Everyone new to bankruptcy needs a guide to this specialized legal realm. Just as you can’t tell the players without a scorecard, it’s hard to make heads or tails of bankruptcy law when it’s new to you. Jon Hayes has what you need to tell priorities from the absolute priority rule.  Exemptions from exclusions. Denial […] The post Getting Started In Bankruptcy Law appeared first on Bankruptcy Mastery.

How Do You Handle Student Loans When Filing For Chapter 13? Student Loan Debt & Bankruptcy: Strategies for Managing Financial Obligations It’s no secret that student loan debt is overwhelming for many of today’s adults. A common reason why individuals reach out to a Chapter 13 bankruptcy attorney is because they are wondering what options they might have to reduce, discharge, or otherwise eliminate their student loan debt. Unfortunately, getting your student loan debt discharged in bankruptcy is extremely difficult and rare, although it can be successful in some circumstances. However, filing for bankruptcy can still be an option that may help you better manage your student loan debt. Once credit card debt, medical debts, and other financial obligations are discharged into bankruptcy, individuals often have more flexibility to make payments on their student loans.  Another approach is to file a Chapter 13 bankruptcy, which can give you some flexibility on the interest rates on your student loan debt. Once your other debts have been discharged, you may be able to make the remaining payments on your student loans without financial hardship. Consult with your bankruptcy attorney to discuss your options for using bankruptcy to manage student loan debt. Why are Student Loans Difficult to Wipe Out in Bankruptcy? Typically, debtors can have unsecured debts discharged through the bankruptcy process. This generally includes credit card debt, medical bills, and personal loans. Student loans are treated differently because they are an investment in your knowledge and skills with no tangible asset to reclaim. This means they cannot be automatically discharged in a Chapter 7 or Chapter 13 bankruptcy proceeding. In order to discharge your student loans, you’ll need to work with a zero-down bankruptcy attorney to file a separate lawsuit which is called an adversary proceeding. You and your bankruptcy attorney will need to prove to the court that paying your student loans will cause an “undue hardship” and that your circumstances are unlikely to change. Exactly how you can demonstrate that hardship will differ between states, but it is always a challenging obstacle, and not many individuals are able to meet the necessary criteria. How Can I Use Chapter 13 Bankruptcy to Manage Student Loan Payments? Even if you, like most people, cannot have your student loans discharged through bankruptcy, filing a Chapter 13 bankruptcy can still be a useful way to manage your payments. With this type of bankruptcy, your debts are essentially restructured and you’ll be able to keep all of your property and assets. You’ll make monthly payments that are based on your income to your bankruptcy trustee for 3-5 years. With this plan, car payments, student loans, and other debts will be included in your payment plan, even if they are not ultimately dischargeable. At the end of the payment period, your remaining debts that are eligible for discharge will be eliminated. How are Student Loans Handled in a Chapter 13 Bankruptcy? During your Chapter 13 bankruptcy pay period, you will make payments to your bankruptcy trustee, who will send a portion of your payments to your student loan lender(s). This money may reduce the principal or only cover interest, depending on the terms of your loan. Interest will continue to accrue on the balance of your student loan debt while you are in the Chapter 13 bankruptcy repayment period. Once you’ve finished making your monthly payments over your determined 3-5-year period, your bankruptcy trustee will discharge the remaining eligible debts, even if you have not paid them in full through your repayment plan. Although your student loan debt will not be discharged, your lender will recalculate your payments based on the new loan balance and help you set up a new payment schedule. Without the weight of your other debts, it’s likely that you’ll be in a better situation to afford your student loan payments. What Other Options Do I Have for Managing Student Loan Debt While in Bankruptcy? Just because you are going through a Chapter 13 bankruptcy doesn’t mean that other options become unavailable.  Assistance: You can apply for student loan assistance programs even while you are in a Chapter 13 bankruptcy. Reconsolidation: You may be able to seek a debt consolidation program that can lower your overall interest rate.  Modify Chapter 13 plan: Consult with your Chapter 13 bankruptcy attorney to determine whether it may be a good idea to modify your Chapter 13 payment structure. Once you’ve reconsolidated your student loans, it may be better to remove them from your bankruptcy plan. Dismiss your Chapter 13 case: A new student loan payment plan may mean that you don’t need a Chapter 13 bankruptcy at all, which can be beneficial to you in the long run. Your bankruptcy attorney can review the implications of dismissing your Chapter 13 case. Transfer to a Chapter 7 bankruptcy: If a student loan debt reconsolidation program means you can afford your student loan payments, transferring to a Chapter 7 bankruptcy might be a better option in some cases. Although filing for bankruptcy isn’t the right choice for everyone and it’s extremely rare for student loan debt to be discharged, it can be an effective way to make your student loan payments more manageable. Consult with My AZ Lawyers to discuss your financial options and whether filing for a Chapter 13 bankruptcy might be right for you, contact us today. This article is provided courtesy of Blake Goodman, P.C., an experienced bankruptcy attorney who has been providing financial solutions to clients in Hawaii and other U.S. states for three decades.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post How Do You Handle Student Loans When Filing For Chapter 13? appeared first on My AZ Lawyers.

