The Third Circuit held that a foreclosure sale of a property tax lien certificate was held to be an avoidable preference in Hackler v. Arianna Holdings Co., LLC, 2019 U.S. App. LEXIS 27514, Case #18-1650 (3rd Cir. 12 September 2019).   In 2013 the township of North Brunswich, NJ held a duly advertised tax sale for unpaid property taxes on a parcel of land owned by the Hacklers.  Under the procedures of such sale, the purchasers bid on the interest rate to be paid on the tax certificate, and Phoenix Funding, Inc. bid the interest rate down to 0%, and paid a premium of $13,500 above the value of the lien to purchase the tax certificate.  Phoenix then paid the delinquent taxes when they come due and charged the state allowed 18% interest on the subsequent taxes.  Under NJ procedures, if the property owner does not pay the certificate holder the redemption amount, the original taxes and subsequent taxes at 18% interest, the certificate holder may file for a foreclosure judgment after 2 years.  Such judgment vests title directly in the lien certificate holder.  Phoenix filed such a foreclosure after waiting the required 2 years, and on May 9, 2016 assigned the certificate to Ariana Holding Company, LLC.  When the certificate was not redeemed, property vested in Ariana on 6 October 2016.    On 14 December 2016 the Hacklers filed for relief under chapter 13.  The schedules showed the value of the property at $335,000, far exceeding the $42,561.21 amount on a proof of claim filed by Ariana, as well as other liens totaling $89,000.  The plan provided for payment of Ariana in full.  Debtors also filed an adversary to avoid the foreclosure sale under §547(d) of the code and both parties moved for summary judgment.  the bankruptcy court ruled in favor of the Hacklers, which was affirmed by the district court, and Ariana appealed to the 3rd Circuit.  The circuit court first examined the statute itself.  §547(b) of the Bankruptcy Code permits the trustee to avoid any transfer:(1) to or for the benefit of a creditor;(2) for or on account of an antecedent debt owed by the debtor before such transfer was made;         (3) made while the debtor was insolvent;         (4) made --              (A) on or within 90 days before the date of the filing of the petition; or              (B)  between ninety days and one year before the date of the filing of the petition, if                    such creditor at the time of such transfer was an insider; and          (5) that enables such creditor to receive more than such creditor would receive if--              (A) the case were a case under chapter 7 of this title;              (B) the transfer had not been made; and              (C) such creditor received payment of such debt to the extent provided by the                            provisions of this title.  11 U.S.C. 547(b).   The transfer meets the stated requirements to fall under §547(b), and does not lead to an absurd result, therefore should apply to the foreclosure sale of the tax certificate.  Ariana raises two arguments.  First, it argues that a lawfully-conducted state tax foreclosure sale cannot constitute a voidable preference under §547 relying on the Supreme Court's decision in BFP v. Resolution Trust Corp.1  Second, Ariana argues avoidance of the transfer wold violate the tax injunction act, 28 U.S.C. §1341.    As to the first argument, the 3rd Circuit distinguished BFP.  BFP held that a non-collusive real estate mortgage foreclosure sale conducted in conformance with applicable state law satisfied the requirement of §548 that a property transfer be made in exchange for a reasonably equivalent value, thereby protecting it from voidance.   BFP was interpreting the fraudulent avoidance statute, §548, rather than the preference statute.  Second, the case was grounded on interpretation of 'reasonably equivalent value' which appears no where else in the code.  The BFP court interpreted reasonably equivalent value as distinct from fair market value as recognizing that property sold at a forced sale, such as a foreclosure sale, cannot be expected to bring the price it would command if sold in a fair market.       The foreclosure process is distinguished from the tax certificate sale proceess, where the bids for sale of the certificate relate only to the interest rate to be paid on such certificate rather than on the value of the property.  The court noted in a footnote that the reasoning of BFP may not apply to forced sales to satisfy tax liens.2 BFP's reliance on the language 'reasonably equivalent value' simply has no application to §547(b) which does not use this language.  Nor does the conclusion conflict with NJ State law, as the NJ Fraudulent provision statute does not address preferential transfers.   Nor did the 3rd Circuit accept Ariana's argument that the avoidance violates the tax injunction act of 28 U.S.C. §1341.   This act provides that district courts shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under State law if a remedy exists in state law.    The circuit court held that the Tax Injunction Act does not prevent a Bankruptcy Court from enforcing the provisions of the Bankruptcy Code that affect the collection of state taxes.3    As all requirements for satisfying 11 U.S.C. 547(b) were met, the Court affirmed the District Court's decision resulting in avoidance of the tax certificate sale as a voidable preference.1 511 U.S. 531, 114 S.Ct. 1757, 128 L.Ed.2d 556 (1994)↩2 Id. n.3↩3 In re Hechinger Inv. Co. of Del., 335 F.3d 243, 247 n.1 (3rd Cir. 2003)↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 [email protected]://hillsboroughbankruptcy.com

