If you are expecting to go through foreclosure or your property is going to be sold at a sheriff’s sale, you may be concerned about the potential consequences of that sale. You likely know that you will not have ownership of that property anymore, and you likely understand that you will not be in debt to your creditors once the property is sold. However, there are also credit score implications for having a property sold at a sheriff’s sale. Having your property sold at a sheriff’s sale will affect your credit score in a negative way. The particulars of your foreclosure process that led up to the sheriff’s sale have a direct impact on how significant the effect on your credit is. In general, the later your mortgage payments are past due, the worse the effect will be on your credit score. However, retaining legal counsel can help prevent or mitigate the negative effects of a sheriff’s sale on your credit. For a free analysis of your situation, call Young, Marr, Mallis & Associates’s foreclosure defense lawyers at the number (609) 755-3115 for matters in New Jersey or (215) 701-6519 for matters in Pennsylvania. How Sherrif’s Sales Impact Credit Scores Make no mistake, having a property foreclosed on and subsequently sold at a sheriff’s sale will have a negative impact on your credit. The exact impact will depend on the nature of the situation that led to the foreclosure and sheriff’s sale. If the missed mortgage payments that led to foreclosure were only slightly delinquent, the impact on your credit score may be minimal. However, if your missed payments were extremely late, foreclosure and a subsequent sheriff’s sale can have an extremely negative impact on your credit. Additionally, the impact on your credit is somewhat proportional to your credit prior to foreclosure. If your credit is high before foreclosure, you will lose more points than if your credit score was lower to start with. For example, according to Fair Isaac Corporation (FICO), the main tool used by lenders to determine credit, someone with a “high” credit score will lose somewhere between 140 and 160 points due to foreclosure or a sheriff’s sale. Conversely, an individual with a lower credit score of 680 will lose only 85 to 105 points. This is partially because there are simply fewer points to lose and partially because once credit is damaged, subsequent negative impacts on credit are less important because the credit score is already not good. How Do Lenders View Foreclosure and Sheriff’s Sales? Foreclosures and sheriff’s sales are not viewed favorably by moneylending institutions. In fact, they are seen as some of the most serious red flags out there, only under being in the midst of bankruptcy proceedings. It will be very difficult to take out a loan if you have a property foreclosed on or are currently going through foreclosure proceedings. Many lenders may even outright refuse to give you a loan if they see that your property has been the subject of foreclosure or sold at a state sale. All that being said, every lender will have different standards for the level of perceived risk they are willing to accept. Moreover, lenders may become more lenient and understanding of your situation as time passes, especially if you can show that you have things under control in years following foreclosure proceedings. Ways to Improve Credit After a Foreclosure and Sheriff’s Sale Since credit is negatively impacted by foreclosures and sheriff’s sales, many people who go through those experiences will be looking to work towards rebuilding their credit. There are many ways to do this, and our foreclosure defense lawyers are ready to advise you on the best courses of action for your situation. Pay Bills on Time Arguably, the most effective way to improve your credit is to pay your bills consistently and on time. This shows financial institutions that you will not leave them out to dry when they loan you money. Ultimately, credit is a measure of how likely you are to pay someone else back, so actually paying what you need to is a good way to boost your credit score. Property Manage Credit Cards Another method for building credit is keeping credit card balances to a minimum. Making credit card payments in a timely fashion will improve your credit score over time by showing that you can pay your debts. Some common advice regarding using credit cards to improve credit involves leaving some of the balance unpaid so that it generates interest. Doing that is a risky proposition for building credit, as you are not, in fact, paying off the entirety of your bill. It is better to pay off your credit card debt in full and on time to rebuild your credit. Avoid Large Purchases Sometimes, it cannot be helped, but minimizing the number of large purchases you make can improve your credit. First, smaller purchases are easier to pay off. Second, it shows that you are trying to be financially responsible by avoiding large purchases that may put you at risk of failure to pay debts on time. Be Patient Above all, you need to be patient when rebuilding credit. There is no way to rebound from a diminished credit score overnight. The only way to rebuild credit is to work hard at it over a long period of time, so stick with it and trust that things improve over time. If you are responsible with your purchases and timely with your repayments, your credit will improve. Let Our Foreclosure Defense Lawyers Help You Out Today Contact the foreclosure defense lawyers from Young, Marr, Mallis & Associates by calling (609) 755-3115 for the state of New Jersey or (215) 701-6519 for the state of Pennsylvania to get a free analysis of your situation.

