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In 2009, the District Court of the Southern District of Texas upheld the Bankruptcy Court's decision refusing to recognize of the foreign bankruptcy pending in Israel in the case of In re Lavie, ___ B.R. ___, 2009 WL 890387 (S.D. Tex. 2009).
In 1997 involuntary bankruptcy proceedings were initiated in Israel against Yuval Ran and Zuriel Lavie was appointed temporary receiver and later in 1999, the trustee of Ran's bankruptcy estate. In 1997 Ran moved to Houston, Texas. In 2006, the Israeli trustee Lavie filed a petition seeking recognition of the Israeli bankruptcy proceeding as a foreign main or foreign nonmain proceeding under chapter 15 of the U.S. bankruptcy code. The bankruptcy court denied Lavie's petition and the appeal therefrom was remanded to the bankruptcy court for further findings. On remand, the bankruptcy court declined to recognize the Israeli bankruptcy proceeding as either a foreign main or foreign nonmain proceeding. Lavie further appealed the bankruptcy court's decision.
The court reviewed that chapter 15 of the bankruptcy code was designed to optimize disposition of international insolvencies by facilitating appropriate access to the U.S. bankruptcy courts by a representative of an insolvency proceeding pending in a foreign country. Under section 304 of the bankruptcy code, which was chapter 15's predecessor, relief to foreign representatives was generally based on subjective factors and comity. In contrast, under chapter 15 the courts are given objective statutory guidelines as to whether to "recognize" the foreign proceeding.
A foreign proceedings can be a main proceeding, a non-main proceeding, or a foreign proceeding that is neither main nor non-main. A foreign proceeding must be recognized as main or non-main in order to be recognized and for chapter 15 relief to be granted. A foreign main proceeding is a foreign proceeding pending in the country where the debtor has the center of its main interest ("COMI"). The habitual residence of an individual person is presumed to be his COMI, but this presumption can be rebutted. Other factors recognized by the court in In re Loy were the location of the debtor's primary assets, the location of the majority of the debtor's creditors, and the jurisdiction whose law would apply to most disputes. In re Loy, 380 B.R. 154, 162 (Bankr. E.D. Va.2007). The court noted that European courts generally find that an individual's COMI is his habitual or permanent residence. A foreign court's determination that its jurisdiction is the debtor's COMI does not bind a U.S. court, but chapter 15 requires the U.S. court to make an independent finding at the time of the filing of the petition for recognition rather than at the time the foreign insolvency proceedings were initiated in the foreign court.
A foreign nonmain proceeding is a foreign proceeding, other than a foreign main proceeding, pending in a country where the debtor has an establishment 11 U.S.C. section 1502(5). An establishment is defined as "any place of operations where the debtor carries out a nontransitory economic activity." The existence of an establishment is a factual question with no presumption in its favor. The court held that although chapter 15 does not explicitly detail the relevant time period for the determination of whether there is an "establishment, " the use of the present tense in section 1502(2) implies that the determination should be made as of the time of the filing of the petition for recognition by the foreign representative under chapter 15.
The District Court upheld the Bankruptcy Court's denial of of recognition of the Israeli bankruptcy proceedings as a foreign main proceeding. The District Court also found that the pending Israeli insolvency proceeding not a foreign nonmain proceeding. The Court rejected the argument that the pending Israeli insolvency proceeding in and of itself was such an economic activity as to constitute an establishment necessary for a foreign nonmain proceeding. The Court held that the Israeli insolvency trustee's activities were as the agent of the bankruptcy estate and not as the agent of Ran.
The Court noted that although the recognition was denied, this did not affect any right the foreign trustee may have to sue in the U.S. to collect on his claim.Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
In 2009, the District Court of the Southern District of Texas upheld the Bankruptcy Court's decision refusing to recognize of the foreign bankruptcy pending in Israel in the case of In re Lavie, ___ B.R. ___, 2009 WL 890387 (S.D. Tex. 2009).
In 1997 involuntary bankruptcy proceedings were initiated in Israel against Yuval Ran and Zuriel Lavie was appointed temporary receiver and later in 1999, the trustee of Ran's bankruptcy estate. In 1997 Ran moved to Houston, Texas. In 2006, the Israeli trustee Lavie filed a petition seeking recognition of the Israeli bankruptcy proceeding as a foreign main or foreign nonmain proceeding under chapter 15 of the U.S. bankruptcy code. The bankruptcy court denied Lavie's petition and the appeal therefrom was remanded to the bankruptcy court for further findings. On remand, the bankruptcy court declined to recognize the Israeli bankruptcy proceeding as either a foreign main or foreign nonmain proceeding. Lavie further appealed the bankruptcy court's decision.
