Blogs
Bankruptcy Boom: Why More Young Adults Are Drowning in Debt! Forbes has a very interesting and informative article about young adults, debt and surging bankruptcy filings by young people. The article can be found at https://www.forbes.com/advisor/debt-relief/bankruptcies-on-the-rise-gen-z-millennial-debt/At Shenwick & Associates we can confirm that many young people are filing for Bankruptcy.
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 help individuals & businesses with too much debt!
Many Small Businesses Struggle with COVID-19 EIDL Loan RepaymentRecent reports highlight a growing concern for small businesses that received Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic. According to a Fast Company article, a significant number of these businesses are facing difficulties in repaying their loans. The article can be found at https://www.fastcompany.com/91183555/eidl-loans-covid-19-small-businesses
The Scale of the IssueThe Small Business Administration (SBA) distributed approximately 4 million loans through the EIDL program, totaling $380 billion. As of late 2023, more than $300 billion remained outstanding. Unlike some other pandemic-era financial assistance, EIDL loans are not forgivable and must be repaid in full.Impact on Business OperationsBusinesses with outstanding EIDL loans are experiencing several challenges:
Reduced access to additional creditLimitations on new investments due to existing debtPotential closure or bankruptcy for those unable to meet repayment terms
Our ExperienceAs legal professionals specializing in business debt issues, we've worked with hundreds of companies struggling with SBA EIDL loans. These loans range from $20,000 to $2,000,000. Our observations align with the broader trend:
The majority of our clients have been unable to make payments on their SBA EIDL loansMany have found it impossible to refinance these loansA significant number have either:
Closed their businessesFiled for bankruptcyAttempted to negotiate workouts with the SBA
Additional ComplicationsBusinesses defaulting on SBA EIDL loans face further challenges:
Personal guarantee issuesCancellation of debt tax implications
We have extensive experience counseling clients on these complex matters.Seeking AssistanceIf your business has defaulted on an SBA EIDL loan or you're dealing with personal guarantee issues related to these loans, it's crucial to seek professional advice.Contact Jim Shenwick for assistance:
Jim Shenwick, Esq.Phone: 917-363-3391Email: [email protected]
To schedule a 15-minute telephone consultation, please use our online scheduling tool.We specialize in helping individuals and businesses manage overwhelming debt.
As many of our readers
are aware, Jim Shenwick, Esq., a New York State licensed Bankruptcy attorney
with extensive crypto experience, is representing numerous Celsius customers
who have been sued in preference claw back adversary proceedings.
One of the most
frequent questions we receive is whether clients should settle with Celsius or
defend against the litigation. In this post, we'll explore why settling might
be the better option for most defendants.
Why Settlement May
Be Preferable
1. Legal Basis: While
many clients believe these lawsuits are baseless or unfair, Section 547 of the
Bankruptcy Code actually permits a debtor to file preference claw back actions.
Our law firm has defended these actions across various industries, including
retail, jewelry, garment, and crypto.
2. Cost of Defense:
Defending against these actions can be expensive. Costs include:
- Retaining an experienced attorney
- Participating in mediation (paying half
the cost)
- Engaging in discovery with the debtor
- Potentially going to trial before a
bankruptcy judge
3. Time and Resources:
These cases are often difficult and time-consuming to defend. Legal fees,
mediation costs, and expert witness fees can range from $25,000 to $100,000.
The process could take up to three years to reach trial.
4. Limited Defenses:
Common defenses in preference cases include:
- "Ordinary course of business":
This defense typically does not apply in crypto cases where most parties
invested and withdrew funds in a single transaction.
- "New value": This defense
requires that the customer bought more crypto from Celsius after their initial
withdrawal. We have not encountered this scenario in our cases.
5. Untested Legal
Arguments: Some attorneys and consultants suggest defenses based on Sections
546(c) and 546(g) of the Bankruptcy Code. However, these defenses require a
judge to classify crypto as either a commodity, a security or a swap agreement..
While some government agencies such as SEC and the CFTC have taken these
positions, we are not aware of any bankruptcy case that has made such a
determination.
The Case for Early
Settlement
1. Favorable Terms: In
our experience, earlier settlements in preference litigation often come with
more favorable terms for defendants.
