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By Stephanie Pagones | Published September 10, 2019 | Transportation | FOXBusiness
Manhattan federal prosecutors are probing possible lending fraud in the New York City taxi industry, according to a report.
The Southern District of New York has been investigating possible crimes, such as bank, mail and wire fraud, over the past month in the wake of a string of suicides involving cabbies who were bogged down by heavy debt related to the ever-increasing cost of taxi medallions, The New York Times reported, citing sources with knowledge of the inquiry.
A U.S. Attorney's Office representative declined to comment to the Times.
The cost of a taxi medallion rose from $200,000 in 2002 to $1 million in 2014, the report states, while industry heads or medallion brokers used questionable lending tactics or provided their clients “insufficient or unclear information,” according to and Executive Summary released this summer by the City of New York pursuant to a 45-day review into the industry’s methods.
As much as 95 percent of the city’s taxi drivers are immigrants, the summary states, many of whom speak English as a second language.
“For current drivers, the largest single issue they face is an unaffordable level of debt. The average median debt owed by surveyed drivers is approximately $500,000,” according to the city record. “[Fifty-one percent] of surveyed drivers stated they struggle to pay their monthly bills and 26% stated they are considering bankruptcy.”
In fact, over 900 livery cab drivers have declared bankruptcy, the Times reported.
The Times interviewed an immigrant from Bangladesh who bought his taxi medallion in 2014 and signed a loan that required him to pay $1.7 million, even though his annual income was only about $30,000. He told the Times that he did not understand the terms of his loan, according to the report.
New York Attorney General Letitia James announced in May she would be conducting her own review of the matter.
https://www.foxbusiness.com/features/federal-prosecutors-probing-nyc-tax...
If you have fallen behind on your mortgage payments, you’re likely worried about protecting your home. But how can bankruptcy help? Is it possible for you to save your house? Below, we discuss how to stop foreclosure actions through bankruptcy and buy yourself a little time.
How the Foreclosure Process Works
Once your mortgage goes into default, your lender will initiate a foreclosure. How the foreclosure will proceed depends on the language of your mortgage contract. Essentially, the lender will take possession of your home and then sell it at auction. The money from the auction will be put toward legal costs and the deficiency balance, which is what the lender expected to receive minus what they received at auction. In Texas, lenders are allowed to pursue deficiency balances on mortgages.
Delaying Foreclosure With the Automatic Stay
As soon as you file for any kind of bankruptcy, you are entitled to the automatic stay, which protects you from any creditor actions. This means your creditors must cease any collection actions against you, including foreclosure. Typically, this will buy you three to four months of time and offer you some breathing room while you figure out your next steps.
However, your creditor can petition the court to lift the automatic stay in cases where it’s apparent that you have no intention or ability to continue paying on the loan. How much time the automatic stay will buy depends entirely on the type of bankruptcy you’re pursuing and whether saving your home by paying the arrearage and continuing to make payments is economically possible.
How Can Chapter 7 Bankruptcy Help?
Chapter 7 is designed to discharge unsecured debts by liquidating whatever assets you cannot protect under the law. In most cases, however, Chapter 7 bankruptcy isn’t the best option for saving your home from foreclosure completely, since it isn’t designed to handle secured debt, like a mortgage. But in Texas, certain assets can be exempted from bankruptcy liquidation and equity on your home is one of those (with one exception to this rule related to the amount of acreage on your property).
While you can protect your home equity from liquidation and temporarily stop foreclosure, you’re still required to continue making payments on the home. If this is beyond your means, you will lose your home. You will be required to pay both the arrearage and continue to pay your monthly mortgage payments.
However, through the automatic stay, you may be able to use the extra time to your advantage. For example, you can work out a loan modification or short sale with your lender.
How Can Chapter 13 Bankruptcy Help?
Chapter 13 bankruptcies work entirely differently. Instead of discharging debt, Chapter 13 allows you to reorganize your debts into a payment plan. As a result, you get to keep your property.
