THREE FACTORS TO CONSIDER BEFORE FILING FOR CHAPTER 7

As Americans who are currently unemployed brace for a reduction in their unemployment check, many will look to find other ways to manage their household budget.  Some will use their savings or cut back on expenses even further, while others will undoubtedly need to file bankruptcy.  Those who attempt to file bankruptcy may want to file Chapter 7, but they first must qualify for Chapter 7.  Otherwise, they may be relegated to having to formulate a repayment plan in Chapter 13.

Chapter 7 is the quickest way to eliminate your debt problems and begin to rebuild credit.  In order to take advantage of Chapter 7, there are 3 primary factors to consider:

Do you and your spouse make too much money? What is your total household income?

Unless your debt is primarily business debt, in order to qualify for Chapter 7, you must first pass the Means Test.  The Means Test considers your total household income and your allowable expenses (based on National and Local Standards used by the Internal Revenue Service) to determine whether you have enough disposable income to propose a repayment plan to creditors.  If your income is below the median income level for your county/state, then you will qualify.  If your income is above the median income, you may still qualify, but you may also need to consider Chapter 13.  Talk with your bankruptcy lawyer to see if you pass the Means Test.

Do you stand to lose any assets? How much equity is built up in your house?

If you own a home with a substantial amount of equity or have other assets that could be sold to pay your creditors, you may want to consider filing Chapter 13 or selling those assets and using the money to work out settlements with your creditors.  Most creditors are willing to work with you and will take less than the full balance due in order to settle the debt rather than receiving nothing if you file Chapter 7.

Have you sold or transferred any property in the last year?

If you have sold or transferred property to anyone in the past year, you will need to disclose the details of the transaction in your bankruptcy petition.  If the person who received your property was related to you or if the consideration received was for less than fair market value, the transfer will be scrutinized by the Chapter 7 Trustee and the Bankruptcy Court.  It is possible that you could jeopardize your ability to receive a discharge because of the transfer, so be sure to discuss these transfers with your bankruptcy lawyer before you decide to file a case.

If you are struggling to pay your debts and concerned about the future welfare for you and your family, it is important that you seek the advice of a bankruptcy lawyer to ensure that your assets are protected and the debts you seek to eliminate are dischargeable.  Our attorneys have been assisting consumers and business owners with bankruptcy matters for over 25 years.  If you are considering filing for bankruptcy, please consider contacting the Nomberg Law Firm.  Our office number is 205-882-5005.

Steven D. Altmann has been a lawyer for more than 25 years. Steve has earned an AV rating from Martindale-Hubbell’s peer-review rating and was recently named a Super Lawyer and Top Attorney by Birmingham Magazine in the area of Bankruptcy Law.

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We are a Federal Debt Relief Agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/bankrupcty/three-factors-to-consider-before-filing-for-chapter-7/

7 MYTHS ABOUT BANKRUPTCY

Chapter 11 is a type of Bankruptcy typically filed by a commercial enterprise or business that desires to continue operating a business and repay creditors through a court approved plan of reorganization.  You continue to operate your business under supervision of the Bankruptcy court and the Bankruptcy Administrator.

Individuals who have debt that exceeds the debt limit allowed for a Chapter 13 may seek to file a Chapter 11 and there is a new provision for Small Businesses to seek protection under Chapter 11 through Subchapter V (“Subchapter 5”) that operates similar to a Chapter 13.  The new provision is called the Small Business Reorganization Act.  Click here to learn more about how Subchapter V can help you.

The goal of a Chapter 11 is to propose a plan to reorganize your business and restructure your operations to return to profitability.  One example of this may be a company with several locations that needs to reject a lease and close an underperforming location in order to save the profitable locations.  A Chapter 11 plan will also allow you to establish new terms of payment and discharge unsecured debt.

Due to the complexities of Chapter 11, our firm does charge for an initial consultation in order to analyze the financial situation of an individual or business who is considering filing for Chapter 11.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/bankrupcty/7-myths-about-bankruptcy/

SEVEN MYTHS ABOUT FILING FOR BANKRUPTCY

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/bankrupcty/seven-myths-about-filing-for-bankruptcy/

HOW TO FILE FOR BANKRUPTCY

[1]

These days, nearly everyone is experiencing tough financial times. With the ongoing fight against coronavirus and no notion of when the pandemic will end, the economy is experiencing an upheaval that rivals the statistics produced by the Great Depression. Individual states are in discord as to how to best handle the reopening of states to bring about some sort of forward motion that will result in jobs being restored and livelihoods regained. Even with many plans of attack in motion across the country, most American employees are still faced with daunting obstacles in the days to come. While daily concerns vary from one person to the next, the universal question on most minds is simple. When every avenue of financial breakthrough has been attempted, what should I do when I am still faced with a mountain of debt and have no means to repay it?  The thought of filing bankruptcy is embarrassing or overwhelming to many people, but sometimes it is the best option.

