My Customer Filed Chapter 11 – Do I Failure to file a proof of claim can limit or eliminate your participation and recovery

   In the first court of appeals ruling on the issue, the 10th Circuit Court of Appeals ruled that chapter 13 trustees were not entitled to retain trustee fees in cases that were not confirmed.   Goodman v. Doll (In re Doll), 2023 U.S. App. LEXIS 1073 (10th Cir., 18 January 2023).   The case involved the usual situation of a debtor paying in fees before confirmation, but ultimately not getting the case confirmed.  The court interpreted a number of statutes in making such determination.        28 U.S.C. 586(e)(2) provides that the standing trustee shall collect' his fee from all payments received under chapter 13 reorganization plans  for which he serves as trustee.  11 U.S.C. 1362(a)(1) provides that a chapter 13 debtor shall commence payments within 30 days of filing a chapter 13 plan.  Given that such payments usually commence prior to confirmation, 11 US.C. 1362(a)(2) directs the trustee to retain these payments until the confirmation hearing.  However, §1362(a)(2) also provides that if the plan is not confirmed, the trustee shall return any such preconfirmation payments to the debtor.[a] payment made under paragraph (1)(A) shall be retained by the trustee until confirmation or denial of confirmation. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as is practicable. If a plan is not confirmed, the trustee shall return any such payments not previously paid and not yet due and owing to creditors pursuant to paragraph (3) to the debtor, after deducting any unpaid claim allowed under section 503(b)11 U.S.C. 1326(a)(2).   In the bankruptcy case debtor had made preconfirmation payments of $29,900, or which $19,800 was paid to debtor's counsel for fees, and $7,500 to the Colorado Dept. of Revenue (with consent of the debtor), and retained $2,596.70 as the trustee's fee.  Debtor filed a motion to disgorge, which the bankruptcy court denied.  The district court reversed, and the trustee appealed.  The court compared requirements in chapter 11 SubV and chapter 12, which statute specifically directs such trustees to collect their fee from all payments received by the trustee under such plans, but which also has provisions (11 U.S.C. §1194(a) and 11 U.S.C. §1126(a)) specifially provided for deduction of the trustee fees prior to any refund to the debtor.  The court noted the requirement to enforce the plain meaning of the statute, and found that 28 U.S.C. §586(e)(2) when ready together with 11 U.S.C. §1326(a) unambiguously require the standing chapter 13 trustee to return preconfirmation payments to the debtor without deduction for the trustee's fee when no plan is confirmed.  The trustee refereed to the chapter 13 trustee's handbook for interpretation of the statute, which is prepared by the Executive Office of the US Trustee.  This handbook indicates that the trustee may keep the fee even when a plan is not confirmed.    However such handbook cannot be relied on to contradict the plain language of the statute.  Further the handbook notes the possibility of controlling law in the district that would preclude collection of the fee.  The trustee also cited a chapter 12 case, In re BDT Farms, 21 F.3d 1019 (10th Cir. 1994) finding 28 U.S.C. §586(e)(2) to be ambiguous as to how to compute the trustee's fee, but the court concluded that is a separate issue from allowance of fees. The Court affirmed the district court decision not allowing the chapter 13 trustee to retain the fee.Michael BarnettMichael Barnett, PA506 N. Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com  

 Genesis, a Crypto Lending Firm, Files for Bankruptcy according to the New York Times. The article can be found at   https://www.nytimes.com/2023/01/20/technology/genesis-bankruptcy-crypto.htmlJim Shenwick, Esq.  212 541 6224   jshenwick@gmail.com

