Bankruptcy vs. Debt Settlement: Which One is Right for Me? Our AZ Bankruptcy Attorneys Explain What Would Be the Best Option Between Debt Settlement and Bankruptcy By the time you are mired in debt and are dealing with non-stop calls and letters from your creditors, you don’t have a lot of options for dealing with your debt – unless you get a sudden influx of cash via the lottery or inheritance. One option is to file for bankruptcy and get some of that debt discharged or reorganize it under a new payment plan. Another option is to attempt to negotiate a settlement with your creditors for how much you can pay them. You may be confused about the best option to take for your circumstances. It’s important that you talk to a bankruptcy lawyer in Tucson to get legal advice about your options for debt relief, but you should also consider these pros and cons of debt settlement and bankruptcy: Debt Settlement By the time creditors are sending you a lot of letters and making a lot of phone calls, they know that you are having a hard time paying. And they know that chances are good that you may not pay the full debt – or may not pay at all. They have an incentive to negotiate with you to pay a lower price to satisfy the debt. Under a debt settlement, you may pay a lower amount or may pay a lower interest rate. Either way, you save money. That is the biggest advantages. Other advantages include getting a solution for your debt without having to hire an Mesa bankruptcy attorney or other professional and without having to file for bankruptcy. The cons of a debt settlement is that it is so uncertain. Creditors are not always willing to negotiate with you, and they may not believe that you are unable to pay. They may make you jump through hoops proving your financial problems, including submitting W-2s, bank statements, and more. Your creditors may also require you to liquidate any assets you have before being willing to write off any of your debt. If the creditor does agree to accept less for your debt, it will likely write off the loss on its taxes. It will then issue a 1099-C to you, which will count as income for you. You will then have to pay more taxes, which can only exacerbate your financial problems. Overall, there are far more potential cons to attempting to negotiate a debt settlement with your creditors than there are advantages. Bankruptcy If you file for bankruptcy, you are seeking debt relief under the law. You aren’t asking your creditors for permission. If you file for Chapter 7 bankruptcy, you can get all of your unsecured credit discharged. If you file for Chapter 13 bankruptcy in Mesa, you can get your debt reorganized under a new payment plan, which can include a smaller amount or a lower interest rate. That plan will be determined by the courts, not your creditors. The pros of bankruptcy are that you can have your debt completely eliminated or significantly reduced, and you don’t have to deal with your creditors at all. Bankruptcy also issues an automatic stay, which will put an immediate end to any contact by your creditors, as well as any legal action that they are bringing, such as wage garnishment. You can finally get control of your finances and breathe easy again. Many people fear that bankruptcy will be a blow to their credit. While it is a black mark on your credit, it can actually be helpful to your credit since it can put an immediate end to your debts and start the clock on your new financial life, rather than allowing high debts and delinquencies to follow you around on your credit history. There really is no disadvantage to bankruptcy if you are struggling with debt. You may have feelings of shame or embarrassment because of the stigma that comes from misinformation about bankruptcy. However, you should remember that bankruptcy is a legal program that is designed for people exactly like you who are struggling with debt, and taking advantage of that program is your right. There is nothing to be ashamed about getting the help you need. In fact, it’s just good financial sense. Call My AZ Lawyers today to learn more about bankruptcy and how it may benefit you. Our bankruptcy attorneys are experienced and knowledgeable, and they are committed to helping you through the process with compassion. They will analyze your finances and help you understand whether Chapter 7 bankruptcy or Chapter 13 bankruptcy would provide the most benefits, based on your goals. Then they will work to help you get the debt relief you need, as quickly as possible. Our bankruptcy law office serves clients in Mesa, Glendale, Tucson, and Phoenix. Call us today to schedule an appointment. 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/ 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 Bankruptcy vs. Debt Settlement: Which One is Right for Me? appeared first on My AZ Lawyers.

