Bankruptcy - Do you know the US Constitution provides for our Bankruptcy Laws?

The framers realized that the ability to discharge debt was important for the health of our economy and recognized the need to have a uniformed system. The Constitution states:

"The Congress shall have Power To...establish...uniform Laws on the subject of Bankruptcies throughout the United States...." Article I, Section 8, Clause 4

The leaders of the most self-reliant and individualistic society in our history understood people had to have an opportunity to reset their financial life from time to time. Read more about the Bankruptcy Clause.

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 or call us a 215-660-3170 and schedule an appointment.

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

USCIS- DHS Announces 18-Month Redesignation and Extension of Temporary Protected Status for Syria

Direct from USCIS:

"WASHINGTON—Secretary of Homeland Security Jeh Johnson has redesignated Syria for Temporary Protected Status (TPS) and extended the existing TPS designation for the country from Oct. 1, 2016, through March 31, 2018. This allows eligible nationals of Syria (or persons without nationality who last habitually resided in Syria) to register or re-register for TPS in accordance with the Federal Register notice published today [1 August 2016].           Who is Eligible Current TPS Status When to File Current TPS beneficiaries from Syria Have TPS To extend your TPS, you must re-register during the 60-day re-registration period that runs from Aug. 1, 2016, through Sept. 30, 2016. Syrian nationals and persons without nationality who last habitually resided in Syria, who have: Continuously resided in the United States since Aug. 1, 2016, and Been continuously physically present in the United States since Oct. 1, 2016. Do not have TPS To obtain TPS, you may apply for TPS during the 180-day initial registration period that runs from Aug. 1, 2016, through Jan. 30, 2017.   Individuals re-registering for TPS: Current beneficiaries under Syria’s TPS designation seeking to extend their TPS status must re-register during a 60-day period that runs from Aug. 1, 2016, through Sept. 30, 2016. U.S. Citizenship and Immigration Services (USCIS) encourages beneficiaries to re-register as soon as possible.   The 18-month extension also allows TPS re-registrants to apply for a new Employment Authorization Document (EAD). Eligible Syria TPS beneficiaries who re-register during the 60-day period and request a new EAD will receive one with an expiration date of March 31, 2018. USCIS recognizes that some re-registrants may not receive their new EADs until after their current work permits expire. Therefore, USCIS is automatically extending current TPS Syria EADs with a Sept. 30, 2016, expiration date for an additional six months. These existing EADs are now valid through March 31, 2017. To re-register, current TPS beneficiaries must submit: Form I-821, Application for Temporary Protected Status (re-registrants do not need to pay the Form I-821 application fee); Form I-765, Application for Employment Authorization, regardless of whether they want an EAD; The Form I-765 application fee (or a fee-waiver request) only if they want an EAD. If the re-registrant does not want an EAD, no application fee is required; and The biometric services fee (or a fee-waiver request) if they are age 14 or older. Individuals applying for TPS for the first time: For Syrian nationals (and persons having no nationality who last habitually resided in Syria) who do not currently have TPS, the TPS redesignation may allow them to apply for TPS if they have continuously resided in the United States since Aug. 1, 2016, and have been continuously physically present in the United States since Oct. 1, 2016. Applicants must meet all other TPS eligibility and filing requirements. To apply for the first time, individuals must submit: Form I-821, Application for Temporary Protected Status; The Form I-821 application fee; Form I-765, Application for Employment Authorization, regardless of whether they want an EAD; The Form I-765 application fee, but only if they want an EAD and are 14 to 65 years old (those under 14 or 66 and older do not need to pay the Form I-765 fee with their initial TPS application); and The biometric services fee if they are age 14 or older. Individuals who still have a pending initial TPS application under Syria’s designation do not need to submit a new Form I-821. However, if they currently have a TPS-related EAD and want a new EAD, they should submit: Form I-765, Application for Employment Authorization; The Form I-765 application fee, regardless of their age; and A copy of the receipt notice for the initial Form I-821 that is still pending. Applicants may request that USCIS waive any fees based on inability to pay by filing Form I-912, Request for Fee Waiver, or by submitting a written request. Fee-waiver requests must be accompanied by supporting documentation. USCIS will reject the application of any applicant who fails to submit the required filing fees or a properly documented fee-waiver request. All USCIS forms are available for free. Download forms or order them by mail through the USCIS website at uscis.gov/forms or by calling the USCIS Forms Request Line toll-free at 1-800-870-3676.   Applicants can check their case status at My Case Status Online or by calling the USCIS National Customer Service Center at 1-800-375-5283 (TDD for the deaf and hard of hearing: 1-800-767-1833).   For more information about USCIS and its programs, please visit uscis.gov or follow us on   Twitter (@uscis), YouTube (/uscis) and the USCIS blog The Beacon."      If you want assistance, legal representation, or just want to know more about Mark Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.   #BucksCounty #Immigration #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm

Why you should not borrow from your retirement fund...

