The Toledo Blade is reporting that millions of businesses need to start paying back coronavirus loans. The article states that nearly 3.8 million small business owners took out Economic Injury Disaster Loans (known as EIDL loans) from the federal government, averaging roughly $100,000 per loan, according to the Small Business Administration. These 30-year loans carry an interest rate of 3.75 percent for businesses and require repayment.The first EIDL loan monthly payments will commence in January 2023 and the article reports that 2.6 million businesses across the country will owe money by that date.The article can be found at https://www.toledoblade.com/business/development/2023/01/14/businesses-pandemic-paying-back-coronavirus-loans/stories/20230114082Jim Shenwick, Esq.   [email protected]   212 541 6224

 Office Lease Closing, Termination, or Surrender in New York City As many readers of our emails and blog are aware, at Shenwick & Associates we are helping many small businesses close, terminate or surrender their office leases in New York. As a result of the cooling labor market, many industry experts predicted employers would have more leverage to force their employees back to work. However, with the recession and troubled economy in New York City, we are seeing more and more small businesses close their offices and surrender, abandon or terminate their leases to cut costs. A recent study by a Columbia business professor stated that to provide a seat for an employee in Manhattan costs the employer  $16,000 per year. It is important to note that the Columbia business professor referred to a "seat" rather than an "office". Providing an office for every employee would cost substantially more than $16,000 per year. We were recently retained by a small garment center company that was struggling and wanted to move to a remote work structure to save business and money. The facts of the case are interesting and illustrative: the company owed $65,000 in rent and additional rent to its landlord. For them to be released from the guaranty, they needed to give the landlord three months notice and be current on their rent (total amount owed to landlord over $100,000). Jim Shenwick, Esq. was retained by the company and we reviewed the commercial lease, the guaranty, the financials' for the company and the guarantor. We formulated a strategy and negotiated a very favorable deal for our client. As part of the agreement, the tenant vacated the space quickly, abandoned its buildout to the landlord, forfeited its security deposit, and paid the landlord $25,000. The landlord agreed to release the company and the guarantor.The result  was a "win/win" for all parties,  the landlord obtained possession of its space quickly without incurring legal fees and court costs, the company saved approximately $75,000 in rent payments and the guarantor was not sued and did not have to file for bankruptcy. Jim Shenwick, Esq has experience in commercial leasing, workouts and bankruptcy and clients can contact him at 212 541 6224 or [email protected]   Excerpts from the Elon Musk story are below.Elon Musk, who was a skeptic of the benefits of remote work, recently announced that he was closing the Twitter offices in Seattle.  The Seattle Times had a fascinating article about musk's move, the article can be found at https://www.seattletimes.com/opinion/musks-about-face-on-remote-work-shows-its-value-in-recession/ The article stated in part that "As part of ongoing cost-cutting measures under new owner and CEO Elon Musk, Twitter is shutting down its Seattle offices and instructing employees to work remotely. That’s despite Musk earlier claiming that remote workers are only “pretending to work” and banning remote work at Twitter upon taking it over in early November.So what explains his change of heart? Apparently, it’s the costs associated with the company’s Seattle office: rent and services such as cleaning and security.The fact that Musk — an extreme skeptic of remote work — acknowledged its cost-cutting benefits illustrates the future of remote work for the U.S. economy. It highlights the misleading nature of many headlines about how an impending recession would lead to the end of remote work. They claim that a cooling labor market will give executives more control to require employees to return to the office. That’s because many employees prefer to work remotely and most executives want their employees in the office.However, the reality is much more complex. Of course it’s true that during a recession, employers have more leverage. At the same time, executives need to focus on maximizing the return on investment from their employees.In times of economic growth, executives have more freedom to make decisions based on their personal preferences and intuitions. But during a recession, they may need to hunker down, be more disciplined, and rely on data to make decisions that make the most financial sense for the company — like Musk choosing to have Twitter staff work remotely for the sake of cutting costs. This focus on profitability over personal preferences benefits remote work."Jim Shenwick, Esq [email protected] 212541 6224