2. Avoiding Escalating
Costs for Both Parties: If the debtor is forced to litigate, try the case and
prevails, settlements after judgment are likely to be significantly more
expensive for defendants then pretrial settlements.
3. Learning from
History: In the Madoff case, defendants who chose to litigate rather than
settle often ended up losing their cases, paying substantial legal fees and
expert witness fees, and having to pay the full judgment amount plus post judgment
interest of 9% per anum.
Our Recommendation
While each case has its
unique facts, we generally recommend that Celsius defendants do the following:
1. Hire an experienced
bankruptcy attorney with crypto knowledge.
2. Work towards
settling their cases as soon as possible and for the lowest amount achievable.
Our firm has
represented many Celsius defendants and has successfully settled numerous cases
on favorable terms for our clients.
Contact Information
If you're a Celsius
defendant looking to discuss your lawsuit or explore settlement options, please
contact:
Jim Shenwick, Esq.
Email:
[email protected]
Phone: 917-363-3391
To schedule a 15-minute
telephone consultation, please use this link: [Schedule a
Call](https://calendly.com/james-shenwick/15min)
Disclaimer: This blog
post is for informational purposes only and does not constitute legal advice.
Each case is unique, and you should consult with a qualified attorney to
discuss your specific situation.
Startups Are Booming--but So Are Bankruptcies. See the article at Inc. https://www.inc.com/chris-morris/bankruptcies-vc-backed-startups-rising-data.html
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 help individuals & businesses with too much debt!
Client Review below:" I contacted Jim seeking counsel as one of the 2000 defendants in the Celsius crypto bankruptcy clawback case. After a few short conversations with him, I quickly knew he was the right person for the job. Once the retainer was paid, Jim dropped everything and fully dedicated himself to my case. In just a matter of a few days, Jim had negotiated a very favorable settlement. I highly recommend Jim if you find yourself in a similar situation and are in need of representation"
My pleasure to help! Thanksfor the review. Jim
Debt Relief Solutions: Chapter 7 Bankruptcy in Salem
If you’re struggling with debt, you might consider bankruptcy as a potential solution. It’s important to understand what bankruptcy entails and explore other available options. While bankruptcy isn’t a permanent fix, it can help you eliminate debt and make a fresh start. For Oregon residents, one of the possible types you might consider is Chapter 7 bankruptcy. That’s why it is important to know what are the steps in Filing Chapter 7 Bankruptcy In Salem Oregon.
Chapter 7 is the most common and simplest type of bankruptcy. However, navigating the bankruptcy process can be complex, making the guidance of an Oregon bankruptcy attorney invaluable. An experienced attorney can determine if you qualify for Chapter 7 and assess which assets, if any, might be subject to liquidation.
Quick Summary:
- Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” allows individuals to discharge qualifying debts like medical bills and credit card debt while typically keeping their property. To qualify, you must pass a means test and complete mandatory credit counseling before filing.
- Consulting with a bankruptcy attorney helps you navigate the process by assessing your financial situation and determining your eligibility for Chapter 7 bankruptcy. After gathering necessary documents and filing your petition, an automatic stay halts creditor actions, and a “Meeting of Creditors” will follow to evaluate your case’s legitimacy.
- The Chapter 7 Trustee oversees your bankruptcy case, checking for non-exempt assets and questionable payments. They handle most hearings and question you to ensure your case is valid, while our experience helps prepare you and negotiate solutions if you have non-exempt assets.
- A Chapter 7 discharge clears most debts and stops creditors from pursuing you, typically granted 60 to 90 days after the “341 meeting of creditors.” If creditors unlawfully try to collect on discharged debts, a lawyer can take action, and despite a bankruptcy lasting 10 years on your record, you can rebuild your credit and achieve financial stability.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often called “straight bankruptcy” or “liquidation bankruptcy,” is the most common type of bankruptcy filed by individuals. It allows individuals or couples to discharge qualifying debts, such as medical bills and credit card debt, permanently. Most people are able to keep their property, including their car, clothing, household items, work tools, furniture, and even their home
Chapter 7 Eligibility
To qualify for Chapter 7 bankruptcy, you must meet specific eligibility requirements. First, you’ll need to pass the means test, a financial assessment that determines if you have sufficient disposable income to repay your debts. If your income is below a certain threshold, you may qualify.