This is just a quick entry about using retirement money to pay back debt. If you read some of my other blog entries, you may find where I talk about keeping your retirement money for retirement. Under bankruptcy protection in Pennsylvania, you can usually protect 100% of your retirement accounts.

Image courtesy of David Castillo Dominici
at FreeDigitalPhotos.net

This LSS Financial Counseling Blog article;  4 Big Reasons Not to Borrow From Your Retirement Fund, gives you a couple additional reasons not to use your retirement fund. The article lays out four reasons:

- You’re stealing from your future self

- You’ll have less options

- It’s not free money

- There are risks

The article explains each reason. It talks about other options instead of bankruptcy. But that is ok because financial problems do not have a one-size fits all solutions. Check out the article if this topic interests you.

You can also check out some of my other blog entries:

- Bankruptcy - I cannot say it any better than this: "Bankruptcy is an excellent retirement strategy"

- Bankruptcy - How can I file bankruptcy with $50,000 in my retirement account?

- Bankruptcy - When is it a "good" time to file?

-  New Reviews - Have you checked my review page recently?

 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 or call us a 215-660-3170 and schedule an appointment.

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

Debt Collection - News to Watch - "Debt collectors could face new limits on calls"

On USA Today's website you will find an article on new rules being consider for debt collectors: Debt collectors could face new limits on calls.
 


Image courtesy of stockimages at FreeDigitalPhotos.net

These new rules will place dramatic limitations on debt collecting practices. The article states;


"... Third-party debt collectors would be limited to up to six tries each week before a consumer is actually reached, according to proposals under consideration by the Consumer Financial Protection Bureau. Once the consumer is reached, the collector could make only three attempts total per week, including phone calls, emails and texts. 

The CFPB wants to limit excessive or disruptive calls and make sure that collectors are going after debt that someone actually owes..."

This could also help people who may be responsible for the debt but will never be able to pay it. The people I am thinking of are grandparents or senior parent stuck with a debt they co-signed for a grandchild or child. This is definitely a change to watch.

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 or call us a 215-660-3170 and schedule an appointment.

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

Bankruptcy and equity in your home Part 3 (final): I have too much equity in my home ... now what?

Image courtesy of Mister GC at FreeDigitalPhotos.net

So now you are a debtor that owns more of your home than can be exempted (protected) under chapter 7 bankruptcy; what do you do? Usually when this happens, the first thing people tell me is "I tried to get a home equity loan to pay my debt ... but my credit is so bad now, I cannot get a loan." The client wanted to use their equity to pay down their unsecured credit.

This is the time to consider filing for bankruptcy protection under Chapter 13. This is the way a debtors can protect their equity in their homes. So, of course, this is my recommendation. I'll usually say, "we could probably protect your home under chapter 13 with a payment plan."

Debtors continuously surprise me with the immediate response of "I'm not sure I want to do that." Think about it. They were usually willing to take a loan against their home, pay interest on the new debt and pay off the credit cards. Chapter 13 offers the opportunity to not take out new debt, pay mortgage arrears without additional penalties, discharge credit card  debt not paid during the chapter 13 payment plan, and not have to make payment for longer than 5 years. Obviously, that is an over simplification of the process but  worth the conversation. In many instances, chapter 13 can be better than a home equity loan.

My point is people, debtor with homes in trouble, should be open to chapter 13 as an option to chapter 7 bankruptcy. I always explore chapter 7 as the first option but it isn't always available. Chapter 13 is a viable option. Think of it as a second mortgage managed by the court instead of a financial institution.

On a side note, if you read some of my earlier blogs, you know I have written entries against using equity in your home to pay off unsecured debt. But there are times it may be wise to use proceeds from the sale of your home as you are down sizing. I have a client now who down-sized and thought she would pay off her smaller new home instead of her debt. She thought it would guarantee her a place to live as she aged. But the debt just grew and she never got it under control. Now she is in a chapter 13 case because she had too much equity. In hind sight, she may have been better off paying down the unsecured debt and getting a small mortgage. Again, just something to consider.

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 or call us a 215-660-3170 and schedule an appointment.

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