Child Support and Filing Bankruptcy As a parent in Arizona, it’s the responsibility of yours to provide for your children.  Therefore, this includes paying the child support of yours on time. Arizona doesn’t take this responsibility lightly and also have numerous punishments at the disposal of theirs, which includes incarcerating parents that fail paying their support orders. Additionally, if parents have child support arrearages, declaring chapter seven or even chapter thirteen bankruptcy won’t discharge the debt of child support.  Nevertheless, filing for chapter 13 bankruptcy in Glendale might put you in a position to enable you to get caught up on the payment of yours that you owe for child support.  Let’s take a further look at child support and the various chapters of bankruptcy and your options. Child Support when filing Chapter 7 Bankruptcy When you file for Chapter 7 bankruptcy, there’s an automatic stay which stops anyone from pursuing claims against you. The Automatic Stay doesn’t stop collection actions for unpaid child support. Nonetheless, along with a party looking for back child support from you is permitted to proceed regardless of the simple fact you filed a Chapter seven bankruptcy. Any revenue you get once you file for bankruptcy isn’t considered a part of your bankruptcy estate in a Chapter seven bankruptcy, and may be looked at in determining child support responsibilities and utilized to pay support arrearages. In a Chapter thirteen bankruptcy, nonetheless, any income earned is a part of the bankruptcy estate along with a party seeking to enforce a support obligation should request help from the stay to do it. If an individual that filed for Chapter thirteen bankruptcy is currently governed by a support order and additionally fails to produce support payments, the Bankruptcy Trustee will often raise the stay so the assistance could be recovered.                                                                                         QUESTION: My ex spouse has declared bankruptcy, and now she claims she does not need to pay child support. Is that accurate?                                                                                           ANSWER: Child support payments generally can’t be discharged in bankruptcy. Thus,your wife is completely incorrect. Which means that a parent that owes child support can’t escape this particular responsibility by filing for bankruptcy. Whereas, bankruptcies don’t serve as a stay, or maintain, on measures in order to establish paternity or to change child support obligations. If your co parent has stopped paying kid support, the court and state department that administers support could use various techniques to try to enforce those aforementioned support obligations. The relationship between bankruptcy and child support is complicated.  Therefore, you might require the assistance of an Arizona lawyer acquainted with bankruptcy law. Will Filing a Chapter 13 Get Rid of my Child Support? In a chapter thirteen bankruptcy in Arizona, child support obligations are as essential in the Federal Bankruptcy Court as they’re in the Arizona Family Court. In a chapter 13, child support is considered a priority debt.  Child support arrearages must be paid through your chapter thirteen payment plan.  A chapter 13  repayment plan lasts 3-5 years and is based on what the filer is able to repay.  However, if there is child support, that must be figured into the plan. The substantial difference between a chapter seven and a thirteen is usually that a chapter thirteen stops collection activity for support obligations. A chapter 7 bankruptcy does not stop collection efforts on back child support.  Support collections might be kept because the Bankruptcy Code considers the debtors earnings as home of the estate. Arrearage Child Support Put Into the Chapter 13 Repayment Plan Thankfully, after these payments are stopped, a Chapter thirteen repayment program permits a debtor to manage the debts of theirs, and also by paying child support debt a debtor will lessen the amount he or maybe she would usually spend to satisfy their general creditors. Sometimes debtors are able to minimize just how much they pay to various other creditors by the total amount of support debt they owe through a Chapter 13 filing. Paying back child support should be considered a positive.  Whereas, many debtors usually prefer pay for the needs of their children by paying the owed child support versus paying their arbitrary creditors. Nevertheless, one important part would be that the debtor should stay current by continuing paying their support obligations.  Failure to do so means they won’t get their chapter thirteen discharge.  At the end of the Chapter 13 repayment plan, not only will the filer receive a discharge from their chapter 13 bankruptcy but the filer will also be current on their Arizona child support payments.  One can not happen without the other. Child Support is a Priority Debt As the benefits of providing for minor kids is recognized throughout federal court systems and state, in both Chapter seven and Chapter thirteen bankruptcies, Child support debt is deemed a priority debt which isn’t dischargeable in bankruptcy. As a result, any ordered child support debt won’t be forgiven in case you file for bankruptcy and you’ll be forced to make up the overdue payments. Additionally, child support debt is paid first over other priority debts including tax obligations and also before unsecured obligations. In case you filed a Chapter 13, any support debt must to be paid off entirely through part of your respective repayment program for you to get a discharge from the debts of yours.  Making all of your Chapter 13 repayment plans in conjunction will satisfy your child support and arrearages.  An experienced Arizona BK Lawyer will make sure this happens through a Chapter 13 bankruptcy. If you are considering filing for bankruptcy and are currently paying child support or have child support arrearages, you should seek the assistance of experienced Arizona attorneys.  The professionals at My AZ Lawyers represent clients in Arizona in both bankruptcy law and Arizona family law.  You may get in touch with us by calling (480) 833-8000 or Contact us on-line. 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 Child Support and Filing Bankruptcy appeared first on My AZ Lawyers.

