I’m worried about you, especially with more and more people on the verge of maxing out their credit cards.  Credit cards are extremely convenient and easy to use. With the holidays coming up – Black Friday, Small Business Saturday, Cyber Monday, Hanukkah, Christmas – there are all kinds of incentives to buy. But with temptation to charge comes consequences at large. Alarming Credit Card Debt Statistics People are using their charge cards at very high rates – between 80-90% of availability. This is red alert territory. According to LendingTree, as of December 2022, Illinois ranks 16th in the country for the highest average credit card debt per person ($7,756). Also, the 30-day delinquency rate – or the percentage of total outstanding credit card balances at least 30 days overdue – climbed to 2.77% by the second half of 2023. That’s the highest rate seen since Q3 2012. Here are some more key statistics pulled from WalletHub’s national survey:  56% of Americans say they have more credit card debt than they did 12 months ago 57% of Americans with credit card debt say it will take them more than a year to pay it all off 54% of Americans say that credit cards overall have cost them more money than saved them money 23% of Americans are in debt because of frivolous spending 24% of Americans would move in with their in-laws to get out of credit card debt For us, this is an early warning sign of bankruptcy. Credit card companies start dunning you when you are 60 days behind payment. They may even file suit and garnish your wages when you fall 90 days or more behind. Want a brighter financial future? Speak with an experienced debt consolidation lawyer. What Happens If You Max Out a Credit Card? Having a maxed out credit card means that you’ve met or exceeded your credit card limit. You have no more borrowing power until you pay off the monthly minimum amount plus interest. New spending habits must be created in order to pay off a maxed out credit card. Here are some ways you can do just that. 1. Hide Your Credit Cards Yes, physically take out your maxed out credit cards from your wallet and lock them in a vault. Freeze your cards, then hide them in a secure and inconspicuous place – behind a picture frame, buried in a potted plant, inside the freezer. You can also leave your cards with a loved one. This creates more visibility and accountability on your part for tackling the debt head-on, not continuing to build on it. 2. Remove Digital Wallets Apple Wallet, Google Wallet, Amazon, Uber, Lyft, DoorDash – these are common places where you can store your payment information and make online purchases with just a single tap. Remove saved credit cards from your apps and online accounts. If you need to make a purchase, use your debit card or a payment service that’s linked to your bank account like PayPal or Venmo. 3. Calculate What You Owe The principal might be $4,000 right now, but you’ll need to pay off more than the minimum amount each month if you want to make a significant dent on your credit card balance. We recommend using a credit card minimum payment calculator to determine exactly what your payment schedule must look like in order to wipe clean of your debt. Use this time to carefully examine your budget and cut out things that you don’t need. 4. Start Paying Off Your Debt Figure out which credit card has the highest rate of interest and put as much as you can above the minimum payment on that card until you pay it off. Repeat with the card with the next highest rate. Make sure to redeem any accumulated reward points you have accrued for spending or paying off your credit card balance. These statement credits will help speed up the repayment process. 5. Negotiate with Credit Card Issuers Don’t have any money left over to pay your debt? Contact each credit card company and ask them to reduce their interest rate. It never hurts to ask. If you have good credit, you may be eligible to transfer one balance to another credit card.  Settle Your Debt with a Credit Card Debt Lawyer Chapter 7 or Chapter 13 bankruptcy are last resort options to consider for outstanding debt. If you are being sued, garnished, can’t sleep, or can’t deal with your debt, contact David P. Leibowitz from Lakelaw – Chicago’s most trusted bankruptcy law firm.  At Lakelaw, we have represented over 10,000 cases in the past 50 years, helping our clients to confidently navigate through any financial crisis. We have also been recognized for excellence by every rating service in the industry including Super Lawyers 2024 and Martindale-Hubbell Client Champion 2023. At Lakelaw, we represent you fearlessly and zealously. Contact us today to schedule a free confidential consultation. The post Maxed Out Credit Cards? 2023 Statistics & How to Clear Your Debt appeared first on Lakelaw.