Bankruptcy vs. Debt Settlement: Which One is Right for Me? Our AZ Bankruptcy Attorneys Explain What Would Be the Best Option Between Debt Settlement and Bankruptcy By the time you are mired in debt and are dealing with non-stop calls and letters from your creditors, you don’t have a lot of options for dealing with your debt – unless you get a sudden influx of cash via the lottery or inheritance. One option is to file for bankruptcy and get some of that debt discharged or reorganize it under a new payment plan. Another option is to attempt to negotiate a settlement with your creditors for how much you can pay them. You may be confused about the best option to take for your circumstances. It’s important that you talk to a bankruptcy lawyer in Tucson to get legal advice about your options for debt relief, but you should also consider these pros and cons of debt settlement and bankruptcy: Debt Settlement By the time creditors are sending you a lot of letters and making a lot of phone calls, they know that you are having a hard time paying. And they know that chances are good that you may not pay the full debt – or may not pay at all. They have an incentive to negotiate with you to pay a lower price to satisfy the debt. Under a debt settlement, you may pay a lower amount or may pay a lower interest rate. Either way, you save money. That is the biggest advantages. Other advantages include getting a solution for your debt without having to hire an Mesa bankruptcy attorney or other professional and without having to file for bankruptcy. The cons of a debt settlement is that it is so uncertain. Creditors are not always willing to negotiate with you, and they may not believe that you are unable to pay. They may make you jump through hoops proving your financial problems, including submitting W-2s, bank statements, and more. Your creditors may also require you to liquidate any assets you have before being willing to write off any of your debt. If the creditor does agree to accept less for your debt, it will likely write off the loss on its taxes. It will then issue a 1099-C to you, which will count as income for you. You will then have to pay more taxes, which can only exacerbate your financial problems. Overall, there are far more potential cons to attempting to negotiate a debt settlement with your creditors than there are advantages. Bankruptcy If you file for bankruptcy, you are seeking debt relief under the law. You aren’t asking your creditors for permission. If you file for Chapter 7 bankruptcy, you can get all of your unsecured credit discharged. If you file for Chapter 13 bankruptcy in Mesa, you can get your debt reorganized under a new payment plan, which can include a smaller amount or a lower interest rate. That plan will be determined by the courts, not your creditors. The pros of bankruptcy are that you can have your debt completely eliminated or significantly reduced, and you don’t have to deal with your creditors at all. Bankruptcy also issues an automatic stay, which will put an immediate end to any contact by your creditors, as well as any legal action that they are bringing, such as wage garnishment. You can finally get control of your finances and breathe easy again. Many people fear that bankruptcy will be a blow to their credit. While it is a black mark on your credit, it can actually be helpful to your credit since it can put an immediate end to your debts and start the clock on your new financial life, rather than allowing high debts and delinquencies to follow you around on your credit history. There really is no disadvantage to bankruptcy if you are struggling with debt. You may have feelings of shame or embarrassment because of the stigma that comes from misinformation about bankruptcy. However, you should remember that bankruptcy is a legal program that is designed for people exactly like you who are struggling with debt, and taking advantage of that program is your right. There is nothing to be ashamed about getting the help you need. In fact, it’s just good financial sense. Call My AZ Lawyers today to learn more about bankruptcy and how it may benefit you. Our bankruptcy attorneys are experienced and knowledgeable, and they are committed to helping you through the process with compassion. They will analyze your finances and help you understand whether Chapter 7 bankruptcy or Chapter 13 bankruptcy would provide the most benefits, based on your goals. Then they will work to help you get the debt relief you need, as quickly as possible. Our bankruptcy law office serves clients in Mesa, Glendale, Tucson, and Phoenix. Call us today to schedule an appointment. 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/ 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 Bankruptcy vs. Debt Settlement: Which One is Right for Me? appeared first on My AZ Lawyers.

