By Sergio Cabrera and Carolyn ProtzA new narrative about the decline of the iconic taxi has emerged. In this new perspective, the entry of Uber and Lyft into the New York City taxi market was not the catalyst for the decline of taxi medallion values. Rather, the medallion lending industry ruined the value of this unique investment.The real scandal, however, is not just that regulators turned a blind eye to predatory lending, but how the Taxi and Limousine Commission, as well as elected officials, played a pivotal role in taxis’demise. And it was no accident.In 2010, the TLC had in hand an internal report predicting the collapse of the lending market because loans were unsustainable. But the agency—even though it knew how fragile the situation was—ignored its own rules, flooded the streets with additional vehicles and streamlined the processing of new drivers, cars and bases competing with taxis.In essence, the city lit a match to a combustible situation. It was regulators’ malfeasance that allowed the Ubers to come in with little or no financial barrier to entry—exacerbating the danger created by lending now being excoriated.The TLC was created in 1971 with a mandate to ensure the well-being of the iconic yellow taxi. TLC rule 52-04(a)(4) states: “Establish and enforce standards to ensure all Licensees are and remain financially stable.” This mandate was consciously ignored.Meera Joshi, who chaired the TLC throughout Uber’s flooding of city streets with vehicles, now says she was worried about medallion costs and lending but was pushed to prioritize other matters. Like what? Adding 85,000 vehicles? Joshi ignored, bent and changed many of her own rules that, if respected, would have prevented this destructive onslaught.Lest we forget, the TLC—according to former Chairman Chris Lynn—has the final say over all medallion transactions, and Joshi was its general counsel when the 2014 minimum auction bid of $850,000 for a medallion was established.Some examples stand out. In April, 2017, the TLC held a hearing on industry economics that went on for six hours with medallion owners telling TLC commissioners how horrific their lives had become.Yet all that came out of it was an option for tipping of app drivers.The following year, amid owner and driver suicides, the willfully blind TLC commissioned a study of driver income. Yet the academics tasked with the study were explicitly told to exclude the yellow-cab industry and to not consider a cap on for-hire vehicles. The study led the city to establish a minimum wage for drivers of for-hire vehicles.Perhaps the most egregious display of favoritism was how the mayor and the City Council mishandled Uber and Lyft’s resistance to meeting the wheelchair-accessibility requirements mandated for taxis. When push came to shove, the city caved and allowed a company-sponsored plan with no accessible-vehicle mandate.The tragic bankruptcies and foreclosures being highlighted today were unknown prior to the influx of Ubers. The Ubers’ catalytic role, and the subsequent shameful enabling of the city, is unmistakable.In 1971 taxis were making 500,000 daily trips. Today they are doing 250,000 while the invaders are doing 769,000. Uber itself has lost billions of dollars undercutting competitors through predatory pricing to capture market share. This cannot be airbrushed out of the picture.The public sector needs to be held to account for its part in the threatened demise of taxis and the wanton harm done to thousands of defrauded immigrants who came to this country in search of a better life.Sergio Cabrera and Carolyn Protz are medallion owners and members of Taxi Medallion Owner Driver Association.

By Tyler DurdenFaced with crushing student loans and little ability to repay them, some Americans have taken to fleeing the country in order to escape their debt, according to CNBC's Annie Nova. "It’s kind of like, if a tree falls in the woods and no one hears it, does it really exist?" said 29-year-old Chad Haag, who relocated from Colorado to a jungle in India to avoid paying his $20,000 loan balance. "I've put America behind me," said Haag - 9,000 miles away from home. Today he lives in a concrete house in the village of Uchakkada for $50 a month. His backyard is filled with coconut trees and chickens. “I saw four elephants just yesterday,” he said, adding that he hopes never to set foot in a Walmart again. -CNBC That said, it hasn't all been smooth sailing - including finding acceptable loos to poo in. "Some toilets here are holes in the ground you squat over," said Hagg, who added that he recently ate spoiled goat meat at a local restaurant, landing him in the emergency room. Still, he insists "I have a higher standard of living in a Third World country than I would in America, because of my student loans.""If you’re not making a living wage, $20,000 in debt is devastating," said Haag, who struggled to come up with the $300 a month he owed upon graduating from the University of Northern Colorado in 2011. Hagg's first postgraduate job was working on-again, off-again hours unloading trucks and constructing toy rockets on an assembly line.While there is no official data on how many people have fled the United States to get out of student debt, there's ample evidence that people are heading for the hills based on Reddit posts, Facebook groups, and financial advice doled out on various websites. "It may be an issue we see an uptick in if the trends keep up," said Barmak Nassirian, director of federal relations at the American Association of State Colleges and Universities. With outstanding student debt projected to exceed $2 billion by 2022, the average graduate owes around $30,000, up from an inflation-adjusted $16,000 in the 1990s. As CNBC notes, salaries for those with new bachelor degrees have remained virtually flat over the last several decades.In Hagg's case, after his stints at the toy factory and loading trucks, he went back to school to pursue a master's degree in comparative literature at the University of Colorado Boulder, after which he tried his hand at being a low-paid adjunct professor. Haag had some hope restored when he landed full-time work as a medical courier in Denver, delivering urine and blood samples to hospitals. However, he was disappointed to find that he brought home just $1,700 a month. He had little money left over after he paid his student loan bill. He couldn’t afford an apartment in the city, where rents have been rising sharply. He lived with his mother and rarely went out with friends. “I couldn’t make the math work in America,” Haag said. -CNBC Last year, Hagg married an Indian citizen who teaches at a local college. He is currently living on a five-year spousal visa. Not so fast? While the Department of Education typically can't garnish someone's wages if they work for a company outside of the United States, they can take up to 15% of Social Security benefits when they start collecting. "The loans do not disappear when you become an expat," said student loan expert Mark Kantrowitz. Also of note, in February of 2018 the IRS began alerting the US State Department of extremely delinquent debtors, while the State Department has warned those with "seriously delinquent tax debt" that their passports may be revoked.  