Blogs

2 days 4 hours ago

 

How
to Compromise an SBA Defaulted Loan that has been transferred to Treasury
Offset Program (TOP)

 

In
a prior blog post we discussed “How to Recall Defaulted SBA Loan from Treasury
Offset Program TOP” which blog post can be found at https://shenwick.blogspot.com/2024/04/how-to-recall-defaulted-sba-loan-from.html

If
you have a defaulted SBA loan that has been transferred to the Treasury Offset
Program (TOP) and you are unable to recall the loan from TOP to the SBA, your
options are: 1. Do nothing, 2. Close the business, 3. Negotiate a Compromise
with TOP, or 4. File for bankruptcy and halt the TOP offset with the automatic
stay provided by Section 362 of the Bankruptcy Code.

In
this blog post we will discuss how to Compromise an SBA Defaulted Loan that has
been transferred to TOP.

Please
note that the forms required to be submitted to TOP to Compromise the claim are
different from the offer in compromise forms submitted to the SBA for an offer
in compromise.

Documents
Required:


Provide a letter on your letterhead explaining the reasons for the default on
the SBA loan, why it should be reduced or compromised, the original amount of
the defaulted SBA loan, the proposed amount to compromise the defaulted SBA loan, the source of
funds for this settlement, and a detailed explanation of the financial hardship
involved for you or your business.


A Financial Statement for Business or Individual (which can be obtained online
from TOP, Department of Treasury Compromise Forms) must be completed and
submitted.

3  
Submit the last 2 years of the Business or Individual tax returns.

4  
The proposed payment should be a lump sum payment.

5  
Submit 2 Months of  bank statements for the individual or the business
&

6  
Submit 2 utility bills for for the individual or the business.

Then 
call TOP at 800-676-5737 to determine who the documents should be faxed or
emailed to. 

Please
note that compromising a claim with TOP is difficult to do!

For
those clients or advisors who would like to discuss compromising their 
SBA Defaulted Loan (that has been transferred to TOP)  with Jim Shenwick, Esq. please call Jim
Shenwick, Esq  at 917 363 3391 or email him at  [email protected]

Or 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!---How to Recall Defaulted SBA Loan from Treasury Offset Program TOP https://shenwick.blogspot.com/2024/04/how-to-recall-defaulted-sba-loan-f...
Treasury Offset Program (TOP) and SBA EIDL Loanshttps://shenwick.blogspot.com/2024/04/treasury-offset-program-top-and-sb...
U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loanshttps://shenwick.blogspot.com/2024/03/us-seeks-to-collect-on-up-to-20-bi...
SBA EIDL Loan Charge Offshttps://shenwick.blogspot.com/2024/02/sba-eidl-loan-charge-offs.html
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGShttps://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-pena...
Defaulted 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-revers...
SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute...
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-defau...
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-answer...
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISEhttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review....
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-compro...
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-busin...

 


5 days 2 hours ago

The very hot topic in Nebraska bankruptcy courts these days center around how courts apply changes to the homestead exemption law enacted in 2014.

The exemption protects up to $60,000 of equity in a debtor’s home, but the question is whether the exemption is limited the home or to the debtor. In the case of married debtors, do they receive a $60,000 exemption or $120,000?

In a recent court case handled by our firm (In re Hudson BK 23-80949), the Nebraska bankruptcy court clarified the limits of the exemption.

First, some background on the homestead exemption:

Neb. Rev. Stat. §40-101:  A homestead not exceeding sixty thousand dollars in value shall consist of the dwelling house in which the claimant resides, its appurtenances, and the land on which the same is situated, not exceeding one hundred and sixty acres of land.

  • The original homestead law in territorial Nebraska did not contain a dollar limitation. The dollar limitation ($2,000) was added in 1875, and that amount was sufficient to exempt the entire value of an average home.
  • To put that in perspective, the average cost of a home in Nebraska in 2024 is $282,000. 
  • The value of 160 acres of land in Nebraska can easily exceed two million dollars.
  • Over time the Nebraska legislature has watered down the homestead protection by failing to index it to inflation.

Nebraska Legislative Bill 964

In 2014 LB 964 extended the homestead exemption to protect single debtors without children.  No longer was the homestead limited to families.

