USAToday has an article on why so many businesses are closing or filing for Bankruptcy. At Shenwick & Associates we seeing an increase in small businesses either closing or filing for Bankruptcy.
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
CELSIUS PREFERENCE CLAWBACK ADVERSARY PROCEEDINGS
As many readers of our posts are aware, we have represented numerous former Celsius customers who have been sued in preference clawback actions in Adversary Proceedings in the SDNY Bankruptcy Court.
We have also been retained by clients who have settled their cases and asked us to review the 10-page Settlement Agreements.
At Shenwick & Associates, our bankruptcy and crypto experience has aided us in settling many cases on very favorable terms for the defendants.
Recently, the Bankruptcy Court held a hearing and determined that outstanding settlement offers will expire at 5:00 p.m. on October 15, 2024. We believe it is in the best interest of most defendants to settle their actions as soon as possible.
Clients who are defendants can contact Jim Shenwick, Esq. to discuss pending lawsuits or settlements.
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
Bankruptcy Boom: Why More Young Adults Are Drowning in Debt!
Forbes has a very interesting and informative article about young adults, debt and surging bankruptcy filings by young people. The article can be found at https://www.forbes.com/advisor/debt-relief/bankruptcies-on-the-rise-gen-z-millennial-debt/
At Shenwick & Associates we can confirm that many young people are filing for Bankruptcy.
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
Recent reports highlight a growing concern for small businesses that received Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic. According to a Fast Company article, a significant number of these businesses are facing difficulties in repaying their loans. The article can be found at https://www.fastcompany.com/91183555/eidl-loans-covid-19-small-businesses
The Scale of the Issue
The Small Business Administration (SBA) distributed approximately 4 million loans through the EIDL program, totaling $380 billion. As of late 2023, more than $300 billion remained outstanding. Unlike some other pandemic-era financial assistance, EIDL loans are not forgivable and must be repaid in full.
Impact on Business Operations
Businesses with outstanding EIDL loans are experiencing several challenges:
Reduced access to additional credit
Limitations on new investments due to existing debt
Potential closure or bankruptcy for those unable to meet repayment terms
Our Experience
As legal professionals specializing in business debt issues, we've worked with hundreds of companies struggling with SBA EIDL loans. These loans range from $20,000 to $2,000,000. Our observations align with the broader trend:
The majority of our clients have been unable to make payments on their SBA EIDL loans
Many have found it impossible to refinance these loans
A significant number have either:
Closed their businesses
Filed for bankruptcy
Attempted to negotiate workouts with the SBA
Additional Complications
Businesses defaulting on SBA EIDL loans face further challenges:
Personal guarantee issues
Cancellation of debt tax implications
We have extensive experience counseling clients on these complex matters.
Seeking Assistance
If your business has defaulted on an SBA EIDL loan or you're dealing with personal guarantee issues related to these loans, it's crucial to seek professional advice.
Contact Jim Shenwick for assistance:
Jim Shenwick, Esq.
Phone: 917-363-3391
Email: jshenwick@gmail.com
To schedule a 15-minute telephone consultation, please use our online scheduling tool.
We specialize in helping individuals and businesses manage overwhelming debt.
As many of our readers are aware, Jim Shenwick, Esq., a New York State licensed Bankruptcy attorney with extensive crypto experience, is representing numerous Celsius customers who have been sued in preference claw back adversary proceedings.
- Retaining an experienced attorney
- Participating in mediation (paying half
the cost)
- Engaging in discovery with the debtor
- Potentially going to trial before a
bankruptcy judge
- "Ordinary course of business":
This defense typically does not apply in crypto cases where most parties
invested and withdrew funds in a single transaction.
- "New value": This defense
requires that the customer bought more crypto from Celsius after their initial
withdrawal. We have not encountered this scenario in our cases.
Our Recommendation
While each case has its unique facts, we generally recommend that Celsius defendants do the following:
2. Work towards
settling their cases as soon as possible and for the lowest amount achievable.
Jim Shenwick, Esq.
Email:
jshenwick@gmail.com
Phone: 917-363-3391
Disclaimer: This blog
post is for informational purposes only and does not constitute legal advice.
Each case is unique, and you should consult with a qualified attorney to
discuss your specific situation.
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
Client Review below:
" I contacted Jim seeking counsel as one of the 2000 defendants in the Celsius crypto bankruptcy clawback case. After a few short conversations with him, I quickly knew he was the right person for the job. Once the retainer was paid, Jim dropped everything and fully dedicated himself to my case. In just a matter of a few days, Jim had negotiated a very favorable settlement. I highly recommend Jim if you find yourself in a similar situation and are in need of representation"
My pleasure to help! Thanksfor the review. Jim
Celsius Bankruptcy Claw Back Adversary Proceedings in SDNY Bankruptcy Court Settlement Update
Jim Shenwick, Esq. is proud to announce that he just settled another Celsius Bankruptcy Claw Back Adversary Proceedings in the SDNY.
The client had been sued for over $700,000. Based on a review of Exhibit A to the Complaint, which listed the transactions to be clawed back, we discovered that Exhibit A overstated the transactions in the relevant 90-day period, the cryptocurrency valuation was incorrect, and the client had a "New Value" defense.
When all was settled, the client paid back a small percentage of the $700,000 sought.
Clients who are being sued for preference clawback's should contact Jim Shenwick, Esq
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
Celsius Network LLC, the crypto company, filed for Chapter 11 bankruptcy. Pursuant to their confirmed Chapter 11 plan, they have commenced 2,000 adversary proceedings in the Southern District of New York, seeking to claw back monies withdrawn by Celsius customers 90 days prior to the bankruptcy filing or from April 14, 2022, through July 13, 2022 (the “Preference Period”).
The 2,000 lawsuits are being brought by ASK LP (Debtor’s preference litigation counsel)
Jim Shenwick, Esq. has defended over 100 adversary proceedings for various causes of action, including preferences and fraudulent conveyances. He is familiar with cryptocurrency and has a working relationship with ASK LP.
Jim Shenwick was recently retained by a client to defend against a Celsius lawsuit seeking to
claw back over $200,000 withdrawn from Celsius prior to the bankruptcy filing. We have commenced settlement negotiations and are optimistic about a very favorable settlement for the client.
We have also been approached by another former Celsius customer who was sued in a clawback action.
Clients who have been sued or have questions about the clawback lawsuits are advised to contact Jim Shenwick as soon as possible to discuss their options or to seek representation in these cases.
Jim Shenwick can be reached at 917 -363-3391 or at jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
Commercial Chapter 11 Bankruptcies see a 34% increase in the first half of 2024.
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We help individuals & businesses with too much debt!
