People who file bankruptcy sleep better. Ninety four percent of people surveyed said they slept better after filing bankruptcy. That’s the result of a 2019-2020 study taken through SurveyMonkey.com of former clients who filed bankruptcy with us three or four years before.  One hundred four people participated in the survey.      Getting good sleep […] The post File Bankruptcy and Sleep Better by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

A Mortgage Forbearance Might Not Get You a Mortgage Deferment A mortgage forbearance under the CARES Act is NOT the same as a deferment. At the end of a mortgage forbearance, you are behind by the exact number of payments they allowed you to skip.  A deferment means you are not behind. Mortgage companies are […] The post Forbearance Might Not Mean Deferment by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

The tax season is upon us, and the tax deadline is coming up on April 15th, 2021. Many of us are looking forward to receiving a nice-sized income tax refund check. But, for people thinking about bankruptcy, there are many questions to consider.  What happens to your tax refund check if you plan to file for bankruptcy?Can you lose your tax refund?Should you wait to file your taxes?  In this article, Wynn at Law, LLC’s bankruptcy attorney Shannon Wynn explains how you can file for bankruptcy and keep your income tax refund. Should I wait to file my income taxes if I am considering bankruptcy? Are you contemplating filing for Chapter 7 or Chapter 13 bankruptcy this year? If so, you may be wondering about the best timing for your bankruptcy. One common consideration is if it is better to file bankruptcy before or after filing your income taxes. Each individual’s situation is unique. A bankruptcy attorney can help you decide when is the best time for you to file. Generally, Wynn at Law, LLC’s bankruptcy attorney, Shannon Wynn, recommends filing your bankruptcy petition after filing your income taxes. In most cases, this is the best scenario. If you file for bankruptcy before filing your 2020 income taxes, the bankruptcy trustee may request you file your 2020 taxes quickly after your bankruptcy filing. Filing your taxes prior to filing bankruptcy, will also help your bankruptcy attorney give you the best advice on any refunds you are entitled to receive from the state or federal government.  Your income tax refund and the bankruptcy estate Your bankruptcy estate consists of all the assets you own when you file your Wisconsin bankruptcy case. Your income tax refund amount is included in your bankruptcy estate. That means the bankruptcy trustee may be able to use the refund to pay your creditors, whether you have already received the check or if you are still expecting the refund check.  It is possible to protect your income tax refund check from the trustee, but that will depend on the allowable amount you can exempt by law and is influenced by the other assets you need to exempt. It is essential to consult with a bankruptcy attorney to pre-plan your bankruptcy estate and exemptions.  Ways to keep Your income tax refund check when filing for bankruptcy You can spend your tax refund prior to filing bankruptcy without getting into trouble with the bankruptcy trustee if you spend it the right way. This list includes living necessities, such as mortgage payments or rent, food, car repairs, and a few others. Ask a bankruptcy attorney what expenses qualify.  It is important to remember that some expenses and utilities can be paid, such as medical bills, but may not be a good idea to pay prior to filing bankruptcy. Once you file your bankruptcy, you may not be responsible for repaying those creditors. You must choose the best way to spend your tax refund, and it is wise to do so under the advice of a bankruptcy attorney. A bankruptcy attorney can help protect your tax refund The absolute best way to avoid losing your income tax refund is to talk to a bankruptcy attorney. It may be worthwhile to use your income tax refund to pay your bankruptcy attorney fees if you plan to file for bankruptcy. If you are hiring an attorney to help with your bankruptcy case, which you should, you need to pay your bankruptcy attorney before filing your bankruptcy case. With your tax refund, you can pay your bankruptcy attorney upfront in one lump sum and start your case faster. This is especially beneficial if you are having a hard time raising the money for the cost of filing bankruptcy. Things to avoid doing with your tax refund when filing for bankruptcy You must not spend the income tax refund money frivolously. Never purchase luxury items or spend the money on loan repayments to your family and friends. Doing so can cause the trustee to require the repayment of the money.  People can often spend their tax refund money before filing for bankruptcy. File your taxes, receive your check, spend the money, and then file your bankruptcy. However, it is vital to keep a record of exactly how the money was spent. The bankruptcy trustee has the right to ask you. Can bankruptcy eliminate income tax debt? It is possible to discharge some Federal and Wisconsin income tax debt by filing for bankruptcy. However, the debt must meet specific qualifications: Federal or state income taxes only.Tax returns must be filed on time – despite not paying the balance due. The tax debt must be at least three years old. (If you are expecting to owe money for your 2020 income taxes, it will not be dischargeable because the debt is less than three years old.) The IRS’s income tax debt must be assessed at least 240 days before you file or must not have been assessed at all (240- Day Rule). Once your qualifying tax debt has been discharged through bankruptcy, you are no longer responsible for paying back the taxes and any penalties assessed on your tax debt.  Do I need to file my income taxes? Yes. The bankruptcy trustee will require you to provide copies of (at least) the last 2 years of income taxes.  Contact Wynn at Law, LLC’s bankruptcy law office If you are considering bankruptcy this year and have questions, please contact our bankruptcy attorney, Shannon Wynn. Wynn at Law, LLC offers free, in-depth bankruptcy consultations. Our bankruptcy attorney is here to listen, advise, and help during your financial difficulties. You can reach our bankruptcy attorney by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has bankruptcy law offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin. The post Learn How You Can File Bankruptcy and Keep Your Tax Refund appeared first on Wynn at Law, LLC.

