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

 The SBA has announced a "Hardship Accommodation Plan" for EIDL loan borrowers.

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

If approved, the Hardship Accommodation Plan will reduce the borrower’s payment to 10% of their monthly payment for six months, after which their regular monthly payment will resume unless they apply for, and receive, another six-month extension.

Loans under $200,000 can enroll in a hardship accommodation plan through their MySBA Loan Portal. For larger loans, they will need to call the Covid EIDL Servicing Center.

For businesses with Covid EIDL loans that are under $200,000, the SBA requires, along with an offer in compromise application, the most recent profit and loss statements, most recent balance sheet and the most recent three months of history for all business checking accounts, along with its most recent federal tax returns and any copies of a purchase agreement or dissolution documentation if sold or shut down.

This information will be used to  evaluate a borrower’s ability to repay the outstanding EIDL loan.

If outstanding EIDL SBA loans are not repaid the SBA can pursue the business's collateral, commence litigation, wage garnishment or intercept tax refunds.

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

We help individuals & companies with too much debt!

FOR MORE BLOG POSTS ABOUT SBA EIDL LOANS SEE:

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

With consumer debt at an all-time high, a financial planner explains who should consider bankruptcy Business Insider article

 
With consumer debt at an all-time high, a financial planner explains who should consider bankruptcy Business Insider

The article can be found at the Business Insider at https://www.businessinsider.com/personal-finance/decide-bankruptcy-makes-sense-financial-planner-2023-4

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 & companies with too much debt!

Small Business Subchapter V Bankruptcy Filings Increase 81% Y/Y, Commercial Chapter 11 Filings Up 32% Y/Y

 

Small Business Subchapter V Bankruptcy Filings Increase 81% Y/Y, Commercial Chapter 11 Filings Up 32% Y/Y

The story can be found at https://www.abladvisor.com/news/36372/small-business-subchapter-vs-increase-81-y-y-commercial-chapter-11-filings-up
Subchapter V is a scaled down  form of simplified chapter 11 bankruptcy filing for small businesses.  Individuals or businesses interested in obtaining more information about Sub V filings can contact 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!

Commercial Chapter 11 Filings Rise 79% Y/Y in March

ABL Advisor's  is reporting that new Chapter 11 bankruptcy filings increased by 79% in March 2023.  The article can be found at https://www.abladvisor.com/news/36211/commercial-chapter-11-filings-rise-79-y-y-in-march

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

We held individuals & businesses with too much debt!

Bed Bath & Beyond filed for Chapter 11 Bankruptcy Protection

 Bed Bath & Beyond ("BBB") filed for Chapter 11 Bankruptcy Protection. Individuals & businesses who are owed money by BBB should organized their business records & file a Proof of Claim when  notified by the Bankruptcy Court.

Also & importantly, If a vendor delivered goods to  BBB in the 20 days before the Debtor filed bankruptcy, and those goods were delivered in the ordinary course of business, then you can get administrative claim status of the amount of the goods delivered. See 11 U.S.C. § 503(b)(9) and you should consult with a bankruptcy attorney as soon as possible.

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

We held individuals & businesses with too much debt!

CFO website is reporting that Chapter 11 Bankruptcy Filings Climbed 79% in March

The article can be found at https://www.cfo.com/credit-capital/bankruptcy/2023/04/chapter-11-bankruptcy-subchapter-v-epiq-commercial-filings-svb-financial-diamond-sports/

Preferences & Chapter 7 Bankruptcy Filings

PLEASE NOTE THAT EFFECTIVE IMMEDIATELY, PLEASE USE 917 363 3391 TO CONTACT JIM SHENWICK, ESQ.

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The New York Post recently had an article about a New York bankruptcy trustee who has ordered dozens of former sales reps at Worth Collection (an upscale, New York-based women’s apparel label that filed for chapter 7 bankruptcy three years ago) to return tens of thousands of dollars in commissions they earned shortly before the company’s bankruptcy filing. The article can be found at https://nypost.com/2023/03/30/bankrupt-nyc-fashion-labels-sales-reps-ordered-to-return-commissions/?utm_source=gmail&utm_campaign=android_nyp

The article states that stylists who worked as independent contractors for Worth Collection  (which catered to professional women at trunk shows that were typically held at the stylists’ homes or showrooms) were ordered to repay  the earned commissions by a US Bankruptcy Trustee.