The court reviewed that chapter 15 of the bankruptcy code was designed to optimize disposition of international insolvencies by facilitating appropriate access to the U.S. bankruptcy courts by a representative of an insolvency proceeding pending in a foreign country. Under section 304 of the bankruptcy code, which was chapter 15's predecessor, relief to foreign representatives was generally based on subjective factors and comity. In contrast, under chapter 15 the courts are given objective statutory guidelines as to whether to "recognize" the foreign proceeding.
A foreign proceedings can be a main proceeding, a non-main proceeding, or a foreign proceeding that is neither main nor non-main. A foreign proceeding must be recognized as main or non-main in order to be recognized and for chapter 15 relief to be granted. A foreign main proceeding is a foreign proceeding pending in the country where the debtor has the center of its main interest ("COMI"). The habitual residence of an individual person is presumed to be his COMI, but this presumption can be rebutted. Other factors recognized by the court in In re Loy were the location of the debtor's primary assets, the location of the majority of the debtor's creditors, and the jurisdiction whose law would apply to most disputes. In re Loy, 380 B.R. 154, 162 (Bankr. E.D. Va.2007). The court noted that European courts generally find that an individual's COMI is his habitual or permanent residence. A foreign court's determination that its jurisdiction is the debtor's COMI does not bind a U.S. court, but chapter 15 requires the U.S. court to make an independent finding at the time of the filing of the petition for recognition rather than at the time the foreign insolvency proceedings were initiated in the foreign court.
A foreign nonmain proceeding is a foreign proceeding, other than a foreign main proceeding, pending in a country where the debtor has an establishment 11 U.S.C. section 1502(5). An establishment is defined as "any place of operations where the debtor carries out a nontransitory economic activity." The existence of an establishment is a factual question with no presumption in its favor. The court held that although chapter 15 does not explicitly detail the relevant time period for the determination of whether there is an "establishment, " the use of the present tense in section 1502(2) implies that the determination should be made as of the time of the filing of the petition for recognition by the foreign representative under chapter 15.
The District Court upheld the Bankruptcy Court's denial of of recognition of the Israeli bankruptcy proceedings as a foreign main proceeding. The District Court also found that the pending Israeli insolvency proceeding not a foreign nonmain proceeding. The Court rejected the argument that the pending Israeli insolvency proceeding in and of itself was such an economic activity as to constitute an establishment necessary for a foreign nonmain proceeding. The Court held that the Israeli insolvency trustee's activities were as the agent of the bankruptcy estate and not as the agent of Ran.
The Court noted that although the recognition was denied, this did not affect any right the foreign trustee may have to sue in the U.S. to collect on his claim.Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
Happy Earth Day, Texans! Texas is a beautiful state that we are lucky to call ‘home’. In order to protect our wonderful home, we need to make sure it is clean & taken care of.
Below are ways that Texans can do their part to help keep our home clean, both on Earth Day AND all year long.
Earth Day Celebrations
Earth Day Texas – Dallas
When: April 22-24, 2022
Where: Kay Bailey Hutchison Convention Center
Time: 10 am – 6 pm
Description: “The mother of all eco expos is held on three days and attracts thousands of visitors to Fair Park. Hundreds of exhibitors will be on hand, including environmental non-profits, businesses, academic institutions and government agencies aiming to raise the environmental consciousness of North Texans. There is also a full schedule of speakers, demonstrations and films at this free fest founded by Dallas philanthropist Trammell S. Crow.”
Website: https://earthx.org/activities/
Plant A Seed For Earth Day – Fort Worth
When: April 22, 2022
Where: Fort Worth Public Library
Time: 4 pm – 5 pm
Description: “At your library, you have a fun space for creativity and development. Bring and friend and learn how to care for it and see how a plant grows. As a destination for discovery, your Fort Worth Public Library is a location for learners of any age. This is a free event!” (Perfect for families!)
Website: https://newsroom.heb.com/event/plant-a-seed-for-earth-day-fort-worth-public-library/
Earth Day at Woodlawn Lake Park – San Antonio
When: April 23, 2022
Where: 1103 Cincinnati Ave. (Woodlawn Lake Park)
Time: 10 am – 2 pm
Description: “Celebrate Earth Day 2022 with San Antonio Parks and Recreation! This fun-filled event will feature over 50 environmental organizations, hands on family activities, free tree adoptions, engaging dance and musical performances, and lots more! Connect with representatives from local organizations whose work focuses on conservation, take a free Fitness in the Park class, and enjoy a healthy treat from one of our food vendors.”