The Miami Herald reported on PPP fraud in South Florida, which is currently being prosecuted by the government. The article can be found at  https://www.msn.com/en-us/news/crime/ar-BB1ktBVX?utm_source=pocket_mylistRather than spending the money on employee wages and other overhead costs, much of it was defrauded or spent on luxury goods purchases. The government is now prosecuting the individuals and attempting to recover the money or property.Jim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Your Bankruptcy Budget   When you fill out your bankruptcy budget, remember inflation. Some people give me a food budget that might have worked ten years ago, but not now. Do you buy coffee every morning at the 7-Eleven/? Some people think of just the grocery store budget and forget they get coffee every morning at the 7-Eleven, or Starbucks(!). I’ve seen moms with two teens at home put down $40 a month for clothing–that doesn’t even keep them in shoes. Here’s a chart you can use as a starting point.  It’s based on research collected by the Census Bureau.  This shows the expenses of the average family in America, collected by the Census Bureau and the Bureau of Labor Statistics.   Remember that in Northern Virginia, things can be more expensive than elsewhere. (One family I talked to recently had a food budget that seemed too low. Mom told me that their family–living in western Stafford–ate a lot of venison; the husband killed deer during hunting season and froze the meat. That probably doesn’t apply to you. Many families around the country grow their own veggies. That’s hard to do around here, too.) Healthcare is not on this chart. Healthcare is another area where people budget way too low. Here’s something I posted on budgeting your health care costs. I wrote that ten years ago. The post Your Bankruptcy Budget–Don’t Forget Coffee appeared first on Robert Weed Bankruptcy Attorney.

While having insurance provides an important financial safety net for unexpected accidents, insurance companies are notoriously difficult to deal with. If your long-term disability insurance claim is denied, an attorney can help you write an effective appeal letter. A successful appeal letter for long-term disability claims should directly respond to the reasons cited by the insurance company for the denial. Vague statements about why you disagree or need the claim approved are unlikely to help. You should include the specific reasons why your claim was denied and why the insurance company’s decision is incorrect. Use language taken directly from your policy to make your point. If necessary, include additional information about your medical history and condition that might strengthen your claims. We need the denial letter from the insurance company and your policy before writing your appeal letter. If the denial does not align with the policy terms, you have a stronger case for appeal. You should avoid vague or unnecessary information, as it will likely not help you. Get a private case evaluation for free when you call Young, Marr, Mallis & Associates at (215) 515-2954 and speak to our disability attorneys. Writing a Successful Appeal Letter After Your Long-Term Disability Claim is Denied When an insurance company denies a claim, they must send the claimant written notice of the denial. The denial letter must include the specific reasons why the claim is denied. Insurance companies cannot just deny a claim with no explanation. If your denial letter contained no explanation of why your long-term disability claim was denied, call an attorney immediately. When writing an appeal letter, it should be a direct response to the denial letter. If the insurance company lists several specific reasons why your claim was denied, your letter should address each of those reasons specifically and directly. If even one of the insurance company’s reasons is left unaddressed, your appeal letter might not be successful. This can be difficult for people whose claims are denied on numerous grounds. Even so, an attorney can help you write an effective appeal letter and hopefully get your long-term disability claim approved. Do not write some vague statement about why you need coverage. You might be upset about the denial, as it means you must wait even longer before getting financial assistance from the insurance company. As such, it can be tempting to write a long, angry letter about why the insurance company is heartless or why you need these benefits. Your feelings are certainly valid, but broad statements that do not specifically address the denial will not help you write an effective appeal letter. What to Include in Your Appeal Letter After Your Long-Term Disability Claim is Denied First, our disability attorneys need to lay out the reasons you were denied. What grounds did the insurance company claim when they denied you? Be specific. If the insurance company denied your claim for three specific reasons, we must include each of those three reasons in your appeal letter. Next, we should include language from your policy that supports your coverage. Keep it specific to the reasons why you were denied. Do not be vague. What does the policy state regarding the reasons cited by the insurance company? We need to establish that your policy covers you. Including additional details about your medical condition and future prognosis might also be a good idea. It is possible that the insurance company does not believe you are disabled or that your condition does not qualify for long-term disability benefits. This sometimes happens when claimants do not provide enough information about their condition when they initially submit a claim. Providing additional details that prove you are disabled might be helpful. We can also include contact information for you and your doctors. The appeals process can sometimes be a bit complex, and the insurance company might contact you or your doctors for more information. What You Need to Begin Writing an Effective Appeal Letter for a Long-Term Disability Claim We first need the denial letter to begin writing the most effective appeal letter possible. As mentioned before, the denial letter should spell out exactly why the insurance company denied your claim. We need this information to build your appeal case. If the letter is too vague or unclear, your attorney can help you ask for clarifications from the insurance company. It would be best if you acted quickly, as getting clarifications might eat up more of your time. Next, we need a copy of your policy. You should make direct references to it throughout your appeal letter. Remember, the policy controls whether certain claims are approved or denied. We might also need some additional proof of your disability. Have other entities or organizations officially recognized your disability? For example, the Social Security Administration might recognize your disability for the purpose of getting Social Security Disability Insurance benefits. If you have documentation from the SSA, you can provide copies to the insurance company. Basically, if your condition is good enough for the federal government, it should be good enough for your insurance company. Things to Avoid When Writing an Appeal Letter for a Long-Term Disability Claim To make sure your appeal letter is as strong as possible, you should avoid making vague statements. You might want to stress how important long-term disability benefits are for your survival, but this should not be the focus of the letter. Statements should be specifically about the issues raised in the insurance company’s denial letter and how they do not align with the terms and conditions of your policy. Also avoid information that does not specifically address the reasons cited by the insurance company for the denial. While additional information might be helpful in some cases, you must first respond to the reasons why your claim was denied. If the insurance company does not base the denial on a lack of medical information, there might be no need to include additional medical information. Either way, talk to your lawyer about including extra information. Do not wait! Time is of the essence. The sooner you get started, the better. Also, avoid doing it alone. Call a lawyer for help. Contact Our Disability Attorneys for Legal Support Now Get a private case evaluation for free when you call Young, Marr, Mallis & Associates at (215) 515-2954 and speak to our Allentown, PA disability attorneys.

