Debt collectors are trained to make your calls with them as stressful and as frustrating as possible. They’re trained to get you into a state of fear, to make you ashamed, and to hit every emotional button they can hit to make you pay up, even if you take actions that are highly detrimental to […] The post Philadelphia Residents: Know Your Rights When Debt Collectors Call appeared first on .

As many readers of our blog and emails know,  at Shenwick & Associates we are helping many commercial tenants vacate their leases prior to the  expiration of their lease, due to the virus and other economic factors. See https://shenwick.blogspot.com/2019/11/the-failed-or-closed-restaurant-and-its_6.html and "Commercial leases in New York City, COVID-19, Recent Protests and a Strategy to End or Terminate Commercial Leases", dated SUNDAY, JULY 12, 2020 can be found at https://shenwick.blogspot.com/2020/07/commercial-leases-in-new-york-city.html.A law was recently passed in NYC which limits the liability of individuals who have guaranteed leases with certain restrictions (that law Int. 1932-A, which is discussed below and which many people including attorneys and lawyers are not aware) can limit a guarantors exposure if a lease is terminated.The Wall Street Journal reports that only 10% of workers have returned to their office in NYC and with so many workers working remotely, many businesses would like to terminate or  exit their leases and or vacate their space prior to the expiration date of the lease to save on the cost of rent. In fact, office rent and the cost of commuting are significant business expenses that many businesses would like to reduce or eliminate.Additionally, many experts predict that many workers may never return to New York or other cities due to technological advances like Zoom, Google Meet, crime, the diminishing quality of life in New York, the cost, aggravation and time spent commuting and the other benefits of not having to commute, such as more family and leisure time.At Shenwick & Associates,  we have helped many tenants vacate their lease and space  using a multi pronged strategy consisting of:   1. review of the commercial lease to determine if the Landlord has breached any terms of the Lease, 2.   review of the guarantee or good guy guarantee signed by the   principle of the business, 3.  aggressive negotiations with the landlord and 4.  threatening or filing a bankruptcy petition, including new sub chapter 5 of chapter 11 of the bankruptcy code, to reject the lease in bankruptcy or to close the business.Many clients are interested in retaining our  services, but they are concerned about the impact of the  guarantee or the good guy guarantee, if the commercial tenant vacates the space early or terminates the lease prior to its expiration.Guarantees:There are two types of guarantees in leases: a regular guarantee and a good guy guarantee. Good guy guarantees are more common in leases  than regular guarantees in leases. Having reviewed many office guarantees, we note that many guarantees have a limited life, meaning that the guarantee expires on its own terms during the term of the lease or converts to a good guy guaranty, after a period of time.A good guy guarantee generally provides that the guarantors liability for rent or additional rent terminate when 1. the tenant gives proper notice (pursuant to the terms of the Lease or the good guy guaranty) that the tenant will vacate the space (generally 90 days), 2. The tenant does in fact vacate the space and is current on the payment of rent or additional rent when it vacates and 3. The premises are left “broome clean”. Provided that these and other conditions are met, the guarantors liability ceases, however the tenant remains liable for rent and additional rent until the lease expires. Oftentimes if we can show a landlord that the tenant is out of business, closing its business,  losing money or has few assets, the landlord may be amenable to allowing the tenant to vacate the space early, pursuant to a negotiated lease surrender agreement.If the landlord resists, we will draft a bankruptcy petition and send it to the landlord indicating that if the parties cannot reach an agreement then the tenant will file for bankruptcy and the landlord will lose rent, and incur significant legal fees for landlord tenant and bankruptcy attorneys.Additionally, there is a New York City law that can aid a tenant who wants to vacate a space with respect to money that may be owed by the guarantor., which law prohibits the enforcement of personal liability provisions in certain commercial leasesInt. 1932-A prohibits landlords under certain commercial leases from enforcing guarantees in their leases if the guarantors  are “natural persons,”  (it may not apply if the guarantor is an  LLC or corporations), provided that the default occurred between March 7, 2020 and September 30, 2020, and that the tenant was impacted by the stay at home orders implemented by the Governor’s office in one of the following ways: 1. the tenant was required to cease serving food or beverages for on-premises consumption or to cease operation under Executive Order 202.3 issued by the Governor on March 16, 2020; 2. the tenant was a non-essential retail establishment subject to in-person limitations under guidance issued by the New York State Department of Economic Development pursuant to Executive Order 202.6 issued by the Governor on March 18, 2020; or 3. the tenant was required to close to members of the public under Executive Order 202.7 issued by the Governor on March 19, 2020 (i.e. barbershops, hair salons, tattoo or piercing parlors, nail technicians, cosmetologists, estheticians and the provision of electrolysis, laser hair removal services and related personal care services).The law also provides that if a landlord  attempts to enforce a guaranty that the landlord knows or reasonably knows  is not enforceable, that would be  commercial tenant harassment that is prohibited under Subdivision a of section 22-902 of the Administrative Code of the City of New YorkThe facts of each case need to be reviewed to determine if Int. 1932-A applies, however at Shenwick & Associates we have found that many tenants meet the requirements of the law based on the fact that the tenant was a non-essential retail establishment and therefore their guarantor liability was voided.Clients that are interested in terminating their lease or existing their lease early should contact Jim Shenwick   [email protected] 212 541 6224.   