Website: https://www.sanantonio.gov/ParksAndRec/News-Events/Earth-Day
Earth Day ATX 2022 – Austin
When: April 23, 2022
Where: Huston-Tillotson University
Time: 12 pm – 6 pm
Description: “Earth Day Austin is the largest sustainability event in Central Texas. On April 23, 2022, thousands from the Austin Area and beyond will come to learn about conservation and sustainable solutions, celebrate our love for the environment, and get connected to the best and most innovative green businesses and organizations. Your business or organization should be right in the center of it. With family and friends, attendees explore rich, in-depth programming, exciting new activities and engaging exhibitions that allow them to discover new connections to the environment and environmental issues. Inspired by their experiences and interactions, participants are empowered to make new sustainable choices that enhance their lives while helping the planet.”
Website: https://earthdayaustin.com/for-exhibitors-2-2/
____________________________________________________________________
Earth Day, Every Day!
Groundwork Dallas – Dallas
When: Every Saturday
Where: Event locations changing constantly. Click here for location.
Time: 9 am – 12 pm
Description: Join Groundwork Dallas every Saturday to help protect and clean Dallas!
Website: https://greensourcedfw.org/events/groundwork-dallas-parks-cleanup-volunteer-opportunity-dallas-every-saturday
Organize A Litter Cleanup – Fort Worth
When: Can be whichever date you choose
Where: Can be whichever location you choose
Time: Can be whichever time you choose
Description: “Keep Fort Worth Beautiful supports volunteers by providing them with trash bags and gloves, which helps in their efforts to clean litter and have a positive impact on their community. KFWB typically provides the following supplies for a standard two-hour cleanup:
- One bag per adult volunteer
- One bag per two youth volunteers
- Gloves for all volunteers
- Equipment to help any volunteers who are elderly or who have disabilities (available upon request)”
Website: Create your littler cleanup here: https://www.fortworthtexas.gov/departments/code-compliance/kfwb/initiatives/litter
San Antonio River Authority – San Antonio
When: Can be whichever date you choose
Where: Can be whichever location you choose
Time: Can be whichever time you choose
Description: “Every year, the San Antonio River Authority, City of San Antonio, Bexar County, other governmental agencies, and volunteers pull tons of trash out of area creeks and rivers. A piece of trash you see on the sidewalk in your neighborhood or on the ground at an area park will likely end up in a local waterway. You can help make a difference. Don’t let litter trash your river!”
Website: https://www.sariverauthority.org/trash-initiative/volunteer-toolkit
Keep Austin Beautiful – Austin
When: The 2nd Saturday of every month
Where: Event locations changing constantly
Time: Event times changing constantly
Description: “We inspire and educate all Austinites to volunteer together, beautify green spaces, clean waterways, and reduce waste every day. Keep Austin Beautiful empowers people to care for the environment by providing community resources, education, and volunteer opportunities.”
Website: Must register here per event: https://keepaustinbeautiful.org/volunteer-opportunities/
The post How Can Texans Celebrate Earth Day? appeared first on Allmand Law Firm, PLLC.
Cannot Overrule Prior Panel In McNeal v. GMAC Mortgage, LLC, 735 F.3d 1263 (11th Cir. 2012)(wholly underwater liens still avoidable in chapter 7) the 11th Circuit Court of Appeals was presented with the issue whether it could recede from its prior decision in Folendore v. Small Business Administration, 862 F.2d 1537 (11th Cir. 1989), in view of the subsequent Supreme Court decision in Dewsnup v.Timm, 502 U.S. 410 (1992). The Court held that it was bound to follow its decision in Folendore based on the "prior panel precedent" rule. Under the prior precedent rule, "a panel cannot overrule a prior one's holding even though convinced it was wrong." United States v. Steele, 147 F. 3d 1316 (11th Cir. 1998)(en banc).
Clearly Contrary Opinion RequiredThis article explains that the 11th Circuit in the case of Main Drug, Inc. v. Aetna U.S. Healthcare, Inc., 475 F.3d 1228 (11th Cir. 2007), held that “‘[w]ithout a clearly contrary opinion of the Supreme Court or of this court sitting en banc, we cannot overrule a decision of a prior panel of this court.’” To constitute and "overruling", the Supreme Court decision "must be clearly on point." Garrett v. Univ. of Ala. at Birmingham Bd. of Trs., 344 F.3d 1289, 1292 (11th Cir.) and "actually abrogate or directly conflict with, as opposed to merely weaken, the holding of the prior panel." In re Provenzano, 215 F.3d 1233, 1235 (11th Cir. 2000).