The Social Security Administration (SSA) administers two programs which provide disability benefits for qualified applicants in New Jersey and Pennsylvania: Social Security Disability Insurance (SSDI), which is based on earned “work credits,” and Supplemental Security Income (SSI), which is intended for low-income applicants who do not have a work history. While disability benefits provide essential […] The post How to Get Approved for Disability the First Time in Pennsylvania or NJ appeared first on .

By Stephanie Pagones | Published September 10, 2019 | Transportation | FOX BusinessManhattan federal prosecutors are probing possible lending fraud in the New York City taxi industry, according to a report.The Southern District of New York has been investigating possible crimes, such as bank, mail and wire fraud, over the past month in the wake of a string of suicides involving cabbies who were bogged down by heavy debt related to the ever-increasing cost of taxi medallions, The New York Times reported, citing sources with knowledge of the inquiry.A U.S. Attorney's Office representative declined to comment to the Times.The cost of a taxi medallion rose from $200,000 in 2002 to $1 million in 2014, the report states, while industry heads or medallion brokers used questionable lending tactics or provided their clients “insufficient or unclear information,” according to and Executive Summary released this summer by the City of New York pursuant to a 45-day review into the industry’s methods.As much as 95 percent of the city’s taxi drivers are immigrants, the summary states, many of whom speak English as a second language.“For current drivers, the largest single issue they face is an unaffordable level of debt. The average median debt owed by surveyed drivers is approximately $500,000,” according to the city record. “[Fifty-one percent] of surveyed drivers stated they struggle to pay their monthly bills and 26% stated they are considering bankruptcy.”In fact, over 900 livery cab drivers have declared bankruptcy, the Times reported.The Times interviewed an immigrant from Bangladesh who bought his taxi medallion in 2014 and signed a loan that required him to pay $1.7 million, even though his annual income was only about $30,000. He told the Times that he did not understand the terms of his loan, according to the report.New York Attorney General Letitia James announced in May she would be conducting her own review of the matter.https://www.foxbusiness.com/features/federal-prosecutors-probing-nyc-taxi-industry-wake-livery-driver-suicides

You are likely reading this article because you have a monthly car payment and other bills you are having trouble paying, and you are considering filing bankruptcy. You are struggling but want to keep your car, and have heard that filing a bankruptcy petition entitles you to modify your car loan and pay less for your car than you promised to pay when you purchased it. This is true, if certain conditions are met. When you file a Chapter 13 petition, “cram down” may be available. Cram down allows you to pay only what the car is worth, not what you owe on your loan (if greater), and allows you to pay it through your 3 or 5 year Chapter 13 plan, often at a more favorable interest rate. When you file a Chapter 7 bankruptcy petition, cram down is not available, however, you may be able to pay less for your car and keep it using either Redemption or Reaffirmation. Redeeming a Car in Chapter 7 Bankruptcy The Bankruptcy Code provides that a Chapter 7 debtor can “redeem” his or her car by paying the creditor what the car is currently worth. The downside is that this must be paid in a lump sum. While this may seem on its face to be impractical, considering that in theory folks file for bankruptcy because they do not have enough money to pay their bills, actually, redemption is commonly used when the car’s current value is fairly low and the possibility of the debtor obtaining another car at that price is small. As far as valuation of the car for redemption purposes goes, your attorney can assist you with assessing the condition of your car and negotiating a mutually acceptable value with your creditor. Reaffirmation of an Auto Loan in Chapter 7 Bankruptcy If a Chapter 7 debtor is unable to come up with a lump-sum payment, or, if the debtor has “equity” in the vehicle (i.e., owes less than what the car is worth), the debtor might consider “reaffirming” the debt in order to keep the car. Reaffirmation requires the execution of a reaffirmation agreement between the debtor and the creditor which sets forth the terms of the loan going forward, and the debtor’s attorney must review the agreement and sign off on it otherwise it is subject to the scrutiny of the bankruptcy court. Often your attorney can obtain more favorable loan terms under the reaffirmation agreement than your original loan terms, by negotiating with the creditor over the length of the loan, the interest rate, and the amount of the monthly payment. Please take note of this important caveat:  this article is not legal advice, nor is it intended to be legal advice.  The purpose of this article is merely to illustrate the possible advantages of filing a Chapter 7 bankruptcy petition and a Chapter 7 debtor’s options of redemption and reaffirmation.  These are but two ways in which the Bankruptcy Code can be a powerful tool for an honest but unfortunate debtor, when utilized fully. An experienced bankruptcy attorney can guide you through the intricacies of redemption and reaffirmation and ensure that you pay only what you need to pay for your car and no more. Our office has successfully negotiated many car redemptions and reaffirmations.  For a free consultation, contact us here or give us a call at 215-515-5046.   The post How To Keep Your Car: Chapter 7 Redemption and Reaffirmation appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