 https://www.bloomberg.com/news/features/2020-09-29/new-york-city-bankruptcies-2020-pivotal-point-for-business-as-covid-cases-rise Originally appeared on BloombergAlmost 6,000 city businesses have closed. Recovery hinges on office workers’ returnThe pandemic has battered New York City businesses, with almost 6,000 closures, a jump of about 40% in bankruptcy filings across the region and shuttered storefronts in the business districts of all five boroughs.It’s going to get worse.This fall, the nation’s largest city will see even more padlocked doors as companies burn through federal and private loans they tapped in March, landlords boot businesses that can’t make rent, and plummeting temperatures chill outdoor dining and shopping. “By late fall, there will be an avalanche of bankruptcies,” said Al Togut, a lawyer who has handled insolvencies for small businesses and huge corporations like Enron. “When the cold weather comes, that’s when we’ll start to see a surge in bankruptcies in New York City.”New York City and its businesses have reached a pivotal point. After over six months with the specter of Covid-19 hovering in every subway car and corner bodega, the virus is showing signs of resurgence.The state of New York on Saturday reported more than 1,000 new cases for the first time since early June. Spikes emerged in south Brooklyn and Queens neighborhoods with large Orthodox Jewish communities, just as they observed Yom Kippur. Meanwhile, principals called on the state to take over schools days before they restart in-person classes, saying Mayor Bill de Blasio failed to ensure enough staff to open safely.  Pedestrians pass by a closed storefront on Madison Avenue.The coming wave of business closings will touch every New Yorker as jobs get scarcer, neighborhoods lose beloved shops and families run out of cash.Already, dwindling tax revenue has led to cutbacks in municipal services. Trash on sidewalks, unkempt parks and an increase in shootings have made it more difficult to persuade workers to return to offices, more than 150 executives told the mayor in a letter this month. A dearth of office workers is a death knell for many merchants.“It’s a crisis, and we need to act—our economy can’t recover without saving small businesses,” said city Comptroller Scott Stringer, a candidate in next year’s mayoral election. “When they close, we don’t just lose our beloved Main Street businesses. We lose jobs, tax revenue and the economic backbone of our city.”The pandemic could permanently close as many as a third of New York’s 230,000 businesses, according to the Partnership for New York City, a business group.Bankruptcy filings in the region have skyrocketed since the middle of March, when the state of New York reported its first deaths from Covid-19 and Governor Andrew Cuomo closed all nonessential businesses. There were 610 filings in the Southern and Eastern Districts of New York from March 16 to Sept. 27, according to court records. That’s a 40 percent jump from the same period in 2019 and the most by far for any year since the financial crisis. The districts include some nearby counties.Almost 6,000 New York City businesses closed from March 1 to Sept. 11, according to Yelp, the website of user reviews. Over 4,000 of those closed permanently.The carnage has been demoralizing after decades in which the city fought back from the brink of bankruptcy, the scourges of crack cocaine and violent crime, terrorist attacks and recession. The pandemic hit as the city had achieved record high employment and low crime.  