In terms of stopping foreclosure, you will have to repay the arrearage plus the monthly payments if you want to keep your home. But you won’t have to pay the arrearage all at once. You can prorate the amount owed over three or five years.
Keep in mind, however, that foreclosure proceedings may continue if there is a lack of payment on homeowner’s association fees or property taxes. In that case, the outstanding debt can be repaid over the life of the bankruptcy. But you would have to remain current on any future property and HOA fees.
Second Mortgages and HELOC Loans
If you have taken out lines of credit against the equity on your home, you still have options in bankruptcy. If you are still paying off a primary mortgage, the courts can recategorize a second or third mortgage as an unsecured debt.
In Chapter 13, unsecured debts are the lowest priority. That means that in the hierarchy of repayment, they come last. In some cases, the second mortgage can be stripped off entirely. In other cases, you will be required to pay some (but not all) of the second mortgage.
Federal vs. State of Texas Homestead Exemptions
In Texas, you are allowed to choose between federal and state laws regarding Chapter 7 exemptions. You cannot, however, mix and match.
Texas law offers more total asset protection in terms of dollars and cents and allows you to protect an unlimited amount of equity. But there are restrictions on protecting homestead property. If your property is in an urban area, it cannot be more than 10 acres. In a rural area, you are limited to 100 acres or 200 acres if it is occupied by a family.
The federal homestead exemption allows you to protect around $25,000 in home equity which is doubled for a married couple filing together. Which one is right for you will depend on your needs, your situation, and whether or not you want to keep your home.
Talk to a Dallas TX Bankruptcy Attorney Today
At Allmand Law Firm PLLC, we know how stressful it can be when your home is in danger. But Texas has some of the most debtor-friendly bankruptcy laws in the U.S. To learn more about how to stop foreclosure actions through bankruptcy, contact us today.
The post How to Stop Foreclosure Actions Through Bankruptcy appeared first on Allmand Law.
If you’re considering filing for personal bankruptcy, the two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 of the bankruptcy code. Chapter 7 is a quicker bankruptcy process, while Chapter 13, which entails debt reorganization, is a more involved undertaking. Chapter 13 filers are made to pay a portion or all of their debt through a repayment plan that lasts three to five years.
Chapter 13 Filing Process
Debtors aren’t required to hire a bankruptcy attorney when they file for bankruptcy, but it’s prudent and recommended to do so. It’s almost imperative when filing under bankruptcy chapter 13, so let that be your first step, preceding the following event sequence.
- Document gathering – At first consultation, your bankruptcy lawyer will advise you on bankruptcy information you need to collect, such as pay stubs, tax returns, statements from your various bills, banking, investment, and retirement accounts.
- Credit counseling – This has to be done before filing. Find a certified credit counselor. After your session, you will be issued a certificate that you must include in the paperwork when you file your bankruptcy petition.
- Paperwork review and filing – Your bankruptcy attorney will review your information and help you procure the necessary paperwork for your petition for bankruptcy. Based on the same information, your lawyer will also will calculate a debt payment plan.
- First plan payment – This is due 30 days after filing the bankruptcy case. It can be done through an online payment option, money order, checking account debit, or payroll deduction, depending on what your bankruptcy trustee requires. Remember to also stay current with obligations not included in your plan, e.g. car loan or mortgage payments.
- 341 meeting of creditors – About a month after you file bankruptcy, you and your lawyer will have to meet with the bankruptcy trustee assigned to your case. Despite its name, creditors rarely show up. You have to answer questions from the trustee on record and under oath. The trustee makes sure that you understand the plan, as well as the policies and procedures involved.
- Education course – Bankruptcy cases entail completion of a financial management course. It may be done online or over the phone. The bankruptcy court won’t discharge a debt unless a debtor education course certificate is filed.
