Blogs

Many readers of our blog posts and emails are aware that at Shenwick & Associates, we represent numerous borrowers who have defaulted on or not repaid their SBA EIDL loans. Many borrowers had hoped or prayed that SBA EIDL loans would be forgiven, similar to PPP grants. However, as one Boston lawyer stated, "Hope is not a legal strategy." Borrowers frequently inquire about the actions the government may take if they fail to repay their SBA EIDL loans. If payments are not received by the SBA, the agency will issue a Final Notice of Delinquency and Collection Actions. This notice states that unless you remit the full balance owed or contact the SBA Customer Service Center to discuss repayment options within 15 days from the date of the notice, the SBA may take further actions.Those actions include:1. Acceleration of the entire loan amount being due immediately,2. Interest accruing at the higher default rate,3. A lawsuit against you for the full amount owed,4. Foreclosure against the collateral of the Borrower, as provided in the Loan Agreement and Security Agreement,5. Garnishment of up to 15% of wages,6. Reporting that may disqualify you from obtaining a loan/guaranty from federal agencies,7. Reporting of your name and other information to credit bureaus, which may adversely affect your credit rating,8. Transfer of your account to the U.S. The Department of the Treasury ("Treasury Direct") who will pursue further collection actions, including offsetting any government payments owed to you, 9.Treasury Direct imposes a 30% penalty on the balance of monies owed to the SBA.10. Referral to private collection agencies and the U.S. Department of Justice for litigation, 11. The accruing of “Cancellation of Debt Income” under section 108 of Internal Revenue Code to the Borrower or the Guarantor (on loans greater than $200,000.00), which income is reported to the IRS by the SBA pursuant to a Form 1099-CBorrowers who have defaulted or are contemplating defaulting on an SBA EIDL loan should contact Jim Shenwick, Esq., as soon as possible.
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 held individuals & businesses with too much debt!--------Other SBA EIDL posts by James Shenwick, Esq.Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html

SBA EIDL HARDSHIP PROGRAM

https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html

Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code

https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html

Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!

https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html

EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html

EIDL Loan Default Questions & Answers

https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html

EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html

EIDL Defaulted Loans

https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html

New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html

When you get sued you hang your head.  You feel like the battle is lost when the Sheriff delivers the court summons to your door. 

But getting sued is not the end of the battle. No, getting sued may be the best thing the other side did to equalize the playing field.

Yes, getting sued is a serious thing. You are out of your comfort zone and you face a professional litigator.  But there is something you are overlooking.

Lawsuits empower you to:

• Demand an accounting of all charges and payments.
• Demand a copy of all their documents. (“Motion to Produce Documents”)
• Demand answers to written questions, what lawyers call “Interrogatories.”
• Schedule face-to-face meetings with the people who sued you (the “Deposition”).
• Ask the court to appoint an arbitrator or mediator to facilitate a settlement.

You see, litigation is a two-way street. 

The other truth of debt collection lawsuits is this: debt collection attorneys are not used to being confronted. Nine-five percent of their lawsuits wind in up Default Judgments, meaning the other side never bothered to file a response and they won a judgment by default.  The remaining defendants who file a response are washed away in Summary Judgment motions.

Collection attorneys almost never face an organized, informed and diligent opponent.  They don’t face such competition because the poor defendants don’t know the rules.  They don’t have the tools. And they don’t have the experience.

But here is another fact.  You are an expert in your own case. You know the facts.  You know the dentist is not entitled to his $1,500 fee since the implant was not installed correctly and you have suffered infections and jaw pain ever since.  You know the doctor’s office was supposed to file a claim with insurance but they didn’t do it in time to get paid.  You know the car lot sold you a lemon that started for just 3 days before dying. You know basic facts of the case better than the collection attorney. 

You are frustrated because they don’t answer questions. You are frustrated because they say all the money is due now and they won’t accept payments.  So you quit paying.

It’s time to change your mindset and go on the attack.  Demand answers.  Demand documents.  Demand the answer all your questions.  Schedule meetings–i.e., depositions–with the creditor who sued you.  Go face-to-face.  They didn’t want to answer your 2 minute phone call?  Schedule a half-day deposition with Dr. Arrogant and see how he likes his afternoon golf game canceled. 