Gallery Sues Landlord, Claiming Covid-19 Shutdown Voids LeaseThe lawsuit contends that since the Venus Over Manhattan gallery is closed by government orders during the pandemic, the lease should be terminated.In early March, the Venus Over Manhattan gallery on the Upper East Side mounted an exhibition of paintings, drawings and wall reliefs by the artist Roy De Forest, the biggest presentation of his work in New York City since 1975.But the show’s prospects may have been limited when Gov. Andrew M. Cuomo of New York banned most gatherings and ordered nonessential businesses to close by March 22 as part of an effort to limit the spread of the coronavirus.Now the gallery is suing its landlord, arguing that the governor’s actions provide a basis to end its lease, which it says started in 2011 at $54,000 per month, and recover its deposit of $365,000.“As a result of the Covid-19 pandemic, Governor Cuomo issued a number of executive orders, which by March 29, 2020, completely frustrated the very purpose of the lease,” a lawyer for the gallery wrote in a complaint filed last week in Federal District Court in Manhattan, adding that the gallery therefore “considers the lease terminated.”The dispute is between companies run by two prominent art collectors, both with significant business experience and neither averse to attention.The gallery’s owner, Adam Lindemann, who once ran an investment firm, briefly set an auction record for Jean-Michel Basquiat in 2016 when he sold a painting by the artist at Christie’s for $57.3 million.The gallery’s Madison Avenue building is listed as a property of the real estate company run, with a partner, by Aby Rosen. He has displayed several Picassos in his Manhattan home and, in 2014, riled some neighbors by erecting on his Long Island estate a 33-foot, painted bronze sculpture of a naked pregnant woman with an exposed fetus.Mr. Margolin said by email that the lawsuit involved “a dispute between a commercial tenant and a landlord” about whether a lease default had taken place. A representative for Mr. Rosen’s company, RFR Holding LLC, declined to speak about the suit.The complaint filed by the gallery says that it considers the lease to have been terminated as of April 1. On March 25, it added, the gallery informed the landlord that it was vacating the premises on or about July 1 and demanded the return of the $365,000 deposit.On April 8, the complaint states, the landlord declared a default under the lease and on April 23 seized the deposit.The gallery claims it is entitled to end the lease based on two arcane legal doctrines: “frustration of purpose,” described in the complaint as when an unforeseen event destroys the reason for a contract; and “impossibility of performance,” which the complaint says allows performance of a contract to be excused if governmental activities render that performance impossible.Joshua Stein, a commercial real estate lawyer not involved in the lawsuit, said that frustration of purpose is one of several doctrines businesses have considered asserting during the pandemic as a basis to withhold rent or walk away from a lease.