Never be afraid to ask your mediator for help.  We all need a little help sometimes. To illustrate, let’s consider Audrey Wood’s Silly Sally, which is a children’s book written in rhyme.  I’d like to share a few excerpts. “Silly Sally went to town, walking backwards, upside down.” “Along the way, she met a pig, a silly pig, they danced a jig.” Sally continues walking – that is walking backwards upside down – but now the pig has joined her.  As she walks, she is joined by a dog and a loon. And then: “On the way, she met a sheep, a silly sheep, they fell asleep.” “Now how did Sally get to town, sleeping backwards, upside down?” “Along came Neddy Buttercup, walking forwards, right side up.” Neddy sees them.  And he stops to help. How does he help?  He tickles them to wake them up and then they all go to town “walking backwards, upside down.” Putting aside the rhymes and illustrations, which are a lot of fun, one important thing we learn from Silly Sally is that we all need a little help sometimes to get from here to there. How does this message translate to mediation? Sometimes we need help to get from conflict to resolution.  That’s why we mediate.  But sometimes we need help for more specific reasons.  When that happens, tell your mediator. Does your client need help to process their emotions?  Tell your mediator. Does your client have unrealistic expectations?  Tell your mediator. Do you need help understanding the other side’s views on something?  Tell your mediator. Do you recognize an obstacle to resolution?  Tell your mediator. Never be afraid to ask the mediator for help. Don’t be Silly Sally who was sleeping backwards, upside down. Instead, speak right up and let the mediator be Neddy Buttercup. You may just find your path to resolution. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  As a parent, I have spent a gazillion hours reading books to my children.  Oftentimes, these books teach me new ways to approach conflict resolution.  In this case, Audrey Wood’s “Silly Sally” inspired this post. Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - Help The post Mediator Insights: Help appeared first on Sylvia Mayer Law.

Have you ever said to your kids “use your listening ears”? Just as it is important that our children use their listening ears at home and at school, so too is it important that we use our listening ears in mediation. As a mediator, I work hard to listen to what the parties have to say about the facts and the law, and also what they say about their experience, emotions, and needs. Parties should work hard to listen too. Listen to the other side’s views on the facts and the law. Listen to learn about their wants and needs. Listen to the feedback from the mediator. Using your listening ears is a great way to find the path to resolution.  Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. MMM - Use Your Listening Ears The post Mayer Mediation Minute: Use Your Listening Ears appeared first on Sylvia Mayer Law.

As a mediator, I pay attention to word cues.  You should too. As you interact with others, listen for the words they use. Not just what the words mean, but the words that are said. Subconsciously, we all offer cues on how we process information. Someone who processes through logical analysis may say “I think.” Someone who processes through visual input may say “I see.” Someone who processes through emotions or intuition may say “I feel.” None of these are right or wrong. Instead, they are cues and these cues may help you connect and understand the speaker. And connection and understanding are often the keys to unlocking a path forward.  Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. MMM - Word Cues The post Mayer Mediation Minute: Word Cues appeared first on Sylvia Mayer Law.