- Plan confirmation – A few months after you file a bankruptcy petition, there will be a hearing for the approval of your plan, which must meet various requirements, such as providing payment for overdue alimony, child support, income tax, and other debts that must be prioritized. Arrears on secured debts must also be paid if you intend to avoid foreclosure or repossession. Your income must, of course, be sufficient to make the plan feasible.
- Claims resolution – Claims from creditors must be filed with the court. You and your lawyer must go over them to make sure that they’re correct and documented. In case of justified objections, you may have to adjust your plan to accommodate them.
- Trustee check-ins – In the duration of your three-to-five-year plan, your trustee will check in with you by asking you to provide tax returns copies or confirmation from creditors that your monthly payments are up to date.
- Discharge preparation – Upon nearing the end of your case, you will have to file a certification, proving that your debt payments are current, all your tax returns are filed, and all your financial obligations are met.
- Bankruptcy discharge – When you’ve fulfilled your payment plan, filed the correct certifications, and completed your financial management course, the court will issue a discharge that will wipe out all qualifying debts.
Seattle Chapter 13 Lawyers
Chapter 13 bankruptcy proceedings can be complex and quite daunting. Bankruptcy lawyers can guide filers through the experience so that they do every step correctly. If you need to file for bankruptcy under Chapter 13, call us at Northwest Debt Relief Law Firm and talk to one of bankruptcy attorneys for legal advice and assistance.
The post Chapter 13 Bankruptcy Timelines appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
Part I of this short series on real estate transactions covered the property title. Part II looked at title insurance. Both set the stage for a smooth closing, which is how this real estate series wraps up.
Wynn at Law, LLC takes on five roles for the client – homebuyer or seller – during the closing and beyond. If this production was a movie, Wynn at Law, LLC is the…
Director
The real estate attorney directs communication between all parties in the closing. Realtors, lenders, title companies, sellers, and buyers all follow the lawyers’ lead. There are other cast members involved, too, that aren’t even at the closing table. Contractors and inspectors are two examples. The attorney makes sure their work has been completed in good faith before it’s time for the signatures.
Editor
On the day of closing the attorney is present to review the various instruments associated with the real estate, such as the deed and loan documents, such as the mortgage. In actuality, Wynn at Law, LLC makes sure all documents are accurate days beforehand, if possible. If dates, disbursements, or other details need editing, the details are edited by the attorney and reviewed by all parties before the deed is signed and recorded.
Narrator
If there are any questions at the closing table, the attorney explains documents such as the deed, promissory note, or a closing/settlement statement.
Distributor
While the attorney doesn’t actually handle the checks, money isn’t distributed until the attorney approves of the distribution.
And finally, Wynn at Law, LLC is Public Relations for this ‘movie.’ No production becomes a hit without Public Relations. To us, that means making sure our client is happy, secure, and legally sound after the sale. We want to be on your team for your next real estate transaction, too, whether it’s months or years down the road. Let’s say a new neighbor wants to get in your business about the property line or the HOA suddenly changes bylaws. Your real estate attorney swings in action beyond the closing to protect you and your property.
image by Jakub Gojda, used with permission.
The post The Real Estate Transaction, Part III: Closing and Beyond appeared first on Wynn at Law, LLC.
Part I of this short series on real estate transactions covered the property title. Part II looked at title insurance. Both set the stage for a smooth closing, which is how this real estate series wraps up.
Wynn at Law, LLC takes on five roles for the client – homebuyer or seller – during the closing and beyond. If this production was a movie, Wynn at Law, LLC is the…
Director
The real estate attorney directs communication between all parties in the closing. Realtors, lenders, title companies, sellers, and buyers all follow the lawyers’ lead. There are other cast members involved, too, that aren’t even at the closing table. Contractors and inspectors are two examples. The attorney makes sure their work has been completed in good faith before it’s time for the signatures.
Editor
On the day of closing the attorney is present to review the various instruments associated with the real estate, such as the deed and loan documents, such as the mortgage. In actuality, Wynn at Law, LLC makes sure all documents are accurate days beforehand, if possible. If dates, disbursements, or other details need editing, the details are edited by the attorney and reviewed by all parties before the deed is signed and recorded.