 The New York Times has an article about "What to Know About Biden’s Income-Driven Repayment Proposal". The story can be found at https://www.nytimes.com/2023/01/10/your-money/student-loans-income-driven-repayment.html.The Income-Driven Repayment Proposal would tie a  borrowers’ monthly payments for their student loan debt to their income and family size, and after a set number of years, any remaining debt is forgiven.  Jim Shenwick, Esq.  212 541 6224  [email protected]

The Cheapest Eggs At The Grocery Store Right Now Are Seven Dollars   And Other Reasons You Shouldn’t Feel Bad About Filing Bankruptcy Even if you don’t like to eat eggs on their own, there are probably eggs in several of the foods you consume on a regular basis. That’s me- I’ll only eat them scrambled, begrudgingly, with hot sauce and hopefully some cheese and diced onions. But the other day I saw some chai tea mix in my cabinet and thought that could be a good addition to chocolate chip cookies with butterscotch. So, I made my merry way over to Safeway to buy eggs and chocolate chips and I was aghast. Seven dollars for the cheapest eggs? I remember a not-so-distant time in the past when eggs cost $2 or less. First of all, $7 for eggs is highway robbery. Second, while some cities have their own minimum wages set higher than the state, Arizona’s minimum wage is $13.85 per hour. If you take out income taxes and add sales tax on the eggs, someone working for minimum wage can barely buy a carton of eggs with an hour’s labor. That’s not including gas to get to the store, hot sauce- and you might as well forget about cheese and diced onions. In the past, our bankruptcy clients seemed to be plagued by poor decisions or just plain bad luck. Now, it’s easy to imagine how someone could fall into unmanageable debt to maintain a decent standard of living. If you’re struggling with debt and would like to learn more about bankruptcy, call our firm for your free consultation at 480-448-9800. Buying A Home? Doubtful If you own your own home, that’s great for you. I’m so happy for you. You probably bought it a few years ago before the market went out of control. But every time I think I’m getting somewhere with my savings, I check Zillow and cry because I can’t even afford a dumpy one-bedroom condo. Big businesses, including foreign corporations, are buying up our homes and holding them at ransom. They are tearing down businesses on any lot large enough to hold an apartment building, charging just enough that their tenants will never be able to save up for a down payment on a house. The median income in Arizona for 2021 was $69,056– the data for 2022 won’t be available until September 2023. For November 2022, the average home price in Arizona was $410,000. The mortgage on a $410,000 house will be about $1,400, which is affordable for someone who makes the median income- but only if they put 20% down on the house. How would this hypothetical person who makes the median income save up $82,000? The average rent for a one-bedroom in most Arizona cities has soared past $1,500. That only leaves this person about $28,000 per year to save and for ALL of their other expenses (including $7 eggs). Additionally, home prices keep rising, so by the time that person saves up $82,000, they will probably need more than $82,000 for a down payment. It’s hard to see a path to homeownership for the middle class right now without inheritance or help from family members. How Do People Afford Kids? Kids are expensive and always have been, but what I’m worried about is the privatization of our school system. In my hometown, it was extremely inconvenient to go to any school besides the local high school, so the rich kids and the poor kids got the same access to education. Many people dream of being teachers and impacting their students’ lives. I know a few of them, but they have either quit already to work something that can actually pay their bills or are worried they won’t even be able to make it through this semester*. Instead of raising our teachers’ salaries to a living wage, Arizona began offering a tax credit for families to send their children to private schools. This gives the rich a bonus for doing what they were already doing and doesn’t make it affordable for the vast majority of families to send their kids to private schools. Part of the American dream is that if you study/work hard enough, you can be anything you want to be. If the school system shifts so that a student needs to go to a private school to get a decent education, the American dream dies. * Because the parents are entitled and raising entitled children. Don’t be part of the problem, be part of the solution. Big Companies Want You To Feel Bad About Bankruptcy & Lawsuits As long as there have been big companies, big companies have been trying to influence the public’s psyche for