Applies Also to Decisions Based on State Law The Court in Broussard v. Souther Pac. Transp. Co, 665 F.2d 1387 (5th Cir. 1982) related that "[t]his rule applies with equal force to cases in which state law provides the substantive rule of decision" and that the Court is therefore bound by this Court's prior decisions on what is the law of a state in a diversity case." Provenzo noted that the "prior panel precedent" rule would also not apply if there was an overruling in an intervening case by the Florida Supreme Court.
Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
Cannot Overrule Prior Panel In McNeal v. GMAC Mortgage, LLC, 735 F.3d 1263 (11th Cir. 2012)(wholly underwater liens still avoidable in chapter 7) the 11th Circuit Court of Appeals was presented with the issue whether it could recede from its prior decision in Folendore v. Small Business Administration, 862 F.2d 1537 (11th Cir. 1989), in view of the subsequent Supreme Court decision in Dewsnup v.Timm, 502 U.S. 410 (1992). The Court held that it was bound to follow its decision in Folendore based on the "prior panel precedent" rule. Under the prior precedent rule, "a panel cannot overrule a prior one's holding even though convinced it was wrong." United States v. Steele, 147 F. 3d 1316 (11th Cir. 1998)(en banc).
Clearly Contrary Opinion RequiredThis article explains that the 11th Circuit in the case of Main Drug, Inc. v. Aetna U.S. Healthcare, Inc., 475 F.3d 1228 (11th Cir. 2007), held that “‘[w]ithout a clearly contrary opinion of the Supreme Court or of this court sitting en banc, we cannot overrule a decision of a prior panel of this court.’” To constitute and "overruling", the Supreme Court decision "must be clearly on point." Garrett v. Univ. of Ala. at Birmingham Bd. of Trs., 344 F.3d 1289, 1292 (11th Cir.) and "actually abrogate or directly conflict with, as opposed to merely weaken, the holding of the prior panel." In re Provenzano, 215 F.3d 1233, 1235 (11th Cir. 2000).
Applies Also to Decisions Based on State Law The Court in Broussard v. Souther Pac. Transp. Co, 665 F.2d 1387 (5th Cir. 1982) related that "[t]his rule applies with equal force to cases in which state law provides the substantive rule of decision" and that the Court is therefore bound by this Court's prior decisions on what is the law of a state in a diversity case." Provenzo noted that the "prior panel precedent" rule would also not apply if there was an overruling in an intervening case by the Florida Supreme Court.
Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
2022 AV Preeminent Attorney - Judicial Edition View online 
See My Award Your 2022 AV Preeminent Attorney - Judicial Edition is a testimony to your excellence. Displaying it lets everyone know.
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Or call us: 866-964-0866 Congratulations James Shenwick on your selection to 2022 AV Preeminent Attorney - Judicial Edition Martindale-Hubbell has named you in their 2022 AV Preeminent Attorney - Judicial Edition...what an accomplishment. Well Done! Your AV Preeminent Rating® is proof of excellence... a tremendous endorsement by both your peers and the judiciary. Hanging on your wall, placed on your desk, on display in in your waiting area and on your letterhead it's sure to impress... Your awards set you apart from all the competition. They validate. They build confidence and trust. They grow your business! Put them on display now and show your customers just how good you are.
Education Loans Can Be Discharged in Bankruptcy
Busting myths about bankruptcy and private student loans
By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau “www.CFPB.gov”. The following is an excerpt from Mr. Cameron’s article.)
What is behind the perception that student loans cannot be discharged in bankruptcy? It is true that it can be more difficult to discharge many student loans than other types of unsecured debt; the Bankruptcy Code provides a more difficult test for relief (a showing of “undue hardship”) and an extra step in the process (an “adversary proceeding,” essentially a lawsuit within the bankruptcy). However, some borrowers may not realize that discharge is still possible even under that standard and extra step.
Importantly, some loans that borrowers may think of as “private student loans” are not subject to that standard and extra step. Instead, some private loans for educational purposes can be discharged in a normal bankruptcy proceeding, just like most other consumer debts.
For example, several types of loans associated with education expenses are dischargeable in bankruptcy, like most other types of unsecured consumer debt. These types of loans for education expenses are not subject to the more difficult standard and extra step. These loans could include, for example:
- Loans where the loan amount was higher than the cost of attendance (such as tuition, books, room, and board), which can occur when a loan is paid directly to a consumer.
