Those who receive Social Security Disability Insurance (SSDI) benefits depend on their monthly payments to support themselves. If your check is late, there are certain steps you can take to ensure you receive it as soon as possible. If your SSDI payment is ever late, you should contact the Social Security Administration (SSA) to ensure your check was sent to the right location or that the SSA didn’t wrongly pause your monthly benefits. Changes in banking information, mailing information, and income might cause an SSDI payment to not come on time. Errors on the SSA’s behalf might also cause a delay in payments. Recipients should get SSDI checks for as long as they are eligible on either the second, third, or fourth Wednesday of each month, depending on their birthday. To have our Pennsylvania disability lawyers analyze your case for free, call Young, Marr, Mallis & Associates today at (609) 557-3081 or (215) 515-2954. What Can You Do if Your SSDI Payment Doesn’t Come on Time? If your SSDI payment is late, don’t panic. Instead, call the Social Security Administration as soon as possible to alert it to the delay of your check. The SSA uses a payment schedule to send out monthly SSDI checks. This means that you should receive your benefit on the same date each month. If your payment is late, our West Chester disability lawyers can call the Social Security Administration on your behalf. The SSA requests that SSDI recipients wait three business days from the date they expected to receive their monthly check to call about a payment delay. That said, recipients shouldn’t wait too long to contact the SSA regarding a late payment, as doing so might make them unable to pay their bills or cover other expenses. After you have been approved for SSDI benefits, there will be a delay before you receive your first check. The SSA abides by a five-month grace period to ensure SSDI recipients still qualify for benefits after approval. After the grace period has ended, you will have to wait one more month before you receive your first check, as each month’s benefit is sent out the following month. This means if your first benefit is for April, you won’t get it until May. Why Might Your SSDI Payment Not Come on Time? While Social Security Disability Insurance payments should be received on the same day each month, certain things might cause a check to come late. Some reasons for delays are under the recipient’s control, while others are not. Changes to Banking Information One of the main reasons why SSDI checks might not come on time is because of mistakes on a recipient’s behalf. For example, suppose you receive your monthly SSDI payment via direct deposit. If you change your bank account information and do not inform the Social Security Administration, you might not get your monthly benefit on time. Changes to Mailing Information A similar situation occurs regarding mailed SSDI payments. If you changed your address and did not tell the Social Security Administration, it might send your check to your previous mailing address, making it seem as though your payment didn’t come on time. Changes to Income An SSDI recipient cannot earn a substantial income and get monthly checks simultaneously. If you have earned over the substantial gainful activity limit, which is just over $1,000 per month, your SSDI payments might pause, making it appear as though they are late. Immediately rectifying this is important, as earning too much income over several months might cause those dependent on SSDI benefits to losing access to their monthly checks altogether. SSA Mistakes The SSA is a federal agency that might make mistakes from time to time. Wrong assumptions that your disability has been lifted or that you have earned too much income to make you eligible for SSDI benefits might delay your monthly check. Other things, like clerical errors, might also cause SSDI payments to not come on time. Mailing Delays Many disability benefit recipients choose to get their monthly Social Security Disability Insurance payments by direct deposit to avoid issues with mailed checks. Mailing delays could cause your check to come late, which is why the Social Security Administration urges recipients to wait several days before contacting the SSA for assistance. What Time Should Your SSDI Payment Come By? The Social Security Administration uses a strict schedule to send out monthly SSDI payments. This makes it so recipients can depend on getting their checks on the same day each month. The SSDI payment schedule is based on a recipient’s birthday. Those born between the 1st and the 10th should get their SSDI payments on the second Wednesday of each month. Those born between the 11th and the 20th will get their benefit checks on the third Wednesday of each month. And those born between the 21st and the 31st will get their SSDI payments on the fourth Wednesday of each month. Not all SSDI benefit recipients are eligible for payments based on their own earning records. If you get your benefits through your parent’s work history, the day you receive your monthly check will be based on your parent’s birthday. This schedule is set up so that holidays and weekends have little effect on the sending of SSDI payments. If your payment date happens to fall on a federal holiday, you should get your check the day before. When checks are sent by mail, they might come a bit later but should arrive on or close to the scheduled date. Checks sent via direct deposit should enter an SSDI recipient’s bank account at midnight on their scheduled payment date. Apply for SSDI Benefits Today For a confidential and free assessment of your case, call (609) 557-3081 or (215) 515-2954 and speak with the Philadelphia disability lawyers at Young, Marr, Mallis & Associates today.