Diners eat outside a French restaurant in front of a storefront for lease.Prosperity expressed itself in bustling department stores from Bergdorf’s to Macy’s. Neighborhoods flourished with artisanal food and clothing boutiques, mom and pop stores, and coffee shops that gave New Yorkers a place to feel at home outside their tiny apartments.The nation’s business capital has always rebounded from past crises, but the advent of work-from-home in an economy increasingly dependent on white-collar jobs may be an insurmountable challenge.Distress is on display on Madison Avenue, once a global destination bustling with glamorous shoppers. From 60th Street to 70th Street today, about 60 of the 130 storefronts are closed and locked. Padlocked doors and windows covered with butcher paper or plywood line a quiet boulevard. Even inside the luxury retailers that remain open, like Dolce & Gabbana and Prada, a handful of well-coiffed sales people and broad-shouldered security guards stand expectantly on sales floors empty of customers.The owner of Jimmy’s Steak and Grill, a food cart on the corner of Madison and 60th, said that with nearby office buildings empty, sales of hot dogs and lamb-on-rice platters are down 60%.“Right now, I’m supposed to have a line,” Jimmy Gonzalez said through a black mask, motioning mournfully to the empty sidewalk. Over half the food-cart owners he knows gave up. “They sell the cart, they sell the permit, they sell everything.”Small businesses like Gonzalez’s show what’s at stake when big employers keep workers away from office towers. Manhattan businesses that use the digital payment system Square are earning only 62% of the revenue they earned pre-pandemic, according to the company.  A padlock on the door of Carroll Gardens Classic Diner, a neighborhood restaurant now permanently closed after struggling during the pandemic. “This is likely a result of a significant drop in the number of commuters coming into the borough,” according to Square economist Felipe Chacon.By late September, just 15% of the city’s 1.2 million office workers had returned, according to the Partnership for New York City.“Retail and real estate will continue to decline in New York until you can reignite the office traffic,” said Joseph Malfitano, who advised Brooks Brothers and the parent company of Ann Taylor in their bankruptcies this year.Many New York City business owners who give up don’t even bother filing for bankruptcy, which can cost as much as $25,000, according to Leslie Berkoff, a longtime bankruptcy attorney. Owners just lock the doors and walk away.“What’s the point of bankruptcy? Nobody’s going to chase you right now,” said Berkoff. “A lot of your vendors probably aren’t going to survive either.”That’s what cheesemonger Patrick Watson, the owner of Stinky Bklyn in the Cobble Hill neighborhood, did when his landlord refused to renegotiate his rent. Watson quickly sold off his inventory of imported Brie and Humboldt Fog and donated the remaining staples —cans of tuna, crackers and condiments—to a homeless shelter.“We tried. We really, really tried,” Watson wrote on Facebook in April. “For the safety of our crew and with no immediate end in sight, Sunday will be our last day.”About 10 neighboring businesses also closed, including a diner, a bar and a hair salon, said Randy Peers, president of the Brooklyn Chamber of Commerce.Sales remain brisk at Watson’s other business, a wineshop called Smith & Vine, possibly indicating heightened stress levels in the city.In an effort to help restaurants, the city closed dozens of streets on weekends so they can take that space, and it’s going to continue the program into the winter, allowing propane heat lamps and tent-like enclosures.“Once you hit below 60 degrees, it starts to get dicey,” said Vin McCann, a restaurant consultant. “I would bet you that between 25 and 50 percent of restaurants in New York City will not come back.”Rent relief could be possible if the state allowed localities to forgive landlords’ property-tax payments in return for discounting rent owed to them, said City Councilman Mark Gjonaj, who heads the council’s small-business committee.“This would help save struggling mom-and-pop shops while preventing landlords’ properties from going into distress,” he said.The city’s Department of Small Business Services received about 35,000 calls for help since June and gave out about 4,000 grants and loans from an $80 million program approved early in the pandemic.“A third of our small businesses could be closed if we don’t have a strong recovery,” said Jonnel Doris, the department’s commissioner. “The fate of small businesses will determine the fate of the city.”  A “For Lease” sign hangs in the window of Stinky Bklyn.  

