The National Conference of Bankruptcy Judges is back this year in Indianapolis with a hybrid format for in person and virtual attendees. About 750 in person attendees helped to prop up the local hospitality industry. Every year the conference kicks off with the Broken Bench presentation, an overview of hot issues in the bankruptcy world. This year's program was done in a Jeopardy format with host Chief Judge Pamela Pepper (E.D. Wis.). This was a fun presentation of bankruptcy trivia. While this post may not help your day to day practice, I hope you enjoy it.In the section introducing the contestants, we learned that Demetra Liggins once struck up a conversation with Tyne Daly on a New City bus. Nancy Rapoport is a competitive ballroom dancer. She experienced a wardrobe malfunction when her helper failed to secure the clasp on her gown and it started slipping down while she danced. Judge Catherine Furay (Bankr. W.D. Wisc.) both collects and designs bobbleheads.Sex and ReligionOne of the jeopardy categories was sex and religion.  One question was what should teenagers do and what bankruptcy judges can do in an appropriate case? Abstain. What is illegal except in Stockholm but required in Chapter 11? Solicitation. What must debtors provide and young people should use? Adequate protection.  What do people seek in church and debtors can use to reclaim exempt property encumbered by liens? Redemption.Famous DebtorsAnother category was famous debtors. MC Hammer was a batboy for the Oakland As before he became a famous rapper and later a Chapter 11 debtor. Cindy Lauper filed bankruptcy and was a waitress at IHOP before becoming a Grammy-winning artist.  NFL star George Foreman filed bankruptcy before the started selling his famous grills. Filmmaker Francis Ford Coppola filed bankruptcy not once but twice. Abe Lincoln filed bankruptcy in 1833 after his mercantile store failed and his partner died. He was required to surrender his horse and pay back his creditors over 17 years.  Charles Dickens's father was confined to Marshalsea Debtor's Prison. He remained confined until his mother died and he received enough money to pay his debts.The Pittsburg Penguins are the only sports franchise to have filed bankruptcy twice.Brick and MortarIn the questions on bricks and mortar, we learned that ToysR'Us is returning to the U.S. in Macy's stores. They had previously re-opened two locations which had to close due to covid. However, they retain a $2 billion foreign and ecommerce operation.Some communities are seeking to convert malls to affordable housing although they face zoning restrictions. In 2010, Blockbuster had 9000 stores in all 50 states. However, by the late 2000s Blockbuster began losing its grip on the retail rental market.  In 2019, its next to last store, located in Australia closed. There is still one store remaining in Bend, Oregon which survived covid by renting itself out as an Air BnB for 90s themed parties.Pier 1 filed bankruptcy just as covid hit. It "temporarily" closed all of its stores only to liquidate. It survives as a purely online retailer.Home Depot and Lowe's are two big box retailers which have not only survived but have thrived during covid.EthicsWizenberg v. Wizenberg (In re Wizenberg), 838 F. App’x 406 (11th Cir. 2020), involved an adversary proceeding between two brothers. The pro se Debtor (who was a lawyer) was sanctioned in the amount of $9,850 under 28 U.S.C. Sec. 1927 for shushing opposing counsel and filing lengthy and superfluous documents. Among other things, he  filed a 69-page motion to dismiss the complaint, a 153-page motion for reconsideration of the bankruptcy court’s order denying him summary judgment, and a 326- page opening statement (including exhibits) prior to the trial on the adversary complaint. His filings also included a "pointless" Haiku poem which read “All know: talk is cheap; Liars can claim anything; No evidence?! Balk!”By now, my lawyers have heard about the Texas lawyer who appeared in a Zoom hearing with a cat filter. The judge may have been purr-turbed. The attorney failed the duty of competence (including technical competence under Model Rule 1.1, comment a, but did show candor to the court when he told the court, "I'm not a cat." This was not part of the program, but I did hear the story of an attorney who fell asleep on his couch during a hearing and missed the opportunity to object to questions asked of his client. When a lawyer says, "with all due respect," they mean "with all due contempt." I made this mistake as a young lawyer and received an immediate dressing down from a U.S. District Judge. I have not used the phrase since then.StatisticsDuring 2020, Delaware led the nation with 1,660 chapter 11 filings. Close behind was the Southern District of Texas with 1,363.In 2020, Louisiana and Massachusetts each saw a 42% drop in filings./Notable and QuotableMedical bills outweigh all other types of debt in bankruptcy combined.Sen. Elizabeth Warren has stated that for every family that files bankruptcy, there are fifteen others who could benefit from bankruptcy.St. John's University School of Law  has filed an amicus brief in every bankruptcy Supreme Court case since 2006.Promesa is Spanish for promise and is also the name of the law allowing Puerto Rico to restructure its debts.

