As the value of medallions drop, owners are worried about possible bankruptcy, losing their livelihood and their homes. Faced with balloon payments, demands to refinance, and requests for mortgages on their homes, all coming from their lenders, drivers are not sure what to do or where to turn.
These problems are even harder to deal with as the number of fares decrease, the City limits working hours and working days, and operating costs increase.
Board Certified Bankruptcy Attorney Paul Hollender has developed bankruptcy strategies to help drivers. Hollender’s credentials
Do you lease or do you own the medallion? Do you want to keep driving a medallion cab? How old are you? How is your health? Do you have equity in your home? How much can you afford to pay on the loan each month? Do you have equity in your car? How is your credit? What do you want to do for the rest of your life? Do you have any assets? Do you have property back home? Do you have credit card debt? Does your spouse have assets or credit card debt? Who is your bank? What documents did you sign for the bank? What do your last two tax returns look like? How much does it cost to run your household each month?
With the answers to these questions can help tailor a specific strategy for you. Chapter 7, Chapter 11, or non-bankruptcy options might be best. No two cases are exactly the same.