Involuntary bankruptcy cases are where creditors file a petition to put a debtor into bankruptcy. They can be filed against individuals, as well as entities. When people think of an involuntary bankruptcy petition against an individual, celebrities and the fallen “well to do” come to mind. People don’t think of their neighbor, who defaulted their first or second mortgage a year or two ago. The Covid-19 pandemic has seen states restricting foreclosure actions. This is frustrating mortgagees holding mortgages where the debt exceeds the property’s value. So, they are using an alternative remedy, to get control of their collateral: involuntary bankruptcy cases. We have seen individual involuntary cases filed in a “bad faith” effort to avoid regular debt collection processes. They can be dismissed with the petitioners sanctioned severely. However, it is possible to file one, in good faith, and put someone into bankruptcy. The summons in an involuntary bankruptcy petition is served by first class mail. People mistakenly think that service was improper because the summons was not hand delivered. If you receive a summons, in any manner, don’t ignore it. Doing so can result in your defaulting in the proceeding. Then you start losing rights. Regaining those rights costs money. For some, the involuntary petition should be contested and fought, due to the dire consequences to them. For others, it may be the realization of the inevitable. Every case, like every person, has its idiosyncrasies. If you receive a summons issued by a bankruptcy court, contact a bankruptcy lawyer to discuss your rights and options. The post Individual Involuntary Bankruptcy Cases Are Coming appeared first on Wayne Greenwald, P.C..

If just one person in the marriage is filing bankruptcy, we still need a whole family budget. The question comes up all the time.  “Can I file bankruptcy and leave my wife/husband out of it.” The answer to that is, Yes. But to get your case approved, we need to submit a whole family budget. […] The post If one of you is filing, we still need a whole family budget by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

   In a fairly egregious factual situation, a bankruptcy court in Massachusetts awarded debtor's counsel $17,302.50 in fees and $261.60 in costs for correcting a mortgage company's minor error that in turn lead to an attempt by the mortgage to charge the debtor $130,000 in improper debt.  In re Miralda, case No 09-10853-MSH, 2020 Bankr. LEXIS 3006 (Bankr. D.Mass. 27 October 2020).    The matter originated from a chapter 13 case filed by Mr. Miralda on 2 February 2009.  GMAC Mortgage held a second mortgage on the debtor's home.  The debtor had attempted to strip the 2nd mortgage, asserting that there was no equity above the amount owed on the 1st mortgage.  This resulted in a stipulation between Mr. Miralda and GMAC Mortgage, drafted by counsel for GMAC Mortgage, agreeing to 6 monthly installments of $966.70 to pay a total of $5,870.18 to GMAC Mortgage, upon receipt of which GMAC would withdraw it's claim and discharge the mortgage.  While all payments were made timely, there was a math error in the computations such that the total payments were $179.98 short of the stipulated total due of $5,980.18.  Mr. Miralda completed the plan and received a discharge on 2 January 2013, at which time his case was closed.  Mr. Miralda dis not deliver a mortgage discharge or or withdraw their claim.  In July 2019 Mr. Miralda started receiving demands from GMAC's successor mortgage holder.  Only then did he and his counsel discover the math error.  Mr. Miraldo promptly sent payment for the $179.88 shortfall and requested a discharge of the mortgage.  Franklin, servicer for GMAC's successor, refused to accept the payment or issue the discharge, asserting that the stipulation had not been complied with due to the $179.88 shortfall, instead insisting on payment of the $130,000 balance due on the 2nd mortgage, given no payments for the nearly decade between completion of the 6 stipulated payments and the date of such discovery.  Mr. Miralda reopened the bankruptcy case to seek an order confirming that the mortgage debt had been satisfied, and requesting fees and costs.  Franklin opposed the relief.  At an initial hearing in November 2019 the court cautioned Franklin that if the evidence showed Mr. Miralda had acted in good faith under the stipulation, the court would award fees and costs to Debtor.    Instead, despite not contesting the salient facts, Franklin choose to go to trial including interrogatories, request for production, and initiating pretrial motions.   Upon the filing of motions for summary judgment by both parties, the court granted the request for fees and costs by debtor, requiring the filing of an affidavit by counsel as to such charges.  An itemized billing affidavit was filed, requesting $17,402.50 in fees and $261.60 in costs with an average fee of $255.17.  Franklin challenged at least 40 of the 72 entries in the billing, requiring debtor to offer a point by point rebuttal.  The court found that fees would be allowed under the lodestar method as set forth in 11 U.S.C. 330(a)(3).  This method selects factors determining reasonable compensation including the rates charged, the amount and reasonableness of time expended, the necessity or benefit to the case, and the experience and skill of counsel in bankruptcy practice1.  Given primary counsel's 35 years of relevant experience, the court found his $300/hr rate reasonable, and found the $250/hr rate of the other counsel for debtor, with 7 years experience, also reasonable.  The court found only one entry to be disallowed as unreasonable, unnecessary, or inefficient: a $100 charge to correct a deficiency in the service of a motion.  The other entries meet the requirement for allowance, and were sufficiently detailed and reasonable that counsel's productivity may be easily assessed.  The time spent by counsel prior to executing a new fee agreement is also compensable. The court did deny a request for an additional $750 for time spent in responding to Franklin's opposition to the fee request, as the court did not find such opposition to be frivolous.  The case points out the risk of continuing litigation by creditors after being warned by the courts of standards they are unlikely to be able to meet, as well as the benefit of debtor's counsel continuing to represent their client long after the case is over if problems arise.1 Lopez v. Consejo de Titulares del Condominio Carolina Court Apartments (In re Lopez), 405 B.R. 24, 30 (B.A.P. 1st Cir. 2009).↩Michael Barnett, Esq.Michael Barnett, PA506 N. Armenia Ave.Tampa, Fl 33609-1703 813 870-3100https://hillsboroughbankruptcy.com       

