Bankruptcy Exemptions Bankruptcy exemptions are legal provisions that allow a person to keep certain assets when they file for bankruptcy. These exemptions vary from state to state and can also be affected by federal law. In the United States, bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts. […]

 At the ABI Winter Leadership Conference, I attended a diversity and inclusion workshop put on by Elton Ndoma-Ogar of Alix Partners and Peter S. Salib of Perkins Coie, LLP. I wasn't sure that writing about an interactive workshop would be useful, but a friend encouraged me to try. At the end of the article, I have included a link to their materials, which you can access if you are an ABI member. If you are not an ABI member, contact me and I can send them to you.First ExerciseIn the first exercise, participants were shown three photographs and asked to write two adjectives about each. I failed the exercise because I could only think of nouns. Photo #1 was a protest against police brutality.Photo #2 was a collage of two men appearing romantically and then a photo of one of them as a football player.Photo #3 was a protest for abortion right. The crowd of about thirty participants generated about 150 responses. One of the responses to the police brutality protest was Black Lives Matter (which shows that someone else had trouble knowing what an adjective was). However, there was nothing in the photo that expressly mentioned BLM. While the facilitators did not draw an express message from the exercise what I came away with was that a group of people looking at the same photos can come away with a wide variety of impressions.Culture and Related TermsNext we looked at the term culture and three culture related terms. We discussed what culture meant but the materials did not contain a defined term. From discussion, I think the closest definition of culture that I was able to find online was "the customs, arts, social institutions, and achievements of a particular nation, people, or other social group." From that definition, the presenters gave the following definitions:Cultural Awareness - Acknowledgment of cultural differences  Cultural Competence - Refers to one’s ability to understand, appreciate, and interact with people from different cultural backgrounds  Cultural Intelligence - Ability to interact effectively with people of different cultures The presenters also discussed four skills for navigating cultural differences.Cultural Due Diligence (assessing and preparing for the possible impact of culture and cultural difference)Cultural Dialogue (exploring cultural differences and negotiating mutual adaptations)Style-Shifting (using a different behavioral approach to accomplish one's goals)Cultural Mentoring (helping others with cultural adaptation and integration)Exercise #2Case study / scenario  • Luisa Perez is a new counsel who works in the New York office. • Luisa is 36-year-old native Puerto Rican but was raised in New York most of her life. Luisa has been added to a complicated bankruptcy matter led by a partner and a few junior associates in the Pacific Northwest (PNW) office.  • The PNW partner and associates have found Luisa to be quite assertive with her positions on the matter and expresses them often.  • Luisa is frustrated with the slow pace, pushed deadlines, and multiple rounds of discussions about the same topics to try and get consensus.  • Discuss the team dynamics and how both Luisa and the PNW team members could be more culturally intelligent.Case study / scenario  • What are some of the cultural challenges both Luisa and the PNW folks need to address? • What other dynamics are in play between the PNW team members and Luisa? • Putting yourself in the Luisa’s or the PNW folks’ places, what would you do to try and be more culturally intelligent?  • What are the risks if nothing is done, or if the difficulties are mismanaged by either party? • What are the benefits if the parties work to resolve the issues? • What are the implications to either the individuals, group, and/or the organization?The room was broken into groups to discuss the scenario. We were only given about ten minutes which was just enough to sample the problem. In order to fully recreate the workshop atmosphere, I should let the readers discuss the problem amongst yourself. However, that is hard to do in the blog format. Some of the comments that came up were that Luisa and the Pacific Northwest team had different styles for approaching a problem. Neither style was "right" but they would have to be synthesized if the parties were to work together. For my part, I identified with Luisa. I like for discussions to flow in a linear fashion toward a conclusion. It drives me absolutely bonkers when a discussion seems to go round and round in no particular order. I also value arriving at a conclusion and moving forward even if it's not possible to reach consensus. The clash of styles had consequences for both sides of the group. If they could not reconcile their approaches, they would waste valuable resources bickering. For Luisa, getting a good recommendation from the Pacific Northwest partner would affect her ability to advance in the firm. For the firm, if Luisa got frustrated and left, they would lose their investment in her and the potential benefits she could have brought to the firm. My ThoughtsI wasn't sure what to expect when I went to this program. In some circles, diversity and inclusion are considered to be code words for social engineering. This workshop was anything but radical. It focused on empathy, communication and understanding. These are all good skills for any attorney to have. You can find the materials here.