Suppose you recently got a notice of overpayment for Social Security Disability Insurance (SSDI) benefits in Pennsylvania. If you think the notice is incorrect, our experienced lawyers can help you fight it. When fighting an SSDI overpayment in Pennsylvania, there are several routes you can take, depending on your circumstances. Recipients can file a Request for Reconsideration, a Request for Waiver of Overpayment Recovery, or a Request for Change of Recovery Rate. Acting quickly and calling our lawyers right away is important, as the SSA imposes a strict deadline on appeals for overpayments of benefits. If you were not overpaid yet received a notice of overpayment, reach out to our attorneys. You should fight a notice of overpayment if the SSA made a mistake. Our lawyers are here to help SSDI recipients in Pennsylvania understand the disability benefits available to them. For a free and confidential case evaluation with the Pennsylvania disability attorneys at Young, Marr, Mallis & Associates, call today at (215) 515-2954. How to Fight an SSDI Overpayment in Pennsylvania? Receiving a notice of overpayment from the Social Security Administration regarding a recent SSDI benefit check might be confusing for some recipients in Pennsylvania. Were you really overpaid? Do you have to pay back the SSA? What if you can’t afford to do so? Our Philadelphia disability attorneys can help you determine whether or not you were recently overpaid and how to fight the SSA if it is wrong. Request for Reconsideration Suppose you recently received a notice of overpayment of SSDI benefits from the SSA. In that case, you should reach out to our attorneys. Our lawyers can review past benefit checks from the SSA to determine if there’s been a recent increase. If the SSA got it wrong and you weren’t actually overpaid for a recent month, our attorneys can help you file Form SSA-561, Request for Reconsideration. Filing an appeal regarding an overpayment of SSDI benefits can be complicated. Our West Chester disability attorneys can help you compile the necessary information regarding your medical condition, work history, and previous payments so that you can file a successful appeal. Request for Waiver of Overpayment Recovery If, after receiving a notice of overpayment of SSDI benefits, you realize you have actually been overpaid for a recent month, what can you do? Suppose you did not cause the overpayment by providing incorrect information to the SSA. In that case, if you think that the amount cited by the SSA in a notice of overpayment is wrong or you cannot repay the amount requested by the SSA, our lawyers can help. In this case, our attorneys can help you file Form SSA-632, Request for Waiver of Overpayment Recovery. By filling out this form, you may be able to avoid repaying the SSA for a portion of an overpayment amount or the entire amount, depending on the circumstances. Request for Change of Overpayment Recovery Rate When the SSA realizes it has overpaid your SSDI benefits for a recent month, it will likely send you a notice of overpayment letter. In this letter, the SSA will suggest a rate of recovery. Generally, the SSA will propose to take a percentage of future SSDI payments to compensate for an overpayment. If you cannot afford to pay back the SSA at its proposed rate, our Leigh County disability attorneys can help you file Form SSA-634, Request for Change in Overpayment Recovery Rate. By submitting this form, you may be able to reduce the recovery rate and spread out your repayment over several months. Social Security Disability Insurance benefit recipients who rely solely on their monthly benefits to support themselves and their families may choose to take this route after receiving a notice of overpayment from the SSA. How Long Do You Have to Fight an SSDI Overpayment in Pennsylvania? If you recently received a notice of overpayment of SSDI benefits from the SSA, reach out to our lawyers immediately. Recipients only have a certain period to respond to the SSA regarding a possible overpayment, after which consequences might apply. Typically, SSDI recipients in Pennsylvania have 30 days after receiving a notice of overpayment to repay the SSA. However, if you file an appeal, you will have 60 days to do so. Acting quickly, in this case, is important, as your access to future benefits might be in jeopardy if you fail to appeal a notice of overpayment for SSDI benefits in time. Our lawyers can help you determine the accuracy of a notice of overpayment from the SSA so that you can meet the necessary deadlines for repayment or filing an appeal in Pennsylvania. Should You Fight an SSDI Overpayment in Pennsylvania? After receiving a notice of overpayment of SSDI benefits from the SSA, recipients might want to resolve the matter quickly to avoid any issues. While that’s understandable, paying back the SSA immediately without consulting our attorneys may not be wise. If the SSA made a mistake, you might not have to pay back any money at all. Before responding to a notice of overpayment of SSDI benefits from the SSA, call our attorneys. While you might not think that an agency like the SSA could not make a mistake, that’s not necessarily true. Clerical issues might result in a notice of overpayment. Other problems, like perceived changes in your disability, address, or income, might also result in a notice of overpayment. It’s important to make sure you have, in fact, been overpaid in a recent month before you pay the SSA anything. Our attorneys can review your previous benefit amounts to determine if you have been overpaid for a recent month. If you haven’t, consulting our lawyers can help you avoid paying back funds that are rightfully yours. So, if you receive an incorrect notice of overpayment of SSDI benefits from the SSA, you should fight it with help from our Pennsylvania disability attorneys. Ask Our Pennsylvania Lawyers About Fighting an SSDI Overpayment If you wrongly received a notice of overpayment from the SSA, our lawyers can help you fight it. For a free and confidential case evaluation with the Bucks County disability attorneys at Young, Marr, Mallis & Associates, call today at (215) 515-2954.