LB 964 modified both sentences of Nebraska Statute § 40-102

  1. If the claimant is married, the homestead may be selected from the separate property of the husband claimant or, with the consent of the wife from her separate property. claimant’s spouse, from the separate property of the claimant’s spouse.
  2. When If the claimant is not married, but is the head of a family within the meaning of section 40–115 or is age sixty-five or older, the homestead may be selected from any of his or her property.

What is the homestead?

Reviewing the long court case history of the exemption law, the bankruptcy court first addressed the nature of the homestead: “What is a “homestead”? Is it the present worth of the exemption or is it the family home?”  Answer: The homestead is the home, not the exemption.

If the homestead is the exemption each debtor could claim the exemption, but if the homestead is the actual home, there is only one. The court pointed out that “the claimant does not claim the exemption. The claimant selects the homestead.” Since there is only one actual home the protection is limited to $60,000.

The bankruptcy court relied on past decisions:

  • LB 964 did not change well-established and longstanding caselaw holding a parcel of property cannot sustain two homesteads, which change must have occurred to sustain the debtors’ two exemptions.
  • It is true that a homestead cannot be occupied jointly by two families so that both will have homesteads therein. Also, it is true that if a tenant in common claims a homestead, he must occupy the property to the exclusion of his cotenants.  Luenenborg v. Luenenborg, 259 N.W. 649, 652 (Neb. 1935)
  • The Nebraska Supreme Court affirmed the nature of a homestead in 1989: Analogizing to the rule that “[a] person cannot have two homesteads, nor can he have two places either of which at his election he may claim as a homestead,” Travelers Indemnity Co. v. Heim, 218 Neb. 326, 330, 352 N.W.2d 921, 924 (1984), we note that two separate homesteads cannot exist in the same parcel of land.  Landon, 438 N.W.2d at 760

In rejecting the debtor’s contention that each married debtor was entitled to a $60,000 exemption, the court made the following observation:

  • LB 964 did not go as far as the debtor contends. The head of a family requirement was only in subsection (2) of § 40-102, which subsection never applied to a married couple.  Removal of the head of a family from subsection (2) did not change the law applicable to married couples who are, and were, governed only by subsection (1).
  • The homestead continues to be in property, not in an “interest” in property. Finally, and perhaps most importantly, the LB 964 did not change long-standing Nebraska law holding one parcel of property cannot sustain two homesteads. Section 40-102 continues to differentiate between an individual claimant and a married claimant. The debtors’ construction impermissibly ignores the differentiation.
  • Consent: The statute also retains the “consent” and “separate property” language. Under the debtors’ construction, consent becomes irrelevant. If both spouses can each separately claim two exemptions in one parcel of property, there is no need to make a claim from the spouse’s separate property. The spouse can claim the exemption on his or her own. The consent language only makes sense if the homestead remains in a singular family home, which might still be owned by one of the two spouses.

For years we bankruptcy attorneys have questioned the effect of the 2014 amendments to the homestead law, and there were rumors that perhaps a married couple could exempt up to $120,000 of their equity. However, unsuccessfully claiming a homestead exemption in a Chapter 7 case can have dire consequences, so attorneys have meekly assumed the exemption was capped at $60,000.

Our firm decided to get a ruling on the issue in a Chapter 13 case because if our challenge proved to be unsuccessful, the debtor’s home would nonetheless be protected. Although the opinion is disappointing to debtors, at least we have a clear decision on how much home equity is protected.

But good news is on the horizon. This case and others have caused our Nebraska legislature to consider an expansion of the homestead exemption, and that will be the topic of our next post.

Image courtesy of Flickr and Matt Turner


1 week 5 hours ago

 