How Student Loan Debt Affects Homeownership In Arizona How Bankruptcy Can Help You Take Charge Of Your Student Loans & Homeownership Student loan debt is a major burden for millennials and has become a significant factor in preventing younger people from homeownership. If student loan debt is very high, potential borrowers will not qualify for a mortgage. Others may find that they qualify for a mortgage, but feel they cannot simultaneously pay a mortgage while making their student loan payments. Many borrowers wonder if they can alleviate their overwhelming student debt load by filing for bankruptcy, in hopes of discharging their student debt so that they can eventually purchase a home. Unfortunately, in the vast majority of cases, student loan debt cannot be discharged through filing for bankruptcy because there is no tangible asset. Borrowers would need to go through an extensive process to prove that repaying the loan would cause undue hardship. Types Of Debt In Bankruptcy When you file for bankruptcy, your Mesa bankruptcy lawyer will help you understand that some debts are dischargeable and others are not. Credit card debt, mortgages, and vehicle loans are common types of dischargeable debt. Taxes, child support, alimony, and student loans are non-dischargeable debts that cannot be eliminated by filing for bankruptcy. Proving Undue Hardship Most of the time, student loan debt cannot be discharged when filing for Arizona Chapter 7 bankruptcy or Chapter 13 bankruptcy. The debtor must prove that paying back their student loans would impose an undue hardship on themselves and their dependents, and ultimately requires filing a lawsuit against the creditor. Typically, these cases are only won when there is an extenuating circumstance, such as a severe and permanent disability that prevents the debtor from earning sufficient income. For student loans to be discharged in bankruptcy, the debtor must prove: That at their current income, they are unable to maintain a very low standard of living if they must repay the students The additional circumstances that will perpetuate this standard of living are likely to continue throughout the majority of the repayment period That the debtor has already made good-faith efforts to repay their student loan debt This is a difficult case for most people to prove. To have the best chance of success, you’ll want to consult with an experienced Phoenix bankruptcy law office who understands the bankruptcy process and can work on your behalf. What Are The Consequences Of A Sex Crime Conviction? Although sex crimes are considered Class 2 felonies in Arizona, the penalties for sex crimes can vary widely, depending upon which type of crime was committed, the age of the victim, whether a weapon or drugs were involved, whether it was a first or subsequent offense, and additional circumstances. Subsequent offenses will receive more severe punishments than first time offenses. However, all sex crimes carry serious consequences that can be lifelong. In many cases, alleged offenders lose the opportunity to a plea bargain, because Arizona recognizes mandatory sentencing laws. For example, Arizona requires 5-14 of prison for those convicted of rape. Other consequences of conviction can include: Long prison sentencing, often without the potential of parole or probation for at least 35 years Criminal fines Lifelong probation Registration on the Arizona Sex Offender Registry, which can be searched by anyone Loss of professional licensure Ineligibility for some careers and volunteer positions Psychological evaluation or risk assessment to determine whether the offender poses a risk to the community Difficulty with housing and employment Potential to lose child custody Loss of friends and family relationships Social stigma Your East Valley criminal defense lawyer will work on your behalf to minimize your conviction and consequences. Which Type Of Bankruptcy Should I Choose? Although student loan debt is rarely discharged in bankruptcy, other debts, such as credit card debt, can be eliminated through bankruptcy. For many people, the elimination of other types of overwhelming debt provides enough financial flexibility that they can work toward homeownership even while making student loan payments. It’s also important to realize that after filing for bankruptcy, you have a low likelihood of qualifying for a mortgage for 7-10 years, depending on which type of bankruptcy you choose to file. In the meantime, you can work toward repaying your student loans and other non-dischargeable debts. This puts many people in the financial position to take out a mortgage by the end of the 7-10 year period after their bankruptcy filing. Two types of bankruptcy are available to most people: Chapter 7 and Chapter 13. Each has its requirements, positives, and negatives to consider. Consult with your Glendale bankruptcy attorney to learn more about which type of bankruptcy you qualify for and which might be the best choice for your situation. Chapter 7 Bankruptcy This is the most common type of bankruptcy. Some of your assets are sold by the bankruptcy trustee, who will use the proceeds to pay your creditors. Once this is complete, your remaining debt balance is discharged. Some debts, such as taxes, criminal fines, student loans, alimony, child support, and some contracts cannot be discharged. There are certain income limits and other requirements. You will be able to keep your primary home and vehicle, and some other assets; the goal of bankruptcy is not to make someone homeless but to help them establish a fresh financial start. Chapter 7 bankruptcy will be completed within a few months, and the bankruptcy will remain on your credit for 10 years. Chapter 13 Bankruptcy Chapter 13 reorganizes your debts into manageable monthly payments, which you will pay for the next 3-5 years. Once this is completed, your remaining debts are discharged. Chapter 13 is a good choice for people who want to keep their homes, vehicles, and other assets. You must meet certain requirements to qualify for this type of bankruptcy. Chapter 13 bankruptcy will remain on your credit for 7 years. Some people also choose to file Chapter 13 bankruptcy when they need relief from collections and want to gain some breathing room to get their finances in order. Regardless of which type of bankruptcy you choose, be sure to consult with an experienced Gilbert  bankruptcy law office who can evaluate your situation and provide advice. Filing for bankruptcy can be a strategic way to work toward home ownership or eradicate overwhelming debt so that you can move forward with your goals. Consult With Mesa’s Leading Bankruptcy Attorney Managing overwhelming debt can be exhausting and confusing. That’s why getting in touch with My AZ Lawyers can be the first step toward a brighter, freer future. We have assisted over 14,000 clients through the bankruptcy process and are ready to help you develop a personalized approach to managing debt that will work for you. Schedule your confidential consultation with us today!   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 Student Loan Debt Affects Homeownership In Arizona appeared first on My AZ Lawyers.