Many individuals are not aware that Social Security benefits can be used to pay student loans that are in default. The Social Security Administration (SSA) can take up to 15% of a persons benefits to pay off defaulted student loans; however, it cannot take more than $750 a month or $9,000 a year to pay for defaulted student loans.For further details see the Fox Business article at https://www.foxbusiness.com/personal-finance/student-loans-default-diminish-social-security-benefitsRegrettably these defaults often impact retired parents who have taken out student loans for their children or Parent Plus Loans.Jim Shenwick Esq.   212 541 6224   jshenwick@gmail.com 

The Toledo Blade is reporting that millions of businesses need to start paying back coronavirus loans. The article states that nearly 3.8 million small business owners took out Economic Injury Disaster Loans (known as EIDL loans) from the federal government, averaging roughly $100,000 per loan, according to the Small Business Administration. These 30-year loans carry an interest rate of 3.75 percent for businesses and require repayment.The first EIDL loan monthly payments will commence in January 2023 and the article reports that 2.6 million businesses across the country will owe money by that date.The article can be found at https://www.toledoblade.com/business/development/2023/01/14/businesses-pandemic-paying-back-coronavirus-loans/stories/20230114082Jim Shenwick, Esq.   jshenwick@gmail.com   212 541 6224

 Office Lease Closing, Termination, or Surrender in New York City As many readers of our emails and blog are aware, at Shenwick & Associates we are helping many small businesses close, terminate or surrender their office leases in New York. As a result of the cooling labor market, many industry experts predicted employers would have more leverage to force their employees back to work. However, with the recession and troubled economy in New York City, we are seeing more and more small businesses close their offices and surrender, abandon or terminate their leases to cut costs. A recent study by a Columbia business professor stated that to provide a seat for an employee in Manhattan costs the employer  $16,000 per year. It is important to note that the Columbia business professor referred to a "seat" rather than an "office". Providing an office for every employee would cost substantially more than $16,000 per year. We were recently retained by a small garment center company that was struggling and wanted to move to a remote work structure to save business and money. The facts of the case are interesting and illustrative: the company owed $65,000 in rent and additional rent to its landlord. For them to be released from the guaranty, they needed to give the landlord three months notice and be current on their rent (total amount owed to landlord over $100,000). Jim Shenwick, Esq. was retained by the company and we reviewed the commercial lease, the guaranty, the financials' for the company and the guarantor. We formulated a strategy and negotiated a very favorable deal for our client. As part of the agreement, the tenant vacated the space quickly, abandoned its buildout to the landlord, forfeited its security deposit, and paid the landlord $25,000. The landlord agreed to release the company and the guarantor.The result  was a "win/win" for all parties,  the landlord obtained possession of its space quickly without incurring legal fees and court costs, the company saved approximately $75,000 in rent payments and the guarantor was not sued and did not have to file for bankruptcy. Jim Shenwick, Esq has experience in commercial leasing, workouts and bankruptcy and clients can contact him at 212 541 6224 or jshenwick@gmail.com   Excerpts from the Elon Musk story are below.Elon Musk, who was a skeptic of the benefits of remote work, recently announced that he was closing the Twitter offices in Seattle.  The Seattle Times had a fascinating article about musk's move, the article can be found at https://www.seattletimes.com/opinion/musks-about-face-on-remote-work-shows-its-value-in-recession/ The article stated in part that "As part of ongoing cost-cutting measures under new owner and CEO Elon Musk, Twitter is shutting down its Seattle offices and instructing employees to work remotely. That’s despite Musk earlier claiming that remote workers are only “pretending to work” and banning remote work at Twitter upon taking it over in early November.So what explains his change of heart? Apparently, it’s the costs associated with the company’s Seattle office: rent and services such as cleaning and security.The fact that Musk — an extreme skeptic of remote work — acknowledged its cost-cutting benefits illustrates the future of remote work for the U.S. economy. It highlights the misleading nature of many headlines about how an impending recession would lead to the end of remote work. They claim that a cooling labor market will give executives more control to require employees to return to the office. That’s because many employees prefer to work remotely and most executives want their employees in the office.However, the reality is much more complex. Of course it’s true that during a recession, employers have more leverage. At the same time, executives need to focus on maximizing the return on investment from their employees.In times of economic growth, executives have more freedom to make decisions based on their personal preferences and intuitions. But during a recession, they may need to hunker down, be more disciplined, and rely on data to make decisions that make the most financial sense for the company — like Musk choosing to have Twitter staff work remotely for the sake of cutting costs. This focus on profitability over personal preferences benefits remote work."Jim Shenwick, Esq jshenwick@gmail.com 212541 6224