CNBC ~ May 19, 2020https://www.cnbc.com/2020/05/19/how-to-navigate-bankruptcy-if-the-coronavirus-wrecks-your-business.html

A Wave of Small Business Closures Is on the Way. Can Washington Stop It?Bipartisan proposals address weaknesses of a hastily passed aid program.One of the great threats to the post-pandemic economy is becoming clear: Vast numbers of small and midsize businesses will close permanently during the crisis, causing millions of jobs to be lost.The federal government moved with uncharacteristic speed to help those businesses — enacting the Paycheck Protection Program, with $669 billion allocated so far.But there is a problem. The structure of the program is not particularly well suited to the type of crisis that millions of businesses face. The program may have bought businesses some time, but in its current shape it will not enable many of them to remain solvent long enough to emerge from the other side of the pandemic in some viable form.Rather, it is more tailored to what the crisis looked liked when shutdowns first took place in the olden times of March 2020, when it seemed that business closures would be a short-term blip and everyone might be able to get back to normal by summer.It was intended to cover eight weeks’ worth of expenses, of which 75 percent must apply to payroll, for firms with under 500 employees. Now it is looking likely that many businesses will face revenue shortfalls for many months.For loans made under the program to be fully forgiven, an employer must maintain pre-crisis employment levels. Now it’s clear many businesses will permanently shift to smaller staffing levels to remain viable, such as restaurants operating at partial capacity.The program is technically available to companies that make a good-faith assertion that they need help to support operations. But it doesn’t distinguish between firms with mild and temporary disruptions and those facing threat of permanent closure.Moreover, the structure of the program, which provides a recipient with a Small Business Administration-backed loan that is then forgiven if certain conditions are met, could make some business owners reluctant to take advantage. They might fear that if they run afoul of the government’s rules, they will have even more debt heaped on top of a failing enterprise.“The risk is that they’ve spent more money on this program than anyone has ever spent on a small-business program in world history, but haven’t changed the trajectory of permanent small-business closures,” said John Lettieri, president of the Economic Innovation Group, a think tank that advocates business dynamism. “If the patient has a gaping chest wound and you give him a bandage, it’s better than nothing but probably isn’t going to keep the patient alive.”When Congress enacted the Paycheck Protection Program as part of a $2 trillion aid package in March, it still seemed plausible that the disruption to the economy would be temporary. And the P.P.P. was devised to ensure that employers kept as many people on their payrolls as possible. But that has often acted at cross-purposes with the goal of having businesses ultimately emerge as viable enterprises.“The P.P.P. makes sense in that incentivizing employers to keep people on payroll and compensating them for doing that is valuable, especially given the overwhelming of the unemployment insurance system that was happening,” said Adam Ozimek, chief economist of Upwork, a website for freelancers. “Conceptually that makes sense, but the issue is trying to do that and at the same time address the issue of massive small business insolvency that we are increasingly facing.”Mr. Ozimek is dealing with the tension firsthand. In addition to his job as an economist studying labor markets, he is co-owner of Decades, a bowling alley, restaurant and bar in Lancaster, Pa. Before the pandemic, it employed the equivalent of 35 full-time employees, but it now needs fewer workers while takeout food is its only business. It has taken a P.P.P. loan.Leading economists have identified the mass closure of service-oriented businesses as a particular risk for the medium-term future of the economy. One survey of 5,800 small businesses conducted in late March found that only 47 percent expected to still be in business at the end of the year if the crisis lasted four months.“The loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes,” Jerome Powell, the Federal Reserve chair, said in a speech last week. “These businesses are a principal source of job creation — something we will sorely need as people seek to return to work.”There’s not much the government can do if a health crisis renders some types of businesses, especially those where large groups of people gather, nonviable indefinitely. But there are several ideas circulating on Capitol Hill to try to address the potential of mass small business closures.Senator Michael Bennet, Democrat of Colorado, and Senator Todd Young, Republican of Indiana, plan to introduce a bill text Thursday on what they call the “Restart Act.” Businesses would receive loans to finance six months’ worth of fixed operating costs and payroll, offered at a low interest rate — no payments due for 12 months — and with a seven-year term.In their bill, the government would forgive the share of the loan devoted to payroll, rent and other fixed expenses based on the company’s revenue decline. So it would act as a loan for companies that are able to weather the downturn, and act as a grant for those more severely affected.Another group of senators, including the Republican Mitt Romney of Utah and the Democrat Joe Manchin of West Virginia, have proposed legislation that would build on the Paycheck Protection Program, in part by expanding the period for loan forgiveness from eight to 16 weeks.In the House, Representatives Dean Phillips, Democrat of Minnesota, and Chip Roy, Republican of Texas, have offered legislation that would, among other steps, extend the duration of P.P.P. loans.The bipartisan nature of the bills shows this issue doesn’t cleave along the usual ideological divides. A key question is whether whatever comes next will enable businesses that are in a deep hole now — but have a viable future once the public health crisis recedes — to get from Point A to Point B.And it would particularly help if any new or revised P.P.P. program would have clearer rules of the game and greater predictability about who is truly eligible and under what terms.“To be kind to both Republicans and Democrats who came up with this plan on the fly, the magnitude of the shock is so much larger than what anybody thought it was at the time,” said Joe Brusuelas, chief economist at RSM, an accounting firm that serves midsize companies. “It makes sense to revisit the program.“Right now what we’re hearing from our clients is that they are frustrated and confused.”

