Jeffrey M. Rosenblum, P.C.
A Fresh Start

July 2014 Archives

Debt stats New York residents should know

According to a study released on July 29 by the Urban Institute, 35 percent of Americans have debt that has gone to collection. The study reportedly looked at 7 million credit profiles and found that a large number of those in debt lived in southern states such as Georgia, Kentucky and Alabama. For an account to go into collections, it has to be 180 days or more past due.

Small unpaid bills can hurt New York residents

According to Equifax, there are more than 200,000 accounts in collections for an outstanding debt of less than $100. Moreover, these little debts often go overlooked until it is time to purchase a car or apply for a mortgage. In many cases, these balances aren't taken care of because the person who owes the money doesn't even know about the debt.

When is bankruptcy worth it for New York residents?

Those who are seeking debt relief may seek protection in bankruptcy court. The two most common forms of bankruptcy are Chapter 7 and Chapter 13, and Chapter 13 bankruptcy is often sought by those who want to protect assets from liquidation or other creditor actions. When a debtor applies for Chapter 13 bankruptcy, that person is entering into a debt reorganization plan that takes as many as five years to complete.

Crumbs cupcake chain stores cease operations

The New York-based cupcake chain store, Crumbs, has been forced to shut down all of its stores due to dwindling sales. The company plans to file for Chapter 7 bankruptcy while liquidating all of its assets. In a public statement, a spokesperson stated that the company would be ceasing all operations and attending to the dislocation of employees. According to reports from last year, Crumbs stores employed 655 part-time workers and 165 full-time workers.

House and Senate attempting to reauthorize education act

Many students in New York and throughout the country are struggling to find jobs to pay off their mounting student debt. While other types of debt may be dischargeable by filing for bankruptcy, private student loans can rarely be discharged thanks to a bankruptcy reform package that became law in 2005. Democrats are trying to reauthorize the Higher Education Act and help students who have existing college debt, but the battle has been difficult.

New 1023-EZ Form Makes Applying for 501(c)(3) Tax-Exempt Status Easier

New 1023-EZ Form Makes Applying for 501(c)(3) Tax-Exempt Status Easier; Most Charities Qualify WASHINGTON -- The Internal Revenue Service today introduced a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.