Commercial Chapter 11 Bankruptcies see a 34% increase in the first half of 2024

Commercial Chapter 11 Bankruptcies see a 34% increase in the first half of 2024.

 See  https://www.conchovalleyhomepage.com/news/national-news/commercial-chapter-11-bankrupcies-see-a-34-increase-in-the-first-half-of-2024/amp/

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!

After Dismissal of Bankruptcy Case, Here’s What’s Next for Giuliani

 

After Dismissal of Bankruptcy Case, Here’s What’s Next for Giuliani?

 Without the protection of Chapter 11, the former mayor and Trump lawyer could have his assets seized and sold by creditors. See the article in the New York Times. The article can be found at https://www.nytimes.com/2024/07/13/us/politics/rudy-giuliani-bankruptcy-case.html?smid=nytcore-android-share

When Mayor Giuliani filed for Chapter 11 bankruptcy, he received the benefit of Section 362 of the Bankruptcy Code, which provides an automatic stay against lawsuits and enforcement of judgments so the debtor can reorganize. With the dismissal of the bankruptcy case, Mayor Giuliani loses the protection of the automatic stay, and his assets can be liened or levied by creditors. 

Individuals with questions about the automatic stay or personal bankruptcy 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!

Companies going bankrupt at the fastest pace since 2020 in historic surge

The New York Post is reporting that "Companies going bankrupt at the fastest pace since 2020 in historic surge".  They stated that there is a “historic surge” of corporate bankruptcies underway in the US, as debt-saddled companies struggle to adjust to the new era of high interest rates. The story can be found at 

https://nypost.com/2024/07/11/business/companies-going-bankrupt-at-the-fastest-pace-since-2020-in-historic-surge/?utm_source=gmail&utm_campaign=android_nyp

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!

CHAPTER 13 NEW DEBT LIMITS

Based on the expiration of a law, there are now two separate debt limits for Chapter 13 cases. To file a Chapter 13 bankruptcy case, a debtor must have no more than $465,275 in unsecured debt and no more than $1,395,875 in secured debt (only noncontingent, liquidated debt is included in each instance).

For those clients interested in filing for chapter 13 or chapter 7 personal Bankruptcy please 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 held individuals & businesses with too much debt!

Small Business Bankruptcy Rules get Tighter after US law expiration Reuters

Reuters reports that the debt limit for Subchapter V Bankruptcy for small businesses, initially set at $2.7 million, was temporarily raised to $7.5 million by the Coronavirus Aid, Relief, and Economic Security Act passed in 2020. However, this limit has now reverted to $2.7 million following the expiration of the Coronavirus Aid law on Friday, June 21, 2024..  

The story can be found at https://www.reuters.com/legal/government/small-business-bankruptcy-rules-get-tighter-after-us-law-expiration-2024-06-21/

The reduced debt limit will reduce the number of small business that can file for SubV Bankruptcy. Hopefully lawmakers will increase the debt limit in the future. People or businesses with questionings about Subchapter V 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 held individuals & businesses with too much debt!

The SBA approved millions of loans during Covid. It now sits at the center of a bankruptcy wave. The Business Journals

The Business Journals is reporting that SBA Loans have created a wave of bankruptcy filing.  The story can be found at https://www.bizjournals.com/charlotte/bizwomen/news/latest-news/2024/06/sba-covid-eidl-loan-bankruptcy-congress-banks.html

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 held individuals & businesses with too much debt!

Asset Protection Planning

Many clients have contacted us recently regarding Asset Protection Planning. This post discusses Asset Protection Planning and the strategies used in it.

What is Asset Protection Planning? Asset protection planning refers to the legal techniques and strategies employed to protect an individual's assets from creditors or liabilities.

Is Asset Protection Planning legal? Yes, provided that the strategies used are not fraudulent conveyances or made with the intent to defraud creditors. In counseling clients who request Asset Protection Planning, we review the property they own, their existing and future liabilities, and their budget.

In counseling clients who request Asset Protection Planning, we review the property owned by the client, their existing liabilities, future liabilities, and their budget.