Additionally, before filing, you must complete a mandatory credit counseling session within the previous 180 days. This counseling provides information about bankruptcy and available alternatives.
The Bankruptcy Consultation
Navigating bankruptcy can be overwhelming, so consulting with an experienced bankruptcy attorney is essential. A lawyer will offer personalized advice based on your financial situation and guide you in choosing the best option.
During a bankruptcy consultation, you’ll discuss your financial issues in detail. Be ready to provide information about your income, expenses, debts, and assets. Your attorney will review your finances, determine if you qualify for Chapter 7 bankruptcy, and explain the potential impacts of filing.
Evaluating Your Eligibility for Chapter 7
To qualify for Chapter 7 bankruptcy, you must meet specific financial criteria. During your consultation, your attorney will conduct a preliminary means test to determine if you may be eligible. This involves calculating your disposable income to see if it falls below the allowed threshold. Keep in mind that eligibility is based on various factors, and your attorney will provide a comprehensive assessment.
How Chapter 7 Bankruptcy Works
To initiate your Chapter 7 bankruptcy case, you’ll need to gather specific documentation. This paperwork provides a comprehensive financial snapshot and is crucial for the bankruptcy trustee’s evaluation. Common documents include income statements, tax returns, property deeds, vehicle titles, and a detailed list of debts. Your bankruptcy attorney will guide you through the specific requirements.
After filing a Chapter 7 petition, an automatic stay takes effect, halting all creditor actions such as lawsuits, wage garnishments, and collection calls. The Court will notify your creditors of the bankruptcy filing.
Approximately 30 to 45 days later, the Trustee will conduct a “Meeting of Creditors,” where you will be questioned under oath by both the Trustee and your creditors. Within 10 days following this meeting, the Trustee will report to the Court on the legitimacy of your bankruptcy and whether it appears to be an abuse of the system.
Responsibilities of the Trustee
The Chapter 7 Trustee manages your bankruptcy case for the court. Their role is to check for any non-exempt assets or questionable payments that might be reversed to help pay your debts. Appointed by the US Trustee’s office, they handle the majority of bankruptcy hearings, especially since most cases are “no asset” cases.
During your hearing, the Trustee will ask you questions to ensure everything is in order. With our extensive experience working with local Trustees, we can anticipate their questions and prepare you thoroughly. If you have non-exempt assets, we can negotiate with the Trustee to find a solution that may allow you to keep your property by making payments.
Chapter 7 Discharge
A successful Chapter 7 discharge releases you from personal liability for most debts and stops creditors from pursuing collection actions. In over 99% of Chapter 7 cases, debtors receive a discharge about 60 to 90 days after the initial “341 meeting of creditors.” However, a discharge may be denied if:
- You fail to keep or submit required financial records.
- You don’t explain asset losses or transfers adequately.
- You commit perjury or disobey court orders.
- You fraudulently transfer, conceal, or destroy property.
- You don’t complete required courses.
If creditors attempt to collect on discharged debts, they are breaking the law. A determined lawyer can sue them and recover damages, reinforcing that bankruptcy is meant to provide relief from aggressive collection efforts.
Although bankruptcy stays on your record for 10 years, there are ways to rebuild credit and achieve financial stability. Many people even see an improvement in their credit score soon after filing. A bankruptcy attorney in Salem Oregon can guide you through essential steps to start rebuilding your financial future.
Why Do I Need a Bankruptcy Attorney When Filing Your Chapter 7 Claim in Salem Oregon?
While it’s technically possible to file for Chapter 7 bankruptcy without an attorney, it’s strongly recommended to have legal representation. Here’s why:
- Complex Legal Process: Bankruptcy law is intricate. An attorney understands the nuances and can ensure your case is handled correctly.
- Asset Protection: Determining which assets are exempt from liquidation can be challenging. An attorney can help protect your valuable possessions.
- Creditor Harassment: Bankruptcy provides immediate relief from creditors. An attorney can enforce the automatic stay and protect you from harassment.
- Discharge Eligibility: Not all debts are dischargeable. An attorney can help determine which debts can be eliminated.
- Negotiation and Settlement: In some cases, an attorney can negotiate with creditors or explore settlement options.
- Peace of Mind: Having an experienced attorney by your side can alleviate stress and provide reassurance throughout the process.