profit. One innovator in this field was Edward Bernays. Bernays was the nephew of Sigmund Freud and detailed how he helped companies use marketing to change public opinion in his book, Propaganda. One of his most “successful” works was changing how the United States viewed women who smoke cigarettes. Smoking cigarettes in public was considered taboo for women in the 1920s until Bernays marketed a campaign branding cigarettes as “freedom torches” that women could smoke in public with pride. It essentially made smoking a cigarette a feminist act for a woman, with Big Tobacco raking in the cash. As modern times evolved, big companies needed to change public opinion, not just about products but attitudes about the public’s obligations to corporations. Personal injury suits became more and more common, and they were (and still are) costing big companies millions of dollars. One of the most famous personal injury suits in the United States was the McDonald’s hot coffee case. Only someone who is greedy and litigious would sue a company for serving the coffee she ordered hot, right? That’s just what McDonald’s wants you to believe. In 1994, Stella Liebeck ordered a hot coffee at the McDonald’s drive-through. The 79-year-old suffered third-degree burns when she spilled the coffee in her lap. She eventually sued and won a hefty injury award, including a punitive damages award of nearly $3 million. The case made headlines, with Liebeck being viewed as a scam artist and opportunist, and spreading an attitude of litigiousness as a negative thing. McDonald’s legal and media team was sure to get this message across- people who sue McDonald’s are scumbags. However, the jury didn’t award $2.7 million in punitive damages, or two days of McDonald’s coffee revenue, for no reason. Liebeck’s third-degree burns covered 6% of her body (her crotch) and there were lesser burns on 16% of her body. She lost 20 pounds, or 20% of her body weight, while in recovery from the incident. She suffered permanent disfigurement and temporary disability, and her daughter had to care for her for a few weeks. She requested McDonald’s reimburse her $20,000, with her medical bills being $10,500 and the rest to cover future medical expenses and her daughter’s loss of income. McDonald’s countered with $800. While Liebeck’s injuries were gruesome, it may seem reasonable for McDonald’s to offer only a percentage of her damages- after all, shouldn’t she be responsible for spilling her own coffee? However, Liebeck’s lawyers tested coffees all around the city, and McDonald’s coffee was held at temperatures about 20 degrees Fahrenheit hotter than any other establishment. McDonald’s coffee could cause third-degree burns in 3 seconds, while other coffees in the city would take 20 seconds to cause third-degree burns. The jury also heard evidence about the melting point of McDonald’s Styrofoam coffee cups, as well as more than 700 reports of McDonald’s coffee burns and settlements in excess of $500,000. McDonald’s knew their coffee was being served too hot and burning people, but they just didn’t care. The jury found that Liebeck was 20% at fault for her injuries, and McDonald’s was 80% at fault. They awarded Liebeck $200,000 in compensatory damages, such as medical bills, future medical expenses, and pain and suffering. However, because of McDonald’s bad faith (they also refused $90,000, $225,000, and $300,0000 settlement offers), the jury awarded $2.7 million in punitive damages. Punitive damages are meant to punish the defendant, and they need to be substantial for a company as big as McDonald’s to notice. While McDonald’s lost Liebeck vs. McDonald’s, they used it as an opportunity to change public opinion and wage war against “frivolous” lawsuits. This may seem like it doesn’t have much to do with bankruptcy- but in the end, you should always be aware that big companies want you to treat them with the dignity and respect that you would treat another human being, but they will never offer you the same in return. If you are struggling with debt, American Express and Capital One will be fine if you file bankruptcy and erase your credit card debts to them. You are not bad, litigious, opportunistic, or frivolous for wanting to make a better life for yourself and your family. Bankruptcy Might Help You With Your Financial Goals Depending on your financial situation, bankruptcy could be a powerful tool to get you back on your feet and headed in the right direction. In this financial climate, no one should be embarrassed or guilty to at least research the protections that bankruptcy offers. Discharging medical bills, old taxes, credit cards, and other debts could allow you to live a more comfortable lifestyle. You deserve the cheese and diced onions. Get in touch with My AZ Lawyers by calling us at 480-448-9800 to schedule your free consultation today.   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 The Cheapest Eggs At The Grocery Store Right Now Are Seven Dollars appeared first on My AZ Lawyers.