Other tales of bailing out 39-year-old Chad Albright graduated from Millersville University in Pennsylvania in 2007 after studying communications and history, and somehow couldn't find a job."I went to interview after interview after interview," said Albright. Still, he had $30,000 in student loans and was soon faced with a monthly bill of around $400. Unable to support himself, he moved in with his parents in Lancaster and worked as a pizza deliveryman. “There was anger,” Albright said. “I couldn’t believe I couldn’t find a job in America.” He fell behind on his student loans and feared the Education Department would garnish his wages. Albright’s credit score tanked as a result of his repayment troubles, making it difficult for him to buy a car and to land certain jobs, since some employers now pull credit reports. “I feel that college ruined my life,” Albright said. Seeing no future for himself in the United States, he decided to move to China in 2011. In the city of Zhongshan, he discovered he loved teaching students English. Unlike when he was delivering greasy boxes of pizza, he found his work meaningful and fulfilling. -CNBC A few years after moving to China to earn $1,000 a month, Albright moved to Ukraine, where he is now a permanent resident. He has taught in Kiev and now Odessa, a port city on the Black Sea. "I am much happier in Ukraine," says Albright, who has no plans to return to the United States andhasn't checked his student loan account in almost eight years. Another student-loan escapee, Katrina Williams, couldn't find a job after graduating from the University of South Alabama in 2013 with a $700 per month loan bill. "I had to take whatever I could so I could pay on the loans," said Williams, who took on jobs as a Starbucks Barista, a substitute teacher, a USPS delivery woman, and a Sears call center employee. "I was working every day," said Williams. "I had enough money left over to put gas in the car." Williams had a friend who had moved to Japan, and the idea of leaving the United States grew on her. In 2015, she moved to Chiba, also to teach English to students. “I love my work,” she said. Her job sponsors her visa. She has her own apartment now and doesn’t have to work seven days a week anymore. Yet Williams misses her relationships back home; she hasn’t been able to make many friends in Japan. She thinks about returning to the U.S., but knows she will be welcomed back by wage garnishments and endless calls from collection agencies. Her student debt has ballooned to well over $100,000. “I wish I could come back to America and not be scared,” she said. -CNBC According to Nassirian, there are far more reasonable ways of dealing with student debt - including entering into the government's income-based repayment plans.At the end of the day, perhaps Student Loan Justice founder Alan Collinge has a point when he said that "Any rational person who learns that people are fleeing the country as a result of their student loan debt will conclude that something has gone horribly awry with this lending system."Copyright ©2009-2019 ZeroHedge.com/ABC Media, LTD

Divorce. Most American couples swear “till death do us part”, but over 40% will eventually decide to break their vows.  Divorce is often a messy business, economically and legally. Most couple’s finances are intimately entangled, including many shared debts incurred with the assumption of two incomes. A partner’s irresponsible spending often plays a leading role in the decision to divorce, and trying to maintain the spending of a marital lifestyle after divorce can lead to rapidly mounting debt. This guide will explain what role bankruptcy can play to resolve personal financial crises leading to or stemming from a divorce. This guide is written for educational purposes only. It is not a substitute for personal legal counsel and reading it does not create an attorney-client relationship with The Law Offices of David M. Offen. Should I file for bankruptcy or divorce first? There is no proper order for proceeding with bankruptcy and divorce, and which should be handled first will depend on your personal situation, as well as the relationship with your spouse. It is worth noting that while you can file for bankruptcy during a divorce, in most situations it is inadvisable as the distribution of marital assets could be frozen until the bankruptcy matter is settled, or until relief from the automatic stay is granted. Filing For Bankruptcy Before Divorce The Advantage of a Joint Bankruptcy Filing There are several advantages to filing bankruptcy while still married to your spouse. One of the greatest advantages of filing jointly for bankruptcy is the ability to stack bankruptcy exemptions.  That means that on jointly owned property, a married couple can each claim the maximum exemption allowable by law. Let’s take a look at how this works. Federal bankruptcy exemptions permit $13,400 in household goods. If you were to file bankruptcy as a married couple, this exemption would stack, and you could keep $26,800 in household goods from your marital home. This same principle would apply to jointly owned real estate and a jointly owned automobile. Settle Marital Debts – Simplify Your Divorce Besides the benefits of stackable exemptions, filing bankruptcy before a divorce can also save both you and your spouse a great deal of time and money during the divorce. Just as assets have to be split between spouses, jointly held debts have to be divided between former spouses during divorce. Even if you and your spouse are not contesting the divorce, this process can make divorce significantly more expensive. Motions and counter-motions over delinquent credit cards and loan payments can drag a divorce out for months, even years. By settling the matter of debt before filing bankruptcy, couples who wish to amicably split their affairs and have large outstanding debt would benefit most from filing bankruptcy before their divorce.  