Chapter 7 Trustee Donald F King Donald F King is one of the four Chapter 7 trustees in the Alexandria Virginia Bankruptcy court. When you file a bankruptcy case in Alexandria, the computer assigns you to one of the four trustees. Lawyers are appointed Chapter 7 trustees as a part-time assignment.  He’s a partner in […] The post Chapter 7 Trustee Donald F King by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

We’re Zooming Virtual Bankruptcy Consultations We’ve been Zooming–doing virtual bankruptcy consultations–since April 2020. We’ll continue through 2021. We stopped in-office consultations with the March 2020 pandemic lock down.  (I first heard of Zoom when my church started using it. We’re a small congregation and can see everybody on screen.)  Since April 2020 I’ve Zoomed bankruptcy […] The post We’re Zooming Virtual Bankruptcy Consultations by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

The National Rifle Association likes guns. Texans like guns. Therefore, when the NRA decided to file bankruptcy, there was a certain logic to filing in Texas. Unfortunately, however, prior to November 24, 2020, the NRA had no legal right to file bankruptcy in Texas. This did not deter the gun rights advocates. They created one.Let me explain how this works. Under the bankruptcy venue statute, 28 U.S.C. Sec. 1408(a), a debtor can file bankruptcy in its domicile, residence, principal place of business or where its principal assets in the United States were located during the preceding 180 days. The NRA did not meet any of these tests. It is incorporated in New York. Its principal place of business and presumably principal assets are located in Virginia. However Sec. 1408(b) offers a loophole. A company can file in a district where a bankruptcy by one of its affiliates is pending. An affiliate includes a company owned by the debtor.Prior to November 24, 2020, the NRA could not have filed in Texas under affiliate venue either. So, on that day, less than sixty days before filing bankruptcy, the NRA created a Texas affiliate called Sea Girt, LLC. Sea Girt, LLC filed bankruptcy first and was assigned Case No. 21-30080. It did not list any creditors, which is not surprising for an entity created so recently. A few minutes later, the National Rifle Association filed its case and was assigned Case No. 21-30085.This is a clear case of forum shopping. Indeed, a statement from the NRA said that it was trying to escape the "toxic political environment of New York." In an article in USA Today, Bankruptcy Prof. John Pottow speculated that the company might be attempting to obtain a judge who would be Second Amendment friendly. The judge assigned to the Sea Girt case is Harlan "Cooter" Hale. The judge assigned to the NRA case is Stacy Jernigan. The two cases will likely be consolidated under one of the judges. However, either judge is a straight shooter who may question whether the choice of venue was a misfire. I make no predictions about how the judge will deal with a politically charged debtor who is transparently attempting to manipulate the rules on venue. However, I do note the irony here. In 2001, Texas-based Enron filed bankruptcy in New York based on a filing by an obscure affiliate. Now the New York based NRA is attempting to do the same thing in Texas.  