As a mediator, I start every mediation believing that we will find a path to resolution. You should believe it too. Why is it important for the parties to believe? Because if you believe it is possible then it will be. Belief shapes our thoughts and influences our actions. Our beliefs can also affect the thoughts and actions of others. In negotiation and conflict resolution, believing that you can find a path forward is often the first step down the road to resolution.  Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. MMM - Believe The post Mayer Mediation Minute: Believe appeared first on Sylvia Mayer Law.

Mediation is a multilayered process including, among other things, sharing, learning, probing, and exploring.  Sometimes, one or both parties get stuck.  And sometimes the stuck party will say “they will never accept what I can offer.”  Instead of trying, the stuck party has prejudged how the other side will respond.  To which I always say – you will never know until you try, so just ask, and then we will find out. To illustrate, let’s consider Christopher Denise’s Knight Owl. Since the day he was hatched, Owl has only wanted one thing – to be a Knight.  He dreamed of it.  He worked hard for it.  And then he applied to Knight School and was accepted.  His dreams were about to come true! Although an excellent student, the physical part of being a Knight was challenging.  Given his size, it was hard to hold a sword or wield a shield.  And he kept falling asleep during the day.  But he persevered and his commitment paid off.  He graduated from Knight School with honors. Owl was assigned to the Knight Night Watch.  He was really good at it.  While other Knights fell asleep, Owl was alert and diligent.  Then, one night, Owl heard a strange sound.  And he saw a strange sight.  Rising up, up, up above the castle was a dragon.  A very hungry dragon. The dragon thought Owl looked like a tasty snack.  Owl protested.  Then Owl had an idea.  He offered the dragon pizza instead.  Turns out, this dragon loved pizza, so they spent the rest of the night talking and eating pizza. This story perfectly illustrates the point.  Don’t prejudge how the other side will respond, just ask.  They may say yes.  Or the dialog may continue.  Either way, you will be one step further down the path to resolution. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  As a parent, I have spent a gazillion hours reading books to my children.  Oftentimes, these books teach me new ways to approach conflict resolution.  In this case, Christopher Denise’s “Knight Owl” inspired this post. Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - Just Ask The post Mediator Insights: Just Ask appeared first on Sylvia Mayer Law.

In any dispute, there is often a wide disparity between what each side wants and what either side may realistically get.  One of the critical components in bridging the resolution divide is flexible thinking. Flexible thinking means the ability to adapt and adjust as the facts, the law, and the emotions play out.  Flexible thinking allows one party to accept that the facts are not as clear-cut as they believed.  Or another party to recognize that the law has greater uncertainty than expected.  Or maybe both parties need to acknowledge the existence of practical constraints on possible settlement options. Flexible thinking leads to receptivity to resolution. To illustrate flexible thinking outside of the mediation context, let’s consider Lisa McCourt’s I Love You, Stinky Face. Mama is reading a bedtime story to her child.  When she finishes, she says “I love you, my wonderful child.”  The child responds with a series of questions exploring her love. But what if I were a smelly skunk and my name was Stinky Face?  Mama says she’d give the skunk a bubble bath and whisper “I love you, Stinky Face.” But what if I were an alligator with sharp teeth?  Mama says she’d buy a big toothbrush and say “I love you, my dangerous alligator.” But what if I were a horrible meat-eating dinosaur?  Mama says she’d make a mountain of hamburgers and say “I love you, my sweet, terrible, dinosaur.” But what if I were a slimy swamp monster?  Mama says then I’d live by the swamp to take care of you and tell you “I love you, my slimy swamp monster.” The questions continue until the child is confident in Mama’s love.  Mama’s flexible thinking (and unconditional love) helps her child fall asleep safe in that love. Outside of the story, in the real world, we too can use flexible thinking to solve problems.  With flexible thinking, we can adapt and adjust.  With flexible thinking, we become receptive to new ideas, new information, and new options for resolution.  Flexible thinking may just pave the path to resolution. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  As a parent, I have spent a gazillion hours reading books to my children.  Oftentimes, these books teach me new ways to approach conflict resolution.  In this case, Lisa McCourt’s “I Love You, Stinky Face” inspired this post. Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - The Power of Flexible Thinking The post Mediator Insights: The Power of Flexible Thinking appeared first on Sylvia Mayer Law.

