HOW DO I KNOW IF I QUALIFY FOR CHAPTER 7 BANKRUPTCY? – TAKE THE MEANS TEST

If you are contemplating filing for bankruptcy, you have probably suffered a tragic event in your life.  Possibly a serious injury to you or your spouse, loss of a job, or closure of your business.  You may find yourself incurring a significant amount of debt, through no fault of your own.  The need to survive and to put food on the table for your family may require you to use credit cards or borrow money that you hope to be able to repay at some future date.

If you find yourself in this unenviable position, you may decide that filing for bankruptcy is your best option.  But, how do you know if you qualify for bankruptcy?    You should first speak with a bankruptcy attorney who can help you navigate the formula of the Means Test.

The bankruptcy “Means Test” is a formula designed to keep people with a large household income from filing for Chapter 7 bankruptcy.  This does not mean that you are prohibited from filing bankruptcy because you earn a good salary.  You may still qualify for Chapter 7 if your expenses are large enough to offset your income.  Also, if you fail to qualify, then you may still be eligible for Chapter 13 bankruptcy.

It is important to know that only bankruptcy filers with primarily consumer debts – not business debts – need to take the means test.  If your debts are primarily business debts, then you automatically qualify for Chapter 7 bankruptcy.  There have been a number of cases decided about whether a debt is considered a consumer debt or business debt, so talk with an experienced bankruptcy lawyer if you are not sure whether your debts are consumer or business.

HOW DOES THE MEANS TEST WORK?

The means test was designed to limit the use of Chapter 7 bankruptcy to those who cannot repay their debts. It does this by deducting specific monthly expenses (derived from the Internal Revenue Service for National and Local Standards) from your “current monthly income” (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.”

The first step of the means test is to determine whether your income is more or less than your state’s median income attributable to the size of your household.  If you earn less than the median income for a household of your size in your state, you pass. You’re done. You do not need to complete the rest of the means test. You can file for Chapter 7.

WHAT IF I MAKE MORE THAN THE MEDIAN INCOME?

For those whose household income exceeds the state median, the Means Test computations become more complicated. You must determine whether you have enough disposable income, after paying your allowed monthly expenses, to pay at least a portion of your unsecured debts.  If your disposable income adds up to more than a certain amount as prescribed by the Bankruptcy Code, you have failed the Means Test and must consider an alternative to Chapter 7.  The only way you can still file Chapter 7 is if you can rebut the presumption of abuse by demonstrating to the Court special circumstances that either justify additional expenses or an adjustment to your income.

WHAT IF I DON’T PASS THE MEANS TEST?

If you don’t pass the means test, you’re limited to trying to work out settlements with your creditors outside of bankruptcy or you can file Chapter 13 bankruptcy.  Chapter 13 requires you to propose a plan for repaying your creditors with monthly payments over a three- to five-year period.  Most people who file for bankruptcy prefer Chapter 7, which typically requires no repayment of debt and is less expensive than Chapter 13.

However, Chapter 13 bankruptcy is still the best way to handle specific problems, like curing a default on a home mortgage and repaying debts that will not go away in bankruptcy, such as most taxes and child support arrearages.  But before you settle on Chapter 13 bankruptcy, be sure to talk to a lawyer. You might find that you are able to pass the means test after all.

If you are struggling to pay your debts and concerned about the future welfare of 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.

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/chapter-7-bankruptcy-means-test/

AN UNSAFE SKY

[1]

Just last week, a Southwest Airlines flight attendant was assaulted by an unruly passenger upon taxiing the runway in the San Diego destination. The passenger was reportedly calm throughout the prior duration of the flight, but a confrontation regarding the passenger’s disregard of standard inflight instructions escalated when the passenger attacked a flight attendant. The brutal assault resulted in the attendant losing two teeth and sustaining injuries to the face. According to a witness, the flight attendant left the altercation covered in blood. Paramedics and police officers met the plane at the gate. The passenger was arrested on a charge of battery and taken into custody to the Las Colinas Detention facility. The flight attendant was taken from the plane to be treated at Scripps Memorial Hospital.[2]

