Social Security payments could be cut over Student Loan DefaultFox Business has a story detailing how Social Security payments could be cut over student loan defaults. The story can be found at:https://www.foxbusiness.com/personal-finance/social-security-payments-garnished-student-loan-default?utm_source=pocket_mylistJim 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!

What are the Biggest Financial Mistakes that People in Arizona Make?   Financial security is important now more than ever, which increases the pressure to always make the right financial decisions. Our bankruptcy attorneys have seen every type of case walk through the door, but some themes ring common among our clients. Financial mistakes can take just a moment but follow you for the rest of your life. Thankfully, bankruptcy exists as a form of debt relief for many people who have made financial mistakes over the years. Read on to learn more about the most common financial mistakes that residents of Arizona make. If you’d like input on your financial situation and whether bankruptcy might be an option for you, our office offers free, convenient consultations by phone. To schedule yours today, click here or call 480-448-9800. Financial Mistakes That Can Lead to Bankruptcy The number one cause of bankruptcy in the United States is medical debt. While some medical procedures are elective, we don’t consider injuring a body part or developing a medical condition a financial mistake. We want to focus on active behaviors that people can, for the most part, control. Living Outside One’s Means Arizona hasn’t been immune from the current cost-of-living crisis. The price of just about everything has increased in the past few years at rates that seem faster than in previous years. Most residential rental leases require that a tenant earn at least three times the monthly rent. Back in the olden days, it was considered acceptable to have your rent or mortgage take up half of your monthly income. But with essentials like groceries and gas costing more than ever, it’s important to take a step back and examine what one’s true priorities are when creating a monthly budget. Perhaps you really do need space which translates to spending more on living expenses, but that might mean cutting back on going out to restaurants and on vacations. Maybe you love video games or exotic animals, or have some other relatively expensive hobby but are willing to live in a smaller home. Letting Credit Card Debt Get Out of Control It can be easy to spend far more than you mean to when you use credit cards. Swiping a card simply doesn’t have the same tangible feeling as spending cash or writing a check. And while using a credit card for your purchases can come with benefits like airline miles and cashback, it is only effective when done carefully. Credit cards usually have relatively high interest rates in comparison with other lines of credit. You can avoid interest by paying off your full balance each month, but if you have an emergency or are otherwise unable to pay off the full balance, the interest could amass and create a revolving balance that you struggle to pay off. Choosing the wrong vehicle It’s undeniable that shopping for a vehicle has become more difficult in the post-pandemic world. Buying a new vehicle is notoriously expensive, but buying a used vehicle comes with the uncertainty of the vehicle’s maintenance and accident history. A car buyer’s needs may change after the purchase- for example, they could get a new job that requires travel and would benefit from a car with better gas mileage. Or, they could welcome new family members and find it would be better to have a larger, more family-friendly vehicle. Getting in a traffic collision or needing significant maintenance and repairs could also make a vehicle a huge drain on a family’s budget. Failure to make loan payments could result in a swift repossession of the vehicle. Marrying The Wrong Person While romantic decisions might not seem like financial decisions, marriage ultimately is a contract. Divorce is among the top causes of bankruptcy in the United States. It is costly for several reasons. Splitting one household into two inevitably comes with additional expenses. One spouse may be ordered to pay the other alimony and/or child support. One spouse could also be ordered to pay a greater share of community property debt in property division. Divorce lawyers aren’t known for being cheap, either. It’s understandable that a recent divorcee could end up in debt that is hard to escape without legal help. Ignoring Impending Collection Efforts by Creditors There are many things your creditors can do if you fall behind on your monthly payments. This may start with phone calls and other forms of contact that border on harassment. Your creditor can file a lawsuit against you to obtain a judgment against you. That judgment could later be used to garnish your wages or drain your bank account. If you financed your vehicle, you likely only need to miss one payment before the lender can repossess your vehicle. Foreclosing a home takes longer and has more legal requirements, but is all the more devastating. It’s best to take action to fend off creditors as soon as you know there is an issue rather than procrastinate. Picking Chapter 7 or Chapter 13 Your specific circumstances will have a great impact on which chapter of bankruptcy you should file to erase financial mistakes, or if you should file in the first place. If you have additional questions about which type of bankruptcy best suits your needs after reading the following, schedule your free consultation with our bankruptcy team by clicking here or calling 480-448-9800. Income Qualification A debtor can qualify for Chapter 7 bankruptcy, chapter 13 bankruptcy, both, or neither. Clearly, qualifying for bankruptcy will be a crucial factor in any debtor’s decision to file. Income must fall below certain limitations for a debtor to qualify for Chapter 7 bankruptcy. The limitations can be strict, especially in a household with more than one earner. If the debtor earns more than the state median income for their family size, they will need to use the means test to qualify for Chapter 7 bankruptcy. On the other hand, the debtor may wish to qualify for Chapter 13 bankruptcy, which requires the debtor to have enough income to pay off debts. The debtor’s payment plan will last 3 years if they earn less than the state median income, and 5 years if they earn more than the state median income. Secured vs. Unsecured Debts Many debtors wish to qualify for Chapter 7 bankruptcy because it clears unsecured debts in a relatively short and simple process. However, it won’t do much to address secured and priority debts. If a debtor struggles with these types of debts, chapter 13 bankruptcy might be more appropriate. Chapter 13 debtors are protected from their creditors for 3 or 5 years while they pay off debts that can’t be discharged in Chapter 7 bankruptcy. Move Forward from Financial Mistakes with Bankruptcy Financial mistakes can be hard to move past, but they are an opportunity to learn and make better choices going forward. Plus, there is only so much that can be done about rising living costs in Arizona and the rest of the country. Our experienced bankruptcy lawyers can make the process simple so you experience as little stress from your case as possible. At My AZ Lawyers, we have convenient office locations for Arizona residents and offer consultations by phone. Don’t wait until it is too late to learn about your options and take action to protect against creditors. Take the first step towards financial relief with your free phone consultation. Most of our clients qualify to file using our affordable Zero Dollars Down filing program. Contact us to schedule your free appointment with one of our experienced Arizona bankruptcy professionals or call us at 480-448-9800.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: [email protected] Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post What are the Biggest Financial Mistakes that People in Arizona Make? appeared first on My AZ Lawyers.