- Loans to pay for education at places that are not eligible for Title IV funding such as unaccredited colleges, a school in a foreign country, or unaccredited training and trade certificate programs.
- Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams.
- Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency.
- Loans to a student attending school less than half-time.
Complaints That Discharge Orders Are Being Violated
Consumer complaints raise serious questions about whether student loan companies are violating discharge orders—meaning they’re unlawfully collecting on loans even after a borrower has been through bankruptcy.
Has Your Loan Been Discharged?
If you have been through bankruptcy and have private student loan debt that is still being collected, consider the following questions:
- Did you take out the loan for educational expenses solely for the cost of attendance (tuition, books, room, and board) or did you take out a loan that was higher than the costs of attendance? If your loan was greater than cost of attendance, your loan might have been discharged.
- Did you take out the loan to pay for education at an unaccredited school, a school in a foreign country, or unaccredited training and trade certificate programs? If so, your loan might have been discharged.
- Did you take out the loan for fees or expenses related to studying for a professional exam? Or the cost of the board examination or fees, moving, and living expenses for a medical or dental residency? If so, your loan might have been discharged.
- When you took out the loan, were you in school less than half-time? If so, your loan might have been discharged.
Read the rest of the article.fusion-imageframe.imageframe-1{ margin-top : 15px;margin-left : 15px;}
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- Don’t Fall Into a Student Loan Relief Scam
- 10 Things You Need to Know Before Filing Bankruptcy
- Seniors Saddled with Student Loans
- Do Student Loans Debts Die With You?
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The post Busting myths about bankruptcy and private student loans appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
ARIZONA IS ONE OF 2 STATES THAT WILL TAKE YOUR TAX REFUND IF THIS HAPPENS. SHOULD THE LAW CHANGE?
By RUSS WILES, Arizona Republic (reprinted for educational purposes only)
Tens of millions of Americans look forward to income-tax refunds as a way to pay down debt, buy necessities and otherwise get their finances back in order. For many people, refunds represent the largest one-time payment they will receive all year.
‘We’d use it to buy clothing, shoes and stuff the kids might need like school uniforms for the coming year,’ said Kyle Hebenthal, a 38-year-old truck driver who lives in Surprise with his wife, Suzanna, 36, and their two kids.
But Kyle and his family won’t receive their refund money this year.
Current state law precludes debtors like the Hebenthals from receiving tax refunds if they recently filed for bankruptcy before getting the funds. Arizona is one of just two states, along with Montana, that diverts refund money to creditors and for use in meeting bankruptcy-administration costs, said Chandler bankruptcy attorney Kenneth Neeley.
A bill before Arizona lawmakers, Senate Bill 1222, would change that by exempting federal tax refunds from the list of personal assets used to pay off debts. The legislation passed the Senate on a bipartisan vote and awaits a vote in the House.
Neeley, whose firm is representing the Hebenthals, said he supports the measure as a means to give debtors a fresh financial start. But critics contend the measure could mean fewer creditors, large and small, would be paid in full — if at all.
The two key types of federal tax breaks that drive up refunds for moderate-income taxpayers are the earned income tax credit and the child tax credit. The EITC, in particular, is viewed as a major federal anti-poverty program.
This tax break was claimed by 555,000 Arizona households in 2020, the most recent year for which the Internal Revenue Service has disclosed numbers. The average amount was $2,478.
Also, the IRS paid advance child tax credits averaging $462 to 795,000 Arizona households last year. The advance payments were a special program for 2021 designed to provide pandemic relief to households before they actually filed returns for the year.
A fresh start
The Hebenthals, who filed for Chapter 7 bankruptcy protection in January, said their financial woes mounted when they separated last year and she lost her job for about six months. The split ‘basically meant maintaining two households,’ she said.
Bankruptcy filings are designed to help people restart their financial lives by removing many types of debt. Those going through the process need a little money to get back on their feet, and that’s where tax refunds could help.
With ‘fresh start’ Chapter 7 proceedings, people filing for bankruptcy generally must turn over just one year’s tax refund, Neeley said. But in Chapter 13 debt-reorganization cases, debtors could lose their tax refunds for up to five years, he added.
‘Allowing families to keep these dollars means they can better afford basic everyday expenses like rent, groceries and gas,’ said state Sen. Sean Bowie, D-Phoenix, the prime sponsor of the legislation.
Neeley said he didn’t think the proposed bill is really a partisan issue, except when special interests get involved, citing banks and debt buyers who he said often purchase IOUs for pennies on the dollar and aren’t the original creditors.