Lynn Montgomery wrote a letter to the CEO of Southwest Airlines, Gary Kelly, to address the unsafe environment passenger misbehavior has caused. According to the letter, incidences of violence and misbehavior have risen in the year 2021 from the typical yearly amount of 100 to 150 formal cases to the staggering amount of 2,500. And it is only June. Montgomery noted in her letter that passenger non-compliance has also become more aggressive in nature. The letter implored CEO Kelly to respond to the need of flight attendants to be ensured a safe working environment, requesting additional air marshals and notice of changes in flight schedules to reduce the stress caused by uncertainty in flight attendants’ work schedules. Montgomery stated that flight attendants “are doing all they can do to ensure compliance while creating a safe environment for all passengers and crew, but they also need the support and tools required to prevent injury to ourselves and others.”[3]

But is that not exactly an employer’s responsibility in the first place? The Occupational Safety and Health Administration (also known as OSHA) sets guidelines across the country to provide accountability for an employer’s safety standards in the workplace. Further, workers’ compensation must be carried by any employer that employs at least five people, so coverage is ensured for an employee that sustains an injury on the job. When a third person causes the injury of an employee, a third available remedy is a personal injury claim or lawsuit filed against the said person directly.

Since the flight attendant works for Southwest Airlines, workers’ compensation benefits should be available to cover her medical expenses, lost wages, and any permanent disability sustained. Reading this list of coverage seems to fall short of true compensation for the ordeal. It is likely that if the flight attendant files suit against the passenger for assault and battery, punitive (think punishment) damages could be awarded due to the alarm and shock of the passenger’s actions, as well as the true damage the employee sustained, and passenger caused. However, the flight attendant may find a more palatable avenue in filing suit against Southwest Airlines for creating an unsafe work environment. The letter by Montgomery indicates that the airline was on notice of the drastic rise in violence perpetrated against its employees, and yet no action was taken in response to this increased risk of injury. As such, it could be said that Southwest would be liable to the flight attendant for not acting in accordance with this notice of danger. Time will tell the outcome of the flight attendant’s road to recovery.

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.

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Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2020, Bernard was named a Super Lawyer for the 8th year in a row.

 

 

[1] https://www.shermanstravel.com/advice/carry-on-pet-policy-by-airline-the-full-rundown.

[2] https://www.nbcnews.com/news/us-news/southwest-airlines-flight-attendant-loses-two-teeth-after-passenger-assault-n1268493.

[3] https://www.nbcnews.com/news/us-news/southwest-passenger-accused-knocking-out-flight-attendant-s-two-teeth-n1268909.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/an-unsafe-sky/

MY WORKERS’ COMPENSATION CASE IS PENDING, CAN I FILE FOR BANKRUPTCY?

The answer is YES, but there are some key issues for you to consider before you file:

1. WILL I QUALIFY FOR CHAPTER 7?

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 over the 6 months prior to the month you file bankruptcy 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 you were working and earning your regular salary during the 6-month lookback period, your average monthly income may be too high (since your workers compensation benefits are only 2/3 of your wages).  If your income is above the median income, you may still qualify, but you may also need to consider a Chapter 13.

If you are just starting to receive Temporary Total Disability (TTD) benefits, you may need to wait a few months before filing to ensure that you qualify or that your Chapter 13 payment will be manageable.

2. HOW LONG WILL I RECEIVE WORKERS COMP BENEFITS?

Your TTD benefits could last anywhere from 6 months to 6 years.  The length of time that you will receive benefits, will help to determine whether you can propose a long-term repayment plan through Chapter 13 or whether you will most likely need to file a modification of your plan once your income increases.  Filing bankruptcy under the assumption that your TTD benefits will be there forever is setting yourself up to fail.  The steadier your income stream the smoother your Chapter 13 plan will work.

3. IS MY WORKERS COMP SETTLEMENT EXEMPT IN BANKRUPTCY?

In Alabama, the answer is YES.  §25-5-86 of the Alabama Code provides that “Claims for compensation, awards, judgments, or agreements to pay compensation owned by an injured employee or his or her dependent shall not be assignable and shall be exempt from seizure or sale or garnishment for the payment of any debt or liability.”  So, when you receive a substantial lump sum payment, your work injury settlement should be exempt.  However, this begs the question of whether you would even need to file bankruptcy since most of your creditors cannot seize or garnish your TTD benefits.  Make sure you speak with an experienced bankruptcy lawyer before you decide to file to determine the best time to file.