Big News Network has a very helpful article on Bankruptcy, understanding the implications and process. The article can be found at  https://www.bignewsnetwork.com/news/274017564/navigating-bankruptcy-understanding-the-process-and-implicationsClients with questions about Bankruptcy should contact Jim  Shenwick, EsqJim 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!

 The New York Post is reporting that WeWork to file for bankruptcy after once being valued at $47B: report. The story can be found at https://nypost.com/2023/10/31/business/wework-to-file-for-bankruptcy-it-was-once-valued-at-47b/?utm_source=gmail&utm_campaign=android_nypJim 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!

Post-Collapse: The Uncertain Lifespan of Cryptocurrency What happens to your crypto when you die? Or when your cryptocurrency goes bankrupt? Bitcoin, Etherium, Dogecoin, Litecoin, Monero, and other popular cryptocurrencies can’t be saved on your computer. And by its nature alone – not FDIC insured, high volatility, pseudonymous-esque transactions, legal uncertainty – you can’t keep crypto in a bank either.  There are horror stories about people dying with loads of crypto assets on their devices and their survivors unable to find the key. For this reason, crypto exchanges have flourished. But in the 2022 collapse, household names in the crypto industry – Celsius Network, Voyager Digital, FTX, BlockFi – all filed for bankruptcy under Chapter 11. On top of these security risks, crypto owners now need to be hyper aware of crypto bankruptcies and how to navigate around them. What Happens If the Crypto Exchange Goes Bust? If you lost funds to a cryptocurrency when it declared bankruptcy, you may be eligible to file a customer claim. Crypto wallets protect your digital currencies. Coinbase, SafePal, Exodus, and Guarda are some “hot wallets” on the crypto market. If you have a wallet, then you can argue that the crypto exchange is simply holding what you own as a “custodian” and that the ownership remains yours. But if you don’t have a wallet, you may find yourself simply holding a claim.  Here’s the interesting part. If you have a claim, that claim is calculated in the dollar value of what you have as of the date of the filing of the bankruptcy. So, any upside in the increase in value of the cryptocurrency after the filing of the bankruptcy case no longer belongs to you – any more than if your claim was for a gold bar. Your claim would not be for the gold bar but rather for the value of the gold bar as of the date of the filing of the bankruptcy case. Protect Your Digital Assets with a Cryptocurrency Lawyer Crypto investors are savvy and well-versed in all matters of cryptocurrency. However, bankruptcy is another story altogether. Some of the smartest lawyers in the country have been spending full time addressing the highly technical, unique, and brand-new issues that have arisen in these novel cryptocurrency bankruptcy cases. And as is frequently the case, the creditors, especially the individual creditors, are left blowing in the wind.  Yes, there are creditors’ committees representing the interests of unsecured creditors. But you want to be sure that your own individual interests are being represented and protected as well. For the most part, your cryptocurrency has not been stolen, but it has been mishandled. Undoubtedly, this will end up costing you dearly. If you’ve invested in cryptocurrency and the crypto is held in an exchange in bankruptcy, hire an attorney who is versed in Chapter 11 bankruptcy and cryptocurrency to represent your interests and recover your losses. At Lakelaw, we represent you fearlessly and zealously. Contact us today to schedule a free confidential consultation. The post Crypto Bankruptcies: How to Protect Your Digital Assets When Exchanges Collapse appeared first on Lakelaw.

