Blogs
Restaurant owners be careful about not paying your employees! News 12 has an article titled New Rochelle restaurant owner sentenced for not paying his employees. The article can be found at https://bronx.news12.com/new-rochelle-restaurant-owner-sentenced-for-not-paying-his-employees
Restaurant owners who do not pay their employees can be subject to federal and state lawsuits and class actions be their employees for wage and hour claims litigation.
At Shenwick & Associates we have represented many restaurant owners and assisted them in closing their restaurants (legally) and filing for bankruptcy. Jim Shenwick, Esq [email protected] 212 541 6224
The Patch has an article about IRS penalty relief. The article is titled "IRS Offers $1.2B In Penalty Relief; Tardy Taxpayers Must Act Quickly".The article can be found at https://patch.com/us/across-america/irs-offers-1-2b-penalty-relief-tardy-taxpayers-must-act-quickly
Jim Shenwick, Esq [email protected] 212 541 6224
Fox Business has an article on "debt consolidation vs bankruptcy". The article contains a compare and contrast between the 2 strategies. The article can be found at https://www.foxbusiness.com/personal-finance/debt-consolidation-vs-bankruptcy
At Shenwick & Associates we have helped clients with both debt consolidation and personal bankruptcy and we can answer questions on both of these topics.
Jim Shenwick, Esq 212 541 6224 [email protected]
CNBC has an article on "Who Benefits the Most from Student Loan Forgiveness" the article can be found at https://www.cnbc.com/2022/09/11/heres-who-benefits-most-from-student-loa...
Jim Shenwick, Esq [email protected] 212-541-6224
Bankruptcy Attorney in Portland, OR
Bankruptcy is a set of federal laws and regulations that can assist individuals and businesses with excessive debt. In almost all 94 federal judicial districts, bankruptcy cases are filed in bankruptcy court. Bankruptcy cases cannot be filed in state courts. By liquidating their assets to pay off their debts or establishing a repayment plan, bankruptcy laws enable individuals unable to pay their creditors to start over.
Additionally, bankruptcy laws provide for the orderly distribution of business assets to creditors through reorganization or liquidation. Title 11 of the United States Code, also known as the Bankruptcy Code, governs these procedures.
Bankruptcy cases are exclusively within the jurisdiction of federal courts. Therefore, a bankruptcy case cannot be filed in state court. The primary objectives of bankruptcy law are (1) to provide an honest debtor with a “fresh start” in life by erasing most debts and (2) to repay creditors in an orderly fashion to the extent that the debtor has available property for payment.
In some bankruptcy cases, the borrower is allowed to reorganize and establish a plan to repay creditors, while in others, the borrower’s assets are liquidated.
At Northwest Debt Relief Law Firm, we are skilled bankruptcy Portland-based attorneys who take swift legal action so that you can quickly regain your financial footing. Schedule a free debt analysis with us to discuss your legal options and maximize your claims.
Why do I need a Bankruptcy Attorney in Portland, OR?
When you have determined that declaring bankruptcy is the best way to handle your financial situation, one of the most crucial tasks you can take is hiring a bankruptcy attorney in Portland, Oregon. When you have debt and expenses you cannot pay for, the stress you are under can become unbearable, and it may feel as though what you owe has become the entirety of your life.
If you have legal representation, you have the assistance of a knowledgeable and experienced lawyer on your side who can assist you in making sense of your financial situation and provide direction on what to do next. Your attorney will be able to provide legal advice and assist you in finding solutions to problems involving finances or the bankruptcy process itself.
The following are some of how a lawyer can assist you:
- Eliminate your existing debt
- Stop the distressing and never-ending stream of phone calls and emails
- Avoid having your most precious belongings, such as your home or automobile, go into foreclosure or be repossessed by taking the appropriate precautions
- Stop any wage garnishments that have been ordered against you.
- You will be protected from pending as well as prospective civil litigation
When you pay a lawyer for a consultation, they will walk you through all your choices and help you determine which ones are the most suitable for your specific predicament. These choices may include filing several bankruptcies, a defense against foreclosure with your lender, negotiations with your creditors, and other financial concerns.
What is Chapter 7 Bankruptcy?
The most straightforward and widespread type of bankruptcy is known as a Chapter 7 filing or liquidation bankruptcy.
If the insolvent files for bankruptcy under Chapter 7 and possesses assets that are not shielded by a bankruptcy exemption, a trustee appointed by the court may liquidate such assets and distribute the net profits to creditors under the priorities outlined in the Code.