By hiring a bankruptcy attorney, you increase your chances of a successful outcome and minimize the risk of making costly mistakes.
Your Trusted Legal Partner in Chapter 7 Bankruptcy
When debt becomes overwhelming, filing for bankruptcy might be a viable solution. Understanding the specifics of filing Chapter 7 Bankruptcy in Salem, Oregon, is crucial if you’re considering this option. To simplify the process and get personalized guidance, consult a bankruptcy lawyer in Oregon.
If you’re struggling with overwhelming debt and unsure of your options, the attorneys at Northwest Debt Relief Law Firm are here to help. We believe everyone deserves a fresh start and are committed to guiding you back to financial stability.
Our Oregon bankruptcy lawyers are ready to answer your questions and provide you with peace of mind. We have offices in Salem, Portland, Medford, and Eugene, and can assist you with your Chapter 7 or Chapter 13 needs.
Let us ease the stress and burden of your debt, contact us now for free debt solution consultations.
I’ll be gone for two weeks
I’m leaving for the longest vacation since I became a Virginia lawyer in 1985. If you want to talk to a qualified bankruptcy lawyer right away, I can suggest these two. Michael Sandler, in Woodbridge. Or Ashley Morgan, in Herndon.
I’d like to talk to you the week of August 26
If you can wait, [email protected] will get in touch with you on Thursday August 22 or Friday August 23 to schedule a Zoom appointment for the following week. For the most complete consultation, please fill in my Be Happy form. When you send in the Be Happy, Vanessa will give you priority scheduling as soon as I get back.
We’re going to Paris and Ruoen.
My wife’s novel begins in medieval Paris
My wife’s PR business did not survive Covid. So she’s writing a novel. Part of it takes place in Paris and Ruoen, so we are going to visit. It’s right after the Olympics, so it should be less crowded and maybe more fun.
For most people, bankruptcy works
Here’s more info on the five ways bankruptcy gives you a new start.
The post I’m out until August 26 appeared first on Robert Weed Bankruptcy Attorney.
Celsius Bankruptcy Claw Back Adversary Proceedings in SDNY Bankruptcy Court Settlement UpdateJim Shenwick, Esq. is proud to announce that he just settled another Celsius Bankruptcy Claw Back Adversary Proceedings in the SDNY.The client had been sued for over $700,000. Based on a review of Exhibit A to the Complaint, which listed the transactions to be clawed back, we discovered that Exhibit A overstated the transactions in the relevant 90-day period, the cryptocurrency valuation was incorrect, and the client had a "New Value" defense.
When all was settled, the client paid back a small percentage of the $700,000 sought.Clients who are being sued for preference clawback's 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 help individuals & businesses with too much debt!
Celsius Bankruptcy Claw Back Adversary Proceedings in SDNY Bankruptcy Court
Celsius Network LLC, the crypto company, filed for Chapter 11 bankruptcy. Pursuant to their confirmed Chapter 11 plan, they have commenced 2,000 adversary proceedings in the Southern District of New York, seeking to claw back monies withdrawn by Celsius customers 90 days prior to the bankruptcy filing or from April 14, 2022, through July 13, 2022 (the “Preference Period”).The 2,000 lawsuits are being brought by ASK LP (Debtor’s preference litigation counsel)Jim Shenwick, Esq. has defended over 100 adversary proceedings for various causes of action, including preferences and fraudulent conveyances. He is familiar with cryptocurrency and has a working relationship with ASK LP.Jim Shenwick was recently retained by a client to defend against a Celsius lawsuit seeking to claw back over $200,000 withdrawn from Celsius prior to the bankruptcy filing. We have commenced settlement negotiations and are optimistic about a very favorable settlement for the client.We have also been approached by another former Celsius customer who was sued in a clawback action.Clients who have been sued or have questions about the clawback lawsuits are advised to contact Jim Shenwick as soon as possible to discuss their options or to seek representation in these cases.Jim Shenwick can be reached at 917 -363-3391 or at [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15min
Commercial Chapter 11 Bankruptcies see a 34% increase in the first half of 2024. See https://www.conchovalleyhomepage.com/news/national-news/commercial-chapter-11-bankrupcies-see-a-34-increase-in-the-first-half-of-2024/amp/
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 help individuals & businesses with too much debt!
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.