Abstract: Grifters take advantage of situations, latching on to others for benefits they do not deserve. Bankruptcy has many desirable benefits, especially for mass tort defendants. Bankruptcy provides a centralized proceeding for resolving claims, making it a forum of last … Law Review: Simon, Lindsey, Bankruptcy Grifters (April 1, 2021). Yale Law Journal Read More »

For most people, bankruptcy works. For most people “debt settlement” doesn’t work. One reason.  The debt settlement people charge enormous fees–FDR and NDR charge at least $6,000 to “settle” $40,000 in credit cards (and you still have to pay the settlement). Plus, they usually don’t work . See this email I got this email today […] The post For most people bankruptcy works. For most people, debt settlement doesn’t. by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

   It is fairly rare to see a case brought alleging employment discrimination due to the filing of a bankruptcy.  This allegation gave rise to a complaint under 11 U.S.C. §525(b) in Johnson v. Speedway, LLC, 2021 U.S. Dist. LEXIS 80891, Case no 7:21cv00100 (W.D. Va. 28 April 2021).   The factual situation asserted was that the Johnson worked as an assistant manager at a speedway store.  Due to becoming homeless, with the manager's permission, he had his mail sent to him at the store.  When he subsequently filed a chapter 13 bankruptcy, listing the store's address as his address for the bankruptcy, another employee opened the bankruptcy notice and notified his manager and 'corporate' who determined that Johnson was too much of a liability given the bankruptcy filing, fearing that he would steal money from the store, and terminated his employment (after allowing him to work his final shift, upon which he locked the store and turned in his keys).  Johnson filed an adversary proceeding against Speedway under 11 U.S.C. §525(b), which was transferred to the district court pursuant to 28 U.S.C. §157(d).    Section 525(b) of the bankruptcy code prohibits a private employer from terminating an individual's employment 'solely because' that individual filed for bankruptcy.   The first issue on the motion to dismiss is that §525(b) does not create a private cause of action for such suits.  In order to find such a cause of action courts must consider whether congress intended to create both a private right and a private remedy for violations.  This then requires consideration of whether the statute includes 'rights-creating language.'1   As §525(b) protects filers from discriminatory employment termination, it explicitly confers a right directly on a class of persons including the plaintiff.  The statute includes no language suggesting that Congress intended to preclude a private remedy for the violation of the statute.  The court thus concluded that Congress intended to provide a private right of action and private remedy which the court can award under 11 U.S.C. §105, which gives the court authority to issue any order, process, or judgment necessary or appropriate to carry out the provisions of the Bankruptcy Code.  The court did grant Speedway's motion to dismiss the breach of contract claims, given Virginia's employment-at-will doctrine.  The court likewise dismissed the count for intentional infliction of emotional distress based on Virginia law requiring the showing that the conduct of the defendant be outrageous in character and extreme in degree.  Under Virginpa law the plaintiff must also show that defendant had the specific purpose of inflicting emotional distress or intended the specific conduct knowing emotional distress would likely to result.  The allegations did not meet this standard, resulting in dismissal of that count.  The court allowed the counts under §525(b) to proceed to trial.1 Alexander v Sandoval, 532 U.S. 275, 288, 121 S.Ct. 1511, 149 L.Ed.2d 517 (2001).↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com