 Happy Holiday and a Happy and Healthy New Year to all!This year, we received many referrals from friends and colleagues.At Shenwick & Associates, we have been very busy counseling clients with regard to defaulted SBA EIDL loans, advising clients who want to vacate their leased property in Manhattan, and dealing with Good Guy Guaranty issues.Personal bankruptcy filings have increased and we expect more personal bankruptcy filings in 2023 due to the new procedures in place for discharging student loans in chapter 7 bankruptcy, due to “hardship”.Jim Shenwick

 CBS News has a post titled "Already slammed by inflation, small businesses struggle to repay COVID-19 disaster loans". The post can be found at https://www.cbsnews.com/news/small-businesses-eidl-loans-repayment-inflation-covid-19-pandemic/This article is consistent with what we are hearing from many clients, who took out EIDL covid 19 loans and who are unable to repay them due to market factors. Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224

This program looked at the bankruptcy of the City of Detroit through the lens of a documentary filmmaker. I thought it was a clever way to look at one of the most consequential bankruptcies of our time through the eyes of someone who was not a bankruptcy lawyer or judge. While filmmaker Sam Katz is not part of the bankruptcy profession, he did have substantial experience in municipal finance, having served as Chair of the Fiscal Oversight Board in Philadelphia in the 1990s. It took him six years to make the film compared to the fourteen months that Detroit was in bankruptcy. I have included a link to a website about the film at the end.Much of the story of the City of Detroit focuses on the conflict between the Republican Gov. Snyder and the Democratic officials in Detroit. In 2010, the Michigan legislature passed an emergency management law allowing the State to  basically take over city.  In the view of the White Michigan, Detroit was a management problem and they could fix it. If the elected officials were unable to protect life, liberty and the pursuit of happiness, someone has to do it. When a house is burning, you don't say you didn't give me enough time. You have to react. When the state decided to use the emergency management law, the big issue was picking the right person. Kevyn Orr was a partner at Jones Day and was African-American. He asked why he would accept such a  difficult job. His wife told him it was  time to put up or shut up. He held the emergency manager job for 18 months. The statute assigned the emergency manager extraordinary powers. He could sell assets. throw the elected council and mayor out and reject contracts. It was a controversial position and he was widely hated. However, the City's problems could not be solved by the elected leaders. When you have to make hard choices, you are not going to make them because you want to get reelected. How are you going to do that and have a political career? The emergency manager didn't have that problem.Enter BankruptcyWhen Kevyn Orr used his powers to put Detroit into bankruptcy, Judge Steven Rhodes held a hearing on eligibility.  On the one hand, there was a sea of suits with their binders stacked up and media from the New York Times, Wall Street Journal, wire services and local media. Into the maelstrom, Judge Rhodes allowed ordinary citizens to come in and express themselves. It was hard for some people to accept just how bad the City's situation was. Every constituency screamed for 100% recovery. Protesters were chanting and protesting in the streets that paying even a dime to the banks was too much. Ordinary citizens gave their stories about how bad things were. One citizen testified that a body lay in street for five hours because of cutbacks in the coroner's office. Things were so bad in fire stations that they didn't have alarms. They would put a pop can on the fax machine to let them know when a call came in. Judge Rhodes concluded that the City of Detroit was eligible to be a debtor under chapter 9. The filmmaker said that he was not sure anyone had a sense what it was like to be in chapter 9.  FDR had suggested a system of municipal bankruptcy during the Great Depression. He turned to the Mayor of Detroit, Frank Murphy, to help him design the system. The Supreme Court found FDR's municipal bankruptcy law to be unconstitutional but it was later enacted as part of the Bankruptcy Code. However, Chapter 9 was not used that often. There had only been 230 or 240 chapter 9s, most of which were special purpose districts.  When Judge Rhodes allowed ordinary people to testify, Detroiters started to take notice. The Great ConflictAs I mentioned above, Detroit's problems posed a conflict between the White, Republican state government and the people of Detroit.  