 https://www.djournal.com/mbj/record-number-of-small-business-bankruptcy-filings-signal-covid-19-distress/article_5ccdcae6-13ab-11eb-8ccf-d37eb8a883c1.htmlOriginally appeared on Mississippi Business JournalA record number of small businesses based in Mississippi filed for protection under Chapter 11 of the U.S. Bankruptcy Code during the second quarter of 2020.That, of course, was when the coronavirus pandemic struck and the first lockdowns and restrictions were put into place across the nation.Chapter 11 allows businesses to reorganize while reaching an acceptable payout to creditors.There were 29 such filings in the second quarter, compared with six in the year-earlier period, according to U.S. bankruptcy data.Such businesses received a stroke of legislative luck when President Trump signed a bipartisan bill that became known as the Small Business Reorganization Act in August 2019, well before the coronavirus struck in March. The act contains Subchapter V, which was subsequently amended by Congress to increase the maximum debt to $7.5 million, up from $2.75 million for one year, till March 27, 2021 under the CARES (Coronavirus Aid, Relief and Economic Security) Act to benefit debtors, as well as creditors.The number of cases in Mississippi are not big, but they belie a much broader toll on smaller businesses.Dawn Starnes, director of the National Federation of Independent Business in Mississippi, said that “most of our businesses” are family owned and don't file for bankruptcy protection – they just close.Ten or fewer employees is typical of membership, she said.The smallest of businesses keep a tight rein on their balance sheet and manage their inventory closely, though “a lot of folks are just hanging on,” Starnes said in an interview.Thus far, in the lower end of the business community there has not been a noticeable rise in bankruptcies, Starnes said.The Payroll Protection Program, which granted qualified applicants $605 a week but which expired in early August, was a major help, she said.Efforts to renew the program are being pursued, she said, but action looks doubtful till after the presidential election, she said.Two-thirds of NFIB members file their taxes as individuals, she said.In 2020, 97 percent are privately owned and comprise 47 percent of the private work force.Most of the NFIB members in Mississippi have fewer that 50 employees, she said.One of those small companies that has filed is Quality Welding and Fabrication Inc. in Columbia.At it peak, Quality Welding and Fabrication had 125 employees.That's before crude oil and natural gas prices dropped dramatically and demand for the company's tanks accordingly, said owner Kenny Breakfield.The viral epidemic-induced slowdown in the economy curtailed production of crude oil in Mississippi by 50 percent, compared with a year earlier, according to Dr. Sondra Collins, senior economist for the state Institutions of Higher Learning.