The joint debt would be wiped out in a Chapter 7 Bankruptcy filing or combined in one affordable payment in a Chapter 13 Bankruptcy proceeding. Reduce Stress – A Chance to Save Your Marriage Divorce is no small decision to make, and a successful bankruptcy filing may have you and your spouse considering if that’s really the right option. Social psychologists have long described the phenomenon of misattribution of arousal; that is when a person mistakes the cause of their emotional state. A classic example is Aron and Dutton’s bridge experiment. Men who were asked to cross a river on a swaying, narrow rope bridge were much more likely to report feeling a special connection to a researcher met on the opposite side than those who crossed a wide, stable bridge and met the same researcher. Yet the men consistently attributed their feelings to the person, not the scary bridge.  So what does this have to do with bankruptcy? Think of all the stress you feel from being in debt. Aggressive bill collectors. Endless letters from creditors, collection calls at all times of the day. Plummeting credit scores, credit cards rejected, savings accounts running close to zero. It gets your heart racing. Whether it’s anger or depression, fear or anxiety, debt triggers extreme emotions. Now imagine you have an argument with your spouse after checking the day’s mail, or after her card was rejected at the gas pump. Misattribution of arousal makes it very likely that during your argument, your subconscious mind will blame all of your intense feelings on her, not the real source—the debt. While some couples simply need to go their separate ways,  solving the debt problem may make you rethink your relationship and reconsider filing for divorce.  One of the most common causes of divorce is financial. Filing for Bankruptcy After Divorce Income Limits and Means Tests If the marital debt is ruining your life and marriage, it’s reasonable to seek a divorce and bankruptcy. However, there are income limits for filing Chapter 7 bankruptcy, and you likely don’t want to be financially linked to your spouse for the next 3 to 5 years, so filing a Chapter 13 bankruptcy may not be the best approach in some cases. If your joint income is too high to file for Chapter 7, waiting until your income is judged by itself and your divorce-incurred obligations create less disposable income may allow you to qualify for debt relief through Chapter 7.  On the other hand, if the number of people living in the house is larger now than after a divorce, then filing bankruptcy now would probably be better. If you have questions about debt limits and means tests, you should consult a local bankruptcy attorney who can help guide you as to the best approach in your family situation. Limitations Not all debts are created equal. Some debts, known as priority debts, cannot be expunged or erased. This includes unpaid alimony or spousal support, some unpaid taxes, and Federal student loans. If you file for bankruptcy after divorce, these debts will not just go away. You should also consider the possibility that your ex-spouse decides not to pay their share of marital debts assigned by the divorce court. Creditors will be more concerned with the names on a loan or credit card than with family court decisions and may come after you if your spouse chooses not to pay. Filing for bankruptcy before divorce effectively prevents this situation. Questions About Bankruptcy and Divorce? David M. Offen has helped over 10,000 clients through the bankruptcy process during his career. As a leading Philadelphia bankruptcy attorney, he will not shy away from even the most challenging cases. Call the Law Offices of David M. Offen in Philadelphia for a free bankruptcy consultation 215-625-9600. The post A Guide To Divorce and Bankruptcy appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

You can be denied a bankruptcy discharge. There are limits to bankruptcy, such as how frequently you can receive a discharge   However, most of the reasons for bankruptcy being denied or dismissed are completely avoidable. These mistakes are often made when an individual tries to handle their bankruptcy without the assistance of a professional bankruptcy attorney. David M. Offen has spent over 20 years practicing bankruptcy law in Philadelphia and has helped more than 10,000 clients through the bankruptcy process. Call his offices today at (215) 625-9600 to schedule a free consultation. Mistakes That Could Get Your Bankruptcy Dismissed Fraud It might seem like a stretch to merely call fraud a mistake, but without access to legal counsel, it is all too easy to make choices that seem reasonable at the time, but are actually illegal–and could bar you from discharging your debt. Credit Card Fraud Credit cards are frequently wellsprings of debt leading into bankruptcy. Some people will abuse their credit by utilizing the entire credit line on multiple credit cards, knowing they could never possibly pay back what they charged. Worse still, some people may attempt to buy luxury goods on credit close to filing bankruptcy.   Luxury charges are generally assessed as any charges of greater than $725 which are not necessary for support or maintenance. While creditors can challenge any charges by asserting there was fraud, luxury purchases made within 90 days of filing are presumed to be non-dischargeable. Credit card fraud is not limited to luxury goods. Running up unreasonable charges then suddenly filing bankruptcy to clear them could be considered fraudulent even if those purchases were not luxuries, and a court might dismiss your bankruptcy case if these behaviors are unearthed and challenged by your creditors. Charges made within 90 days of a bankruptcy filing are particularly suspect. Cash advances within 70 days are likewise highly suspect. If you take more than $1000 total in the 70 days before filing from one creditor, these advances will be presumed to be non-dischargeable. Hiding or Selling Assets Another major bankruptcy no-no is a fraudulent transfer. This means giving away things that should be included in your bankruptcy either as gifts or selling well below market value in an attempt to hide them from your creditors. As a general rule, you shouldn’t sell or gift anything of value, especially jewelry or luxury goods, before filing bankruptcy. You can learn much more about this kind of fraud and how to avoid it in our post on fraudulent conveyance. Any kind of fraud can get your bankruptcy case dismissed altogether, and a creditor could argue to exclude what you fraudulently owe them from the bankruptcy discharge. While common sense can help you avoid most fraud, there are many technically fraudulent charges and transfers that a non-lawyer might not recognize as fraud. Your best bet to avoid having your bankruptcy dismissed for fraud is to let a bankruptcy attorney handle your case. He or she can not only counsel you to avoid making fraudulent charges but can also