When to apply for a credit card after bankruptcy-see the article from Bankrate.com, URL below

 https://www.bankrate.com/finance/credit-cards/how-long-after-bankruptcy-credit-card/

Impact of Omicron on Small Businesses-see Reuters article below

 https://www.reuters.com/world/us/upside-down-again-omicron-surge-roils-us-small-businesses-2022-01-16/

Bankruptcy Deadlines must be observed!

 Bankruptcy Deadlines must be observed! The recent case of In re U-Haul, 21-bk-20140, 2021 Bkr LEXIS 3373 (Bankr. S.D. W. Va. Dec. 10, 2021) demonstrates this rule. In the U-Haul case, a creditor needed to file a proof of claim for $53 million and their attorney  waited until the last moment to do the filing. Unfortunately the attorney  did not have the proper password and the proof of claim was filed approximately 9 hours late.

Counsel for the Debtor objected to the late filed claim. Creditor counsel argued “excusable neglect” (the argument usually made by attorneys  when deadlines are missed see  Pioneer Inv. Servs. v. Brunswick Assocs. Ltd P’ship, 507 U.S. 380 (1993)) and creditor counsel lost. 

For those that do bankruptcy work on a day to day basis, this is a painful case to read. 

A lesson for all lawyers is to prepare for deadlines, observe deadlines, do not wait until the last minute to file and prepare and plan for the unexpected. Jim Shenwick, Esq.

Is Student Loan Cancellation Next? See an excellent article in Forbes Magazine URL below

 https://www.forbes.com/sites/zackfriedman/2022/01/04/is-student-debt-cancellation-next/

NYC taxi medallion baron paid for news stories to boost stock price, SEC claims see article in NY Post URL below

 NYC taxi medallion baron paid for news stories to boost stock price, SEC claims

https://nypost.com/2021/12/29/nyc-taxi-medallion-baron-paid-for-news-stories-to-boost-stock-price-sec-claims/

4 things student loan borrowers should know about the extended payment pause CNBC Article

 A very informative article about continued Federal Student Loan repayment moratorium titled "4 things student loan borrowers should know about the extended payment pause can be found at https://www.cnbc.com/2021/12/27/4-things-student-loan-borrowers-should-know-about-the-extended-payment-pause-.html

Will 15-minute delivery do to bodegas what ride-hailing apps did to the taxi industry? see link to article below

 https://www.cityandstateny.com/politics/2021/12/will-15-minute-delivery-do-bodegas-what-ride-hailing-apps-did-taxi-industry/360006/

Tenancy by the Entirety and Bankruptcy Exemptions

 Keith Fogg wrote a post on Tenancy by the Entirety and Bankruptcy Exemptions, which can be found at https://procedurallytaxing.com/tenancy-by-the-entirety-and-bankruptcy-exemptions/ 

The post and the cited case demonstrate that debtors who live in New York State and own appreciated property together (Tenancy by Entirety property) may be better off not filing for bankruptcy and instead using NYS exemptions instead. Jim Shenwick

4 Tips to Avoid Bankruptcy While Running a Startup see article below at CEOWorld.biz

 https://ceoworld.biz/2021/12/14/4-tips-to-avoid-bankruptcy-while-running-a-startup/

Driven to Disaster: Why Major Cities Must Abolish the Paid Taxicab Medallion System-see the article below

 https://brownpoliticalreview.org/2021/12/driven-to-disaster-why-major-cities-must-abolish-the-paid-taxicab-medallion-system/

James Shenwick, Esq. is proud to announce that he has been selected as a 2021 Top Rated Lawyer by Martindale Hubbell

                   2021 Top Rated Lawyer by Martindale Hubbell.

James Shenwick, Esq. is proud to announce that he has been selected as a 2021 Top Rated Lawyer by Martindale Hubbell

Pandemic Wiped Out NYC’s Taxi Industry & Now Uber Prices are Soaring see the article at Jewish Voice below

 https://thejewishvoice.com/2021/11/pandemic-wiped-out-nycs-taxi-industry-now-uber-prices-are-soaring/

IRS Announces Major Change to Offer in Compromise Policy for Taxpayers Owe Federal Taxes

 The IRS announced a policy change in their Offer in Compromise ("OIC")program (for people who owe federal taxes) where for OICs accepted after November 1, 2021, the IRS will forego taking the post-OIC acceptance  tax refund for the year of acceptance. An excellent article on this topic can be found at https://procedurallytaxing.com/major-change-to-offer-in-compromise-policy/ 

A New Bankruptcy Bill Would End the ‘Texas Two-Step’ and Eliminate Non-Debtor Releases in Chapter 11

The proposed law would prohibit “divisive mergers” in Chapter 11, a corporate reorganization tool made available by Texas and Delaware that allows companies to assign liabilities to a subsidiary that can then seek the protective auspices of bankruptcy. See an excellent article on this topic at

https://www.jdsupra.com/legalnews/new-bill-would-end-the-texas-two-step-3111746/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link

Evictions are Rising Nationwide

 Evictions and Bankruptcy

On November 7, 2021, the New York Times published an article titled "With Cases Piling Up, an Eviction Crisis Unfolds Step by Step". The article can be found at https://nyti.ms/3mPXsGf 

The article stated that evictions are on the rise nationwide. We are receiving more and more calls and emails from individuals facing evictions and/or businesses in distress at Shenwick & Associates.