 Yahoo Finance is reporting that "Repeat Bankruptcies Are Piling Up at Fastest Rate Since 2009".  The article can be found at https://finance.yahoo.com/news/repeat-bankruptcies-piling-fastest-rate-183531003.html?guccounter=1Jim Shenwick, Esq  jshenwick@gmail.com   917 363 3391We held individuals & companies with too much debt!

Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted  Income, a Trap for the Unwary!Many clients contact Jim Shenwick, Esq regarding assistance with their defaulted SBA EIDL loans and ask that we assist them with filing an OIC with the SBA.BACKGROUND By way of background, if an individual or a company borrows money from the SBA and is unable to repay their loan, one option is to file an OIC with the SBA, requesting that they be allowed to pay only a portion of the money's due on the defaulted EIDL loan as final and full payment for the SBA loan. For example, let's assume that an individual borrowed $200,000 on an EIDL loan and hypothetically offered $25,000 as a lump sum payment to the SBA as a final and full payment on the defaulted SBA loan (OIC offer) The SBA OIC program is similar to the OIC program for outstanding taxes owed to the IRS. Historically, to file for an OIC  with the SBA, the business had to  close. However, recently the SBA has changed their rules, and they are now allowing individuals or businesses with defaulted SBA loans to file an OIC even if the business is still open. The SBA has an Offer in Compromise form that must be filed, in addition to other forms, that detail the business’s assets, liabilities, revenue, & expenses and why the SBA EIDL loan cannot be repaid.However, filing for an offer in compromise with the SBA may not benefit the borrower because it may result in taxable income resulting from relief of indebtedness income pursuant to Section 108 of the IRC. LAW Section 108 of the Internal Revenue Code, provides that if an individual or a business borrows money and does not repay that money, the amount that is not repaid is considered ordinary income. For example, assume an individual borrows $100,000 from a bank and repays $50,000; according to the IRS, the taxpayer has been enriched to the sum of $50,000, and the bank is required to report "relief of indebtedness income" of $50,000 to the IRS on Form 1099-C. If the taxpayer does not report this income to the IRS, they will be audited and assessed interest and penalties on the taxes they did not report and pay. There are two exceptions to "relief of indebtedness income" The first exception, is the Bankruptcy Exception (see Section 108(a)(1)(A) of the IRC). If an individual or business files for bankruptcy, they do not have to report relief indebtedness income. The second exception is  the Insolvency Exception, (see Section 108(d)(3) of the IRC). If an individual's or company's liabilities exceed their assets on the date that the loan is satisfied, partially paid off or discharged, they also do not have to pay relief of indebtedness income. An example of the Insolvency Exception is as follows: an individual owns real estate and personal property worth $250,000, has liabilities totaling $500,000 (Insolvent). Under this scenario, if the taxpayer  had $200,000 of relief of indebtedness income (since their liabilities exceed their assets) they  would not have to  pay tax on the $200,000 of a relief of indebtedness income.Accordingly, taxpayers and their advisors make the mistake of filing for an OIC with the SBA, without considering the tax consequences of that decision. If they do that, they will have effectively traded an SBA problem (the defaulted SBA EIDL loan) with an Internal Revenue Service relief of indebtedness income problem in the near term.For example, assume a taxpayer had an LLC which borrowed $200,000 from the SBA in the form of an EIDL loan. The LLC  was unable to repay the EIDL loan, and their plan was to file an offer in compromise with the SBA in the amount of $25,000. Assume that  the taxpayer  who owned the LLC also had a $1 million pension plan. If this taxpayer were to file for an OIC with the SBA,  and if the OIC offer were accepted by the SBA, the  taxpayer would have to report $175,000 of ordinary income on their tax return ($200,000-$25,000),  provided that the Bankruptcy Exception and the Insolvency Exception do not apply. If the taxpayer was in a 30% tax bracket, they would have to pay $52,500.00 ($175,000 x 30%) in taxes in addition to the $25,000 they paid to the SBA (for the OIC) for a total of $77,500. In the above scenario, if  the LLC had filed for chapter 7 bankruptcy, they could have avoided paying the SBA $25,000 (OIC) and saved $52,500 in taxes—a better result for the borrower.The bottom line is that prior to filing for an OIC with the SBA, an individual or business considering making an offer must consider the tax consequences of the offer as well! Clients or advisors with questions about defaulted EIDL loans are encouraged to contact Jim Shenwick, Esq.  jshenwick@gmail.com   917 363 3391.Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minJim is a Bankruptcy and Workout attorney with an LLM in Taxation from NYU Law School and he has SBA EIDL default experience. Jim Shenwick SBA EIDL Blog Posts:EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.htmlEIDL Loan Default Questions & Answers https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.htmlEIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMIS Ehttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.htmlEIDL Defaulted Loanshttps://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.htmlNew Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.htmlEIDL LOANS and SBA OFFER IN COMPROMISE PROGRA Mhttps://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.htmlPPP & EIDL Fraudhttps://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.htmlBetter to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loanshttps://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html