When I was in the fourth grade, our teacher Mrs.[1] Weiner, taught us to be “good citizens.” She did not teach us to be “patriots.” Good citizens: voted, didn’t litter, stay home when sick, didn’t violate the law, stayed informed, looked out for their neighbors and acted consistently with FDR’s “Four Freedoms.[2]” Unfortunately, some folks, who see themselves as patriots, are not good citizens. They decided that their individual privileges include not wearing a mask in public during our Covid-19 pandemic. They raise their individual “right[3]” above the needs of their community. However, patriots raise their communities’ or nations’ needs above their own. We treat the 412 first responders who died on 9/11 as patriots. The 2,501 Americans who died on D-Day are considered patriots. So are many of the 2,403 Americans who died at Pearl Harbor. Our nation made their memory almost immortal. There are 220,000 American dead from Covid-19 and counting. They have not been included among America’s patriots. Certainly, there are first responders, health professionals and care-givers among them. However, they are not even treated as victims of an American tragedy. They’re treated as “statistics.”[4] Horribly, there are citizens who refuse to prevent further tragedy by wearing face-masks in public. They are not being good citizens. And, being a good citizen is a lot easier than being a patriot. They are putting their own comfort and convenience ahead of the nation’s well being. They are endangering, themselves, their families and neighbors.[5] That’s unpatriotic. So, Citizens Unite! Wear face masks in public! Protect yourself and the rest of us. Be a good citizen. You don’t want to piss off Mrs. Weiner. References 1 Yes. She was a Mrs., adamantly. But, that was the early 60’s. 2 Freedom of speech. Freedom of worship. Freedom from want. Freedom from fear. 3 The Bill of Rights really contains “privileges and immunities” Territory of Hawaii v. Mankichi, 190 U.S. 197, 217–18, 23 S. Ct. 787, 791, 47 L. Ed. 1016 (1903). 4 When Josef Stalin was Soviet Munitions Commissar attended a meeting concerning a famine in the Ukraine. An official rose to speak about the tragedy of millions dying of hunger. Stalin interrupted him to say: “If only one man dies of hunger, that is a tragedy. If millions die, that’s only statistics.” 5 Some states have laws that prosecute individuals for criminal exposure of another, potentially lethal virus, HIV. There is a parallel.   The post Good Citizens Unite! appeared first on Wayne Greenwald, P.C..

Hold on to the Nickel until the Buffalo Squeals They stopped making the Buffalo nickel in 1938, long before I was born. But I saw plenty of them when I was young.  I also heard plenty about them from older folks who had lived through the Depression. “Hold on to the nickel until the buffalo […] The post Until the Buffalo Squeals by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

If you are struggling with overwhelming debt, you may be wondering how much it can cost to file for bankruptcy. It is often far less than the debt  you will be eliminating. Paying for an attorney may be concerning when your debt already feels unmanageable; however, in virtually all cases, the cost of declaring bankruptcy is far less than the total expense of bills, late fees, and interest that you would pay without bankruptcy. The cost of filing for bankruptcy will depend on the details of your situation. There are three main categories of expenses to consider when evaluating bankruptcy: Bankruptcy Court Filing FeesBankruptcy Attorney FeesRequired Credit Counseling Courses In this article, Wynn at Law, LLC will explain the costs of filing for bankruptcy in Wisconsin. Breakdown of Wisconsin Bankruptcy Costs There are two common types (also known as chapters) of bankruptcy for individuals in Wisconsin: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. The type of bankruptcy significantly impacts bankruptcy fees and costs.  Note: the cost of declaring bankruptcy is the same for married couples as it is for single individuals when you file with Wynn at Law, LLC. Bankruptcy Attorney’s Fees Attorney’s fees are the largest variable cost for declaring bankruptcy. While it is possible to file for bankruptcy without an attorney, it is typically an expensive mistake. Individuals representing themselves (called pro se) have a significantly lower bankruptcy success rate than individuals represented by an attorney. To protect consumers from excessive fees, bankruptcy judges can review the attorney’s fees and approve or deny the fees as appropriate for a particular case. Chapter 13 Bankruptcy attorney’s fees tend to be more expensive than attorney’s fees for a Chapter 7 Bankruptcy case. Cost of Chapter 7 Bankruptcy Attorney Chapter 7 Bankruptcy is the most popular