https://nypost.com/2020/09/21/almost-90-percent-of-nyc-bars-and-restaurants-couldnt-pay-august-rent/ Originally appeared on New York Post Nearly 90 percent of New York City bar and restaurant owners couldn't pay their rent in August, heightening the continued crush the coronavirus shutdown has inflicted on Gotham’s economy. Eighty-seven percent of bars, restaurants, nightclubs and event spaces in the five boroughs could not pay their full August rent, according to data from 457 businesses surveyed between Aug. 25 and Sept. 11, in a new study released Monday by the nonprofit NYC Hospitality Alliance.It’s a 7 percentage-point increase from June and a four-point jump from July, darkening the dire picture for eateries desperately seeking relief following six months of partial — and in some cases total — closure due to COVID-19 shutdowns.Some 34 percent of this group said they could not pay rent at all last month, and only 12.9 percent were able to meet full payments.“Restaurants, bars and nightlife venues have been financially devastated by the COVID-19 pandemic,” said alliance executive director Andrew Rigie.“Even before the pandemic when operating at 100 percent occupancy, these small businesses were struggling to stay open. Now we’re seeing widespread closures, approximately 150,000 industry workers are still out of their jobs, and the overwhelming majority of these remaining small businesses cannot afford to pay rent.“The hospitality industry is essential to New York’s economic and social fabric, and to ensure the survival of these vital small businesses and jobs, we urgently need rent relief, an indefinite extension of outdoor dining, a roadmap for expanded indoor dining, covered business interruption insurance and immediate passage of the Restaurants Act by Congress,” he added.When asked if landlords were waiving rent in relation to COVID-19 hardships, just 40 percent of businesses responded in the affirmative — 28.5 percent said less than 50 percent of their rental obligations were waived in August, 43 percent said 50 percent and 28.5 percent said they were given a break on more than 50 percent of their rental fees.Meanwhile, 90 percent reported they have been trying to negotiate their leases, but their landlords wouldn’t budge.The study also comes ahead of the long-awaited partial reopening of New York City’s indoor dining slated for Sept. 30 at 25 percent capacity.New York City will be the last region in the state — and also a month behind neighboring New Jersey — to get the green light for the practice, despite a majority of the Empire State’s 57 counties outside the five boroughs being approved for the practice since June.“I’m not really surprised because the industry is devastated by this pandemic,” said David Rosen, owner of several eateries including Williamsburg’s the Breakers. He is also co-founder of the Brooklyn Allied Bars and Restaurants and a member of the New York City Nightlife Advisory Board.“The analysis around why folks are not able to get firm relief from their landlord, or renegotiate around long-term lease agreements or changes, is interesting because the narrative for the past few months has generally trended in a positive direction,” said Rosen.“I can understand why landlords have been reticent to renegotiate because people have been under the impression that we would reopen or get back to normal,” he added, saying he, too, is in different stages of ongoing discussions with his landlords and doesn’t expect to fully reopen his venues until at least next spring.“What’s concerning about this report is I would assume given the past two months and with outdoor dining unfortunately will be peak revenue season during this pandemic for restaurants. As we head into the winter, even with indoor dining on the horizon, I don’t think that 25 percent indoor will exceed what exists already outside. This ‘inability to pay rent’ trend will continue, if not worsen,” he said.“We understand the difficulties facing restaurants, which is why we’re protecting commercial establishments from eviction, allowing bars to sell cocktails via take-out and delivery, and cutting red tape so restaurants can easily expand outdoor dining,” said Jack Sterne, a spokesman for Gov. Cuomo. Guidelines will be reassessed by Nov. 1 and restaurants may be allowed to increase to 50 percent capacity depending on positive compliance and infection data, according to state officials.–– ADVERTISEMENT ––

 https://nypost.com/2020/09/17/majority-of-covid-19-business-closures-are-permanent-report/Originally appeared on New York Post Nearly 60 percent of businesses that closed nationwide during the COVID-19 pandemic are never reopening again, according to a report.  The vast majority of those businesses are restaurants and gift stores, according to Yelp’s Local Economic Impact Report, a monthly survey of business listings.As of Aug. 31, 163,735 businesses were listed as closed, with 97,966 of them permanent closures — a 23 percent increase from July 10, the report said.Within the retail sector, permanent closures of bars and nightclubs grew by 10 percent since July, while closures of beauty related shops grew by 23 percent over the same period. Fitness club closures grew by an alarming 23 percent.On Monday, the owner of New York Sports Clubs filed for bankruptcy protection, following on the heels of the May bankruptcy filing of Gold’s Gym.Meanwhile, some businesses have actually thrived during the pandemic, according to the report.Home improvement businesses, including contractors and plumbers as well as auto-related businesses like towing companies have been spared the brunt of the pandemic.“Even in the wake of increased closures we’re seeing businesses effectively transition to new operating models while keeping their employees and consumers safe,” the report stated.The five top cities for permanent closures were New York, Los Angeles, San Francisco, Chicago and Dallas. Pittsburgh, Philadelphia and Baltimore had among the fewest closures, according to the report.