https://nypost.com/2020/10/22/brooklyn-roasting-company-files-for-bankruptcy-will-close-its-shops/ Originally appeared on New York Post The pandemic has hit another beloved Big Apple hot spot.Brooklyn Roasting Company, known for its colorful logo and flavorful coffee, filed for bankruptcy protection on Thursday and said it’s planning to permanently close its remaining retail locations at 50 W. 23rd St. and at 25 Jay St. in Dumbo Brooklyn, according to its Brooklyn bankruptcy court documents.It will keep three other Brooklyn locations open, including at 200 Flushing Ave. and 45 Washington Ave., a spokesman said.The company is also hoping to save its wholesale business, however, which sells to New York institutions like Columbia University and Goldman Sachs as well as the airports.Founded in 2009 by Jim Munson, a former partner in The Brooklyn Brewery, BRC became a beloved New York brand with as many as seven locations across the city at its peak.But its problems began before the pandemic as the company over-expanded in an effort to be acquired, according to the filing.The coffee roaster had been in discussions in 2018 to be acquired for $22 million by an investment group including the former chief executive of Dunkin’ Donuts, the filing states. At the behest of its investors, BRC invested in new real estate and staff, but the acquisition never happened.By the beginning of 2019, “BRC’s financial condition was poor,” and revenues declined for the first time in 2018 to $9.7 million, according to the filing.Just as the company was getting its footing back — with revenues climbing to $10.3 million in 2019 — the pandemic wiped out more than half of the company’s retail sales. It’s wholesale business was also decimated.It reported an “extraordinary COVID expense” year to date without providing details about the debt.BRC received a $727,000 in federal stimulus loans, but the money ran out in August even as its sales remained “severely depressed,” according to the filing. Munson controls 13 percent of the company, the filing said.“This was a one two punch,” said distressed asset expert Adam Stein-Sapir. “They had a failed acquisition and all the additional costs they signed up for in anticipation of that and then Covid.”

How to Avoid a Foreclosure when Filing for Bankruptcy Most people have a mortgage that lasts for 30 years. There’s a lot that can happen in 30 years. You can lose your job, you can become seriously ill or injured and rack up hundreds of thousands in medical debt, or you can struggle to make ends meet and get over your head in debt. You may find that you have fallen behind on your mortgage payment, and now you owe so much that you are at risk of the house falling into foreclosure. Filing for bankruptcy in Arizona may be able to help you avoid foreclosure, depending on what your other finances look like. Here’s what you need to know: Chapter 7 Bankruptcy Chapter 7  bankruptcy is the “clean slate” bankruptcy that most people think of when they think of filing. However, it applies to unsecured debts, such as personal loans, medical bills, and credit card debts. It doesn’t apply to secured debts like mortgages or car loans. You won’t be able to discharge your missed mortgage payments by filing Chapter 7 bankruptcy in Mesa. However, if you have decided that you don’t want to stay in the house, you can allow the bank to take the house and you can discharge what is left over. Chapter 13 Bankruptcy Chapter 13 bankruptcy is what’s known as a debt reorganization plan, and it’s the right choice if you want to keep your home. Rather than discharging debt, this chapter of bankruptcy puts your debt into a new payment plan – one that you can afford, based on your finances. The plan would include all the money that you owe your mortgage lender, and it would allow you to get current on your mortgage. The Chapter 13 debt repayment plan lasts for three to five years, depending on what you owe and what you negotiate with the bankruptcy court. At the end of that time, you may not have paid off everything you owe. If that is the case, the court may discharge what remains. Sometimes, you may carry more than one mortgage or line of credit related to your home. For example, you may have taken out a home equity loan to try to manage your debts on your own. If that is the case, you may have more debt tied up in your home than what your home is now worth. You may then be able to petition the court to strip these loans from your home, thereby making them unsecured debt. The value of the home doesn’t match the value of the debt, so the debt isn’t exactly secured. If the court agrees to your request, you may be able to discharge that debt entirely. You won’t be able to discharge your mortgage, but you may be able to discharge a second mortgage, home equity loan, or similar line of credit. Talk to a Bankruptcy Attorney Every bankruptcy filing is different because every person’s situation is unique. The best way to know what kind of bankruptcy will work for you – or even if bankruptcy will work for your goals – is to talk with an experienced Mesa bankruptcy attorney. An attorney will closely study your finances and determine the best path of action based on all the nuances and complexities of your case. For example, your home may have already moved into foreclosure, or you may be considering a short sale. Your bankruptcy attorney in Mesa can help you understand how bankruptcy can affect those and other situations. The most important things for you to remember is that you should never resign yourself to inaction. Though your circumstances may feel hopeless at times, they are not. There is a path forward that can help you get your finances under control and get you out from the weight of overwhelming debt. Call My AZ Lawyers today to learn more about how bankruptcy may help you. Our bankruptcy attorneys have been representing individual and business clients for many years, and they can handle even the most complex cases. We are committed to helping you find the best resolution as quickly as possible, and our attorneys are here to offer compassionate guidance at every step of the way. Call us today to schedule a consultation with a bankruptcy attorney and learn more. Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: http://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 How to Avoid a Foreclosure when Filing for Bankruptcy appeared first on My AZ Lawyers.