Author's Note: I started writing this post in April. My life has been a bit busy this year so I haven't blogged as much as in prior years. If you are already familiar with the holding of Moac Mall Holdings, you may want to skip to the end to the What It Means section.In Justice Ketanji Brown Jackson's first major opinion, the Supreme Court ruled that 11 U.S.C. Sec. 363(m) is not a jurisdictional bar and batted away an appellate mootness argument. The ruling means that Mall of the Americas may continue to challenge the assignment of a lease to a subsidiary of a purchaser in the Sears bankruptcy case. However, in a larger sense, the opinion is a challenge to the rulings that have shielded many bankruptcy court rulings from appellate review. The case is No. 21-1270, MOAC Mall Holdings, LLC v. Transform Holdco, LLC, 508 U.S. ___ (U.S. 4/19/23). You can find the opinion here. What HappenedWhen Sears filed bankruptcy, it sold most of its assets to Transform Holdco, LLC. One of the assets it purchased was the right to designate who leases would be assumed and assigned to. It formed a subsidiary to assume a lease at Mall of the Americas. Mall of the Americas objected that Transform Holdco could not prove that its newly formed entity could not provide adequate assurance of future performance under 11 U.S.C. Sec. 365(f)(2)(B). The Bankruptcy Court overruled the objection. MOAC requested a stay pending appeal. The Bankruptcy Court denied the stay on the basis that Sec. 363(m) did not apply. Transform insisted that it would not rely on Sec. 363(m).MOAC appealed to the District Court which reversed the order approving the assignment. Transform then moved for reconsideration on the basis that Sec. 363(m) deprived the Court of jurisdiction to hear the appeal (the very position it had told the Bankruptcy Court it would not assert). The District Court was not happy and said some choice things about Transform. Nevertheless, it held that it lacked jurisdiction and dismissed the appeal. MOAC appealed to the Second Circuit which affirmed in an unpublished order.The Issue at the Supreme Court Section 363(m) states that:The reversal or modification on appeal of an authorization under [§363(b) or §363(c)] of a sale or lease of property does not affect the validity of a sale or lease under such authorization to an entity that purchased or leased such property in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and such sale or lease were stayed pending appeal.The Second Circuit had previously held that Sec. 363(m) was jurisdictional, meaning that an appellate court had no power to review an order falling within its power while the Third and Eleventh Circuits said that it was not. Justice Jackson framed the issue this way:In this case, we are called upon to decide whether §363(m)’s strictures are jurisdictional. If so, a party may invoke that provision at any time—without fear of waiver, forfeiture, or similar doctrines interposing. If not, courts can apply such doctrines when evaluating §363(m) issues, where appropriate. Opinion, p. 2. It's Not Jurisdictional Justice Jackson and the unanimous Court concluded that Sec. 363(m) was not jurisdictional. Congressional statutes are replete with directions to litigants that serve as “preconditions to relief.” Filing deadlines are classic examples. So are preconditions to suit, like exhaustion requirements.  So, too, are “statutory limitation[s] on coverage,” or“on a statute’s scope,” such as the “element[s] of a plaintiff ’s claim for relief.” Congress can, if it chooses, make compliance with such rules “important and mandatory.” But knowing that much does not, in itself, make such rules jurisdictional.The “jurisdictional” label is significant because it carries with it unique and sometimes severe consequences. An unmet jurisdictional precondition deprives courts of power to hear the case, thus requiring immediate dismissal. And jurisdictional rules are impervious to excuses like waiver or forfeiture. Courts must also raise and enforce them sua sponte.This case exemplifies why the distinction between nonjurisdictional and jurisdictional preconditions matters. In light of Transform’s belated invocation of §363(m), the District Court stated that, “if ever there were an appropriate situation for the application of judicial estoppel, this would be it.”  But not even such egregious conduct by a litigant could permit the application of judicial estoppel as against a jurisdictional rule. In view of these consequences and our past sometimes-loose use of the word “jurisdiction,” we have endeavored “to bring some discipline” to this area.  We have clarified that jurisdictional rules pertain to “ ‘ “the power of the court rather than to the rights or obligations of the parties.” ’ ” And we only treat a provision as jurisdictional if Congress “ ‘clearly states’ ” as much. This clear-statement rule implements “Congress’ likely intent” regarding whether noncompliance with a precondition “governs a court’s adjudicatory capacity.”  