How Crippling Medical Debt Contributes To The Growing Bankruptcy Problem How Filing For Bankruptcy Can Put An End To Your Medical Debt Problems In Arizona Medical debt is one of the biggest contributors to bankruptcy filings. There are a lot of reasons that people can get into financial trouble and seek bankruptcy protection. Some people get too easily swayed by the ease and convenience of credit card purchasing. Some people lose a job and aren’t able to find another quickly. Some people get divorced and struggle to put together their financial lives. Some are already struggling with these issues, and then they are made worse by medical debt, while others just sink into debt because of medical costs. It is important that you talk to an experienced Ahwatukee bankruptcy attorney as soon as you can when you realize that you are struggling with debt. Attempting to pay off the debts or find other strategies to deal with the problem on your own can only prolong the problem, making it worse by incurring interest and penalties and maybe even pushing you to take on loans and other debt. Filing for bankruptcy protection in Glendale can put an immediate end to your debt problems. High Medical Costs One reason that medical bills are contributing so heavily to Avondale bankruptcy filings is that medical care just costs so much. If you’ve ever had to see a doctor without insurance coverage, you know this. Even a “simple” visit to get checked out for a cold or infection can cost you hundreds of dollars between the medical visit and the medications prescribed. If you don’t have insurance for a long time, you can easily rack up the medical bills until they become overwhelming. You don’t need to sacrifice your health or your finances. You can get the medical care you need and then protect your finances through filing for bankruptcy. Long-Term Medical Care Can Increase Your Bills Medical bills can add up just from routine visits, but most people end up saddled with high medical costs because of a bigger problem. They get into a serious car accident that requires surgery or ongoing physical therapy. They get cancer and have to get chemotherapy or radiation. They quickly get tens of thousands of dollars in medical debt – if not more. Even if you have insurance, these kinds of medical bills can add up if you are seriously injured or become ill. Insurance doesn’t cover some treatments, and many have limits to how much they will cover. Many people end up selling their house or other belongings just to pay off their medical bills. You don’t have to do that. You just need to talk to a good Gilbert bankruptcy attorney about your options. Medical Costs Continue To Rise The situations that can lead to big medical bills will not end, nor will the costs of medical care come down any time soon. In fact, trends have shown that the cost of medical care has only continued to rise -and dramatically so. Data from the Peterson-Kaiser Health System Tracker showed that medical costs were $3.6 trillion in 2018. They rose from $355 per capita in 1970 to $11,172 per capita in 2018. There are no signs that will be different any time soon. You may be able to protect your finances and your health by shopping for better health insurance or signing up for programs that can bring your costs down, such as prescription discount programs, but you cannot protect against the possibility that you will get seriously ill or injured entirely. There may come a day when you, too, will have insurmountable medical bills. Instead of raising money from strangers on the Internet or trying to sell your house or other things, you can get debt relief by filing for bankruptcy in Tempe. Contact Our Bankruptcy Attorneys To Overcome Your Medical Debts In Phoenix, AZ Call My AZ Lawyers today to talk to a bankruptcy lawyer about your options if you are struggling with overwhelming medical debt or other debts. We represent clients in both Chapter 7 bankruptcy and Chapter 13 bankruptcy, depending on your circumstances and which would give you the maximum benefits. We’ll help you understand how they differ and help you choose which will give you maximum debt relief. We represent clients throughout the Mesa, Phoenix, Glendale, Tucson, and Avondale areas. Contact us today to schedule an appointment with a bankruptcy lawyer to learn more.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post How Crippling Medical Debt Contributes To The Growing Bankruptcy Problem appeared first on My AZ Lawyers.

Disability benefits are there to help people who are seriously ill or injured pay for their medical bills and other expenses while their health keeps them out of work. At the end of 2019, the SSA (Social Security Administration) reported over 16 million Americans were receiving some form of disability with an average monthly benefit […] The post Appealing a Social Security Disability (SSDI) Denial in Pennsylvania appeared first on .

One of the key standards the SSA (Social Security Administration) evaluates when making disability determinations is the presence, type, and severity of a claimant’s disability. To help clarify how the SSA makes its medical judgments, our disability attorneys have been writing a series of disability blog posts about the SSA’s disability guidelines. In the past, […] The post Can I Qualify for Disability Benefits With a Mental Health Issue or Illness? (1680) appeared first on .

Applying for Social Security Disability Insurance (SSDI) benefits is challenging and intimidating. Any small mistake in completing a form could result in your claim being denied. If you failed to provide enough medical documentation, you will probably see a notice of denial in the mail. While this sounds discouraging, it is important to remember that […] The post Help Appealing a Disability Benefits (SSDI) Denial in New Jersey appeared first on .

