Sunday, February 17, 2019

Small business owners in bankruptcy

It is one thing to get in over your head while you have a stint of unemployment or under-employment, a medical issue, or a ugly divorce. Once the condition that created the need for bankruptcy passes, the bankruptcy case can be pretty straight forward. Once you add a debtor who is self employed or owns a small business of some sort, you have a whole new set of issues.

One of the first questions is, who owns the property or assets; the company or the debtor. I discussed this issue in Bankruptcy - who is the debtor? what is protected?

Image courtesy of  imagerymajestic at
 FreeDigitalPhotos.net
Another question is income and bookkeeping. Unless a debtor issues himself or herself a regular paycheck, his or her income will generally be measured by the gross proceeds of the business less actual business expenses. Accurate bookkeeping is essential to establish a debtor's/business owner's income.

Also remember the company is probably an asset. How much is it worth? Does it have inventory, accounts receivable, assignable contracts, or equipment? Is it an interest that can be sold to another business owner? Most times an interest is a small business has little or no value because the debtor is the business; however, the value of business needs to be considered.

Is the debtor planning to continue the business or has it ceased operation? If the debtor is planning to continue operating the business, he or she will have to plan to operate without credit for some time. If the owner is using credit at the time this process starts, a plan to move the business off credit needs to be discussed. 

What about complaints from customers and vendors? Usually, these complaints and debts can be discharged as long as the debtor did not commit fraud. Bookkeeping and records management become even more important under these circumstances. 

If customers and/or complaint to the US Trustee, the trustee's litigation branch may conduct a more thorough examination of the case than otherwise conducted. Then, a certification to a list of income and expenses may not be enough. The trustee's office may request bank records, receipts, credit card statements and other business record. Assuming these documents support the bankruptcy schedules and no evidence of fraud exist. the debtor should receive a discharge. Record keeping is key.

These are some of the issues for self employed and small business owners. Added considerations should be made in preparing a bankruptcy case.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

Tuesday, January 8, 2019

Validity Period of Form I-693 changed November 1, 2018

USCIS revised policy guidance for the validity period of Form I-693, Report of Medical Examination and Vaccination Record. Two timelines were significantly changed. 

First, Form I-693 should be signed by a civil surgeon no more than 60 days before filing the underlying application for an immigration benefit. If the Form I-693's signature is older than 60 days on the day the application is filed, the form is invalid. According to the policy guidance in Volume 8,Part B of the USCIS Policy Manual, the applicant will need to update  his/her I-693. 

The second change is the length of time the Form I-693 remains valid. The time has been extended from 1 year to 2 years. The purpose of the changes are to keep the form current longer and hopefully through the application process. The challenge will to file the application within 60 days of the completion of the form.


USCIS Policy Manual Volume 8-Part B-Chapter 4
For more information on USCIS and its programs, you can visit www.uscis.gov or you can follow USCIS on Twitter (@uscis), YouTube (/uscis), Facebook(/uscis), and Instagram (@uscis)."

If you want to know more about Mark Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.medveskylaw.com.

#BucksCounty #Immigration #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm


Tuesday, July 17, 2018

Credit after bankruptcy ... One of the most common questions

One of the most common questions I receive from clients is, "When will my credit come back?" I always try to assure my clients rebuilding credit can be done with a little effort and discipline. I also blogged about it in the articles at the links below:

Bankruptcy - mortgages and rebuilding credit - a brief conversation with a banker ...



But the question continues to come up and I found this article. I thought people might want to hear this from someone else:

@ thestreet.com by Brian O'Connell, published May 8, 2018 


Image courtesy of Master isolated images at
FreeDigitalPhotos.net
 "Bankruptcy afflicts over a million Americans on a yearly basis, and going under financially is widely viewed as a nightmare scenario. That isn't necessarily the case, as a new Lending Tree report shows.
In fact, more than 40% of Americans have a credit score of over 640 one year after filing for bankruptcy, 65% of bankrupt Americans see the same score (at least) three years after a bankruptcy..."


The article goes on to list actions a person can take to rebuild credit. There is life after bankruptcy.

If you want assistance, legal representation, or just want to know more about me, Mark M. Medvesky, or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

 #bankruptcy Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania
 
   

Saturday, June 30, 2018

Current photo ID - needed for bankruptcy


"Current photo ID please," sound pretty simple, right? That is one of the first questions asked by the trustee as he or she starts the creditors meeting. It is required. Not hard, right? Something we generally take for granted and do not really use often.

This can be a show stopper for the creditors meeting. I had a client who pled guilty to a DUI between the time he spoke to me to start his bankruptcy and the time I filed it. In Pennsylvania, the state requires the driver to physically surrender his/her license at the time of sentencing. 

So my client surrendered his driver's license and didn't mention it until I reminded him to bring it to the meeting. I asked about other photo ID. He had an expired passport. The assigned trustee would not accept the expired passport as ID. 

I recommended my client go to DMV to get a photo ID (again a PA thing). He laminated his social security card so the DMV would not issue a photo ID.  When he went to the local Social Security office to get a social security new card, the representative could not issue a new card without a current photo ID. He finally worked it out.

We had to continue the creditors meeting three times. One more continuance request would have generated a motion to dismiss the case from the trustee. The moral to this story is every detail is important. 

If you want assistance, legal representation, or just want to know more about me, Mark M. Medvesky, or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

 #bankruptcy Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania
 
   

Thursday, June 21, 2018

Quick Tip: Call your attorney .... whenever you receive a notice from the bankruptcy court

Image courtesy of vectorolie 
at FreeDigitalPhotos.net
Court notices come in basically two forms in a bankruptcy case. Many notices come through e-mail and the rules require many notices to be sent through regular mail. After any case commences, notices are rarely "served" like you see in the movies. While both of these forms can be convenient, they are not infallible. 

So many things can happen to an e-mail ... spam filters, mail box rules, information overload and missed, computer glitches. Mail takes time and can get lost. Missing notices are rare but do happen. If a client receives anything from a creditor's attorney or the court, he or she should contact his or her attorney as soon as possible. 

This is even more important in Chapter 13 cases. Chapter 13 cases take years to complete and many issues can occur without your attorney's knowledge. People can help their case by helping and working with their attorneys. 

If you want assistance, legal representation, or just want to know more about me, Mark M. Medvesky, or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

 #bankruptcy Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania