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Understanding the bankruptcy process can be a daunting undertaking. However, if you break it down into manageable sections, it can be easier to understand. Keep reading the following sections to learn more about the bankruptcy process and how it applies to your individual situation: Bankruptcy Explained, Bankruptcy Types, Why Should You File Bankruptcy, When Should You File Bankruptcy, and Bankruptcy Costs.
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The September 2018 New York City Taxi & Limousine Commission (TLC) sales results have been released to the public. And as is our practice, provided below are Jim Shenwick’s comments about those sales results.
1. The volume of transfers rose from August. In August, there were 54 unrestricted taxi medallion sales.
2. 44 of the 54 sales were foreclosure sales, which means that the medallion owner defaulted on the bank loan and the banks were foreclosing to obtain possession of the medallion. We disregard these transfers in our analysis of the data, because we believe that they are outliers and not indicative of the true value of the medallion, which is a sale between a buyer and a seller under no pressure to sell (fair market value). One transfer was an estate sale for no consideration and another transfer was from the dissolution of a partnership, which also does not reflect fair market value and which we have also excluded from our analysis.
3. However the large volume of foreclosure sales (approximately 81%) is in our opinion evidence of the continued weakness in the taxi medallion market.
4. The eight regular sales for consideration ranged from a low of $160,000 (three medallions), $175,000 (two medallions), $180,000 (one medallion) and a high of $200,000 (two medallions).
5. Accordingly, the median value of a medallion in September was $175,000, the same as in August.
In Jim Shenwick’s opinion, the new NYC law restricting the number of Uber, Via and Lyft licensesdoes not seem to have yet increased the value of taxi medallions.
Please continue to read our blog to see what happens to medallion pricing in the future. Any individuals or businesses with questions about taxi medallion valuations or workouts should contact Jim Shenwick at (212) 541-6224 or via email at j[email protected].
Lomto Federal Credit Union of Queens, which failed last year after taxi loans unleashed a shower of red ink, was acquired today by Teachers Federal Credit Union.
The acquisition comes exactly a month after Teachers Federal acquired another Queens institution done in by dud taxi loans: Melrose Credit Union.
Lomto and Melrose, along with the failed Montauk Credit Union and First Jersey Credit Union, were specialists in lending to buyers and owners of taxi medallions, the metal plates that confer the right to drive a cab. Before the rise of ride-hailing apps in 2014, the value of a taxi medallion soared to more than $1 million, and lenders came to see the loans as virtually risk-free. New York taxi medallions now sell for less than $200,000, often in foreclosure auctions.
Signature Bank and Medallion Financial also have reported big losses from taxi lending. The unraveling of the business has taken a toll on cabbies and medallion owners.
The city's leading medallion owner, Evgeny "Gene" Freidman, pleaded guilty in May to tax fraud related to his taxi business.
And on Sept. 18 Michael Cohen, President Donald Trump's former attorney, divested 10 medallions he controlled. The city forced the sale after Cohen pleaded guilty in August to eight criminal charges, including tax evasion related in part to the concealment of income generated by his medallions.
Copyright © 1996-2018. Crain Communications, Inc. All Rights Reserved.
Retiring Chapter 13 Trustee in Seattle
After more than 19 years as the Chapter 13 Trustee in Seattle, Mike Fitzgerald will retire on September 30, 2918. The United States Trustee has announced the appointment of Jason Wilson-Aguilar as the Chapter 13 Standing Trustee for Seattle, effective October 1, 2018.
After nearly two decades as the Chapter 13 Trustee in Seattle, Mike Fitzgerald retired on September 30, 2018. The United States Trustee has announced that Jason Wilson-Aguilar will be replacing him as the Chapter 13 Standing Trustee for Seattle starting today.
Jason Wilson-Aguilar was Senior Staff Attorney and Legal Department Manager of the Chapter 13 Trustee’s Office for roughly a decade prior to becoming Standing Trustee. He was previously Vice President and Counsel in the Home Loans and Consumer Lending Division of Washington Mutual Bank’s Legal Department. Mr. Wilson-Aguilar has represented both debtors and creditors in consumer bankruptcy cases in both Washington and Oregon. He has been a prolific writer and presenter on bankruptcy and foreclosure-related topics over the years and has long ties to the region. He received his B.A. from the University of Oregon and was awarded his J.D. from the Lewis and Clark Law School in Portland, Oregon.
Debtors currently in Seattle area Chapter 13 will likely encounter little if any changes in any aspect of the way their cases are currently being handled because Mr. Wilson-Aguilar has been actively overseeing their cases for some time.
