Let's Talk with Leaha & Rhonda

Unknown Speaker 0:00
The following is a paid program sponsored by Crawford management group and smart time consultants. Please be advised that the voices and opinions you may hear do not necessarily represent the views of K u and v Las Vegas, the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.

Unknown Speaker 0:25
Hi, this is Leah Crawford. And I'm Rhonda Nolan. Welcome to the let's talk with Leann Rhonda show. We're here for you and we're ready to go. Let's do it. Good morning in Las Vegas. Yes, it is Saturday, October 17 2020. We Wow. Today is the first day of early voting. We got our ballots in the mail. Guys, this election is crucial. Your voice your voice, your voice is very important. If you can go to those early voting sites because you can vote anywhere in the valley. At the early voting site. You don't have to go in your neighborhood. So if you're riding by and you see the voting site open, just stop in vote. I mean, they ask for your name, your address, and this vote, their ballot, drop offs, a whole bunch of stuff going on a lot of activities today. Your voice is important. This is a crucial, crucial election, but not about that we are let's talk with Leon Rhonda. My name is Leah Crawford. I am your host for today Miss Wanda Nolan, Miss you Rhonda miss you Rhonda mushy Rhonda is not here with me. But we thought about something different something strategic. So I got another co host today. Hi, Cory. Hi, Cory. Are you? Hi, I'm amazing. Amazing. So, Attorney Corey Beck has a law practice downtown Las Vegas. And today, we thought it was very important to talk about bankruptcy. The reason why we wanted to talk about bankruptcy because it's our understanding that the moratorium on mortgages and evictions was lifted this week. So there's a lot of activity that's about to go on in our valley. And we wanted to educate you on bankruptcy. So I'm gonna have Cory first introduce himself and then tell us a little bit about to Cory.

Unknown Speaker 2:23
Yes, my name is Corey Beck. And I've been practicing about 24 years. And I'm located downtown in Las Vegas. Yes, downtown

Unknown Speaker 2:31
Las Vegas. And I can say we are neighbors. So I am at 431 South Sixth Street. He is at 425 South Sixth Street. So we have this power corner on a corner of six o'clock. Six o'clock? Yes, we do. Yes, we do. And we've been down Well, we've been down here for some years, but at least about eight years. Correct. We've been down nearly eight years together. And let's let's talk about bankruptcy because I want to I want to educate our listeners number one on a different types of bankruptcy because people talk about bankruptcy I want to follow I want to file what are my individual? I want to file bankruptcy. What are my options?

Unknown Speaker 3:05
Okay, so the simplest bankruptcy and the most common is a chapter seven. And chapter seven gets rid of unsecured debt. unsecured debt can be thought of as medical bills, credit card, personal loans. Payday loans are also unsecured. And typically somebody files chapter seven, when they can't pay the debt and their income doesn't allow, either, you know, they have just a basic job or they don't have extra money leftover. That that's that's the type of bankruptcy that, you know, we talked about. What brings it to a head a lot of times if someone's has a lawsuit, or they're aware of they're just over their head, they have too much debt for the money they have coming in, which is somewhat common now because of what's happened in the valley, especially with chronic

Unknown Speaker 4:00
Coronavirus. Okay, so chapter seven. So chapter seven is one type, what's another type of an individual?

Unknown Speaker 4:05
So another common one, it's important it's called a chapter 13. And chapter 13 allows a person or a married couple to reorganize. Most common classical use of a chapter 13 is to catch up on a house. So you know if it's in foreclosure or you have a concern the house could be in foreclosure or going to foreclosure to foreclosure. Correct. Okay, you can get up to five years to catch it up. More recently, they have a mortgage program in the chapter 13.

Unknown Speaker 4:41
Okay, so mortgage problems. Well, let's not let's talk about that. And I want to I'm in real quick for our listeners. Once again, my name is Leah Crawford. I am talking to Attorney Corey Beck. We are talking about bankruptcy. And the reason why we thought that this was important because of what's going on in our economy. People living in homes and and you want to stay in your house. So we want to throw some different options out there for you, so that you can remain in your home. There are a lot of our unemployment rate probably is at the highest here in the Valley. And we wanted you to have the information so that you know what you can do. So you don't have to stress stay calm. And there are options out there for you. So we talk so we're talking about first thing we talked about the chapter seven totally reorganize chapter 13. I'm sorry, to get rid of the unsecured debt. Chapter 13 is when you reorganize. And this is for PERS for individuals. If I come into your office, say and I do you tell me what I need to file? Do you recommend that for me? Or do I come in think I think I know everything is you know, some of us things that we're attorneys and we haven't been in law school, not

Unknown Speaker 5:48
one. So I helped make the decision. Okay, someone comes in, and they could say, I'm behind on my house, and then I'll find out well, how much how many months is it? You know, what's the total? And then the other thing I look to, is it a short term problem? Or is it's the same problem ongoing, like someone was unemployed or underemployed. And now, you know, they have the money to pay their house, then we could discuss doing a chapter 13. Okay. The modification program, they call it mmm, mortgage modification mediation program.