What to Expect at Your Bankruptcy Hearing For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.”  (We almost never actually have creditors show up. We can also call it your “trustee hearing.”) Here’s a video that explains where to go, best places to park, what to bring and what questions […] The post Announcement: What to Expect at Your Bankruptcy Hearing by Robert Weed appeared first on Robert Weed - AE.

Social Security survivor benefits are benefits provided to eligible widows and widowers by the Social Security Administration (SSA) after a spouse passes away. In order to qualify for survivor benefits, you must fall within certain age limits, in addition to meeting other criteria. For example, some surviving spouses can begin to receive benefits at age […] The post How Are Social Security Survivor Benefits Calculated in PA and NJ? appeared first on .

While traffic tickets may feel inconvenient, ignoring them can wreak havoc on your driver’s license, raise your auto insurance and even lead to more serious charges. Don’t ignore the ticket! You must act within thirty days to avoid suspension of your license. Here, Maryland traffic violation attorney Jeffrey Scholnick provides an overview of instances when asking for a trial to dispute the ticket is recommended (most of the time). Don’t Just Pay Your Traffic Ticket! If you have never received a traffic ticket before, and you receive a ticket for a minor offense, it is recommended you appear in court. Rather than receive points by paying the ticket, a Judge is very likely to reduce the fine and give you Probation before Judgment (PBJ) if you have a good driving record. PBJ is your main goal because it means that you do not have any points and your auto insurance rates will not increase due to your ticket. When appearing in front of the Judge, it is important to tell the truth. Judges can sense when a Defendant is lying and will quickly decide to penalize the fibbing fool. While some people believe that an honest excuse or a claim of ignorance will hurt you, it is best to tell the truth. Particularly if this is a first offense, a Judge will give you a “mulligan.” There is an old saying among lawyers that applies here: “The worst truth is better than a good lie.” If you are pleading guilty or guilty with an explanation and have a reasonable excuse, the Judge will usually take pity on a first offender or someone who hasn’t had a ticket in a long time. When you go to Court, don’t ask for a trial if you really don’t have a defense. Look at the law with which you are charged so that you can see if you have a defense. If you don’t have a good defense, don’t waste the Judge’s time. The Judge will have many other cases that day and won’t appreciate theatrics. You are not Perry Mason and, if you are Perry Mason, Traffic Court is not the place to prove your acting skills.  Plead guilty with an explanation.  But, if the Officer does not show up, or you have a good defense, then plead “not guilty” and make the Officer prove their case. Never, ever, ever, ever (add additional “ever” 100 times) lie about your driving record. That big box on the Judge’s desk is not a T.V. set. It is a computer that can access your record. The quickest way to get ALL of the points and a $500 fine is to tell the Judge that you don’t have a recent ticket when you were in court a year ago. Judge’s hate liars! If You Can’t go to Court, You Can Send an Attorney Unlike offenses that include the possibility of jail time, you do not have to go to Court for speeding tickets. If you have a business trip or a vacation scheduled, you can have an attorney go on your behalf and defend you or obtain a PBJ or reduced sentence. If you can’t make the trial and can’t find an attorney, then pre-pay the ticket and ask for a trial date. The worst mistake is failing to show up in Court or neglecting to make arrangements before Court because you will then have a suspended license. This will lead to even more significant problems. Driving on a Suspended License is an offense for which you could receive a prison sentence. Lastly, if a police officer does not appear in court on your new court date, the case will be dismissed. Most Importantly, Do Not Forget to Send in Your Request for Trial or Your Money In the old days, if you threw the ticket the Officer wrote into your glove compartment, you would get a trial date. However, this rule has changed. Now, you must either pay the fine (and get the points) or complete and send in the bottom right portion of the ticket to the Annapolis address on that part of the ticket. Do nothing and, after thirty days, your license is suspended. When you are sending in that bottom portion of the ticket, you have a choice to: (1) pay the ticket; (2) plead guilty and ask for a hearing on mitigating circumstances to reduce the penalty; or (3) ask for a trial. If you are not paying, you might as well ask for a trial. Then, if the Officer doesn’t come to Court, the charges are dropped. If the Officer comes to Court, but can’t find his notes or his ticket, the charges are dismissed. Assuming you were polite and cooperative, you can ask the Officer if you acted appropriately and this will help you in the result. Judges like drivers who don’t make Officers’ jobs tough over minor traffic offenses. Discuss Your Traffic Ticket with Experienced Traffic Violation Attorney Jeffrey Scholnick While everyone makes a mistake on the road from time to time, and the inconvenient traffic ticket you receive for it may be justified, there are also plenty of instances in which an individual may be able to fight their traffic ticket and win. While traffic violations and instances where a traffic ticket requires you to go to court vary on a case-by-case basis, do not hesitate to contact traffic violation attorney Jeffrey Scholnick, who can go over your case with you in detail and determine whether or not it is viable to go to court.The post Understanding Whether You Should Pay Your Traffic Ticket or Go to Court first appeared on Scholnick Law.

