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New York has adopted a new Uniform Voidable Transactions Act (“NYUVTA”), to replace New York State’s existing fraudulent conveyance law, which was over 100 years old.NYUVTA is effective as of April 4, 2020. Transfers that occurred prior to April 4, 2020 are governed by NYS former fraudulent conveyance law.NYUVTA can be found at N.Y. Debt. & Cred. Law §§ 270-281NYUVTA provides for a 4 year statute of limitation, unlike NYS’s former fraudulent conveyance law, which provided for a 6 year statute of limitations. NYUVTA also provides for a period of one year after the transfer in question to avoid a transfer to an insider—similar to the Bankruptcy Code’s insider preference reach back period of one year prior to the petition date, under 11 U.S.C. § 547(b)(4)(B)NYUVTA eliminates the “good faith” element of a fraudulent transfer and adopts the “reasonably equivalent value” requirement of the Bankruptcy Code. 11 U.S.C. 548 NYUVTA provides for a cause of action to avoid transfers to an insider if the insider had reasonable cause to believe that the debtor was insolvent. N.Y. Debt. & Cred. Law §274(b).Insolvency. Plaintiffs pursuing fraudulent transfer claims to collect unsatisfied judgments will now be required to prove insolvency in connection with a fraudulent transfer claim. Burden of Proof. NYUVTA provides that a creditor challenging a transfer bears the burden of establishing the elements of its claim by a preponderance of the evidence, rather than the higher "clear and convincing evidence" standard under the former fraudulent conveyance law.Presumption of Insolvency. NYUVTA provides that consistent with section 303(h)(1) of the Bankruptcy Code, any nonpayment of debts subject to "bona fide dispute" is not presumptive of insolvency; and (ii) expressly provided that the burden to rebut this presumption falls on the "party against whom the presumption is directed.Conflict of Law. NYUVTA provides that the law of a debtor's place of business or if the business is conducted in more than one state, the place in which the business had its chief executive office, at the time that a transfer was made, applies to claims under NYUVTA. Attorneys Fees. Section 276(a) of NYUVTA allows for the award of reasonable attorney fees as an additional amount required to satisfy the creditors’ claim.Foreclosure Sale and Reasonably Equivalent Value. Section 272(b) of NYUVTA provides that reasonably equivalent value is given “if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, non-collusive foreclosure saleFor questions regarding NYS new Voidable Transaction law please contact Jim Shenwick 212 541 6224 [email protected]
Bankruptcy is a legal proceeding that enables an individual (or a company) to have their debts discharged. Before filing, it is best to consult with a bankruptcy lawyer for you to know your options. There are several types of bankruptcy and the bankruptcy case you will opt for will largely depend on your situation.
When declaring bankruptcy under Chapter 7 (also called liquidation) you are to liquidate certain assets will pay off your debts. Secure debts are often prioritized over unsecured debts. Meanwhile, when filing bankruptcy under Chapter 13 (also known as reorganization), you reorganize your debts and propose a repayment plan. In most cases, you are to repay your creditors in a period of three to five years (it depends on your monthly income, relative to the state median). A creditor payment plan schedule longer than five years is prohibited by the federal court. Following federal bankruptcy laws, this type of bankruptcy is generally applicable to those with secured debt and unsecured debt that is below a certain amount. In these circumstances, a trustee will oversee the bankruptcy proceeding.
Early into the bankruptcy process, a bankruptcy trustee is the one who determines if there are no sufficient agencies that can provide the required credit counseling.
When you file for bankruptcy, make sure you do not rush in any of the steps you need to take. Fill-out bankruptcy forms carefully. Trusted bankruptcy lawyers help tremendously with this. Make sure you include detailed debt and financial information. Prepare a list of every creditor you owe and how much you owed from each (regardless if it is a secured or an unsecured debt). The fate of your bankruptcy petition will also largely depend on your monthly income and monthly living expenses, so make sure to document those well.