try to defend your spending from claims of fraud if a creditor challenges your bankruptcy. Not Completing Mandatory Education With few exceptions, you will be required to attend credit counseling session via telephone or computer before filing for bankruptcy and a personal finance course known as Debtor Education before the court will grant a bankruptcy discharge. People filing Chapter 7 and Chapter 13 will both be required to take these courses through an approved agency. For people filing Chapter 7, you will be required to present a debtor’s education certificate of completion within 60 days of your first meeting of creditors. For a Chapter 13 Bankruptcy, it must be presented before the final installment of your payment plan is due. While there are ways to file for short extensions in incredible circumstances, you will need to complete these courses eventually. Failing to take credit counseling will have your case dismissed, and failing to take debtors education will cause your case to close without a discharge. You Declared Bankruptcy Too Recently There are set-in-stone limits on how frequently you can receive a bankruptcy discharge. Minimum Waiting Period after Chapter 7: You must wait at least 8 years before you can file for Chapter 7 bankruptcy again. You must wait at least four years before filing a Chapter 13 bankruptcy. There are exceptions to this rule depending on what your goal is when you file Chapter 13. Minimum Waiting Period after Chapter 13: You must wait two years before filing Chapter 13 again. You must wait 6 years to file a Chapter 7 bankruptcy if you failed to repay at least 70% of the Chapter 13 payment plan.  If you paid more than 70%, you could file Chapter 7 bankruptcy at that point. Paperwork and Procedural Issues Bankruptcy is complicated. The person preparing a bankruptcy has to sort through hundreds, perhaps even thousands of pages of financial documents and prepare a filing that is complete and exact–not a single debt excluded, all income and expenses accounted for. When people try to prepare these forms on their own, they rarely do so properly. Any paperwork or procedural mistakes could result in the court dismissing your bankruptcy, ending the protection of an automatic stay and leaving you once again at the mercy of creditors. Choosing The Best Bankruptcy Attorney Your bankruptcy case can be dismissed and your discharge denied for a variety of reasons, from simple mistakes or omissions to strict procedural rules and missed deadlines. The best way to avoid this is to choose an experienced and knowledgeable bankruptcy attorney to handle your case from start to finish. With over 20 years of experience in bankruptcy law in Philadelphia, The Law Offices of David M. Offen can help you move forward towards a brighter financial future. Call (215) 625-9600 to schedule a free consultation and find out how you can quickly improve your financial life. The post Can A Bankruptcy Discharge Be Denied? appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

Bankruptcy is a chance to start over and begin afresh. Whether your debts stemmed from a medical emergency, a layoff,  poor financial planning, a messy divorce, or some other personal catastrophe, the time after your discharge is a clean financial slate. After their discharge, many people wonder what they should do now that they’re free of crushing debt. These tips can help you make the most of your second chance. If you’re looking to speak to someone more in-depth about life after bankruptcy, call The Law Offices of David M. Offen at 215-625-9600 in Philadelphia, Pennsylvania for a free consultation. Keep All of Your Bankruptcy Paperwork After your discharge, you will need to stay vigilant against zombies–zombie debt, that is. Like the stumbling ghouls of the Walking Dead, old debts can suddenly take on new life thanks to predatory debt buyers. Full and accurate records are the best way to put zombie debts back in the ground. A legally discharged debt is no longer collectible. Your old creditors no longer have a right to take collection action on delinquent accounts, even if they had previously secured a judgment against you. Unfortunately, that won’t stop predatory debt buyers from trying to make you pay. How To Stop Predatory Debt Collectors Debt scavengers often bet on two fundamental assumptions. Primarily, debt buyers wager that many people with old debts won’t know their rights. If they act like legitimate debt collectors, these sharks who bought an old account for pennies on the dollar can often intimidate vulnerable people into paying on an account they can no longer be held liable for. While many of these types of debt collectors will only threaten to sue over old debt, the worst actually will sue, betting that most people won’t respond. When the former debtor fails to assert their discharge as an affirmative defense, the debt buyers may even be able to win summary judgment, fully reviving the zombie debt. The best defense to these kinds of unscrupulous debt buyers are the records of your bankruptcy. Armed with the court listing of discharged accounts, you can confidently tell any collectors who call that you will not pay, and remind them that they are violating the Federal Fair Debt Collection Practices Act. This should be enough to scare off all but the most determined debt buyers, but there is always a chance they could sue seeking judgment. If that happens, it is in your best interest to secure the services of an attorney (ideally the attorney who processed your bankruptcy petition) and respond to their lawsuit.  The Attorney who filed your Bankruptcy will probably file a Complaint or Motion with the Bankruptcy to ask for sanctions against the party who is going after you for violating the Bankruptcy D Ischarge Order. List Your Priority Debts A bankruptcy order doesn’t tell you which debts remain—only what was discharged. It is your responsibility to track any debts that still need to be paid. Child support, recent taxes, and federal school loans are all priority debts, and can’t be discharged. Unless you had enough liquidated capital to pay these off during your Chapter 7 bankruptcy, such debts will still need to be paid. Any debts you re-assumed during the Bankruptcy will also need to be paid. Keeping on top of any payments you still need to make is both a great credit builder and an important financial strategy to prevent debt from building up a second time Verify Liens and Begin Paying Liens come in two varieties. A judgment can be perfected against your property, creating a lien against your home or other real estates that must be satisfied if or when the property is sold. These liens have a deleterious effect on your credit. If there was an