 US Bankruptcy Court Rules Celsius Deposits Belong to the Firm. This story can be found at  the bitcoin website at https://news.bitcoin.com/us-bankruptcy-court-rules-celsius-deposits-belong-to-the-firm/There ruling is bad news for people or companies who had deposits at Celsius, but may be good news for Celsius' unsecured creditors. At Shenwick & Associates, we are helping creditors file Proof of Claim in the Celsius and FTX cases.  Jim Shenwick, Esq   212 541 6224  [email protected]

When dealing with medical debt and creditors, individuals in New Jersey might feel at a loss. To address their medical debt once and for all, debtors can file for bankruptcy in New Jersey. If you have considerable medical debt in New Jersey, consider filing for bankruptcy. Bankruptcy can help you address your debt through a repayment plan or liquidation plan, removing the financial strain medical debt may be causing you and your family. Depending on your needs and finances, filing for Chapter 7 or Chapter 13 bankruptcy to eliminate medical debt may be beneficial. Within a relatively short period of time, you can address your medical debt, repay creditors, and move forward debt-free by filing for bankruptcy in New Jersey. Our lawyers are here to help medical debtors in New Jersey regain their financial stability by filing for bankruptcy. For a free case evaluation with the New Jersey bankruptcy attorneys at Young, Marr, Mallis & Associates, call today at (609) 755-3115. When Should You File for Bankruptcy to Address Medical Debt in New Jersey? Medical debt can feel oppressive, following individuals through life and damaging their financial stability. If you are dealing with substantial medical debt in New Jersey and are looking for a way to regain your footing, filing for bankruptcy may be the solution you need. Bankruptcy is a tool used by many to eliminate certain qualified debts. Some might think that filing for bankruptcy is exclusively for those having business or income issues. In reality, bankruptcy can help you find stability when facing a wide range of debts, including medical debt. While there is no type of bankruptcy that addresses medical debt specifically, you can file for bankruptcy to target any medical debt you may have. Because medical bills are considered unsecured debts, they are relatively easy to rid yourself of via bankruptcy. When you file for bankruptcy to address medical debt in New Jersey, an automatic stay will go into effect. This prevents creditors, like hospitals, from reaching out to you and harassing you to meet payments. Automatic stays can provide immediate relief to debtors struggling with overwhelming medical debt. If you are hesitant to file for bankruptcy to address your medical debts, speak with our attorneys. Our North Jersey bankruptcy attorneys can explain the benefits of taking this route and how doing so can help you regain stability after struggling with medical debt for so long. Which Type of Bankruptcy Can Help You Eliminate Medical Debt in New Jersey? When deciding to file for bankruptcy to eliminate medical debt in New Jersey, debtors must choose which type of bankruptcy they wish to file for. Depending on your needs, Chapter 7 or Chapter 13 bankruptcy may be preferable. Our New Jersey bankruptcy attorneys can lay out the differences between these two types of bankruptcy so that you can address your medical debt and exit bankruptcy debt-free in New Jersey. Chapter 7 Filing for Chapter 7 bankruptcy in New Jersey can help you eliminate your medical debt quickly but at a cost. Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy. This means that certain assets of yours, like your home or your car, may be liquidated to pay off medical creditors in New Jersey. For debtors with families and others that depend on them and their assets, filing for Chapter 7 bankruptcy may not be ideal for addressing medical debt. Not everyone can file for Chapter 7 bankruptcy to eliminate their medical debt. Eligibility for Chapter 7 bankruptcy is needs-based, meaning debtors must pass a means test in order to qualify. Essentially, your income over the past several months must be insufficient to pay off some of your medical debt in order for you to qualify to file for Chapter 7 bankruptcy. Our New Brunswick bankruptcy attorneys can assess your income and current medical debt to determine whether you are a good candidate for Chapter 7 bankruptcy. Chapter 13 Depending on your situation, you may be able to file for Chapter 13 bankruptcy to address your medical debt in New Jersey. Chapter 13 