Blogs
There are two particular situations when we encourage Wynn at Law, LLC real estate clients to do as much home-buying due diligence as possible: Foreclosures and Relocations.
- Foreclosures: We don’t hear about as many foreclosures as we did at the start of the decade, but they’re still out there in Southeast Wisconsin. Walworth County – at 1 home in 2,060 in foreclosure – is below the state average (1 in 2,700) and sandwiched between one of the busiest counties for August 2017 foreclosure activity (Rock Co., 1 in 1,334) and one of the lightest (Racine Co., 1 in 4,105). That data is from realtytrac.com, and indicates that Elkhorn and Walworth communities currently have the highest foreclosure ratios in Walworth Co.
- Relocations, or RELOs: As both the job and real estate markets continue to improve, workers are on the move again. When you see ‘RELO documents required’ in a description of a property, you will have paper work from a relocation company to sign. This usually means the home is an inventory home of a relocation company that has bought out the relocated seller. Corporations use relocation companies to get their employees to their new destinations ASAP. These corporations contract with RELO companies – or sometimes a RELO department within a large realty firm – to buy these homes and turn around and resell them. Just like the bank owning a foreclosed home, a RELO company doesn’t know the property the way a private seller does.
In either case of buying, you should have an attorney on board as early as possible in the home-buying process (see related article). You should inspect the property top to bottom (another previous article), see it in multiple lights, and do your best to glean as much information as you can from public records.
Also, be aware that even though the RELO company and a bank foreclosing on a home have a vested interest in getting a property sold, they may or may not be more flexible on price, depending on the market. One such situation is the seller’s market we’re in. Another, in a RELO context, is if the RELO firm guaranteed a buyout of the home – a GBO. An attorney can be a strong negotiator in your corner, regardless of the market or status of the property.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Andy Dean, used with permission.
The post Despite the waning of foreclosures, it is still ‘Buyer Beware’ appeared first on Wynn at Law, LLC.
Bankruptcy is a debt relief process that enables consumers with insurmountable debt
loads and financial struggles to gain control of their economic health.
Achieving this goal and obtaining a brighter financial future will depend
on the Chapter of bankruptcy filed under. For example:
- Chapter 7 bankruptcy involves the liquidation of non-exempt assets to pay at least some percentage
of debt owed to existing creditors in order of priority. Because many
Chapter 7 cases are no-asset cases, some creditors may not receive any
payment at all prior to discharge.
- Chapter 13 bankruptcy allows individuals with sufficient income to restructure and consolidate
debt into a repayment plan over the course of three to five years, during
which they will make a single payment to a bankruptcy trustee. This payment
will then be dispersed to creditors based on priority. At the end of a
repayment plan, remaining debt on unsecured debts, such as credit card
debt, will be discharged.
In both Chapter 7 and Chapter 13 bankruptcy cases, money for unpaid debts
does come from somewhere – either a liquidation of assets or available
disposable income. Because there are other fees and expenses associated
with filing bankruptcy – including filing and attorney fees and
credit counseling or financial management courses – we often hear
concerns as to where debtors can obtain the funds necessary to address
these costs and other financial obligations. By closely reviewing our
clients’ unique situations, our Dallas bankruptcy attorneys at Allmand
Law Firm, PLLC can help them explore ways to free up finances when necessary.
Some of these options may include:
- Tax refunds received prior to a bankruptcy filing can be used strategically
and beneficially without introducing new legal complications. By waiting
to spend a tax refund, it may be considered as part of your bankruptcy
estate, which can be used to satisfy creditors. Refunds can also be used
with guidance from an experienced attorney who can help you obtain exemptions,
used the refund toward filing or attorney fees, and may necessary payments
toward necessities and utilities. - Credit card payments, or the money you would have paid toward new credit
card debt, can also be used wisely prior to or during bankruptcy. If you
plan on filing, it is best to
stop using your credit cards so that you do not create new debt, or subject yourself to scrutiny for
racking up debt with hopes of it being discharged once a bankruptcy is
finalized. By limiting credit card use before filing, you can free up
necessary funds and later benefit from the discharge of debts. - Consumer protection actions may also allow consumers to secure additional
funds when their rights have been violated by creditors who failed to
abide by the Fair Debt Collection Practices Act. Under the FDCPA, creditors
are prohibited from using a number of tactics when attempting to collect
from consumers who are behind on payments, including excessive calls and
other forms of harassment. When successful, these claims can allow consumers
to obtain as much as $1,000 when creditors harass them, as well as other
damages and attorney fees. - Managing expenses may be easier said than done, but when you are considering
bankruptcy, every dollar saved can make the difference. Take a look at
your financial situation, even with the help of an attorney, to see where
you can cut costs and save money that can be used toward your bankruptcy
and other necessary expenses. You might find that saving here and there
can quickly add up and provide the funds you need. Taking a serious approach
to budgeting and spending can also prove beneficial when during and after
your bankruptcy case as you begin to rebuild your credit and gain control
over your finances.