Bankruptcy Filing Guide: Will I Lose My Rental Property? Options to Get Debt Relief Through Bankruptcy Protection When you’re ready to file for bankruptcy, you are likely struggling so much to handle your financial obligations that you don’t want to have to give up any of the things you have going well for you – like the house you’ve been paying on and building equity or the rental property that’s actually been generating a bit of income for you. Don’t let fears that the few assets you do have will be seized to satisfy your creditors if you file for bankruptcy. Talk to a Phoenix bankruptcy lawyer to better understand how the rules will apply to your specific situation. Chapter 7 Bankruptcy If you file for Chapter 7 bankruptcy in Mesa, you are allowed to keep some of your assets. Bankruptcy law allows you to keep a certain amount of equity in your property. So, if you own a house, you don’t have to worry about losing the house if you haven’t built up that much equity in it. Rental property is different. It is not included in the exemption. However, it may still be safe from your creditors if you don’t have much equity in it. Creditors are going to have to spend money to seize and sell your property, and if the cost of doing that is more than what they are going to get for it, they likely won’t bother. The same is true if the amount would be a net positive, but not a very big one. Alternately, your Mesa bankruptcy attorney may advise you to use the wildcard exemption to protect your rental property. This exemption can apply to any personal property up to a certain amount. Your attorney will let you know how much it is and how it can be applied. Chapter 13 Bankruptcy You have a lot more flexibility when you file for Chapter 13 bankruptcy in Phoenix. You don’t have to meet any standards for income, and you don’t have to give up any property. You can hold onto your house and your rental property. Under a Chapter 13 bankruptcy filing, you restructure your debts under a repayment plan that the court determines you are able to afford. The repayment period lasts three to five years, and you make only one monthly payment that the court distributes among your creditors. You may end up paying less in interest and fees, and you could even have some of your debts discharged at the end of the repayment term. If you are struggling to pay the mortgage on your rental property, Chapter 13 bankruptcy has additional benefits. The repayment plan can help you to get current on what you owe so that the property does not go into foreclosure. If you have taken out a second mortgage on the property and the amount you owe is now worth more than the property itself, you may be able to “cram down” the mortgage – meaning that the amount you owe over the actual value of the property could be discharged. You can get the property back to an affordable level, helping you to get a better handle on your debt and start turning a profit on the rent. You have a lot of options to get debt relief through bankruptcy protection without having to give up assets such as your home or a rental property. A bankruptcy attorney in Phoenix can help you understand the best course of action to take to get the maximum debt relief available while also protecting the assets you want to keep. With the right attorney on your side, you can put together a filing that will help you get huge debt relief fast. Call My AZ Lawyers today to talk with an experienced bankruptcy attorney about your options. We represent individuals in both Chapter 7 bankruptcy and Chapter 13 bankruptcy cases. A bankruptcy lawyer will discuss your goals and your concerns and analyze your finances to help you determine the best path forward. Once the right strategy is determined, your attorney will put together a strong and thorough filing to help you get a fast resolution. Our goal is to help you get out from under the crushing weight of your debt so you can rebuild your finances quickly. Call us in Phoenix today to schedule a consultation. Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: [email protected] Website: https://myazlawyers.com/ 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 Bankruptcy Filing Guide: Will I Lose My Rental Property? appeared first on My AZ Lawyers.