    A class action suit was filed against PNC Bank alleging violations of the Truth in Lending Act and Real Estate Settlement Procedures Act for failing to send ongoing monthly statements during and after the  chapter 7 bankruptcy case despite the HELOC being reaffirmed.  The magistrate judge issued a report and recommendation granting PNC's request to dismiss the case, but the District court rejected the recommendation.  The chapter 7 was filed in June 2018, and the HELOC reaffirmed in November 2018. The discharge was then also obtained in November 2018.  PNC has failed to send statements since at least May 2019 and appears to have continued through the decision in September 2021.  Counsel for Debtor notified PNC twice of it's failure to send statements but PNC refused to recommence sending statements.  Under TILA the HELOC constitutes an open end consumer credit plan per 15 U.S.C. §1637.  Subsection (b) of such section requires a statement for each billing cycle unless sending such statements would violate federal law.  12 C.F.R. §1026.5(b)(2)(i) ('Regulation Z').  The automatic stay of 11 U.S.C. 362 prohibits certain acts as to property of the estate or debtor, but per 11 U.S.C. 362(c)(1) the stay expires when the case is closed or a discharge is granted or denied.  As the discharge had been granted, even though the case had not yet been closed, the stay under §362(c) had expired.    RESPA applies to federally related mortgage loans, 12 U.S.C. §2605(e).  The statute defines these to include a loan secured by a lien on residential property designed principally for the occupancy of up to four families.  Regulation X, 12 C.F.R. §1024.31 excludes open-end lines of credit such as HELOC's from loans subject to this requirement.  The Magistrate recommended dismissing the count based on this exclusion.  The plaintiffs contended that the regulation impermissibly narrowed the scope of the statute, and that such regulation must fail as conflicting with the statute.  The District Court agreed with this argument, finding that the HELOC at issue was within the scope of RESPA.    The court also rejected PNC's arguments that it's act or omission was taken in good faith, finding that such defenses are affirmative defenses which must be plead and proven per 15 U.S.C. 1640(f); and that PNC did not show that a defense exists that legally defeats the claim for relief.  The District Court rejected the magistrate's recommendation and denied the motion to dismiss the case.Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com