How to Recall Defaulted SBA Loan from Treasury Offset Program TOP Many clients who have defaulted on an outstanding SBA EIDL loan have contacted us regarding how to “Recall” their loan from the U.S. Treasury Department Treasury Offset Program (“TOP”) back to the Small Business Administration (SBA) to avoid the 30% TOP penalty and to void setoff of Government payments to defaulted borrowers.First, we note that recall is  difficult to do!Advice and/or  steps on how to recall a defaulted SBA loan or what to do if a defaulted SBA loan cannot be recalled are provided below. 1. Improper Transfer.  If you did not receive the Official 60-Day Notice from the SBA, that your SBA loan was in default and  would be transferred to TOP for offset, use this error as a reason for recall and contact both TOP and SBA and argue that the loan was transferred to TOP in  error and without proper procedure. 2. Hardship Grounds. Documenting a hardship making it impossible for further payment of the SBA EIDL loan such as disability, a disaster or the closing or bankruptcy of a business if Government payments are offset (not paid) to the SBA loan borrower. 3. Intent to Cure Default.  If the borrower pays off delinquent amounts and late fees and intends to stay current on future payments, SBA may be willing to call the loan back to give another chance.4. Loan Payoff. Payoff the amount of the outstanding SBA loan balance to stop the offset. 5. Loan Compromise/Offer in Compromise. Contact the SBA or TOP and request a compromise involving negotiating a lump sum reduced payment or a reduced payment over a short period of time (Installment Payment)  for less than the full amount owed. The reduced amount to be paid  is based on “facts & circumstances” of the case, will require many forms to be completed and submitted to TOP and SBA, will require negotiations with Government officials and is at the discretion of the Government. 
For those readers wishing more information on offer in compromise please seeEIDL loans and bankruptcy, which can be found at http://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html and  a post on defaulted EIDL loans and the SBA Offer in Compromise program.  That post can be found at http://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html
6. File for Bankruptcy. When the borrower files for bankruptcy, section 362 of the Bankruptcy Code provides for an automatic stay, which stops the Offset and the business depending on the Bankruptcy filed can attempt to reorganize or liquidate. 
For information or guidance on Recall please contact Jim Shenwick, Esq.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!----To review Jim Shenwick’s other SBA EIDL Posts go to: 
Treasury Offset Program (TOP) and SBA EIDL Loanshttps://shenwick.blogspot.com/2024/04/treasury-offset-program-top-and-sb...

U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loanshttps://shenwick.blogspot.com/2024/03/us-seeks-to-collect-on-up-to-20-bi...
SBA EIDL Loan Charge Offshttps://shenwick.blogspot.com/2024/02/sba-eidl-loan-charge-offs.html
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGShttps://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-pena...

Defaulted 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-revers...
SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute...

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-defau...
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-answer...
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISEhttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review....
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-compro...
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-busin...


1 week 1 day ago


Treasury Offset Program (TOP) and SBA EIDL LoansMany clients have contacted our office to report that their delinquent SBA EIDL loans have been transferred to the Treasury Offset Program (TOP), and a 30% penalty has been added to their loan balance.The purpose of this Blog post is to discuss the Treasury Offset Program (TOP).   The Treasury Offset Program (TOP)  is operated by the Department of the Treasury’s Bureau of the Fiscal Service and it is a federal agency that was created to help the Government collect debts from individuals and businesses that owe money to the Government. When a debt owed to the Government is past due, TOP assists in collecting the debt by withholding funds due from the Government to the delinquent borrower. This process is known as "offsetting the payment" or "administrative offset."Examples of offset include the government withholding a tax refund due to a taxpayer who owes money to the government, garnishing 15% of a taxpayer's Social Security payment, or not paying money owed to a government vendor who defaulted on an SBA loan.When a defaulted SBA loan is transferred from the SBA to TOP, a 30% penalty is added to the loan balance and TOP will notify credit reporting agencies of the referral. A borrower may try and have the Defaulted SBA loan “recalled” from TOP to the SBA, but in our experience that is hard to do
What are a borrower's options when a loan has been referred to TOP?They can pay the full amount owed (including the 30% penalty). They can submit an Offer in Compromise to TOPThey can file for Bankruptcy to stay TOP’s collection efforts and discharge the loan balance orDo nothingThe basis for filing an offer in compromise is Federal Regulation 31 CFR § 902.2 - Bases for compromise. That regulation provides that (a) Agencies may compromise a debt if the Government cannot collect the full amount because:  (1) The debtor is unable to pay the full amount in a reasonable time, as verified through credit reports or other financial information; (2) The Government is unable to collect the debt in full within a reasonable time by enforced collection proceedings; (3) The cost of collecting the debt does not justify the enforced collection of the full amount; or (4) There is significant doubt concerning the Government's ability to prove its case in court.
Factors that will be considered in accepting an offer in compromise are Ability to Pay: TOP assesses the taxpayer's income, expenses, asset equity, and overall financial situation to determine their ability to pay the full amount owed.Income and Expense Analysis: A detailed analysis of the taxpayer's income sources, monthly living expenses, and discretionary spending is conducted to evaluate their financial circumstances.Asset Equity: TOP reviews the taxpayer's equity in assets, such as real estate, vehicles, investments, and other valuable items, as potential sources of payment.Future Income Potential: The borrowers earning potential are taken into account to estimate their ability to pay the debt in the future.History: The borrower's  attempts to pay or resolve the debt, are evaluated.Special Circumstances: Exceptional circumstances or other hardships, may be considered when evaluating an OIC.Collectibility: TOP reviews the likelihood of collecting the full amount owed.Tax Administration: An OIC may be accepted if it would promote future compliance or resolving economic hardship.Client’s or advisors who have defaulted SBA loans that have been transferred to TOP should contact Jim Shenwick, Esq.
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 week 3 days ago