type of bankruptcy for Wisconsin residents. This type of bankruptcy provides the opportunity to eliminate credit card debt, personal loans, medical bills, and other unsecured debts. Factors that can impact attorney’s fees include: Business OwnershipNumber of CreditorsAsset Ownership and the Need for Asset Protection PlanningForeclosure, Repossession, Eviction, and Other Legal ActionsNon-Dischargeable Debts (Student Loans, Child Support, Alimony, or Past-Due Taxes) Learn more about Chapter 7 Bankruptcy Cost of Chapter 13 Bankruptcy Attorney Chapter 13 Bankruptcy consolidates, reorganizes, and restructures unsecured debt using a repayment plan. Typically, Chapter 13 repayment plans require the restructured debt to be repaid over 3-5 years. This type of bankruptcy is available to individuals and couples that intend to use future disposable income to pay some or all debt.  Chapter 13 Bankruptcy attorney’s fees can often be included in the bankruptcy repayment plan or be scheduled on a payment plan with the attorney. Learn more about Chapter 13 Bankruptcy Schedule a No-Cost Bankruptcy Consultation Don’t let the cost of an attorney keep you from pursuing bankruptcy. Wynn at Law, LLC understands that bankruptcy clients are in financial distress. Schedule a FREE consultation with Wynn at Law, LLC to discuss your financial situation. Our attorneys will help you determine if bankruptcy is the right option for you and Wynn at Law, LLC offers flexible payment plans. The sooner that you contact a bankruptcy attorney, the more money you can save. Bankruptcy Filing Fee Filing a petition for bankruptcy typically requires a court filing fee. The bankruptcy filing fee is standardized across the United States. The Chapter 7 Bankruptcy filing fee is $335. The Chapter 13 Bankruptcy filing fee is $310. If an individual’s income is below 150% of the Wisconsin poverty line, it is possible to get a waiver that eliminates the filing fee for Chapter 7 Bankruptcy. Fee waivers are rare for Chapter 13 Bankruptcy cases. The bankruptcy court may allow you to pay the filing fee using installment payments over a series of weeks or months depending on your income as well. Required Courses To successfully file for bankruptcy, individuals must complete two educational courses. The first required course is a credit counseling session, which must be completed before filing. The second mandatory course is a debtor education course, which must be completed before the debts are discharged. Both of these courses can be completed online and are not excessively time-consuming. Generally, these courses cost less than $50 each. These courses must be taken through an approved provider, and the course provider determines the price. Other Bankruptcy Fees There are a few additional costs and fees that may arise when filing for bankruptcy. Additional costs are typically minimal and can occur due to document printing and commuting/travel. Miscellaneous fees can occur if additional motions need to be submitted or files need to be retrieved from the courts.   An experienced bankruptcy attorney can minimize the risk of additional fees by carefully reviewing the bankruptcy case before filing. How to Reduce Bankruptcy Costs There are a few options to reduce out-of-pocket expenses for individuals concerned about the fees associated with filing for bankruptcy. Some individuals may also qualify for free legal advice through Legal Action of Wisconsin (Racine). This legal aid office helps qualifying Walworth County and Kenosha County residents to reduce the overall cost of bankruptcy, and their lawyers can represent cases pro-bono (for free). Unemployed, low-wage earners, disabled, and elderly individuals may be eligible for fee reductions or waivers. It is possible to file for bankruptcy without an attorney. However, it is essential to remember bankruptcy attorneys have a significantly higher success rate for discharging debts. Is Bankruptcy Worth It? Bankruptcy is an option to consider for excessive debt from medical bills, utility bills, payday loans, vehicle repossession debt, personal loans and credit cards. Depending on the type of bankruptcy, individuals can eliminate all or most debt. If you are facing financial difficulty, meeting with a bankruptcy lawyer can help you evaluate all of your debt relief options. Wynn at Law, LLC offers a FREE bankruptcy consultation. During this consultation, our attorneys will be able to estimate the debt that can be eliminated and will provide a personalized quote for the cost to file for bankruptcy. Contact Wynn at Law, LLC at 262-725-0175 to schedule your consultation at one of our three Southeastern Wisconsin locations. Lake Geneva Law OfficeDelavan Law OfficeSalem Lakes Law Office The post How Much Does Bankruptcy Cost? appeared first on Wynn at Law, LLC.