Bankruptcy cases are reviewed very seriously. Generally, bankruptcy courts require the following documents in every bankruptcy filing:
- schedule of assets and liabilities
- expenditures
- current revenue
- unexpired rentals
- financial statement
A bankruptcy attorney can help you with these and other paperwork required under the bankruptcy code.
Immediately after filing, a bankrupt individual will enjoy bankruptcy protection from lenders through the automatic stay. Following bankruptcy rules, an automatic stay prevents almost all collection activities. You may also save your home from foreclosure when you file for a Bankruptcy Chapter 13. To avoid being sued by debt collectors, however, you must make regular or monthly payments, following your repayment plan. Such payments are facilitated by your bankruptcy trustee. This means debtors and creditors do not necessarily have to interact anymore.
The bankruptcy clerk notifies any lender listed in the schedule of debts. It is then the responsibility of the trustee to hold a meeting between the lenders and the individual filing the petition for bankruptcy. Here, creditors can ask questions to the person who wishes to declare bankruptcy. During the bankruptcy hearing, the bankruptcy court will decide if the repayment plan proposed by the debtor shall be approved or not.
To file for bankruptcy is to have a fresh start at life. If you have questions on how to file or are going through the complexities of bankruptcy law, contact our law firm and get legal advice from trusted bankruptcy attorneys. Call us at the Northwest Debt Relief Law Firm.
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The post Chapter 13 Filings: Bankruptcy Proceedings and Trustees appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
At Shenwick & Associates, we are receiving many calls and emails these days from clients regarding leases which they would like to terminate and the principals' exposure for guarantees and good guy guarantees associated with those leases.
Most commercial tenants in New York City are organized as either corporations or LLCs and those entities are the tenant on the commercial office lease. Almost all landlords in New York City will require a principal or principal’s of the corporation or LLC to guarantee the lease.
There are two types of lease guarantees in New York. A full or complete guarantee for the payment of rent or a “good guy guarantee (“GGG”)”, which is a specialized type of guarantee, which can limit the payment of the guarantor under the lease, if certain conditions enumerated in the GGG are met.
Under the full or complete guarantee, for example if the tenant fails to make lease payments for 6 months and owes $50,000 for rent and additional rent under the lease, the Landlord can demand that the guarantor pay those monies and if payment is not made, the Landlord can sue the guarantor for $50,000.
The second type of guarantee which is known as a good guy guaranty limits the principal’s exposure under the guarantee if certain conditions are met. To be a “good guy” means that the tenant vacates the space and delivers possession to the Landlord without litigation.
An example of how GGG operates is provided below.
The GGG provides that the principal’s financial exposure under the GGG terminates when: 1. the tenants sends notice to the Landlord that it is vacating the leased space (the usual notice required is 90 to 120 days), 2. the tenant must be current on its payment of rent and additional rent, when it sends the notice to the Landlord or current on rent when it vacates the space, 3.the space must be left “broom clean” and 4. keys for the office must be delivered to the Landlord.
Under this scenario, if all 4 conditions are satisfied, the guarantor is released from liability under the Lease. However, if the 4 conditions are not satisfied the guarantor’s liability continues until the lease expires.
If the tenant is unable to pay the rent due under the lease when it vacates the principal will often pay the rent for the tenant to terminate the GGG.
It should be noted that just because the tenant vacated the space, the lease is not terminated and the tenant remains liable for rent until the lease terminates. If the tenant does not pay the rent, the landlord can sue the tenant but not the guarantor.
Under that scenario, the tenant will either close its business or file for chapter 7 bankruptcy.
As can be seen from the above examples, a GGG is a more limited form of guarantee.
The statute of limitations for a landlord to commence an action under a guaranty under New York State law is 6 years. CPLR 213(2)
Under New York custom and practice, the guarantee whether it is a regular guarantee or a GGG can be incorporated into the lease or it can be a separate document.
