What Do the Most Recent Bankruptcy Filing Statics Mean? JD Supra has an interesting article discussing the recent upswing in bankruptcy filings and what the data means.The article can be found at  https://www.jdsupra.com/legalnews/a-look-into-2023-what-do-the-bankruptcy-4316229/Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Homeowners at risk of foreclosure or tenants behind on rent may find that a ‘cash for keys’ agreement is the most viable solution. Banks and property owners might be willing to offer compensation to occupants in return for an easy transition of the property. If you are facing a situation where you are either a homeowner whose home has been foreclosed or a tenant whose landlord is seeking new tenants, a cash for keys agreement could be the best solution for you. In order to avoid costly and time-consuming evictions, banks and landlords may offer to pay you to regain possession of their property. However, it is highly recommended that you seek legal advice before entering into any agreements with the bank to ensure that your rights are protected. Our Pennsylvania cash for keys attorneys at Young, Marr, Mallis & Deane are here to provide you with a free review of your case by calling us today at (215) 701-6519. Can a Bank Offer “Cash for Keys” During Foreclosure Proceedings in Pennsylvania? Facing mortgage foreclosure or tenants behind in rent, homeowners or renters may find themselves in a difficult situation. However, there is an alternative option that could be beneficial for both parties involved: a “cash for keys” agreement. In these agreements, mortgage lenders and rental property owners offer to pay owners or tenants to ensure a smooth transition and timely move-out. These agreements are often a cheaper and quicker option than a costly eviction proceeding. A cash for keys agreement is essentially a buyout. After a bank has foreclosed on a property and wants the residents gone, they might offer to buy them out. Landlords can use the same type of agreement to entice bad tenants to move. In both cases, the owner is essentially paying a sum of money for them to leave. Depending on the circumstances, it may be significantly more efficient than pursuing time-consuming and expensive legal proceedings to evict the person from the home. Fortunately, these agreements are legal in Pennsylvania. However, it is best to speak with our experienced Pennsylvania cash for keys attorneys before dealing with the bank. Your agreement should be made in writing, with clear terms, and signed by both parties. Any agreement should definitively state the payment amount and the date the resident needs to move out. The agreement might include other terms, such as requiring the property to be kept in good condition. A former homeowner or tenant can then rely on the written agreement to provide clarity and some financial assistance. What is the Process for a “Cash for Keys” Agreement in Pennsylvania? When a property owner is facing foreclosure, they might consider a cash for keys agreement. This agreement sets out the terms for vacating the property in exchange for a negotiated payment. The agreement will specify a date for transferring possession and require the resident to leave the property in broom-clean condition, with all possessions and trash removed. The owner will also need to waive any claim they might have on the property or any right of redemption at the end of foreclosure. If a homeowner has lost their property through foreclosure, they may still have a right to redeem the property by paying the delinquent amount and retaking ownership. Depending on state and local eviction laws, they may also be able to remain in the property for up to six months. However, a cash for keys agreement is a viable option for those who choose to walk away from the property, without hurting their credit, unlike an eviction. Cash for keys agreements may be either negotiated or offered as standard terms by institutional lenders. The details and availability of such agreements may vary. Therefore, it is always best to contact your lender to discuss your situation and explore all available options. However, it is important to remember that both tenants and homeowners have rights and protections and should fully consider their situation before signing any agreement that involves walking away from their home. When to Consider a “Cash for Keys” Agreement in Pennsylvania If you are currently in the process of foreclosure or facing eviction, chances are you might have already received a notice for the same. However, this can be a good opportunity for you to take advantage of a cash for keys agreement. While some mortgage lenders or banks may offer this program by default, it is important to note that the terms and availability may vary. Even if your lender or landlord has not yet introduced such a program, you can initiate a discussion and negotiate the terms of a cash for keys agreement. When discussing a cash for keys program, it is crucial to be clear about the benefits and details of the agreement. Showing your willingness to cooperate can be helpful during negotiation. It is important to understand that the lender or owner is primarily concerned with the long-term value of their property. Therefore, assuring them that the property will be kept in good, clean condition can help solidify the deal and increase your chances of receiving a favorable agreement. How Can a “Cash for Keys” Agreement in Pennsylvania Be Beneficial? In some situations, a homeowner who is in the process of foreclosure or eviction may find a cash for keys agreement to be advantageous. Each party involved in the agreement could potentially benefit from it in various ways. Homeowners in Foreclosure If someone is facing a difficult situation where they need to relocate, they may consider exchanging their keys for a cash incentive. This could provide them with the necessary funds to cover the expenses associated with moving, such as transportation, storage, and other relocation costs. Renters If a renter finds themselves struggling to pay their rent and facing a possible eviction, they may be able to negotiate a cash for keys agreement with their landlord. This would involve the landlord providing the tenant with a sum of money in exchange for the tenant voluntarily vacating the property. Such an agreement can help the tenant avoid being evicted, as well as assist with the costs associated with relocating to a more suitable living situation. However, before agreeing to such an arrangement, the tenant should make sure to explore all other options available to them under their lease. Lenders This process involves paying the homeowner who has fallen behind on mortgage payments to leave the property and give up possession of the property after a foreclosure. This helps to avoid lengthy and expensive eviction proceedings after the foreclosure has already been completed. Additionally, it ensures that the property will be properly cared for during the interim period. Landlords Agreeing to a cash for keys deal can help landlords avoid the time-consuming and expensive eviction process. Instead of going through the hassle of evicting a tenant, which could take a long time and cost the landlord thousands of dollars in attorney fees, a cash for keys agreement offers a quick solution for replacing delinquent tenants. Our Pennsylvania “Cash for Keys” Attorneys Can Help For a free case evaluation with our Pennsylvania cash for keys lawyers, contact Young, Marr, Mallis & Deane today at (215) 701-6519.