Watching your property get sold to the highest bidder at a sheriff’s sale is generally not a pleasant experience. Sheriff’s sales are the final step in the foreclosure process, where property is sold to pay debts that a debtor owes to various creditors. The proceeds from the sheriff’s sale are used to pay these debts. However, since sheriff’s sales are auctions, sometimes the highest bid for a property will not be enough to pay off every debt owed to creditors. When properties sold at sheriff’s sales are not sold for enough to pay all debts, those debtors actually end up out of luck. The proceeds of a property sold in a sheriff’s sale pay off creditors in order of priority, so those creditors lower on the list will not get paid if the proceeds from the sale are not enough to satisfy all debts. If you need assistance, speak to the foreclosure defense attorneys with Young, Marr, Mallis & Associates by calling (215) 701-6519 for Pennsylvania matters or (609) 755-3115 for New Jersey matters. Do Creditors Get Paid if My Property Does Not Sell for Enough in a Sheriff’s Sale? If your property sells for less than what your creditors are owed, the creditors are paid in order of priority. In general, creditors who obtained an interest in the property earlier in time get paid before creditors who obtained their property interest later, barring some exceptions like mechanic’s liens. Those creditors who are lower in priority do not get their debts satisfied if not enough money is made from the sheriff’s sale. What Happens at Sheriff’s Sales? Whether a sheriff’s sale is happening because of a “tax sale” or after foreclosure proceedings, the process remains largely the same. A property that is being sold to pay for debts is put up for auction, and people bid on it. The highest bidder gets the property, and the proceeds from the sale are used to pay the creditors who initiated foreclosure. You are also allowed to bid on your own property. If you are the highest bidder, you will re-obtain your own property without any liens or encumbrances. That being said, it is not a good idea to use a sheriff’s sale as a way to get rid of debt, as having a property foreclosed on can still have negative consequences, so discuss your situation with our foreclosure defense attorneys. What if My Property is Not Sold at All in a Sheriff’s Sale? If your property is not sold, it becomes what is called “real-estate-owned property.” Essentially, the bank or other creditors get ownership of the property instead of getting paid. It may be surprising to know that this is generally a bad outcome for the creditor. In most cases, the creditor will be a bank or other financial institution. Those entities are not in the business of possessing ownership of errant properties, so they would prefer that the property be sold rather than get possession of it. Ways to Prevent Sheriff’s Sales If you are concerned that your property will be foreclosed on and go up for auction at a sheriff’s sale, there are, fortunately, options available to you to prevent that from happening. Each person’s situation is different, so it is best to talk with our foreclosure defense attorneys about what option is right for you and your property. Right of Redemption When a property you own is being sold at a sheriff’s sale, you can exercise your “right of redemption.” When you exercise this right, you are stating that you have the entire balance of outstanding debts against you ready to be paid to creditors right away. Of course, it can be difficult to come up with the amount of capital needed to pay off all debts at the same time, so this option may not be practicable in all circumstances. Injunctive Relief Another way to prevent sheriff’s sales is to request injunctive relief. Injunctions are court orders that prevent a party from doing something. In this instance, the injunction prevents a sheriff’s sale. In order to have a successful claim for injunctive relief, you must show the court you are more likely than not to win the case if it went to a full trial. Another thing the court takes into account in a request for injunctive relief is whether the requesting party will suffer hardship if they do not issue an injunction. For example, if failure to issue an injunction would result in you losing your home because it is sold at auction, a court is likely to see that as hardship and may be more inclined to give you the injunction to stop the sale until circumstances change. Bankruptcy An option to stop a sheriff’s sale from taking place is to file bankruptcy. When someone files for bankruptcy, an “automatic stay” is placed in effect, which prevents any efforts to collect a debt against the person filing bankruptcy. Bankruptcy prevents sheriff’s sales by stopping the foreclosure process so that things never get to that point in the first place. However, you should not think of bankruptcy as a “magic bullet” that can be used without much consideration. Filing bankruptcy can have significant consequences for your credit score, and depending on the Chapter of bankruptcy you file under, your property may be able to be liquidated in any event. Filing bankruptcy is a serious decision that you should discuss with our attorneys before you make it. Chat with Our Foreclosure Defense Attorneys About Your Case For any foreclosure or sheriff’s sale-related concerns you have, call Young, Marr, Mallis & Associates’ foreclosure defense attorneys at (215) 701-6519 for Pennsylvania and (609) 755-3115 for New Jersey.