In the way of background, when a company files for chapter 7 bankruptcy protection, a bankruptcy trustee is appointed to close the business, liquidate the business’s assets, and distribute those monies to creditors. 

The bankruptcy trustee will review the company's financial statements, bank statements, check registers, and tax returns to determine if preferential payments or fraudulent conveyances were made. If  those payments occurred, then the bankruptcy trustee will commence lawsuit(s) (called Adversary Proceedings in bankruptcy parlance) to recover those monies.

While not actually stated in the article, it is this author’s opinion that the bankruptcy trustee’s action against the stylists was for preferential payments, i.e., payments made to the stylists on account of antecedent debts (old debts) within 90 days of Worth Collection’s chapter 7 bankruptcy filing. 

Additionally, unless the bankruptcy filing  was an involuntary bankruptcy filing, the company could have delayed their bankruptcy filing  by 90 days, to have prevented the bankruptcy trustee's preference actions against the stylists.

For this reason, whenever we advise a company to consider filing for chapter 7 bankruptcy, we discuss preference issues with management and the owners, review bank statements, and check registers for preference issues. 

Individuals or businesses with preferences can contact Jim Shenwick, Esq., for a consultation.

 

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

We help individuals and companies with too much debt!

 

 

 

Can you get a small business loan after bankruptcy?

 Bankrate has a very interesting and informative article about whether a small business can get a small business loan after bankruptcy? 

The article states that getting a small business loan after going through bankruptcy is possible, but it can be a challenge. At Shenwick & Associates we have found that individuals can obtain credit 6 months to 1.5 years after filing for personal bankruptcy and approximately 2 years for businesses. The article can be found at https://www.bankrate.com/loans/small-business/business-loan-after-bankruptcy/

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

We help individuals and businesses with too much debt!

 Yahoo Finance is reporting that 

Small businesses are filing for bankruptcy at a higher rate than at the peak of the pandemic - and a looming credit crunch could make things worse

The article can be found at https://uk.finance.yahoo.com/news/small-businesses-filing-bankruptcy-higher-180500570.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAAWlcxq9eBw_EDH7SdbAwnf1p2vjy9R8T0I8s4z4TnAtWnfO5kbavPqyksi41EXY1qr-fv6bxeTLbWn3joCZdgqwyT46sHywfwRVYXeMQGd3nC2Gv3-R4xjNgB5GyJlT46RjQ5vRtKcvEazFBSjLY9VD8sE92flvSydqJ2EmdHxv

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

We help individuals & businesses with too much debt!

Rising number of Americans choose bankruptcy to deal with unmanageable debt: report

A Fox 13 Report states that  "A growing number of Americans, still reeling from the financial strain of the COVID-19 pandemic, are no longer benefiting from government relief efforts and are increasingly choosing bankruptcy to deal with unmanageable debt, according to a recent American Bankruptcy Institute (ABI)"

The article can be found at  https://www.q13fox.com/news/more-americans-choose-bankruptcy-debt-report

At Shenwick & Associates we held individuals & companies that have too much debt!

To schedule a telephone call with Jim Shenwick, Esq 

Please click the link to schedule a telephone call with me.

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

Bankruptcy Fraud is a Crime and People Who Commit Bankruptcy Fraud can be Arrested and Serve Time in Jail if Convicted

 

Bankruptcy Fraud: Former Attorney From Westchester Lied To Keep Home, Sports Car, Officials Say and was Arrested

https://dailyvoice.com/new-york/scarsdale/news/bankruptcy-fraud-former-attorney-from-westchester-lied-to-keep-home-sports-car-officials-say/860005/?emh5=07d29e82d0d168c807e94007ee2a9bb2&emh256=455e752c66fb0d80f8fdcfa65fb0e36b493bf4cfb8a38c283b91f42bb186af86&emsid=22110&lctg=eOjmpoXsZr8tCTDKSplgXx2UI88UKyCe&utm_source=daily-email&utm_medium=email&utm_campaign=daily-scarsdale-260059&group=0&test_id=None

Lying in Bankruptcy Court is a crime and people who commit that crime can be arrested and imprisoned. Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com

We help people & companies who have too much debt!