 New York City restaurants have been hurt by the mandatory closings, reduced operating hours, and outdoor dining requirements imposed by New York State and New York City as a result of the virus.Many restaurants have closed or filed for bankruptcy protection. However, for those that remain open or continue to operate, there may now be some relief thanks to the American Rescue Plan Act, which established the Restaurant Revitalization Fund to provide funding support to restaurants and other eligible businesses. Awards are based on losses incurred as a consequence of the pandemic, calculated as the difference between 2019 and 2020 receipts, less other federal assistance.Restaurants participating in this program can receive up to $10 million per business in compensation for pandemic-related revenue losses, up to a maximum of $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.Who can apply for this relief? According to the SBA, eligible entities who have experienced pandemic-related revenue loss include:RestaurantsFood stands, food trucks, food cartsCaterersBars, saloons, lounges, tavernsSnack and nonalcoholic beverage barsBakeries (onsite sales to the public comprise at least 33% of gross receipts)Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase productsThe above requirements and how to apply can be found at https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fundFor restaurants that remain open and want a second chance at business, the RTF can be a lifeline.The program should reduce the number of restaurants that would have had to close or declare bankruptcy in the future.In addition, this program may give restaurants leverage to renegotiate leases and/or good guy guarantees they previously granted to landlords.The program probably will not help guarantors of leases who have closed and been sued by their landlord. Jim Shenwick   212 541 6224 jshenwick@gmail.com

   The 11th Circuit just recently entered a decision on the liability of credit reporting agencies for continuing to report an obligation owed on a debt discharged in bankruptcy.  In Losch v. Nationwide Mortg. LLC, 2021 U.S. App. LEXIS 12578, Case no. 20-10695 (28 April 2021) the debtor, Losch, initially reaffirmed the mortgage, but rescinded such reaffirmation (with court approval) after the trustee sold the home.  Upon discovering that Esperian was continuing to report a $140,000 balance and that he was delinquent on the mortgage in the amount of $10,000, he contacted the agency to have them correct the issue, but the agency's inquiry with its data furnisher - Nationstar, inaccurately confirmed the prior report.     Losch filed suit under the Fair Credit Reporting Act (FCRA), 15 U.S.C. §1681.  The district court granted summary judgment in favor of Esperian, finding that it's actions were reasonable under 15 U.S.C. §1681e and §1681i, concluding that the statute does not impose any obligation on the credit reporting agency other than notifying the furnisher of the dispute and examining any information the consumer submits.    The 11th Circuit initially concluded that Losch had standing to appeal, which was challenged by Experian asserting that he had not shown damages sufficient to meet the standing requirements.  As noted by the court in Pedro v Equifax, Inc., 868 F.3d 1275, 1279-80 (11th Cir. 2017) a credit report agency's failure to follow reasonable procedures to assure maximum possible accuracy of the information bore a close relationship to the common-law tort of defamation, which was traditionally actionable per-se.  Thus Losch did not need to prove the reporting lowered his credit score, but rather the injury is the false reporting itself.  The credit reports themselves show Experian supplied the report at least 26 times to six entities.  Experian could not verify that these soft inquiries did not result in a creditor receiving the full credit report including the report on Nationstar.   The emotional distress alleged by Losch is a separate concrete injury supporting standing.  Losch testified at deposition and submitted an affidavit that he suffered stress, anxiety, and lack of sleep from the aftermath of the discharge, and that he devoted nearly 400 hours correcting the credit report.    15 U.S.C. §1681e(b) provides that in preparing a consumer report, a reporting agency 'shall follow reasonable procedures to assure maximum possible accuracy' about an individual.   If the completeness or accuracy is disputed by the consumer, the agency shall conduct a reasonable investigation to determine whether the information is accurate.  §1681i(a)(1)(A).  A claim arises under §1681 if the report contained factually inaccurate information, the procedures it took in preparing and distributing the report were not reasonable, and damages followed as a result.   The 11th Circuit initially rejected Experian's argument that the report was not inaccurate, as the bankruptcy discharge is an injunction against certain means of enforcing a debt rather than an expungement of a debt from one's record.  However, as Experian not only reported the existence of the debt, but also the balance owed and the amount past due, as well as how long such amount was past due, such report was inaccurate to support a claim under the statute.     As to the reasonableness of the inquiry undertaken by Experian upon being notified of the error, the court noted that while a reporting agency may initially rely on a data provider (the creditor in this case), once a claimed inaccuracy is pinpointed, an agency needs only to investigate the specific item alleged to be in error.  Experian argued that the unusual facts in this case, an initial reaffirmation, a rescission, and a discharge order which did not specify the mortgage, required more analysis than could be required of the agency.  As Experian failed to even check the bankruptcy docket here, a jury could find it was negligent in discharging its obligation to conduct a reasonable investigation and reinvestigation into the disputed information.  The appellate court did reject Losch's request for damages for a willful violation.  This requires a showing that Experian either knowingly or recklessly violated the FCRA.  Experian's interpretation could reasonably have found support in the courts, as reconfirming the information from the data furnisher prevents a finding of a willful violation.Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com 