Under certain limited circumstances based on a NYC administrative law, certain guarantees are void see New York City Administrative Code §22-1005, which provides for the suspension of certain contractual obligations between March 7 and Sept. 30, 2020. The law is applicable to leases for restaurants, bars, retail establishments and other similar non-essential businesses that were required to cease operations due to various COVID-19-related executive orders issued by the Governor. If a guarantor can avail themselves of that law, then the guarantor may be able to avoid liability even if the tenant does not pay rent under the lease.
From a landlord’s perspective once they obtain possession of their space, they need to determine based on cost benefit analysis if they want to sue the tenant or the guarantor for rent that is due and owing. The landlord will consider the cost of litigation (legal fees and court costs) and the ability to collect on a judgment, if one is obtained.
Due to the covid virus, many Landlords are taking a wait and see attitude and not commencing lawsuits immediately, as they may have in the past.
A tenant that wished to vacate a lease should have the lease and the guarantee reviewed by an experienced attorney and the tenant and guarantor need to develop a strategy to deal with the landlord.
Any clients having questions regarding a terminating a lease or with respect to a guarantee or good guy guarantees should contact Jim Shenwick at 212-541-6224 or email him at [email protected]. Jim Shenwick negotiates commercial leases, practices debtor creditor law and bankruptcy law.
Chapter 13 Trustee Thomas Gorman Thomas Gorman is a lawyer. He’s the Chapter 13 Trustee for the Alexandria VA Division of the US Bankruptcy Court. That’s a full time job. He was appointed in 2009. He runs your Chapter 13 bankruptcy hearing, called the “meeting of creditors.” Creditors hardly ever attend the meeting of creditors. […]
The post Chapter 13 Trustee Thomas Gorman by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Chapter 13 Trustee Thomas Gorman Thomas Gorman is a lawyer. He’s the Chapter 13 Trustee for the Alexandria VA Division of the US Bankruptcy Court. That’s a full time job. He was appointed in 2009. He runs your Chapter 13 bankruptcy hearing, called the “meeting of creditors.” Creditors hardly ever attend the meeting of creditors. […]
The post Chapter 13 Trustee Thomas Gorman by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
If you are considering filing for bankruptcy, you should hire an experienced bankruptcy lawyer to help you manage the process. Bankruptcy laws are incredibly complex. A lawyer will make declaring bankruptcy easier, faster, and more successful.
Although you are allowed to file for bankruptcy yourself, it is often an expensive mistake. In this article, you will learn ten reasons why you should hire a bankruptcy lawyer.
10 Benefits of Hiring a Bankruptcy Lawyer
1) Hiring a lawyer increases your chances of successfully eliminating debt. An annual report published by the United States Bankruptcy Court for the Central District of California shows that individuals representing themselves (pro se) have a significantly lower bankruptcy success rate than individuals represented by a lawyer. In the case of Chapter 13 Bankruptcy, debtors represented by a lawyer are more than ten times more likely to reach a successful outcome than individuals representing themselves.
2) A lawyer can help you decide if bankruptcy is the right option for you. It is essential to evaluate and understand all of the options available to you when you are facing overwhelming debt. While it may seem like bankruptcy is your only choice, a lawyer may have a better solution for managing your debt without declaring bankruptcy.
3) You don’t know which bankruptcy option is best for your situation. An experienced bankruptcy lawyer will review your financial situation and explain your bankruptcy options. In Wisconsin, the two most common types of personal bankruptcy are a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy. Wynn at Law, LLC’s lawyers can help you identify which type best fits your current situation and guide you through the entire process.
4) A bankruptcy lawyer will help eliminate all eligible debts. A bankruptcy lawyer will know which debts can be discharged and the best type of bankruptcy to use to discharge your debt. For example, a lawyer can identify and eliminate debts beyond the statute of limitations for collections. You will also save money by fully discharging your obligations and not having lingering debts after completing your bankruptcy.
5) Experience is crucial to success. Do you know the U.S. Bankruptcy Code? Do you know Wisconsin District Courts’ bankruptcy laws? Do you know what property is exempt from bankruptcy? Filing for bankruptcy requires knowledge of the federal code and local case law. An experienced bankruptcy lawyer has worked on hundreds of cases and understands the intricate details of the process. A bankruptcy lawyer will be familiar with current laws, courtroom procedures, the bankruptcy filing process, and filing timeframes.