Need debt relief in PA? Bankruptcy gives you a fresh start debt free and stress free! Can you get a fresh start through debt settlement in Philadelphia? Sometimes. But if you have multiple creditors it will be difficult to negotiate debt forgiveness with each of them.  Filing Chapter 7 bankruptcy or Chapter 13 bankruptcy brings all of your creditors to the table, allowing you to get unsecured debt discharged and renegotiate your secured debt, like your mortgage and your car loan! Concerned about what life will be like after bankruptcy? You needn’t be. Read on to find out what a bankruptcy discharge does for you, how bankruptcy affects your credit, and how you can start over after bankruptcy by renting or buying a house or buying a car. What is a Bankruptcy Discharge? The discharge in bankruptcy is an important part of how you get your fresh start. Your discharge order will provide that most of your unsecured debt, like credit cards, medical debt, and personal loans, is discharged – meaning, you are no longer personally responsible for paying off that debt.  Generally, alimony and child support are exempt from discharge and those obligations remain after the bankruptcy closes.  Student loans are rarely dischargeable. Chapter 7 and Chapter 13 both offer a discharge of unsecured debt, but Chapter 13 offers additional opportunities to: cram down a car loan and pay the car off in your 3- to 5-year plan;strip off a second mortgage and get it discharged as unsecured;get government fines and fees and IRS taxes discharged, under certain conditions;cure mortgage, car loan, or support arrears over your 3- to 5-year plan. How Long Does a Bankruptcy Stay on Your Credit Report? Up to ten (10) years. However in many cases, you can rebuild credit much quicker if you follow the instructions of the attorney who is filing your bankruptcy case. How Can I Improve My Credit Score After Bankruptcy? Again, the fact that you filed a bankruptcy petition will remain on your credit report up to ten years if you filed a Chapter 7 case, and seven years after the date of filing if you filed Chapter 13 and completed your plan, which for most Chapter 13 debtors is two years after receiving a discharge.   Many people who file bankruptcy successfully find that, since they had a low credit score prior to filing because of all their past-due debt, their credit score improves quickly after they receive a discharge because the discharge improved their debt-to-income ratio so dramatically. There are many ways in which you can rebuild your credit without having to wait seven to ten years. How Do I Rebuild Credit After Bankruptcy? The best way to rebuild credit following bankruptcy is to pay all bills in full and on time. And believe it or not, there are credit cards for people with bankruptcies. It is advisable to obtain a credit card with a low limit (like $500 or $1000) to use and pay off in full each month. This helps show your credit-worthiness. Other steps you might consider taking are: Become an authorized user on a card that a close friend or loved one with good credit has.Take out a “credit builder” loan, which is a small loan that is paid off quickly.Get a secured credit card, where you deposit the limit, usually $500 to $1000, and prove credit-worthiness by paying it off in full each month. How Do I Start Over After Bankruptcy? Once you’ve received a discharge of your unsecured debt, and perhaps restructuring of your secured debt, you have the opportunity to evaluate your budget against your income and make what adjustments you need to make to live within your means going forward. With regard to your secured debt, such as a car loan or a mortgage, if you filed under Chapter 7 you had the opportunity to surrender the collateral and get that debt discharged, or to reaffirm the debt and keep the collateral, or keep up with the payments without reaffirming the debt. You might even have been able to redeem the car, or get an affordable mortgage modification.  If you filed under Chapter 13 either you have gotten caught up with loan arrears or restructured the debt. In any case, your attorney will have worked with you to make sure that, with your unsecured debt discharged and perhaps your secured debt restructured, your income is sufficient to pay your expenses going forward. Can I Rent After Bankruptcy? Yes. What you need to do is show potential landlords that you are not a credit risk because the debt obligations you could not meet are now discharged.  Proof of income will likely be required, and some landlords might require a larger security deposit due to your bankruptcy – but you will be able to rent soon. How Soon After Bankruptcy Can I Buy a House? You CAN buy a house after filing Chapter 7 or Chapter 13 bankruptcy, but a waiting period will apply.  If you filed Chapter 7 bankruptcy, you will wait at least two years to be eligible for an FHA mortgage. During that two year period you must show a positive credit history. If you needed to file bankruptcy due to events out of your control, such as medical issues, job loss, death of your spouse, or natural catastrophe, the FHA can reduce the waiting period to one year before buying a house after bankruptcy. VA loans are also subject to the two-year waiting period and a minimum credit score. If you filed Chapter 13 bankruptcy, you can apply for an FHA loan anytime after 12 months, during which you must show you’ve made all of your Chapter 13 plan payments in full and on time. You will also need to seek the permission of the bankruptcy court to purchase a home while in Chapter 13. The Bankruptcy Court will typically grant permission as long as it sees that you are able to make the payments without struggling. If you are seeking a conventional loan, such as those made by lending institutions then sold to servicers Fannie Mae and Freddie Mac, the rules are different.  If you filed Chapter 7 due to mismanagement of your finances, you will need to wait four years before applying for a loan. If you had to file Chapter 7 due to circumstances beyond your control, the waiting period is reduced to two years. If you filed Chapter 13, completed your plan and received a discharge, you will need to wait two years before applying for a conventional loan. If your Chapter 13 case was dismissed and you did not receive a discharge, the waiting period is increased to four years. Those debtors filing multiple bankruptcy cases in the last seven years must wait five years before applying for a conventional loan.  Can I Buy a Car after Bankruptcy? Yes. Again, the rules are different depending upon whether you filed under Chapter 7 or Chapter 13. If you filed Chapter 7 you will need to wait until your case closes to apply for a car loan. But prior to applying for a car loan you should do what you can to improve your credit score. It takes about six months after you receive your bankruptcy discharge to see a bump up in your credit score as the credit bureaus take notice of your improved debt-to-income ratio. And in those months you should be making all of your monthly payments in full and on time.  Once these six months pass, you can start applying for car loans. Be advised that you will be offered a high interest rate or a longer repayment term because you are considered higher-risk having filed bankruptcy. If you have no other choice, take the loan and aim to pay it off a bit early, you will save on interest. Even an extra $50 per monthly payment will help. Another way to save money is to recruit a co-signer with good credit, or simply decide to purchase a less expensive car than you would otherwise. Certified pre-owned cars can be a very good value. If you’ve filed a Chapter 13 petition you will need either need the permission of the Court or the approval of the Chapter 13 Trustee to purchase a car while your case is active, and you will need to show that you can afford the payments as well as the Chapter 13 plan payments and your other expenses. An experienced Fresh Start Attorney in Philadelphia will help you. Do you need to start over? If you are considering debt settlement because you are concerned about the consequences of filing bankruptcy, we can help you decide which is best for your unique financial situation and goals. Your initial consultation with us is free of charge! If you are considering filing bankruptcy because you need a fresh start, but are concerned about your credit and know that you need to buy a car or a home soon, call or email us to schedule your free, no-obligation consultation. We will look at your finances and explain all of your options. Call us at 215-625-9600 to review your specific situation with us – free of charge! The post Philadelphia Bankruptcy Lawyer Helps with Fresh Start After Bankruptcy appeared first on David M. Offen, Attorney at Law.