This leads to the ultimate question; how do I file for bankruptcy?

The first, and most important step, is finding the right legal counsel to walk you through the process. The ins and outs of bankruptcy can be confusing, and without a lawyer to guide the way, vital checkpoints of your bankruptcy case could be missed, resulting in the dismissal of your case. While it may seem counterproductive to seek the advice of a lawyer that costs money while legally proclaiming money is what you lack, there are some lawyers that work pro bono (at little to no charge). The state bar association will have a reference list of attorneys capable of handling your case if you are unsure of just how to go about finding representation.  However, the least expensive lawyer may not be your best option., so make sure that you are comfortable with the lawyer who will be filing your case.[2]

Next, your legal representation will counsel you on which form of bankruptcy is the right kind for your needs. These different forms are called Chapters, named for their placement within the Federal Bankruptcy Code. One such option is Chapter 7. This Chapter is typically a 90-day process from the time that you file your case to the time you receive your discharge.  A trustee is appointed to your case to investigate and sell assets to pay your debts.  Items such as clothes, household goods, tools, and vehicles are usually exempt from the liquidation process. The goal of this process is to obtain a discharge or cancel your debts. This is not the most appropriate option for everyone because an individual must satisfy a means test in order to qualify. If it is determined that you can pay a significant portion of your debt, then you may need to consider a Chapter 13 bankruptcy instead. In this Chapter, “wage earners,” as they are called, are given a plan devised by the court by which to pay back debts for a period between three to five years. At the end of this time, the remaining debts are discharged.[3]

After deciding which form of bankruptcy fits your situation best, all individuals wishing to file are required to attend a credit counseling session within the 180 days preceding the filing. The credit counseling session typically involves filling out a budget to review with your counselor who will discuss appropriate alternatives to bankruptcy. If an individual is married, both spouses are required to attend these sessions, though most can be completed on-line.[4]

It is at this point that you are finally ready to file for bankruptcy. You will now have to fill out a mountain of forms requesting information about your assets and debts, thus another reason to have legal counsel at hand to instruct you through the process.  Your attorney can help you navigate through the volumes of paperwork and other information that you will need to disclose in your bankruptcy petition to ensure you comply with the bankruptcy laws.

Bankruptcy can be the best opportunity to breathe life back into your finances. Consider all of your options before filing but realize that in these unprecedented times, bankruptcy may allow you to recover your financial health quicker than any other option.

If you are struggling to pay your debts and concerned about the future welfare for you and your family, it is important that you seek the advice of a bankruptcy lawyer to ensure that your assets are protected and the debts you seek to eliminate are dischargeable.  Our attorneys have been assisting consumers and business owners with bankruptcy matters for over 25 years.  If you are considering filing for bankruptcy, please consider contacting the Nomberg Law Firm.  Our office number is 205-930-6900.

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Steven D. Altmann has been a lawyer for more than 25 years. Steve has earned an AV rating from Martindale-Hubbell’s peer-review rating and was recently named a Super Lawyer and Top Attorney by Birmingham Magazine in the area of Bankruptcy Law.

 

[1] https://www.investopedia.com/articles/personal-finance/100714/when-declare-bankruptcy.asp

[2] https://www.greenpath.com/how-bankruptcy-works/

[3] https://www.moneycrashers.com/declare-file-bankruptcy-process/

[4] https://www.cfefa.org/

 

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/how-to-file-for-bankruptcy/

THE DEATH OF A PROMISE? A CLOSER LOOK AT THE FUTURE OF SOCIAL SECURITY

[1]

 Social Security is the promise made by the government to the hardworking American people. A portion of your every paycheck is withheld and placed in a common pool that you will one day benefit from. This promise is the reason we do not object, well, not all the time, to having a fraction of our hard-earned dollars taken away. We count on and rely upon the knowledge that one day in the future it will all have been worth it. It is the safety net for our own retirement savings plan and the hallmark of our government’s care for the well-being of its citizens. But what if this plan became unstable? What if this carefully laid out, thought-through scheme crumbled because of an unexpected disaster? What can the Social Security fund handle without collapsing?

