COVID-19 (Coronavirus) and Your Credit Score

COVID-19 (Coronavirus) and Your Credit Score Consumers who are experiencing a financial hardship may be wondering how potentially late or reduced payments might impact their credit scores.        The CARES Act Credit Reporting Provision The CARES Act amends the Fair Credit Reporting Act (FCRA). This new FCRA amendment provides protections only if a creditor approves a consumer for an “accommodation.”  An accommodation is an agreement for a forbearance, a payment deferral, a partial payment agreement, a loan modification, or “any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 (COVID-19) pandemic 

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Paycheck Protection Program Loan (PPP)

The CARES Act includes a Paycheck Protection Program (PPP) which provides $350 billion to help small businesses impacted by the pandemic and economic downturn to make payroll and cover other expenses from February 15, 2020 to June 30, 2020. Who is the lender? A Bank that is already an SBA lender.       When can I apply? April 3, 2020 for small businesses and sole proprietorships.                                         April 10, 2020 for independent contractors and self-employed individuals. Who can apply?     

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The Economic Injury Disaster Loan (EIDL)

The Economic Injury Disaster Loan (EIDL) The CARES Act includes a $10,000 advance (the Emergency Economic Injury Grant) within three days of applying for an EIDL. To access the advance, you must first apply for an EIDL and then request the advance.   The advance does not need to be repaid. See page 28 of the CARES Act. What is an EIDL Grant? The CARES Act appropriates $10 billion for emergency EIDL Grants.  While a business’s application for an EIDL Loan is pending, the applicant may apply for a grant of up to $10,000 (EIDL Grant), which shall be paid within three 

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The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to provide mortgage assistance to customers for up to 12 months due to hardship caused by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.  Fannie Mae, Freddie Mac and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus. Homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months You won’t incur late 

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ZOOM – 7 Tips on the New 341 Meeting of Creditors

1. Schedule a practice session with your client prior to the scheduled 341 Meeting of Creditors. This will provide a wonderful opportunity to resolve/troubleshoot most problems with both parties audio and video settings. > Practice Pointer: Do not use a cellphone. Use a desktop or laptop computer only. 2. Scan the entire bankruptcy petition and place it on your desktop. Select Share Screen once the 341 begins and turn to page 6. This will allow both the Trustee and Debtor to confirm the signature on page 6 and move the 341 along without further delay. > Practice Pointer: Try to 

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Student loans can be erased “discharged” in bankruptcy.

Student loans can be erased “discharged” in bankruptcy.   The attached Order discharging my client’s Discover Financial Services private student loans was signed by Judge Ashely M. Chan on March 25, 2020 pursuant to 11 USC § 523(a)(8) and 11 USC § 727.   Don’t listen to those Google lawyers with a JD degree in googling. As B.A. Baracus eloquently said: “I ain’t get time for that jibba jabba.”

Ink Signatures – Local Bankruptcy Rule 5005-7(b)(2)(A)

We’re All In This Together. In the US, the cascade of economic repercussions are beginning to sink-in as businesses close their doors; workers are furloughed; and worried consumers resort to the panic-buying of household essentials. We’re doing everything in our power to continue serving you in the way you’ve come to expect from us. We’ve deployed a mobile drop off system as of March 19, 2020 to ensure social distancing;  place the health and well-being of our Clients first; and comply with Local Bankruptcy Rule 5005-7(b)(2)(A) which mandates that all Debtors physically sign all documents. And remember that you can do 

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Obtaining a Default Judgment is a two-step process in Bankruptcy Court.

What “Default Judgment” Means A “default judgment” is the kind of judgment generally entered in cases where one party fails to show up to defend a lawsuit. Courts typically enter default judgments in favor of the plaintiffs in cases where the defendants did not respond to the complaint. Shortly after a complaint is filed, the defendant is supposed to respond to the complaint by submitting an answer or by filing a motion to dismiss. If the defendant does neither of those things, it risks entry of default and default judgment. The 1st Step – Entering a Default Obtaining a default 

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Understanding & Serving a Contested Matter

What is a Contested Matter? What constitutes a “contested matter” is not always clear, and the text of the rule provides little guidance. Other bankruptcy rules, however, specify what is a contested matter by referencing Rule 9014 in their text.             Contested Matters include: a) Proceeding to dismiss, convert or suspend a case. Fed. R.Bankr. P. 1017(f)(1). b) Motion to review appointment of Creditors’ Committee. Rule 2007.1(a) c) Review of any act or failure to act by the United States Trustee. Rule 2020. d) Objection to confirmation of a plan. Rule 3015(f). e) Request to 

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Stopping a Philadelphia Sheriff Sale on February 4, 2020

Stopping a Philadelphia Sheriff Sale on February 4, 2020 – T minus 15 minutes.  #sheriff #sale #philadelphia