6) Hiring a lawyer saves you time. Hiring a lawyer saves you countless hours, as you no longer have to spend your time researching and reviewing bankruptcy information. In some cases, a lawyer can identify shortcuts and smooth out the scheduling process. Wynn at Law, LLC’s bankruptcy lawyers will guide you through the complicated procedures and keep you informed at every stage.
7) You don’t have to handle the paperwork. Filing for bankruptcy requires accurate, detailed, and timely paperwork. It is crucial to have precise information and sufficient supporting documentation. While much of the information will come from you, a lawyer can help you complete the paperwork and provide legal advice on your disclosures, valuing assets, income, and expenses.
8) Lawyers have an established relationship with the bankruptcy court, judges, and trustees. A bankruptcy lawyer has gone through this before; they are familiar with bankruptcy courtroom etiquette. Lawyers have already built relationships with the people involved in the process, making communication easier for you. When the trustee asks for additional information or details, your bankruptcy lawyer will be prepared.
9) You get protection from harassment by creditors and collection agencies. Once you hire a bankruptcy lawyer, harassing phone calls from creditors will stop. Once a lawyer represents you, you can inform creditors or debt collectors and force their phone calls and letters to go through your lawyer instead. After you officially file, an automatic stay will be granted, which legally extends your harassment relief.
10) Lawyers offer you peace of mind and protection from uncertainty. Peace of mind goes a long way. You won’t have to worry about mistakes, losing your assets, or preparing for a court appearance. Your bankruptcy lawyer will advise you on what will happen ahead of time, complete your paperwork correctly, and sit by your side in creditor meetings or court. It is your lawyer’s responsibility to fight for the best outcome for you and protect your rights.
Do I Need a Bankruptcy Lawyer?
The logistics of bankruptcy paperwork, credit reporting bureaucracy, and collection agencies’ tactics can be challenging to manage without a lawyer. While you do not need a lawyer to file for bankruptcy – it is strongly recommended.
Are you still considering filing without an attorney, even after reviewing the list of reasons you should hire a bankruptcy lawyer? If so, you should understand some of the risks of representing yourself (pro se representation) when filing for bankruptcy.
The Risks of Filing Bankruptcy Without a Bankruptcy Lawyer
One little mistake could cost you everything. If you file incorrectly or the filing is incomplete, the bankruptcy judge could throw out your case. If that happens, you may not be able to refile for any type of bankruptcy in the near future or if you can refile, you may lose protection from creditors taking action against you. Incorrectly listing assets could cost you not only your debt being discharged, but you could lose the possessions you sought to protect. Bankruptcy lawyers know how to protect your assets and successfully lead you through the process.
Mistakes could mean criminal charges for fraud or perjury. Committing fraud in a bankruptcy case can land you in jail. You cannot hide assets or income from the bankruptcy trustee or judge (even those that you haven’t received yet). Do you know the law well enough to avoid this serious situation? Did you sign over a vehicle, deed property, gift money, or other assets to a friend or relative? A bankruptcy lawyer will help you file your petition and truthfully list your assets in a way that protects you from criminal charges.
You may end up paying more of your debt. When communications between the bankruptcy trustee and your creditors occur, can you respond without negatively impacting your bankruptcy discharge? If a creditor files a lawsuit or contests your discharge of debt – how will you respond? A bankruptcy lawyer can protect your interests, effectively communicate with all parties involved, and save you money in negotiating with creditors.
Get a Free Consultation with a Wisconsin Bankruptcy Lawyer
Meeting with a bankruptcy lawyer in the early stages of financial difficulty can allow you to explore all of your debt relief options. If you can’t make regular payments on your existing debt, filing for bankruptcy may be a solution. Wynn at Law, LLC’s lawyers will meet with you to discuss your financial situation and help you determine if bankruptcy is right for you.