Unknown Speaker 6:29
Okay. Mmm, mortgage modification mediation program. Yeah. Got

Unknown Speaker 6:34
it. Go ahead. So basically, somebody files a chapter 13. And then I get a court order to pop the opt in, I get them in that program.

Unknown Speaker 6:45
Got it. It's only about court order. Yes, to get into this program. Okay. So it's not like the old back before when you could just call the mortgage company. This is something that's court ordered. So basically, the mortgage companies, this is something that they would this is a plan that they would have to follow because it's court order,

Unknown Speaker 7:02
correct. Okay. And it's, it's pretty specific, you know, they create a portal where a bank's attorney requests certain information, turned documents, correct document, and then we get them the documents. And there's a timeline, you know, they have to review it. And the idea is to get a first usually a temporary modification or the trial mod, okay. And then, you know, someone makes three payments, then they're gonna get approved for the loan modification or a permanent loan modification, okay. And then I get a court order approving a loan modification. And then people are in good stead with their house. Got

Unknown Speaker 7:49
it. So and that's the next thing we want to we want to put the resources out there. If again, my name is Lea Crawford, I am talking to Attorney Corey Beck and we are going to delve deep into bankruptcy. Because we were very aware of what Coronavirus has done for our economy, and the people being unemployed or underemployed. You might have found lost your job and found something that is not as common not, you're not gonna You're not making the money that you were making pre COVID-19. And you still have the expenses free COVID-19. And you haven't paid your mortgage because there was a moratorium. And now the moratorium is lifted. And now you have this balloon payment that possibly is due. And we want to offer the different the different options. If you want more information. Attorney Corey Beck can be reached at 702-678-1999. And as you eat, look, I'm telling my eight because I'm a party like his 9099 rivalry. Yeah, so it's 702-678-1999. Now when we talk about, I want to back it up again. So I come into your office, and I want to go over this again because I think this is very important. coming to your office, I'm behind in my desk I am I am under employed. And we sit down we have an initial consultation I guess. I want to keep my house I want to keep my house. I do the mmm the mortgage modification mediation program from start to finish, how long does does this take? Is the bankruptcy court backed up now can can we get in and make some decisions? What's what's the process? What's it like?

Unknown Speaker 9:31
Sure. Usually we get an answer within a year. Okay to give you some idea, you file bankruptcy, then you go to what they call a meeting of creditors is which is the standard anytime anybody files bankruptcy, there's what they call a section 341 meeting. And then after that you're allowed to opt in to the mmm program like we discussed. And once we're in that program, we some It documentation, and then hopefully we get the answer that we want that you can get approved for a loan modification. So

Unknown Speaker 10:07
let me ask you this limit. I'm just happy right there. I am behind in my house. I haven't paid my mortgage since March, April. I haven't paid it. Nope, nope, nope. Still living in the house, though. And moratorium is now lifted. Now I get this nasty letter from Sid bank that holds my mortgage. I am underemployed. I don't have the money to pay them. I come into your office, you're telling me it takes another year, what's going to stop the mortgage company because if it takes a year for me to get approved to get into this modification program, already had five months I didn't pay. Now you're gonna add another 12. So that's 17 months.

Unknown Speaker 10:43
So soon as somebody files, there's an automatic stay, the bank can't do anything. Automatic Stay automatic protection from bankruptcy,

Unknown Speaker 10:52
automatic state. So you get the automatic state. So when I say when I file, I get the automatic state. So how long I come into your office? Because I'm gonna hear this on Saturday. And I'm calling you on Monday, because I know the moratorium is lifted in the lettuce comment, right? I call your office on Monday, and I'm just trying to give you a realistic timeline. Call your office on Monday, and I come into your office, I get an appointment by Friday. By the end of the month, I can get a say

Unknown Speaker 11:20
yes. The answer is yes. Yes. Okay. Um, bankruptcy cases can be filed very quickly. There was a credit counseling requirement, but that's just more of a formality. You know, I tell the client, which where to get online or who to call, and then you get a certificate of credit counseling. And then the main thing I need is who the mortgage is, you know, the mortgage statement, right. And we could file it, it could be filed literally, definitely by the end of the month. But oftentimes I deal with emergencies, you know, people in foreclosure, yeah, so we could file a case, you know, within a day or two. Got it. Okay,

Unknown Speaker 11:58
got it. Again, let me let's talk about that. If you want more information, and you believe that this is an option for you. Again, you can contact court attorney Corey Beck's office at 702-678-1999. Again, 702-678-1999. My name is Leah Crawford, I am your host for the let's talk with Leah Rhonda show, we thought it was very, very important to bring this information to you because bankruptcy right now could be an option for some people. Because for my answer, I think we were talking about this the other day 68% of the people have not paid their mortgages.

Unknown Speaker 12:38
My understanding, it's a very high percentage. Okay, like 60. Okay,

Unknown Speaker 12:41
so don't call me, all I said was Hi, there's more than 50. So more than 50. So for every home owner, one out of two, at least one out of two, has not paid their mortgage. In the past couple of months.