In return, the debtor receives a release from the majority of his responsibility for the debts.
Nearly all individual bankruptcy cases are resolved by the trustee without the sale of any of the borrower’s belongings. This occurs in about 99 percent of all singular bankruptcy cases.
What is Chapter 13 Bankruptcy?
When a debtor files for Chapter 13 bankruptcy, they are eligible for a financial repayment plan that shields them from collection actions during the case and dismisses nearly all of their outstanding debts after the case.
The debtor is the one who devises the plan for making payments. Depending on the debtor’s disposable income, assets, and regular income, the creditors may receive only a minute portion of what they are owed. After the strategy, almost all of the outstanding debt will be cleared. This discharge applies to some debts, including those that cannot be eliminated under Chapter 7.
Chapter 13, or reorganization bankruptcy, is a powerful tool for debtors to keep their possessions, reclaim control of their financial lives, and get a meaningful fresh start.
Given these differences, when is Chapter 13 better than Chapter 7?
Reasons to Use Chapter 13 Bankruptcy Instead of Chapter 7 Bankruptcy
Sometimes it makes sense to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy.
Many debtors choose not to file for Chapter 13 bankruptcy because it requires repayment of at least a portion of their debts. Unlike Chapter 7 bankruptcy, which wipes out many debts entirely.
In some situations, however, Chapter 13 bankruptcy filing is the better option. Not only that, but some debtors don’t get to choose: Not everyone is eligible for Chapter 7, so Chapter 13 bankruptcy will be the only option available to some filers.
Inability to file for a Chapter 7 Bankruptcy
You will not be permitted to apply for Chapter 7 bankruptcy if you do not meet certain additional conditions established by the 2005 changes to the bankruptcy legislation.
Being behind on mortgage or auto loan
You then wish to resume the original arrangement by making up the missed payments over time. That is not permitted in Chapter 7 bankruptcy. Only Chapter 13 bankruptcy allows making up missed payments.
Inability to discharge tax bills, student loans, or other debts under Chapter 7
You can incorporate these obligations in your Chapter 13 case and repay them over time.
Possessing a valid intention to repay debts
You need to require bankruptcy court protection to do it. This may be the case if you are being pursued by creditors or need the official framework and deadlines that Chapter 13 bankruptcy provides to carry out your good intentions.
Retaining property that is not exempt
Chapter 7 bankruptcy allows you to retain only exempt property, which is a property shielded from creditors by state or federal law. You must surrender your non exempt assets to the bankruptcy trustee, who will sell them and distribute the proceeds to your creditors.
In Chapter 13 bankruptcy, you are not required to surrender any property. Instead, you use your money to repay your debts. So, if you have a nonexempt property you can’t bear to part with, Chapter 13 bankruptcy might be the better choice.
Availability of a co-debtor on a personal debt
If you file for Chapter 7 bankruptcy, your co-debtor will remain liable for payment, and your creditor will surely pursue payment from the co-debtor. The creditor will leave your co-debtor alone if you file for Chapter 13 bankruptcy and maintain your bankruptcy plan payments.
Call our Chapter 13 Bankruptcy Attorney Now!
We help our clients rebuild their credit after bankruptcy. Our focus is not just on eliminating debt but on helping you return to the financial mainstream as quickly and efficiently as possible. This service is provided at no additional charge.
Achieve Debt Relief Today! Learn more and call our bankruptcy lawyers at Northwest Debt Relief Law Firm now!
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Trying to Settle Her Debts through Americor, Liz gets a Warrant in Debt Liz was shocked when the sheriff brought a warrant in debt for her $2680 Victoria’s Secret account. Liz Tried to Settle Her Debts Liz tried to settle her debts. She worked through Americor and gave them $664 per month. Victoria’s Secret was […]
The post Settling Her Debts through Americor, Sheriff Brings a Warrant by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Trying to Settle Her Debts through Americor, Liz gets a Warrant in Debt Liz was shocked when the sheriff brought a warrant in debt for her $2680 Victoria’s Secret account. Liz Tried to Settle Her Debts Liz tried to settle her debts. She worked through Americor and gave them $664 per month. Victoria’s Secret was […]
The post Settling Her Debts through Americor, Sheriff Brings a Warrant by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
It’s September in Nebraska. Labor Day is over. The kids are back in school. Footballs are in the air, especially in Nebraska where our beloved Cornhusker football team has abandoned tradition and is throwing the football everywhere. Yep, I hate it. I so miss power football.