The idea that the Republicans would take over the city was unacceptable to citizens of Detroit. Gov. Snyder's support in Detroit went down from 8% to 4%. The filmmaker expressed his opinion that Gov. Snyder didn't have a political motive to hurt the Democrats in Detroit. Instead, he was afraid that the city would collapse and the state would be called upon to pay its debts. Michigan could not kick Detroit out of the State. If the city collapsed, Detroit's problems would become Michigan's problems. The State constitution said that pensions could not be impaired. As a result, Detroit's unfunded pension obligations of $3.5 billion could potentially become an obligation of the state. The Unfunded Pension LiabilitiesCould the pensions be touched? In bankruptcy, there are two types of creditors, secured and unsecured. The pensions were unsecured debts which made them a long way from sacrosanct. While the State Constitution promised that they could not be diminished or impaired, they were still just contract debts. There was a very strong emotional reaction to telling retirees that their pension rights might be impaired in the bankruptcy process. It was a classic case of kicking the can down the road. The union leadership had not been honest with its members. They learned that when you go into bankruptcy, your pension rights might not be protected. The actuaries had said that the unfunded liability was $1.5 billion. However, they had used a discount rate of 9%. When a more realistic discount rate of 6% was used, the unfunded balance went to $3.5 billion. The key variable was the discount rate. Art to the RescueThe thing that saved Detroit was that it owned an art museum. When formulating a plan, the options are to raise new revenue, borrow new money or find an asset to sell. Many years before, the wealthy citizens of Detroit decided that they needed a jewel of an art museum. Collections were donated to the City and other major works were bought with city funds. However, the museum asset raised the issue of how to evaluate 60,000 works of art in a matter of months.  There was a concern that the appraisers and investment bankers were coming in like Visigoths to take over museum.  In the end, the City decided that if Christie's wanted to appraise the collection, they could pay their 8 bucks and walk around with their note pads. There were two valuations: Christie's and the investment bankers that represented the insurance companies. Christie's said it was worth $500-800 million, while the investment bankers said it was worth $8 billion. The emergency manager figured out how much was needed to make the reorganization work and got an appraisal to support that number. The plan was based on raising funds to keep the art museum intact. Judge Rhodes later said he would never have approved sale of art.  The value of the art would have been discounted by quantity of art being dumped on the market so that keeping it intact made sense.There wasn't enough cash in the systems to plug the hole. The plan was to put the art in a trust and give the money to the pensioners. The City would need for the foundation community to kickstart the process.  In the end, the foundations came through and the State ended up matching the foundation grant. This was a great deal for the state. If the City had failed and the State had been forced to cover the unfunded pension liability under the State Constitution, it could have been liable for $3.5 billion. They ended up paying $169 million.There is a lot that I didn't cover in this summary. One facet I wanted to end with was that early on in the case, Judge Rhodes was presented with a compromise that would have gotten the City out of bankruptcy without solving its problems. He rejected it on the basis that there had been too many instances where the City had made deals which simply kicked the can down the road. In the view of the filmmaker, Judge Rhodes protected the interest of the unsecured creditors but also protected the citizens of the City.Take-AwaysMy takeaway from this film was being impressed with just how versatile the bankruptcy system can be. It took many decades of neglect for the City to be forced to file bankruptcy. Once it did file, it didn't fit the mold for a normal bankruptcy. In a typical bankruptcy, there are assets and cash flow which can be used to satisfy creditors and if that is not sufficient, the debtor can liquidate under chapter 7. However, a city cannot liquidate. There are people who live there who need city services in order to survive. The fact that the State could have been liable for the unfunded pension debt made the case a ticking time bomb for the White, Republican leadership. As judge, Steven Rhodes had to balance the interests of the bondholders, the pensioners and the city residents. By all accounts, many things went right. The Governor obtained the legislation to appoint an emergency manager who could take the drastic actions that city leaders could not. The emergency manager, Keyvn Orr turned out to be the right man for the job. The judge turned out to be a hero. "Old" Detroit represented by the foundations stepped in to save the art museum and fund the plan. It really is an amazing story of disaster averted through the hard work of the bankruptcy system.To see more about the film, click here.