Make your mortgage payment in Chapter 13
It’s easy to lose track of your mortgage payments in Chapter 13.  They don’t call you if you miss a payment.  It seems like nothing happens.
But if you slip back to three or four payments behind, they go to the judge and ask permission to foreclose you.  Even if you scramble to catch up, they tack on legal fees that you have to pay.
And if the the mortgage company will let you stay two or three payments behind, the bankrutpcy court won’t.  You’ll get to the end of your Chapter 13 plan, and the judge then throws out your case. 
 
 
The post Make your mortgage payment in Chapter 13 appeared first on Robert Weed Bankruptcy Attorney.


1 week 3 days ago

Success in Chapter 13: What You Need to Know
You want to be one of three consumers who succeed in Chapter 13.  As the lawyer in over a thousand successful Chapter 13 cases, I’ve collected tips for success in Chapter 13.
The Chapter 13 Trustee in Northern Virginia is Thomas Gorman
When you file Chapter 13 bankruptcy in Alexandria Virginia, you make payments to the Chapter 13 Trustee, Thomas Gorman. But you do NOT send them to his Alexandria address.  There’s a bank in Memphis that handles Chapter 13 payments for most of the bankruptcy courts in the country.  You send your payment to:
You mail your monthly Chapter 13 payment to a bank in Memphis.
                                               Thomas Gorman, Trustee 
                                               P.O. Box 1553 
                                               Memphis, TN 38101-1553
Be sure to put your case number on your check. Make the check payable to Thomas Gorman, Trustee.
I have a lot more info on Chapter 13 Trustee Thomas Gorman, here.  PS, His physical address is 1414 Prince Street, Suite 202, Alexandria VA.  You should never have to go there.
Pay Your Mortgage On Time
Did you file Chapter 13 to protect your house? Then make your house payment on time.
In Chapter 13, make that house payment on time!
Each month you are in Chapter 13, besides making your payment to the Chapter 13 trustee, you need to make your mortgage (or rent) payment. If you get in a short-term jam and are slipping behind–tell me!–but make the house payment first.
Here’s why. If you get thrown out of Chapter 13, you are out of Chapter 13.  If you get thrown out of the house, you are out of your house.  I explain more about that, here.
 
 
 
The post Success in Chapter 13: What You Need to Know appeared first on Robert Weed Bankruptcy Attorney.


1 week 5 days ago

Here’s what we usually need for our second meeting
Stafford bankrutpcy Lawyer Robert Weed is knowledgeable and kindMy Be Happy form asks the information the bankruptcy court needs to approve your case. So we can “be happy.”
The Be Happy form is mostly bio information that we need to get your case approved.  You can start here.  (Please don’t budget too low on your food and clothes.)
We’ll need a credit report. You have a legal right to get a free one at annualcreditreport.com. Usually, TransUnion is the easiest one of the three to download and read. They’d rather you pay than get a free one, so they make it just a little complicated. Vanessa can take you through it if you have any trouble,
Vanessa will also set up document portals for the required documents. Last year’s taxes, seven months of pay stubs, your ID and Social Security card.
I’m required to send you these fine-print notices.
This links to the way I calculate your legal fee.  This is the price set by the court for Chapter 13 bankruptcy cases.
 