Chapter 7 Trustee Jason Gold Jason Gold is one of the four Chapter 7 trustees in the Alexandria Virginia Bankruptcy court. When you file a bankruptcy case in Alexandria, the computer assigns you to one of the four trustees.   Being a Chapter 7 Trustee is a part time job for lawyers. Gold is a partner […] The post Chapter 7 Trustee Jason Gold by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

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 jshenwick@gmail.com

   The amount of fees allowed to a substantially oversecured creditor, Farm Credit, in a complicated chapter 12 case was at issue before Judge Collins in In re Kurtenback, 2020 Bankr. LEXIS 3336, Case No 18-01607 (Bankr. N.D. Iowa, 30 Nov 2020).   Debtor had proposed five chapter 12 plans from April 2019 until filing a liquidating plan on 30 October 2020.  The plans were unusual in that they had different options depending on the occurrence of certain circumstances.  Farm credit objected both to the form of such plans, as well as to feasibility.   Farm credit required its counsel to allocate the billing over five different loan files, further complicating the review of the bills.  There was no dispute that Farm Credit was substantially oversecured in the case.   Judge Collins noted that the allowance of fees and costs to oversecured creditors is governed by §506 of the Bankruptcy Code.  This provides To the extent that an allowed secured claim is secured by property the value of which, after any recovery under subsection (c) of this section, is greater than the amount of such claim, there shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement or State statute under which such claim arose.11 U.S.C. 506(b) (emphasis added).  Three elements are required by this section: 1) that the creditor is oversecured in excess of the fees requested;  2) that the fees are reasonable, and 3) that the agreement giving rise to the claim provides for attorney fees.1      The court initially examined the reasonableness of the fees.  The courts have broad discretion under the reasonableness standard to meet the purpose of §506(b) to prevent creditors from failing to exercise restraint in the fees and expenses incurred.  Courts should look to see if the creditor is exhibiting excessive caution, overzealous advocacy, and hyperactive legal efforts.2  This requires an examination of factors including the complexity of the case; the hourly rates charged and the rates in the locality; whether the services were necessary to protect the client's interests; whether attorneys were able to efficiently and competently provide the requires services; whether billing judgment was exercised to avoid duplicate or unnecessary services; the results obtained; and the amount charged in similar cases.  As to the complexity of the case, Judge Collins noted that the multiple plans added to the case's complexity and required additional time and effort by the parties, as did difficulties involving the debtor's participation and cooperation in the case.  However these issues appear to have caused some 'excessive caution' by Farm Credit, which §506 is intended to check.    The court found that the hourly rates charged by Farm Credit were reasonable, being quite a bit below rates charged by Debtor's counsel.  The Court also found that the services of Farm Credit's counsel were generally necessary to protect it's $2,000,000 oversecured position.  However, the court noted duplication of effort and lack of efficiency as described below reduced the necessary fees incurred.  Finally, the court disallowed $6,000 for work on a motion for relief from stay which motion was abandoned as being unlikely to prevail given the creditors oversecured position.  The primary concern of Judge Collins related to efficient and competent services.  While finding that counsel were competent, indeed some of the best attorneys to appear before the court, he found a number of issues as to efficiency.  The Court looks to efficiency with an eye toward fairly preserving the value of the bankruptcy estate, thus imposing on creditor's counsel a requirement that they exercise restraint in the fees and expenses incurred.   The confirmation hearing was scheduled 8 times, with only one evidentiary hearing held, requiring a one day trial.   Farm Credit did a full preparation, including a new witness and exhibit list, exhibits, witness preparation, outline of testimony, preparation of memoranda of authority, cash-flow analyses, and details on objections for each hearing, resulting in a total of 450 hours of work related to at most one full day hearing.  The time entries, such as 'continued work on objections and exhibits for Second Amended Plan hearing in Cedar Rapids; work on lengthy objections, preparation of exhibits and exhibit list; research and briefing on status of plan objections; feasibility and other objection 2.6 hours'  and 'work on preparation of hearing on preliminary hearing in Cedar Rapids on Third Amended Plan; work on Exhibit List, Witness List and Memorandum of Authorities; preparation for presentation' show a pattern of repetitively billing large blocks of time for the same activities inconsistent with this efficiency requirement.  As another example, between May 8 2019 and September 4 2020 Farm Credit's counsel billed for preparing and reviewing witness and exhibit lists over 80 times.  The same type of billing practice exists as to research and briefing feasibility objections, working on trial briefs and memoranda of authorities, and working on cash flow analyses.    Judge Collins had similar issues with the requirement to consider billing judgment and avoid duplicative services.  Billing judgment requires that counsel staff a file in a manner that efficiently provides the most cost-effective representation necessary to a client's interest without redundant, duplicative, and unnecessary services, as well as a final review of the bills to ensure they meet the requirements of §506.  