Narrator
If there are any questions at the closing table, the attorney explains documents such as the deed, promissory note, or a closing/settlement statement.
Distributor
While the attorney doesn’t actually handle the checks, money isn’t distributed until the attorney approves of the distribution.
And finally, Wynn at Law, LLC is Public Relations for this ‘movie.’ No production becomes a hit without Public Relations. To us, that means making sure our client is happy, secure, and legally sound after the sale. We want to be on your team for your next real estate transaction, too, whether it’s months or years down the road. Let’s say a new neighbor wants to get in your business about the property line or the HOA suddenly changes bylaws. Your real estate attorney swings in action beyond the closing to protect you and your property.
image by Jakub Gojda, used with permission.
The post The Real Estate Transaction, Part III: Closing and Beyond appeared first on Wynn at Law, LLC.
What to Expect at Your Bankruptcy Hearing For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.” (We almost never actually have creditors show up. We can also call it your “trustee hearing.”) Here’s a video that explains where to go, best places to park, what to bring and what questions […]
The post Announcement: What to Expect at Your Bankruptcy Hearing by Robert Weed appeared first on Robert Weed - AE.
What to Expect at Your Bankruptcy Hearing For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.” (We almost never actually have creditors show up. We can also call it your “trustee hearing.”) Here’s a video that explains where to go, best places to park, what to bring and what questions […]
The post Announcement: What to Expect at Your Bankruptcy Hearing by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed - .
What to Expect at Your Bankruptcy Hearing For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.” (We almost never actually have creditors show up. We can also call it your “trustee hearing.”) Here’s a video that explains where to go, best places to park, what to bring and what questions […]
The post Announcement: What to Expect at Your Bankruptcy Hearing by Robert Weed appeared first on Robert Weed - .
The bankruptcy code is divided into different bankruptcy chapters. For personal bankruptcy, the two most common chapters under which individuals file for bankruptcy are Chapter 7 and Chapter 13. It may seem easier and quicker to file bankruptcy under Chapter 7, but there are many filers who prefer the benefits accorded by a Chapter 13 filing.
What are the usual reasons why people choose bankruptcy protection that comes with Chapter 13 bankruptcies?
- To prevent impending repossession, foreclosure, or garnishment from taking place.
The bankruptcy law includes an automatic stay in bankruptcy proceedings. This takes effect in all bankruptcy cases, stopping debt collection efforts, including attempts to repossess your vehicle, foreclose on your house, or garnish your wages. The stay in a Chapter 13 bankruptcy case lasts for years, as opposed to that in a Chapter 7 bankruptcy process, which only lasts months.
- To buy more time to pay back a car loan or catch up on mortgage payments.
Chapter 13 bankruptcy filings allow debtors to pay their debt arrears in installments by making smaller monthly payments to their bankruptcy trustee, who will then distribute the money to their creditors. The goal is to also stay current with the remainder of the debt as the arrears are slowly settled so that when the debtor emerges from bankruptcy, the payments are up-to-date.
- To hold on to property that may otherwise be given up in a Chapter 7 bankruptcy.
It’s possible for people going bankrupt to keep some of their property. It depends on the exemption laws where the bankruptcy petition is filed. Exemptions vary from state to state, so it’s best to consult a bankruptcy lawyer regarding bankruptcy information related to this. At any rate, if you wish to keep your possessions, you may choose to file under Chapter 13 and simply pay the value of your property that is not covered by an exemption. Since the duration of the Chapter 13 payment plan could run for five years, it’s possible that your payments would be very manageable.
- To get rid of certain debts that are non-dischargeable in Chapter 7.
Chapter 13 has something referred to as the “super discharge,” which is a much longer list of dischargeable debts. A Chapter 13 bankruptcy can discharge a debt otherwise sustained in a Chapter 7 petition for bankruptcy. Examples include some tax debts, some government fines and penalties, debts involving embezzlement or fraud, and debts from intentional injury to a person or property.