 Business Insider has a very helpful article titled "How to file for bankruptcy ".The article can be found at https://www.businessinsider.com/personal-finance/how-to-file-for-bankruptcyPeople with questions about 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!

Everyone new to bankruptcy needs a guide to this specialized legal realm. Just as you can’t tell the players without a scorecard, it’s hard to make heads or tails of bankruptcy law when it’s new to you. Jon Hayes has what you need to tell priorities from the absolute priority rule.  Exemptions from exclusions. Denial […] The post Getting Started In Bankruptcy Law appeared first on Bankruptcy Mastery.

How Do You Handle Student Loans When Filing For Chapter 13? Student Loan Debt & Bankruptcy: Strategies for Managing Financial Obligations It’s no secret that student loan debt is overwhelming for many of today’s adults. A common reason why individuals reach out to a Chapter 13 bankruptcy attorney is because they are wondering what options they might have to reduce, discharge, or otherwise eliminate their student loan debt. Unfortunately, getting your student loan debt discharged in bankruptcy is extremely difficult and rare, although it can be successful in some circumstances. However, filing for bankruptcy can still be an option that may help you better manage your student loan debt. Once credit card debt, medical debts, and other financial obligations are discharged into bankruptcy, individuals often have more flexibility to make payments on their student loans.  Another approach is to file a Chapter 13 bankruptcy, which can give you some flexibility on the interest rates on your student loan debt. Once your other debts have been discharged, you may be able to make the remaining payments on your student loans without financial hardship. Consult with your bankruptcy attorney to discuss your options for using bankruptcy to manage student loan debt. Why are Student Loans Difficult to Wipe Out in Bankruptcy? Typically, debtors can have unsecured debts discharged through the bankruptcy process. This generally includes credit card debt, medical bills, and personal loans. Student loans are treated differently because they are an investment in your knowledge and skills with no tangible asset to reclaim. This means they cannot be automatically discharged in a Chapter 7 or Chapter 13 bankruptcy proceeding. In order to discharge your student loans, you’ll need to work with a zero-down bankruptcy attorney to file a separate lawsuit which is called an adversary proceeding. You and your bankruptcy attorney will need to prove to the court that paying your student loans will cause an “undue hardship” and that your circumstances are unlikely to change. Exactly how you can demonstrate that hardship will differ between states, but it is always a challenging obstacle, and not many individuals are able to meet the necessary criteria. How Can I Use Chapter 13 Bankruptcy to Manage Student Loan Payments? Even if you, like most people, cannot have your student loans discharged through bankruptcy, filing a Chapter 13 bankruptcy can still be a useful way to manage your payments. With this type of bankruptcy, your debts are essentially restructured and you’ll be able to keep all of your property and assets. You’ll make monthly payments that are based on your income to your bankruptcy trustee for 3-5 years. With this plan, car payments, student loans, and other debts will be included in your payment plan, even if they are not ultimately dischargeable. At the end of the payment period, your remaining debts that are eligible for discharge will be eliminated. How are Student Loans Handled in a Chapter 13 Bankruptcy? During your Chapter 13 bankruptcy pay period, you will make payments to your bankruptcy trustee, who will send a portion of your payments to your student loan lender(s). This money may reduce the principal or only cover interest, depending on the terms of your loan. Interest will continue to accrue on the balance of your student loan debt while you are in the Chapter 13 bankruptcy repayment period. Once you’ve finished making your monthly payments over your determined 3-5-year period, your bankruptcy trustee will discharge the remaining eligible debts, even if you have not paid them in full through your repayment plan. Although your student loan debt will not be discharged, your lender will recalculate your payments based on the new loan balance and help you set up a new payment schedule. Without the weight of your other debts, it’s likely that you’ll be in a better situation to afford your student loan payments. What Other Options Do I Have for Managing Student Loan Debt While in Bankruptcy? Just because you are going through a Chapter 13 bankruptcy doesn’t mean that other options become unavailable.  Assistance: You can apply for student loan assistance programs even while you are in a Chapter 13 bankruptcy. Reconsolidation: You may be able to seek a debt consolidation program that can lower your overall interest rate.  Modify Chapter 13 plan: Consult with your Chapter 13 bankruptcy attorney to determine whether it may be a good idea to modify your Chapter 13 payment structure. Once you’ve reconsolidated your student loans, it may be better to remove them from your bankruptcy plan. Dismiss your Chapter 13 case: A new student loan payment plan may mean that you don’t need a Chapter 13 bankruptcy at all, which can be beneficial to you in the long run. Your bankruptcy attorney can review the implications of dismissing your Chapter 13 case. Transfer to a Chapter 7 bankruptcy: If a student loan debt reconsolidation program means you can afford your student loan payments, transferring to a Chapter 7 bankruptcy might be a better option in some cases. Although filing for bankruptcy isn’t the right choice for everyone and it’s extremely rare for student loan debt to be discharged, it can be an effective way to make your student loan payments more manageable. Consult with My AZ Lawyers to discuss your financial options and whether filing for a Chapter 13 bankruptcy might be right for you, contact us today. This article is provided courtesy of Blake Goodman, P.C., an experienced bankruptcy attorney who has been providing financial solutions to clients in Hawaii and other U.S. states for three decades.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: [email protected] Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post How Do You Handle Student Loans When Filing For Chapter 13? appeared first on My AZ Lawyers.