Bankruptcy Means Test Inflation Adjustment for Family of Two Goes the Wrong Way Budgeting food and clothes in the bankruptcy court for a family of two just got harder. According to the Justice Department (who gets them from the IRS, who gets them from the Bureau of Labor Statistics), the average cost of food, clothing […] The post Inflation Adjustment for Family of Two Goes the Wrong Way by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

Bankruptcy Means Test Inflation Adjustment for Family of Two Goes the Wrong Way Budgeting food and clothes in the bankruptcy court for a family of two just got harder. According to the Justice Department (who gets them from the IRS, who gets them from the Bureau of Labor Statistics), the average cost of food, clothing […] The post Inflation Adjustment for Family of Two Goes the Wrong Way by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

June 24, 2020 CNBC Key Points Small businesses have received nearly $630 billion in combined funding through the Paycheck Protection Program and the Economic Injury Disaster Loan program. Nearly a quarter of small businesses are considering closing permanently due to Covid-19, one survey found. All PPP loans and EIDL loans of less than $25,000 have terms that are relatively favorable to borrowers if they need to close. FOR MORE BLOG POSTS ABOUT SBA EIDL LOANS SEE:EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html EIDL Loan Default Questions & Answers https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html EIDL Defaulted Loans https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan" https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM https://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html PPP & EIDL Fraud https://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loans https://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html

If you get monthly Social Security Disability Insurance (SSDI) checks and recently received an injury settlement in Pennsylvania, your benefits should remain unaffected. Receiving an injury settlement at any point in your life will not impact you when applying for SSDI benefits in Pennsylvania. Eligibility is determined by a person’s work history and disability, not by their need for financial support. If you get an injury settlement after already receiving SSDI benefits, your monthly payments will remain unaffected as injury settlements are not considered income. While injury settlements do not affect SSDI benefit recipients, they can impact recipients of other disability benefits in Pennsylvania. Fortunately, there are ways to minimize the impact to ensure you remain eligible for financial support from the Social Security Administration (SSA). To get a free and confidential review of your case from our Pennsylvania disability lawyers, call Young, Marr, Mallis & Associates today at (215) 515-2954. Will Getting an Injury Settlement Make Me Ineligible to Receive SSDI Benefits in Pennsylvania? Whether or not you received a settlement from a negligent party will have no impact on your ability to apply for SSDI benefits in Pennsylvania. Eligibility is based on other factors, not a person’s finances or assets. Eligibility for SSDI benefits in Pennsylvania is determined by a person’s work credits, not their financial need. As you work over the years, taxes for Social Security will be deducted from your paychecks. This enables you to apply for SSDI benefits should you sustain an injury or become ill or otherwise disabled and be unable to continue earning an income in Pennsylvania. This means that any injury settlement you received in the past, whether for a workplace accident, slip and fall accident, medical malpractice incident, car accident, or another event, will have no impact on your eligibility to receive SSDI benefits. As long as you have a suitable work history and a qualifying disability, you can get disability benefits in Pennsylvania. People without sufficient work credits might be able to get SSDI benefits, regardless of a previous injury settlement, if their parent has a qualifying earning record and the applicant sustained their disability before the age of 22. Will Getting an Injury Settlement Impact My Current SSDI Benefits in Pennsylvania? Social Security Disability Insurance benefit recipients in Pennsylvania are not allowed to earn over a certain amount on a monthly basis while getting payments from the SSA. If you receive an injury settlement while on SSDI in Pennsylvania, will you no longer be eligible for benefits? In 2023, SSDI recipients cannot earn upwards of $1,470 per month, or $2,460 if they are blind, and remain eligible for monthly benefits. Furthermore, earning upwards of $1,050 a month as an SSDI recipient will trigger a trial work period, which, if left unchecked, could impact your ability to continue getting payments from the Social Security Administration. Fortunately for disability recipients, injury settlements are not considered earned income. This means that if a negligent party in Pennsylvania hurts you and you file a lawsuit that results in recovery, that compensation will not adversely impact your SSDI benefit status. What if I Stop Receiving SSDI Benefits After Getting an Injury Settlement in Pennsylvania? Clerical errors or other mistakes might cause SSDI recipients to stop getting monthly payments after getting an injury settlement in Pennsylvania. Should this happen, it is important to clarify with the SSA that you are not earning upwards of the substantial gainful activity level and are simply receiving compensation for your damages caused by a negligent party. You might have to inform the Social Security Administration about your injury settlement to ensure that it does not confuse possible monthly structured settlement payments with income earned from a part-time job. Receiving a lump sum settlement might have a similar effect, especially if it is considerably higher than the substantial gainful activity threshold for SSDI recipients. While monthly structured payments might not trigger questions from the SSA, a large amount of money being transferred to you following a settlement might. If you stop getting SSDI payments after receiving an injury settlement, inform our Philadelphia disability lawyers so that we can explain the situation to the SSA. Once the SSA is aware that you are not earning an income and are simply being compensated for medical expenses and pain and suffering, your SSDI benefits should resume if they were temporarily halted in Pennsylvania. Can Getting an Injury Settlement Impact Other Social Security Disability Benefits in Pennsylvania? Although injury settlements have little to no impact on SSDI benefits, they can affect a person’s eligibility for other disability benefits in Pennsylvania. If you are not eligible for SSDI benefits based on your earning record, you might qualify for Supplemental Security Income (SSI) benefits in Pennsylvania. Eligibility for SSI benefits is based on disability and financial need. If you receive an injury settlement of a considerable sum, it might reduce or eliminate your SSI benefits. It may benefit SSI recipients to negotiate a structured settlement to avoid this. Unlike a lump sum settlement, structured settlements provide people with monthly payments. Your SSI benefits might remain unaffected depending on the amount of your monthly payments from a structured settlement. If you receive a lump sum settlement and are concerned that your SSI benefits will be in jeopardy, you can use the funds to pay for exempt resources, such as accommodations for your disability, home mortgages, credit cards, student loans, or other debts. SSI benefit recipients can also create a special needs trust that allows them to pay for funds not covered by SSI benefits, keeping them eligible for monthly payments from the Social Security Administration in Pennsylvania. Apply for SSDI Benefits in Pennsylvania Today Call the Bensalem, PA disability lawyers at Young, Marr, Mallis & Associates today at (215) 515-2954 to schedule a free case review.