Contact Wynn at Law, LLC for a free bankruptcy consultation: 262-725-0175
Wynn at Law, LLC has law offices in Lake Geneva, WI, Delavan, WI, and Salem Lakes, WI. Our lawyers provide legal advice and representation to residents throughout Southeastern Wisconsin. We are a debt relief agency that can help individuals or couples file for bankruptcy relief under the U.S. Bankruptcy Code. Filing for bankruptcy is an intricate legal process. The federal court in the Eastern District of Wisconsin oversees bankruptcy cases for residents of Walworth County, Racine County, and Kenosha County.
The post Why Should I Hire a Bankruptcy Lawyer? appeared first on Wynn at Law, LLC.
If you are considering filing for bankruptcy, you should hire an experienced bankruptcy lawyer to help you manage the process. Bankruptcy laws are incredibly complex. A lawyer will make declaring bankruptcy easier, faster, and more successful.
Although you are allowed to file for bankruptcy yourself, it is often an expensive mistake. In this article, you will learn ten reasons why you should hire a bankruptcy lawyer.
10 Benefits of Hiring a Bankruptcy Lawyer
1) Hiring a lawyer increases your chances of successfully eliminating debt. An annual report published by the United States Bankruptcy Court for the Central District of California shows that individuals representing themselves (pro se) have a significantly lower bankruptcy success rate than individuals represented by a lawyer. In the case of Chapter 13 Bankruptcy, debtors represented by a lawyer are more than ten times more likely to reach a successful outcome than individuals representing themselves.
2) A lawyer can help you decide if bankruptcy is the right option for you. It is essential to evaluate and understand all of the options available to you when you are facing overwhelming debt. While it may seem like bankruptcy is your only choice, a lawyer may have a better solution for managing your debt without declaring bankruptcy.
3) You don’t know which bankruptcy option is best for your situation. An experienced bankruptcy lawyer will review your financial situation and explain your bankruptcy options. In Wisconsin, the two most common types of personal bankruptcy are a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy. Wynn at Law, LLC’s lawyers can help you identify which type best fits your current situation and guide you through the entire process.
4) A bankruptcy lawyer will help eliminate all eligible debts. A bankruptcy lawyer will know which debts can be discharged and the best type of bankruptcy to use to discharge your debt. For example, a lawyer can identify and eliminate debts beyond the statute of limitations for collections. You will also save money by fully discharging your obligations and not having lingering debts after completing your bankruptcy.
5) Experience is crucial to success. Do you know the U.S. Bankruptcy Code? Do you know Wisconsin District Courts’ bankruptcy laws? Do you know what property is exempt from bankruptcy? Filing for bankruptcy requires knowledge of the federal code and local case law. An experienced bankruptcy lawyer has worked on hundreds of cases and understands the intricate details of the process. A bankruptcy lawyer will be familiar with current laws, courtroom procedures, the bankruptcy filing process, and filing timeframes.
6) Hiring a lawyer saves you time. Hiring a lawyer saves you countless hours, as you no longer have to spend your time researching and reviewing bankruptcy information. In some cases, a lawyer can identify shortcuts and smooth out the scheduling process. Wynn at Law, LLC’s bankruptcy lawyers will guide you through the complicated procedures and keep you informed at every stage.
7) You don’t have to handle the paperwork. Filing for bankruptcy requires accurate, detailed, and timely paperwork. It is crucial to have precise information and sufficient supporting documentation. While much of the information will come from you, a lawyer can help you complete the paperwork and provide legal advice on your disclosures, valuing assets, income, and expenses.
8) Lawyers have an established relationship with the bankruptcy court, judges, and trustees. A bankruptcy lawyer has gone through this before; they are familiar with bankruptcy courtroom etiquette. Lawyers have already built relationships with the people involved in the process, making communication easier for you. When the trustee asks for additional information or details, your bankruptcy lawyer will be prepared.
9) You get protection from harassment by creditors and collection agencies. Once you hire a bankruptcy lawyer, harassing phone calls from creditors will stop. Once a lawyer represents you, you can inform creditors or debt collectors and force their phone calls and letters to go through your lawyer instead. After you officially file, an automatic stay will be granted, which legally extends your harassment relief.