Getting sued is nerve racking. But it is also an opportunity.  It is an equalizing event.  Get busy. Get organized.  Demand answers.  And along the way, you might discover that settlement offers come your way, payment plans become possible, and getting sued was the best thing that ever happened to you.

Image courtesy of Flickr

 Fraud Investigations into COVID-Era PPP and EIDL Loans Increasing. JD Supra (link below) has an article stating that fraud investigations into PPP and EIDL loans from the SBA are increasing. https://www.jdsupra.com/legalnews/fraud-investigations-into-covid-era-ppp-3571111/Based on telephone calls to our law offices, we believe that that statement is correct. Clients who are contacted by the Department of Justice regarding PPP or EIDL fraud should contact and retain experienced criminal counsel as soon as possible.
We at Shenwick & Associates are only representing clients with Defaulted SBA loans. 

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 held individuals & businesses with too much debt!

Understand Bankruptcy Exemptions in Portland, Oregon
Exploring Oregon bankruptcy exemptions is crucial for those seeking a fresh start in Portland, OR. At Northwest Debt Relief Law Firm, we understand that the mere mention of bankruptcy can be daunting, but being well-informed is the first step toward financial recovery.
Short Summary:

• Oregon bankruptcy exemptions offer protection for retaining assets during the challenging bankruptcy process.
• The critical exemptions available in Oregon are homestead exemption, motor vehicle exemption, and wild card exemption. 
• Personal property exemptions in Oregon cover household goods, tools of the trade, and more. 
• There are residency requirements for filing bankruptcy in Oregon and the implications for choosing exemptions based on your previous state.
• Navigate strategic asset retention through bankruptcy exemptions, including considerations for exempt and nonexempt property, state or federal exemptions, and benefits for couples.
• Gain insight into protecting retirement accounts under federal legislation and the importance of accurate information to avoid fraudulent behavior.
• Get post-bankruptcy guidance from a bankruptcy lawyer, including advice on rebuilding credit and making sound financial decisions.

We are your advocates, committed to supporting you with knowledge and providing a supportive environment as you navigate bankruptcy’s challenges. In this article, we will expand on the bankruptcy exemptions available for you in Oregon and give you a general review of your choices when choosing bankruptcy.
What are Bankruptcy Exemptions?
Oregon bankruptcy exemptions are pivotal in determining what assets you can retain when filing bankruptcy. These exemptions safeguard certain types and amounts of property from being included in the bankruptcy estate. For the layman, it’s akin to a protective shield for your hard-earned assets in the face of financial adversity.
What Bankruptcy Exemptions are Available in Oregon?
Understanding the intricacies of Oregon bankruptcy exemptions is essential when contemplating bankruptcy. These exemptions enable you to retain essential assets such as:

• Oregon Homestead Exemption: Debtors in Oregon have the right to exclude a maximum of $40,000 of equity in their home or another property, as long as it doesn’t go beyond one block of a town, city limits, or 160 acres. If there are two debtors within a household, the combined homestead exemption cannot exceed $50,000.
• Motor Vehicle Exemption: Debtors are entitled to exempt up to $3,000 for any motor vehicle.
• Wild Card Exemption: Oregon offers protection for any personal property (excluding real estate) not covered by another exemption to a limit of $400.

Exemptions for Personal Property
Exemptions for personal property in Oregon include:

• Household Goods: $3,000, not including that of the spouse
• Clothing, Jewelry, and Miscellaneous Items: $1,800
• Tools of the Trade, Professional Equipment, and Farming Items: $5,000
• Animals, Poultry, and Animal Feed: $1,000 without doubling
• Fuel and Provisions: A 60-day supply
• Healthcare Items: All health aids
• Child Support and Alimony Essential for Support: Full amount
• Compensation for Personal Injuries: $10,000
• Compensation for Crime Victims: Full amount
• Books, Art, and Musical Instruments: $600
• Health and Medical Savings Accounts: Full amount
• Exempt Funds Deposited into a Bank Account: $7,500
• Firearms: One rifle or shotgun and pistol, totaling $1,000
• Tuition Savings Program: $7,500 per deposit account