Back to the topic at hand.
The authors of the Bankruptcy Reform Act of 2005 believed that debtors frequently failed to report all their available income, so to address this issue the new law requires a debtor to disclose all “household income.”
Household income is more than just the wages of the debtor. It includes the wages of the debtor’s spouse and any other source of regular income.
Bankruptcy attorneys are charged with a special duty to investigate the income of a debtor and to report all income received in the prior six months. Attorneys must certify that they performed a “due diligence” inquiry of the debtor’s past and present income.
How does an attorney perform investigate household income?
We start by gathering six months of paycheck stubs. We also collect six months of bank statements and determine the source of each deposit. We also review two years of tax returns and create an inventory of assets.
If a debtor is self-employed, we inspect the business records. Bank accounts. Balance Sheets. Inventory. Tax returns.
Household income received in the prior six months is a key factor in every consumer bankruptcy case.
If income exceeds certain levels, the doors of Chapter 7 close. Rather, a debtor is left to file a 5-year Chapter 13 payment plan. If income is below median income, a chapter 13 plan may be completed in 3 years.
Two key factors must be measured:
- Median Income: Debtors whose household income exceeds the median income level for a particular household size will find it difficult to file Chapter 7. What’s more, those with above-median income levels will be required to pay back a percentage of their debt based on a mathematical formula call the Means Test.
- Household Size: Median income is based on household size. The larger the household, the higher the debtor’s income may be to qualify for chapter 7.
Correctly stating a debtor’s household size and income is critical. This is the gateway to Chapter 7 and shorter 3-year chapter 13 plans.
So, this is the game. Get it? To be an effective bankruptcy attorney you must manipulate the debtor’s income and household size to qualify for chapter 7. By not including some income and by including more people in the household, an attorney can qualify debtors for chapter 7 or short-term chapter 13 payments.
Calculating household size and income is absolutely critical. It is the foundation block of every case.
And because these measurements are the doors through which all debtors must pass, there is a great temptation by debtors and their attorneys to understate income and overstate household size.
This is the topic I would like to explore in the next several posts. How do attorneys cleverly understate a debtor’s income and get away with it? How can debtors exaggerate their household size to fall below median income limits?
Image courtesy of Flicker and Kiley
Investopedia has a helpful article titled "How to File for Student Loan Bankruptcy" The article can be found at https://www.investopedia.com/how-to-file-student-loan-bankruptcy-4772237
Jim Shenwick, Esq [email protected] 212 541 6224
NYS Equitable Distribution Law and Fraudulent ConveyancesFreeman Law wrote a very interesting and informative article titled Can Trustees Avoid Transfers Made Pursuant to Divorce Decrees or Other Agreements Incident to Divorce? The article was published in JD Supra at https://www.jdsupra.com/legalnews/can-trustees-avoid-transfers-made-3271604/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-linkIn the article, the author discusses whether Bankruptcy Trustee’s in Ohio can avoid transfers made pursuant to divorce decrees (yes according to the author) and discusses fraudulent conveyance law.In NYS the division of marital property is governed by equitable distribution. Which is defined as a division of marital property between spouses that is equitable or fair. The division does not have to be equal to be considered fair.As a result, if a couple is divorcing in NYS and one spouse owes money to creditors, the divorce presents an opportunity for the spouse who owes money to creditors (a debtor) to make themselves judgment proof or otherwise engage in asset protection planning.Let’s look at an example. A couple is married and they own a house that has appreciated in value. The house has a fair market value of $1,000,000 and is subject to a $250,000 mortgage. The couple has 2 minor children and custody of the children will be given to the mother, who does not work.The husband had started a business which subsequently failed and he owes or has guaranteed debt exceeding $2,000,000. The husband cannot repay that debt in the near term and he expects to get sued in the future.During the divorce process, each spouse hires a divorce attorney, and the husband consults a bankruptcy attorney who advises him to transfer the house to his wife.When the divorce is finalized, the husband has few assets that can be liened or levied by creditors and the wife has a house for herself and her children.Does NYS or bankruptcy law consider the conveyance of the house a fraudulent conveyance? Depending on the facts probably not and if a creditor were to challenge the conveyance it would result in lengthy and costly litigation. Clients with questions about fraudulent conveyance law and bankruptcy should contact Jim Shenwick, Esq [email protected] 212 541 6224
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.