For example, if a client is married and owns a house, is the house held as tenancy by entirety with their spouse? If a client owns a house, are they living in it so they can claim the NYS homestead exemption? If they have a pension plan (such as IRA, SEP, or 401(k)), are those plans fully funded?

Other opportunities may exist as well.

However, if a client is subject to a pending lawsuit or claim, the Asset Protection Planning opportunities are limited. Those clients with questions about Asset Protection Planning 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 and businesses with too much debt!

 

SubV Chapter 11 Bankruptcy Debt Limit

The SubV Chapter 11 Bankruptcy Debt Limit Historical Background:

Prior to passage of the Cares Act, the debt limit for SubV Chapter 11 cases was $2,725,625. With passage of the Cares Act, the debt limit was raised to  $7.5 million thru  June 21, 2024.   

If Congress does not otherwise amend or enact a new law, the debt limit will revert to $2,725,625 on June 21, 2024. 

Fortunately, a bill is pending in Congress that will extend or increase the debt limit to $7.5 million. This bill has the support of debtors, creditors, and bankruptcy attorneys. One might wonder why Congress does not enact a bill to permanently raise the debt limit to $7,500,000.

Clients or their advisors with questions about Sub V cases should contact Jim Shenwick

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 held individuals & businesses with too much debt!

How to Compromise an SBA Defaulted Loan that has been transferred to Treasury Offset Program (TOP)

 

How to Compromise an SBA Defaulted Loan that has been transferred to Treasury Offset Program (TOP)

 

In a prior blog post we discussed “How to Recall Defaulted SBA Loan from Treasury Offset Program TOP” which blog post can be found at https://shenwick.blogspot.com/2024/04/how-to-recall-defaulted-sba-loan-from.html

If you have a defaulted SBA loan that has been transferred to the Treasury Offset Program (TOP) and you are unable to recall the loan from TOP to the SBA, your options are: 1. Do nothing, 2. Close the business, 3. Negotiate a Compromise with TOP, or 4. File for bankruptcy and halt the TOP offset with the automatic stay provided by Section 362 of the Bankruptcy Code.

In this blog post we will discuss how to Compromise an SBA Defaulted Loan that has been transferred to TOP.

Please note that the forms required to be submitted to TOP to Compromise the claim are different from the offer in compromise forms submitted to the SBA for an offer in compromise.

Documents Required:

1  Provide a letter on your letterhead explaining the reasons for the default on the SBA loan, why it should be reduced or compromised, the original amount of the defaulted SBA loan, the proposed amount to compromise the defaulted SBA loan, the source of funds for this settlement, and a detailed explanation of the financial hardship involved for you or your business.

2  A Financial Statement for Business or Individual (which can be obtained online from TOP, Department of Treasury Compromise Forms) must be completed and submitted.

3   Submit the last 2 years of the Business or Individual tax returns.

4   The proposed payment should be a lump sum payment.

5   Submit 2 Months of  bank statements for the individual or the business &

6   Submit 2 utility bills for for the individual or the business.

Then  call TOP at 800-676-5737 to determine who the documents should be faxed or emailed to. 

Please note that compromising a claim with TOP is difficult to do!

For those clients or advisors who would like to discuss compromising their  SBA Defaulted Loan (that has been transferred to TOP)  with Jim Shenwick, Esq. please call Jim Shenwick, Esq  at 917 363 3391 or email him at  jshenwick@gmail.com

Or please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!

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How to Recall Defaulted SBA Loan from Treasury Offset Program TOP 

https://shenwick.blogspot.com/2024/04/how-to-recall-defaulted-sba-loan-from.html

Treasury Offset Program (TOP) and SBA EIDL Loans

https://shenwick.blogspot.com/2024/04/treasury-offset-program-top-and-sba.html

U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loans

https://shenwick.blogspot.com/2024/03/us-seeks-to-collect-on-up-to-20-billion.html

SBA EIDL Loan Charge Offs

https://shenwick.blogspot.com/2024/02/sba-eidl-loan-charge-offs.html

SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS

https://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-penalties.html

Defaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loans

https://shenwick.blogspot.com/2023/12/defaulted-sba-eidl-loans-in-reversal-us.html

SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023

https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute-of.html

SBA EIDL Penalties if an SBA EIDL Loan is Not Repaid

https://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loan-is.html

Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html

SBA EIDL HARDSHIP PROGRAM

https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html

Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code

https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html

Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!

https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html

EIDL LOAN WORKOUTS AND BANKRUPTCY    https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html

EIDL Loan Default Questions & Answers

https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html

EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html

EIDL Defaulted Loans

https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html

New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html

EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM

https://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html

PPP & EIDL Fraud

https://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html

Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loans

https://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html

 

How to Recall Defaulted SBA Loan from Treasury Offset Program TOP

 

How to Recall Defaulted SBA Loan from Treasury Offset Program TOP 

Many clients who have defaulted on an outstanding SBA EIDL loan have contacted us regarding how to “Recall” their loan from the U.S. Treasury Department Treasury Offset Program (“TOP”) back to the Small Business Administration (SBA) to avoid the 30% TOP penalty and to void setoff of Government payments to defaulted borrowers.

First, we note that recall is  difficult to do!

Advice and/or  steps on how to recall a defaulted SBA loan or what to do if a defaulted SBA loan cannot be recalled are provided below.

 1. Improper Transfer.  If you did not receive the Official 60-Day Notice from the SBA, that your SBA loan was in default and  would be transferred to TOP for offset, use this error as a reason for recall and contact both TOP and SBA and argue that the loan was transferred to TOP in  error and without proper procedure. 

2. Hardship Grounds. Documenting a hardship making it impossible for further payment of the SBA EIDL loan such as disability, a disaster or the closing or bankruptcy of a business if Government payments are offset (not paid) to the SBA loan borrower. 

3. Intent to Cure Default.  If the borrower pays off delinquent amounts and late fees and intends to stay current on future payments, SBA may be willing to call the loan back to give another chance.

4. Loan Payoff. Payoff the amount of the outstanding SBA loan balance to stop the offset. 

5. Loan Compromise/Offer in Compromise. Contact the SBA or TOP and request a compromise involving negotiating a lump sum reduced payment or a reduced payment over a short period of time (Installment Payment)  for less than the full amount owed. The reduced amount to be paid  is based on “facts & circumstances” of the case, will require many forms to be completed and submitted to TOP and SBA, will require negotiations with Government officials and is at the discretion of the Government. 

For those readers wishing more information on offer in compromise please see

EIDL loans and bankruptcy, which can be found at http://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html 

and  a post on defaulted EIDL loans and the SBA Offer in Compromise program.  That post can be found at http://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html

6. File for Bankruptcy. When the borrower files for bankruptcy, section 362 of the Bankruptcy Code provides for an automatic stay, which stops the Offset and the business depending on the Bankruptcy filed can attempt to reorganize or liquidate. 

For information or guidance on Recall please 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 held individuals & businesses with too much debt!

----

To review Jim Shenwick’s other SBA EIDL Posts go to: 

Treasury Offset Program (TOP) and SBA EIDL Loans

https://shenwick.blogspot.com/2024/04/treasury-offset-program-top-and-sba.html

U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loans

https://shenwick.blogspot.com/2024/03/us-seeks-to-collect-on-up-to-20-billion.html

SBA EIDL Loan Charge Offs

https://shenwick.blogspot.com/2024/02/sba-eidl-loan-charge-offs.html

SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS

https://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-penalties.html

Defaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loans

https://shenwick.blogspot.com/2023/12/defaulted-sba-eidl-loans-in-reversal-us.html

SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023

https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute-of.html

SBA EIDL Penalties if an SBA EIDL Loan is Not Repaid

https://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loan-is.html

Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html

SBA EIDL HARDSHIP PROGRAM

https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html

Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code

https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html

Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!

https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html

EIDL LOAN WORKOUTS AND BANKRUPTCY    https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html

EIDL Loan Default Questions & Answers

https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html

EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html

EIDL Defaulted Loans

https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html

New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html

EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM

https://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html

PPP & EIDL Fraud

https://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html

Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loans

https://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html