10) Lawyers offer you peace of mind and protection from uncertainty. Peace of mind goes a long way. You won’t have to worry about mistakes, losing your assets, or preparing for a court appearance. Your bankruptcy lawyer will advise you on what will happen ahead of time, complete your paperwork correctly, and sit by your side in creditor meetings or court. It is your lawyer’s responsibility to fight for the best outcome for you and protect your rights.
Do I Need a Bankruptcy Lawyer?
The logistics of bankruptcy paperwork, credit reporting bureaucracy, and collection agencies’ tactics can be challenging to manage without a lawyer. While you do not need a lawyer to file for bankruptcy – it is strongly recommended.
Are you still considering filing without an attorney, even after reviewing the list of reasons you should hire a bankruptcy lawyer? If so, you should understand some of the risks of representing yourself (pro se representation) when filing for bankruptcy.
The Risks of Filing Bankruptcy Without a Bankruptcy Lawyer
One little mistake could cost you everything. If you file incorrectly or the filing is incomplete, the bankruptcy judge could throw out your case. If that happens, you may not be able to refile for any type of bankruptcy in the near future or if you can refile, you may lose protection from creditors taking action against you. Incorrectly listing assets could cost you not only your debt being discharged, but you could lose the possessions you sought to protect. Bankruptcy lawyers know how to protect your assets and successfully lead you through the process.
Mistakes could mean criminal charges for fraud or perjury. Committing fraud in a bankruptcy case can land you in jail. You cannot hide assets or income from the bankruptcy trustee or judge (even those that you haven’t received yet). Do you know the law well enough to avoid this serious situation? Did you sign over a vehicle, deed property, gift money, or other assets to a friend or relative? A bankruptcy lawyer will help you file your petition and truthfully list your assets in a way that protects you from criminal charges.
You may end up paying more of your debt. When communications between the bankruptcy trustee and your creditors occur, can you respond without negatively impacting your bankruptcy discharge? If a creditor files a lawsuit or contests your discharge of debt – how will you respond? A bankruptcy lawyer can protect your interests, effectively communicate with all parties involved, and save you money in negotiating with creditors.
Get a Free Consultation with a Wisconsin Bankruptcy Lawyer
Meeting with a bankruptcy lawyer in the early stages of financial difficulty can allow you to explore all of your debt relief options. If you can’t make regular payments on your existing debt, filing for bankruptcy may be a solution. Wynn at Law, LLC’s lawyers will meet with you to discuss your financial situation and help you determine if bankruptcy is right for you.
Contact Wynn at Law, LLC for a free bankruptcy consultation: 262-725-0175
Wynn at Law, LLC has law offices in Lake Geneva, WI, Delavan, WI, and Salem Lakes, WI. Our lawyers provide legal advice and representation to residents throughout Southeastern Wisconsin. We are a debt relief agency that can help individuals or couples file for bankruptcy relief under the U.S. Bankruptcy Code. Filing for bankruptcy is an intricate legal process. The federal court in the Eastern District of Wisconsin oversees bankruptcy cases for residents of Walworth County, Racine County, and Kenosha County.
The post Why Should I Hire a Bankruptcy Lawyer? appeared first on Wynn at Law, LLC.
A bankruptcy filing is a legal procedure that can reduce, reorganize, or wipe-out your debts. Some people attempt to file for insolvency on their own. However, getting the service of a bankruptcy attorney will allow you to file for bankruptcy minus the stress. It would help you enjoy bankruptcy protection through the automatic stay. After declaring bankruptcy, a bankruptcy trustee would be appointed to handle bankruptcy filings.
What is a Bankruptcy Trustee?
Bankruptcy trustees manage payments to each creditor (or debt collector) and liquidation of non-exempt assets of the debtor. Normally, a meeting of creditors is held after filing a bankruptcy petition. Following the bankruptcy law, you are expected to attend the said proceeding (together with the trustee and creditors who wish to attend).