 https://www.theguardian.com/us-news/2021/oct/02/new-york-city-taxi-medallion-drivers-debt

Having a doctor’s letter included in your Social Security Disability Insurance (SSDI) benefits application could significantly help your claim. Medical professionals, especially your treating physician, add a level of credibility and helps examiners understand how your condition impedes your ability to work. However, not all doctor’s letters are effective. You want to ensure that, if […] The post How Do I Ask My Doctor to Write My Disability Letter? appeared first on .

A common fear people have when discussing the idea of filing for bankruptcy is losing their property, especially their house. Equity is the key factor when determining how your home is handled in bankruptcy. Your equity is the proceeds you would realize if you sold your home after all liens, fees, and other costs were […] The post How Much Equity Can You Have in a Home and Still File For Bankruptcy in Pennsylvania? appeared first on .

 https://www.cityandstateny.com/policy/2021/09/nyc-and-taxi-drivers-have-very-different-ideas-how-tackle-medallion-debt/185660/

 https://www.cutimes.com/2021/09/29/former-melrose-cu-ceo-alan-kaufman-sentenced-to-prison/

A Reaffirmation Agreement is an agreement that Chapter 7 debtors may sign to reassume personal liability for secured debt and keep the collateral. Most often Chapter 7 debtors will reaffirm debt for their car, boat, rv, or other high-value personal property.  Filing a Chapter 7 bankruptcy petition breaks all contracts the debtor had previously. Signing and filing a Reaffirmation Agreement re-creates the contractual relationship between creditor and debtor. Usually, the debtor must be current on the loan, although debtors’ attorneys have succeeded in rolling small amounts of loan arrears into the balance of the Reaffirmation Agreement.  In many cases, it may not be worth it to reaffirm a debt unless the creditor offers you some benefit such as a lower interest rate. What Does Reaffirm Mean? Normally, a Chapter 7 debtor is discharged of debt and the secured lender can repossess a car or boat or other property (called “the collateral”) once the bankruptcy case closes, or sooner if the lender files a Motion for Relief from the Automatic Stay with the Bankruptcy Court. In many cases, however, the lender will not seek to repossess the collateral if you are up to date on the payments. In order to keep the collateral, a debtor reaffirms the debt by signing a new contract reassuming personal liability for mortgage or car debt. This overrides the discharge and the debtor remains liable for this debt following the entry of the discharge order and the closure of his or her bankruptcy case. You should speak with your lawyer to find out if reaffirmation is right for you. Usually, the terms of the Reaffirmation Agreement will mirror the terms of the original loan, and that is why it may not always be a good idea to sign them. Some debtor’s attorneys have been successful in negotiating more favorable terms, such as a lower interest rate. Reaffirmation Agreements and Bankruptcy Exemptions In order to retain the collateral and sign and file a Reaffirmation Agreement, the attorney for the Chapter 7 debtor must creatively apply exemptions to any equity the debtor has in the collateral to protect the collateral from the seizure and sale by the Chapter 7 Trustee for the benefit of creditors. Is a Reaffirmation Agreement Necessary? Entering into a Reaffirmation Agreement is always wholly voluntary. However, since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“the Act”) was passed into law, Chapter 7 debtors wishing to retain any collateral securing debt are supposed to file a Reaffirmation Agreement to definitively prevent lenders from repossessing the collateral after the bankruptcy case closes.  Why? Because most secured loans contain a clause providing that filing bankruptcy itself violates the contract between lender and debtor. While this is a point of frequent litigation, from a lender’s point of view the act of filing bankruptcy and a discharge of the underlying debt reduces the lender’s available remedies if the debtor later defaults on payments.  