How Probate Laws Work In Arizona What Are The Different Types Of Probate In AZ? Probate is the process by which a deceased person’s assets are transferred to their heirs. The deceased person’s will is examined by a probate registrar to determine whether it is legal and admissible in court. If it is not legal, Arizona’s state laws will control the process and the transfer of a deceased person’s estate will be handled in an extensive court process. Probate is a complex process that can take many months to finalize while requiring extensive paperwork and legal documentation, so it’s ideal to have your estate planning documents prepared before your passing to simplify the process for your heirs and survivors.  Working with a Mesa estate planning lawyer can help expedite and simplify the probate process and is the best way to prepare legally binding estate planning documentation in advance of your death. How Does Probate Work In Arizona? Filing With Probate Court Once a person dies, probate begins when an interested party, usually a relative or close friend, files the will – if the deceased had one – and a petition with the probate court. Most of the time, the court will appoint the executor of the will to be the personal representative, unless there is a legitimate reason why that person cannot or should not be appointed to fulfill that role. If the deceased did not have a will or the will does not name a personal representative, the probate court will rely on Arizona’s probate laws. State statutes list individuals who have priority for appointment as personal representatives. The surviving spouse will be the first choice, followed by other close family members. Determination Of Personal Representative The probate court must determine whether the will is valid and legally binding. If it is, the probate court will give letters of administration to the personal representative. These documents demonstrate the personal representative’s legal right to manage the estate, including distributions and payments. Personal Representative Fulfills the Will Once selected by the probate court, the personal representative will notify inheritors and creditors about the estate. Inheritors must be notified within 30 days of the person’s death. Creditors are notified via a local newspaper notice for three weeks as well as through the mail. Creditors who receive a notice through the mail have 60 days to make their claim against the estate. The personal representative will gather all of the estate’s assets. They have a responsibility to inventory, manage, and protect the estate’s assets until they can be appropriately distributed. Once creditors have been paid, the personal representative will distribute the remaining assets to the beneficiaries and inheritors of the estate. Finally, the personal representative files a petition to close the estate. The process of probate can be complicated and may feel overwhelming to grieving family members, especially if the deceased did not have estate planning documents prepared. Your Glendale estate planning lawyer can help survivors manage the estate and assist with the probate process. What Types Of Probate Does Arizona Recognize? There are three ways to probate an estate in Arizona: formal, informal, and supervised. Some properties and assets are exempt from probate while others must go through the process. Informal probate is the simplest form and is used when a legal will is not challenged. There will be minimal court supervision as a court representative administers the terms of the will. Formal probate is used to resolve legal issues, such as when the validity of a will is contested, there is disagreement over the personal representative, or there are conflicting interpretations of the will. Supervised probate is an extensive process in which the court oversees every aspect of the process. The personal representative must have probate court approval for each action he or she takes, including paying creditors or distributing assets. Supervised probate can be requested by anyone who has an interest in the estate and is most commonly used when an interested party or heir needs protection. Contact your Tempe estate planning attorney to learn more about which type of probate applies to your situation. What Are Some Exceptions To Probate? Some estates will not need to go through probate, while others qualify for simplified probate. Some types of assets automatically pass to an heir without any oversight from the probate court. Assets that are exempt from the probate court in Arizona include: Property held jointly: Real estate, homes, bank accounts, and other assets held in joint tenancy pass directly to the surviving owner. Living trust assets Payable-on-death (POD) bank accounts:: These accounts pass directly to the named beneficiary. Assets registered in transfer-on-death (TOD): These accounts, which can include homes, real estate, vehicles, and more, pass directly to the named beneficiary. Community property with a right of survivorship: Property transfers directly to the surviving spouse Contracts, such as life insurance policies and annuities Retirement accounts: If there is a named beneficiary, retirement account funds pass directly to that person. If you have questions about probate and want to prepare your estate to avoid probate, consult with an experienced  Mesa estate planning attorney. Receive Guidance Through Probate From An Experienced Estate Planning Attorney If you need guidance as you go through probate after the passing of a loved one, or want to prepare estate planning documents to ease the probate process for your survivors, consult with My AZ Lawyers. We are ready to walk you through the probate process, help you understand which documents you need, and ensure that everything is handled legally and professionally. Give yourself and your family peace of mind by planning your estate today! Schedule your free consultation with us to learn more about how we can serve you.   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 Probate Laws Work In Arizona appeared first on My AZ Lawyers.