Questions regarding your bankruptcy case and the paperwork you submitted may be asked by the trustee. Trustees also assess if your debts may be discharged or if there are properties that may be liquidated for you to pay your debts.
What are the Reaffirmation Agreements?
When filing a bankruptcy Chapter 7, a reaffirmation agreement may be filed to maintain an asset associated with a secured debt. (You must be certain that you are financially eligible to pay off the said loans). This is another reason why bankruptcy attorneys are necessary when you file bankruptcy. They can give you legal advice and help you decide whether to sign the reaffirmation agreements or not.
How do Bankruptcy Proceedings Work?
Bankruptcy laws are unique, and so are bankruptcy cases. Unlike other legal cases, you are likely not allowed in the courtroom during the bankruptcy proceeding. Discussions will be held with the trustee, creditors, and bankruptcy lawyer. If creditors opt to file an adversarial claim, you may be required to appear in the bankruptcy hearing (especially for a repayment plan under a Chapter 13 bankruptcy type).
What is a Bankruptcy Discharge?
This largely depends on the bankruptcy chapter you opted for. In Chapter 7, once the trustee reports that there are no non-exempt properties or assets after you receive the discharge, the bankruptcy case will be dismissed. There will be no more interaction with the bankruptcy court and trustee. However, if the trustee learns that non-exempt assets exist, he or she will proceed to negotiate with lenders or creditors.
Under the bankruptcy code, if you file a Chapter 13 Bankruptcy, your case will be closed shortly after making your final payments. The discharge will be granted, the final disbursements will be made by the trustee to your debtors, and after the trustee’s final report, the case will be closed.
What are the Consequences of Filing Bankruptcy?
These may vary, depending on the type of bankruptcy you opted for (say, reorganization or liquidation) and your approved payment plan if any. While your economic status could eventually improve, securing credit and a greater amount of loans could be difficult after filing bankruptcy. Being financially responsible, however, can help improve your credit scores a few months after you filed bankruptcy.
Will my Credit Scores Still Improve After Bankruptcy?
If you filed for bankruptcy, the case will appear on your credit report. Both Chapter 7 and 13 bankruptcies may reduce your credit score. However, filing for bankruptcy under Chapter 7 will stay on your credit report longer than under Chapter 13.
Learning how to file a personal bankruptcy case can be difficult. Hire the best bankruptcy lawyers to help you file your bankruptcy petition and fill-out bankruptcy forms correctly. For questions regarding the bankruptcy process, consult Northwest Debt Relief Law Firm.
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The post Questions to Ask About Filing Bankruptcy appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
The 9th Circuit Court of Appeals is the first court of appeals to rule on the issue of whether a bankruptcy court must approve a lease assumption. See Bobka v. Toyota Motor Credit Corp, 968 F.3d 946 (2020).
What happened?
When Melissa Mather Bobka filed a Chapter 7 she was leasing a Toyota Rav4. She wished to keep her vehicle and called Toyota Motor Credit to let them know of her intention to keep the vehicle.
Toyota Motor Credit sent the debtor a Lease Assumption agreement that was signed and filed with the bankruptcy court. The next day the bankruptcy discharge was issued.
Payments on the lease went into default and the vehicle was eventually surrendered. Toyota Motor Credit then sought to collect the past-due balance and the debtor objected stating the debt had been discharged since Toyota failed to follow the requirements of a Reaffirmation Agreement outlined in 11 U.S.C.524(c).
Toyota Motor Credit countered that the requirements of 524(c) pertain only to auto purchase agreements and not to auto leases which are regulated under bankruptcy code section 365(p).
The debtor requested that all collection activity stop and that she be awarded $50,000 in damages.
What the court said.
The bankruptcy court and the district court ruled in Toyota Motor Credit’s favor and held that banks do not need to comply with the cumbersome requirements applied to auto purchase reaffirmation agreements. The debtor then appealed to the Ninth Circuit court of appeals.