We have reasoned that Congress ordinarily enacts preconditions to facilitate the fair and orderly disposition of litigation and would not heedlessly give those same rules an unusual character that threatens to upend that orderly progress.Opinion, pp. 7-8 (cleaned up). To sum up, jurisdictional limitations are limitations on the power of the court, not the parties and Congress must clearly state when it is imposing a jurisdictional limit. First, there must be an express jurisdictional grant, such as diversity jurisdiction or bankruptcy jurisdiction under 28 U.S.C. Sec. 1334 or appellate jurisdiction under 28 U.S.C. Sec. 1291. If there is not an affirmative grant of jurisdiction, the court has no power to proceed. However, even if there is an affirmative grant of jurisdiction, there may be cases in which Congress has taken that jurisdiction away. Transform was arguing that Sec. 363(m) fell into this second category, that it took the power to adjudicate certain disputes regarding sales or leases away from the appellate courts if a stay pending appeal was not granted. Supremes Say No to Equitable MootnessIn keeping with the focus on deciding cases on the merits, the Court also rejected an equitable mootness argument. This was not a hard call. None of the lower courts applied equitable mootness. As a result, there was not a factual record for the court to rule on. To apply equitable mootness at the Supreme Court level, the Court would have to find that application of the doctrine was required under the undisputed facts of the case. Justice Brown dispatched this argument as easily as she rejected the jurisdictional argument. (Note: The Court's opinion addressed mootness first. Because it was a secondary issue to me, I addressed it in order of importance). Justice Brown explained equitable mootness using these words:A “case becomes moot only when it is impossible for a court to grant any effectual relief whatever to the prevailing party.”  The case remains live “‘[a]s long as the parties have a concrete interest, however small, in the outcome of the litigation.’” Opinion, p. 5. Justice Brown noted that mootness is disfavored, which must have come as a surprise to all of the hundreds of courts that have used it as a means to clear their dockets. In the end, she found that that the Supreme Court was not going to not going to act as a court of first review where it was not clear that no relief could be granted. She wrote:Here, as elsewhere, we decline to act as a court of “‘first view,’” plumbing the Code’s complex depths in “‘the first instance’” to assure ourselves that Transform is correct about its contention that no relief remains legally available.Opinion, p. 6. Under this formulation, mootness is a doctrine of last resort. For example, if a criminal defendant passes away while a case is on appeal, the correctness of the sentence becomes moot since the defendant has already been granted release. The Post-Script On November 6, 2023, the Second Circuit vacated the decision of the District Court and remanded the case for further proceedings. MOAC Mall Holdings, LLC v. Transform Holdco (In re Sears), 2023 U.S. App. LEXIS 29477 (2nd Cir. 2023). It found that because Sec. 363(m) was not jurisdictional, the District Court should not have dismissed the appeal.   

Debt is not pleasant. If you are in debt, you likely want to get rid of it as soon as possible. The nasty feeling of being in debt may make people think that being in debt is illegal. Some may worry that they are going to go to jail if they do not pay off their debts. However, in reality, being in debt is not illegal in the slightest. For most kinds of debt, you cannot go to jail for leaving them unpaid. The only consequences will be in the form of potential lawsuits and other negative life consequences. However, there are certain kinds of debt that, if left unpaid, can land you in jail. This includes things like child support and theft. For a free, confidential case review, call our Pennsylvania debt attorneys from Young, Marr, Mallis & Associates at (215) 701-6519. Is Being in Debt Illegal in Pennsylvania? It is not illegal to be in debt. That being said, it is not a fun experience. You may feel as if a debt collector could be right around the corner, outside your home, or calling the next time the phone rings. It may not feel as if you have full control of what is going on. For that reason, many people mistakenly believe that being in debt, usually for long periods of time, is against the law. The logic is that debt feels really bad, so it must be illegal. This, however, is not true. In the vast majority of cases, while there may be civil or life consequences for debt, there are not criminal ones. Can Debt Send You to Jail in Pennsylvania? Most debts cannot land you in jail. However, failure to pay certain kinds of debt may result in your arrest and time in jail. Our lawyers have denoted these specific kinds of debt in this section, and we will go into a brief explanation of each one. Child Support Child support payments are court-ordered payments for a parent to support the cost of raising a child. These payments usually go on until the child has reached 18 years old. Unlike with other debts, like credit card debt, you can be sent to jail for failure to pay child support. Unpaid Taxes Unpaid taxes can create debt to the government. The Internal Revenue Service takes tax evasion and filing fraudulent taxes very seriously. This is another form of debt that can land you in jail. Contempt of Court Contempt of court is when someone does something in direct defiance of a court of law. While not necessarily directed at debt specifically, contempt of court can land you in jail for failure to pay off a debt. For example, suppose you are sued for an unpaid debt by a creditor. Against the judgment and advice that our Philadelphia debt lawyers certainly would give, you do not show up to court. The court then orders you to either pay the debt or show up to court. You do neither. At that point, you are in contempt of court and can be arrested and put in jail. So, while contempt of court does not always deal with debt, if it does, it can land you in jail. Can Debt Collectors Arrest You for Unpaid Debts in Pennsylvania? Debt collectors do not have the world’s greatest reputation, and that poor reputation is not entirely