Individual chapter 11 reorganization cases often play a role in Entrepreneur Rescue.[1] The Small Business Reorganization Act of 2019 (the “SBRA”) vitalized the process with Subchapter V. Subchapter V provides an expedited, simpler and less expensive route through chapter 11 of the Bankruptcy Code for small businesses and their owners.[2] As we’re often quoted, properly timing any bankruptcy case is essential. Poor timing can result in lost opportunities and higher risks. Properly timing a Subchapter V case is also essential. Mis-timing a Subchapter V case in the Entrepreneur Rescue process can result in ineligibility for Subchapter V and its benefits. Subchapter V and Entrepreneur Rescue Entrepreneur Rescue generally is initiated while the business is winding up. Liabilities are assessed. Non-exempt property is converted to exempt property. Loose ends from the prior endeavor are dealt with. A path forward is charted, Once the business is wound up, its owner may be burdened with debt. A form of bankruptcy relief for the entrepreneur may be considered. If the business owner has assets, a chapter 11 reorganization may be a good strategy. If the business owner has assets and satisfies Subchapter V debt limits, a Subchapter V chapter 11 reorganization could be a better strategy. Timing and a Subchapter V This is where timing becomes tricky. The Bankruptcy Code defines a “small business debtor” as “a person engaged in commercial or business activities.[2]” Some bankruptcy courts interpret this as requiring individuals seeking Subchapter V to have an ongoing business, not as having commercial or business activities which ended before they filed for Subchapter V. Thus, retirees with two closed pharmacies were inclinable for Subchapter V.[3] Similarly, an individual who owned and managed defunct businesses was disqualified from being a Subchapter V debtor.[3] In contrast, some individuals with defunct businesses were deemed qualified for Subchapter V.[4] The result may depend where the case is filed. What This Means to You It means that if: a,) your business is failing; b.) you’re considering closing it or selling it; c.) you are personally responsible for the business’ debts (e.g. guaranties, sale taxes) or have other unmanageable debts; and d.)  you have personal assets which may be exposed to creditors’ collection efforts; you should talk to bankruptcy professional before you close or end your relationship with your business. Discuss appropriate strategies for closing your business and reorganizing yourself using Subchapter V’s benefits and other strategies. Otherwise, closing your business on your own can create new problems and reduce access to useful tools. It’s like when you have a health issue. The sooner you seek professional help, the greater and better your options. This way you can close your business and preserve your access to Subchapter V’s benefits and other options at the same time. Any questions? We’re here to answer them. References 1. Entrepreneur Rescue is the process of preserving and reestablishing entrepreneurs whose ventures were unsuccessful. 2. Subchapter V of chapter 11 offers many advantages to small business debtors. It has a more streamlined process, which translates into less administrative costs. For example, the Debtor does not have to submit a disclosure statement for court approval. It also eliminates some of the most difficult hurdles of chapter 11, like satisfaction of the absolute priority rule. Instead of wiping out the ownership interests in a small business, it merely requires a showing that the debtor is paying its projected disposable income over the life of the plan. But to be able to take advantage of these and other benefits, a debtor must satisfy subchapter V’s eligibility requirements. In re Sullivan, 2021 WL 1250805, at *2 (Bkrtcy.D.Colo., 2021). 2. 11 U.S.C. § 101(51D)(A) 3. In re Thurmon, 2020 WL 7249555 (Bkrtcy.W.D.Mo., 2020) 3. In re Johnson, 2021 WL 825156, at *1 (Bkrtcy.N.D.Tex., 2021). The court also determined that an individual employed as an officer of a non-debtor business without ownership in or ultimate control over that business is disqualified from Subchapter V. 4. See, In re Wright, 2020 WL 2193240 (Bkrtcy.D.S.C., 2020), In re Bonert, No. 2:19-BK-20836, 2020 WL 3635869 (Bankr. C.D. Cal. June 3, 2020), In re Blanchard, 2020 WL 4032411, at *2 (Bkrtcy.E.D.La., 2020). The post Timing Subchapter V And Entrepreneur Rescue appeared first on Wayne Greenwald, P.C..