Bankruptcy Filings are on the IncreaseA recent article in Yahoo Finance noted that bankruptcy filings are on the increase (https://finance.yahoo.com/news/2019-is-the-first-time-in-in-8-years-that-bankruptcy-filings-are-projected-to-rise-abi-221249707.html ; producer is Yvette Killian).The article states that according to the American Bankruptcy Institute, U.S. bankruptcy filings in July 2019 were up 3% from the same time a year ago. The article continued to state that “bankruptcy filings are on the rise as Americans pile up more debt. The latest ABI data pegs household debt near $14 trillion, which is $1 trillion more than the 2008 Great Recession peak.”At Shenwick & Associates we have been extremely busy this summer with bankruptcy filings and workouts for both individuals and businesses, and we expect this trend to continue in 2019 and 2020 given the rise in debt usage.In Jim Shenwick’s  opinion  in New York , we are seeing a “Tale of Two Cities”  in that a segment of the population is doing extremely well, but many sectors in the city are hurting and at risk.Uber, Via and Lyft have hurt taxi medallion owners. Last month's taxi medallion sales were at approximately $130,000 per medallion, down from $1,300,000 three years ago. Politicians have not successfully addressed these issues to date.Vanguard has hurt the hedge fund industry, with many funds closing.Amazon is hurting retail and many retail stores in the city are closing, evidenced by the vacant storefronts we see on each block.Restaurants have been hurt and continue to be hurt by the increase in the minimum wage to $15 per hour, which has squeezed the bottom line.   Many restaurants have closed or filed for bankruptcy as they are no longer profitable. Restaurant owners have also individually filed bankruptcy due to property lease guarantees they may have signed. Many young people are overburdened by student loans and have substantial credit card debt.Bankruptcy or out of court workouts may be a solution for some of the above-mentioned problems faced by individuals and businesses, and Jim Shenwick 212-541-6224 [email protected]  can assist with those issues. James ShenwickShenwick & Associates122 East 42nd St. (42nd & Lex. Ave SW Corner)Ste 620New York, N.Y. 10168Bankruptcy & Creditor’s Rights“We always appreciate referrals”(W) 212-541-6224 ext. 113Cell Phone: 917-363-3391Fax 646-218-4600 E Mail: [email protected]: http://jshenwick.googlepages.comBlog: http://shenwick.blogspot.comLinkedIn: http://www.linkedin.com/in/jamesshenwick

According to the AARP, about 6 million Americans currently receive survivor benefits, which are benefits paid by the Social Security Administration (SSA) to eligible widows, widowers, and other family members after a wage earner passes away. Survivor benefits are intended to help compensate for some of the decedent’s wages, easing the financial pressure on surviving […] The post Can a Widow Collect Her Husband’s Social Security in Pennsylvania or NJ? appeared first on .

New Bankruptcy Towing and Storage Scam Don sent me today a letter offering him a $1000 for the car he’s giving up as part of his bankruptcy. (He owes way more than the car is worth.) An outfit calling itself Towing and Storage offers to give him $1000 to avoid “the hassle” of dealing with […] The post Bankruptcy Towing and Storage Scam by Robert Weed appeared first on Robert Weed - AE.