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.

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/my-workers-compensation-case-is-pending-can-i-file-for-bankruptcy/

MAXIMIZE THE VALUE OF YOUR WORKERS’ COMPENSATION CLAIM

[1]When it comes to navigating your workers’ compensation claim, it may not even cross your mind to wonder how best to settle your claim. The endless onslaught of questions revolving around treating your injury seem to take top billing. But what exactly is your injury worth? Should you seek a lump sum settlement or weekly benefit checks? How long will the checks last? If you take the lump sum option, will it be less than weekly benefits? What is the right amount to settle for? While every case is different, there are important steps every injured worker can take to insure they receive the maximum possible compensation for their injuries.

The first step to take is to report your injury promptly and correctly. Waiting only increases the risk that you will be met with obstacles when trying to prove the details of the accident. When reporting the injury, make sure to put the supervisor or safety department on notice on the event and injury, and make sure you notify them that you need medical care. Also, keep a copy for your own records, if possible. This is how your workers’ compensation claim is initiated.

Next, timely seek medical treatment immediately after incurring your injury. If you wait to receive medical treatment, this could give the insurance company cause to lower a settlement offer or deny your claim. Medical treatment is also the best way to corroborate the details of your injury as reported in your claim. Medical professionals can document the extent of your injury and physical restrictions, which can go a long way in fighting for your claim.

Document every action taken in relation to your claim. While some portions of the process may not seem important, keep all of the paperwork and take notes of what your doctor says and does at each visit. The costs of these visits and treatments can be used in settlement negotiations, the actions of your doctor can be proof of the extent of your injuries, and even your own words to the doctor can be used for (or against) your case. Everything associated with your injury can have the purpose of increasing your compensation. Do not leave anything to chance.

Do not go through this process alone! You really should consult an experienced workers’ compensation lawyer. Do your research online to find the right lawyer for your claim. There are things you do not know about the workers’ compensation process that can be used against you. Everything you say to a medical professional, employer, fellow employee, or insurance company can be documented and utilized for your benefit or for the benefit of the insurance company. To make sure that you avoid the landmines rampant throughout this process, having an experienced attorney on your side who can navigate these pitfalls is invaluable. If the insurance company sends you checks for an incorrect amount, a lawyer can assist you in receiving a check for the full amount. If your employer ignores your claim, a lawyer will know how best to proceed. What you are unaware of can hurt you, so align yourself with a knowledgeable attorney who is familiar with workers’ compensation.

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.

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Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2030, Bernard was named a Super Lawyer for the 8th year in a row.

 

[1] https://www.matrixinssolutions.com/business-insurance/workers-comp.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/maximize-value-of-workers-compensation-claim/

REASONS FOR DELAY IN WORKERS’ COMPENSATION CASES

[1]

When the goal of a workers’ compensation claim is to receive benefits to provide for recovery of an injury, the light at the end of the litigation tunnel seems distant without incurring any delays. Filing a workers’ compensation claim can already seem like a minefield of unknowable traps and obstacles lying in wait without accounting for the likelihood that your case’s end could be pushed back again and again. When medical bills are piling up, the financial stress only adds to the pain of the injury. Rather than leaving more questions unanswered, this article’s aim is to shed some light on what goes on behind the curtain.

Written notice of your injury to your employer must be given within ninety days of the accident for the injury to be compensable, though reporting the injury within five days is recommended. After this, you have two years to file a claim for workers’ compensation benefits. In turn, your employer will notify its insurance provider of the claim for benefits in order to determine the compensability of the injury.[2] This is the starting point of using delay as a tactic against the employee during the compensation process.

It is imperative to keep in mind that insurance companies, like any other corporation, operate for the purpose of turning a profit. While insurance firms may market themselves as for the people or for the employee’s benefit, the financial bottom line is still a driving force of its operation. This leads to insurance adjusters causing undue delay when responding to claims. For example, an adjuster for the insurance provider may ask for an employee to provide information to the insurance firm that is not needed but takes time to produce. Once the information is provided, the adjuster may take longer than necessary to respond to emails or communications from the employee, causing further delay.