unearned. Indeed, debt collection companies use many tactics to try and not-so-gently persuade people to pay their debts. Some of these tactics can include trying to intimidate debtors with things the debt collector knows are false. As an example, debt collectors may threaten to sue someone after the statutory period to do so has run out. Additionally, they may try to tell you that debt will land you in jail if unpaid. Note that it is not legal for debt collectors to tell you that you will go to jail for unpaid debts. They are banking on the fact that most people will get scared and immediately try and pay off the debt. However, it is better to contact an attorney and work towards becoming debt-free in the way that is best for your situation. Steps to Take if You Cannot Pay Your Debts in Pennsylvania Just because you cannot go to jail for not paying your debts does not mean you should neglect trying to resolve them. You should try and take action towards paying off your debts. We’ll go through some of your options below, and our lawyers can help you with whichever one you choose. Restructure Payments One way to try to resolve debts amicably is to restructure your agreement with your creditor. For example, if you are having trouble meeting payment deadlines, our lawyers can work with your creditor to potentially lengthen the term of the agreement in exchange for payments in a lower amount. Restructuring is frequently used in real estate, especially when a deed is at risk for foreclosure because of missed payments. File for Bankruptcy Another way to deal with debt is to file for bankruptcy. Bankruptcy is not nearly as desperate a move as one may initially believe. What filing for bankruptcy does is put a hold on all debt collection efforts against you, and the court takes over and works out a way to resolve your debt. This is most commonly done by selling off assets until either the debt is paid or there are no more eligible assets. At that point, you are considered clear of debt, regardless of how much of it was paid off by liquidated assets. Talk to Our Pennsylvania Debt Lawyers Right Away Call Young, Marr, Mallis, & Associates at (215) 701-6519 and speak to our Bucks County debt lawyers today.

A statute of limitations on debt is a legal timeframe within which creditors can initiate legal proceedings to recover outstanding debts. In essence, it sets a deadline for taking legal action, providing a time window during which creditors can sue debtors for non-payment. Once this predetermined period elapses, creditors lose their legal right to pursue debt collection through the courts. New Jersey enforces a six-year statute of limitations on all types of debt. After reviewing the specifics of your case, our legal team can help determine how this statute of limitations will be applied and how your case may be affected. If you need help resolving debt-related issues, seek support from our New Jersey bankruptcy attorneys at Young, Marr, Mallis & Associates by dialing (609) 755-3115. The Statute of Limitations on Debt in New Jersey In accordance with N.J.S.A. § 2A:14-1(a), New Jersey imposes a six-year statute of limitations on all types of debt, whether written, oral, promissory, or open. After this timeframe elapses, pursuing legal action to recover the debt through litigation or force becomes legally untenable. It is important to note that the expiration of the statute of limitations does not render the debt null and void; instead, it serves to protect the debtor from undue harassment by creditors or collection agencies. While the debt remains legally valid, the debtor gains protection from coercive collection tactics after the statute of limitations expires. The debt, however, can only be considered officially cleared under specific circumstances, such as when the debtor makes a payment, is declared bankrupt by a court of law, or when the creditor chooses to write it off. Fortunately, our North Jersey bankruptcy attorneys can help navigate debt-related challenges. We can offer thorough guidance to our clients while seeking both financial relief and protection from intrusive collection practices. When Does the Clock Start Ticking on the Statute of Limitations for Debt in New Jersey? Understanding timing is crucial when dealing with statutes of limitations on debt, specifically knowing when the six-year period starts and ends. The countdown kicks off on the last day the debtor did not do anything with the account. This includes making a payment, acknowledging the debt with an agreement to pay, or setting up payment arrangements. Importantly, if any of these actions happen, the clock resets. To prove that one of these actions occurred, it is vital to gather evidence like receipts, texts, or emails between you and your creditor. Keeping a clear record of partial payments or debt acknowledgments is also key. After reviewing the specifics of your case, our legal team can help determine how the statute of limitations should be applied. Types of Debt Covered by New Jersey’s Statute of Limitations New Jersey’s statute of limitations on debt is comprehensive, meaning that it applies to all types of debt. For instance, creditors will only have six years to sue for the recovery of any of the following: Written Debt Written debt refers to financial obligations that are documented in a written agreement. This could include formal contracts, loan agreements, or any other written commitments outlining the terms and conditions of the debt. These written documents serve as crucial evidence in legal matters and are subject to the six-year statute of limitations in New Jersey. Oral Debt Oral debt, in contrast, involves