outstanding judgment when you filed for bankruptcy, then that debt is discharged like all other non-priority creditors. But if the debt was already perfected as a property lien, then you will still be liable to pay. This is because liens are technically liabilities entered against your property, and the bankruptcy only discharged personal debts. In some cases, judgment liens can be discharged in bankruptcy by what is known as a Motion to Avoid a judicial lien. You should verify the balance of judgment liens and begin paying as soon as possible to set yourself on the track to better credit. Mortgages and auto loans are also technically liens, secured by the collateral of your home or car. After the bankruptcy is discharged and the automatic stay has ended, you should verify the outstanding balance on any home or auto loans and continue making the appropriate payments. Re-establish Banking and Bill Payments Online banking features, automated bill payments, and some of your accounts may have been frozen during the bankruptcy process. This is much more likely to happen if your bank was also one of your creditors. After your debt has been discharged, you should be able to verify your successful bankruptcy and reinitialize full access to your bank accounts. If you previously utilized automated bill payments and other online banking features, now is the time to adjust your settings for discharged accounts   Paying bills on time and limiting your credit utilization is one of the most important acts for rebuilding your credit score.  If you only use a small amount of your available credit, that will help your credit score to increase. Online bill pay can ensure that important bills are paid on time and in full. Start Building Your Savings If you had enough debt to justify a bankruptcy, it is likely you haven’t been able to put as much money towards personal savings as you should have been. Now is the time to start securing a nest egg for future retirement, as well as personal discretionary savings for emergencies. Automatic deductions for retirement and personal savings are a great place to start. Check to see if your employer might offer for retirement plans, and put as much towards personal savings as you reasonably can until you have built up a comfortable safety net. The goal is to set yourself in a position where financial emergencies, like a car accident or an Emergency Room visit, can be paid off with a withdrawal from your savings instead of creating more debt. When to Check Your Credit Report It can take some time for credit agencies to update reports but keeping track of your credit is essential when rebuilding your credit profile. You should begin checking your report about three months after your bankruptcy discharge.   Rebuilding Your Credit Now that you’ve gotten yourself out of debt, it’s time to start rebuilding your credit. There are three steps you can take to help get your credit score moving in the right direction. Find out how to pay off your nondischargeable debts. After you file, there are some debts that will be nondischargeable like student loans, child support or alimony. It is important to make a plan to pay down these debts with your creditors. In the case of student loans, try to avoid deferments which can cause interest to accumulate and the debt to become unmanageable. Create a record of on-time payments. Using a secured credit card or small vehicle loan can go a long way to showing your capability to repay loans. Avoid unnecessary debt. This one feels like a no brainer but it can be one of the biggest pitfalls for post-discharge debtors. Don’t go out and buy an expensive car and take out a large new loan. Incurring this type of debt is usually not a wise move. Don’t Fall For Credit Repair Services When it comes to repairing your credit, there are no quick fixes. Post-discharge debtors may receive calls and solicitations from “credit repair” companies, but this is a scam. The best way to repair your credit is slowly over time.   Your Home and Property After Bankruptcy If you’re keeping your home, you must come up with a way to make timely payments on your property. If you fall behind on payments, the bank can begin foreclosure proceedings on your home. HOA and COA Fees on a Surrendered Home Any charges that were incurred before you filed for bankruptcy will have been discharged. However, you are responsible for any Homeowner Association and Condominium Association fees that accrue after your discharge.  In many cases, if you keep the home or property, you will still need to pay pre-petition fees or the Association will be able to obtain a lien against your property. Until the deed has been transferred to a new owner, you are accountable for all fees incurred so it makes sense to try and remain on the property for as long as you are able. It is also important to make a plan for how you will handle these payments until the property can be transferred. The association could try to collect payment from you should you fail to pay them.     Your Car Post-Discharge If you’re keeping your vehicle after bankruptcy, you must continue to make timely payments. If not, your car could be repossessed. If you’re looking to buy a car after bankruptcy, things could be a little tricky. As mentioned above, taking on as little debt as possible post-discharge is really advisable. But if buying a car is essential, there are a few things you should look for. Try to pay cash and avoid loans. If buying a car on credit is the only option, keep your payments as low as possible. Avoid loans that extend more than three years. A car only depreciates in value and you may not want to be paying off a depreciating asset in six or seven years. Buy used. Again, a car depreciates in value the moment you drive it off the lot. It’s a bad investment that you may not be able to get out from under. Set Yourself Up For A Secure Future Having modest savings set aside, ideally, six months of living expenses could make a big difference in contributing to a more financially secure future. It may also make sense to update your will or have an attorney draft one. The lessons you learned from bankruptcy can be passed on to your spouse or children with a proper will, making sure they are provided for and that your savings are used wisely. Life post-discharge is full of possibilities, but it’s important to keep yourself accountable. Setting up a solid strategy and following through will ensure a happier and more financially secure future.       Need  More Bankruptcy Advice? The Law Offices of David M. Offen has been helping individuals and families through the bankruptcy process for more than 20 years. In that time he has helped over 10,000 clients by saving homes from foreclosure, stopping auto repossession, wiping out credit card bills, ending wage garnishments, unfreezing bank accounts and more. If you need help or information about how bankruptcy can make your life better in Pennsylvania, contact Attorney David M. Offen at 215-625-9600 for a free consultation. The post Life After Your Bankruptcy Discharge appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