When one parent can no longer work because of a disability, the other, along with their children, might be eligible for auxiliary benefits from the Social Security Administration (SSA). Also known as family benefits, auxiliary benefits are paid in addition to Social Security Disability Insurance (SSDI) benefits and do not reduce a primary beneficiary’s SSDI benefit amount. Each eligible family member might be able to get up to 50% of the primary beneficiary’s benefit amount, though that it is not guaranteed. There is no limit to how many family members can get auxiliary benefits, though the SSA might reduce their individual benefit amounts if they exceed the maximum family benefit allowance. Auxiliary benefits can change to survivors benefits if primary beneficiaries die, possibly resulting in larger monthly benefits for surviving spouses or children. Auxiliary benefits are not factored into a primary beneficiary’s overall income, meaning recipients can stay below substantial gainful activity (SGA) limits while getting additional financial support from the SSA. To schedule a confidential and free assessment of your case from our disability lawyers, call Young, Marr, Mallis & Associates now at (215) 515-2954 or (609) 557-3081. What Are Auxiliary Benefits? If you were recently approved for Social Security Disability Insurance (SSDI) benefits, your immediate family members might be eligible for additional auxiliary benefits from the Social Security Administration, also known as family benefits. The SSA pays auxiliary benefits in addition to SSDI or other disability benefits, not in place of them. These benefits are paid to immediate family members of SSDI recipients to increase the family’s total monthly income. This is often necessary for families of SSDI recipients, as the maximum monthly SSDI benefit is just $3,822. For some, that might be enough to support themselves. For others with large families, additional financial support might be necessary and can come in the form of auxiliary benefits. Furthermore, it is important to note that the maximum monthly SSDI benefit is not available to all recipients, just those near retirement age. Your specific SSDI benefit amount will be calculated according to your work history, which will also help determine the auxiliary payments your family gets. While the SSA pays auxiliary benefits in addition to SSDI payments, it will not automatically do so. Your spouse or children must apply for family benefits to get them, which our disability lawyers can assist with by preparing the necessary information and submitting it to the Social Security Administration. Who Can Receive Auxiliary Benefits? Auxiliary benefits are only available to primary beneficiaries’ children, spouses, and ex-spouses. Furthermore, these individuals must meet additional criteria to show the SSA they are entitled to family benefits. Spouses Those currently married to disability recipients can get auxiliary benefits if they are 62 or older or are any age and have an in-house child. This means that they have a child who is 16 years old or younger or qualifies as a disabled adult child (DAC). Ex-spouses can also get auxiliary benefits through an ex’s record if they were married for at least ten years, are at least 62 years old, are unmarried, and are ineligible for benefits on their own record or someone else’s. This can get confusing, especially in situations involving ex-spouses, and our lawyers can help you determine whether you are eligible for auxiliary benefits based on your specific situation. Children Children of disability recipients can also get auxiliary benefits, provided they meet the various criteria. To get family benefits, children of SSDI recipients must be unmarried and under 18. Alternatively, if the child of a disability recipient is disabled themselves and was diagnosed with their disability before the age of 22, they can get family benefits even if they are older than 18. The SSA classifies such individuals as DA Cs, and they can get SSDI benefits themselves through a parent’s earning record if they require financial support. In addition to being under the age of 18 or otherwise being classified as a DAC, children seeking auxiliary benefits must show the SSA that they meet extra criteria. For example, they must meet the definition of “child” as defined by the SSA, meaning they must be the biological, adoptive, or, in some cases, step-child of the primary beneficiary. Furthermore, the child must have been dependent on the primary beneficiary during at least one of three points in time. For example, a child must have been dependent on the primary beneficiary at the beginning of the worker’s disability, when the worker was last entitled to disability benefits, or when the child’s application for auxiliary benefits was filed. Depending on the specifics of a case, there might be additional dependency requirements a child has to meet in order to prove their eligibility for auxiliary benefits. Are You Eligible for Auxiliary Benefits? In order for the SSA to consider someone’s eligibility for auxiliary benefits, that person must have the necessary relationship with an insured worker. This means that there must first be a primary beneficiary who is eligible for SSDI benefits for there to be a family member who is eligible for auxiliary benefits. Eligibility for SSDI benefits is based on two factors: a person’s work history and disability. Work history is of greatest concern when it comes to auxiliary benefits, as that is how our lawyers estimate a family’s additional income. To have a sufficient earning record for SSDI, an applicant must have work credits. Individuals can earn up to four work credits per year, which is done when workers earn $6,920 in income. To be eligible for any disability benefits, an applicant must have at least 40 work credits, 20 of which were earned in the last ten years preceding their disability diagnosis. Once we have established that a primary beneficiary is, in fact, eligible for SSDI, we can help their immediate family members