Please let us know in the months to come If you do have any questions about how the change in Trustees might affect you. We are happy to help.
The post Chapter 13 Trustee in Seattle appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
By Katy Stech Ferek
WASHINGTON—The legal professionals who ensure people going through bankruptcy aren’t hiding assets are pushing lawmakers for their first pay raise since 1994, saying the robust oversight of the country’s personal-bankruptcy system is at stake.
In a House hearing on Wednesday, consumer-bankruptcy experts said the pay for the watchdogs, called bankruptcy trustees, should be doubled to $120 per case.
The experts said trustees play a vital role in the bankruptcy process by making sure people don’t hide valuable possessions and by returning recovered money to people and small businesses who are awaiting payment. Many are drawn to the work not for the pay, but for the prestige or public-service aspect. For most bankruptcy cases, they get only a flat fee, currently $60—far less than what they could earn for other legal work.
Roughly 1,100 trustees monitor chapter 7 cases, the most widely used form of bankruptcy for individuals. But during the hearing before a subcommittee of the House Judiciary Committee, experts testified they worried that the stagnant pay would lead to fewer competent, honest applicants. Last year, 20 candidates applied for every open chapter 7 trustee position, down from 58 in 2010, according to the Justice Department, which runs the program.
At the hearing, Rep. Tom Marino (R., Pa.) agreed with witnesses, calling trustees “vitally important” to the bankruptcy system. Mr. Marino is co-sponsor of a bipartisan bill that would raise trustees’ pay.
He said lawmakers agree the increase is necessary but they have “different paths to getting there,” referring to who should pay for it.
Trustees can uncover money and return it to pay off a bankrupt person’s debt to small businesses, credit-card companies and other individuals such as ex-spouses, Illinois trustee Neville Reid testified at the hearing. Taxpayers also benefit, he said, noting that chapter 7 trustees distributed roughly $170 million to state and federal tax authorities in 2016.
“Trustees frequently uncover schemes and wrongdoing that lead to prosecutions that prevent further injury or achieve justice for innocent people, even though the trustees frequently do not recover the value of their time investigating such matters,” Mr. Reid said.
The bill discussed at Wednesday’s hearing has support from two influential blocs, the American Bankers Association trade group and consumer-bankruptcy advocates. Several similar proposals have failed in the past.
The latest legislation would fund the pay increase by making bankrupt individuals pay higher fees.
Some lawyers and consumer-focused nonprofits are urging Congress to find another source of money to pay for the increase, such as a new fee for those filing requests for payment from someone going through bankruptcy.
Chapter 7 allows a financially troubled individual to sell property to repay certain bills before a judge cancels some unpaid debt, such as credit-card and medical bills. Last year, 472,190 individuals and couples filed for chapter 7 protection.
Trustees can also receive a second form of compensation beyond the flat fee: money from selling possessions and property valued above the limits of what a bankrupt person is allowed to keep. But cases with trustee sales are rare, occurring less than 10% of the time.
Under federal law, chapter 7 trustees review lists of individuals’ possessions and expenses and later question them in person. The compensation structure gives trustees incentives to look for hidden assets, but the model isn’t always successful. Jason Gold, a Washington, D.C., trustee, said that in at least 2,000 cases—nearly 8% of the total he has taken since 1989—he has spent a few hours to several days on a case only to realize there are no additional assets to sell.
Overall trustee compensation has fallen over the past six years, including an 18% drop in annual pay last year, Justice Department officials said. The decline comes as the number of people who file for bankruptcy each year has fallen since a 2010 peak.
Meanwhile, the number of bankrupt people who are so poor that they don’t have to pay the fee has increased in recent years. The number of chapter 7 cases with waived fees has grown to 4.7% in 2016 from 1.9% in 2007, testified Raymond Obuchowski, a Vermont-based trustee. Mr. Obuchowski has grown a long beard in protest of trustees’ pay, saying he won’t shave until Congress authorizes a raise.
Some consumer advocates say the low pay and drop in filings have driven trustees to be more aggressive in an attempt to boost their compensation.
Tara Twomey, executive director of the National Consumer Bankruptcy Rights Center, said trustees have gotten more creative in their recovery efforts since 2010, including by trying to sell property that bankrupt people would have historically been able to keep. Others have sued colleges to claw back tuition that bankrupt parents paid for their children.
Ms. Twomey supports the compensation increase but doesn’t want bankrupt people to pay for it. She and other consumer advocates said that a 2005 law already increased the costs of a system designed to help people who are financially struggling.