Aside from these options, some individuals also have options of seeking
low-cost legal services, provided that they meet qualifying criteria,
or ask friends and family for assistance if needed. Ultimately, the best
thing you can do when considering bankruptcy and how you can initiate
and navigate the process is to work with experienced attorneys like those
at Allmand Law Firm, PLLC.
Led by Board Certified Bankruptcy Specialist Reed Allmand (Texas Board
of Legal Specialization), our legal team can help you learn more about
paying for bankruptcy and how you can benefit from the automatic stay
and debt discharge. For a FREE financial empowerment session,
contact us today.
The post Where Does Bankruptcy Money Come From? appeared first on Allmand Law.
Crain’s New York recently reported that based upon a bankruptcy filing by a company (Hypnotic Taxi LLC) owned by Evgeny “Gene” Friedman, an auction held September 18th, 2017 the answer is about $186,000 . Maltz Auctions was the auctioneer, at the LaGuardia Marriott Hotel, of 46 medallions that were assets of the bankruptcy estate in In re Hypnotic Taxi LLC. This case involved medallion owner Evgeny “Gene” Friedman, who once owned 800 medallions, resulting from a foreclosure by Citibank and tax fraud charges.
With the 6% buyer premium owed to Maltz, the purchase price was about $198,000 per medallion or $9.1M in total for all 46 medallions.
According to Crain’s New York, the winning bidder was out of state hedge fund MGPE, Inc. A hearing to confirm the results of the sale will be held in the U.S. Bankruptcy Court for the Eastern District of New York on September 25th. Accordingly, based on the auction results for the 46 medallions at the Maltz auction, the value of medallions appears to be $198,000. The banks that have financed NYC medallions may argue that one auction (albeit of 46 medallions) is not the indicator of true value, others may argue that yesterday’s auction results are a true indicator of medallion value. Jim Shenwick.
BEWARE HIGH-VOLUME TAX HELP ADVERTISERS
Evening TV commercials offering to help taxpayers with tax debts.They promise to help you solve your delinquent tax problems. But are they legit?
High volume advertisers typically collect hefty retainer fees from a large number of burdened taxpayers, make quick, superficial efforts to protect the taxpayers, often accomplish nothing – then change their names and come back the next week with more high-volume advertising. Some evenings five or six different advertisers make their pitch on local T.V.
BEWARE HIGH-VOLUME TAX HELP ADVERTISERS
Evening TV commercials offering to help taxpayers with tax debts.They promise to help you solve your delinquent tax problems. But are they legit?
High volume advertisers typically collect hefty retainer fees from a large number of burdened taxpayers, make quick, superficial efforts to protect the taxpayers, often accomplish nothing – then change their names and come back the next week with more high-volume advertising. Some evenings five or six different advertisers make their pitch on local T.V.
Here at Shenwick & Associates, we are continuing to monitor litigation regarding the taxi medallion industry. Earlier this year, the Taxi Medallion Owner Driver Association (TMODA)along with credit unions that invested in taxi medallions and other plaintiffs commenced an action in the U.S. District Court for the Southern District of New York (federal court) against New York City and the Taxi and Limousine Commission (TLC), claiming that the TLC’s rules deny taxi drivers equal protection and due process because Uber and Lyft drivers aren’t required to comply with the same TLC regulations as medallion owners. That action was dismissed in March, finding that the difference between taxis and alternative services justified the differences in the rules. That case has been appealed to the Second Circuit Court of Appeals and scheduled for argument on October 24th, 2017.
In April, the TMODA sent a letter to Governor Cuomoasking for a moratorium on medallion foreclosures. In May, the TMODA filed an Article 78 proceeding in New York County Supreme Court (which included two taxi drivers as co–plaintiffs), seeking to compel the TLC “to establish and enforce standards to ensure . . . yellow medallion taxicabs, are and remain financially stable.” A hearing in that special proceeding will be held on October 24th, 2017.