People ask, “what’s involved in chapter 7 personal bankruptcy case?” Here’s a practical answer: Recognize the problem Investigate professionals Interview professionals Chose and retain professional Chose a course of problem-solving – alternatives to bankruptcy may be preferable Decide to file Determine the best time to file Prepare petition, schedules and statements Take mandatory pre-petition counseling File petition If an incomplete “emergency” petition was filed, finish and file schedules and statements (within 14 days of filing) Provide trustee with required documents (e.g. tax returns, pay stubs, bank records) Attend meeting of creditors (usually around 45 days after filing) – the Trustee asks questions under oath about your assets, liabilities, financial affairs, what’s in your filed schedules and statements. Creditors may also ask questions. Take 2nd required course within 45 days of creditors meeting Wait —within the 60-day period following the creditors’ meeting, the trustee and creditors can challenge you: a.) receiving a discharge of all and specific claims; b.) property claimed to be exempt from creditors. Creditors and the trustee can do additional examination under oath to determine whether and how they would make those challenges If a challenge is asserted, you get to defend it If there are no challenges within that 60 days and the period is not extended You get your discharge It may take a while before the trustee files a final report and the clerk’s office issues the discharge. Don’t worry. Discharge issued Estate administration – If the case has no assets, it will usually be closed when the discharge is granted. If the case has assets, the trustee will liquidate them and use the proceeds to pay creditors. The trustee may have claim to recover estate assets and voidable transfers. That will involve litigation and delay the distribution to creditors and closing of the case. Final report and distribution to creditors Case closes This may seem like a lot. It isn’t. We’ve broken it down, so you can see details. When you look at a person you don’t notice the billions of cells, the skeleton, and organs. Same thing here. It’s the bankruptcy edition of the “visible man.” Each case may have its own peculiarities affecting its course. Proper analysis and planning can reduce the consequences of those peculiarities. That’s one more reason to not be self-represented and to hire a lawyer. You probably don’t know what you don’t know. With an experienced lawyer, the process will feel probably feel like: prepare – petition- creditors meeting- wait – discharge. However, these are the details . . . since you all asked for them. Any questions? We’re here to answer them, too. The post What’s Involved In A Bankruptcy? appeared first on Wayne Greenwald, P.C..