 
 
The post Here’s What We Need for our Second Meeting appeared first on Robert Weed Bankruptcy Attorney.


2 weeks 6 days ago


The Miami Herald reported on PPP fraud in South Florida, which is currently being prosecuted by the government. The article can be found at  https://www.msn.com/en-us/news/crime/ar-BB1ktBVX?utm_source=pocket_mylistRather than spending the money on employee wages and other overhead costs, much of it was defrauded or spent on luxury goods purchases. The government is now prosecuting the individuals and attempting to recover the money or property.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 weeks 1 day ago

How Bankruptcy Can Stop Repossession and Get You Back on Track
Are you worried about losing your car because you’re struggling with debt? You’re not alone. Car repossession can be a scary and stressful experience, but there’s hope. Our Georgia bankruptcy attorney could be your key to stopping car repossession and getting back on track financially.
When you can’t keep up with car payments, repossession might feel like it’s right around the corner. It’s a tough spot to be in, but don’t panic. There are ways to prevent repossession and keep your car parked in your driveway where it belongs.
Quick Summary:

  • Car repossession occurs when a lender takes back a vehicle due to missed payments or other violations of the loan agreement.
  • Cars get repossessed  if you can’t pay for it anymore. This can happen because of money problems, unexpected events, or not being able to afford the loan payments.
  • Bankruptcy can stop car repossession by initiating an “automatic stay.” This prevents creditors from seizing the vehicle. It provides a chance to reorganize debts or liquidate assets under Chapter 7 or Chapter 13 bankruptcy

What is Car Repossession?
Car repossession happens when you can’t keep up with your car payments, and the lender takes your car away. It’s like when you borrow money to buy a car, but then you can’t pay it back on time. The lender has the right to take the car back because it’s the collateral for the loan.
When a car gets repossessed, it’s usually not a pleasant experience. The lender might send a repo agent to take the car from you, and they can do it without warning. They might even come to your house or your work to take the car back.
Why Do Cars Get Repossessed?
Understanding these common reasons for car repossession can help you stay on top of your finances. It also helps you avoid getting into a situation where your car is taken away. If you’re struggling to make your car payments, it’s important to communicate with your lender. This gives you an opportunity to explore your options to prevent repossession. Here are the most common reasons why cars get repossessed in the United States:
Missed Payments
One of the most common reasons for car repossession is missing payments. When you take out a loan to buy a car, you agree to make regular payments to the lender. If you miss one or more of these payments, the lender may decide to repossess your car.
Financial Hardship
Sometimes, unexpected financial difficulties can make it hard to keep up with car payments. This could be  from losing a job, facing medical bills, or other financial challenges. If you can’t afford to make your car payments, the lender may repossess your car.
Defaulting on the Loan
Defaulting on your car loan means that you haven’t met the terms of the loan agreement. This could happen if you consistently fail to make payments, or if you violate other terms of the loan agreement, like not having insurance on the car.
Change in Circumstances
Life can be unpredictable, and sometimes circumstances change. If you experience a major life event like a divorce, illness, or relocation, it can impact your ability to make car payments. In these cases, the lender may repossess your car if you can’t find a way to catch up on payments.
Stop Car Repossession Now: How Bankruptcy Can Help
If you’re worried that your car might get repossessed because you’re struggling with debt, there’s a way to get relief – it’s called bankruptcy. Bankruptcy is a legal process that can help you deal with overwhelming debt by giving you a fresh start. And one of the big benefits of bankruptcy is that it can put a stop to car repossession.
When you file for bankruptcy, something called an “automatic stay” goes into effect. This is like hitting the pause button on any collection actions, including car repossession. It means that your creditors can’t take any further action to repossess your car while the bankruptcy process is going on. This includes the company you owe money to for your car. 
There are different types of bankruptcy, but the two most common ones for individuals are Chapter 7 and Chapter 13.
Chapter 7
Chapter 7 bankruptcy is often called “liquidation” bankruptcy. It involves selling off your assets to pay your debts. But don’t worry – in many cases, you can keep your car even if you file for Chapter 7. There are exemptions in bankruptcy law that allow you to keep certain assets, including your car, up to a certain value.
Chapter 13
Chapter 13 bankruptcy is sometimes called “reorganization” bankruptcy. It involves creating a repayment plan to pay off your debts over time. With Chapter 13, you can often keep your car and catch up on missed payments through the repayment plan.
Facing Repossession? A Georgia Bankruptcy Attorney Can Hit the Brakes
Many people worry about their cars being taken away when they can’t pay their bills. But don’t worry, there’s help available. Our Georgia bankruptcy attorney can be your guide and protector during this tough time. Here’s how we can help:
Understanding Your Options
We can explain the different types of bankruptcy and how they might apply to your situation. We’ll help you figure out if bankruptcy is the right choice for you and which type would be most beneficial.
Negotiating with Creditors
We can negotiate with your creditors on your behalf to try and work out a deal to keep your car. We might be able to arrange a new payment plan or modify your loan terms to make it easier for you to keep up with payments.
Protecting Your Rights
We will make sure that your rights are protected throughout the process. We’ll help you understand what your rights are and make sure that creditors aren’t taking advantage of you.
Don’t let the fear of losing your car overwhelm you. With the help of our bankruptcy law firm, you can fight to stop car repossession. They’ll stand by your side, explain your options, and fight for your rights. 
Let Our Georgia Bankruptcy Lawyers Help Fight Back Against Car Repossession
Facing car repossession is a stressful situation, but filing for bankruptcy can be a powerful tool to stop it. With bankruptcy, you have options to keep your car, whether it’s Chapter 7 or Chapter 13. These options can give you time to figure things out and get back on track financially.
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3 weeks 6 days ago