informal agreements made verbally between the debtor and the creditor. While these agreements lack the formality of written contracts, they still fall under the purview of New Jersey’s statute of limitations. Verifying and proving the existence of oral debt may require additional evidence, such as witnesses or other supporting documentation. Promissory Debt Promissory debt centers around promises to repay a financial obligation. This form of debt often involves a written commitment to pay a specified amount by a certain date. The terms and conditions outlined in a promissory note guide the repayment process. Understanding the nuances of promissory debt is essential for individuals and creditors navigating the legal aspects of debt recovery in New Jersey. Open Debt Open debt is characterized by ongoing, flexible arrangements where the debtor may make variable payments over time. This type of debt does not have a fixed repayment schedule and the terms can be more fluid. Despite its open nature, it is crucial to recognize that open debt is still subject to the statute of limitations set by New Jersey law. This includes understanding when the clock starts and the actions that may reset it, as outlined by the statute of limitations. When to Contact Our Lawyers if You Are Being Sued Over a Debt in New Jersey Being sued over a debt can be a very stressful experience. If you are being sued by a creditor, then you should not wait to reach out to the team at our law firm. There multiple ways that we may be able to help with your case. Firstly, we will meticulously review the details of your case, examining the circumstances surrounding the debt and ensuring all the proper protocols have been followed. Our legal professionals will then strategize a robust defense, utilizing our knowledge of New Jersey’s debt laws to your advantage. In the event that negotiations are possible, our lawyers will work to reach a favorable settlement on your behalf, one which minimizes the financial impact and potential consequences of your case. If litigation becomes necessary, then our attorneys will guide you through the entire process. We will fiercely represent your interests in court and presenting a compelling case to challenge the debt lawsuit. Our team understands the stress associated with being sued for debt, and we prioritize communication. We will keep you informed about the progress of your case and provide thorough guidance on the most prudent actions to take. Contact Our Law Firm for Help Resolving Your Debt-Related Issue in New Jersey Get assistance from our Trenton, NJ bankruptcy lawyers by calling Young, Marr, Mallis & Associates at (609) 755-3115 for a free case assessment.

Having debt of any kind looming over your head is one of the most unpleasant experiences possible. This can be compounded if the debt is such that it cannot easily be paid off. Working towards paying off one debt may lead to another, which can feel like a never-ending cycle from which there is no escape. It may feel like you will be dealing with debt forever and are simply waiting for someone to try to collect. However, the reality is that creditors have a limited time to collect debt. In Pennsylvania, the statute of limitations for a debt collection is four years from the first missed payment. After that time is up, a debt cannot begin to be enforced, no matter how large. However, unscrupulous debt collection companies may still try and collect the debt anyway. In those instances, you need to fight for your rights in court and make sure that these debt collectors leave you alone once and for all. For help with your debt-related needs, call our Pennsylvania debt attorneys from Young, Marr, Mallis & Associates at the number (215) 701-6519 for a free overview of your situation. What is the Statute of Limitations in Pennsylvania, and How Long Does it Last for Debt? Each state has a set of laws called statutes of limitations that put a time limit on how long claimants have to file a lawsuit. After the “statutory period,” the time period denoted in the statute, is up, the statute of limitations is said to have “run,” and the aggrieved party can no longer file a lawsuit or collect any damages. There are different statutory periods for different things. Personal injury claims, criminal claims, and more will all have their own statutory period. For debt collection, the statutory period in Pennsylvania is four years from when the debt is accrued under 13 Pa.C.S. § 2725. Technically, this is the statute of limitations for breaches of contract. However, most debt can be seen as a breach of contract. Debt usually refers to a failure to make a payment that has been structured in an agreement, like a mortgage or oral promise. Both of those things would be considered contracts. It is important to remember that the statutory period starts when the breach is made. Thus, the statutory period is extended each time you make a payment on the underlying agreement for the debt. Does the Statute of Limitations for Debt Prevent All Debt Collection Having a time limit on how long a creditor can bring a cause of action for debt may sound appealing. One conclusion at this point may be that it is beneficial to simply wait out debt for the statutory timer to run out, leaving the creditor high and dry without any payment. However, that would be a bad idea for the following reason. While the statute of limitations does prevent lawsuits to collect debt after a certain time period, it does not prevent other attempts at trying to collect debt. This means that it only prevents creditors from trying to collect debt in court. They can still resort to other means of trying