 Above the Law blog had an article written by Jordan Rothman titled "People Love to Threaten Bankruptcy During Litigation", the article can be found at https://abovethelaw.com/2023/03/people-love-to-threaten-bankruptcy-during-litigation/.Jordan is correct in that many defendants in litigation threaten bankruptcy to obtain a favorable settlement. However, in my experience as a bankruptcy practitioner, many parties that threaten bankruptcy often file and those cases are generally filed as a chapter 7 liquidation, where after the payment of Bankruptcy Trustee fees and expenses, there is little money to distribute to unsecured creditors.In fact, when the threat to file is made by an experienced bankruptcy attorney, it has an even greater impact and we have settled many cases with that approach. In fact, we will often prepare a draft of a bankruptcy petition and send it to an adversary for settlement purposes only, showing what the creditor would receive in a bankruptcy filing (we call this a "pro forma bankruptcy petition"). Alternatively, we are often retained by litigators or their clients to determine what their client would receive if their adversary filed for bankruptcy-we call this a "back of the envelope calculation".Parties wishing to discuss these issues are encouraged to contact Jim Shenwick, Esq   917 363 3391   jshenwick@gmail.com  

When struggling to pay medical bills in New Jersey, debtors can declare bankruptcy and possibly get such debts discharged. Either Chapter 13 or Chapter 7 bankruptcy can help you get a handle on medical debt in New Jersey. There is no type of bankruptcy that is specifically designed to address medical debt in New Jersey. Instead, debtors will file a bankruptcy chapter, typically Chapter 7 or 13. To do this, you must file an initial bankruptcy petition with the court in New Jersey. Medical debt might then be eliminated, allowing you time to repay other creditors you might have. Debtors can lower the risk of losing certain assets during bankruptcy by using liquidation exemptions in New Jersey. Call Young, Marr, Mallis & Associates at (609) 755-3115 to set up a free and confidential case review with our New Jersey bankruptcy lawyers today. Is There a Specific Medical Bankruptcy in New Jersey? While you can enter into bankruptcy as a way to address medical debt, there isn’t a specific medical bankruptcy you can file for. Debtors will typically either file Chapter 7 or Chapter 13, which can address all debt, not just debt associated with outstanding medical bills. Bankruptcy chapters are not necessarily designed to help debtors address specific types of debt. Instead, debtors can file a standard bankruptcy, typically either Chapter 13 or Chapter 7. The chapter you file will depend on your financial status. Medical debtors with little income may have to file for Chapter 7. Medical debtors that pass a means test and have sufficient income to support a repayment plan can file for Chapter 13 in New Jersey. Although the chapter you file won’t be catered to addressing medical debt, you can still repay medical creditors. If you file for Chapter 7, you might have to do this by liquidating certain assets. That said, medical debt is considered a nonpriority unsecured debt. This means that if you petition for bankruptcy in New Jersey, medical debt might be discharged, or eliminated, leaving you with no responsibility to repay it. Suppose you have other debt in addition to medical debt. In that case, you can repay other creditors during bankruptcy after medical debt has been discharged. If medical debt is your only debt, you can address it fairly quickly by declaring bankruptcy in New Jersey. What is the Process of Filing for Medical Bankruptcy in New Jersey? If you are dealing with overwhelming medical debt that needs to be addressed, you can do so by declaring bankruptcy in New Jersey. Initiating the process is relatively simple, though