Wynn at Law, LLC, assures clients that a bankruptcy filing isn’t an ending, it’s a beginning and the beginning, while sometimes a little rocky, starts right after a judge discharges your bankruptcy. A Chapter 7 bankruptcy filing stays on a FICO record (aka ‘credit score’) for 10 years from the date you file your bankruptcy. It’s seven years from the date of filing for a completed Chapter 13. Either may sound like a very long time. But first and foremost, it beats the bind that led to the filing. The creditor calls (see related article on the Automatic Stay) are a thing of the past. The stack of bills next to your checkbook might be considerably shorter and probably better matches your paycheck. Credit scores react first A bankruptcy filing is serious business and should be given serious thought prior to filing. That being said, it does have some potential bright spots as a new beginning. Hidden among the bad news that your credit score likely will go down upon filing bankruptcy is the fact that your score probably was in bad shape before the filing anyway. And heading for worse. Another silver lining is that many of your debts are gone; therefore, the bankruptcy will make your debt to income ratio much better. In both Chapter 7 and Chapter 13, delinquent accounts before filing remain on your credit report. In Chapter 7 cases, they will stay on the report for seven years. Chapter 13 debts are often paid off according to the bankruptcy payment schedule in three to five years. Since these debts are repaid all or in part, the records will be removed from your credit report sooner than Chapter 7 debts, which aren’t repaid at all. You can get credit again It isn’t going to happen overnight, but you will have an opportunity to rebuild credit. More, shall we say ‘aggressive,’ lenders swoop in first with high interest credit card and auto loan offerings right after filing. Resist the temptation, if possible. As you rebuild a steady track record of paying on-time things like mortgage payments, car payments, and student loan payments, better chances to rebuild credit will come. Usually a secured credit card opportunity is going to come your way first. Once you establish a good payment record and are living within your means, lenders will see you as a decent risk. Why? They know you can’t file another Chapter 7 bankruptcy again for eight years after your previous Chapter 7 filing. You know your pitfalls The best outcome in a bankruptcy filing is that you’ve learned from and implemented corrections to previous money errors or have been able to put a horrible life event behind you like a medical emergency or car repossession. You’ll know the consequences of paying late, for example. You also learn to budget. And stick to it. Image by Andrew Lozovyi, used with permission The post What happens in life after bankruptcy? appeared first on Wynn at Law, LLC.

Bankruptcy Guide: How Long Does it Stay on My Credit Report? One reason that many people don’t file for bankruptcy even when they should is that they fear what it will do to their credit report. They think that the bankruptcy will stay on their report for a decade or more, effectively destroying their credit score and making it impossible for them to get any new lines of credit, including a mortgage or car loan. The good news is that many of these fears are unfounded. The bad news is that there is some truth in there also. Different Types of Bankruptcy and Your Report How long bankruptcy stays on your credit report depends on what type of bankruptcy you file. If you file for Chapter 7 bankruptcy – the kind that discharges most of your debts – you’ll have that mark on your credit for 10 years. If you file for Chapter 13 bankruptcy – the kind that restructures your debt so that it is more affordable to pay back – you’ll have that on your credit for seven years. It is important to note that a bankruptcy filing also affects accounts listed separately on your credit history. For example, if you file for Chapter 7 in Mesa, your credit card debts are going to be discharged under it. The credit card accounts won’t disappear from your credit report. They will simply show a zero balance and have a note that they were discharged in bankruptcy. These accounts will disappear from your report after seven years, but the bankruptcy filing itself will remain for 10 years. Gradual Diminishing Impact You’ll notice the biggest hit to your credit score right after your bankruptcy filing is final. You are likely to see a drastic drop in your score. However, your credit score won’t continue to fall because of your filing. It will only continue to drop if you continue to make late payments and do other things to harm your credit. You’ll start to see a diminishing impact from your Mesa bankruptcy filing each year. So long as you continue to make good choices and pay your bills on time, you should be able to get approved for new credit in as little as a year. You can even get approved for a prime mortgage loan in as little as two years. Yes, the bankruptcy will stay on your report, but it won’t continue to cause as much damage as you might think. Improving Your Credit You can make big improvements to your credit by taking strategic financial steps. The most important thing you can do right from the start is to pay all your bills on time, every time. Any late payment can show that you are a continued financial risk. You can take baby steps with new credit by opening a secured credit card. This is typically a card that you open through your bank and that is backed by a deposit you have made. The bank is more willing to extend you the credit because it knows that the money to pay the full balance is available in the account. Once you build a history of using that card wisely and paying it promptly, you will be able to open unsecured credit cards with small limits, allowing you to build your credit more. Filing for bankruptcy may stay on your credit history for a long time, but it doesn’t have to be the financial blow you think it will be. Keep perspective while you remain patient, and take the proactive steps you can to improve your credit. You’ll be back on firm, financial footing before you know it. If you are struggling with debt, My AZ Lawyers can help you determine if filing for bankruptcy may be the debt relief solution you need. Our experienced bankruptcy lawyers will carefully review your financial circumstances and make recommendations about whether Chapter 7 bankruptcy or Chapter 13 bankruptcy would be a good solution for you. Our attorneys will help you understand how bankruptcy will impact you in the short and long term, for both good and bad. We serve clients throughout the Phoenix area, Mesa, Glendale, and Tucson. Call us today to talk with a bankruptcy attorney about your options. My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 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 8539 The post Bankruptcy Guide: How Long Does it Stay on My Credit Report? appeared first on My AZ Lawyers.