apply for auxiliary benefits, the amounts of which will be calculated according to the primary beneficiary’s benefit amount. That amount is ultimately based on their earning record, or the number of work credits they have accrued, which is why examining their history prior to applying is important. When Are Auxiliary Benefits Not Payable? When applying for auxiliary benefits, primary beneficiaries or their spouses might leave out crucial information or fail to meet certain standards, resulting in their applications being denied. Spouses under retirement age can typically only get auxiliary benefits if they have a child under 16 in their care. The Social Security Administration might deny applications for auxiliary benefits in cases where spouses are separated or a minor child has been removed from a parent’s care. Child benefits are not payable in specific situations, which our lawyers can explain in the event that they apply to your case. Generally speaking, the biggest issues with applications for auxiliary benefits occur when parents leave out important information required by the SSA. Maximum Auxiliary Family Benefit Amounts Auxiliary benefits are based on several factors, such as a recipient’s relationship to the primary beneficiary and the primary beneficiary’s benefit amount. Our lawyers can explain how the SSA calculates auxiliary benefits and what might happen if your family’s total benefit amount exceeds the limit allowed by the SSA. Generally speaking, each family member who is eligible for auxiliary benefits can receive up to 50% of the primary beneficiary’s benefit amount. That said, there is a maximum when it comes to how much the SSA will pay to one family. In most cases, the maximum total family benefit amount is between 150% and 180% of the primary insurance amount. Suppose a disability recipient has a spouse and several children and the auxiliary benefits payable to them would be above the maximum family benefit allowed by the SSA. In that case, the SSA might reduce each of their individual auxiliary benefit amounts as necessary. Suppose you have recently applied for SSDI and are interested in how auxiliary benefits can increase your family’s overall income. In that case, our attorneys can estimate the total benefits your family might be eligible for by reviewing your income prior to sustaining a disability and your work history to calculate your likely SSDI benefit amount and, by extension, your family’s auxiliary benefits. When to Apply for Family Benefits Many SSDI recipients are unaware of the existence of auxiliary benefits when they originally apply for support from the SSA. Even if it has been years since you’ve been approved for SSDI benefits, it is not too late for your family to apply for auxiliary benefits. Applications for SSDI benefits are usually subject to a five-month waiting period. After the SSA informs you of your approval, you can immediately begin the application process for auxiliary benefits for your spouse and children. By doing this as soon as possible, you can get the greatest financial support from the SSA from the get-go. The SSA may pay auxiliary benefits to children retroactively for up to 12 months. How to Apply for Auxiliary Benefits Applying for auxiliary benefits is similar to applying for SSDI benefits. Our attorneys can gather the necessary information for a child or spouse’s application for family benefits so that the Social Security Administration approves it without issue. Family Benefits for Children If you are applying for auxiliary benefits on your child’s behalf, there is information and documents you will need to provide to the SSA along with the application. This will include your child’s birth certificate or proof of adoption and proof of your child’s U.S. citizenship, among other information. The SSA might ask questions to verify your relationship with your child, such as whether or not they live with you at home. If your child qualifies as a DAC, you might need to complete additional forms and provide information about their medical condition. Family Benefits for Spouses When applying for auxiliary benefits as the spouse of an SSDI recipient, you must provide the SSA with certain information. This will include your birth certificate, marriage certificate, and W-2 forms for the last year. The SSA will also ask you various questions, such as information about your spouse, children, and current employment status. You should also be prepared to give the SSA your banking information so that you can easily receive your auxiliary benefits after getting approved. How Long Does it Take to Get Approved for Auxiliary Benefits? The Social Security Administration is not necessarily known for its efficiency when handling claims. Because of this, it might be several weeks or months before the SSA approves an application for auxiliary benefits. Generally speaking, those who apply for auxiliary benefits are not subject to the same five-month waiting period after approval as SSDI benefit recipients. That said, there is no telling how long it will take for the SSA to review an application for auxiliary benefits. If an application lacks certain information, the approval process might take longer. Suppose you, your spouse, or your child applied for auxiliary benefits months ago and have not heard back from the Social Security Administration. In that case, our Allentown, PA disability lawyers can contact the SSA to determine the status of your application. If the SSA has additional questions or requires more information, we can help you respond promptly so that the SSA approves your application as quickly as possible. Do Auxiliary Benefits Impact SSDI Benefit Amounts? Upon learning that their family members are eligible for auxiliary benefits through their records, disability benefit recipients might wonder if their monthly payments will be affected. The answer is no. Auxiliary benefits increase the overall income for an SSDI recipient’s family. You will get your normal monthly payment from the SSA, but that’s not all. On top