to collect debt. Often, the means that creditors will try to employ at this point may toe the line of legality, so you should speak with our Philadelphia debt attorneys if you feel that your rights are being violated by debtors after the statutory period is up. Things Debtors May Try and Do After the Statute of Limitations Has Run in Pennsylvania Since debtors are not entirely barred from trying to collect debt after the statutory period has run, you may still experience trouble from them at that point if you still have debt. However, that does not mean you have to put up with it. Debt collectors sometimes use nefarious tactics to try and obtain payments, and some of those tactics may involve trying to trick you into thinking you are in trouble. Fortunately, our lawyers have compiled and explained some of the tactics debt collectors may use so that you are prepared to recognize them. Threatening to Sue When They Cannot Even though the statute of limitations for debt is four years, many debt collectors will bet on the fact that the majority of the population is unaware of this fact. Accordingly, debt collectors may try to intimidate you by threatening to sue, even if they no longer can. Do not fall for this trick. Threatening Criminal Prosecution Being in debt is not a crime. However, debtors will certainly treat it like it is. Again, they will be relying on the fact that people may not know that debt is not a crime. They may try to threaten debtors with criminal prosecution if they do not pay their debts. In extreme cases, they may even send a fake summons or similar official-looking legal document. This threat, of course, is empty and could be illegal depending on the debt collector’s specific conduct. Excessive Contact Attempts Sometimes, debt collectors will just try and wear you down. They may call, email, or otherwise contact you incessantly. If this conduct reaches an extreme degree, it may be illegal. For example, creditors cannot contact you during traditional work hours or late at night or show up at your house at strange hours. Note that although creditors can show up at your house, they must do it at reasonable times. So if they show up at 3:00 AM to collect, that would not be permitted. Call Our Pennsylvania Debt Lawyers Now Young, Marr, Mallis & Associates has Allentown, PA debt attorneys ready to take your calls at the number (215) 701-6519 to discuss your case.

When you have debt, creditors can sue you to make you repay them. Like many causes of legal action, there is a statute of limitations on debts, and creditors only have so much time to file a case against you. The deadline on your debts will depend on what state you live in. Some states might have longer statutes of limitation than others, and it is imperative that you find an attorney in your state who can help. If you want to dispute a debt with a creditor, be careful. Doing so could reset the clock on your debt, allowing the creditor more time to file a case against you. Speak with your lawyer; they can help you navigate the dispute process without restarting the clock. In some cases, it might be better to wait out the clock than initiate a dispute. If the deadline expires, creditors can no longer come after you for payment, and whatever dispute you might have had could be moot. If you have debts you wish to dispute, call our Pennsylvania bankruptcy lawyers for assistance at (215) 701-6519, and our legal team at Young, Marr, Mallis & Associates can arrange a free initial case review. What is the Statute of Limitation on a Debt? Your first question is probably about the deadline on your specific debts. This is a tough question to answer, as the statute of limitation might vary based on your situation. For example, in New Jersey, the statute of limitations on debt is 6 years. However, in Pennsylvania, the statute only allows creditors 4 years to take legal action to get payment. The deadline might also depend on the nature of the debt. Is your debt from something like unpaid credit cards, or is it related to a contract of some kind? These debts are very different, and creditors’ deadline to pursue legal action may differ. If you are facing any legal action from a creditor, talk to your lawyer about the debt in question and when the debt was incurred. There is a chance the deadline for creditors to take action is fast approaching. What Happens to the Statute of Limitations if I Dispute a Debt? The tricky thing about the statute of limitations on many kinds of debt is that the clock might be paused or even reversed under certain circumstances. If you attempt to contact creditors and dispute the debt, your actions could cause the clock to restart, thus allowing creditors more time to take legal action against you. For example, if you acknowledge that the debt in question is yours and that you owe this money to the creditor, the statute of limitations might reset. Remember, when a deadline on a debt resets, it resets for the entire balance, not just the portion you want to dispute. If you want to deny the debt outright and argue that you do not owe it or did not incur it in the first place, the clock might not restart. Even so, speaking with an attorney in your state about the situation is wise before you do anything. If you contact creditors before speaking to a lawyer, you risk restarting the deadline and allowing creditors more time to file a case against you. If they win their case, they can compel you to pay the debt or face legal consequences. Should I Dispute a Debt or Wait Out the Statute of Limitations? The thing about a statute of limitation is that it might work in your favor. If, for whatever reason, creditors have