All a lender can do at that point is repossess the collateral and sell it. Most of the time collateral sells at auction for far less than the debtor owns on the loan, but absent a Reaffirmation Agreement the lender can no longer pursue the debtor for any account deficiency because that debt has been discharged, meaning, the debtor no longer is personally responsible to pay that debt. The upshot is, even if a Chapter 7 debtor remains up to date on monthly payments, if the debtor does not sign and file a Reaffirmation Agreement the lender is sometimes free to exercise the right to repossess the collateral under the Act once the bankruptcy case closes and anytime thereafter regardless of whether the debtor is current on payments, or not. This is why you need to discuss the specific facts of your case with your attorney to see if Reaffirmation is appropriate for you. How Long Do You Have to File a Reaffirmation Agreement? A Reaffirmation Agreement must be filed within 60 days after the first scheduled 341(a) Meeting of Creditors. This deadline may be extended by the Bankruptcy Court.  What Happens When You Reaffirm a Debt? Once a Chapter 7 debtor executes a Reaffirmation Agreement, the lender or the debtor’s attorney files it with the Bankruptcy Court and the Court schedules a Reaffirmation Hearing. What Happens at a Reaffirmation Hearing? A debtor and his or her attorney appear at the courtroom of the judge assigned to the debtor’s Chapter 7 case. The hearing may be in person or held remotely, especially since the onset of Covid-19. The judge will ask the debtor questions about his or her finances in order to determine whether entering into the Reaffirmation Agreement is in the debtor’s best interests. The judge’s primary concern is whether the debtor can realistically afford to make the monthly payments going forward. A Chapter 7 debtor should consider carefully whether the monthly payment is affordable, because if it is not and the debtor fails to make payments, the lender then has the right to foreclose or repossess and also the right to sue for the account deficiency, since the Reaffirmation Agreement overruled a discharge of that debt. In many cases signing a Reaffirmation agreement may not be the best move and you need to discuss the same with your lawyer. What Happens if I Do Not Sign a Reaffirmation Agreement? If you do not sign a Reaffirmation Agreement when the secured creditor sends you one, you run the risk of having the collateral repossessed following the closure of your Chapter 7 Bankruptcy case. What Happens if You Do Not Reaffirm a Mortgage? Probably nothing if you keep current on your mortgage payments. If a debtor reaffirms a mortgage and continues to make monthly mortgage payments, the lender will report the account as current to the credit bureaus. However, as a matter of practice, most mortgage lenders do not send debtors a Reaffirmation Agreement to sign.  There is little risk that the lender will foreclose on the debtor’s property as long as the debtor makes monthly mortgage payments timely and in full. Foreclosure is an expensive procedure for mortgage lenders, so as long as you keep current on the mortgage you should be able to stay in the house. If you do not reaffirm a mortgage and at some point in the future you can no longer afford to make monthly mortgage payments, you can walk away from the property with no personal liability for the mortgage because you received a discharge of that debt. Can I Sell My House if I Did Not Reaffirm? Yes, you can. You are still the record owner of the property, and if you did not reaffirm you are not personally liable for the mortgage. The property could be sold for less than what you owe (short sale) and you would not be liable for the deficiency on your account, but this would require the approval of the mortgage lender. Can I Trade in My Car After Reaffirmation? Yes, you can trade your car in as long as your new loan pays off the balance of your previous loan.   Can I Cancel a Reaffirmation Agreement? Yes, you have 60 days to rescind a Reaffirmation Agreement, if the court approved it but you subsequently changed your mind. Does Reaffirming Help Credit? Yes! The lender will report your loan as current to the credit bureaus. If you do not reaffirm, the lender does not report payments you make in many cases, so making monthly payments without a Reaffirmation Agreement may not help rebuild your credit following your Bankruptcy case. Should I Reaffirm? Can I Reaffirm? If you are considering filing bankruptcy but are concerned about whether you should reaffirm any secured debt, or whether the collateral you want to keep has too much equity to reaffirm, contact an experienced bankruptcy attorney to schedule your free consultation. To be forewarned is to be forearmed! Knowledge gives you power to do the right thing. The post What is a Reaffirmation Agreement in a Chapter 7 Bankruptcy? appeared first on David M. Offen, Attorney at Law.

 That article can be found at Jacobin Magazine at  https://www.jacobinmag.com/2021/09/nyc-taxi-cab-medallion-debt-speculative-bubble-values-nytwa-city-hall