If you’re a current disability benefit recipient and are near retirement age, your monthly payment may soon adopt a different name. Social Security Disability Insurance (SSDI) benefits and retirement benefits are paid consecutively, not simultaneously. You can’t get Social Security Disability Insurance benefits and retirement benefits at the same time. Retirement benefits are exclusively for those over retirement age, while SSDI benefits are for those under retirement age with qualifying medical conditions. That said, your SSDI benefits will automatically change to retirement benefits when you reach a certain age. Your monthly benefit should stay at the same amount, and you should be able to collect it on the same day of the month you collected your SSDI benefit. While you can’t collect SSDI benefits and retirement benefits simultaneously, you may be able to get other Social Security benefits alongside SSDI benefits. Our attorneys are dedicated to helping individuals understand the Social Security benefits available to them. For a free case evaluation with the disability lawyers at Young, Marr, Mallis & Associates, call today at (215) 515-2954 or (609) 557-3081. Can I Collect SSDI Benefits While Getting Social Security Retirement Benefits? Suppose you currently receive Social Security Disability Insurance benefits and are nearing retirement age. In that case, you may wonder if you can collect Social Security retirement benefits at the same time. It’s important to know how this process works so that you can collect the correct monthly benefit from the Social Security Administration (SSA). You cannot collect SSDI benefits and Social Security retirement benefits simultaneously. Social Security Disability Insurance benefits are designed to replace income for individuals with qualifying illnesses, injuries, or disabilities who can no longer work. Once you reach retirement age, you are not necessarily expected to work, which means your SSDI benefits will stop. However, you may be eligible for other Social Security retirement benefits on your age. In fact, the Social Security Administration should automatically convert your monthly SSDI benefits into retirement benefits when the time comes. This process should be seamless and require no action from you, the recipient. However, if there are issues during the transition from SSDI benefits to retirement benefits, call our disability lawyers. Our attorneys can ensure that the SSA has the necessary information to send you the monthly retirement benefits you deserve. Will My Monthly Checks Stay the Same When They Change from SSDI Benefits to Retirement Benefits? Though you can’t collect Social Security Disability Insurance benefits and retirement benefits simultaneously, you can receive them consecutively. Upon reaching retirement age, your SSDI benefits should change into retirement benefits. But will your monthly check from the Social Security Administration remain the same? Suppose you get your monthly SSDI benefit checks via direct deposit. In that case, you shouldn’t notice much difference when they change from SSDI checks to retirement checks. That’s because your monthly benefit from the SSA should remain the same, even when under a different name. This is good news for many SSDI benefit recipients, who won’t have to readjust their finances to account for decreased monthly payments from the SSA. While your monthly benefit should not change, processing errors on behalf of the SSA might result in slight differences. If this happens to you, contact our Bucks County disability lawyers immediately. Your monthly benefit shouldn’t change at all during the transition from Social Security Disability Insurance benefits to Social Security retirement benefits. Will I Collect Retirement Benefits on the Same Day I Collected SSDI Benefits? If you’ve been relying on Social Security Disability Insurance benefits to support you and your family for many years, you’ve likely gotten used to your payment schedule. Luckily, the day you collect your monthly check from the SSA won’t change when your benefits transition from SSDI benefits to retirement benefits. The Social Security Administration follows the same payment schedule for SSDI benefits and retirement benefits. That means the day you collect your monthly check from the SSA shouldn’t change when you reach retirement age. The following is the current payment schedule for disability and retirement benefits: Those born between the 1st and the 10th collect disability or retirement benefits on the second Wednesday of each month Those born between the 11th and the 20th collect disability or retirement benefits on the third Wednesday of each month Those born between the 21st and the 31st collect disability or retirement benefits on the fourth Wednesday of each month If you opt for direct deposit, your retirement benefit check will hit your bank account at the same time your monthly SSDI benefit check did, at midnight on your allotted day. This similar payment schedule can make the transition from SSDI benefits to retirement benefits easier for recipients. If, for some reason, you are no longer receiving your monthly check on the same day, inform our Philadelphia disability lawyers. Changes in payment days might present difficulties for Social Security benefit recipients. Can I Collect Multiple Social Security Benefits at the Same Time? Though you can’t collect Social Security Disability Insurance and retirement benefits simultaneously, you may be able to collect other Social Security benefits at the same time. Learning about your options is important, so you can get the monthly benefits you’re entitled to. Suppose you qualify for both Social Security Disability Insurance benefits and Supplemental Security Income (SSI) benefits. In that case, you may be able to get both simultaneously. This is known as receiving concurrent benefits. If you wish to collect concurrent benefits, consult our disability lawyers. To collect both SSDI benefits and SSI benefits at the same time, you have to meet certain criteria. While the eligibility for SSDI benefits is based on a recipient’s medical condition and work history, the eligibility for SSI benefits is needs-based. So, if your monthly SSDI benefit is too large, you may also not qualify for SSI benefits. However, only those who have worked many years or are eligible for SSDI benefits through a parent’s earning record may recover the maximum monthly benefit. So, if you don’t have an extensive work history and collect a smaller SSDI payment, you may also get SSI benefits at the same time. Call Our Lawyers About Your Social Security Benefits Today If you need to apply for Social Security benefits, our attorneys can help. For a free case evaluation with the New Jersey disability lawyers at Young, Marr, Mallis & Associates, call today at (215) 515-2954 or (609) 557-3081.