Social Security is funded by current, working taxpayers. A portion of their income is withheld from each paycheck, which is listed as FICA taxes on paystubs. This tax is paid into a fund in the government that is then distributed to current citizens collecting Social Security benefits. The inherent flaw soon to trace cracks through the system is settled in the manner in which the fund is set up. It is not a savings account that citizens pay into, the fund takes the current revenue and uses this to pay the current beneficiaries their benefits. This system was already displaying fault lines with the decline in population regeneration. Less Americans were paying into the fund because the working population was not proportionate to the number of people collecting benefits. But these fault lines will soon crack open to swallow whole the remaining stores of the Social Security fund.[2]

A recent report from the Social Security Administration detailed the expectancy of the fund’s insolvency by 2035. This report was introduced before the full extent of the effects of the coronavirus were studied. Since this time, it is proposed by some experts that instead of bankruptcy in 2035, we could expect the collapse of the fund as soon as 2028. Insolvency does not necessarily mean the complete fallout of payments to retired Americans, it means that benefits will be slashed. Only a percentage of what is owed will be available. These cuts will only grow as time goes on.[3]

The timeline has been stepped up due to the effects of the pandemic on the working population. With the number of Americans unemployed reaching the same rates as those last seen during the Great Depression, those able to pay into the fund have bottomed out. Moreover, those recently unemployed due to the pandemic that are near the age of eligibility for Social Security benefits, many will elect to start drawing benefits earlier than anticipated in order to make up for the unexpected income loss.[4] With no revenue from which to draw upon to pay benefits, the Social Security Administration is drawing upon its miniscule reserves to pay beneficiaries. Further, Congress has permitted employers to delay payments of their Social Security payroll tax for two years, a further depletion of the immediate stores in the fund. Ongoing reforms may become a necessity in order to save the Social Security fund, including changes to eligibility, the amount allotted to individuals, and increases to payroll taxes.[5] Time will be the only indicator of the future of these benefits.

If you are hurt on the job due to unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, we will continue to protect the legal rights of our clients – those who are hurt on the job while working for Alabama employers.  If you have been injured on the job and want to learn your rights, please consider contacting the Nomberg Law Firm. Our office number is 205-930-6900.

 

[1] https://www.forbes.com/sites/ebauer/2020/03/12/forget-the-politics-heres-what-the-democrats-covid-19coronavirus-social-insurance-proposal-includes/#355c087d5d48.

[2] https://www.marketwatch.com/story/coronavirus-may-deal-the-final-blow-to-social-security-and-medicare-2020-04-28.

[3] https://reason.com/2020/04/24/social-security-will-be-insolvent-even-sooner-thanks-to-covid-19-pandemic/.

[4] https://www.politico.com/news/2020/05/17/coronavirus-social-security-2030-261207.

[5] https://reason.com/2020/04/24/social-security-will-be-insolvent-even-sooner-thanks-to-covid-19-pandemic/.

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Bernard D. Nomberg has been a lawyer for more than 20 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2019, Bernard was named a Super Lawyer for the 7th year in a row.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/future-of-social-security/

WILL I EVEN HAVE A JOB TO GO BACK TO? THE POTENTIAL EFFECTS OF TELECOMMUTING AND COVID-19

[1]

Laid off, furloughed, unemployed . . . these labels may, in essence, mean different things, but the nuances and subtleties of each variation feels alarmingly similar for the millions of Americans experiencing one or the other in the destructive wake of the coronavirus. Whether one’s employment has been terminated entirely or simply postponed until economic conditions are more stable or the need for a certain job is back on the uptake, the sense of panic and helplessness is a common theme. Questions running the gamut from “how long will I receive unemployment” to “will my job even be needed when this pandemic ends” are mounting and, unfortunately, largely unpredictable in answer.

Even in the midst of this uncertainty, there is good news and reason for hope. In April, the federal unemployment rate skyrocketed to 19.7%; however, the first decline in this rate since the onset of COVID-19 was reported for the month of May. With the phased re-opening of states that began last month, 2.5 million jobs were added to the economy and the unemployment rate dropped to 13.3%. While this is still an appallingly high percentage, it is progress. In the face of this resurgence, Americans may still be questioning the impact this may have on them personally. With approximately 30 million workers collecting unemployment benefits, this concern is not without merit.[2]

Enduring a season where only “essential” businesses remained open and massive corporations learned to function on a skeleton crew, the concern for the need of every position held before the pandemic is legitimate. For the employee, this is the waking nightmare. While no one can predict the future for all positions at every company, some experts are predicting that telecommuting will be the wave of the future to keep costs low and employment steady. Companies are choosing not to renew expensive leases on office spaces after experiencing the benefits of technological advances as it aids going to the office while never leaving your living room.