Please click the link to schedule a telephone call with me.

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

Federal Government Bailout Packages for Small Businesses: What You Need to Know - TDPel Media

 TDPelmedia has an article about bailout packages for small business. The article can be found at

https://tdpelmedia.com/federal-government-bailout-packages-for-small-businesses-what-you-need-to-know/

At Shenwick & Associates we help many clients with too much debt or not enough capital.

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

Please click the link to schedule a telephone call with Jim Shenwick

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

Jim Shenwick, Esq Commercial Leasing Biography in Manhattan New York City

 ● Jim Shenwick, Esq has  a specialty in commercial leasing (he has represented over 300 tenants and landlords in commercial lease negotiations).   

●Representative Manhattan transactions include the following: (a) represented over 250 commercial tenants representing office space in Manhattan, New York City.

●Represented a Landlord who leased retail space to a Gap store in Midtown East, (b) Represented a Landlord who leased space to a coffee chain in the East 20’s, (c) Represented a private equity fund that leased office space in 7 Time Square Tower, (d) Represented a hedge fund that leased office space at 590 Madison Avenue, (e) Represented an Internet social marketing company that leased space on 23^rd Street, (f) Represented a Landlord in Soho who leased space to a restaurant and food store, (g) Represented  an art gallery that moved to the West 26^th Street art district (h) Represented a hair transplant doctor who leased space for an upscale hair transplant facility on Madison Avenue and (i) Represented a chain of pizza stores who leased space throughout NYC and Long Island,

● Jim Shenwick, Esq. has written on the assignment/subletting of commercial leases, questions tenants need to ask Landlords before signing a commercial lease, “silent” commercial lease issues not dealt with in standard lease forms and hidden costs in commercial leases.  

● Jim Shenwick, Esq. also spoke at the Association of the Bar of the City of New York on commercial leasing issues for tenants.

 At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   jshenwick@gmail.com  917 363 3391  

Please click the link to schedule a telephone call with Jim Shenwick

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

 

                                                            

Commercial Leasing Checklist in New York City Manhattan Part II

 

1.                  Tenant should be permitted signage (at no cost)  in building lobby directory, elevator, floor and door (window signage flag should be permitted for retail)

 2.                  Tenant should have the right to make deliveries to the premises at any time of the day for retail use

3.                  Sidewalk maintenance & repair should not the responsibility of the retail tenant, other than snow removal

 4.                  Prior approval of private carter for retail Tenant.

 5.                  Tenant not have to pay Landlord’s  expenses for initial renovation plan review

 6.                  Tenant's renovation plans should be approved by Landlord prior to Tenant signing the Lease                     and the standard of review by Landlord should be "NUW"-not unreasonably withheld.

 7.                  Water for sink and toilet should be provided at no cost to Tenant and bills for other water uses                    should be by direct meter.

 8.                  Heating should be provided to Tenant even if there is in default under the lease. 

 9.                  Vault taxes, if any should be the responsibility of Landlord not Tenant.

10.              Obtain a  copy of the c/o for the premises and review prior to signing the Lease.

11.              Insurance rider should be sent to insurance agent for review and comment before the Lease is signed. 

12.              Construction clause, if any must be sent to the Tenant's architect for review.

13.              Brokerage clause must represent who is paying the broker and the accompanying indemnification clause  must be mutual

14.              Real Estate tax increases, should be paid over 12 months by Tenant

 At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores. Provided below is Part I of our Leasing Checklist.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   jshenwick@gmail.com  917 363 3391  

Please click the link to schedule a telephone call with Jim Shenwick

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

Commercial Leasing Checklist in New York City Manhattan Part I

 At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores. Provided below is Part I of our Leasing Checklist.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   jshenwick@gmail.com  917 363 3391  

Please click the link to schedule a telephone call with Jim Shenwick

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

Lease Checklist:

 1.                  Free rent?   How much? Tenant should receive 12 months rent at first year rate before rent increases in second year.