When tax refunds are accessed by a bankruptcy trustee, roughly one-third of the money on average will go to pay court administration costs and the rest to reduce debts, he estimated.
But Marcus Osborn, a Scottsdale lobbyist representing Bankruptcy Trustees of Arizona, said the parties who could lose out if the bill becomes law include small landlords, various other small businesses and former spouses who might be deprived of child-support payments.
Most of the more than 130 parties that have noted their opposition to the bill on the Azleg. gov website are individuals, along with representatives of groups including the Arizona Free Enterprise Club and the Arizona Creditor Bar Association.
Supporters include various individuals and representatives of groups such as the Arizona Center for Economic Progress, the Arizona Council of Human Service Providers and Unidos US.
.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important; margin-right:0px!important;margin-bottom:0px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important; margin-right:0px!important;margin-bottom:10px!important; margin-left:0px!important;}}MUSINGS BY DIANE:
Russ Wiles, Arizona Republic, just wrote an article about destitute families losing the tax refunds (child tax credit and earned income tax credit) if they file for bankruptcy protection. Montana is the only other state that allows this money to be seized by the bankruptcy trustee. This money is desperately needed by families in order to buy necessities, pay rent, utilities or catch up on rent. There is a bill pending in the Arizona Legislation to protect these funds – SB 1222. It has passed the Senate on a bipartisan vote and awaits a vote in the House.
So what is the problem? Bankruptcy Trustees are fighting hard to kill the bill. Why do they care? Because the trustee takes 25% of whatever they seize from the families who have to file bankruptcy. See the Professional Fee Report from the Bankruptcy Court. (Excerpts below)
Sen. Sean Bowie, bill’s sponsor, says “Allowing families to keep these dollars means they can better afford basic everyday expenses like rent, groceries & gas.””
Chapter 7 Trustee or trustee’s attorney (not all inclusive)
Income for 2021
Dina Anderson
$330,696.54
Ryan Anderson (trustee attorney)
$530,968.82
David Birdsell
$277,169.73
Roger Brown
$150,194.12
Steven Brown (trustee attorney)
$475 740.85
Terry Dake (trustee attorney)
$825 805.01
Constantino Flores
$68,223.53
Jill Ford
$268,870.69
Maureen Gaughan
$390,656.34
Lothar Goernitz
$103,433.54
Eric Haley
$234,859.64
Stanley Kartchner
$395,244.60
Robert Mackenzie
$146,730.75
Dawn Maguire
$19,725.00
Anthony Mason
$95,348.36
Gayle Mills
$20,563.60
Brian Mullen
$142,226.07
Adam Nach (trustee attorney)
$579,461.98
Trudy Nowak
$257,666.29
David Reaves (includes very unusual distribution of $1,131,742.62. Normally his fees are never this high.)
$1,512,453.34
Bradley Stuart Rodgers
$348,898.11
Jim Smith
$99,277.46
Dale Ulrich
$220,465.04
Lawrence Warfield
$224,194.89
Theodore Witthoft
$202,369.01
Grand total collected from debtors in 2021
$12,472,975.56
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https://gothamist.com/news/future-of-nycs-iconic-yellow-cabs-looks-like-another-ride-hailing-appNew York City’s yellow cabs may operate and function more like their ride-hailing app competitors in the future, according to the Taxi and Limousine Commission’s strategic plan released late Friday.The agency said it wants to roll out shared rides, variable pricing and be included in transit apps that compare taxi prices to other ride services “in the coming years.”“TLC is excited about ways that technology and innovation can facilitate the taxi industry’s continued recovery from the impacts of the pandemic,” TLC Acting Commissioner Ryan Wanttaja wrote in a statement. “The Taxi Strategic Plan includes big ideas that will help ensure the long-term viability of the industry, and we are looking forward to working with drivers, industry members, and other stakeholders on implementing these initiatives.”The plan includes 40 recommendations, some of which are currently underway, like the medallion debt relief program. Other ideas would change the way yellow cabs have historically operated, with plans to open the door to testing automated vehicles and exploring a future of prices that rise and fall based on demand, as opposed to a flat meter rate.The TLC said it is committed to “supporting the Taxi industry and its future as a critical part of New York City’s transportation network,” and noted these 40 suggestions were created as “a first step to ensuring the continued viability of the industry.”The yellow cab industry has been facing headwinds for a decade now. For-hire vehicle apps entered the city in 2012, leading to a decline in taxis.The value of a taxi medallion was more than $1.2 million in 2014, but is now worth about $100,000. The medallions’ nosediving worth has sent owners – taxi drivers who thought the medallion was a foothold in the middle class – into financial and mental crises.These upheavals have been further exacerbated by the pandemic, which has wiped out any fares from tourism and business sectors. The TLC’s initiatives received mixed reactions, with the drivers’ union hoping for more actions to improve workers’ livelihoods and drivers eager for any possible changes that will earn them higher wages.