How to Avoid a Foreclosure when Filing for Bankruptcy Most people have a mortgage that lasts for 30 years. There’s a lot that can happen in 30 years. You can lose your job, you can become seriously ill or injured and rack up hundreds of thousands in medical debt, or you can struggle to make ends meet and get over your head in debt. You may find that you have fallen behind on your mortgage payment, and now you owe so much that you are at risk of the house falling into foreclosure. Filing for bankruptcy in Arizona may be able to help you avoid foreclosure, depending on what your other finances look like. Here’s what you need to know: Chapter 7 Bankruptcy Chapter 7  bankruptcy is the “clean slate” bankruptcy that most people think of when they think of filing. However, it applies to unsecured debts, such as personal loans, medical bills, and credit card debts. It doesn’t apply to secured debts like mortgages or car loans. You won’t be able to discharge your missed mortgage payments by filing Chapter 7 bankruptcy in Mesa. However, if you have decided that you don’t want to stay in the house, you can allow the bank to take the house and you can discharge what is left over. Chapter 13 Bankruptcy Chapter 13 bankruptcy is what’s known as a debt reorganization plan, and it’s the right choice if you want to keep your home. Rather than discharging debt, this chapter of bankruptcy puts your debt into a new payment plan – one that you can afford, based on your finances. The plan would include all the money that you owe your mortgage lender, and it would allow you to get current on your mortgage. The Chapter 13 debt repayment plan lasts for three to five years, depending on what you owe and what you negotiate with the bankruptcy court. At the end of that time, you may not have paid off everything you owe. If that is the case, the court may discharge what remains. Sometimes, you may carry more than one mortgage or line of credit related to your home. For example, you may have taken out a home equity loan to try to manage your debts on your own. If that is the case, you may have more debt tied up in your home than what your home is now worth. You may then be able to petition the court to strip these loans from your home, thereby making them unsecured debt. The value of the home doesn’t match the value of the debt, so the debt isn’t exactly secured. If the court agrees to your request, you may be able to discharge that debt entirely. You won’t be able to discharge your mortgage, but you may be able to discharge a second mortgage, home equity loan, or similar line of credit. Talk to a Bankruptcy Attorney Every bankruptcy filing is different because every person’s situation is unique. The best way to know what kind of bankruptcy will work for you – or even if bankruptcy will work for your goals – is to talk with an experienced Mesa bankruptcy attorney. An attorney will closely study your finances and determine the best path of action based on all the nuances and complexities of your case. For example, your home may have already moved into foreclosure, or you may be considering a short sale. Your bankruptcy attorney in Mesa can help you understand how bankruptcy can affect those and other situations. The most important things for you to remember is that you should never resign yourself to inaction. Though your circumstances may feel hopeless at times, they are not. There is a path forward that can help you get your finances under control and get you out from the weight of overwhelming debt. Call My AZ Lawyers today to learn more about how bankruptcy may help you. Our bankruptcy attorneys have been representing individual and business clients for many years, and they can handle even the most complex cases. We are committed to helping you find the best resolution as quickly as possible, and our attorneys are here to offer compassionate guidance at every step of the way. Call us today to schedule a consultation with a bankruptcy attorney and 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/ 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 to Avoid a Foreclosure when Filing for Bankruptcy appeared first on My AZ Lawyers.