Rep. David Cicilline (D., R.I.) said he wouldn’t vote for the bill in its current form, saying the cost of bankruptcy is already “a great challenge for many people.”
Corrections & Amplifications
Jason Gold became a chapter 7 trustee in 1989. An earlier version of this article incorrectly said it was in 1998. (Sept. 26, 2018)
Copyright ©2018 Dow Jones & Company, Inc. All Rights Reserved.
By Josh Ocampo | Sept. 21, 2018 Nic Hunt has been driving a taxicab in New York City for more than 30 years. Hunt’s best friend, Nicanor Ochisor, died by suicide in March. Friends and family members of Ochisor, who was also a cab driver, believes his suicide was the result of financial pressure due to increased competition for passengers with ride-hailing apps like Uber and Lyft.
“I still have texts in my phone when he text[ed] me. ‘Half an hour I couldn’t pick up a passenger’ or ‘40 minutes, I couldn’t find a passenger,’” Hunt said on Mic Dispatch.
Six taxicab drivers in NYC have died by suicide since November, sparking protests and rallies aimed at protecting drivers’ wages. Lyft’s revenue soared to $1 billion in the fourth quarter of 2017; in the second quarter of 2018, according to a Bloomberg report, Uber generated $2.8 billion in sales. 2017 also marked the first year Uber outpaced yellow taxis: Uber provided more than 400,000 trips per day in NYC that year, compared to around 300,000 per day for yellow taxis.
Meanwhile, NYC’s taxicab revenue dropped 9% in 2016, and operating your own cab by purchasing a coveted taxi medallion also means drowning in debt for many drivers. NYC taxi medallions, often passed from generation to generation, were once considered safe investments — in 2014, a medallion was worth as much as $1.3 million. Today, many of those medallions are worth much less than what drivers borrowed to buy them, something many attribute to the rise of Uber and Lyft.
According to retail website nycitycab.com, a medallion now retails for as low as $100,000. The cheapest medallion currently on the site is being sold as part of a foreclosure sale, a growing trend among taxi drivers around the country right now. In Chicago, 774 taxi medallions had been surrendered to the city as of May 22, 2017, with drivers unable to afford taxes and license fees associated with ownership. Many of those end up moving to foreclosure.
“You sleep like two, three hours, then you wake up and you turn around in bed,” Hunt said. “It’s a difficult time, mortgage for the medallion, mortgage for the house. One time I didn’t feel good and I told my wife, ‘I’m going to the hospital, I won’t come home.’ I had an anxiety attack in my physician doctor’s office. So then I find out I suffer [from] depression.”
But there’s hope for some cab drivers, at least, in NYC. According to the New York City Taxi and Limousine Commission’s rulebook, one of its duties is to establish and enforce standards to ensure all taxi driver licensees remain “financially stable.” In August, NYC became the first major metro area to aid drivers affected by the rise of ride-hailing apps: The New York City Council passed legislation to “cap the number of for-hire vehicles for a year.” and to establish minimum pay rates for taxi drivers, the New York Times reported.
“More than 100,000 workers and their families will see an immediate benefit from this legislation,” Mayor Bill de Blasio said on Twitter. “And this action will stop the influx of cars contributing to the congestion grinding our streets to a halt.”
Not everyone agrees with de Blasio. Thirty-nine council members voted in support of the cap on licenses, but Councilman Eric Ulrich was one of six who opposed it.
“I believe in capitalism,” Ulrich said on Mic Dispatch. “Standing in the way of Uber, as I said on the floor with [the] City Council, would be like standing in the way of Netflix because we wanted to save Blockbusters from closing.”
Uber communications manager Alix Anfang said the regulation will threaten “one of the few reliable” transportation options in the city.
“As Uber continues to grow in communities outside of Manhattan, we will do whatever it takes to ensure that no New Yorker who needs a ride is left stranded,” Anfang said in an email.
Uber drivers serve more boroughs than yellow cabs do, with 22% of Uber rides starting outside of Manhattan compared to just 14% of all yellow and green cabs (also known as Boro Taxis, a fleet of cabs deployed specifically for travel outside of Manhattan).
Joseph Okpaku, Lyft’s vice president of public policy, reiterated the importance of its service for outer-borough travel in an emailed statement.
“These sweeping cuts to transportation will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs,” Okpaku said. “We will never stop working to ensure New Yorkers have access to reliable and affordable transportation in every borough.”
And while regulations on Uber and Lyft could be good news for taxi drivers, it’s only a temporary solution — and only one of the issues affecting drivers who struggle to compete against corporate behemoths like Uber.