The first step an individual or business facing eviction should take is to consult with an experienced litigator or landlord-tenant attorney.  

Can bankruptcy help these people and businesses? Yes, it can. Bankruptcy can provide temporary or permanent relief from many of these problems.

By filing a bankruptcy petition, all litigation against the Debtor (person or company that owes money) is automatically stayed pursuant to section 362 of the bankruptcy code. The purpose of section 362 is to give the debtor breathing room!

Chapter 13 of the Bankruptcy Code allows an individual debtor to reorganize pursuant to a   confirmed chapter 13 plan. A chapter 13 plan could permit the debtor to keep their house or lease, despite the pending eviction action. Chapter 13 plans are generally funded by 3 to 5 years of the debtor's future earnings. Corporations and limited liability companies cannot file for chapter 13 bankruptcy.

Individuals who don't want to keep their lease or home and owe money to banks, landlords, or creditors can file for chapter 7 bankruptcy, which will wipe out their debts and give them a "fresh start."

Corporations or LLCs may file Chapter 7 or Chapter 11 bankruptcy or a new Subchapter V Chapter 11 bankruptcy. 

Debtors' finances are reviewed holistically, including the property they own, who owes money to them, a recent tax return and an after-tax monthly budget. For business we review their Income Statement, Balance Sheet, a recent tax return and guarantees. 

If you or your business is contemplating bankruptcy, call or email Jim Shenwick, Esq. 212 541 6224 or jshenwick@gmail.com to learn about your options. 

  

  

With Cases Piling Up, an Eviction Crisis Unfolds Step by Step see November 7, 2021 New York Times article below

 https://www.nytimes.com/2021/11/07/us/evictions-crisis-us.html

N.Y.C. Cabbies Win Millions More in Aid After Hunger Strike see New York Times article November 3, 2021 below

 https://www.nytimes.com/2021/11/03/nyregion/nyc-taxi-drivers-hunger-strike.html

Gene Freidman, ‘Taxi King’ Who Upended His Industry, Dies at 50 see New York Time story below

 https://www.nytimes.com/2021/10/25/nyregion/gene-freidman-dead.html

She's a 64-Year-Old Taxi Driver Drowning in Medallion Debt—And She's Fighting Back-see post below

In These Times has an article about a 64 year old taxi medallion owner/driver who is fighting back against NYC. See the post at  https://inthesetimes.com/article/new-york-taxi-workers-alliance-medallion-debt-organizing

STUDENT LOAN DISCHARGE: NAVY VETERAN’S STUDENT LOANS RULED NONDISCHARGEABLE BY A FEDERAL DISTRICT COURT JUDGE

 NAVY VETERAN’S STUDENT LOANS RULED NONDISCHARGEABLE BY A FEDERAL DISTRICT COURT JUDGE

Last year, a Navy veteran’s student loans, totaling $221,000 were discharged in bankruptcy by Southern District of New York Chief Bankruptcy Judge Cecilia Morris. The citation to the case is In re Rosenberg, 610 BR 454 - Bankr. Court, SD New York 2020. The student loans resulted from the veteran attending college and law school. Judge Morris, ruled that the $221,000 of student loans were an undue “hardship”to the veteran and that they would be discharged in his chapter 7 personal bankruptcy filing. 

Chief Judge Morris wrote in her opinion discharging the student loans that  “she wouldn't perpetuate "myths" that it's impossible to discharge student debt through bankruptcy”.

A federal court judge recently reversed that decision. A bankruptcy court decision, like those rendered by a bankruptcy judge, can be appealed to a Federal District Court. The student loan creditor appealed Judge Morris's decision, and it was reversed. The case has been remanded back to Bankruptcy Court for further hearings on the issue of undue hardship. 

Kevin Rosenberg, the veteran, was devastated by the decision. 

The Federal judge reversed that decision because Mr. Rosenberg had failed to demonstrate undue hardship using the Brunner standard. According to Brunner, "undue hardship" occurs when debtors cannot maintain a minimum standard of living, their circumstances will not improve, and they have made a good-faith effort to repay their student loans.

An excellent article about this topic can be found on the Business Insider website at https://www.businessinsider.com/veteran-student-loan-debt-forgiveness-revoked-bankruptcy-discharge-2021-10. 

The Brunner standards are so difficult to meet and the cost of litigation is so high that most debtors do not attempt to discharge their student loans in personal bankruptcy.  In this case, Mr. Rosenberg was the exception. 

As shown in this case, student loan borrowers are at a disadvantage when attempting to discharge their student loans on the basis of bankruptcy. 

Certain lawmakers, however, are advocating for making the discharge of student debt easier in bankruptcy, and in August this year, Senate Majority Whip Dick Durbin and Texas Sen. John Cornyn introduced the FRESH START Through Bankruptcy Act of 2021. After 10 years, this bill would enable borrowers to discharge federal student loans through bankruptcy. 

Prior to a law change, student loans that were outstanding for 7 years could be discharged in bankruptcy. According to this author, bankruptcy is a mechanism for the discharge of many types of debt and student loans should be able to be discharged with certain limitations and conditions. The proposed FRESH START legislation is a good step in that direction. James Shenwick 212 541 6224 jshenwick@gmail.com