Student Loan Payments Are Restarting. See the below link for what Borrowers Need to Know https://edtrust.org/resource/student-loan-payments-are-restarting-heres-what-borrowers-need-to-know/Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

In the program Who Killed the Company? Tips and Trends in Claims and Defenses, Judge Marvin Isgur and his fellow panelists confronted issues such as in pari delicto, insurance coverage and waiver of fiduciary duties. However, one discussion led by Judge Isgur focused on whether solvency should be determined based on what was known at the time of the valuation or what was known at a later date. The discussion highlighted that valuation can be a moving target based on what is known at a given point in time. Judge Isgur gave an example from his life before he became a lawyer. In 1984, the price of oil took a precipitous drop causing Houston to lose 300,000 residents. The day before oil collapsed, an apartment complex might be valued at $10 million based on comparable sales. However, there were no comparable sales for the next two years. When property started moving again, the same apartment complex would sell for $1.5 million. So what was the complex worth during the intervening years? If viewed based on the latest comparable sales, it would be worth $10 million. However, there were no willing buyers and willing sellers at this or any other price. A cynic might say that the apartment complex was worth $0 since there were no buyers at any price. However, this was clearly wrong because the real estate and the improvements clearly had some value. When real estate started moving again, it had a value of $1.5 million. Did it drop 85% in one day or was there a curve of declining value which only became apparent in retrospect?Judge Isgur gave a second example of an unknown liability. A company sold tainted grape juice which ultimately killed many people. If a solvency analysis were prepared on the day the first toxic juice hit stores, the company might appear solvent because the nature of the liability was unknown. Once the claims were liquidated years later, the extent of the liability and its impact on solvency would become known. However, how would a solvency analysis value the company while the crisis was still ongoing?Perhaps an epidemiologist could extrapolate the total number of expected deaths and injuries from the number of gallons sold and then a litigation expert could estimate the value of each type of injury. However, the true nature of the liability would only be known in retrospect. I think that the point Judge Isgur was making (and this is my interpretation) is that sometimes valuation can only be seen in hindsight and will change as more information is received. In the absence of an efficient market, valuation at different points in time may be little more than an educated guess until sufficient information is received.  He gave another example of a case where he performed a valuation at one point and then after the case was reversed, he made another finding of valuation on remand. Both valuations were based on the same point in time. However, because he had more information at the time of the second valuation, the amounts differed. The first valuation wasn't wrong; it was simply based on incomplete information. As more information was developed, the valuation would become more refined. Thus, the valuation of a specific asset at a specific point in time might vary dramatically based on the information available. While there may only be one "true" valuation, that number might only become apparent some time after the fact.The same theme was picked up in the panel on The Next Generation of Bankruptcy Cases. While there is a general presumption that cases should proceed swiftly, in a case filed during a period of economic uncertainty, delay may be the best course.  The Covid pandemic turned the world on its head. Hertz filed its bankruptcy case on May 22, 2020 during the early days of the pandemic. Had the case gone to a prompt resolution, there probably would not have been enough funds to pay all creditors. Because the case was allowed to move more slowly, the case paid all creditors in full and returned money to equity. What this illustrates is that at the time Hertz filed its bankruptcy, its true value was unknown due to the unprecedented event of a once in a century pandemic. Its value was always there but it couldn't be seen at the time. Because Hertz was not required to be valued at a time when the true value was unknown, it avoided a negative result. On the other hand, if the company had not had the resources to weather the Covid storm, it could have crashed and burned before its true value was realized.It seems like valuation is a bit like Shrodinger's Cat.