 

HOW TO USE ARTIFICIAL INTELLIGENCE IN YOUR LAW PRACTICE (“BE AN IMPLEMENTER) CLE OUTLINE  DELIBERATE  SOLOS PRESENTED ON  03-2008-2024
Why You Should You Use Artificial Intelligence in your Law Practice:
1. Effectively using technology can make the practice of law easier, more enjoyable and more profitable!
2. Failing to use technology in your law practice may be considered "malpractice" by many State Bar associations.
3. Artificial Intelligence is the most significant development in Legal Technology in the last 50 years: It will turn out to be more impactful to lawyers than the personal computer, email, smartphones, the Internet or Google Search
4. It is also a “Disruptive Technology”-it will sneak up on and displace existing technology at a quick pace
5. One argument against using Artificial Intelligence in law practice concerns confidentiality. Similar issues were raised years ago regarding email, but many State Bar associations ruled that email did not violate confidentiality.-My thoughts about Hallucinations are discussed below
6. Google Search has become less reliable, according to reports from many users and a study by researchers in Germany.
I have a Pixel phone, I use Google Docs, Google Drive  & many Google products, but I am dissatisfied with many Google Search results.
Advertising, Spam & Artificial Intelligence have corrupted Google searches
Paid placement ads have negatively impacted Google Search results
***When you do a Google Search you get 10 blue squiggly lines, not answers to questions!
Artificial Intelligence is an “Answer Genie”-you do not get 10 Squiggly Lines, you get answers to your questions in real time!
Artificial Intelligence searches allow you to refine your search prompts after each search rather than having to do new searches in Google.
7. On an average day I use Artificial Intelligence 20 times a day
II. HOW I USE ARTIFICIAL INTELLIGENCE PRODUCTS ON A DAILY BASIS:
a. Flawlessly AI - Free AI Writing Checker-will review text up to 1000 characters long.It is free. You copy & paste text into the app to have it review or edit your writingI do not send out a lengthy email or blog post without using itIt is the best grammer checker program I have used 
b. Wordtune: Free AI Writing Assistant | Write Better Today https://www.wordtune.com/
 c. chatLAW Q&A with AI Trained on Bankruptcy Law for Bankruptcy Research
1. Free chatbot dealing with Bankruptcy law, created by a PHD in Computer Science with no Bankruptcy law experience
2. Best Bankruptcy law research program I have ever used-in my opinion better than Lexis, Westlaw or Google Scholar
3. You type in a question, it provides an Answer, citation to cases and a “SHOW AUDIT” link that directs you to the cited cases
d.   Image Creator  from Microsoft & Google-these products are free, easy to use, you enter text and they produce an image that you can use for Blog posts, emails or social media.