 The Supreme Court decided that a creditor which passively retains possession of estate property does not "exercise control" over such property in violation of 11 U.S.C. Sec. 362(a)(3). The Court viewed the word "exercise" to require active measures.  Case No. 19-357, Chicago v. Fulton (1/14/21), which can be found here. In the Fulton case, the City of Chicago impounded the Debtor's vehicle over failure to pay fees. The Debtors (there were multiple consolidated cases) filed chapter 13 and demanded return of their vehicles. The City refused. The Seventh Circuit held that the refusal to relinquish possession was a violation of the automatic stay.Ruling from Judge Webster Alas, the Supreme Court read some dictionary definitions and ruled against the Debtors. After consulting Webster's New International Dictionary, the Court found that the words "act," "exercise" and "control" as used in Sec. 362(a)(3) were all words connoting action. The Court found that "362(a)(3) halts any affirmative act that would alter the status quo as of the time of the filing of a bankruptcy petition." Opinion at 4. Thus, if the City had placed a boot on the Debtor's car prior to bankruptcy and left it there after filing, there would be no violation. However, if the City placed the boot on the car after the filing date, that would be a change in the status quo. The Court did not reach the issues of how Sec. 542 would apply to the situation or whether the City's actions could have violated another subsection of Sec. 362.The Tears of Justice Sotomayor Justice Sotomayor wrote a sympathetic concurrence. She stated that "I agree that, as used in §362(a)(3), the phrase “exercise control over” does not cover a creditor’s passive retention of property lawfully seized prebankruptcy." She held out the hope that other provisions might apply.I write separately to emphasize that the Court has not decided whether and when §362(a)’s other provisions may require a creditor to return a debtor’s property. Those provisions  stay,among other things, “any act to create, perfect,or enforce any lien against property of the estate” and “any act to collect, assess, or recover a claim against [a] debtor” that arose prior to bankruptcy proceedings. §§362(a)(4), (6).She also noted that while the Court's result "satisfies the letter of the Code, it hardly comports with its spirit." She pointed out the difficulty in filing a turnover action which often must be done by adversary proceeding which takes an average of one hundred days. She recognized that:(W)ithout their vehicles, many debtors quickly find themselves unable to make their Chapter 13 payments. The cycle thus continues, disproportionately burdening communities of color, see Brief for American Civil Liberties Union et al. as Amici Curiae 17, and interfering not only with debtors’ ability to earn an income and pay their creditors but also with their access to childcare, groceries, medical appointments, and other necessities.She concluded with a call to action. Ultimately, however, any gap left by the Court’s ruling today is best addressed by rule drafters and policymakers, not bankruptcy judges. It is up to the Advisory Committee on Rules of Bankruptcy Procedure to consider amendments to the Rules that ensure prompt resolution of debtors’ requests for turnover under §542(a), especially where debtors’ vehicles are concerned. Congress, too, could offer a statutory fix, either by ensuring that expedited review is available for §542(a) proceedings seeking turnover of a vehicle or by enacting entirely new statutory mechanisms that require creditors to return cars to debtors in a timely manner.What It MeansThis case is a benefit for small, unsophisticated creditors who might not know what to do when faced with a demand from a bankruptcy debtor. The ruling also helps creditors dealing with bad actors. For example, if a creditor repossessed a vehicle after the debtor was arrested for driving drunk and without a license or insurance, it might feel reluctance to give the car back. In Circuits which followed the Seventh Circuit rule, the creditor would need to file an emergency motion to annul the automatic stay in order to retain possession. While this encourages creditors to maintain a relationship with a competent bankruptcy lawyer, it is still burdensome.On the other hand, the burden to the debtor who is not a bad actor and who needs the vehicle to get to work at a factory making Covid-19 vaccines, there is a definite burden.The Supreme Court's coy ruling that, well Sec. 362(a)(3) doesn't work, but maybe you could try something else is not very satisfying.  Justice Sotomayor has the right idea. What is needed is an efficient, expedited procedure for good debtors to get their cars back and for good creditors to receive clear direction as to their obligations. I predict that this will bubble up in the form of local rules until the national rules committee or Congress finds a fix.    

In short, the answer is: “PROBABLY NOT!”  Under current Pennsylvania law, police can now no longer search a vehicle unless they have two (2) things: probable cause AND exigent circumstances. Probable Cause & Exigent Circumstances In the year 2014, Pennsylvania underwent a drastic change in its law on allowing police officers to search a vehicle […] The post Can Police Search Your Home or Car Without a Warrant in Pennsylvania? appeared first on .

If you have an upcoming Social Security Disability hearing in Pennsylvania or New Jersey, it means that you have been denied both initially and on Reconsideration.  Don’t be alarmed! Your greatest chance of success comes at this level.  Statistically, more people are granted benefits at the hearing level than at any of step in the […] The post What to Expect at a Disability Hearing in Pennsylvania or New Jersey appeared first on .