not taken any legal action against you by the time the statute expires, they no longer have a legal claim and cannot compel you to pay the debt. As such, you need to speak with your lawyer about the debt in question to determine how close the deadline is to passing. You might want to dispute a debt, but after speaking to our Philadelphia bankruptcy lawyers, you might learn that the statute of limitations is very close to expiring. In that case, talk to your lawyer about the risks of simply waiting out your creditor. If the deadline expires soon, our team can help you make sure the creditor stops coming after you about repayment. It is possible that the deadline has already expired on a debt that has recently come to your attention. Perhaps you shut off the power at your previous home or apartment only to find out the power company left it on by mistake, racking up a large, unpaid bill you did not know about. Next, suppose the power company never realized the debt was unpaid and failed to take legal action to compel payment. If the power company suddenly realizes its mistake, it might try to get you to pay even though it knows it legally cannot force you. Talk to your lawyer about all debts you wish to dispute. You never know what you might find out. How is the Statute of Limitations Restarted for a Debt? There are various ways that you might accidentally restart the statute of limitations on a debt when you try to dispute it. For example, if you want to dispute the debt but make a payment on it – perhaps as a show of good faith to the creditor – the statute will reset back to the beginning. If you do not believe you should be paying the debt, do not make any new payments until you speak with a lawyer. Working out a payment plan, accepting a settlement, or agreeing to pay any portion of the debt might restart the statute. Again, speak to a lawyer about any debts you want to dispute before considering repayment. Even acknowledging that the debt belongs to you might be enough to reset the clock. Finally, avoid adding new charges to the debt. For example, if the debt is in relation to unpaid credit cards, do not use those cards under any circumstances until you have spoken to a lawyer. Adding new charges and increasing the balance might restart the statute of limitations. Contact Our Bankruptcy Attorneys to Talk About Your Debts and How to Handle Them If you have debts you wish to dispute, call our Delaware County bankruptcy lawyers for assistance at (215) 701-6519, and our legal team at Young, Marr, Mallis & Associates can arrange a free initial case review.

 Social Security payments could be cut over Student Loan DefaultFox Business has a story detailing how Social Security payments could be cut over student loan defaults. The story can be found at:https://www.foxbusiness.com/personal-finance/social-security-payments-garnished-student-loan-default?utm_source=pocket_mylistJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

What are the Biggest Financial Mistakes that People in Arizona Make?   Financial security is important now more than ever, which increases the pressure to always make the right financial decisions. Our bankruptcy attorneys have seen every type of case walk through the door, but some themes ring common among our clients. Financial mistakes can take just a moment but follow you for the rest of your life. Thankfully, bankruptcy exists as a form of debt relief for many people who have made financial mistakes over the years. Read on to learn more about the most common financial mistakes that residents of Arizona make. If you’d like input on your financial situation and whether bankruptcy might be an option for you, our office offers free, convenient consultations by phone. To schedule yours today, click here or call 480-448-9800. Financial Mistakes That Can Lead to Bankruptcy The number one cause of bankruptcy in the United States is medical debt. While some medical procedures are elective, we don’t consider injuring a body part or developing a medical condition a financial mistake. We want to focus on active behaviors that people can, for the most part, control. Living Outside One’s Means Arizona hasn’t been immune from the current cost-of-living crisis. The price of just about everything has increased in the past few years at rates that seem faster than in previous years. Most residential rental leases require that a tenant earn at least three times the monthly rent. Back in the olden days, it was considered acceptable to have your rent or mortgage take up half of your monthly income. But with essentials like groceries and gas costing more than ever, it’s important to take a step back and examine what one’s true priorities are when creating a monthly budget. Perhaps you really do need space which translates to spending more on living expenses, but that might mean cutting back on going out to restaurants and on vacations. Maybe you love video games or exotic animals, or have some other relatively expensive hobby but are willing to live in a smaller home. Letting Credit Card Debt Get Out of Control It can be easy to spend far more than you mean to when you use credit cards. Swiping a card simply doesn’t have the same tangible feeling as spending cash or writing a check. And while using a credit card for your purchases can come with benefits like airline miles and cashback, it is only effective when done carefully. Credit cards usually have relatively high interest rates in comparison with other lines of credit. You can avoid interest by paying off your full balance each month, but if you have an emergency or are otherwise unable to pay off the full balance, the interest could