We will continue to monitor taxi medallion litigation and provide readers of our e-mails and blog with updates. If you have an underwater medallion or other debtor and creditor and bankruptcy questions, please contact Jim Shenwick.
Bankruptcy is a significant legal endeavor that can provide substantial
benefits to individuals and families struggling financially. Thanks to
the automatic stay and discharge of debts provided by consumer bankruptcy
– including Chapter 7 and Chapter 13 bankruptcy – those inundated
by insurmountable debt loads and financial concerns can secure the fresh
start and cleared path needed to obtain a brighter future.
While
bankruptcy has many benefits when it comes to debt relief,
foreclosure defense, and financial stability, consumers considering the process often have
many concerns and fears about their future. As bankruptcy lawyers who
serve residents across the Dallas – Fort Worth area and beyond,
our team at Allmand Law Firm, PLLC has heard them all – especially
those related to public records of bankruptcy filings.
It is important to understand that bankruptcy filings are public, which
means that records of your bankruptcy case can be obtained by the general
public as part of publically available court documents. However, it is
also important to consider that just because bankruptcy records are public,
does not mean that everyone will see them or even care to look for them.
Bankruptcy & Your Future
Bankruptcy comes with many myths and misconceptions regarding its impact
on one’s future. Under the U.S. Bankruptcy Code – which was
intended to help consumers struggling with debt, not punish them –
bankruptcy is designed to NOT be a ruinous or permanent scar that hinders
your future. Instead, it’s effects are temporary and how it affects
your ability to obtain credit, loans, and other forms of financial transactions
not only depends on unique circumstances, but also becomes easier over
time as you establish better credit.
For the most part, the general public will not care about viewing your
bankruptcy records. Records of your filing – usually in the form
of information provided on a credit report – will largely only be
of use to creditors and lenders who extend loans and lines of credit based
on your financial background. Although a bankruptcy filing can remain
on your credit report for up to 10 years (or less in some cases), you
can still obtain credit and loans and improve upon your credit score.
In previous blogs, we have gone into depth about
bankruptcy’s effects on credit and how filers can
rebuild their credit after bankruptcy.
A Financial Fresh Start
Concerns about privacy and bankruptcy filings often stem from feelings
of shame and embarrassment. While understandable, consumers should take
comfort in knowing that although bankruptcy records are technically public,
they will largely remain private and only used by creditors who you provide
content to pull your credit report, creditors listed in your case, and
on any applications or instruments where you choose to personally disclose
the information.
What’s more important than worrying about your past and previous
financial struggles is your new financial fresh start. With bankruptcy,
you have the opportunity to gain control of your finances, make payments
toward pre-existing debt that can allow you to save your home and property,
and / or benefit from a discharge that frees you from insurmountable debt
loads. With this cleared path, you can better navigate toward a brighter
financial future, and one in which you can expound upon the benefits of
bankruptcy.
Allmand Law Firm, PLLC addresses concerns like these and many others on
a daily basis when clients come to use during their times of need. If
you have questions about bankruptcy, your current situation, and how our
legal team can help you explore options for debt relief,
contact us for a FREE financial empowerment session!
The post Who Can View My Bankruptcy Record? appeared first on Allmand Law.
By WINNIE HU
Owning a yellow cab has left Issa Isac in deep debt and facing a precarious future.
It was not supposed to turn out this way when Mr. Isac slid behind the wheel in
2005. Soon he was earning $200 a night driving. Three years later, he borrowed
$335,000 to buy a New York City taxi medallion, which gave him the right to operate
his own cab.
But now Mr. Isac earns half of what he did when he started, as riders have
defected to Uber and other competitors. He stopped making the $2,700-a-month
loan payment on his medallion in February because he was broke. Last month, it was
sold to help pay his debts.
“I see my future crashing down,” said Mr. Isac, 46, an immigrant from Burkina
Faso. “I worry every day. Sometimes, I can’t sleep thinking about it. Everything
changed overnight.”
Taxi ownership once seemed a guaranteed route to financial security, something
that was more tangible and reliable than the stock market since people hailed cabs in in good times and bad. Generations of new immigrants toiled away for years to earn enough to buy a coveted medallion. Those who had them took pride in them, and viewed them as their retirement fund.
Uber and other ride-hail apps have upended all that.