The value of state exemptions is always adjusted. You can find updated data in the exemption statutes of the Oregon State Legislature.
When Do I File For Bankruptcy Exemptions in Oregon?
Filing for bankruptcy in Oregon is possible after residing there for a minimum of 180 days. A prerequisite for filing Oregon bankruptcy exemptions is a residency of at minimum 730 days before filing. Failure to meet this criterion would entail using exemptions from your previous state.
In cases where your residency spans multiple states within the two years leading up to bankruptcy filing, you must follow the state’s exemptions where you spent most of the 180 days before the two years of filing.
Can I Maintain My Property in Oregon Using Bankruptcy Exemptions?
In bankruptcy, one doesn’t necessarily lose all their assets. Instead, bankruptcy exemption laws act as a safeguard for one’s property. The following breakdown highlights the main exemptions that, when understood, allow for strategic optimization of asset retention:

• Exempt and Nonexempt Property: Assets protected by exemptions, known as “exempt” property, are shielded under the law. If a bankruptcy exemption doesn’t cover a specific asset, it may lead to forfeiture under Chapter 7 or require payment in the Chapter 13 repayment plan.
• State or Federal Exemptions: Individuals can select either the state exemption list or the federal bankruptcy exemptions. It’s crucial to note that combining exemptions from both sets is not allowed. Moreover, those choosing state exemptions still qualify for federal nonbankruptcy exemptions.
• Double Exemptions for Couples: Married partners filing jointly may benefit from potentially doubling exemption amounts when both share ownership of a particular asset.
• Protection of Retirement Accounts: Federal legislation protects for tax-exempt retirement accounts, including 401(K)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, defined benefit plans, and traditional and Roth IRAs. The allowable limit for such accounts is $1,512,350 per person, applicable for cases filed between April 1, 2022, and March 31, 2025.

Can I Stop Problems Regarding Bankruptcy Exemptions in Oregon?
The bankruptcy trustee, an official designated by the court to oversee your case, should assess any claimed exemptions. Should there be a disagreement, the trustee will seek an informal resolution. If it fails, the trustee has the authority to file a formal objection with the court, leaving the final decision on who owns the property to the judge.
Deliberately providing false information will be considered as fraudulent behavior. Bankruptcy fraud carries severe consequences, including potential penalties of $250,000, a 20-year prison term, or a combination of both.
Why Do I Need the Help of a Bankruptcy Attorney?
Engaging the services of a bankruptcy lawyer, especially one like from Northwest Debt Relief Law Firm in Portland, OR, can offer several critical benefits:

• Legal Experience: Bankruptcy law is complex and varies by jurisdiction. Our bankruptcy lawyer is well-versed in the intricacies of the law and can provide guidance tailored to your specific situation.
• Understanding of Local Laws: Laws can vary from state to state. Hiring a local bankruptcy lawyer ensures that you receive advice and representation specific to the laws in Oregon, including those in Portland.
• Assessment of Options: Our bankruptcy lawyer can assess your financial situation and help determine the most appropriate type of bankruptcy for your needs, whether Chapter 7, Chapter 13, or another option.
• Paperwork and Documentation: Filing for bankruptcy involves extensive paperwork and documentation. Our lawyer can help ensure that all necessary forms are completed accurately and submitted on time, reducing the risk of delays or complications.
• Representation in Court: If your case requires court appearances, having our bankruptcy lawyer by your side provides legal representation and support throughout the proceedings.
• Protection from Harassment: Once you file for bankruptcy, creditors are legally required to cease collection activities. Our bankruptcy lawyer can handle communications with creditors, stopping harassing calls and letters.
• Maximizing Exemptions: In Chapter 7 bankruptcy, certain assets are exempt from liquidation. Our skilled bankruptcy lawyer can help you maximize the use of exemptions, allowing you to retain more of your property.
• Post-Bankruptcy Guidance: Our bankruptcy lawyer can offer advice on rebuilding your credit and making sound financial decisions after bankruptcy.

While it’s possible to file for bankruptcy without legal representation, the complexities of the process make it highly advisable to seek legal help. Our bankruptcy lawyer can guide you through each step, increasing the chances of a smooth and successful resolution to your financial challenges.
Give Our Bankruptcy Attorneys a Call Today!
Choosing Northwest Debt Relief Law Firm in Portland, OR, means choosing a team that goes beyond the conventional attorney-client relationship. Our skills extend beyond understanding Oregon bankruptcy exemptions; we prioritize your peace of mind. We believe in open communication, ensuring you are well informed at every step of the process.
Let us be your partners on this journey toward a brighter financial tomorrow. Call us today, and get free debt solution consultations Chapter 7 and 13 bankruptcies!