While a highly unfortunate situation, sometimes innocent defendants find themselves facing criminal charges. Leaving your fate to a trial is not only expensive and stressful, but risky as well. What many individuals in this unfortunate case may not know is there are other ways to avoid facing conviction in addition to going to trial. Here, criminal defense attorney Jeffrey Scholnick explains how innocent defendants can handle criminal charges against them. Police Reports May Contain Imprecise Information Before any major decisions are made, the police report should be checked for accuracy. Sometimes, a police report may not include all of the important details of the case or hold some inaccuracy due to witness misstatements or factual errors. Due to the nature of witness statements and limited factual information, the contents of a police report do not always mean the case is going straight to trial. Waiting for the details of the police report to be proven by both the defense and the prosecution may clear up inaccurate or false witness statements or incident details. Communication Can Clear Up the Situation It is beneficial to hire a criminal defense attorney, such as Jeffrey Scholnick, early on in the investigation, as he can attempt to discuss the details of the case with the prosecution before a filing decision is made. Clear communication between the opposing sides about the details of the case can help alleviate confusion and potentially mitigate the situation before the case has to go to court. A Dismissal May Be an Option After a client meeting is completed and the essential facts of the case are collected, your defense attorney can decide whether or not to discuss with the prosecution the option of a dismissal. In a dismissal, the prosecution decides to drop the charges in the event that there is not enough valid or admissible information regarding the incident to press charges. In-Court Proceedings May End the Case In some instances, depending on the severity of the case, waiting out a preliminary hearing may be the best option. If the defense wins a pretrial motion or preliminary hearing, the prosecution may not decide to refile. There are a variety of instances where in-court proceedings may conclude a case. Being Patient May Be the Best Decision While the best legal decisions to make vary on a case-by-case basis, there may be instances where allowing your case to go to trial may be the best option, as it can take an extensive amount of time for the prosecution to investigate the case and realize that there is inaccurate or insufficient evidence to prove the defendant’s guilt. Because you are innocent until proven guilty, you may have to trust that, with the help of an experienced defense attorney, your innocence will be proven. Consult an Experienced Criminal Defense Attorney Today While a stressful and unwanted situation, being wrongly accused of a crime does not automatically mean you are going to be convicted. By hiring an experienced criminal defense attorney, such as attorney Jeffrey Scholnick, to represent you in your case, the inaccurate charges placed against you can be mitigated even before a trial may take place. If you have been wrongly convicted of a crime and seek representation from a dedicated criminal defense attorney to prove your innocence, contact The Law Offices of Jeffrey Scholnick today.The post How Do Innocent Defendants Handle Criminal Charges Against Them? first appeared on Scholnick Law.

Federal Bankruptcy Exemptions Increased for 2019 to Help Protect more of your Property when filing Bankruptcy in Philadelphia, Pennsylvania The Judicial Conference of the United States has just published the revised dollar amounts for Title 11 and Title 28 of the United States Code in the Federal Register. All dollar figures within the code have been adjusted by approximately.06% to account for cost of living increases. For families and small businesses filing bankruptcy, this change means thousands of dollars in additional assets will be protected as of April 1st, 2019. This update is particularly important for personal retirement savings, which will see an exemption increase of nearly $80,000. Updated Federal Bankruptcy Personal Exemptions to help you Effective 1 April 2019 522(d)(1) Interest in a Personal Residence: Increased from $23,675 to $25,150. 522(d)(2) Interest in a Motor Vehicle: Increased from $3,775 to $4,000. 522(d)(3) Household goods, including furniture, appliances, and art: Increased from $600 per item and not more than $12,625 to $625 per item and not more than $13,400. 522(d)(4) Jewelry: Increased from $1,600 to $1,700. 522(d)(5) Aggregate Interest in Other Property: Increased from $1,250 and up to $11,850 of any unused 522(d)(1) exemption to $1,325 and $12,575. 522(d)(6) Interest in tools, books, or other professional implements: Increased from $2,375 to $2,575. 522(d)(8) Interest in life insurance, inherited estates, or unmatured life insurance: Increased from $12,625 to $13,400 522(d)(11)(D) Compensation for bodily injury, not including pain and suffering or pecuniary damages: Increased from $23,675 to $25,150. 522(n) Retirement Accounts: Increased from $1,283,025 to $1,362,800 This is a summary of important changes. The complete notice can be found in the Federal Register (84 FR 3488, pp. 3488-3489 ) or viewed online through the Government Publishing Office. Exemptions Which are Raised to Reflect the Consumer Price Index Federal Legislation passed in 1994 stipulates that Title 11 US Code (better known as the Bankruptcy Code) be adjusted every three years starting from 1 April 1998 to reflect the Department of Labor’s Consumer Price Index. Per federal regulations, exact inflation adjustments are rounded to a multiple of $25. Benefit from the New 2019 Exemptions with Attorney David M. Offen If you are in the Philadelphia area, call the Law Offices of David M. Offen at (215) 625-9600 to schedule a free consultation. With over 20 years of practice in Bankruptcy law, Mr. Offen has helped over 10,000 clients navigate bankruptcy.   He has filed thousands of Chapter 7 cases as well as Chapter 13 cases and has discharged over $100,000,000 in debt. He can answer your questions and help you find the best path to get free of debt. Call today to get the right answers to your financial questions. He will advise you if Bankruptcy is best for you or if it is not your best move. Remember that knowledge is power. The more you know how to protect yourself from creditors, the better off you will be able to get your financial situation under control. The post US Bankruptcy Code: New 2019 Exemption Amounts appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