Filing bankruptcy is often seen as a last resort for people experiencing financial difficulties. Declaring bankruptcy may provide you with an opportunity to get your finances in order, and potentially even a clean slate—but it also has negative consequences that can impact your assets and make it hard to get approved for credit for years.
Many companies provide forms and booklets that people can use to file for bankruptcy on their own. However, bankruptcy laws may be confusing, and mistakes can sometimes mean that you still owe money on bills that you believed were discharged. As such, it is advisable to get the advice of an experienced bankruptcy attorney.
Additionally, bankruptcy can affect your chance to purchase a vehicle, a home, or other properties for at least 10 years. A bankruptcy attorney can advise you on whether filing for bankruptcy is the best option for your particular circumstances.
If you want to learn more about bankruptcy or get help with a bankruptcy case, you should speak with one of our Salem bankruptcy lawyers at Northwest Debt Relief Law Firm for legal advice.
Our bankruptcy attorney will take the time to answer your questions so you can have peace of mind. We can reduce the stress and burden of your financial problems right now.
Bankruptcy Law And Bankruptcy Exemptions in Oregon
Bankruptcy is the legal process that happens when a person or company is unable to pay an outstanding debt to their creditor (credit card debt, mortgage debt, medical debt, student loan). Filing bankruptcy helps those who have been enslaved by debt to find freedom from their financial liabilities while also helping creditors in recovering part of their money through the sale of assets or repayment programs.
All bankruptcy cases in Oregon are governed by the US Bankruptcy Code and conducted in federal court. As such, bankruptcy filing in Oregon is largely similar to filing in any other state. However, Oregon bankruptcy laws come into play as well, influencing the debtor’s exemption privileges and what property is protected.
During the bankruptcy process, the courts will appoint a trustee whose responsibility is to ensure creditors recover the maximum amount of money due while relieving the debtor of their financial burdens. In many circumstances, this entails dissolving assets and property that are not protected by Oregon bankruptcy exemptions to pay off the creditors. Any outstanding debts are then erased.
A structured repayment plan spanning three to five years, on the other hand, can help the debtor manage their financial responsibilities and provide them time to pay off their debts. Please keep in mind that there are some debts that you will not be able to wipe out in bankruptcy.
The U.S. Bankruptcy Code is grouped into chapters, each of which defines and details the legal processes for certain kinds of bankruptcies. The vast majority of cases come under Chapter 7, Chapter 11, or Chapter 13, which are all detailed below. In deciding which one to pursue, the debtor should consider who is filing the case and what the debtor hopes to accomplish.
What Happens When You File For Bankruptcy In Oregon?
When a bankruptcy petition is filed at the clerk’s office, the automatic stay goes into effect immediately. It will prohibit almost all creditors from pursuing collection action against the debtor or the debtor’s property.
The bankruptcy court sends a notice to all creditors informing them of the following:
- bankruptcy filing,
- case number,
- automatic stay
- name of the bankruptcy trustee working on the case (if filed under chapter 7, 12, 13, or subchapter V of chapter 11)
- date set for the creditors’ meeting
- deadline (if any) for filing objections to the debtor’s discharge and/or the dischargeability of specified debts
- whether and where to file claims
The specific information in the notification is determined by the chapter which the lawsuit is filed under.
If the debtor resides near Portland or Eugene, the meeting of creditors is normally convened within 25 to 40 days after filing, or between 25 to 60 days if the meeting is held elsewhere in the state. At the meeting, the debtor is expected to reply under oath to questions from the bankruptcy trustee as well as any inquiries from creditors on the debtor’s financial status and assets. The debtor is required to attend this conference, although a creditor is not required to do so.
What Happens In A Chapter 7 Case: Liquidation
Chapter 7 bankruptcy can be filed by individuals, small businesses, and big companies. Debtors filing for Chapter 7 bankruptcy, often known as “liquidation bankruptcy” or “straight bankruptcy,” are required to liquidate their assets in order to pay off any remaining unsecured debt.
According to Oregon bankruptcy legislation, the federal courts will appoint a trustee who is in charge of selling assets in the order of “absolute priority” as specified in Section 1129(b)(2) of the United States Bankruptcy Code. The list of Oregon bankruptcy exemptions specifies which property the debtor is allowed to keep – they would never be required to sell all they own. All remaining debts are legally discharged (removed) when the assets are sold.