 The New York Times has an article about "What to Know About Biden’s Income-Driven Repayment Proposal". The story can be found at https://www.nytimes.com/2023/01/10/your-money/student-loans-income-driven-repayment.html.The Income-Driven Repayment Proposal would tie a  borrowers’ monthly payments for their student loan debt to their income and family size, and after a set number of years, any remaining debt is forgiven.  Jim Shenwick, Esq.  212 541 6224  jshenwick@gmail.com

The Cheapest Eggs At The Grocery Store Right Now Are Seven Dollars   And Other Reasons You Shouldn’t Feel Bad About Filing Bankruptcy Even if you don’t like to eat eggs on their own, there are probably eggs in several of the foods you consume on a regular basis. That’s me- I’ll only eat them scrambled, begrudgingly, with hot sauce and hopefully some cheese and diced onions. But the other day I saw some chai tea mix in my cabinet and thought that could be a good addition to chocolate chip cookies with butterscotch. So, I made my merry way over to Safeway to buy eggs and chocolate chips and I was aghast. Seven dollars for the cheapest eggs? I remember a not-so-distant time in the past when eggs cost $2 or less. First of all, $7 for eggs is highway robbery. Second, while some cities have their own minimum wages set higher than the state, Arizona’s minimum wage is $13.85 per hour. If you take out income taxes and add sales tax on the eggs, someone working for minimum wage can barely buy a carton of eggs with an hour’s labor. That’s not including gas to get to the store, hot sauce- and you might as well forget about cheese and diced onions. In the past, our bankruptcy clients seemed to be plagued by poor decisions or just plain bad luck. Now, it’s easy to imagine how someone could fall into unmanageable debt to maintain a decent standard of living. If you’re struggling with debt and would like to learn more about bankruptcy, call our firm for your free consultation at 480-448-9800. Buying A Home? Doubtful If you own your own home, that’s great for you. I’m so happy for you. You probably bought it a few years ago before the market went out of control. But every time I think I’m getting somewhere with my savings, I check Zillow and cry because I can’t even afford a dumpy one-bedroom condo. Big businesses, including foreign corporations, are buying up our homes and holding them at ransom. They are tearing down businesses on any lot large enough to hold an apartment building, charging just enough that their tenants will never be able to save up for a down payment on a house. The median income in Arizona for 2021 was $69,056– the data for 2022 won’t be available until September 2023. For November 2022, the average home price in Arizona was $410,000. The mortgage on a $410,000 house will be about $1,400, which is affordable for someone who makes the median income- but only if they put 20% down on the house. How would this hypothetical person who makes the median income save up $82,000? The average rent for a one-bedroom in most Arizona cities has soared past $1,500. That only leaves this person about $28,000 per year to save and for ALL of their other expenses (including $7 eggs). Additionally, home prices keep rising, so by the time that person saves up $82,000, they will probably need more than $82,000 for a down payment. It’s hard to see a path to homeownership for the middle class right now without inheritance or help from family members. How Do People Afford Kids? Kids are expensive and always have been, but what I’m worried about is the privatization of our school system. In my hometown, it was extremely inconvenient to go to any school besides the local high school, so the rich kids and the poor kids got the same access to education. Many people dream of being teachers and impacting their students’ lives. I know a few of them, but they have either quit already to work something that can actually pay their bills or are worried they won’t even be able to make it through this semester*. Instead of raising our teachers’ salaries to a living wage, Arizona began offering a tax credit for families to send their children to private schools. This gives the rich a bonus for doing what they were already doing and doesn’t make it affordable for the vast majority of families to send their kids to private schools. Part of the American dream is that if you study/work hard enough, you can be anything you want to be. If the school system shifts so that a student needs to go to a private school to get a decent education, the American dream dies. * Because the parents are entitled and raising entitled children. Don’t be part of the problem, be part of the solution. Big Companies Want You To Feel Bad About Bankruptcy & Lawsuits As long as there have been big companies, big companies have been trying to influence the public’s psyche for profit. One innovator in this field was Edward Bernays. Bernays was the nephew of Sigmund Freud and detailed how he helped companies use marketing to change public opinion in his book, Propaganda. One of his most “successful” works was changing how the United States viewed women who smoke cigarettes. Smoking cigarettes in