Bailout Up to $500 Million Proposed for Taxi Drivers Trapped in LoansThe proposal is the most far-reaching step taken in response to a Times investigation into exploitative practices in the industry.New York Times ArticleBailout Up to $500 Million Proposed for Taxi DriversA high-level New York City panel appointed by Mayor Bill de Blasio and other officials intends to propose a bailout for thousands of taxi drivers trapped in exploitative loans that could cost as much as $500 million, several panel members said this week.The panel, which has been meeting regularly since last summer, wants a new public-private partnership to essentially absorb much of the debt that the drivers took on in recent years in order to buy medallions, the city-issued permits that let them own cabs. Many of the medallions were sold at artificially inflated prices by industry leaders who brought about one of the biggest speculative loan bubbles since the American financial crisis.The drivers, nearly all of whom are immigrants, were channeled into reckless loans totaling billions of dollars, leaving many bankrupt and struggling to survive.The proposal would call for the partnership to buy medallion loans at discounted prices and ease the burden on borrowers by forgiving much of the debt and lowering interest payments, panel members said.Officials cautioned that they were still working out the details of the proposal. Mr. de Blasio has not indicated whether he would support it. In the past, he has expressed skepticism about a city-funded bailout. His office said this week it would review the panel’s recommendations after they are finalized.Corey Johnson, the City Council speaker, who appointed most of the panel’s members, said on Wednesday that its emerging plan was an important milestone, an indication that he was open to spending a significant amount of city money to help drivers.“We know that folks in this industry have suffered tremendously,” Mr. Johnson said. “I’m really excited that after six months of painstaking work and effort, the task force is going to be releasing a variety of recommendations that we think could stabilize the industry, plan for the future and help alleviate the suffering.”Some panel members said the partnership would aim to raise up to $500 million, while others, including leaders of the City Council, said the numbers were still being finalized and the report would not list any amounts. The city might have to contribute a portion of the total, but most of the money would come from private donors. Investors could receive incentives for contributing to the fund and would earn a return on the loans.The 19-member panel, which is headed by two powerful members of the Council, is set to release a report with the proposal this month.Even with the mayor’s backing, organizers would have to raise money and convince lenders to sell loans. One issue is that the National Credit Union Administration, a federal agency that is now the largest holder of taxi medallion loans, is already considering selling off its loans to for-profit debt collectors and others who are unlikely to give borrowers a break.Bhairavi Desai, founder of the Taxi Workers Alliance, a group of drivers, who is on the panel, expressed confidence in the plan.“This is the most optimistic I have ever felt about solving this crisis,” said Ms. Desai, adding that several donors have already expressed interest.“We’re going to win,” she said.The proposal would be the most far-reaching step taken so far in response to a New York Times investigation that revealed more than a decade of exploitative practices in the industry.The Times found that a group of industry leaders artificially inflated the price of a medallion to more than $1 million from about $200,000, channeled immigrant drivers into reckless loans to purchase medallions and extracted hundreds of millions of dollars before the bubble burst.The practices set off a crisis that has been intensified by the arrival of ride-hailing companies such as Uber and Lyft. The new apps have reduced the revenue that yellow cabs receive, but virtually all of the hundreds of industry veterans interviewed by The Times said the bubble would have burst even if ride-hailing had never been invented.Taxi industry leaders have denied wrongdoing, describing their tactics as normal business practices and noting that regulators approved their methods. They have blamed the industry’s financial crisis exclusively on Uber and Lyft.

Filing for bankruptcy can be a way for people in Philadelphia to shed the burden of certain types of debt and move forward toward a brighter financial future. However, declaring bankruptcy can have some negative repercussions for Philadelphia residents, chief among these a lower credit score, which may ultimately have an effect on their ability […] The post Can You Buy a Home in Philadelphia If You File for Bankruptcy? appeared first on .