 Many clients contact Shenwick & Associates and ask if they are liable for a spouse's debts, particularly student loans.  AOL has an article titled “  Does My Spouse Have To Pay My Student Loans If I Die?” which answers that question and others. The article can be found at https://www.aol.com/finance/does-spouse-pay-student-loans-143003556.html Jim Shenwick, Esq.   212 541 6224  jshenwick@gmail.com

 This panel asked the question, what is the role of the bankruptcy judge? To answer that question, they featured two retired judges, Judge Robert Drain from the Southern District of New York and Judge Harlan "Cooter" Hale from the Northern District of Texas along with sitting judges Erithe Smith from the Central District of California and Grace Robson from the Middle District of Florida. Rather than trying to recreate their panel, I will try to distill their presentation into a series of rules.1. Bankruptcy is a collective proceeding. It involves many more people than traditional litigation and bankruptcy judges have to spend more time managing the proceeding.2.    Bankruptcy is a problem solving court. In any case, there are a finite number of assets that can be distributed among the group of creditors. The bankruptcy court needs to be able to find a way to get the assets to the creditors before the case is consumed by administrative expenses. In unique cases like the City of Detroit, the bankruptcy court may be the only court equipped to solve a problem involving many different groups.3.    Bankruptcy courts exist to build consensus when they can and make decisions when they can't. There is an element of truth telling to being a bankruptcy judge. According to Judge Smith, "We can make lemonade, but it may not be a very big pitcher."4.    Bankruptcy courts deal with the human element. Bankruptcy judges deal with issues critical to ordinary people, such as whether someone gets to keep their house or car. That is not something that big firm practitioners experience on a regular basis but bankruptcy judges do.5.    Bankruptcy judges need to look out for the parties who may not be present at the beginning of a case. Especially when dealing with interim first day orders, the judge needs to realize that no everyone has had a chance to read the filings. Judges can control how much gets done how fast by adopting local rules and setting expectations.6.    Bankruptcy is the Emergency Room of the legal system. The first priority is to keep the patient alive until you can do more long term fixes. When the debtor comes in on the first deal, the goal is to allow the company to survive for another week or month so that more permanent solutions can be explored. 7.    Sometimes you can't go with the consensus. When someone is objecting, the judge needs to ask whether that person is really being hurt and does that outweigh the benefits of the consensus. Sometimes the Code gives definitive answers and sometimes it is more ambiguous. In the City of Detroit case, Judge Steven Rhodes was offered an early compromise where the people of Detroit were not in the room. It takes a lot of courage to go against the consensus.8.    Consent makes life easier. Issues can be waived. In Judge Hale's National Rifle Association case, there was a major problem with venue (and I said so in this blog). However, no one raised venue and the case stayed in Judge Hale's court by the tacit agreement of everyone involved.9.    Bankruptcy judges are given a vast amount of discretion. According to Judge Smith, the Bankruptcy Code is a beautiful document, but it can't address every issue. This means that much is left to the judge's interpretation.10.    Bankruptcy courts are courts of equity--sort of. While bankruptcy courts are referred to as courts of equity, they are still governed by the Bankruptcy Code. However, some provision so of the Code are flexible enough to allow lawyers to present creative solutions to comply with the letter and the spirit of the law. 11.    Judges have different styles when it comes to showing their views. Judge Drain said that as part of managing an entire case, he would let the parties know where he thought the case was going. He said that during the mortgage crisis he would ask lenders if they really wanted to foreclose when they had so many vacant properties. However, he acknowledged that what might not seem rational to him could make perfect economic sense to a lender. Judge Hale joked that sometimes confusion could be confused with a poker face. He said that while he was not an activist judge. even people with poker faces can signal to parties that there is something on your mind. When he wanted to send a message to the parties, he would have his law clerk send them an email encouraging them to address certain issues.Judge Smith said that you can have poker face but be screaming on the inside until someone makes a completely, utterly ridiculous argument. She said her law clerks could hear argument in chambers and instantly recognize that a case was not going well for a party.  