bankruptcy does not work through liquidation of assets but instead through a repayment plan. After you file, our lawyers will submit a repayment plan to the court detailing how you intend to pay creditors based on your income. This enables debtors to address medical debt over time without worrying about harassment from creditors. In order to qualify to file for Chapter 13 bankruptcy in New Jersey, debtors must pass a means test. Essentially, debtors must earn a sufficient monthly income to meet the requirements of their repayment plan to creditors. If you do not earn enough income, you may not be able to use Chapter 13 bankruptcy to address your medical debt in New Jersey. When Can You Be Free from Medical Debt After Filing for Bankruptcy in New Jersey? After filing for bankruptcy in New Jersey, you can remove all of your medical debt within a matter of months or years. Once you do, you can be debt-free, allowing you to move forward with your life and regain your financial stability. Depending on the type of bankruptcy you file for to address medical debt, the process may take longer. Because Chapter 7 bankruptcy works through liquidation, it is generally the fastest option. Often debtors in New Jersey can remove medical debt within half a year by filing for Chapter 7 bankruptcy. Chapter 13 bankruptcy generally takes longer to complete, especially if debtors have substantial medical debt. If you hire our Trenton bankruptcy attorneys to configure a comprehensive and efficient repayment plan, you may be able to remove your medical debt within three to five years. Ask Our New Jersey Lawyers About Filing for Medical Bankruptcy Today If you need to eliminate medical debt, our attorneys can help you do so by filing for bankruptcy. For a free case evaluation with the Marlton, NJ bankruptcy attorneys at Young, Marr, Mallis & Associates, call today at (609) 755-3115.

Filing for bankruptcy can seem intimidating to debtors, especially if they also have a reverse mortgage. Our attorneys can help you navigate bankruptcy so that you don’t your reverse mortgage agreement is unaffected. In many cases, debtors can file for bankruptcy in New Jersey if they also have a reverse mortgage. However, it is important for debtors to understand the risks of doing so. Our attorneys can determine which type of bankruptcy you are eligible to file for based on the amounts of your regular reverse mortgage payments. To ensure you do not risk losing your home while under bankruptcy with a reverse mortgage, reach out to our lawyers if you are struggling with overwhelming debt and need help in New Jersey. We’re here to help you eliminate debt through bankruptcy, even if you have a reverse mortgage. For a free case evaluation with the New Jersey bankruptcy lawyers at Young, Marr, Mallis & Associates, call today at (609) 755-3115. Can You File for Bankruptcy if You Have a Reverse Mortgage in New Jersey? Filing for a reverse mortgage can help you supplement your income and remain financially stable in your retirement. Unfortunately, if other bills and expenses have begun to pile up and become overwhelming, you may be at a loss for what to do. If you are struggling with debt, contact our Trenton bankruptcy lawyers. You may be able to file for bankruptcy despite having a reverse mortgage. A reverse mortgage is a financial agreement between a homeowner and a lender. Essentially, a homeowner will release a certain amount of equity in their home to a lender in exchange for regular payments. Often, seniors and those nearing retirement opt for a reverse mortgage to have a reliable stream of income as they age. In some cases, reverse mortgages can complicate bankruptcy. While many people can file for bankruptcy even with a reverse mortgage in New Jersey, the process can be complex. Contact our attorneys if you need help regaining your financial stability and eliminating debt. Although the terms of your reverse mortgage may enable you to file for bankruptcy with minimal risk, it is still important to ensure that your assets and reverse mortgage payments will be unaffected throughout the process. What Happens to Your Reverse Mortgage Payments When You File for Bankruptcy in New Jersey? Filing for bankruptcy can be a smart choice for people dealing with overwhelming debt in New Jersey. However, it is important to understand what happens to your reverse mortgage when you are under bankruptcy so that you are sufficiently prepared to meet the requirements of a possible repayment plan. Most likely, your reverse mortgage payments will temporarily