the SBA or the Government may sue them to collect on the defaulted loan (the statute of limitations). The law and rules, as noted below are complex and vary based on the facts of the case.

  1. The Federal Government has 6 years to commence a lawsuit (statute of limitations) against the entity or person that obtained the EIDL loan from the SBA and defaulted.
  2. The Federal Government also has 6 years to sue the guarantor of a defaulted SBA EIDL loan.
  3. The 6 years runs from the date the borrower defaulted on the debt or the last time the borrower made a payment or otherwise acknowledged the debt in writing.
  4. However, the Federal Government also takes the position that the statute of limitations for fraud on an SBA EIDL loan is 10 years.
  5. Tax Refund Offsets - The IRS generally has 10 years to collect outstanding taxes, penalties, and interest by offsetting tax refunds. This 10-years starts  from the date the tax return was filed or the date the tax was assessed.
  6. Federal Payments Offset - Federal agencies generally have 10 years to refer eligible debts to the Treasury Offset Program for administrative offset of federal payments like Social Security retirement and disability benefits. 
  7. Salary Offset - Salary offset refers to withholding money from a federal employee's disposable pay to collect a debt owed to the federal government. There is generally no statute of limitations on federal salary offsets.
  8. Administrative Wage Garnishment - This is garnishment of pay as a means of collecting defaulted federal debt, even for a non-government employee. There is generally no statute of limitations as long as the underlying federal debt is still valid and legally enforceable.However, only 15% of a person’s pay may be offset thru wage garnishment. 
  9. This post does not discuss the statute of limitations for criminal penalties or actions by the Federal Government, which is beyond the scope of this post. 

Individuals or businesses with questions about SBA EIDL loans should contact Jim Shenwick, Esq   [email protected]    917 363 3391Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!


3 months 1 week ago

Many clients, attorneys, and accountants have asked where they can find our blog posts on SBA EIDL loans. To make their search easier, they are listed below. If you would like to speak with Jim Shenwick, Esq regarding your SBA EIDL loan, please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min
SBA EIDL Penalties if an SBA EIDL Loan is Not Repaidhttps://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loa...

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


3 months 1 week ago

 IRS waiving $1B in penalties for people, firms owing back taxes — here’s who qualifiesNY Post has article discussing the IRS waiving $1 billion in penalties for certain tax years. The article can be found at https://nypost.com/2023/12/19/business/irs-waiving-1b-in-penalties-for-people-firms-owing-back-taxes-for-2020-or-2021/?utm_source=gmail&utm_campaign=android_nyp
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!


3 months 1 week ago

The New York Post published an article stating that consumer spending through "buy now, pay later" services has increased as consumers struggle with growing debt obligations. This trend could lead to a rise in bankruptcy filings after the holidays. The article is available below. https://nypost.com/2023/12/18/business/holiday-debt-hangover-poised-to-be-particularly-nasty-this-year-analyst-says/?utm_source=gmail&utm_campaign=android_nyp
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!


3 months 1 week ago

Many readers of our blog posts and emails are aware that at Shenwick & Associates, we represent numerous borrowers who have defaulted on or not repaid their SBA EIDL loans. Many borrowers had hoped or prayed that SBA EIDL loans would be forgiven, similar to PPP grants. However, as one Boston lawyer stated, "Hope is not a legal strategy." Borrowers frequently inquire about the actions the government may take if they fail to repay their SBA EIDL loans. If payments are not received by the SBA, the agency will issue a Final Notice of Delinquency and Collection Actions. This notice states that unless you remit the full balance owed or contact the SBA Customer Service Center to discuss repayment options within 15 days from the date of the notice, the SBA may take further actions.Those actions include:1. Acceleration of the entire loan amount being due immediately,2. Interest accruing at the higher default rate,3. A lawsuit against you for the full amount owed,4. Foreclosure against the collateral of the Borrower, as provided in the Loan Agreement and Security Agreement,5. Garnishment of up to 15% of wages,6. Reporting that may disqualify you from obtaining a loan/guaranty from federal agencies,7. Reporting of your name and other information to credit bureaus, which may adversely affect your credit rating,8. Transfer of your account to the U.S. The Department of the Treasury ("Treasury Direct") who will pursue further collection actions, including offsetting any government payments owed to you, 9.Treasury Direct imposes a 30% penalty on the balance of monies owed to the SBA.10. Referral to private collection agencies and the U.S. Department of Justice for litigation, 11. The accruing of “Cancellation of Debt Income” under section 108 of Internal Revenue Code to the Borrower or the Guarantor (on loans greater than $200,000.00), which income is reported to the IRS by the SBA pursuant to a Form 1099-CBorrowers who have defaulted or are contemplating defaulting on an SBA EIDL loan should contact Jim Shenwick, Esq., as soon as possible.
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!--------Other SBA EIDL posts by James Shenwick, Esq.Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html

SBA EIDL HARDSHIP PROGRAM

https://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 Code

https://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 COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html

EIDL Defaulted Loans

https://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


3 months 2 weeks ago

 Be careful when write checks to pay bills due to fraud! See the New York Times article at https://www.nytimes.com/2023/12/09/business/check-fraud.html?smid=nytcore-android-share 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!


3 months 3 weeks ago

When you get sued you hang your head.  You feel like the battle is lost when the Sheriff delivers the court summons to your door. 

But getting sued is not the end of the battle. No, getting sued may be the best thing the other side did to equalize the playing field.

Yes, getting sued is a serious thing. You are out of your comfort zone and you face a professional litigator.  But there is something you are overlooking.

Lawsuits empower you to:

  • Demand an accounting of all charges and payments.
  • Demand a copy of all their documents. (“Motion to Produce Documents”)
  • Demand answers to written questions, what lawyers call “Interrogatories.”
  • Schedule face-to-face meetings with the people who sued you (the “Deposition”).
  • Ask the court to appoint an arbitrator or mediator to facilitate a settlement.

You see, litigation is a two-way street. 

The other truth of debt collection lawsuits is this: debt collection attorneys are not used to being confronted. Nine-five percent of their lawsuits wind in up Default Judgments, meaning the other side never bothered to file a response and they won a judgment by default.  The remaining defendants who file a response are washed away in Summary Judgment motions.

Collection attorneys almost never face an organized, informed and diligent opponent.  They don’t face such competition because the poor defendants don’t know the rules.  They don’t have the tools. And they don’t have the experience.

But here is another fact.  You are an expert in your own case. You know the facts.  You know the dentist is not entitled to his $1,500 fee since the implant was not installed correctly and you have suffered infections and jaw pain ever since.  You know the doctor’s office was supposed to file a claim with insurance but they didn’t do it in time to get paid.  You know the car lot sold you a lemon that started for just 3 days before dying. You know basic facts of the case better than the collection attorney. 

You are frustrated because they don’t answer questions. You are frustrated because they say all the money is due now and they won’t accept payments.  So you quit paying.

It’s time to change your mindset and go on the attack.  Demand answers.  Demand documents.  Demand the answer all your questions.  Schedule meetings–i.e., depositions–with the creditor who sued you.  Go face-to-face.  They didn’t want to answer your 2 minute phone call?  Schedule a half-day deposition with Dr. Arrogant and see how he likes his afternoon golf game canceled. 

Getting sued is nerve racking. But it is also an opportunity.  It is an equalizing event.  Get busy. Get organized.  Demand answers.  And along the way, you might discover that settlement offers come your way, payment plans become possible, and getting sued was the best thing that ever happened to you.

Image courtesy of Flickr


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