The Moratorium on Federal Student Loan Payments has been extended again by President Biden to June 30, 2023

 The moratorium on federal student loan payments has been extended again by President Biden to June 30, 2023. An article on this topic can be found on cnet at https://www.cnet.com/personal-finance/loans/student-loan-pause-extended-again-heres-when-youll-have-to-start-paying/

Jim Shenwick, Esq   212 541 6224   jshenwick@gmail.com

Healthcare providers are now Prohibited from Satisfying Medical Debt by collecting wages or placing liens on patients’ homes under a law sign by Governor Hochul on Wednesday November 23, 2022

 Governor Hochshul signed a bill on Wednesday November 23, 2022, prohibiting healthcare providers from collecting wages or liening patients' homes to satisfy medical debts. An article about the bill can be found at https://www.mytwintiers.com/news-cat/state-news/hochul-signs-bill-to-protect-new-yorkers-with-medical-debt/

If a creditor wishes to collect a debt in New York, they must sue the debtor, obtain a judgment, and then enforce the judgment.

 

Under New York law a  judgment is good for 20 years. Creditors who attempt to enforce judgments generally do three things: 1.  Lien and levy  on a debtors checking account or brokerage account, 2. Docketing the judgment against the debtor’s house and foreclosing on the judgment and 3. Wage garnishment, a legal procedure in which a person's earnings (10%) are required by court order to be withheld by an employer, and paid to a creditor in satisfaction  of a debt.

With the new law signed by the governor, medical creditors will no longer be able to garnish wages or docket judgments against a debtor's house in order to collect on those judgments. If you have any questions about the enforcement of judgments, please contact Jim Shenwick, Esq at jshenwick@gmail.com or  at 212-541-6224.

11 Things You Should Know About Chapter 11 Bankruptcy

 Yahoo has a very helpful article about 11 Things You Should Know About Chapter 11 Bankruptcy. 
The article can be found at https://www.yahoo.com/now/11-things-know-chapter-11-161433809.html
Jim Shenwick, Esq   212 541 6224  jshenwick@gmail.com

Student Loan Forgiveness Update

 

ABC has a very helpful article about "Student loan forgiveness update: What borrowers need to know after federal court struck down program". The article can be found at 

https://abc7ny.com/will-student-loans-be-forgiven-biden-forgiveness-loan-update/12451011/

Jim Shenwick, Esq   917 363 3391  jshenwick@gmail.com

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

WCNC has an article titled "Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA"  EIDL Loans. 

SBA EIDL loan repayment begin this month! As the article notes many borrowers will be unable to repay their EIDL loans.

The article can be found at https://www.wcnc.com/article/money/pandemic-sba-small-business-loan-money-local/275-ba12435e-ca7e-48d8-9cad-1c251bbdf706

Borrowers who cannot repay their loans, should contact Jim Shenwick, Esq.  jshenwick@gmail.com

917 363 3391 for assistance with these problems. 

Consequences of Filing for Personal Bankruptcy

 Forbes has an article about the consequences of filing for personal bankruptcy. The article can be found at   https://www.forbes.com/advisor/debt-relief/bankruptcy-consequences/

Individuals with questions about personal bankruptcy can contact Jim Shenwick Esq.   jshenwick@gmail.com   917 363 3391

The Automatic Stay and Section 362 of the Bankruptcy Code

 When a bankruptcy petition is filed, section 362(a) of the Bankruptcy Code states that the bankruptcy petition provides a stay on the commencement or continuation of an action or proceeding against the debtor.

An "Automatic Stay" provides relief to the debtor by stopping all litigation and collection efforts against him, giving him pause and time to reorganize his finances.

After bankruptcy filing, creditors who wish to continue litigation against the debtor must file a motion to lift the stay in Bankruptcy Court. The most common bankruptcy motion is a motion to lift the stay.

Last week, we filed two motions to lift the stay, one for a landlord and one for a creditor, so they could finalize an eviction and foreclosure.

The law stayed litigation and landlord tenant actions during the pandemic, now creditors and landlords are free to pursue litigation, resulting in increased bankruptcy filings and motions to lift the stay.

The Second Circuit Court of Appeals recently decided a Motion Lift Stay case, In re Fogarty, 39 F. 4th 62 Court of Appeals, 2nd Circuit 2022 which demonstrates the complexity and questions that can arise in lift stay practice.

Debtor Eileen Fogarty owned a 99% interest in 72 Grandview LLC, which in turn owned a residential property that Fogarty occupied as her primary residence. Bayview Loan Servicing LLC initiated a foreclosure action in which both 72 Grandview LLC and Fogarty were named as defendants. After Bayview obtained a judgment, Fogarty filed a Chapter 7 bankruptcy petition  and Bayview proceeded with the foreclosure sale without seeking relief (i.e. filing a motion for relief from the automatic stay) from the bankruptcy court.

Fogarty then sought sanctions against Bayview arguing that Bayview willfully violated the automatic stay. The bankruptcy court denied Fogarty's motion, but the district court reversed that decision and Bayview appealed to the 2nd Circuit Court of Appeals. 

The 2nd Circuit ruled that Bayview violated the automatic stay based on the fact that the debtor was a named party in the foreclosure proceedings (even if the debtor held only a possessory interest in the property) and Bayview was aware that Fogarty had filed a bankruptcy petition.

The takeaway from the Fogarty case, is that a creditor must proceed with cause after a Debtor files for bankruptcy and when in doubt a creditor should file a motion to lift stay before foreclosing on property. 

Creditors that have questions regarding Motions to Lift Stay can contact Jim Shenwick, Esq   jshenwick@gmail.com   917 363 3391.

    

Yahoo is reporting that Individual Chapter 13 Bankruptcies Increase 27 Percent Over Last Year

 Yahoo is reporting that in October Individual Chapter 13 Bankruptcies Increase 27 Percent Over Last Year. The article can be found at https://lnkd.in/erj-t-4m

Jim Shenwick, Esq jshenwick@gmail.com 917 363 3391

6 Steps to Prepare for the Next Restructuring Wave

 THE CFO website has a very useful article on restructuring businesses. The article is titled:

6 Steps to Prepare for the Next Restructuring Wave

It can be found at:

https://www.cfo.com/budgeting-planning/strategy-budgeting-planning/2022/10/bankruptcy-restructuring-recession-supply-chain-liquidity-risk/

Jim Shenwick, Esq jshenwick@gmail.com 917 363 3391