From: KiplingerBy: Diane Davis, Contributing WriterMay 15, 2020https://www.kiplinger.com/slideshow/credit/T025-S001-things-to-know-before-filing-for-bankruptcy/index.html

From: Time By: Melissa ChanMay 15, 2020Every cent matters to Kim Jaemin, a cab driver in virus-ravaged New York City, whose diet has been reduced to instant noodles despite working 14-hour shifts, seven days a week.Since the coronavirus pandemic emptied the streets of passengers, the 58-year-old from South Korea has been living on about $65 a day. He buys near-expired, discounted food that he rations to last the week. Two meals of the day consist of the cheapest brand of ramen noodles he can find. “Forget about nutrition,” he says.On May 2, of the seven total passengers he picked up, five did not tip. The other two tipped him less than $3 each. While most of his fellow cab drivers have quit—either because they fear getting sick with COVID-19, which has killed dozens of their colleagues, or because they feel it’s useless to scour a deserted city for riders—Kim says he has no choice but to work more. “I have to make every possible penny, nickel and dime,” says Kim, who lives alone in Queens and scribbles every fare and tip he gets into a notepad.“The only way I could survive,” he adds, “I have to work every day.”That’s the reality for hundreds of New York City’s taxicab drivers who remain on the road, searching for scarce fares as ridership hits record lows. The number of cab rides in the city fell from about 506,000 during the first week of March to roughly 28,500 during the week of May 4, according to the Metropolitan Taxicab Board of Trade (MTBOT), the city’s largest taxi group, which represents more than 5,500 yellow cab owners. The city’s Taxi & Limousine Commission (TLC) did not disclose its data, but the MTBOT, which represents about half of the entire taxi industry, says fares across its fleets have dropped about 94%.“It’s a staggering number that we’ve never experienced before,” MTBOT spokesman Michael Woloz says. “Theaters are dark. Restaurants are closed. All of the traditional fares have disappeared.”Outside of Grand Central Terminal at 9 a.m. on a recent Monday, cabs are lined up, but most are waiting in vain. The world-famous transportation hub is near-vacant, and silence has replaced the usual clamor of rush-hour traffic. “It’s like a movie right now,” Mohamed Eleissawy, a 63-year-old taxi driver, says of the abandoned metropolis.Amid a drop in fares, thousands of drivers have stopped working. In the first week of March, about 3,660 taxi drivers were still on the road, according to the MTBOT’s tally. Now, the group has counted fewer than 600. Thousands have signed up to deliver meals to sick or elderly residents for $53 per route as part of a new citywide program meant to help vulnerable populations and earn drivers more cash. By repurposing their jobs, the TLC said these drivers are “helping us to ensure that no one goes hungry.” But like Jaemin, many of the city’s cab drivers are inching closer to severe hunger themselves.A new survey by the New York Taxi Workers Alliance (NYTWA), which represents about 23,000 taxi and rideshare-app drivers, found more than 82% of drivers have run out of money to buy food or say they will soon reach that point. Out of 919 drivers surveyed, more than 700 said they were unable to pay their rent or mortgage in March and April. The Independent Drivers Guild, which represents more than 80,000 for-hire drivers in the city, said 45% of its members in late April had asked for help securing food. Nearly 70% of the guild’s drivers said they were unable to make rent or mortgage in April, with more saying they won’t be able to pay in May.The TLC said it’s still tracking fatality figures, but Bhairavi Desai, NYTWA’s executive director, says at least 50 drivers have died from COVID-19 so far. “It’s heartbreaking,” Desai says.Desai fears the pandemic will be a “breaking point” for many drivers already suffering financial hardships due to competition with ride-sharing apps and crushing loans they took out to buy medallions, which are permits the city requires to own a yellow cab. In 2018, at least eight professional drivers in the city died by suicide, which advocates blamed on crippling debt. The industry had been showing signs of improvement, especially after the spate of suicides grabbed the attention of local lawmakers, according to Desai and Woloz. Then the pandemic hit.“The yellow cab is the quintessential symbol of New York City,” Desai says. “But these are men and women, who for every time we think the bottom has finally settled in, it falls out all over again.”Now, the futures of cab drivers are more uncertain than ever. As new COVID-19 cases slowly drop in New York City, advocates are hopeful the century-old taxi industry will rebound as it did after the Sept. 11 terrorist attacks and after Superstorm Sandy in 2015. “New York City is the biggest and best,” TLC spokesman Allan Fromberg says, “and we expect the future to be bright again in time.”Desai and Woloz say yellow cabs could even become a vital part of the city’s recovery, transporting both people and goods as some commuters avoid crowded subways. “They know how to navigate through a crisis,” Desai says. “Through every city disaster, drivers have kept working.”But predictions among some in the workforce are grim. “The coronavirus is the last nail in the yellow cab coffin,” says 36-year-old driver Khurshid Ahmed, who owes $370,000 on his medallion loan. “I am tied to this job until my last breath,” he adds. “I am not seeing any future.”Jacob Smith, 49, from Ghana, agrees. Standing on 5th Ave., which was devoid of pedestrians at what used to be rush hour, the yellow cab driver and father of two has little hope. “When the doors open, I’m not sure people will come back,” he says. Smith is set on changing careers as soon as someone, anywhere, will hire him. “New York is famous for the cab,” he says, “but corona will be the end.”Almontasir Ahmed Mohamed, 33, is also weighing a career switch after driving a green cab for six years. He’s studying engineering science at a Kingsborough community college part-time and wonders when he will see his family again in his home country of Sudan. “I stopped thinking about my future,” he says. “The virus has made me confused about my plans.”For Kim, though, the U.S. has been his home for almost 40 years, so going back to South Korea is not an option. Neither is giving up his cab, because driving is all he has known. “This is my job until I die,” he says. “There is no other job I could do.”But as he jeopardizes his own health by getting behind the wheel, Kim says at least one passenger a day will make a racist remark, telling him to go back to his country or speak better English. “I don’t think the city respects us like doctors and nurses, the police, the subway workers,” he says. “We are essential workers, too.”“Without the yellow cabs,” he adds, “the city cannot move.”