“They stopped the bleeding now — no more bleeding for one year,” Hunt said. “But the fight is just beginning.”
Check out episode 20 of Mic Dispatch above — only on Facebook Watch.
© 2018 Mic Network Inc. All rights reserved.
The best ways handle Amending Bankruptcy Forms in Tacoma
Amending bankruptcy forms is usually necessary if you discover a mistake in your bankruptcy forms, petition, schedules, or other paperwork, you can fix it easily by filing an amended version of the form. The bankruptcy rules enable filers to amend their forms any time prior to they receive a final discharge.
Filing an Amended Bankruptcy Form in Tacoma
To remedy an error on a form, you’ll need a blank copy of the form. You will also need to find out if the Tacoma bankruptcy court has a local form you should utilize to file an amendment.
Some courts enable you to complete only the portion of the form that was inaccurate, leaving the rest blank (other than for your name, case number, and other identifying info). As soon as you’ve finished the amended form in the manner recommended by your court, you’ll check the “Check if this is an amended filing,” box in the upper right-hand corner or you may need to write the word “AMENDED” next to the form title.
Amending bankruptcy forms may require you to complete and file several forms, even if you made just one error. For instance, if you forgot to list the lender holding the note to your automobile, you might need to amend Schedule C: The Property You Claim as Exempt (if you plan to declare that the equity in the car is exempt), and Schedule D: Creditors Who Have Claims Secured by Property.
You Must Complete the Declaration About Individual Debtor’s Schedules
You state under penalty of perjury that all of the contents are appropriate and true by signing the Declaration About Individual Debtor’s Schedules when you submit your bankruptcy petition. Because your initial declaration will not cover the brand-new information you send to the court, you need to complete and file a brand-new declaration with your amended schedules.
Filing Your Completed Forms in Tacoma
As soon as you have completed amending bankruptcy forms, finished a brand-new declaration, and completed any local forms you need to file with your amended paperwork, you will need to file the amendments with the bankruptcy court and pay a fee.
File the amended forms and schedules with the bankruptcy court, following the court’s instructions regarding what order the forms need to be in, the number of copies is required, whether you have to consist of a cover sheet or letter describing the modifications, and so on. You should likewise serve a copy of the amended papers to the bankruptcy trustee and to any financial institution impacted by your amendment.
When You Should Speak to a Tacoma Bankruptcy Lawyer
The bankruptcy rules permit debtors to file modifications to their bankruptcy documents any time prior to they receive the final discharge. However, if you need to file an amended Schedule C, and the judge won’t allow it, you need to speak with an experienced bankruptcy attorney from our Tacoma bankruptcy law office.
The Best Way to Amend Bankruptcy Forms in Tacoma
Many things can go wrong in a bankruptcy when you try to do it yourself or with a non-attorney bankruptcy preparer. The best way to correct a mistake on your bankruptcy forms is to not make it in the first place. Amendments can be problematic and if you are unrepresented, it is up to you to figure out the rules and procedures. You can avoid most common mistakes and ensure your bankruptcy goes smoothly by hiring an experienced Tacoma bankruptcy attorney from Northwest Debt Relief Law Firm. Give us a call. We’re here to help.
The post Amending Bankruptcy Forms appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
The purpose of bankruptcy is to provide for an orderly process by which a debtor’s assets can be fairly divided and distributed among creditors. Read More ›
Tags: Chapter 7, Financing, Personal Property Tax, Property Tax, Western District of Michigan
The basic concept of the Life Sucks Budget is that for many of us there is just not enough money to pay the claims of bill collectors AND to pay the really important things of life, like retirement savings, emergency cash accounts, mortgage payments and modest family vacations. Something has to give, and too many of us put ourselves last and pay nothing towards our future needs and dreams so that we can just get by another month without receiving embarrassing phone calls or letters. The Life Sucks Budget is a call to rebalance this relationship and to put our legitimate financial and family needs first.
The fact is, many of you are already on the Life Sucks Budget but you don’t realize it or perhaps you are reluctant to confess that is what you are doing.
Spending 25 years interviewing clients about their financial habits reveals that at least half of the people I meet have no hope of being financially successful. They just want to get through the week and find a little peace in their day. They do not believe that they can win financially, and that mindset has a radical affect on their behavior.
This should come as no surprise. If you were running a 100 meter sprint against Usain Bolt would you train very hard? You already know that no matter how much you train you will never be able to keep up with the world’s fastest man, so why even try?