https://www.marketwatch.com/story/as-yellow-taxi-drivers-struggle-city-announces-six-month-pause-on-new-licenses-2020-09-17 Originally appeared on MarketWatchTaxi drivers struggling to make ends meet have demanded medallion debt forgiveness and limits on ride-share apps   Helicopters circled and horns blared in solidarity as a fleet of yellow cabs shut down traffic on the Brooklyn Bridge on Thursday, the latest effort by the city’s beleaguered taxi drivers to draw attention to their cause and demand debt relief for their high-price medallion loans. “Seventy percent of the drivers are not working. The taxi fleets have most of the taxis in storage,” said Sergio Cabrera, a longtime cabdriver and member of advocacy group Yellow Taxi United. “In 21 years of driving, I’ve never seen it like this.” With anger among taxi drivers hitting a breaking point, the Taxi and Limousine Commission (TLC) planned to announce a six-month pause on new licenses for for-hire vehicles, a move that could stem the tide of new competition, including from disrupters Lyft LYFT, +0.94%   and Uber UBER, +1.80%  . A formal announcement is expected on Friday. But the move does little to address drivers’ main demand for debt relief. The city’s yellow-cab drivers felt the full force of the blow when the coronavirus pandemic hit New York, with trips plummeting 84% from their pre-COVID levels by early April. And while there’s been a slow trickle of returning passengers over the past several months and new relief efforts by the city’s TLC, drivers say it’s still not nearly enough to sustain business as usual — or to pay back expensive medallion loans. With Manhattan still largely devoid of office workers and tourists, Cabrera said, drivers are turning to the outer boroughs for fares. “In the outer boroughs where the average people live, there is much more movement,” Cabrera said. “Manhattan is not busy, it’s not functioning the way it should be. I don’t know when it’s going to come back.” The strain on the city’s taxi drivers is compounded by years of tightening margins and spiraling debt, as competition from apps like Uber and Lyft has flooded city streets, and declining values of the high-price medallions required to operate have left many drivers hundreds of thousands of dollars in debt. In 2018, then-taxi commissioner Meera Joshi characterized a spate of driver suicides as "an epidemic" in the industry. “COVID is just the latest problem,” said Carolyn Protz, a driver and member of Yellow Taxi United as well as the NYC Taxi Medallion Owner Driver Association. “Our problems as medallion owners go back much longer.”Members of the New York Taxi Workers Alliance, a union representing both yellow cab and Uber/Lyft drivers, had staged Thursday’s slowdowns on the Brooklyn and Queensboro bridges to draw attention to demands for debt forgiveness for medallion owners. Representatives of alliance did not respond to multiple requests for comment. As with many issues facing small-business owners in the pandemic, city officials say that further support and bailout money should come from the federal government and financial institutions. rather than local government agencies already facing budget cuts and potential layoffs. “The city is obviously in a financial crisis. There’s not a current opportunity for a traditional bailout for medallion owners who are indebted to banks,” TLC Commissioner Aloysee Heredia Jarmoszuk told MarketWatch. “It would require federal action and some regulation for banks that may have taken advantage of medallion owners who find themselves with higher interest and untenable loans.” Last week, it was reported that Connecticut-based investment firm Marblegate Asset Management LLC has recently forgiven $70 million worth of medallion debt, and in some cases capped individual owners’ debts at a ceiling of $300,000. The average driver-owner carries $600,000 in $600,000 in medallion debt, according to the TWA, and over the past decade, medallion prices had been inflated from around $200,000 to as high as $1 million, an investigation from the New York Times found last year. Advocates say it’s a helpful step, but more aid is needed. “Even the amount that they’ve lowered the debt, it’s an undoable amount of money to make those payments on a monthly basis,” said Cabrera, the cabdriver and advocate. “Most of the banks have a forbearance going on medallion payments right now, so that has helped. But we need massive debt relief. We need the city to step in.” At the height of the pandemic, the TLC launched the Get Food NYC food delivery program, paying licensed taxi drivers to deliver meals to vulnerable New Yorkers. More than 20,000 drivers have participated in the delivery of over 100 million meals since March, according to city data, collectively earning close to $40 million, Jarmoszuk said. “We have a lot of problems, we cannot deny that,” Jarmoszuk added. “These things did not happen overnight. It could have been far worse, but we were able to put supports in place to lessen the blow. Solutions [will take time] but they will happen.” Still, drivers are concerned about their debt, and what the industry will look like on the other side of the current crisis. “My concern is for the future, after COVID,” Protz said. “Going forward, there need to be many less for-hire vehicles [on the road].”  “I’m in the Bronx by the [Bronx Terminal Market],” Cabrera said. “I’ll sit here until a call comes through or someone comes out of the mall. The days are long. The income is not where it needs to be to make any kind of payment on what I owe.”

 This post was originally intended to be about the bankruptcy jurisprudence of Supreme Court nominee Amy Coney Barrett. That would have been a very short post. She has been on panels which issued seven per curiam unpublished opinions in bankruptcy matters, none of which were very remarkable. Instead, I will look at three of her opinions dealing with consumer financial services and cases where she did not rule for law enforcement or employers,  traditional favorites of conservatives. While most of her writing is workmanlike, she occasionally reaches for a memorable turn of phrase. The Consumer Protection Decisions In determining a case under the Telephone Consumer Protection Act, Judge Barrett lamented that the provision in question was "enough to make a grammarian throw down her pen." Gadelhak v. AT&T Services, 950 F.3d 458 (7th Cir. 2020).  She succinctly stated that: We'll save the intense grammatical parsing for the body of the opinion—here, we'll just give the punchline. We hold that "using a random or sequential number generator" modifies both "store" and "produce." The system at issue in this case, AT&T's "Customer Rules Feedback Tool," neither stores nor produces numbers using a random or sequential number generator; instead, it exclusively dials numbers stored in a customer database. Thus, it is not an "automatic telephone dialing system" as defined by the Act—which means that AT&T did not violate the Act when it sent unwanted automated text messages to Ali Gadelhak. While Judge Barrett may have wanted to throw down her pen, she did follow the grammar. However, the statutory language did not keep her from ruling against an FDCPA plaintiff who alleged a technical notice violation. In Casillas v. Madison Ave. Associates, 926 F.3d 329 (7th Cir. 2019), a debt validation notice failed to state that any requests for validation must be made in writing. The consumer did not attempt to make a written or verbal request for validationbut did file an FDCPA class action. Judge Barrett wrote that under the Supreme Court's Spokeo decision that a plaintiff cannot claim "a bare procedural violation, divorced from any concrete harm, and satisfy the injury-in-fact requirement of Article III." Judge Barrett also wrote an opinion affirming a summary judgment for the defense in a case under the FDCPA and FCRA in Walton v. EOS CCA, 885 F.3d 1024 (7th Cir. 2018).  This was a case about verification of a debt to ATT in the amount of $268.47. When ATT sent the debt to the debt collector, it transposed several of the digits in the account number. The clever consumer wrote to the debt collector stating that she did not "own (sic) AT&T any money under the account number listed above." The debt collector responded that it had verified that her name, address and the last four digits of her social security number matched the debt report it had received from AT&T. The debt collector reported the debt to two credit reporting agencies but indicated that it was disputed.   The consumer filed two complaints with the credit reporting agencies. In the second, she stated that the account number was incorrect. At that point, the debt collector deleted the trade line. The consumer sued under FDCPA contending that the debt collector failed to verify the debt with the original creditor and under FCRA asserting that it failed to reasonably investigate the disputed information. Judge Barrett went to the dictionary to see what the term "verification" meant but then noted that the "question here is what the debt collector is supposed to be verifying." The consumer argued that the debt collector was required to verify the original debt while the debt collector argued that it was required to verify that the notice it provided to the consumer matched the information it had received from the creditor. Judge Barrett agreed with the debt collector. Judge Barrett also ruled that the debt collector properly investigated the dispute made to the credit reporting agencies. The first dispute asserted that the debt was not hers. The debt collector properly verified that the information that it received from the creditor identified the account as belonging to the consumer. When she clarified that the account number was wrong, the debt collector deleted the trade line.  