Microsoft Designerhttps://designer.microsoft.com/image-creator
Google ImageFXhttps://aitestkitchen.withgoogle.com/tools/image-fx
e. CLAUDE & PERPLEXITYi. In my opinion these are the 2 best free Artificial Intelligence search botsii. Claude by Antrop/c -incredibly easy to use & very accurate search results
-it also has a “paper clip” icon that allows you to upload & search documents
-Real life example: I uploaded a 65 page Bankruptcy Petition and asked  Claude how many secured creditors and how many unsecured creditors were referenced in the Bankruptcy Petition and the average dollar amount of the claims: the results came back in 13 seconds
iii Perplexity -results include footnotes -very accurate results
-Jeff Bezos Amazon founder recently invested $250 million dollars into the company
iv. How  I use Claude & Perplexity on a Daily Basis:
-Legal Research-Document Drafting-Learning new areas of the law-Developing or implementing legal strategies in cases-As “Co-Counsel to bounce questions or strategies off-Suggesting documents to request in Discovery & Questions to ask at a deposition-Troubleshooting technology problems or issues-Recommendations for new tech apps to use-Training Tips: I am training for a half marathon. How do I train for that event?-Food recipes -General Searches in place of Google Search
f. Craft document Creator Artificial Intelligence  i. Get a personalized document in seconds
g. Podcast Search thru Artificial Intelligence Dexa & Listen Notes 

Dexa:https://dexa.ai/?utm_source=substack&utm_medium=email
Listen Notes:https://www.listennotes.com/search/?q=Israel%20AND%20Gaza&sort_by_date=0&scope=episode&offset=0&language=Any%20language&len_min=0

h. Canvahttps://www.canva.com/“Canva is a free graphic design platform that allows you to easily create invitations, business cards, flyers, lesson plans, Zoom backgrounds, and more using professionally designed templates”
I used it recently to create a Zoom and Google Meet Background-easy to use & free
III. How to Learn to Use Artificial Intelligence in your Law Practice:
1. Use “Kaizen” Japanese approach of continuous gradual improvement
2. Spend 15 minutes each day learning Artificial Intelligence-google alert web searches on Artificial Intelligence topics, read articles & youtube videos
3. Sign up & read Dr Jeremy Caplan Wonder Tools Professor of Journalism at CUNY Wonder Tools  Tools helps you discover the most useful sites and apps https://wondertools.substack.com/
4. Sign up & read The Rundown  Learn AI in 5 Minuteshttps://www.therundown.ai/subscribe?utm_source=www.therundown.ai&utm_medium=newsletter&utm_campaign=openai-changes-the-ai-video-world
5. Learn the difference between “Prompt Engineering vs Search Queries”
HOW TO WRITE AN EFFECTIVE PROMPT:
-A Prompt needs background information and context to be useful!
-Tell the Chatbot what you want it to do (give it Instructions) 
Example of a Prompt: I am a Bankruptcy attorney. I have a client, a Debtor, that    wants to file a chapter 13 Bankruptcy Petition in the SDNY. The Plan will be a 5 year plan, if all creditors, including a creditor who got a judgment for an intentional tort, are not paid in full over 5 years, will the Debtor get a discharge?
-The more prompts you write and use, the better you will  become at Prompt Engineering!
6. Go cold turkey: do not use Google Search for one day. Instead, only conduct searches on Claude, Perplexity, or ChatGPT and compare the results.
7. How to Prevent Hallucinations-BE ESPECIALLY CAREFUL & CHECK CITES TO LEGAL CASES WHEN USING ARTIFICIAL INTELLIGENCE FOR LEGAL RESEARCH!
A. Use Perplexity which provides footnotes to its answers & is considered the most accurate chatbot
B. Copy & paste your prompt into Claude, Perplexity, ChatGPT & Google and review the results from all searches to determine if the results are accurate or correct. 
If you are using Artificial Intelligence for legal research or to write a Motion or Brief check & shepardize the cited cases
Do not let Hallucinations be a crutch to prevent you from using or learning Artificial Intelligence.

Jim Shenwick, Esq  917 363 3391  [email protected] https://calendly.com/james-shenwick/15minPersonal & Business Bankruptcy, Bankruptcy Litigation, Workouts, Asset Protection Planning & Defaulted SBA EIDL Loans.We held individuals & businesses with too much debt!


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