The court found substantial duplication of efforts in the billings submitted by Farm Credit, such as 66.1 hours in billing entries involving multiple counsel billing for reading, reviewing, drafting, and revising the same motions and documents.  At the $300 hourly rate, these duplicative billings account for $19,830.  While proofreading and reworking are an important aspect of diligent lawyering, such diligence must be reasonable under §506 given the circumstances.  The Court also noted a large number of examples of billling in the five separate loan files for the exact same entry, in the amount of 335.7 hours.  The court had insufficient evidence of whether these multiple-file entries were a fair allocation of reasonable time spread over multiple client files or was n improper multiplication of an otherwise reasonable single time entry.  The Court found that counsel in fact obtained excellent results for Farm Credit, preserving the client's oversecured position, but made now showing that its positions or arguments preserved estate property in any meaningful way.  There was no showing of similar cases where similar amounts of fees were charged, though this was likely a unique case.  Debtor's fees for all matters in the case are anticipated to be about $160,000, thus warranting some adjustment of the Farm Credit application.  The Court concluded that a 30% reduction in total fees was appropriate considering all factors above given Farm Credit's failure to meet its burden of establishing that the full amount is reasonable under §506.  The court allowed $153,613.37, and disallowed $65,834.40 in Farm Credit's counsel's fees.1 In re White, 260 B.R. 870, 880 (B.A.P. 8th Cir. 2001) (citing First W. Bank & Trust v. Drewes (In re Schriock Constr., Inc.), 104 F.3d 200, 201 (8th Cir. 1997)).↩2 In re Jointly Administered: Fansteel, Inc., 2017 Bankr. LEXIS 1265, at *8 (Bankr. S.D. Iowa May 9, 2017).↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com  

Frequent Mistakes that Could Put Your Social Security at Risk Your social security is an important asset that you can help support you after you retire – or after you have finished working due to disability. But social security rarely pays enough for you to meet all your expenses. And if something unexpected comes up, you may not have the money you need. You may find yourself in trouble with debt at some point, and you may be relying on your social security income to provide basic support. However, if your debt problems get to the point that your creditors are trying to garnish your bank account, your social security might be at risk. You may be able to file for bankruptcy to stop the garnishment, but if you don’t take preventive measures or don’t act quickly enough, you may not be able to protect some of that social security income. Here are frequent mistakes that could put your social security at risk: Putting Your Social Security into a Bank Account with Other Funds You likely deposit your social security funds into the same bank account that you use for all your money. Social security is a protected source of income. So, if your creditors get a judgement allowing them to garnish your bank account or wages, they are not supposed to be able to take your social security income. The trouble is that if you have been putting your social security into the same account as your other money, there’s no way to prove what money is social security and what money is from other sources. The only thing you can do to protect your money is to put it into a dedicated account. If the only money you are putting into one account is social security money, there can be no question about its source, and it will be protected. You can work with a Gilbert bankruptcy attorney to put a stop to the garnishment, but the best preventive measure you can take to protect your social security is to keep it in a dedicated account. Not Direct Depositing Your Social Security One way you can show how much social security has gone into the account is by setting up direct deposit. Then you will have an electronic record of every amount that has gone into the account and when it hit the account. Setting up direct deposit also protects up to two months of your social security income. The U.S. Treasury requires that banks protect up to two months of deposits from levies and garnishments. Therefore, even if you respond quickly to the original Writ of Garnishment and the creditors still try to seize funds, you will have some protection under federal law. Solutions through Bankruptcy Of course, the best protection against garnishment of your bank accounts and wages by creditors is to talk with a bankruptcy attorney in Mesa about your options for debt relief under Chapter 7 bankruptcy and Chapter 13 bankruptcy. Filing for bankruptcy will issue an automatic stay, which will put an immediate halt to any collection activity or legal proceedings. That doesn’t mean that your creditors will never be able to seize your assets, but it does mean that you’ll be given time to explore your options through bankruptcy. You may be able to file for Chapter 7 bankruptcy and have all of your unsecured debts discharged, or you may be able to restructure your debt under a Chapter 13 bankruptcy debt repayment plan. Your Gilbert bankruptcy attorney will help you understand how each option would benefit you best, dependent on your financial circumstances, such as what kind of debt you owe and how much income you have. Call My AZ Lawyers to learn more about the bankruptcy process and how it may help you get out from under overwhelming debt. Our bankruptcy lawyers will review your finances and talk to you about your goals to help you determine the best course of action. We may be able to help you put an end to garnishments, stop foreclosure, and more. Our bankruptcy law office serves clients throughout Mesa, Glendale, Tucson, and Phoenix. Call us today to schedule a consultation with a bankruptcy lawyer and explore your options for debt relief. 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/ 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 Frequent Mistakes that Could Put Your Social Security at Risk appeared first on My AZ Lawyers.