- To take advantage of the lower payments arranged in a Chapter 13 repayment plan.
It usually turns out that the monthly payment under Chapter 13 is lower than that under Chapter 7. For instance, if you owe $15,000 on a car worth $10,000, you have to pay the full debt under Chapter 7, but only the true value of the car under Chapter 13. It is also possible to strip off a second or third mortgage under Chapter 13, making it unsecured so you don’t have to pay for it.
- To pay less money upfront.
Since attorney fees could be included in dischargeable debt, these are usually collected upfront before filing a Chapter 7 case. With a Chapter 13 case, it can be worked out that only a portion of bankruptcy lawyers’ fees are paid upfront and the rest of it is included in the payment plan. Collectively, it may seem like you’ll pay less to file a Chapter 7 bankruptcy, but it’s also about the feasibility and determining what your funds can handle on a monthly basis.
Help From a Seattle – Tacoma Bankruptcy Attorney
The above, of course, is an oversimplification of how Chapter 13 works. If you’re experiencing financial problems and considering filing for bankruptcy, it is best that you prevail upon the legal services of a bankruptcy attorney so that your specific situation may be reviewed and you can get appropriate counsel. For free legal consultation, call us at Northwest Debt Relief Law Firm to talk to one of our experienced bankruptcy attorneys.
The post 6 Reasons for Filing Chapter 13 Bankruptcy appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
Bankruptcy Filings are on the IncreaseA recent article in Yahoo Finance noted that bankruptcy filings are on the increase (https://finance.yahoo.com/news/2019-is-the-first-time-in-in-8-years-that-bankruptcy-filings-are-projected-to-rise-abi-221249707.html ; producer is Yvette Killian).The article states that according to the American Bankruptcy Institute, U.S. bankruptcy filings in July 2019 were up 3% from the same time a year ago. The article continued to state that “bankruptcy filings are on the rise as Americans pile up more debt. The latest ABI data pegs household debt near $14 trillion, which is $1 trillion more than the 2008 Great Recession peak.”At Shenwick & Associates we have been extremely busy this summer with bankruptcy filings and workouts for both individuals and businesses, and we expect this trend to continue in 2019 and 2020 given the rise in debt usage.In Jim Shenwick’s opinion in New York , we are seeing a “Tale of Two Cities” in that a segment of the population is doing extremely well, but many sectors in the city are hurting and at risk.Uber, Via and Lyft have hurt taxi medallion owners. Last month's taxi medallion sales were at approximately $130,000 per medallion, down from $1,300,000 three years ago. Politicians have not successfully addressed these issues to date.Vanguard has hurt the hedge fund industry, with many funds closing.Amazon is hurting retail and many retail stores in the city are closing, evidenced by the vacant storefronts we see on each block.Restaurants have been hurt and continue to be hurt by the increase in the minimum wage to $15 per hour, which has squeezed the bottom line. Many restaurants have closed or filed for bankruptcy as they are no longer profitable. Restaurant owners have also individually filed bankruptcy due to property lease guarantees they may have signed. Many young people are overburdened by student loans and have substantial credit card debt.Bankruptcy or out of court workouts may be a solution for some of the above-mentioned problems faced by individuals and businesses, and Jim Shenwick 212-541-6224 [email protected] can assist with those issues.
James Shenwick
Shenwick & Associates122 East 42nd St. (42nd & Lex. Ave SW Corner)
Ste 620
New York, N.Y. 10168Bankruptcy & Creditor’s Rights“We always appreciate referrals”
(W) 212-541-6224 ext. 113
Cell Phone: 917-363-3391
Fax 646-218-4600
E Mail: [email protected]
Web: http://jshenwick.googlepages.com
Blog: http://shenwick.blogspot.comLinkedIn: http://www.linkedin.com/in/jamesshenwick
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.