These opinions demonstrate that Judge Barrett has a passing familiarity with the three major federal consumer protection statutes and that she appears to take these issues seriously. Judge Barrett Does Not Always Rule for the Authority Figure In the classic film, School of Rock, Jack Black's character tells his young charges that the purpose of rock and roll is to stick it to the man. Although Judge Barrett is a conservative judge, there are definitely opinions in which she has been willing to stick it to the man. This was the most interesting thing that I found in examining her slight judicial record of less than one hundred published opinions.  Judge Barrett has ruled against the employer in several cases involving discrimination on the basis of sex. Judge Barrett affirmed a judgment against Costco for failing to prevent a hostile work environment when a customer relentlessly stalked and harassed a female employee. While Costco argued that other unsuccessful Title VII plaintiffs had alleged far worse conduct, Judge Barrett found that the evidence was sufficient for the jury to find in the EEOC's favor.  EEOC v. Costco Wholesale Corp., 903 F.3d 618 (7th Cir. 2018).  In a male on male sexual harassment case, Judge Barrett affirmed the jury verdict. Where male employees grabbed another man's buttocks and genitals and reached down his pants among other actions, there was sufficient evidence to conclude that he was harassed based on sex where there was no evidence that female employees were subject to the same treatment. (He was also told to go back to Africa which would indicate racial discrimination as well). Smith v. Rosebud Farm, Inc., 898 F.3d 747 (7th Cir. 2018). These decisions show a willingness to uphold jury verdicts based on evidence. However, they also show a lack of judicial activism to protect employers from being sued.  Judge Barrett was also unwilling to reverse a district court's determination that a detective was not entitled to qualified immunity in a Section 1983 case. The detective contended that even though he lied in his probable cause affidavit, his lies were not material. Judge Barrett wrote that "when the lies are taken out and the exculpatory evidence is added in" there was not sufficient evidence to arrest a man for the murder of his mother.  The fact that he had a key to his mother's apartment, checked on her and stood to inherit was not enough to establish probable cause. Rainsberger v. Benner, 913 F.3d 640 (7th Cir. 2019).  In another case, the DEA arrested a suspect and then went to search his apartment. A woman wearing a bathrobe let them in. The agents did not ask her who was or why she was there until partway through the search.  Judge Barrett reversed the trial court's decision not to suppress the evidence obtained during the search. She wrote that "A bathrobe alone does not clothe someone with apparent authority over a residence, even at 10:00 in the morning." United States v. Terry, 915 F.3d 1141 (7th Cir. 2018). Judge Barrett also ruled that a defendant was entitled to a new sentencing hearing before a different judge after the judge refused to recuse himself.  The judge had previously been a prosecutor in the same U.S. Attorney's office which was prosecuting the defendant. It came to light that the judge had had over 100 ex parte communications with the U.S. Attorney's office about other cases. As a result, the Chief Judge removed the judge from any cases involving his former office. The defendant raised the judge's failure to recuse for the first time on appeal because the ex parte contacts were not disclosed until after sentencing. Judge Barrett wrote that "Allowing Atwood's sentence to stand would undermine the public's confidence in the fairness of this sentence and in the impartiality of the judiciary." United States v. Atwood, 941 F.3d 883 (7th Cir 2019). There are other similar cases that I could discuss as well. To me, this second set of cases demonstrates that Judge Barrett displays judicial independence in cases where business and law and order advocates might have preferred a different result. The decisions appear to be carefully thought out and correct. If Judge Barrett is a dangerous idealogue, she has not provided her critics with evidence in this handful of cases.   