of that, each eligible member of your family will get their own monthly auxiliary benefit. In the event that your family’s computed benefit amount is greater than the maximum family benefit allowed by the Social Security Adiminstration, it will reduce their individual benefits proportionally as necessary. The primary beneficiary’s benefit will be unaffected in these cases, as it is calculated separately from the maximum family benefit. Auxiliary Benefits for Surviving Family Members If a primary beneficiary dies while on disability, their family’s auxiliary benefits will likely convert to survivors benefits. When this happens, monthly benefit amounts might change. Survivors benefits are calculated differently than auxiliary benefits and are generally greater. For example, a surviving spouse who is at full retirement age or older may receive 100% of a decedent’s benefit amount. Surviving spouses caring for a child under 16, regardless of their age, can receive up to 75% of a decedent’s benefit amount, as can dependent children under 18. There are additional survivors benefits available to dependent parents of decedents and surviving spouses with disabilities. Eligible family members can apply for survivors benefits after a primary beneficiary’s death. If family members already received auxiliary benefits before a decedent’s death, their benefits should easily convert to survivors benefits. If your benefit amount has not changed since the death of a primary beneficiary, our lawyers can contact the SSA to update the agency about the situation. Payment Schedules for Auxiliary Benefits The Social Security Administration follows a regular payment schedule for SSDI and auxiliary benefits. This means that after getting approved, you can expect to receive your benefits at the same time each month. Apart from Supplemental Security Insurance benefits, which are paid on the first of each month, the SSA pays all other Social Security benefits on either the second, third, or fourth Wednesday of every month. Which day each individual recipient gets their auxiliary benefits will depend on their birthday. If your birthday falls between the 1st and the 10th of the month, you’ll get your benefit on the second Wednesday. If your birthday falls between the 11th and the 20th of the month, you’ll get your benefit on the second Wednesday. And finally, if your birthday falls between the 21st and the 31st of the month, you’ll get your benefit on the fourth Wednesday. Generally speaking, it’s easiest to opt to get SSA payments through direct deposit, whether they are SSDI benefits or auxiliary benefits. There’s a greater chance that recipients experience delays when the SSA sends checks out by mail. When the SSA sends payments via direct deposit, it does so at midnight on the correct payment date. How Long Can Eligible Family Members Get Auxiliary Benefits? If your immediate family members qualify for auxiliary benefits through your record, how long they can continue to receive payments could depend on several factors, such as their age, marital status, and your continuing eligibility for disability benefits. Child benefits typically last until a primary beneficiary’s child turns 18. That said, if a primary beneficiary’s child is also a DAC, they can continue to receive benefits for as long as necessary. Because the SSA allows people to get auxiliary benefits through an ex-spouse’s earning record in certain situations, some individuals might be able to keep receiving family benefits even after getting divorced. If a primary beneficiary is no longer eligible for SSDI benefits, auxiliary benefits will also stop. The SSA assesses recipients’ continuing eligibility for SSDI benefits routinely and, during one of these reviews, might learn new information about a recipient’s medical condition that disqualifies them from getting further benefits. If you get auxiliary benefits as a spouse, they will stop once you no longer have an in-house child under the age of 16. They might resume once you reach age 62 or if you meet other criteria for auxiliary benefits for spouses in the future. Auxiliary Benefits and Social Security Disability Income Limits When the SSA approves an SSDI application, it is because the applicant can no longer work because of an injury, illness, or disability. To reinforce the importance of this point, the SSA has set substantial gainful activity limits for disability benefit recipients, preventing them from earning a certain amount in additional income each month. If your family gets auxiliary benefits, will those payments count toward your SGA? Fortunately, the answer is no. The SGA limit is only an issue when it comes to money earned from working. For example, if you tried to work a part-time job while getting SSDI, and that job generated too much income, you might be over the SGA limit for the month. For 2024, the monthly SGA limit is $2,590 for blind individuals and $1,550 for non-blind individuals. Even if your family’s overall auxiliary benefits exceed the SGA limit, you will have nothing to worry about, as it does not count toward your income in the eyes of the SSA. That said, auxiliary benefits are taxable income, which is something for eligible family members to keep in mind. Similarly, auxiliary benefits do not impact trial work periods (TW Ps). Disability benefit recipients automatically trigger TW Ps whenever they earn upwards of $1,110 in a month. If left unchecked, TW Ps could cause SSDI recipients to lose their benefits and their family members to lose their auxiliary benefits. To prevent this from happening, our attorneys can identify a TWP and address it with the SSA promptly. Even if you and your family are at risk of losing SSDI or auxiliary payments, we may be able to prove your continuing eligibility for benefits despite a recent TWP. Call Our Lawyers to Learn More About Auxiliary Benefits Today To get a free case review from our attorneys today, call the Berks County, PA disability lawyers of Young, Marr, Mallis & Associates at (215) 515-2954 or (609) 557-3081.