The purpose in delay is twofold. On the one hand, it prolongs the time until the insurance provider must pay out the benefits to the claimant, and on the other, it weakens the position of the employee, creating a dire need for benefits so that the employee is willing to accept a lower settlement offer. Insurance companies maintain funds in interest-accruing account. The longer a larger sum is left in the account, the greater the return on the principal. This creates the incentive for insurance companies to delay paying out large lump sum benefits. The delay in a return on the claim, in turn, creates a struggling financial situation for the injured employee who cannot return to work, yet has medical bills stacking up that must be paid. When money is sorely needed, the insurance provider can get away with paying less to the employee who will take whatever he can get in order to avoid amassing debt.

This is the reason consulting a workers’ compensation is of the utmost importance. There is more than meets the eye with filing a claim for work comp benefits, and every employee deserves full compensation for injuries sustained on the job.

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.

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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 2020, Bernard was named a Super Lawyer for the 7th year in a row.

 

[1] https://www.hq-law.com/blog/workers-compensation/bad-faith-delay-in-payment-workers-compensation/.

[2] https://www.workplacefairness.org/file-workers-comp-alabama#5.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/reasons-for-delay-in-workers-compensation-cases/

MAJOR LEAGUE BASEBALL AND WORK COMP CLAIMS

[1]

February 17th was the general reporting date for Major League Baseball’s (MLB) annual Spring Training. All players reported to camp by February 26th. The 2021 season has its Opening Day scheduled for Thursday, April 1, 2021.[2] In the time of COVID-19 and working from home, the thought of regular baseball games to break up the monotony is a bright spot of hope for many. The drama of wins and losses, injuries, and triumphs, will provide much-needed excitement for those of us still unable to regularly meet others face-to-face.

While the game of baseball for fans may be just that, a game, for those on the field, it is their place of work. So what does that entail when a player is injured during a game or training? It happens almost weekly during the season – serious injuries to stars, subs and anyone who is putting their body on the line for their profession. Some injuries are career-ending. Bo Jackson, Tony Conigliaro, and Kerry Wood are three who come to mind. However, most injuries sideline the player for the season or certain periods of recovery. The 2020 season was largely lost to injury for Noah Syndergaard (Tommy John surgery), Stephen Strasburg (carpel tunnel neuritis), and Yordan Alvarez (knee). If the MLB is considered a workplace for its players, does that make injuries compensable by workers’ compensation?

According to a The New York Times report, pursuant to the MLB Collective Bargaining Agreement, since 2003 workers’ compensation insurance covers injuries that incur while a player is “on the job.” Baseball teams are generally obligated to cover the full cost of any medical care that a player requires for a baseball-related injury, regardless of the financial benefits to which the player may have been entitled under workers’ comp. This policy is for more than just the players, it includes any employee of the team as well. The other employees include front office personnel, food services and ushers, team trainers, and many others.

The only difference between team costs on premiums depends on the payroll size, the injury the team must cover, and the fee schedule of the state in which the team operates. What this boils down to is simple. The team covers the cost of the injury, and the player signs over the right to the team to recoup what it can from the workers’ compensation policy. Anything that the policy does not cover is the responsibility of the team. Regardless of the cost of the surgery or the expense of rehabilitation, the team is on the line, as the employer, to foot the bill for the entire amount.[3]

The difference between an injury for a Major League Baseball player and a general employee is that the baseball player does not require temporary disability benefits because he retains the ability to receive his usual salary while sidelined. The only potential point for which a player would seek additional benefits would be if he needed long-term benefits after suffering a career-ending injury. But in the event that a player can heal and return to the game, the team keeps whatever money it can recover in order to offset its costs.[4]

While we all hope our favorite players avoid any injuries this season, at least MLB has a fine-tuned way to get its players back in the game.  Play Ball!

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.

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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 2020, Bernard was named a Super Lawyer for the 8th year in a row.

