Blogs

2 weeks 1 day ago

Many clients who have defaulted on SBA loans receive a letter from the SBA indicating that their loan has been charged off. They ask us if this means the loan has been forgiven and does not need to be paid back.“Charging off” is an accounting concept that  allows the SBA to remove the loan from its books and records  as an asset, but the SBA can still try to collect the debt.Simply stated, charging off or charged off does not mean that a loan is forgiven!Even though the loan is charged off, the borrower still owes the money and the SBA can continue collection efforts.Collection methods include lawsuits, foreclosure on assets, garnishing wages, reporting the default to Treasury Direct (so that the Government can seize tax refunds) and reporting the default to credit bureaus. So in summary, a charge off is an accounting procedure but does not relieve the borrower of repayment responsibility. The SBA treats the charge off as a default and it will pursue further collection even after charge off.Clients or their advisors with questions about defaulted SBA loans should contact Jim Shenwick, Esq.  917 363 3391  [email protected]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!


2 weeks 4 days ago

MarketWatch offers a helpful article on obtaining credit after filing for personal bankruptcy. The article can be found at  https://www.marketwatch.com/guides/personal-loans/personal-loan-after-bankruptcy/
In our experience, representing hundreds of individuals who have filed for personal bankruptcy, clients are generally able to obtain loans or credit 1.5 to 2 years after receiving their Bankruptcy Discharge.
After a bankruptcy filing, we advise clients to save as much money as possible, obtain a secured credit card, and lease a reasonably priced car.
The goal is to demonstrate responsible credit usage, which will then enable you to obtain credit.
Jim Shenwick, Esq  917 363 3391  [email protected] Please click the link below to schedule a telephone call with me. https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt! 


2 weeks 6 days ago

The debanked website is reporting that Covid SBA EIDL loan charge offs increased by $52 Billion in 2023.   Those charge offs equal 17.2% of the unpaid principal balance of SBA outstanding EIDL loans. The story can be found at https://debanked.com/2024/02/covid-eidl-charge-offs-explode-increase-by-more-than-51-billion-in-fy-2023/This report is unsurprising, as a rough estimate indicates that 75 to 80% of our clients have defaulted or are considering defaulting on their SBA EIDL loans.SBA EIDL loan defaults raise Debtor/Creditor, Bankruptcy, Tax and Personal guaranty issues. SBA EIDL loan defaults are also reported to Treasury Direct (IRS) and a 30% penalty is added to the balance due.The worst action a borrower in default on an SBA loan can take is to ignore the situation.As one famous lawyer said, prayer is not a legal strategy!At Shenwick & Associates, we have developed techniques & strategies to minimize tax and debtor/creditor issues involving an SBA EIDL default.To speak to Jim Shenwick, Esq about an SBA EIDL loan default you can call him at 917-363-3391 or email him at [email protected]Please click the link to schedule a telephone call with Jimhttps://calendly.com/james-shenwick/15min---James Shenwick, Esq SBA EIDL Blog Posts:SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGShttps://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-penalties.htmlDefaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loanshttps://shenwick.blogspot.com/2023/12/defaulted-sba-eidl-loans-in-reversal-us.html
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....
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.htmlEIDL LOANS and SBA OFFER IN COMPROMISE PROGRAMhttps://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.htmlPPP & EIDL Fraudhttps://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html


3 weeks 3 days ago

 The Hill is reporting that credit card debt in the United States increased by $50 billion in the fourth quarter of 2023, according to recent findings from the New York Federal Reserve. 
Will this increase in credit card debt result in more personal bankruptcy filings?
The story can be found at https://thehill.com/business/4451222-credit-card-debt-increased-by-50b-new-record-high/
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!


3 weeks 5 days ago

 Chapter 11 Bankruptcy Filings Increase 22% Y/Y in January, Subchapter V Filings Up 43%
https://www.monitordaily.com/news-posts/chapter-11-bankruptcy-filings-increase-22-y-y-in-january-subchapter-v-filings-up-43/

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!