N.C. Ct. of App.: Smith Debnam v. Muntjan- Statute of Frauds Ed Boltz Sat, 03/23/2024 - 01:51 ​​​​​​Summary: Smith Debnam sued Paul  Muntjan for amounts owed for legal services provided to Paul Muntjan's son,  Nick Muntjan.  The parties disagreed about whether, at the initial meeting between Brian Saintsing and Nick Muntjan,  Paul Muntjan volunteered to be responsible for Nick Muntjan's legal fees.  Nick Muntjan was then sent an  engagement letter that provided that “[u]pon receipt of the signature page and the retainer, we will begin work in this matter.”  The Muntjans denied receipt of this letter, but Smith Debnam nonetheless commenced representation without it.   For the next several months,  payments were made to Smith Debnam using Paul Muntjan's credit card. When subsequent payments were not made,  Nick Muntjan requested that Paul Muntjan be included in email correspondence from Smith Debnam,  to which Paul Muntjan responded by email,  including his name or signature block.  When payments were still in default,  Smith Debnam commenced suit against Paul Muntjan. Paul Muntjan defended arguing that the Statute of Frauds prevented enforcement of any obligation.  In reversing the district court,  the North Carolina Court of Appeal  assumed arguendo that there was a valid contract form but then that it was unenforceable.   A “statute of frauds” requires certain contracts be written and signed to be enforceable,  with the applicable statutory provision being N.C.G.S.  § 22-1  which states: No action shall be brought . . . to charge any defendant upon a special promise to answer the debt, default or miscarriage of another person, unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party charged therewith or some other person thereunto by him lawfully authorized.  The Court of Appeals held that even if Paul Muntjan had promised to be responsible for his son's legal fees,  that  “collateral promise” is a guaranty and not an “original promise”.  A collateral promise is one where  the credit was extended to a party other than the promisor, but an original promise is where “credit was extended directly and exclusively to the promisor.  The latter is "not within the statute of frauds.”  As any promise made by Paul Muntjan was made in addition to Nick Muntjan's obligation,  it was a collateral promise.  A guaranty, however, may still avoid the statute of frauds if the main-purpose rule applies,  which requires that  its main purpose is to benefit the guarantor.  Here no evidence suggested that the benefit of the legal services was for Paul Muntjan. Next the Court of Appeals reviewed whether any subsequent correspondence constituted a  “memorandum of the contract",  which   “though it may be informal, must be sufficiently definite to show the essential elements of a valid contract.”  While the inclusion of Paul Muntjan's  name at the end of his emails did satisfy the requirement of a signature,  those still did not  contain “the essential elements of a valid contract"  as the price of the services was not included or acknowledged.  Further,  while Paul Muntjan's emails did explicitly reference invoices,  with the price of services included,  those list only Nick Muntjan as the client, again not Paul Muntjan.  Accordingly,  these emails,  while "close case",  did not satisfy the Statute of Frauds. Further, the Court of Appeals rejected Smith Debnam's argument that Paul Muntjan was liable for the debt under the theory of quantum meruit,  as that requires as showing that: Services were rendered to defendant;  The services were knowingly and voluntarily accepted; The services were not given gratuitously; and A benefit must pass from the plaintiff to the defendant.   Here however,   the benefit of Smith Debnam's legal services were  to Nick Muntjan, not to Paul Muntjan. The dissent,  largely relying on the same case law,  but oddly dismissing older precedent as of diluted value,  would have reached the opposite conclusion. Commentary: As the majority stated,  "[a]ll [Smith Debnam] needed from [Paul Muntjan] was a signed writing saying, for example, 'I promise to pay Nick’s debt.'”    Even before 2005,  when BACPA added the explicit requirements in 11 U.S.C.  §§ 526, 527 and 528 that consumer bankruptcy attorneys provide clients "with a copy of the fully executed and completed contract" having a written contract was such an obvious necessity that it barely would have risen to being noted as a "best practice".   That such might not be similarly understood by all attorneys,  especially by debt collection lawyers,  is surprising and perhaps indicates that  the Statute of Frauds,  which as an affirmative defense,  may be so rarely raised in response to the churn of debt collection default judgments and barely documented Proofs of Claim  that it has been forgotten by the creditor's bar,  even for amounts owed to them.   To read a copy of the transcript, please see: Blog comments Attachment Document smith_debnam_v._muntjan_1.pdf (152.27 KB) Category NC Courts NC Court of Appeals

N.C. S.Ct.: Taylor v. Bank of America- Statute of Limitations for Fraud in Mortgage Modification runs from Foreclosure Date Ed Boltz Fri, 03/22/2024 - 21:28 Summary: The plaintiffs, a group of homeowners from various states, alleged that Bank of America had engaged in a fraudulent scheme to deny them mortgage modifications under the Home Affordable Modification Program (HAMP) and subsequently foreclosed on their homes. They argued that Bank of America's actions prevented them from receiving permanent modifications to their mortgage terms, despite making required trial payments and repeatedly submitting necessary documentation as requested by the bank. The SCONC reversed the decision of the Court of Appeals, holding that the plaintiffs' claims were time-barred by the applicable statutes of limitations. The Court found that the plaintiffs knew or should have known of their injuries and the alleged fraud at least four to seven years before filing their complaint, at the latest by the date each plaintiff lost their home to foreclosure. Consequently, the plaintiffs' claims were beyond the permissible period for bringing such claims. The Court underscored