Chicago Booth Review has an article on Why Small Businesses Are More Reluctant to File for Chapter 11?The article can be found at https://www.chicagobooth.edu/review/why-small-businesses-are-more-reluctant-file-chapter-11Jim 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!

 I Stopped Paying My Private Student Loans, and Somehow Got Luckyhttps://www.nytimes.com/2023/09/09/business/private-student-loans-debt-collection.html?smid=nytcore-android-shareJim 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!

Foreclosure is not something any homeowner wants to go through, but it might be unavoidable. Many people find moving on from the foreclosure process difficult if they are hit with a deficiency judgment. A deficiency judgment is a court ruling holding someone liable for debts owed to a lender after that lender forecloses on that person’s property. The deficiency is whatever might be left of the initial loan that has not been paid back to the lender. Lenders have a limited time to pursue such a judgment and must do so through the courts. The value of the judgment may be based on multiple factors, including the property’s fair market value, which might not be set in stone. Deficiency judgments may be limited in certain ways. They are typically unsecured debts that can only be obtained with a court ruling, and the lender must convince a judge of the deficiency. An attorney can help you avoid or possibly reduce a deficiency judgment. For help before, during, and after foreclosure proceedings, contact our Pennsylvania bankruptcy attorneys at Young, Marr, Mallis & Associates to schedule a free case review by calling (215) 701-6519. What is a Deficiency Judgment in Pennsylvania? When a home or other real property is foreclosed upon, the creditor or lender, usually a bank, sells the property to recoup their losses. It is very common for lenders to sell the houses for less than what the initial loan was worth, leaving an unpaid balance. This unpaid balance is known as a deficiency balance. For example, suppose you took out a loan to buy a home for $300,000. Next, suppose the home went into foreclosure after you missed too many mortgage payments. Now, suppose you paid back the bank $75,000, and the bank sold the home for $200,000. This means only $275,000 of the loan has been repaid. There would be a deficiency balance of $25,000. In Pennsylvania, a deficiency balance may pose a problem. Lenders or creditors can take the case to court and get a deficiency judgment against you, making you liable to repay the balance. Unfortunately, most people who owe deficiency judgments are not in a financial position to repay the balance. Speak to an attorney about your case. There might be a way to avoid liability for the deficiency judgment or reduce it to something more manageable. In some cases, our Philadelphia bankruptcy attorneys might be able to convince the lender to waive the deficiency. When Pennsylvania Courts Can Issue a Deficiency Judgment Against You While a deficiency judgment may be a significant hurdle to overcome, lenders and creditors have a limited time to seek a deficiency judgment. According to 42 Pa.C.S. § 5522(b), a lender has only 6 months from the date the sheriff’s deed for the foreclosed property is executed to file a petition for a deficiency judgment. Put another way, once a property is sold at auction, otherwise known as a sheriff’s sale, the lender who foreclosed on the property in the first place must submit a petition to the courts seeking a deficiency judgment no more than 6 months later. While 6 months might sound like more than enough time for a lender to file a petition, it is a tighter turnaround than you might think. Pennsylvania is a judicial foreclosure state. All foreclosure proceedings, including deficiency judgments, must go through the courts. A lender cannot obtain a deficiency judgment if they do not sue you for one, and they only have 6 months to file the case. Some lenders choose not to pursue the judgment if the deficiency is small. In other cases, lenders might lose track of time and forget to file the claim. If you believe the lender might come after you in court for a deficiency judgment, contact an attorney immediately, even if no petitions have been filed yet. Limitations on Deficiency Judgments in Pennsylvania As mentioned, since Pennsylvania is a judicial