In rejecting the debtor’s appeal, the Ninth Circuit Court identified three reasons why a lease assumption agreement does need to follow the stricter rules governing reaffirmation agreements.
- To apply the stricter requirements of reaffirmation agreements to lease agreements would render the language of 365(p) superfluous.
- Courts should to apply specific statutory construction before more general provisions. Section 365(p) specifically deals with lease agreements and should be applied before more general rules of reaffirmation agreements apply.
- Other parts of the Bankruptcy Code suggest that lease agreements are not governed by reaffirmation agreement requirements.
Why is this opinion important?
A great deal of uncertainty has surrounded lease assumption agreements. Some creditors require that debtors sign reaffirmation agreements to assume a lease while others simply rely on one-page lease assumption agreements.
Reaffirmation agreements require court approval, while lease assumption agreements do not. And sometimes bankruptcy judges rule that it is not in the best interest of a debtor to reaffirm an auto loan that is beyond their ability to pay.
A ruling that court approval is not required makes it easier to keep a leased vehicle, although debtors and their attorneys should give serious thought to whether that is a good idea.
Image courtesy of Flickr and Dennis Elzinga.
https://patch.com/new-york/new-york-city/nyc-comptroller-backs-proposed-taxi-driver-bailout-programOriginally appeared on the Patch.com 
New York City Comptroller Scott Stronger has backed a proposal that would bail out taxi drivers burdened with exorbitant debt owed on medallions and worsened by the coronavirus pandemic. (Courtesy of Tim Lee)NEW YORK CITY — New York City Comptroller and mayoral hopeful Scott Stringer has put his weight behind a proposal from the New York Taxi Workers Alliance that aims to bail out thousands of taxi drivers drowning in medallion debt amid the coronavirus pandemic. The plan would write down outstanding loans on medallions to $125,000 and offer up funds to ensure drivers in default can sell a medallion and recuperate all or part of its cost, Stringer announced at a news conference on Thursday. The plan would also reduce the interest on outstanding loans for medallions taxi and offer drivers a way out of the industry without landing in a financial sinkhole, he said. "For decades, driving a cab in New York City was a road to the middle class for immigrants from around the world," Stringer said in a news conference. "But today, the medallion that once promised prosperity and stability is now a financial sinkhole." Should a driver default on a medallion, the city would take back the medallion and place a minimum bid equivalent to the amount owed on it before offering it for sale on the free market, guaranteeing purchase of any medallions that borrowers default on. The taxi workers alliance estimates the plan could cost the city up to $75 million, a rather small amount compared to the $810 million lawsuit Attorney General Letita James filed against the city in February for inflating the value of medallions. The proposal also calls for monthly loan payments to be capped at less than $800 and for interest rates to be kept at or below 4 percent.
New York Taxi Workers Alliance executive director Bhairavi Desai said the bailout is the last chance the industry has to weather the pandemic, which has drastically decreased ridership and left cab drivers in a financial lurch for months. "It is the only way drivers, the yellow cab industry is going to survive," Desai said. Ricardo Lopez, who has driven taxis for 40 years in New York City, said he is hopeful the plan goes through. He is facing bankruptcy as he works to continue making payments on his medallion. "I paid $60,000 [for my medallion] 40 years ago and have been paying on and off until today," Lopez said. "We are in bankruptcy, literally. If I don't get any help directly, I'm going to go out of this business soon because I can't afford it anymore. The streets are empty." Taxi drivers in New York City watched their fares dry up as the coronavirus pandemic gave way to stay-at-home orders and business closures earlier this year. Although ridership has been on a steady increase since the city ground to a standstill in March and April, taxi industry revenue remains down some 81 percent from where it was in 2019, the New York Times reports. Ridership was also down by about 70 percent in September compared to the year prior. Stringer said while the proposal cannot increase ridership in the face of a pandemic, it can right a wrong and save New York City families staring down the barrel of financial ruin. "Predatory lenders took drivers for a ride and left families in a wreckage of financial distress and despair," Stringer said. "We have a fiscal and moral obligation to make this right—and embracing this plan is a start."
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