debtors must be able to provide detailed information. The first step in declaring bankruptcy is filing a petition with the court. Our Mount Holly, NJ bankruptcy lawyers will include information about your income, expenses, and savings in your initial petition. We will also include information about medical debt and your creditors. If there are other debts that need to be addressed, we will include information about those debts in your bankruptcy petition as well. If you are using liquidation exemptions, you must note such in your initial bankruptcy petition. Judges typically order all parties to engage in alternative dispute resolution methods. During this time, debtors might negotiate with creditors in an attempt to resolve the matter without further court proceedings. Creditors might be unwilling to fully partake in negotiations, requiring a judge to step in. If medical debt is dischargeable, it may be eliminated after you petition for bankruptcy in New Jersey. Assets will be chosen for liquidation if you have other outstanding debts or medical debt is not discharged. It is not uncommon for those trying to pay medical bills to have other debts. If you filed for Chapter 13, our attorneys will submit a repayment plan soon after you declare bankruptcy. Once the judge approves your repayment plan, you can begin making payments to creditors to address your debt in New Jersey. Are There Risks Associated with Filing for Medical Bankruptcy in New Jersey? There are few risks associated with filing for bankruptcy to handle medical debt in New Jersey because medical debt is typically dischargeable. If you are concerned about losing certain assets, you may be able to exempt them from liquidation in New Jersey. The top risk debtors are concerned about regarding the prospect of declaring bankruptcy in New Jersey is potentially losing important assets, like a debtor’s home or car. Fortunately, New Jersey allows debtors to use federal liquidation exemptions, allowing debtors to retain a wide array of personal property when going through Chapter 7 liquidation bankruptcy. Another concern of debtors is the impact bankruptcy can have on a person’s credit. A Chapter 7 bankruptcy may stay on your credit report for about ten years after filing. A Chapter 13 bankruptcy may stay on your creditor report for about seven years after filing. That said, declaring bankruptcy can help debtors avoid other things that can have an adverse effect on their credit, such as missing payments, allowing them the opportunity to intentionally build their credit back up over time. Medical debt can begin to feel insurmountable almost immediately, especially if it is tied to a person’s credit card debt, which can accrue interest quickly. Credit card debt is also typically dischargeable in bankruptcy, making going through bankruptcy even more necessary for debtors in certain situations. Typically, there are greater risks associated with not filing for bankruptcy if you have considerable medical debt than declaring bankruptcy and handling your debt in New Jersey. Debt in one area can lead to debt in another since it is common for debtors to miss mortgage or car payments in an attempt to meet others, like medical payments. Eliminate Medical Debt in New Jersey Today For a free case evaluation with Young, Marr, Mallis & Associates, call our New Brunswick, NJ bankruptcy lawyers today at (609) 755-3115.

Weight Loss Brand Jenny Craig Files for Bankruptcy, Shuts Down Bloomberg is reporting that Jenny Craig files for Bankruptcy last week and is shutting down. People and companies that are owed money should file a Proof of Claim & landlord's should expect that their leases with Jenny Craig will be rejected. Individuals or companies having questions about the Jenny Craig bankruptcy filing should contact Jim Shenwick, Esq 917 363 3391  jshenwick@gmail.comWe help companies & individuals with too much debt!