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See the post at https://www.cnn.com/2023/02/27/politics/us-student-loan-debt-timeline/index.htmlJim Shenwick, Esq. 917 363 3391 [email protected]At Shenwick & Associates we help people and businesses with too much debt!Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min
Question: What do Akorn Pharmaceuticals and the Corner Bakery Café have in common? Answer: Both recently declared bankruptcy. The economic uncertainty brought on by the global pandemic has led to an increase in bankruptcy filings, with companies and individuals alike struggling to stay afloat. Meanwhile, the Chicago Loop Alliance says office occupancy is only about half+ Click Here For Read More
The post With bankruptcies expected to surge, here are 5 tips to stay solvent appeared first on David M. Siegel.
Question: What do Akorn Pharmaceuticals and the Corner Bakery Café have in common? Answer: Both recently declared bankruptcy. The economic uncertainty brought on by the global pandemic has led to an increase in bankruptcy filings, with companies and individuals alike struggling to stay afloat. Meanwhile, the Chicago Loop Alliance says office occupancy is only about half+ Click Here For Read More
The post With bankruptcies expected to surge, here are 5 tips to stay solvent appeared first on David M. Siegel.
Falling behind on federal student loans can lead to other major financial problems according to CNBC
Falling behind on federal student loans can lead to other major financial problemsA story on CNBC reports that "more than 80% of borrowers who experienced default stated that they’d faced at least one additional consequence as a result. The most common impact was a drop in their credit score (62%) followed by being subject to collection fees (47%) and losing eligibility for future federal financial aid (37%)."
The story can be found at https://www.cnbc.com/2023/02/22/falling-behind-on-student-loans-can-lead-to-other-financial-problems.html
We help individuals & businesses with too much debt!Jim Shenwick, Esq 917-363-3391 [email protected]
The New York Post is reporting that “A growing number of office landlords are defaulting on loan payments as the rise of remote work causes more corporate tenants to rethink long-term leases". The story can be found at https://nypost.com/2023/02/21/office-landlord-debt-defaults-rise-as-remote-work-takes-hold-report/?utm_source=gmail&utm_campaign=android_nyp If New York City office landlords are defaulting on their mortgages, should commercial tenants in New York City with surplus space due to remote work or the recession also be asking for concessions such as a reduction in base rent or additional rent or seek to exit or terminate their leases? At Shenwick & Associates, we believe they should be, and we have helped many commercial tenants surrender, exit, or terminate their leases. We also work with their good guy guarantors to reduce or eliminate their exposure.We recently helped a garment center company surrender their lease on very favorable terms and the post can be found at https://shenwick.blogspot.com/2023/01/office-lease-closing-termination-or.htmlJim Shenwick Esq. has office leasing, bankruptcy & workout experience and an LLM in Taxation from NYU Law School. "Jim Shenwick, Esq helps individuals & businesses with too much Debt!"
Relief of Indebtedness Income and Workouts under Section 108 of the Internal Revenue Code.Shenwick & Associates performs many workouts for clients, and one point that is often overlooked during negotiations is relief of indebtedness income. Section 108 of the Internal Revenue Code provides that income from discharge of indebtedness is income to the Debtor, unless otherwise provided for in that section. The following example illustrates the point: If a debtor owes a creditor $100,000.00 and the creditor agrees to accept $50,000.00 as payment for that debt, the debtor has been enriched by the sum of $50,000.00 and the Debtor must report $50,000 of income on its tax return.Answers to many relief of indebtedness income questions are provided below:
- Question: Do creditors really report relief of indebtedness income to the IRS?
Answer: Yes they do and the income is reported on IRS Form 1099-C
- Question: Which creditors report income to the IRS?
Answer: All banks and financial institutions do. Landlords, hospitals and trade vendors generally do not report relief of indebtedness income, although they should. 3. Question: Is the income ordinary income or capital gain? Answer: Sadly, it is ordinary income. 4. Question: Is relief from indebtedness income recognized by the guarantor of a debt? Answer: The IRS generally holds that a guarantor (whether or not the primary obligor has defaulted and the guarantor has become liable for the indebtedness) does not realize relief of indebtedness income on release of a liability. IRC 108(e)(2)5. Question: Do I have to recognize relief of indebtedness income if I file for bankruptcy? Answer: No. See section 108(a)(1)(A) of the Internal Revenue Code. This is why many debtors elect to file for bankruptcy rather than do a workout.6. Question: If I am insolvent (my Liabilities exceed my Assets also known as the Balance Sheet test) do I have to pick up relief of indebtedness income? Answer: No. See section 108(a)(1)(B) of the Internal Revenue Code7. Question: What if I am a member, partner, or shareholder of a company that defaults on an unpaid debt? Answer: A member, partner, or shareholder of an LLC, partnership, or S corporation (a pass-through entity) must report income unless an exception applies.
Clients or their advisors with questions regarding relief of debt income should contact Jim Shenwick, Esq. [email protected] 917 363 3391 "We held individuals and businesses with too much debt!"
Judge Wilde's, a Bankruptcy Judge Revisits the Rent Cap Calculations allowed a Landlord under Section 502(b)(6) of the Bankruptcy Code. The article can be found at jdsupra at https://www.jdsupra.com/legalnews/sdny-revisits-rent-cap-calculations-a-8004543/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link
Jim Shenwick, Esq. [email protected] 917 363 3391"We held individuals and businesses with too much debt!"
Garrett L. Brodeur at Kostelanetz has published a very informative article on crypto and related tax and bankruptcy issues. The article can be found at https://kflaw.com/crypto-in-bankruptcy-tax-apocalypse-for-celsius-customers/The article touches on many important bankruptcy and tax issues related to cryptocurrency in the Celsius case and other crypto cases. Jim Shenwick, Esq. 917-363-3391 [email protected]
You were sued on a collection lawsuit and managed to file a written response with the Clerk of the Court within 30 days. Congratulations, you have stopped the entry of a default judgement.
But now what? What is your plan of action after filing a response to the lawsuit?
The next phase is to get answers, especially if you do not agree with the creditor’s claim.
- They say you owe a large medical debt, but didn’t health insurance pay a large portion of the bill?
- Did the hospital forget to file a medical insurance claim?
- Did the credit card lender give you credit for all the payments you made?
- What is the interest rate on the contract?
- Was the contract written or verbal?
Collection agencies don’t like to answer questions. They are focused on filing lawsuits, obtaining judgments by default, and garnishing paychecks.
They don’t answer questions about why you owe the money, unless you make them provide anwers.
INTERROGATORIES:
Any party may serve upon any other party written interrogatories to be answered by the party served. Nebraska Trial Rule §6-333
Interrogatories are written questions you can make the other side answer. There is no special format you must use, but there are some guidelines to follow to make the process work:
- Mail the written questions to the attorney representing the collection agency.
- In the memo of the letter, write the work Interrogatories and reference court Rule 33.
- Advise the other side that they have 30 days to respond to the Interrogatories.
- Ask specific questions.
- Ask one question at a time.
- Number each question.
- Ask for a list of all persons having knowledge of the lawsuit, their address and phone numbers.
- Ask for a list of the persons they will call as witnesses at trial.
- Ask for a list of all documents they will introduce at trial.
- Request a list of all charges on the account.
- Request a list of all payments made on the account.
Lawsuits are your opportunity to finally get answers. Make them answer questions.
Image courtesy of Flickr and womencandoit
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