Read Our Bankruptcy Lawyer Reviews! More than 800 Five-Star Reviews from People Like You   Reviews for Bankruptcy Law Office of Robert Weed 814 customer reviews Average rating:5   5 Laura M. Jones,… There are no words to express our gratitude for the care, attention and expertise demonstrated by this wonderful, caring lady. Laura went […] The post Reviews Just reviews by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

When you file bankruptcy, they make it hard to pay your car payment. Be prepared to use the mail. You file bankruptcy and you want to keep your car. You know that means you need to keep paying. Seems like the car finance people would welcome your payments; but they make it hard. That may […] The post When you file bankruptcy, they make it hard to pay your car payment by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

The Credit Effects of Foreclosures and Short Sales A mortgage is a secured debt, meaning that you can’t just decide not to pay and to walk away. If you fall behind on your payments, for any reason, the bank has the right to sell the property and recoup whatever value it can. That is the foreclosure process. The bank seizes your property and sells it at auction, trying to get as much as it can to cover what you still owe on the loan.  If you fall behind on your mortgage and can’t pay it, you may decide to just let your home fall into foreclosure. You may even stop trying to pay anything, knowing that the inevitable will come. You know that you will take a hit to your credit, but you may not feel that you have any other options.  Alternately, you may decide to take a more proactive approach and sell the house yourself before the foreclosure process can start. Yet, if you owe more than the house is worth, you may feel stuck. A short sale may help. With a short sale, you sell the house at a loss, and then you file a short sale request with the bank, indicating your financial hardship. The bank may agree to do so in order to get what it can, knowing that you are unable to pay. In most cases, you would not be responsible for the difference between the sale and the loan amount.  Impact on Your Credit Score Exactly how a short sale or foreclosure will impact your credit score depends on a number of factors, including your credit history, how many payments you missed on the mortgage or how many payments you were late, the status of your other credit accounts, the amount of your debt, and so on.  Typically, reports have shown an average drop in credit scores of anywhere from 150 to 300 points for both foreclosures and short sales. There is debate over whether foreclosure or short sale has a bigger impact, with people in both camps saying that one is better than the other. Reports of when you can apply for traditional financing after a foreclosure or short sale range anywhere from two to four years.  Filing for Bankruptcy Filing for bankruptcy in Phoenix may be another option if you are falling behind on your house payments or want to get out of your debt. Which chapter of bankruptcy you file depends on your finances and your goals. For example, if you don’t want to keep your house, you can file for Phoenix Chapter 7 bankruptcy if you meet the income guidelines. You would relinquish the house, and any remaining debt would be discharged, as well as your unsecured debt.  If you want to keep your house, and it has not already entered the foreclosure process, you can file for Phoenix Chapter 13 bankruptcy and get your debt reorganized. The amount you owe on your mortgage can be included in your debt repayment plan, which lasts for three to five years. You may be able to catch up on what you owe and save your home. You will also get your other debt under control, as you will have a single, affordable monthly payment. Debt that remains at the end of the repayment term may be discharged.  Besides helping you get debt relief, an advantage of bankruptcy is that it doesn’t have the same impact on your credit as a foreclosure or a short sale. You’ll still see a drop in your credit score, but on average, it won’t be as bad as it would have been with a foreclosure or short sale. You’ll be able to rebuild your credit more quickly.  If you are struggling to pay your mortgage or other debts, talk to My AZ Lawyers about how bankruptcy might help you. Our experienced bankruptcy attorneys will carefully review your finances and help you understand how each chapter of bankruptcy can impact you. We’ll help you find the best option to get the maximum debt relief and to meet your goals, whether that is to keep your house or other assets. Call in Phoenix today to meet with a bankruptcy lawyer and learn about 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: http://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 The Credit Effects of Foreclosures and Short Sales appeared first on My AZ Lawyers.