A Seller’s attorney undertakes to do many things in order to successfully close a real estate transaction.  After the contract is signed, the Buyer’s attorney will produce a title report for review and analysis by Seller’s attorney. There will invariably be objections to title that need to be cleared before closing.  Importantly, there may be unsatisfied judgments to clear.

     In most instances outstanding judgments will be resolved (i) by supplying the title company with an affidavit that the judgment debtor is not the selling party; (ii) by obtaining a Satisfaction of Judgment for previously satisfied debts for which a Satisfaction was never filed with the County Clerk; (iii) if the title company permits, by depositing 2x the face amount of the judgment in escrow pending clearance by Seller. In other instances the judgment will either be settled or paid in full with interest at the time of closing. But there is another way to dispose of judgments affecting title. 

Author: Andrew M. Thaler

I am often asked if bankruptcy can discharge an employer’s obligation to pay wages to an employee. The answer is – it depends. The bankruptcy code sets forth a list of certain debts that an individual cannot discharge. Drafters of the Bankruptcy Code decided that it would be against public policy to discharge certain debts (i) owed to financially vulnerable persons; (ii) owed to governmental entities; or (ii) that arise out of a debtor’s bad behavior. If a debt falls into one of those categories, there is a high likelihood that the debt may not be discharged in a chapter 7 bankruptcy.

Author: Andrew M. Thaler

Creditors owed money by a company that files chapter 11 bankruptcy might receive a questionnaire asking if they are willing to serve on a Creditors’ Committee and wonder what that means.
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A Creditors Committee is a group of creditors selected in chapter 11 reorganization cases to oversee the operations of the Debtor. The Committee serves as a “watchdog” over the debtor’s financial affairs. The Office of the United States Trustee (“UST”), a division of the Department of Justice, sends letters to selected unsecured creditors shortly after the filing of the case to see if they are interested in serving on the Committee. Claims held by fully secured creditors and “insiders” are not eligible to serve on the Committee.

Author: Andrew M. Thaler

A bankruptcy attorney’s goal is to help people with overwhelming debt obtain a financial “fresh start”. If the requirements necessary to file personal bankruptcy are met, most if not all debts can be discharged. Discharge means that the creditor is barred from seeking payment. Public policy dictates that some debts should not be discharged. Debts owed to vulnerable creditor classes and debts that arise from “bad” behavior will most likely not be discharged. For example, child support cannot be discharged. Claims based on fraud cannot be discharged. Intentional tort claims, criminal restitution debt, student loans, and certain types of taxes to name just a few, are also not capable of being discharged.

Author: Andrew M. Thaler

The American Dream is to own your home.   A home is where the heart is and most likely that person’s most cherished possession.  The prospect of losing a home to judgment creditors or a bank holding a mortgage can be a homeowner’s worst nightmare.

The good news is, in contrast with the $10,000 homestead exemption that existed 24 years ago, the New York State legislature has over time dramatically increased the “homestead exemption” available to homeowners that reside in their property.
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A homestead exemption is the amount of money protected from the reach of judgment creditors over and above consensual liens (such as mortgages and home equity loans) and statutory liens (generally tax liens) in an involuntary sale.  Prior to 1994 the New York homestead exemption was only $10,000. That was hardly enough money to purchase a new home or even pay rent for more than a few months.  In 1994 the homestead exemption was increased to $50,000.  Thereafter, the homestead exemption for persons living in NYC and the surrounding Metropolitan counties, was dramatically increased to $150,000 with adjustments to be made to that amount every three years.  The last adjustment was made in 2018. As of September 2018 the homestead exemption for Metropolitan New York counties is $170,825.  (Upstate counties have lower amounts).