According to the NY Post New York has fourth-highest household debt in US — and it’s getting worse. https://nypost.com/2022/09/23/new-york-has-fourth-highest-household-debt-in-us-and-its-rising/?utm_source=gmail&utm_campaign=android_nyp
As debt increases, expect personal bankruptcy filings and business closings to increase.
Jim Shenwick, Esq. jshenwick@gmail.com 212 541 6224
Bankrate has a very helpful article about how to keep your car after you file for bankruptcy. The article titled "Keeping your car in bankruptcy" can be found at https://www.bankrate.com/personal-finance/debt/keeping-your-car-in-bankruptcy/
At Shenwick & Associates we have filed many personal bankruptcy petitions for clients who have kept their cars and gotten a discharge!
Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224
Forbes is reporting that 40 million Americans will benefit from Biden's proposed student loan forgiveness. The article titled 40 Million Borrowers Will Receive Student Loan Forgiveness Under Biden’s New Plan, Says White House can be found at https://www.forbes.com/sites/adamminsky/2022/09/20/40-million-borrowers-will-receive-student-loan-forgiveness-under-bidens-new-plan-says-white-house/?sh=c7f6ed810cf7
Jim Shenwick Esq. jshenwick@gmail.com 212 541 6224
So can cannabis companies file for chapter 11 bankruptcy protection? The answer generally is No! See interesting article on this topic at JD Supra at https://www.jdsupra.com/legalnews/does-involvement-in-the-cannabis-7364049/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link
Jim Shenwick, Esq. jshenwick@gmail.com 212 541 62224
Restaurant owners be careful about not paying your employees! News 12 has an article titled New Rochelle restaurant owner sentenced for not paying his employees. The article can be found at https://bronx.news12.com/new-rochelle-restaurant-owner-sentenced-for-not-paying-his-employees
Restaurant owners who do not pay their employees can be subject to federal and state lawsuits and class actions be their employees for wage and hour claims litigation.
At Shenwick & Associates we have represented many restaurant owners and assisted them in closing their restaurants (legally) and filing for bankruptcy. Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224
The Patch has an article about IRS penalty relief. The article is titled "IRS Offers $1.2B In Penalty Relief; Tardy Taxpayers Must Act Quickly".
The article can be found at https://patch.com/us/across-america/irs-offers-1-2b-penalty-relief-tardy-taxpayers-must-act-quickly
Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224
Fox Business has an article on "debt consolidation vs bankruptcy". The article contains a compare and contrast between the 2 strategies. The article can be found at https://www.foxbusiness.com/personal-finance/debt-consolidation-vs-bankruptcy
At Shenwick & Associates we have helped clients with both debt consolidation and personal bankruptcy and we can answer questions on both of these topics.
Jim Shenwick, Esq 212 541 6224 jshenwick@gmail.com
CNBC has an article on "Who Benefits the Most from Student Loan Forgiveness" the article can be found at https://www.cnbc.com/2022/09/11/heres-who-benefits-most-from-student-loan-forgiveness.html
Jim Shenwick, Esq jshenwick@gmail.com 212-541-6224
Investopedia has a helpful article titled "How to File for Student Loan Bankruptcy" The article can be found at
https://www.investopedia.com/how-to-file-student-loan-bankruptcy-4772237
Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224
NYS Equitable Distribution Law and Fraudulent Conveyances
Freeman Law wrote a very interesting and informative article titled Can Trustees Avoid Transfers Made Pursuant to Divorce Decrees or Other Agreements Incident to Divorce? The article was published in JD Supra at https://www.jdsupra.com/legalnews/can-trustees-avoid-transfers-made-3271604/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link
In the article, the author discusses whether Bankruptcy Trustee’s in Ohio can avoid transfers made pursuant to divorce decrees (yes according to the author) and discusses fraudulent conveyance law.
In NYS the division of marital property is governed by equitable distribution. Which is defined as a division of marital property between spouses that is equitable or fair. The division does not have to be equal to be considered fair.
As a result, if a couple is divorcing in NYS and one spouse owes money to creditors, the divorce presents an opportunity for the spouse who owes money to creditors (a debtor) to make themselves judgment proof or otherwise engage in asset protection planning.
Let’s look at an example. A couple is married and they own a house that has appreciated in value. The house has a fair market value of $1,000,000 and is subject to a $250,000 mortgage. The couple has 2 minor children and custody of the children will be given to the mother, who does not work.
The husband had started a business which subsequently failed and he owes or has guaranteed debt exceeding $2,000,000. The husband cannot repay that debt in the near term and he expects to get sued in the future.
During the divorce process, each spouse hires a divorce attorney, and the husband consults a bankruptcy attorney who advises him to transfer the house to his wife.
When the divorce is finalized, the husband has few assets that can be liened or levied by creditors and the wife has a house for herself and her children.
Does NYS or bankruptcy law consider the conveyance of the house a fraudulent conveyance? Depending on the facts probably not and if a creditor were to challenge the conveyance it would result in lengthy and costly litigation.
Clients with questions about fraudulent conveyance law and bankruptcy should contact Jim Shenwick, Esq jshenwick@gmail.com 212 541 6224
The New York Times has an article about the pending legal battle about Biden's Student Loan Cancellation program. The article is titled Biden’s Student Loan Plan Could Face a Protracted Legal Fight. The article can be found at https://www.nytimes.com/2022/09/01/us/politics/biden-student-loan-plan-lawsuits.html
Jim Shenwick,Esq. 212 541 6624 jshenwick@gmail.com