Just as homeowners faced ruin when housing markets sank, struggling cab
owners in Chicago, Boston, San Francisco and other cities are now facing foreclosure
and bankruptcy. Many took out loans to pay for taxi medallions, counting on
business that has instead nose-dived amid fierce competition. They are falling
behind on loan payments, being turned away by lenders and stand to lose not only
the medallions that are their livelihoods but also their homes and savings.
Nowhere is the crisis more dire than in New York, which has the largest taxi fleet in
the country. Medallions now sell for a fraction of the record $1.3 million price in
2014, and in many cases, are worth far less than what their owners borrowed to buy
them. Even if these owners sell their medallions, they still owe hundreds of
thousands of dollars — far more than in many other cities where medallion prices
were lower to begin with.
In an unprecedented fire sale of medallions, up to 46 of them are expected to go
on the auction block later this month as part of bankruptcy proceedings against taxi
companies affiliated with an embattled taxi mogul. While the city has previously held
auctions to sell a limited number of new medallions — about 1,800 since 1996 — this
is believed to be the first auction to dispose of foreclosed medallions, according to
city officials.
While the auction has drawn attention to the precipitous fall of the once-mighty
taxi industry, it does not reflect the hardship — and heartbreak — of individual
owners like Mr. Isac. It is their stories that often get lost in the larger debate over
new technology and commutes, and tell of the human cost of the city’s rapidly
evolving transportation landscape.
Since 2015, a total of 85 medallions have been sold as part of foreclosure
proceedings, according to city records. In August alone, 12 of the 21 medallion sales
were part of foreclosures; the prices of all the sales ranged from $150,000 to $450,000 per medallion.
Many more taxi owners say they do not know how much longer they can hold
on. Didar Singh, 65, who took out a loan to buy two medallions for a total of $2.6
million in 2013, said he can only afford to pay the interest — $4,816 a month — on
the loan. As it is, his taxis do not bring in enough to cover his expenses, forcing him
to rely on savings and help from his children.
Sohan Gill once saw his medallion as such a good investment — ”better than a
house” — that his wife bought two more in 2001. Now they cannot find enough
drivers for the cabs because business is so bad. And Mr. Gill, 63, who had retired
from driving, had to go back on the road. “How many more years am I going to drive
to take care of these medallions?” he asked.
Gone are the years when taxi medallions steadily rose in value, largely because
there was a limited supply of them. The city controls the number of medallions —
currently capped at 13,587 — to prevent an oversupply of cabs like what occurred in
the 1930s when concerns over congestion, reckless driving and cut-rate fares
prompted the city to step in. The last time there was an auction for medallions was
when the city sold 350 new medallions in 2014 at the height of the market,
generating $359 million in revenue.
But today, yellow cabs are dwarfed by cars working for ride-hail apps, which
face far fewer regulations. Taxi owners and their supporters complain that their
competitors do not have a similar cap on their cars, and are not subject to strict rules
on taxis that cover fares, vehicle equipment and access for disabled people, among
other things.
There are more than 63,000 black cars providing rides in the city through five
major app services: Uber, Lyft, Via, Gett and Juno. Of those, about 61,000 cars are
connected with Uber, though they may also work for the other app services, too.
“We are not against competition, we are not against technology, but we want to
compete fair and square,” said Nino Hervias, 58, a taxi owner and spokesman for the
Taxi Medallion Owner Driver Association, which represents about 1,500 individual
taxi owners, most of whom are immigrants.
Taxi owners have sought to sue the city over what they see as an unfair playing field, with little success. Earlier this year, a lawsuit filed against the city and taxi
commission by taxi owners, trade groups and credit unions was dismissed by a
federal judge who found that they had failed to show they were denied due process
or equal protection.
Mr. Hervias and another driver have also taken legal action, known as an Article
78 proceeding, to compel the city and its regulators to establish and enforce
standards that will make sure that all licensed cars — including yellow cabs — “are
and remain financially stable.” The case is pending in State Supreme Court in
Manhattan, with a court appearance scheduled in October.
Yellow taxis made an average of 277,042 daily trips and collected $4 million in
fares per day in July, down from 332,231 daily trips and $4.9 million in fares the
year before, according to city data.