1 week 6 days ago

Here’s our payment schedule and work schedule:
What Does Chapter 7 Cost in Virginia April 2023
Lawyers are required to tell you what work we do for the money you pay. A lot of lawyers are pretty sketchy about that. I try to do better.
Do You Get More for Your Money with Us? Higher success rate and higher customer ratings.
There are two reasons, besides price, you should select the Bankruptcy Law Office of Robert Weed. First, our success rate. Or more specifically, our very low failure rate: the percentage of bankruptcies that are dismissed. (Dismissed means thrown out. Discharged means approved.)
You can see here that our rate of bankruptcy dismissals if vastly different than many other bankruptcy lawyers. Their dismissal rates run from six times to ten time more than ours!
Second, we have more than nine hundred five star reviews. Another lawyer, who has also done more than ten thousand bankruptcies, has fewer than eighty people who have given him five stars. Our customers are ten times more likely to post a five star review. We think that shows a real difference in the quality of our customer service.
Question-about-Bankruptcy-image
Whether your bankruptcy is simple or complex, you’ll like our friendly service with a smile.
What About Complicated Cases
Dozens of people every month come to the Law Office of Robert Weed for a different reason. These people worry about complicated issues in the bankruptcy–and they want an experienced lawyer who will treat their case individually, and get the best possible result for them.
People who have complicated bankruptcy problems sometimes ask, what does bankruptcy cost in Virginia. They want top rated service, but at a fair price.
Do you pick us out based on suggestion of one of our fifteen thousand happy customers, or the referral of another Northern Virginia lawyer, or reading our better than nine hundred five star reviews? Did you talk to a different bankruptcy lawyer that you didn’t feel quite right about?
You want a bankruptcy law firm who will take you through the twists and turns of the law and bring you out where you are trying to go.
You’ve come to the right place. For you, our legal fee will most likely be more than $3000.00 and could top $4000.00. (Again, there’s $385 in filing fees in addition.) When it’s over, you’ll agree it was worth it.
Or are you wondering, is bankruptcy is worth it?
Some people ask what does Chapter 7 bankruptcy cost, because they are not sure what bankruptcy actually does. If you want to know the fives ways bankruptcy gives you a fresh start, I have great info on that, here.
Here’s how we charge:
Fee Agreement April 2022
Whether your case is simple, or complicated, we charge a fair price and give you value for the money. You’ll like our friendly service with a smile. — Robert Weed
“I love being a bankruptcy lawyer, because I can help almost everyone I see.”

contact-mail
If you want to make an appointment, use call 703-335-7793, our main switchboard. Contact us today and sleep better tonight.


1 week 6 days ago

We’ve been Zooming–doing Zoom virtual bankruptcy consultations–since April 2020. We’re sticking with it.
We stopped in-office consultations with the March 2020 pandemic lock down. (I first heard of Zoom when my church started using it. We’re a small congregation and can see everybody on screen.)
Since April 2020 I’ve Zoomed bankruptcy consultations probably five hundred times.
Three advantages of Zoom virtual bankruptcy consultations
There are three advantages I’ve seen in doing virtual bankruptcy consultations.
First, it saves travel time. The traffic in Northern Virginia is as bad as it’s ever been. It takes too long to get anywhere. Three minutes setting up a Zoom call is better than trying to drive ten miles around here.
Second, people are more comfortable. Especially on the initial contact–what I call the Quick Call–it works out well. I’m at my own computer, where I can access all my info. And you are at home–or wherever–more comfortable and maybe more open than you’d be in an unfamiliar office.
I didn’t expect that. But I’ve seen we cover more ground and clear up more concerns with a virtual consultation.

I’m at my own computer, where I can access my info. And you are at home more relaxed than you’d be at a meeting in an unfamiliar office.
Alexandria Bankruptcy hearings are telephonic.
Hearings at the bankruptcy courts are now virtual, zoom and telephonic. That started with the pandemic. Our association, NACBA, along with the National Association of Bankruptcy Trustees and the National Association of Chapter 13 Trustees, have all asked that policy to made permanent.
Documents can be a problem.
After our quick call, I invite you to fill in my Be Happy form. That’s here. Then we’ll send you a password and links to upload the required documents. (Transferring documents can be the hardest part of the virtual consultation.)
You likely already have some of the documents in pdf. You can take a photo on your phone for the required ID. Having access to a scanner can be helpful. Here’s info on a free scanner for your phone.
Documents have a solution
Going to a nearby Staples or FedEx Office and faxing to us works well. Here’s our fax number. 703-677-8776.
If you need to bring us hard copies of documents, two of my four virtual locations have full time receptionists.
You can drop off documents there and they will get them to me. (These are Regus shared office space buildings. I now work mainly from a “zoom studio.”)
13800 Coppermine Rd, Herndon
800 Corporate Drive #301, Stafford
For most people, Zoom virtual bankruptcy consultation works
With two years experience, I can say for most people, virtual consultations are better.


1 month 4 days ago

 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!


1 month 1 day ago

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.


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