  Filing personal bankruptcy will be on public record but there is more you should know before making such an important decision. The prospect of filing for bankruptcy can often feel overwhelming and isolating. The Law Offices of David M. Offen help you to navigate these trying times and provide the services you need for a fresh start.     Though personal bankruptcy filings will be on public record, there is some good news: not everyone will easily be able to access your bankruptcy filing. Just because they are public does not grant the public full and easy access to your bankruptcy filings. In order to obtain information specific to your filings, a person would need to access a system known as PACER. The PACER program requires a person to register with the system and then charges a fee for each page obtained by the user. Because it can be relatively costly, the general public typically does not register for an account and therefore does not have easy access to your filing.   PACER is used most often by bankruptcy professionals, lenders, and anyone else who may have a specific need to see the details of prior bankruptcy cases. Who Will Know If I’ve Filed For Bankruptcy? As previously mentioned, bankruptcy professionals will usually be the only ones actively looking for bankruptcy information. However, there are a few instances where others may discover that you have filed. Obviously, creditors and co-debtors will receive direct notice when you have filed. In addition to creditors, anyone running a credit check will also be able to see if you have filed for bankruptcy. This means if you are applying for a job, trying to rent an apartment, or applying for credit, the people looking at your credit report will be able to see that you have filed for bankruptcy. An ex-spouse that receives child support will also be notified about your bankruptcy. During the time of notification, they may also be given instructions for how to proceed should you fail to continue to pay child support, as that is not a dischargeable debt.    Will My Employer Know If I’ve Filed For Bankruptcy?   Most employers will have no reason to obtain information about your decision to file. However, if your wages are being garnished by a creditor, your employer’s payroll department will be notified of your bankruptcy filing so that the garnishment can be immediately stopped. Your Lawyer will ask you to provide the name and contact information of the person in your payroll department so that creditors will no longer be able to garnish the wages from your payroll. Will My Bankruptcy Be Published In The Newspaper? It is possible for your bankruptcy filings to make it into the local paper. This will depend on the court where you will be filing and the local publishing practices in your area. Though news of your bankruptcy isn’t something a friend or family member could easily stumble upon, some courts do publish bankruptcy filings online. In addition, smaller jurisdictions in small cities sometimes publish bankruptcy filings in the local newspaper. If fear of publication is keeping you from moving forward, you may want to speak with someone from our office to discuss the best course of action and local publishing practices in your area. How Long Will Bankruptcy Stay on My Credit Report?   Typically, bankruptcy filings will stay on your credit report for an average of seven to ten years. This depends on whether you have filed Chapter 7 or Chapter 13. If you have filed Chapter 7, it will take about ten years before it is erased from your report. Typically it takes longer than Chapter 13 because the debt was not repaid over time. If you have filed Chapter 13 it will take about seven years.to ten years The shorter timeframe is due to the partial debt that you paid over the three to five-year payback period. You do not need to do anything specific to remove bankruptcy from your credit score. It will be deleted automatically based on the chapter you have filed for. Are There Any Benefits When Filing for Bankruptcy? Some people mistakenly believe that declaring bankruptcy is one of the worst things you can do to your finances. But in truth, if you’re unable to pay your debts, your credit is probably already in bad shape. Declaring bankruptcy may help set you back on the right path and, over time, it may even reestablish your credit score and put you in much better shape than you were prior to filing Bankruptcy. This applies to both types of Bankruptcies – whether you filed a Chapter 7 Bankruptcy to seek a quick discharge of your debts or whether you filed for Bankruptcy relief under Chapter 13 Bankruptcy and made payments to a Chapter 13 Trustee. How Quickly Will My Credit Score Rise After Bankruptcy? As mentioned previously, many people will notice their credit scores plunge in the months leading up to filing bankruptcy. While discharging your debts will help give you a fresh start, you shouldn’t expect to see much of a credit increase until your bankruptcy is completed. For those that file Chapter 7, this could be within six months of your completed filing. For those filing Chapter 13, it could be longer. Again, Chapter 13 usually includes a three to five-year repayment plan so it could take longer to see an increase in your score.  On the other hand, sometimes there are benefits to filing that cannot be achieved by filing for Chapter 7. Should I File Bankruptcy? If you can no longer meet your obligations to creditors and lenders, you do have the ability to relieve all or part of your debts. Filing for bankruptcy will discharge many of your debts meaning the debts are forgiven and you are no longer responsible for paying them. If you are thinking of filing for bankruptcy it is important to talk with a local bankruptcy and debt attorney who can walk you through the process and your options before filing. The Law Offices of David M. Offen located in Philadelphia can help you find solutions to your financial problems and get you back on track.    For a free consultation on how to quickly get your financial situation under control Call The Law Offices of David M. Offen at 215-625-9600. They are located in Center City Philadelphia – and are very easy to reach from Philadelphia and the suburbs. The post Are Personal Bankruptcy Filings Public Information? appeared first on Bankruptcy Lawyer in Philadelphia PA | David M. Offen Attorney at Law.