 2.                  Are the premises in a land-marked building? (alterations are more difficult)

 3.                  Request a  copy of the most recent tax bill and Tenant should only pay its pro rata share of taxes

4.                  Is the electricity direct meter, sub-meter or rent inclusion?

5.                  Assignment and sub-let provisions should automatically be allowed: (a) Tenant’s sale of its business, (b) merger of its business, (c) Tenant goes public, (d) assignment of  its lease to a related entity or division

 6.                  Non-structural alterations should be allowed as a matter of right to Tenant

 7.                  Interest on security deposit should go to Tenant without request or notice once per year

and security deposit should be returned to Tenant 30 days after lease ends

 8.                  Landlord should expressly consent to Tenant's particular use and assist Tenant in getting a liquor license (for a bar or restaurant)

 9.                  If the premises have a sprinkler installation, who pays for monitoring, and maintenance?

 10.              What is the electricity capacity of the premises wiring? Landlord should make a representation in the lease to the electrical capacity and the capacity should be sufficient for Tenant's business (important for a manufacturing or service business).

Check our Blog for Part II of our Leasing Checklist

Jim Shenwick, Esq

What is Chapter 11 bankruptcy?

 Business Insider has a very helpful article on Chapter 11 bankruptcy. The article can be found

 at https://www.businessinsider.com/personal-finance/what-is-chapter-11-bankruptcy

Many people are not aware that individuals as well as businesses can file for chapter 11 bankruptcy and that chapter 11 bankruptcy can be used to reorganize businesses as well as to sell assets.

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

We help individuals & companies with too much debt!

Please click the link to schedule a telephone call with Jim Shenwick

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

 

MOTLEY FOOL ARTICLE ON REPAYMENT OF SBA EIDL LOANS

 The Motley Fool has an article on the repayment of SBA EIDL Loans. The article is titled 
"Took Out a Small Business Loan During the Pandemic? You May Need to Start Paying It Back"
The article can be found at https://www.fool.com/the-ascent/small-business/articles/took-out-a-small-business-loan-during-the-pandemic-you-may-need-to-start-paying-it-back/
Any clients with questions about the repayment of SBA or EIDL loans should contact Jim Shenwick, Esq.  jshenwick@gmail.com   917 363 3391
"We held individuals & companies with too much debt!"

FOR MORE BLOG POSTS ABOUT SBA EIDL LOANS SEE:

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

Differences Between Chapter 7 and Chapter 13

 

IMCGRUP has an article on the "Differences Between Chapter 7 and Chapter 13 Bankruptcy. The article can be found at 
https://www.imcgrupo.com/difference-between-chapter-7-and-chapter-13-bankruptcy/
Jim Shenwick, Esq.  jshenwick@gmail.com  917 363 3391 
"We help people & monies with too much debt". 

Please click the link to schedule a telephone call with me.
 https://calendly.com/james-shenwick/15min

Chapter 11 Bankruptcy Filings Increase 83%

 

Chapter 11 Bankruptcy Filings Increase 83% Y/Y in February 2023  based on article in Monitor Daily. See  https://www.monitordaily.com/news-posts/chapter-11-bankruptcy-filings-increase-83-y-y-in-february/

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

We held individuals & companies with too much debt!

Please click the link to schedule a telephone call with me.
 https://calendly.com/james-shenwick/15min

How student loan debt became a trillion-dollar problem for Americans

 See the post at https://www.cnn.com/2023/02/27/politics/us-student-loan-debt-timeline/index.html

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

At Shenwick & Associates we help people and businesses with too much debt!

Please click the link to schedule a telephone call with me.

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