Still other experts are anticipating a reallocation of jobs. The focus of the American economy has shifted from leisure, tourism, and travel to delivery services, cleaning, and health care. For every ten jobs lost, three jobs are created. While Americans no longer have the luxury of traveling for vacations without fear of contracting this new virus, this very same hesitation has created an increased demand for services already in existence but often under-utilized. This new awareness of “essential” industries could be the short-term salvation for the economy.[3] As for the long-term impact of coronavirus on the economy, much is left to be determined with many questions still awaiting an answer.

If you are hurt on the job due to unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, we will continue to protect the legal rights of our clients – those who are hurt on the job while working for Alabama employers.  If you have been injured on the job and want to learn your rights, please consider contacting the Nomberg Law Firm. Our office number is 205-930-6900.

 

[1] https://nymag.com/intelligencer/2020/04/cares-act-unemployment-benefits.html.

[2] https://www.washingtonpost.com/business/2020/06/05/may-2020-jobs-report/.

[3] https://www.marketplace.org/2020/05/08/how-many-jobs-will-come-back-after-the-covid-19-pandemic-ends/.

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Bernard D. Nomberg has been a lawyer for more than 20 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2019, Bernard was named a Super Lawyer for the 7th year in a row.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/potential-effects-of-telecommuting-and-covid-19/

HOW MUCH LONGER WILL I HAVE TO WORK FROM HOME?

[1]

Working from home is the new norm for most Americans with almost two-thirds of the working population transitioned to couch labor since the beginning of the COVID-19 pandemic.[2] The sudden job site shift may have been a welcome change for most of these workers, allowing many to see the novelty of the inside of their home at eleven am on a Tuesday morning, but prolonged exposure has sparked unrest. What was once an embraced changed has now quieted down into a frustration (not so) stay-cation. While working from home has the benefit of lounge wear and a short commute to the couch, these advantages are balanced by ever-present children in a worker’s ‘office’ and a lost sense of structure. All of this has culminated in the ultimate question (and hopeful plea): when can I go back to work?

The daunting reality of the answer to this question is not an easy pill to swallow. It turns out that most companies are seeking to be the last to return to the office. In Alabama specifically, stay-at-home orders expired over a month ago on April 30th, yet many workers have yet to be called back into the office.[3] It may be a beneficial to employees that most bosses are realizing all the meetings that truly could have been an email, but this also means that companies are recognizing the potential to expand profit margins by offloading expensive office space. By having employees telecommute when possible, the need to house workers and monitor via technology is quickly becoming the desired end game. In fact, Nationwide insurance has closed five offices around the country and made a permanent move to have 4,000 employees work remotely. But this does not necessarily mean you will never see your coworkers while on the clock again. Some employers are reporting that prolonging back-to-office dates well-past the stay-at-home orders end is merely a precaution to allow management to reconfigure the layouts of offices and job sites in order to comply with social distancing and to minimize the spread of hazardous germs.[4] Employees may see upon the eventual return to the job site that offices have been reconfigured into open concept work spaces to increase employee productivity while decreasing the time spent within six feet of other employees.

With reconfiguration and mass sanitation underway, most offices have taken the approach of a phased reopening, only allowing a set proportion of the employee population to return to the office at a time in order to maintain control of the health of the office. But the end result of this plan, as hoped for by many employees, is to allow workers to return to the office. While a date for individual companies may not be a uniform standard across the board, it is a shared goal for most.[5]

If you are hurt on the job due to unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, we will continue to protect the legal rights of our clients – those who are hurt on the job while working for Alabama employers.  If you have been injured on the job and want to learn your rights, please consider contacting the Nomberg Law Firm. Our office number is 205-930-6900.

 

[1] https://www.forbes.com/sites/chriswestfall/2020/05/20/new-survey-shows-47-increase-in-productivity-3-things-you-must-do-when-working-from-home/#4de1a06780dc.

[2] https://www.theatlantic.com/health/archive/2020/05/work-from-home-pandemic/611098/.

[3] https://www.cnn.com/interactive/2020/us/states-reopen-coronavirus-trnd/.

[4] https://www.nytimes.com/2020/05/08/technology/coronavirus-work-from-home.html.

[5] https://www.govexec.com/workforce/2020/05/agencies-start-reopening-offices-though-approaches-vary/165658/.

 

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Bernard D. Nomberg has been a lawyer for more than 20 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2019, Bernard was named a Super Lawyer for the 7th year in a row.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/how-much-longer-will-i-have-to-work-from-home/