public was considered taboo for women in the 1920s until Bernays marketed a campaign branding cigarettes as “freedom torches” that women could smoke in public with pride. It essentially made smoking a cigarette a feminist act for a woman, with Big Tobacco raking in the cash. As modern times evolved, big companies needed to change public opinion, not just about products but attitudes about the public’s obligations to corporations. Personal injury suits became more and more common, and they were (and still are) costing big companies millions of dollars. One of the most famous personal injury suits in the United States was the McDonald’s hot coffee case. Only someone who is greedy and litigious would sue a company for serving the coffee she ordered hot, right? That’s just what McDonald’s wants you to believe. In 1994, Stella Liebeck ordered a hot coffee at the McDonald’s drive-through. The 79-year-old suffered third-degree burns when she spilled the coffee in her lap. She eventually sued and won a hefty injury award, including a punitive damages award of nearly $3 million. The case made headlines, with Liebeck being viewed as a scam artist and opportunist, and spreading an attitude of litigiousness as a negative thing. McDonald’s legal and media team was sure to get this message across- people who sue McDonald’s are scumbags. However, the jury didn’t award $2.7 million in punitive damages, or two days of McDonald’s coffee revenue, for no reason. Liebeck’s third-degree burns covered 6% of her body (her crotch) and there were lesser burns on 16% of her body. She lost 20 pounds, or 20% of her body weight, while in recovery from the incident. She suffered permanent disfigurement and temporary disability, and her daughter had to care for her for a few weeks. She requested McDonald’s reimburse her $20,000, with her medical bills being $10,500 and the rest to cover future medical expenses and her daughter’s loss of income. McDonald’s countered with $800. While Liebeck’s injuries were gruesome, it may seem reasonable for McDonald’s to offer only a percentage of her damages- after all, shouldn’t she be responsible for spilling her own coffee? However, Liebeck’s lawyers tested coffees all around the city, and McDonald’s coffee was held at temperatures about 20 degrees Fahrenheit hotter than any other establishment. McDonald’s coffee could cause third-degree burns in 3 seconds, while other coffees in the city would take 20 seconds to cause third-degree burns. The jury also heard evidence about the melting point of McDonald’s Styrofoam coffee cups, as well as more than 700 reports of McDonald’s coffee burns and settlements in excess of $500,000. McDonald’s knew their coffee was being served too hot and burning people, but they just didn’t care. The jury found that Liebeck was 20% at fault for her injuries, and McDonald’s was 80% at fault. They awarded Liebeck $200,000 in compensatory damages, such as medical bills, future medical expenses, and pain and suffering. However, because of McDonald’s bad faith (they also refused $90,000, $225,000, and $300,0000 settlement offers), the jury awarded $2.7 million in punitive damages. Punitive damages are meant to punish the defendant, and they need to be substantial for a company as big as McDonald’s to notice. While McDonald’s lost Liebeck vs. McDonald’s, they used it as an opportunity to change public opinion and wage war against “frivolous” lawsuits. This may seem like it doesn’t have much to do with bankruptcy- but in the end, you should always be aware that big companies want you to treat them with the dignity and respect that you would treat another human being, but they will never offer you the same in return. If you are struggling with debt, American Express and Capital One will be fine if you file bankruptcy and erase your credit card debts to them. You are not bad, litigious, opportunistic, or frivolous for wanting to make a better life for yourself and your family. Bankruptcy Might Help You With Your Financial Goals Depending on your financial situation, bankruptcy could be a powerful tool to get you back on your feet and headed in the right direction. In this financial climate, no one should be embarrassed or guilty to at least research the protections that bankruptcy offers. Discharging medical bills, old taxes, credit cards, and other debts could allow you to live a more comfortable lifestyle. You deserve the cheese and diced onions. Get in touch with My AZ Lawyers by calling us at 480-448-9800 to schedule your free consultation 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 The Cheapest Eggs At The Grocery Store Right Now Are Seven Dollars appeared first on My AZ Lawyers.

 US Bankruptcy Court Rules Celsius Deposits Belong to the Firm. This story can be found at  the bitcoin website at https://news.bitcoin.com/us-bankruptcy-court-rules-celsius-deposits-belong-to-the-firm/There ruling is bad news for people or companies who had deposits at Celsius, but may be good news for Celsius' unsecured creditors. At Shenwick & Associates, we are helping creditors file Proof of Claim in the Celsius and FTX cases.  Jim Shenwick, Esq   212 541 6224  jshenwick@gmail.com