 

 

[1]  Sean M. Haffey/Getty Images

[2]  https://www.cbssports.com/mlb/news/ranking-mlb-teams-by-pressure-to-win-2021-world-series-yankees-take-top-spot-from-dodgers-mets-in-top-five/

[3]  https://www.nytimes.com/2013/09/19/sports/baseball/harvey-is-covered-like-any-worker.html?searchResultPosition=1

[4] https://blogs.fangraphs.com/major-league-baseball-and-workers-comp/.

 

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/major-league-baseball-and-work-comp-claims/

TIPS FOR APPLYING TO LAW SCHOOL

[1]

Applying to Law School

How to Stand Out in the Crowd

 

You have finally made it through all of undergraduate school. It may have seemed like a holding pattern keeping you from finally getting where you have wanted to be all along. Law school. But now that the time has come to apply, what is it exactly that you should be focusing on? The LSAT is only a portion of your application package, so after the test is over, the real work begins.

The most important piece of information regarding the application process is the one that applies to nearly every area of the process: remember that law schools are looking at your whole person. Admissions officers are seeking to understand who you are as a person, not just as a student. While LSAT scores and undergraduate GPA factor greatly into the decision, schools look beyond statistics to gain a better sense of the person behind the numbers. This is where the personal statement takes center stage. This is the applicant’s opportunity to show off not only writing abilities, but a spark of personality. Humanizing yourself to the admissions officer makes a stack of papers stick out. Are you the first in your family to attend law school? What do you plan to achieve by earning a juris doctor? Be genuine and honest in your answer, giving a complete picture of who you are as a person. This can also be the place to compensate for a lower LSAT score or GPA if a standardized test is not the best representation of who you are as a student.[2]

Including letters of recommendation with your application can only help your chances of gaining acceptance. Ask for letters from people such as employers, professors, or mentors who can sing your praises. Make sure that these writers have known you for a significant period in order to give the letter greater weight. If the recommender can attest to your personal growth and achievement over a considerable time, all the better.[3]

Apply to a school that meshes with your goals. If your dream is to be a litigator, search for a law program that boasts trial teams and moot court competitions. If public speaking sounds like your idea of a nightmare, look for a school that touts clubs which focus on transactional studies. Not all schools are equal for every person. Think beyond the law school ranking tiers and find a program the coincides with your plans for the future. Opportunities abound at every level of law school, so fixating on rank alone will keep you from a full scholastic experience.[4]

An area to an application given little thought, because it exists outside of submitted materials, is social media. With growing regularity, social media accounts are scoured as a potential source to accept, or reject, a potential candidate. Using your own name as your account handle is best practice if you plan to keep your social media public as an avenue to display to admissions officers that you have what they will look for in a potential student. Be sure that all the information you make public is of a nature that should be public. Check the photos you are tagged in and remove all traces of activities that would reflect poorly on your potential for academic success. If having your account set to public seems like too much exposure, ensure that your account is set to private. Your masthead photo will still be viewable, so make certain it is a photo you would be comfortable showing to the world, because the world is watching!

Finally, start early! The longer you wait to begin, the greater the margin for panic. While procrastination is peaceful in the moment, nothing compares to finishing your application in enough time to proofread for errors. All the time and hard work spent on your application would be cast in the shadow of missing commas and misspelled words. Can you imagine hitting send only to review your submission and be faced with a screenful of mistakes? Save yourself the heartache and get to typing. Your dreams deserve a head start.

Alexa Wallace is currently a third-year law student at Samford’s Cumberland School of Law, where she is the Research and Writing Editor of the American Journal of Trial Advocacy and Associate Justice of the Henry Upson Sims Moot Court Board. Wallace holds a master’s degree in applied cognition and neuroscience from the University of Texas at Dallas as well as a bachelor’s degree in psychology from Lee University. None of this would have been accomplished without the existence of croissants.

[1] https://www.shu.edu/pre-law/law-school-application-process.cfm.

[2] https://www.lsac.org/blog/deans-share-tips-law-school-application-process.

[3] https://www.thebalancecareers.com/law-school-admissions-tips-2164363.

[4] https://money.howstuffworks.com/personal-finance/college-planning/admissions/5-law-school-admission-tips.htm.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/tips-for-applying-to-law-school/