Frequent Mistakes that Could Put Your Social Security at Risk Your social security is an important asset that you can help support you after you retire – or after you have finished working due to disability. But social security rarely pays enough for you to meet all your expenses. And if something unexpected comes up, you may not have the money you need. You may find yourself in trouble with debt at some point, and you may be relying on your social security income to provide basic support. However, if your debt problems get to the point that your creditors are trying to garnish your bank account, your social security might be at risk. You may be able to file for bankruptcy to stop the garnishment, but if you don’t take preventive measures or don’t act quickly enough, you may not be able to protect some of that social security income. Here are frequent mistakes that could put your social security at risk: Putting Your Social Security into a Bank Account with Other Funds You likely deposit your social security funds into the same bank account that you use for all your money. Social security is a protected source of income. So, if your creditors get a judgement allowing them to garnish your bank account or wages, they are not supposed to be able to take your social security income. The trouble is that if you have been putting your social security into the same account as your other money, there’s no way to prove what money is social security and what money is from other sources. The only thing you can do to protect your money is to put it into a dedicated account. If the only money you are putting into one account is social security money, there can be no question about its source, and it will be protected. You can work with a Gilbert bankruptcy attorney to put a stop to the garnishment, but the best preventive measure you can take to protect your social security is to keep it in a dedicated account. Not Direct Depositing Your Social Security One way you can show how much social security has gone into the account is by setting up direct deposit. Then you will have an electronic record of every amount that has gone into the account and when it hit the account. Setting up direct deposit also protects up to two months of your social security income. The U.S. Treasury requires that banks protect up to two months of deposits from levies and garnishments. Therefore, even if you respond quickly to the original Writ of Garnishment and the creditors still try to seize funds, you will have some protection under federal law. Solutions through Bankruptcy Of course, the best protection against garnishment of your bank accounts and wages by creditors is to talk with a bankruptcy attorney in Mesa about your options for debt relief under Chapter 7 bankruptcy and Chapter 13 bankruptcy. Filing for bankruptcy will issue an automatic stay, which will put an immediate halt to any collection activity or legal proceedings. That doesn’t mean that your creditors will never be able to seize your assets, but it does mean that you’ll be given time to explore your options through bankruptcy. You may be able to file for Chapter 7 bankruptcy and have all of your unsecured debts discharged, or you may be able to restructure your debt under a Chapter 13 bankruptcy debt repayment plan. Your Gilbert bankruptcy attorney will help you understand how each option would benefit you best, dependent on your financial circumstances, such as what kind of debt you owe and how much income you have. Call My AZ Lawyers to learn more about the bankruptcy process and how it may help you get out from under overwhelming debt. Our bankruptcy lawyers will review your finances and talk to you about your goals to help you determine the best course of action. We may be able to help you put an end to garnishments, stop foreclosure, and more. Our bankruptcy law office serves clients throughout Mesa, Glendale, Tucson, and Phoenix. Call us today to schedule a consultation with a bankruptcy lawyer and explore your options for debt relief. 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/ 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 Frequent Mistakes that Could Put Your Social Security at Risk appeared first on My AZ Lawyers.