the importance of statutes of limitations in striking a balance between a party's right to assert a claim and another's right to be free from stale claims. It noted that the discovery rule, which tolls the statute of limitations for fraud claims until the aggrieved party discovers the fraud, did not extend beyond the foreclosure dates because the plaintiffs' experiences with the HAMP application process should have alerted them to the need for further investigation. The dissenting opinion argued that the majority's application of the discovery rule was too narrow and did not align with the jurisprudence surrounding it. The dissent suggested that the statute of limitations for the fraud claims should be equitably tolled for plaintiffs who lost their homes after Bank of America executed a consent judgment, which publicly affirmed its commitment to proper administration of the HAMP program,  while internally working to deny as many HAMP modifications as possible. Commentary: The SCONC has basically said out loud that no one can reasonably rely on  what banks say publicly and that bankster fraud should always be assumed.    Oh, and that the banks will face no consequences. But we all knew that already. To read a copy of the transcript, please see: Blog comments Attachment Document taylor_v._boa.pdf (164.36 KB) Category NC Supreme Court Cases

Bankr. W.D.N.C.: Smith v. DeSeveria- Repayment of Short-Term Loans to Insiders was not a Fraudulent Conveyance Ed Boltz Fri, 03/22/2024 - 16:00 Summary: Matthew W. Smith, the sole manager of the reorganized debtor BK Racing, LLC, sought recovery of  four prepetition transfers totaling $227,000 made to DiSeveria, alleging these were fraudulent transfers under both federal bankruptcy law and North Carolina state law. Smith contended these transfers were either made with actual intent to hinder, delay, or defraud creditors, or were constructively fraudulent because they were made without receiving reasonably equivalent value in exchange. The court analyzed the case under both theories of actual and constructive fraudulent transfer. Under the actual fraudulent transfer claim, the court considered various "badges of fraud" but ultimately found that the transfers appeared to be repayments for short-term loans made by DiSeveria to BK Racing, rather than transfers made with intent to hinder, delay, or defraud creditors. Under the constructive fraudulent transfer claim, the court focused on whether BK Racing received reasonably equivalent value for the transfers. The court concluded that the transfers were repayments for actual short-term loans provided by DiSeveria to BK Racing, and therefore BK Racing did receive reasonably equivalent value in exchange for the transfers. The court also noted that while DiSeveria and Foxboro were, given DiSeveria's officer position within BK Racing, insiders, the transfers were not made to benefit Foxboro Financial Services, LLC, as it received none of the transfers directly. Ultimately, the court found in favor of the defendants, concluding that the transfers were not fraudulent under either the actual or constructive fraudulent transfer theories based on the evidence suggesting that the transfers were in repayment of legitimate, short-term loans and not made with the intent to defraud creditors or without receiving reasonably equivalent value. Commentary: Despite none  of the short term loans in this case appear to have been documented (either in writing or contemporaneous emails),  secured by collateral, subject to accruing interest and were made by family, friends wholly owned companies or family trusts. This seems identical to nearly every repayment of a short-term loan by consumers  to their friends and family before filing bankruptcy.   As the court  concluded, "At best, some of the Transfers may have been 'preferential' in that DiSeveria was repaid while outside creditor checks were bouncing."  at p. 37. (Emphasis added.) This shows that the Trustee's burden in avoiding a transfer  under  11 U.S.C. § 548(a)(1)(A)    or (B) and N.C.G.S. § 39- 23.4(a)(1)  is not a light one.  Nor one that Chapter 13 trustees should be allowed to assert and demand under a chimeric Best Interests of the Creditors and Good Faith objection to confirmation  without actually litigating those claims. To read a copy of the transcript, please see: Blog comments Attachment Document smith_v._diseveria.pdf (938.69 KB) Category Western District

Now that I have hit double digits as a neutral, I thought I would share some mediation practice tips for attorneys based on lessons learned over the last 10 years. Be Prepared.  I prepare for every mediation, and you should too.  You should know the case and also your client.  You should consider the information you will need to evaluate settlement offers, including how to access that information.  You should consider different settlement contours, including any potential nonmonetary components. Be Informed.  Being informed is an important part of preparing for mediation.  Preparation involves more than understanding the facts and law of the dispute, it includes being informed about the business implications of the dispute and any possible settlement, as well as the compounding risks if the case does not settle. Be Candid.  Help me to help you.  I generally talk to counsel for each party before mediation.  These discussions are an opportunity for me to learn not only about the case but also about the dynamics at play.  Please be candid. Be Flexible.  While advocacy is part of every mediation, remember that you are there to settle, not to try your case.  Agree to disagree about the facts and the law.  Focus instead on the common goal of resolution and be open (flexible) to ways to reach resolution. Every mediation is unique.  Being prepared, informed, candid, and flexible increases the likelihood that we will find a path to a fair and sustainable resolution. Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - Practice Tips for Attorneys Based on Lessons Learned in Over 10 Years as a Mediator The post Mediator Insights: Practice Tips for Attorneys Based on Lessons Learned Over 10 Years as a Mediator appeared first on Sylvia Mayer Law.