Never be afraid to ask your mediator for help.  We all need a little help sometimes. To illustrate, let’s consider Audrey Wood’s Silly Sally, which is a children’s book written in rhyme.  I’d like to share a few excerpts. “Silly Sally went to town, walking backwards, upside down.” “Along the way, she met a pig, a silly pig, they danced a jig.” Sally continues walking – that is walking backwards upside down – but now the pig has joined her.  As she walks, she is joined by a dog and a loon. And then: “On the way, she met a sheep, a silly sheep, they fell asleep.” “Now how did Sally get to town, sleeping backwards, upside down?” “Along came Neddy Buttercup, walking forwards, right side up.” Neddy sees them.  And he stops to help. How does he help?  He tickles them to wake them up and then they all go to town “walking backwards, upside down.” Putting aside the rhymes and illustrations, which are a lot of fun, one important thing we learn from Silly Sally is that we all need a little help sometimes to get from here to there. How does this message translate to mediation? Sometimes we need help to get from conflict to resolution.  That’s why we mediate.  But sometimes we need help for more specific reasons.  When that happens, tell your mediator. Does your client need help to process their emotions?  Tell your mediator. Does your client have unrealistic expectations?  Tell your mediator. Do you need help understanding the other side’s views on something?  Tell your mediator. Do you recognize an obstacle to resolution?  Tell your mediator. Never be afraid to ask the mediator for help. Don’t be Silly Sally who was sleeping backwards, upside down. Instead, speak right up and let the mediator be Neddy Buttercup. You may just find your path to resolution. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  As a parent, I have spent a gazillion hours reading books to my children.  Oftentimes, these books teach me new ways to approach conflict resolution.  In this case, Audrey Wood’s “Silly Sally” inspired this post. Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - Help The post Mediator Insights: Help appeared first on Sylvia Mayer Law.

Have you ever said to your kids “use your listening ears”? Just as it is important that our children use their listening ears at home and at school, so too is it important that we use our listening ears in mediation. As a mediator, I work hard to listen to what the parties have to say about the facts and the law, and also what they say about their experience, emotions, and needs. Parties should work hard to listen too. Listen to the other side’s views on the facts and the law. Listen to learn about their wants and needs. Listen to the feedback from the mediator. Using your listening ears is a great way to find the path to resolution.  Disclaimer:  Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. MMM - Use Your Listening Ears The post Mayer Mediation Minute: Use Your Listening Ears appeared first on Sylvia Mayer Law.