amass and create a revolving balance that you struggle to pay off. Choosing the wrong vehicle It’s undeniable that shopping for a vehicle has become more difficult in the post-pandemic world. Buying a new vehicle is notoriously expensive, but buying a used vehicle comes with the uncertainty of the vehicle’s maintenance and accident history. A car buyer’s needs may change after the purchase- for example, they could get a new job that requires travel and would benefit from a car with better gas mileage. Or, they could welcome new family members and find it would be better to have a larger, more family-friendly vehicle. Getting in a traffic collision or needing significant maintenance and repairs could also make a vehicle a huge drain on a family’s budget. Failure to make loan payments could result in a swift repossession of the vehicle. Marrying The Wrong Person While romantic decisions might not seem like financial decisions, marriage ultimately is a contract. Divorce is among the top causes of bankruptcy in the United States. It is costly for several reasons. Splitting one household into two inevitably comes with additional expenses. One spouse may be ordered to pay the other alimony and/or child support. One spouse could also be ordered to pay a greater share of community property debt in property division. Divorce lawyers aren’t known for being cheap, either. It’s understandable that a recent divorcee could end up in debt that is hard to escape without legal help. Ignoring Impending Collection Efforts by Creditors There are many things your creditors can do if you fall behind on your monthly payments. This may start with phone calls and other forms of contact that border on harassment. Your creditor can file a lawsuit against you to obtain a judgment against you. That judgment could later be used to garnish your wages or drain your bank account. If you financed your vehicle, you likely only need to miss one payment before the lender can repossess your vehicle. Foreclosing a home takes longer and has more legal requirements, but is all the more devastating. It’s best to take action to fend off creditors as soon as you know there is an issue rather than procrastinate. Picking Chapter 7 or Chapter 13 Your specific circumstances will have a great impact on which chapter of bankruptcy you should file to erase financial mistakes, or if you should file in the first place. If you have additional questions about which type of bankruptcy best suits your needs after reading the following, schedule your free consultation with our bankruptcy team by clicking here or calling 480-448-9800. Income Qualification A debtor can qualify for Chapter 7 bankruptcy, chapter 13 bankruptcy, both, or neither. Clearly, qualifying for bankruptcy will be a crucial factor in any debtor’s decision to file. Income must fall below certain limitations for a debtor to qualify for Chapter 7 bankruptcy. The limitations can be strict, especially in a household with more than one earner. If the debtor earns more than the state median income for their family size, they will need to use the means test to qualify for Chapter 7 bankruptcy. On the other hand, the debtor may wish to qualify for Chapter 13 bankruptcy, which requires the debtor to have enough income to pay off debts. The debtor’s payment plan will last 3 years if they earn less than the state median income, and 5 years if they earn more than the state median income. Secured vs. Unsecured Debts Many debtors wish to qualify for Chapter 7 bankruptcy because it clears unsecured debts in a relatively short and simple process. However, it won’t do much to address secured and priority debts. If a debtor struggles with these types of debts, chapter 13 bankruptcy might be more appropriate. Chapter 13 debtors are protected from their creditors for 3 or 5 years while they pay off debts that can’t be discharged in Chapter 7 bankruptcy. Move Forward from Financial Mistakes with Bankruptcy Financial mistakes can be hard to move past, but they are an opportunity to learn and make better choices going forward. Plus, there is only so much that can be done about rising living costs in Arizona and the rest of the country. Our experienced bankruptcy lawyers can make the process simple so you experience as little stress from your case as possible. At My AZ Lawyers, we have convenient office locations for Arizona residents and offer consultations by phone. Don’t wait until it is too late to learn about your options and take action to protect against creditors. Take the first step towards financial relief with your free phone consultation. Most of our clients qualify to file using our affordable Zero Dollars Down filing program. Contact us to schedule your free appointment with one of our experienced Arizona bankruptcy professionals or call us at 480-448-9800.   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 What are the Biggest Financial Mistakes that People in Arizona Make? appeared first on My AZ Lawyers.

Big News Network has a very helpful article on Bankruptcy, understanding the implications and process. The article can be found at  https://www.bignewsnetwork.com/news/274017564/navigating-bankruptcy-understanding-the-process-and-implicationsClients with questions about Bankruptcy should contact Jim  Shenwick, EsqJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

 The New York Post is reporting that WeWork to file for bankruptcy after once being valued at $47B: report. The story can be found at https://nypost.com/2023/10/31/business/wework-to-file-for-bankruptcy-it-was-once-valued-at-47b/?utm_source=gmail&utm_campaign=android_nypJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!