In a Chapter 7 case involving a single debtor, creditors normally have 60 days from the first date scheduled for the creditors’ conference to object to the discharge of all of the debtor’s obligations and/or the dischargeability of a particular debt. If no challenges to the debtor’s discharge of all obligations are lodged by the deadline, the court will issue a discharge order.
If any objections to the dischargeability of particular debts are raised, the court will hear them, but they will not prevent the court from issuing a discharge for other obligations. An objection to discharge or the dischargeability of specific debts is treated as a separate lawsuit (an adversary proceeding) inside the bankruptcy case, and it may lead to a trial before the judge assigned to the case. Corporate and partnership debtors in Chapter 7 do not get discharges.
If there are no estate assets available to pay a dividend to creditors, the trustee files a report of no distribution and the case is closed. If there are non-exempt assets, funds are available for distribution. The bankruptcy court establishes claim deadlines and informs all creditors of the need to file proofs of claim. The trustee then goes about collecting assets, liquidating them, and distributing the proceeds to creditors.
What Happens In A Chapter 13 Case: Repayment Plan
Individuals and businesses can both file for Chapter 13 bankruptcy. It is a great alternative for anybody who wants to keep all of their property. Also known as “repayment plan bankruptcy” or “debt adjustment bankruptcy,” the debts will be paid back over the following three to five years. This means that the debts will exist for up to five years, but you will be able to keep everything exempt and non-exempt property.
Creditors are granted the right to object to the plan in a chapter 13 case. If no objections are lodged by creditors or the bankruptcy trustee, the plan may be confirmed. Once the plan is confirmed, the trustee will distribute to creditors the proceeds of the debtor’s plan payments until the debtor completes the plan or the court dismisses or converts the case.
When the chapter 13 plan payments are completed, the court issues a discharge order, the trustee makes a final report, and the case is closed. A discharge may be granted if certain criteria are met.
What Happens In A Chapter 12 Case: Family Farmers
Chapter 12 bankruptcy is only used by family farmers and fishermen who have a steady yearly income. This type of bankruptcy, like Chapter 13, operates by creating a repayment plan to pay all unpaid debts back to the debt collection agencies. The repayment programs are available for up to five years, during which time, business can continue as usual.
The confirmation hearing in a chapter 12 case must be concluded within 45 days of the bankruptcy plan’s filing. If a plan is not confirmed, the bankruptcy court may consider dismissing the case. If confirmed, the bankruptcy trustee distributes the debtor’s payments and ensures that the farming operation runs successfully.
When the chapter 12 plan payments are completed, the court issues a discharge order, the trustee makes a final report, and the case is closed. A discharge may be granted if certain criteria are met.
What Happens In A Chapter 11 Case: Large Reorganization
Chapter 11 bankruptcy is often reserved for big companies. Individuals with extraordinarily large outstanding debts, on the other hand, can petition for this form of claim too. The unpaid amount is not immediately paid through the sale of assets in a “reorganization bankruptcy”. Instead, the court-appointed trustee restructures the debts while business as usual continues.
The bankruptcy laws in Oregon require the debtor to repay their debts with the company’s future income, but it does give an opportunity for the corporation to emerge as a thriving business. If the company is unsuccessful, it will be forced to file for Chapter 7 bankruptcy to pay any outstanding debts.
The debtor meets with the U.S. Trustee’s staff before the creditors’ meeting in a chapter 11 case. During the meeting, the U.S. Trustee examines the debtor-in-possession’s responsibilities and restrictions, explains the quarterly fees and monthly operating reports, and generally discusses the debtor’s financial situation and the breadth of the anticipated plan of reorganization.
The U.S. Trustee encourages interested unsecured creditors to organize a creditors’ committee and play an active role in pushing the case forward. Before votes for and against the plan can be sought in most chapter 11 cases, a disclosure statement must be filed with the plan and approved by the court.
The court makes a final decree closing the case when the estate has been fully administered. Before the payments required by the plan are made, a chapter 11 estate may be declared fully administered and closed.
Call Now For An Appointment For A Free Debt Solutions Consultation!
We believe so passionately in our holistic solution to bankruptcy that we are not only providing a free debt recovery program to all new customers, but also to old customers. There is simply no quicker way to rebuild credit after a bankruptcy in Oregon than by filing your bankruptcy case with Northwest Debt Relief Law Firm.
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The post What Happens When You File For Bankruptcy In Oregon? appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief Law Firm.
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.