Allan J. Fromberg, a spokesman for the taxi commission, said it had taken a
number of steps to help struggling taxi owners, such as lifting a requirement for
individual owners to personally drive their taxis at least 150 shifts a year, which was
not only a burden for older people but also limited the pool of potential buyers for
medallions. It has also supported laws that have eased restrictions on who could buy
the medallions and significantly lowered the transfer tax on medallion sales.
The commission has also provided financial incentives to defray the cost and
maintenance of handicap-accessible cars, Mr. Fromberg said. And it has created a
pilot program that is intended to help fleet owners attract more drivers; the program
allows drivers to pay a percentage of their earnings during a shift to lease the cab, in
lieu of a flat fee up front that puts drivers under pressure and leaves them in the hole
if they do not earn enough back.
But for many taxi owners, such measures have not been enough.
Mr. Isac is again leasing yellow cabs since he no longer has his own medallion.
At times, he picks up only one passenger an hour. Even so, he is not ready to give up
on yellow cabs yet.
“I’m still driving a yellow taxi because I want them to come back,” he said. “I don’t want to see yellow cars disappear from the streets.”
Uppkar Thind, 46, an immigrant from India, said he now has to drive 11 to 13
hours a day and can no longer take time off if he wants to break even. He is paying
off a medallion that he bought for $357,000 in 2006 with money borrowed from his
relatives and a credit union.
“I worked hard,’’ he said. “I achieved my American dream and it turned into a
nightmare.”
Copyright 2017 The New York Times Company. All rights reserved.
When filing a Chapter 7 and 13 you must:
1. Reside, be domiciled, or have property or a place of business in the United States (U.S.). A person does not have to be a U.S. citizen to file, nor live in the U.S., if they have assets in the U.S.
2. You can file if you do not have a prior Chapter 7 discharge or it has been more than 8 years, or 6 years since a Chapter 13 discharge.
The post Whether to file a Chapter 7, 13, or 20? appeared first on Tucson Bankruptcy Attorney.
If you are considering bankruptcy or have plans to file bankruptcy, getting
prepared ahead of time can affect the outcome of your case and your financial
future. At Allmand Law Firm, PLLC, we know that failing to prepare or
taking the wrong steps can significantly jeopardize the success of a filing.
This is why we do all we can to educate our clients about the journey
ahead and their rights, and to provide them with all the information,
assistance, and resources to make the process run as smoothly and sufficiently
as possible.
We have seen how many individuals struggling with debt have made mistakes prior to
bankruptcy filings – including some with disastrous consequences. Here are
a few things to avoid before filing bankruptcy:
- Neglecting to file tax returns – Your tax returns are important and are required as part of your petition
and schedules (filing paperwork). They are important in helping satisfy
back income tax claims. If tax returns are not filed up to date, your
case could come to a standstill. - Providing false information – When you decide to begin the filing process you will be required to
submit financial data to your trustee or attorney that will be reviewed
by the court. Your information should be complete, accurate and honest.
Failure to do so may incur criminal prosecution, case dismissal or debt
discharge not being granted. - Changing titles or moving assets – If you do this right before filing, it may look as if you are attempting
to hide assets. You may want to wait a certain period before filing. - Running up new debt – Basically, if you rack up a ton of debt within 90 days of filing, it
may not get discharged. In this case, fraud would have to be proven by
the creditor. Meaning, maxing out creditors because you know you will
file bankruptcy could mean you would be liable in the end. - Choosing to pay certain people or creditors over another – In some cases, a bankruptcy filing may undo a payment you made depending
on the circumstances. - Hiding assets or failing to report an asset you anticipate on receiving
(will, trust, lawsuit settlement, etc.) – You can review your options with a Dallas / Fort Worth bankruptcy attorney
prior to filing to learn how to protect such assets legally. - Not working with a lawyer – While there is no law requiring filers to have an attorney, working
with an experienced lawyer can make the difference in bankruptcy proceedings,
which are known for their complexities and for the weight they have on
one’s future. With guidance and counsel from seasoned legal professionals,
you can ensure you are taking the rights steps every step of the way.
Our Dallas / Fort Worth Bankruptcy lawyers our passionate about helping
clients secure a brighter financial future. If you have questions about
getting started or how we can help improve your particular situation,
contact us for a FREE financial empowerment session. Our lawyers are available to
help you explore your debt relief options – including
Chapter 7 and
Chapter 13 bankruptcy – as well as other ways to defend against
foreclosure or gain control of your finances.
The post 7 Things to Avoid Prior to Filing Bankruptcy appeared first on Allmand Law.
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.