Negotiations a Primer As many of our clients and colleagues know, at Shenwick & Associates we do a lot of negotiating and to date we have had many successes. First, client’s ask what is an “out-of-court” settlement? An out-of-court settlement is a settlement that is obtained without Court intervention and without the use of a mediator or an arbitrator. Simply stated, an out-of-court workout is a negotiation between a party that owes money ( a debtor) and a party who is owed money ( a creditor).  The benefit of an out-of-court negotiation is that they can be cheaper, quicker and more effective than litigation, mediation or arbitration.People often ask what is the secret of our success or the “secret sauce”? Provided below is a “blueprint” that we use in negotiating. Preparation, preparation and more preparation! Many attorneys believe that since they do not need to draft a motion or file a legal brief, in a negotiation, all they need to do is pick up the phone and call their adversary and begin talking. Experience has taught us that nothing could be further from the truth. Prior to commencing a negotiation, a lawyer should engage in extensive fact gathering or due diligence, gathering as much information as they can from various sources about their adversary, counsel for their adversary and the nature of the conflict. For example, is the dispute related to a divorce where inflicting pain is more important than the dollars involved in the case? Does the dispute involve former partners one or both who may feel that a trust was breached as well as money being owed? If you skip the preparation step you are shortchanging your client and undermining your chance of success in the negotiation. At Shenwick & Associates we have developed a “negotiation worksheet” which we complete before we commence any negotiation.Additionally, during the preparation step an attorney should formulate their strategy or tactics for the negotiation. 2.                  Before we pick up the phone and call our adversary to begin the negotiation, we also review our client’s assets and liabilities and we engage in asset protection planning, to the extent possible (consistent with the law). Very simply we want to make sure that the client’s property and assets are protected as much as possible from creditor collection actions if the negotiations fail.3.                  We also advise our client that in every negotiation there are two adversaries, our opponent and the “clock”. Timing is crucial in many negotiations and the pace and timing of a negotiation can often affect the outcome or be the difference between success or failure. If a client is anxious for a negotiation to be concluded quickly, oftentimes they will concede points and end up on the losing side of a negotiation, rather than allowing a professional to determine the pace of the negotiations. For example, does the negotiation involves a foreclosure (with a fixed day for the judgment of foreclosure), or is it a garden-variety debtor-creditor dispute where litigation has not yet been commenced and there are no deadlines pending?4.                  We then commence the negotiation and negotiate aggressively on our client's behalf. As an experienced bankruptcy attorney (having filed hundreds of cases), we will often advise our adversary that if there is no settlement, our client will consider a bankruptcy filing and we will advise our adversary on what their likely recovery will be if a bankruptcy case is filed. This factor alone can often times affect the outcome of a negotiation. 5.                  Also remember to consider the tax consequences of a settlement and specifically section 108 of the Internal Revenue Code.  “Relief of indebtedness” income can be taxable income and that issue must be discussed with the client and factored into the settlement. James Shenwick, Esq. has an LLM in Taxation from New York University Law School and is very familiar with this issue. Finally, while there is no guarantee of success, our 20 plus years of negotiating for clients has shown that using the above “blueprint” will often result in a successful outcome for a client. Client’s or attorneys who have questions about negotiations or negotiation strategy are welcome to contact Jim Shenwick at 212-541-6224 or jshenwick@gmail.com

This Man Got $221,000 Of Student Loans Discharged In BankruptcyZack FriedmanSenior Contributor Personal FinanceAuthor, The Lemonade Life. I write about leadership and greatness.GettyGETTY Can you now discharge your student loans in bankruptcy?Here’s what you need to know.Student Loans: BankruptcyA Navy veteran will have $220,000 of his student loans discharged, even though he is not unemployable, not disabled or wasn’t defrauded. A U.S. bankruptcy judge in New York, Cecilia G. Morris, ruled that Kevin J. Rosenberg will not have to repay his student loan debt because it will impose an undue financial hardship.According the Wall Street Journal, Rosenberg borrowed $116,500 of student loans between 1993 and 2004 to earn a bachelor’s degree from the University of Arizona and a law degree from Cardozo Law School at Yeshiva University. He filed for Chapter 7 bankruptcy in 2018 and asked the court last June to discharge his student loan debt, which had grown to $221,400, including interest. At the time of filing, Rosenberg’s annual salary was $37,600, and after living and debt expenses, his monthly net loss was $1,500.Traditionally, unlike mortgages or credit card debt, student loans cannot be discharged in bankruptcy. There are exceptions, however, namely if certain conditions regarding financial hardship are met.Today In: MoneyThe Brunner Test: Financial HardshipThose conditions are reflected in the Brunner test, which is the legal test in all circuit courts, except the 8th circuit and 1st circuit. The 8th circuit uses a totality of circumstances, which is similar to Brunner, while the 1st circuit has yet to declare a standard.PROMOTED In plain English, the Brunner standard says:the borrower has extenuating circumstances creating a hardship;those circumstances are likely to continue for a term of the loan; andthe borrower has made good faith attempts to repay the loan. (The borrower does not actually have to make payments, but merely attempt to make payments - such as try to find a workable payment plan.)There are variances across federal districts, but that’s the basic framework. To discharge student loans through bankruptcy, an Adversary Proceeding (a lawsuit within bankruptcy court) must be filed, where a debtor claims that paying the student loan would create an undue hardship for the debtor.So, Can You Now Discharge Student Loans In Bankruptcy?This is only one legal ruling. That said, federal judges and Democrat and Republican members of Congress are open to changing the law to make it easier for borrowers to discharge their student loans in bankruptcy. While these tactics may be welcomed by some student loan borrowers, critics may question whether judges should actively try to circumvent the existing law (suggesting that Congress, and not judges, should make the law).

