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Bankruptcy Archives

Free Bankruptcy Screening for Taxi Medallion Owners

Every day I receive phone calls from taxi owners requesting information about bankruptcy. There are two most common types of bankruptcy are Chapter 7 and Chapter 13

Taxi Owner uses chapter 13 to eliminate $600,000 debt by paying $900 per month for 5 years.

He could not stand the pressure of the monthly note payments so he visited us for advice. We determined that he could not file chapter 7 bankruptcy because his house was worth too much. It appraised at $485,000 and he had paid down his mortgage to $63,000. That left $422,000 in equity. His wife owned half the house, so his share was worth $211,000, but he was entitled to a homestead exemption of only $165,000. That left $46,000 of equity that could not be protected. If we filed a chapter 7 case, the bankruptcy trustee would ask him to pay a lump-sum of $46,000, and if he could not pay it, the Trustee would sell the house.

Issues that can prompt the need for immediate debt relief

Most New York residents, as well as people in other states, understand what it's like to face temporary financial problems. From minor issues, such as having to pay a late phone bill or come up with some cash to get a few extra groceries before the next paycheck arrives to serious problems involving creditors threatening litigation or lenders saying they're considering foreclosure, financial crises of any kind can be quite stressful.

When Can Chapter 13 Bankruptcy help Taxi Medallion Owners?

Taxi medallion owners face overwhelming challenges these days.  After they make their loan payments and operating expenses, they have nothing left to support their families. While Chapter 7 bankruptcy (surrender your medallion and wipe out your debts) works if you have no other assets, there are times when filing Chapter 7 creates too much risk.  

When Can Chapter 7 Bankruptcy help Taxi Medallion Owners?

Taxi Medallion owners have been wrestling for solutions to refinancing demands of the lender. Chapter 7 bankruptcy requires that you be willing to surrender your medallion. Under the right facts, you will not have to repay the loan and can get your life back.

Abandoning a mortgage typically not the best debt relief plan

When you first began noticing you were struggling financially, you probably did what many other New York residents in similar situations do: tried to cut spending, looked for sales when purchasing things, and perhaps even sold a few items to increase cash flow. That may have even worked for a while.

Are you struggling financially? Have you considered Chapter 7?

An old cliché says, "The definition of insanity is doing the same thing over and over again, but expecting a different outcome." You might feel this way as you attempt to fix your financial situation. If your finances control you instead of you controlling them, you might need to find another way to end your struggle.

Bankruptcy as a Negotiating Tool for Taxi Owners

You really want to continue driving but you are having trouble making the note payments.  If you own a house with your wife in New York, and have less than $330,000 in equity above the mortgage, bankruptcy might be an option. Educate yourself about bankruptcy.  Then call to develop a customized strategy.

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