stop when you file for bankruptcy in New Jersey. Depending on the type of bankruptcy you file for, whether Chapter 7 or Chapter 13, it may be some time before your debt is eliminated. To ensure you can support yourself during that time, you should have sufficient savings or other income streams. Because many people who opt for a reverse mortgage are retired or near retirement, and their reverse mortgage payments may be their primary source of income, saving is essential. Chapter 13 bankruptcy works via repayment plans and can take several years. In order to meet your payment dates to creditors, it is important that you have sufficient savings or income outside of your reverse mortgage payments. Remember, you will likely not receive any reverse mortgage payments while you are under bankruptcy, so speak with our Piscataway bankruptcy lawyers to learn how to prepare. Can Your Reverse Mortgage Payments Make You Fail the Means Test for Bankruptcy in New Jersey? Regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy in New Jersey, you will have to pass a means test. Depending on the size of your reverse mortgage payments, your options for which type of bankruptcy you file may be limited. In order to file for Chapter 7 bankruptcy, you cannot earn a significant income. Chapter 7 is a liquidation bankruptcy. Instead of debtors paying back creditors through a repayment plan, debtors’ assets will be liquidated. Earning too much from reverse mortgage payments may disqualify you from filing for Chapter 7 bankruptcy in New Jersey. The opposite can be said for those who wish to file for Chapter 13 bankruptcy with a reverse mortgage in New Jersey. In order to be eligible for Chapter 13 bankruptcy, debtors must earn sufficient income. If you do not earn enough from your reverse mortgage payments, and if that is your only source of income, you may not have sufficient income to meet the requirements of a repayment plan. Our Mount Laurel bankruptcy lawyers can determine which type of bankruptcy you can file based on your reverse mortgage payments and other income. Then, our attorneys can help you enter bankruptcy and address any debt you may have so that you can regain your financial stability. Is Your Home in Jeopardy if You File for Bankruptcy in New Jersey with a Reverse Mortgage? Depending on the type of bankruptcy you can file for in New Jersey, your home might be at risk if you have a reverse mortgage. Our attorneys can protect your home so you can exit bankruptcy debt-free while retaining certain assets. Because Chapter 7 bankruptcy works through liquidating your assets, your home might be at risk if you have a reverse mortgage. This depends on how much equity in your home you have relinquished and how much equity you still retain. Certain reverse mortgage agreements have a caveat that allows a lender to take a person’s home should they file for bankruptcy. Our New Jersey bankruptcy lawyers can assess your current reverse mortgage agreement to ensure you don’t lose your house when trying to eliminate debt. Because Chapter 13 bankruptcy does not work via liquidation, there is less risk to debtors with reverse mortgage agreements. Ask Our New Jersey Lawyers About Filing for Bankruptcy Today If you need to file for bankruptcy and have a reverse mortgage, our attorneys can help. For a free case evaluation with the Marlton, NJ bankruptcy lawyers at Young, Marr, Mallis & Associates, call today at (609) 755-3115.

The New York Times has an article that warns about a bankruptcy filing by Bed Bath & Beyond. The article can be found at https://www.nytimes.com/2023/01/05/business/bed-bath-beyond-bankruptcy.htmlLandlords and creditors who are owed money by BBB, should take appropriate action prior to a bankruptcy filing by BBB. Landlords and creditors who are owed money by BBB should contact a bankruptcy attorney as soon as possible. Jim Shenwick, Esq   [email protected]  212-541-6224

The Sun is reporting that over 100 retail stores will close in 2023. The article can be found at  https://www.the-sun.com/money/7035971/retail-closures-kohls-nordstrom-under-pressure/Suppliers to these chains should proceed with caution. Jim Shenwick, Esq  212-541-6224  [email protected]

What Is Bankruptcy? Bankruptcy is a legal process that allows individuals or businesses to obtain relief from their debts when they are unable to pay them. In the United States, bankruptcy is governed by federal law, specifically the Bankruptcy Code. There are several different types of bankruptcy that individuals and businesses can file, each with […]