How Often is Too Often to File for Bankruptcy in Arizona? Life happens. And when it does, it can get expensive. You can lose your job and drain your savings or start living on your credit cards. You can get sick and suddenly have tens of thousands of dollars in medical debt to deal with. Or you can get divorced and struggle to learn how to live on one income – or to actually get an income after being the stay-at-home partner for so long. Bankruptcy can give you the debt relief you need when life happens. A bankruptcy attorney in Mesa can help you review your finances to determine if bankruptcy might be right for you and how it would best help you. But what if you’ve already filed for bankruptcy in the past? Can you do it again? The short answer is “yes.” However, there are a few caveats, depending on where you live. Here’s what the rules are in Arizona: Chapter 7 Bankruptcy Chapter 7 bankruptcy in Mesa gives many people the maximum debt relief possible by discharging all of their unsecured debts, such as credit card balances, medical bills, and personal loans. Chapter 7 bankruptcy cannot discharge student loans, back child support, criminal arrears, or more. However, it can clear up so much of your other debt that you will have likely have the means to pay off those other debts and still have a little left over. Just because you righted your finances once by filing for Chapter 7 bankruptcy doesn’t mean you won’t have the need to file for it again. A job loss or illness can strike at any time – and, unfortunately, they can occur multiple times in your life time. Fortunately, you can file for Chapter 7 bankruptcy more than once. In fact, you can file for it every six years from the date of your last filing. Theoretically, you could file for Chapter 7 bankruptcy 10 times or more over the course of your life. However, many judges will look unfavorably on your filing if you have filed multiple times. Judges understand that misfortunate can happen more than once, but they are also alert to the possibility of people abusing the bankruptcy system. Chapter 13 Bankruptcy Chapter 13 bankruptcy helps you to restructure your debt so that it is more affordable. Under this bankruptcy filing, you work out a repayment plan over the next three to five years to pay back what you can to your creditors. You will make one payment, which will almost certainly be on a lower interest rate. You may end up paying less than what you owe when the repayment plan is finished. There are no limits to how frequently you can file for Chapter 13 bankruptcy in Mesa since this type of filing primarily restructures your debt. Some debts can be discharged at the end of your repayment plan, but the focus on this type of filing is repaying what you can. However, you may find that continuing to file Chapter 13 bankruptcy can also become expensive once you factor in attorney fees, credit counseling fees, and the hit that your credit continues to take, resulting in higher interest rates and fees. Choosing to File for Bankruptcy Bankruptcy in Mesa is an important debt relief tool, but it must be used wisely. You should consult with an experienced bankruptcy lawyer to determine when filing for bankruptcy will give you the most benefits and when other debt relief measures may be more appropriate. Your attorney will give you tailored recommendations based on your current financial situation and your financial history, including any previous bankruptcy filings. If you are considering filing for bankruptcy, call My AZ Lawyers today. Our experienced attorneys can help you understand the benefits of Chapter 7 bankruptcy or Chapter 13 bankruptcy for your specific financial circumstances. They will help you understand all your legal rights and responsibilities under bankruptcy, and they can recommend other measures for debt relief, where appropriate. Our bankruptcy law office serves clients throughout the Phoenix area, as well as in Mesa, Glendale, and Tucson. Call our bankruptcy law office today to talk with a bankruptcy attorney about your options for debt relief and what your next steps might be. My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 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 8539 The post How Often is Too Often to File for Bankruptcy in Arizona appeared first on My AZ Lawyers.

Filing for bankruptcy can be a stressful experience, though it is sometimes necessary to relieve or deal with certain forms of debt and move on with your life. And while filing for bankruptcy can liberate people from certain debts, it can also have some negative financial consequences, such as a lower credit score. People who […] The post Can You Buy a Home in New Jersey If You File for Bankruptcy? appeared first on .

From: cnbc.comBy: Sarah O'Brien https://www.cnbc.com/2020/01/07/bankruptcy-would-be-easier-option-for-consumers-under-warren-plan.html

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