   A common procedure in consumer bankruptcy cases is to avoid a lien on a homestead created by a judgment against the debtor by an otherwise unsecured creditor.  11 U.S.C. 522(f) provides for avoiding judgment liens on exempt property.  In In re Jones, 2019 Bankr. LEXIS 1613, Case #05-55697 (Bankr. E.D. Ky. 28 May 2019) the debtor had filed a chapter 7 bankruptcy in 2005, and in that case obtained an order avoiding the judgment lien of Capital One on their homestead.      Approximately 13 years following the bankruptcy, the debtors inherited 1/3 interest in another parcel of real estate in the same count, and when they attempted to sell such property, the closing was delayed because the creditor had not released the judgment lien.  Debtors then filed to reopen the bankruptcy case, and filed a contempt motion against Capital One.   Under Kentucky law judgment liens are enforceable for 15 years.  The discovery of the judgment lien both delayed closing on the property and resulted in a reduction in the sale price of the property by $5,000 for delay in closing on January 18, 2019 and by another $7,500 for delay on closing scheduled for February 15, 2019.  The delays also caused significant strain on her family relationships.  Capital One did not make an appearance in the contempt proceeding.  In an initial hearing on 14 February 2019 the Court entered a release order, directing Capital One to forthwith release it's lien, and authorizing the debtor to present the order to the recording office if Capital One does not do so within 30 days.   In the order following the contempt hearing in March 2019 the Court initially found that Capital One violated the discharge injunction of 11 U.S.C. 524(a)(2), which provides in part that the discharge operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor.   As of the petition date, Capital One held an in personam claim against the debtor for the obligation itself, as well as an in rem claim against real estate the debtor owned in the county.  The in personam claim was extinguished upon the entry of the discharge order in the bankruptcy case.  The in rem claim was extinguished upon entry of the order avoiding lien.  Thus, upon elimination of both claims Capital One had no claim against the debtor, and the §542(a)(2) discharge injunction prohibited the creditor from taking any future collection action against the debtor or her property.  Yet Capital One allowed the judgment to remain of record, thereby impending the Debtors' fresh start.  In order to find a creditor in contempt the court must find that the creditor's act was willful1Willfulness can be shown be establishing by clear and convincing evidence that the creditor 1) violated the discharge injunction, and 2) did so with actual knowledge of the injunction.2The court noted there was no evidence that the avoidance order was served on the creditor prior to the contempt motion, but found that the contempt motion provided the creditor actual knowledge of the injunction in January 2019.  Debtors' counsel certified that he served the contempt motion in compliance with Bankruptcy Rule 7004(h) specifying special service on insured depository institutions.  Finding a willful violation, the court may award actual damages based on its inherent contempt power, and may also award mild non-compensatory punitive damages as necessary to enforce the Bankruptcy Code under 11 U.S.C. 105.3  The Court found sanctions warranted by the fact that the judgment has been a cloud on the title for over 13 years, and that the creditor had knowledge of this since at least 23 January 2019.  The creditor chose to neither remedy the ongoing violation, nor to make written and oral arguments before the Court.  Such failure demonstrates Capital One's abject disregard for the Court's Discharge, Avoidance, and Release orders.    The Court awarded $2,500 for the delay, stress, and embarrassment caused by having her family find out about the bankruptcy filing and the friction caused by the lien's delay in closing on the property.  The court also found the attorneys fees reasonable, and awarded $5,995 in such fees,  Finally, the court awarded mild non-compensatory damages of $7,500.   The Court also awarded additional coercive sanction of $100/day  until the lien is released commencing after Debtors file a notice that it has not been released, such notice to be filed no earlier than 14 days after service of the order.  The court acknowledged Debtor's argument that the Debtor's presentation of the court's avoidance and release order to the designated recording officer may not be a valid lien release under Kentucky law.1 Gunter v. Kevin O'Brien & Assocs., LPA (In re Gunter), 389 B.R. 67, 75 (Bankr. S.D. Ohio 2008); Kanipe v. First Tenn. Bank (In re Kanipe), 293 B.R. 750, 756 (Bankr. E.D. Tenn. 2002)).↩2 In re Campbell, No. 10-22561, 2014 WL 32161, at *6 (Bankr. E.D. Ky. Jan. 6, 2014).↩3  In re Joseph, 584 B.R. 696, 705 (Bankr. E.D. Ky. 2018). ↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703https://hillsboroughbankruptcy.com

Dischargeability of Student Loans The American Bankruptcy Institute recently released their final report on consumer bankruptcy. This report took place from 2017-2019 and analyzed dozens of issues as they relate to Chapter seven and Chapter 13 bankruptcy. The first issue that I would like to address is the non-dischargeability in general of student loans. As+ Read More The post American Bankruptcy Institute’s Recommendation For Student Loans In Bankruptcy appeared first on David M. Siegel.