The evidence of people who think they will ultimately lose in the game of finance is found in their bank statements. The spending pattern is clear, and we review six months of bank statements for every bankruptcy case we prepare.
When you think that the game is rigged and that an average person has no chance of winning, you spend more on restaurants. You enjoy the day. You buy really nice clothes because they feel good and boost your self-esteem. Your cable and cell phone bills are high since you place a premium on being connected. Chances are you lease a car or have a large car payment since you work hard and have “earned” a nice ride. Often your house payment is disproportionate to your income and it drains every last drop of your take-home pay, but it makes you happy to provide a nice place for the family. This is one form of the Life Sucks Budget since you put yourself first and prioritize your current happiness. And, it is also a sign of defeat since, like Thelma & Louise, you are headed over a cliff but you can’t bring yourself to be honest about it.
But something interesting happens when you ask a 25-year-old if they know how much they must save every week over 40 years to become a millionaire.
Do you want to become a millionaire? Yes? Well, do you know how much you have to save every week to get there? No. Guess how much? Think about it. One million dollars. 40 years. 52 weeks a year. Why, that’s 2,080 weeks over 40 years. How much do you have to save each week? $500 per week?
And then you just wait. You listen for their answer. “Want to be a millionaire?” They smile and chuckle. “Sure!” they reply. “Well, how much do you have to save a week? What’s your guess?” And they say things like $1,000 per week.
And when you tell them the answer could be as little as $50 per week depending on how the stock market fairs over the next 40 years and whether they have a 401(k) plan at work that matches their contribution, their eyes open wide. “REALLY? Only $50 per week?”
That can be a life-changing moment. When you realize that you can retire a millionaire by just saving $50 a week, even the person working as a Walmart greeter can become a millionaire if they just save every week. That knowledge changes you. You don’t have to lose. Even if everything in your life goes bad, even if you have a crappy job, even if you get divorced or change jobs or raise stupid kids. You can still win financially if you tap into real financial knowledge and apply a proven system of building wealth. Like getting a 50 meter head start on Usain Bolt, you start to feel you could win. And, you start training with vigor. Because now you believe.
Whether your savings turn into a million dollars or just a lousy $300,000, haven’t you won either way? It’s going to be a lot of money if you apply the system.
The truth is you can retire a millionaire even if you have to file bankruptcy at some point in your life, as long as you keep your fingers off the retirement account when life sucks. You can pay off your home mortgage in 15 years instead of 30 if you don’t buy too much of a home and pay an extra $100 per month. You can have $10,000 in an emergency cash fund if you pay yourself first and make that a priority. But that’ never going to happen if you walk around with an unspoken belief that you are a loser and that the system is rigged against people like you.
This is probably why I think Dave Ramsey, despite all his craziness and oily sales pitches, is about the best money adviser out there. He reprograms your your mind and spirit to understand that you can win financially if you start acting and thinking like a winner.
So instead of acting as if life sucks and engaging in a spending pattern where you maximize today’s wants with a new car or a fancy home and the 500-channel cable expense while barrelling down the highway at maximum speed in Thelma & Louise fashion, stop and think for a moment. Why are you spending money in this fashion? Because you secretly believe that ultimately you will lose in life so you should maximize today’s enjoyment?
If you are going to apply a Life Sucks Budget because you acknowledge that income is limited and that problems just never fully go away, then why not apply an intentional budget that pays off the mortgage, provides for regular family vacations, creates college savings accounts, and leaves a plentiful retirement fund? Life does frequently suck and we are not fully in control of what happens, but we can achieve our financial goals if we make the decision now to pay ourselves first and give what is left over to those never-ending obligations of life.
Photo courtesy of Flickr and Ken Lund.
You have been paying your bills late. Deciding strategically each month which bills get paid. Then it all catches up with you. Maybe you had to miss extra days of work unexpectedly or lost your job. Whatever the reason, you are no longer able to make the monthly minimums. Then the calls start. First, it is one or two calls a week. Then it is every day, multiple calls each day. You waiver between just putting your phone on silence, afraid to answer the next call, to being scared you will miss an important call regarding a job application, your loved ones, or kids’ school. You wish you could just pay off all your bills and stop the calls. However, unless you win the lottery or get the huge promotion, you know that will not happen soon. Should you change your phone number? Block every call you do not recognize? What can you do to stop the creditors from harassing you? Keep reading for the 5 best ways to get creditors to stop calling you.
The post The 5 Best Ways to Get Creditors to Stop Calling You appeared first on Tucson Bankruptcy Attorney.
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