From: Asian JournalMay 13, 2020By: Atty. Raymond Bulaon A LOT of people who are burdened with credit card debt often don’t know where to turn for help. They see all the ads on TV, internet, etc. by so-called “debt consolidation” or “debt settlement” companies hoping that this will get them out of debt without filing for bankruptcy. More often than not, however, they end up either getting scammed or disappointed when those companies cannot deliver the big promises made. Buyer beware: Hiring a debt settlement company can actually make your debt problems worse and keep you in debt forever. I am sure this is not what you want, is it? What a lot of people don’t realize is that when they hire a debt settlement company, it doesn’t mean that they are now legally protected from their creditors as long as they are making their monthly payments to the debt settlement company. The debt settlement company, after deducting their fees, simply saves the money in a trust account and will only be able to settle with creditors one by one as money accumulates. So, if they put you on a 3-5 year plan, that means there will be a very long wait for creditors to get their money if they even do. Most of your creditors will not wait that long to get paid. So, what happens? They will sue you! And if they do, the debt settlement company is not going to be able to represent you because they are not lawyers. In the meantime, your debts are still growing because of the added interest, penalties and other collection costs. This is NOT the best way to consolidate your bills. While you are on their program, the creditors will also continue to report damaging information on your credit report until the debt is paid. This is not what you want, is it? Of course, the debt settlement companies will not tell you that. In my opinion, if you wish to consolidate your bills, there is nothing better than doing it through a Chapter 13 bankruptcy. Here are the advantages: (1) You pay 0% interest on credit cards and other unsecured debts. This means all your payments go towards principal. (2) You can be totally debt-free in 3-5 years, (3) In most cases, you only pay based on what you can afford, not based on how much you owe, (4) Your monthly debt payments can be slashed by at least half in most cases, allowing you to have extra money for other expenses, and (5) All kinds of debts can be included in Chapter 13, not just credit cards. So if you have unpaid taxes, medical bills, payday loans, personal loans, student loans, late mortgage payments, etc., all of these can be included in one affordable monthly payment. So if you are struggling every single month even just making minimum payments, you’re probably feeling frustrated because you realize that there is just no way that you can pay all your debts anytime soon. Some people get stressed out once they realized that they owe so much that it is simply not possible to ever become debt-free with the amount of debt they have accumulated given their monthly income. Well, Chapter 13 can be a game changer for you. If you have not explored this legal option, perhaps you should. Finally, the greatest advantage of filing Chapter 13 vs. hiring a debt settlement company is that in Chapter 13, you are 100% protected from all creditor lawsuits, judgments, liens, garnishments, etc. Once your creditors are notified of the filing, they also cannot report you as being late to the credit bureaus anymore. Your credit report will show that your debts are being paid through Chapter 13. Seven years after filing a 13, the bankruptcy will be deleted from your credit report. If you need to purchase a home or a car while in Chapter 13, this is also possible provided that you obtain court approval for the purchase. This is quite common.  

From: NY PostBy: Thornton McEnery May 11, 2020 https://nypost.com/2020/05/11/nyc-taxi-rescue-plan-calls-for-medallions-to-be-250000/

From: Kinston.comBy: Bob MontgomeryPosted: May 11, 2020https://www.kinston.com/news/20200511/legal-experts-expect-personal-bankruptcies-to-rise-with-covid-19