She said that you can let them hang themselves. She added that it's learned behavior to just sit there and not show anything.12.    Exercising discretion is a skill judges develop over time. Judge Robson said that she felt very constrained at first. Judge Smith added that in her first years on the bench, she saw things pretty stringently but five years later, ten years later, they looked differently. The judges agreed that competing sales offers were an area where the judge could exercise discretion. Judge Robson said that if the offers were close, she would consider the option that saved jobs, but that she had to consider the interest of creditors first.  Judge Smith added that the highest offer might not be the one that is most likely to close.  13.    Sometimes the judge needs to insert himself into the process. Judge Hale gave the example of the NRA case where the parties were aggressively sparring. He said that sometimes the judge needs to say something to set the right tone.  Judge Robson that in dealing with a  pro party, she may ask questions if the debtor doesn't know what's relevant so she can try to get to the right result. Judge Smith said that she would ask questions if she wanted to clarify the testimony but she would never step in if one side forgot to ask an important question. Judge Drain said that if he thought a witness was lying, he might ask him questions because the witness might just be nervous.14.    Sometimes justice means an orderly process. Judge Drain said that justice is a loaded word. He quoted Judge Bonapfel as saying that our job is to stop people from killing each other. He said that people don't appreciate the role that an orderly process plays in ensuring justice, but that there are times in history when that has broken down and people start shooting each other because they want revenge.15.  The judge should not step in when the lawyers are mismatched. Judge Drain said that he won't weigh in unless one of the lawyers is being a real bully. He said I will not become the less effective lawyer's senior partner.  Judge Smith said that one lawyer is not making arguments that are obvious, it's hard not to say something but you don't want to put your thumb on the scale for the person that's dying in court.  Judge Smith said that you don't want to ask questions that are outcome determinative. She said that you spend your whole career as an advocate and then you go on the bench and you have to assume a different role.16.    Judges notice how lawyers behave. Judge Hale said that we hate lawyers who are bullies. If you are the better lawyer, don't be so proud of it that you are obnoxious. Judge Drain said that people want to get better and will do so if you have high expectations. He said that it is great to see a young lawyer catch on.  Judge Smith said that it is a pet peeve of hers when someone says a case is on all fours with a situation and then they can't tell her about the facts.17. The judge has a duty to look out for the party that is not there, to balance the need for speed with due process.  Judge Drain said that you have to ask always who's hurt by this particularly when its fast. He said that he had done one day prepackaged plans  when they just addressed one element of capital structure.  Judge Hale said that he  felt comfortable taking out pieces from a debtor in possession financing order presented on the first day of the case. He said that would consider putting them back in at the final hearing when all the parties have had a chance to consider them.18.    Even good judges have regrets--sometimes. Judge Drain said that he had learned to forget about a decision that he wrote almost immediately and not to get out of shape if he got reversed later on. However, the other judges gave examples of rulings they regretted.Judge Smith she regretted appointing a fee examiner in a case. She thought that it would simplify the process. However, there was so much animosity between the firms that there ended up being scorched earth attacks on the fee examiner and it ended up costing more to litigate the fee examiner's recommendations than the ultimate fee reductions made.Judge Hale said that a ruling he made denying a discharge has weighed on him for weighed on him for nineteen years. He said that the case was a learning experience and always regretted barring the  discharge.19.    Judges have experiences they remember fondly.  Judge Drain remembered a case involving a 1920s amusement park where he was able to get the parties to mediate. Judge Smith had a case where she  granted relief from the automatic stay which resulted in the debtor losing her home. About two days after the hearing,  she got a letter from debtor who said that she realized that she had no equity in the home but wanted to see how process worked. She said that she  was so mesmerized that she stayed for all the hearings. Judge Smith said that it reminded her of how important our job is. Judge Hale remembered the case of a hospital district in Quanah, Texas which had  filed chapter 9. The government officials rented a bus and brought in 50 people so they could participate in the hearing.