If you are dealing with growing financial debt, then it is natural to wonder about the potential of filing bankruptcy to help fix your financial situation. A successful bankruptcy can help alleviate your financial woes, but it should not be your first option. You should hold off filing for bankruptcy until you address the following […] The post Five Important Questions to Answer Before Filing for Bankruptcy appeared first on .

Consumer Finance Protection Bureau Announces They Don’t Chase Underground Debt Collectors “We are unable to send your complaint to the company for a response.” That’s what the Consumer Finance Protection Bureau told Chuck Sterling. “The company is not in our complaint system.” Chuck, a former client, received an email today, threatening to “take him into […] The post Consumer Finance Protection Bureau Won’t Chase Underground Debt Collectors by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

COVID-19 Debt: Measures You Can Take to Manage Your Finances The COVID-19 pandemic has caused sweeping economic changes. Many people have lost their jobs, and others have had their jobs put on hold or had their salaries reduced. A lot of people are not able to make ends meet, and they are relying on sources like credit cards to get them through it. Unfortunately, what we’re likely to see once this is all over is a surge in bankruptcy filings. The best thing you can do now is to make some changes to your finances to weather the storm and hope that things will improve soon. Here are a few measures you can take now to try to reduce your financial problems: File for Unemployment If you are among the many who have lost their jobs during the pandemic, you should file for unemployment benefits as soon as possible. There is a delay in processing these claims because of the overwhelming number of cases and because of the restrictions on people in the workplace. File for benefits as quickly as possible so you can start getting the financial assistance you need. You won’t get the full salary you once enjoyed, but you’ll get some money that can help you (hopefully) stay afloat and avoid incurring more debt. Negotiate with Creditors You may be doing a good job of restricting your credit card use during this time, but you may have a large credit card balance from before your financial troubles began. You may be able to negotiate new payment terms with your creditors, such as a lower interest rate or a temporary lower monthly payment. Some creditors may be more willing to work with you than others. Just be polite and persistent. As a last resort, you can always gently remind them that if they don’t work with you, the next notice they may get may be from a Gilbert bankruptcy attorney. Seek Forbearance on Student Loans If you are still paying student loans, you should call your loan provider and ask for a deferral. Most student loan providers are quite willing to defer loan payments six months or more or to lower your payment. If you get to the end of the six months and find that you are still struggling, call and ask for another deferral. You can use the money to pay for other bills. However, know that you shouldn’t just stop paying your student loans. You will not be able to discharge them in a bankruptcy, and the government will come to collect. Failing to pay your loans will also destroy your credit, while getting a forbearance will not. Prioritize Payments You may find that even with your best efforts, you just aren’t able to pay all your bills each month. If that’s the case, you should prioritize your payments so that the most important bills are taken care of each month. Of course, your rent and your mortgage should be the top priority. If you are renting and fall behind, you can be evicted quite easily. If you are paying a mortgage, the bank can move to foreclosure proceedings quickly. You can file Mesa Chapter 13 bankruptcy to rescue your home from foreclosure, but it’s better to take proactive measures before things reach that stage. Credit cards should be at the bottom of your list of priorities for payments since these are unsecured, and creditors cannot seize your assets to satisfy the debt. Credit card debt can also be easily discharged through a Chapter 7 bankruptcy filing in Mesa. Know that if you are struggling right now, there are many other people who are struggling with you. Do what you can to weather the storm by making some of the changes to manage your finances. Know also that debt relief is available through bankruptcy if and when you need it. Talk to a bankruptcy attorney at My AZ Lawyers about what kind of debt relief is possible through bankruptcy protection. We handle both business and individual bankruptcies, including Chapter 7 bankruptcy and Chapter 13 bankruptcy. We’ll help you understand the options and how you can get maximum debt relief. We serve clients throughout Phoenix, Mesa, Tucson, and Glendale. Call us today to talk with a bankruptcy lawyer and to learn more. Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: [email protected] Website: http://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 COVID-19 Debt: Measures You Can Take to Manage Your Finances appeared first on My AZ Lawyers.