foreclosure state, the lender or creditor must take formal legal action against you to get a deficiency judgment. This often means filing a lawsuit, taking the case before a judge, and getting the judge to issue the judgment. This can be time-consuming and might allow you time to speak to an attorney about what to do. Deficiency judgments are typically unsecured debts. This means the debt is not attached to some sort of security or collateral. If it were, it would be considered a secured debt, and you could lose the collateral. If your deficiency judgment is unsecured, you might not risk losing much. Pennsylvania does not allow lenders or creditors to garnish wages for unsecured debts. However, if you own other properties, the lender or creditor may put a lien on those properties. There are limitations on how deficiency judgments are calculated. Generally, deficiency judgments are heavily influenced by the house’s fair market value. Unfortunately, what is considered fair market value can be hard to pin down and may depend on various economic factors. As such, determining fair market value can be objective in some ways but subjective in others. The lender may try to claim the fair market value is very low, thus increasing the deficiency judgment. Our job, if necessary, is to convince the court that the property is worth more than the lender claims, thus hopefully reducing the deficiency judgment. How to Avoid a Deficiency Judgment in Pennsylvania There might be numerous ways in which to avoid a deficiency judgment. It would be best to talk to a lawyer about your situation immediately, as lenders or creditors might be planning to file a petition for a deficiency judgment as we speak. One method is to file for bankruptcy. The point of bankruptcy is to repay whatever debts you can and have certain remaining debts discharged. Multiple bankruptcy chapters might be helpful to your situation. Chapter 7 is a popular choice and helps people liquidate assets, repay debts, and discharge debt. If you have assets you are okay with liquidating, or perhaps you have few assets at all, this might be a good option. Since a deficiency judgment is an unsecured debt, it can be discharged by the court in a bankruptcy hearing. Speak to Our Pennsylvania Bankruptcy Lawyers if You Were Served with Deficiency Judgment Papers Get in touch with our Quakertown, PA bankruptcy lawyers at Young, Marr, Mallis & Associates to set up a free case assessment by calling (215) 701-6519.

The bankruptcy means test, designed to keep people out of bankruptcy, has a fatal weakness.  Like so much recently, it’s health care. Health care, in the future, to be paid before creditors get any money. It works because, in a logic that only Congress could employ, the means test deducts future expenses from past income. And, since […] The post The Weak Link In The Means Test appeared first on Bankruptcy Mastery.

 Bloomberg is reporting that Business Bankruptcies Soar in August as Rising Interest Rates Bite.The article can be found at https://www.bloomberg.com/news/articles/2023-09-05/businesses-bankruptcies-soar-in-august-as-interest-rates-bite?embedded-checkout=trueJim 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 consequences of a secured lender’s failure to comply with R. 3002.1 in a prior case when the debtor files again? Significant, it seems. The issue came before the SD Texas bankruptcy court in Alvarez, No. 22-33889 (Bankr. S.D. Tex. Aug. 9, 2023) when the debtor objected to the mortgage claim of the […] The post The Long Reach of R. 3002.1 appeared first on Bankruptcy Mastery.

Do You Need to Finance a Car in Chapter 13? The last thing you want to do is get further into debt while you are in Chapter 13.  (The goal of Chapter 13 is to get out of debt.)  But sometimes you need to replace a broken down junker. So, you need financing for a […] The post Rats! I need a new car and I’m stuck in Chapter 13 by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

Do You Need to Finance a Car in Chapter 13? The last thing you want to do is get further into debt while you are in Chapter 13.  (The goal of Chapter 13 is to get out of debt.)  But sometimes you need to–most often if you need to replace a junker car. There are […] The post Rats! I need a new car and I’m stuck in Chapter 13 by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.