Unknown Speaker 12:55
I just wanted to add that, under the basic chapter 13 People can get up to five years to catch up on what the behind what they're behind. Okay. So you know, if it's whatever the number is, and you're going to be getting, hopefully steady work, you get yours 60 months to catch up on the amount you're behind.

Unknown Speaker 13:16
So what I can tell you is is that from personal experience, do not go into a courtroom representing yourself because then you have a full fourth line. I can say that and I'm a firm believer, when you deal with our court system. Again, I was I was I was my own attorney and I was a full it because I was my client. When you are dealing with our court system, you want to deal with the people that have gone to school. They have they mastered this, they understand this, they understand the lingo because legalese is something totally different. Because I'm thinking what a judge, you hear me saying, Okay, so that's not how that was supposed to go. Because the judge hurt, you know, they, they speak in a totally different language, and you want somebody that can represent your interests, especially when you're dealing in these courts in these courts. Again, I'm covering up that election, though, because the election is in the early voting. The ballot is a lot of judges on this ballot. I mean, I think I want to say 70% of the balance judges 70, easy 70% 70%. But when you're dealing with bankruptcy, you want to have someone that has that they understand your story that you can tell them what's going on with you and guys, be honest with the attorney, it's an attorney to true. So if you haven't paid your mortgage, we have a whole bunch of other bills. If bankruptcy is the option for you might not be the only option because you might you might you might have the money under your bed to pay it I don't know. But if it's one of the options for you come in, talk to an attorney, get the get good information, so that you're not listening to what this person said what that person said. You are getting the information from the professional that has you know, that has done the work and has dealt with many cases. And from his experience. We talked about that early Do you have about 24 years experience? That's right. Okay, so that's quarter of a century. Yes, that's quarter of a century. Okay, that's quarter of a century experience in dealing in bankruptcy. So he, he, not only does he have experience, you know, he's been doing the work and you're tapping into his knowledge, his his resources, and being able to help you reorganize, because again, I believe this too shall pass. This too shall pass, but it's all in how we handle it. And no, we were talking about people stay calm, stay calm, you know, gotta stay calm. And we have to because a calm mind, calm body, you can think. And you gotta be able to think, think through this. So we got the chapter seven, chapter 13. Now, I'm not an attorney, but I heard about a chapter level who does the Chapter 11

Unknown Speaker 15:48
Chapter elevens are for people that have multiple properties, you know, individual chapter 11, is when people own houses, plural, or if it's a business that needs to reorganize once in a while, you know, if you have a business, that if you had time, and then if you could get your infusion of money, chapter 11, can help got it. Okay, it's got to be for at least kind of a big, small business or medium business to do it. Okay. Um, I can talk about just small business owners right now. But

Unknown Speaker 16:28
we'll get let's talk about them. Because COVID-19 is hitting a lot of them, a lot of them are not opening back up or not opening back up, what is the option because I was in business, have been in business. After this, I am not opening up. But I know for a lot of small business owners, they were able to get the economic injury disaster loans and the PPP loans, and which listen to our show at the end of the month, because hopefully, we will have an update on the payroll Protection Program Rondon are going to dig in and really talk about that. But they got these loans. So they kind of got a little way to hedge. I mean, if they if they were able to get the loans because you have to have after while PPP was wasn't as hard to get. Idol was hard, because you had to have a certain credit score and certain things in order to get it. What I'm in I'm, I'm said business owner, I had debt now that I can't pay because my doors are not open. What does a chapter 11 do for me?

Unknown Speaker 17:28
So the people that don't have their doors open or claiming because my doors are open? I know, I know. But businesses that are closed and aren't going to be reopened, that they're going to possibly think about filing the chapter seven, okay, to get rid of the debt. Okay, any, especially any debt where someone's personally guaranteed it? You know, when he like leases, you know, if you've guaranteed your lease, or you have lines of credit, or you have other deaths, it's something you definitely look at, you have to look at your situation now, you know, of what's coming in, but also project in the next few weeks or months, what's really going to happen, right? Because some businesses, anything, whether it's retail, or even some service businesses, you've got to figure out, can you adapt? Are you going to be, you know, what's your cash flow going to be? What should your planning be? In some businesses may need to file some type of, you know, for bankruptcy relief. Got it. So those are some of the things that I look at, you know, I definitely have people give me whatever, you know, profit and loss they have. And then if there's a projection of how things may change, and you look at that in relation to the debt that you have

Unknown Speaker 18:44
got it. So you help small business owners as well, with me in thinking through this, do you recommend because what if they're a small business owner, I don't have an account, I have no idea what my profit or losses, what do you do? What do you do for them? Do you recommend people for them to go talk to do you employ them to go find a bookkeeper or an accountant?

Unknown Speaker 19:02
To do? Okay, I do that would be one of the first steps, but I would talk with them what they have. Okay, now, hopefully, you know, when I say what's your breakeven point, you know, the basically asking of the business or the person, you know, what, how much money do you have to make to pay your basic overhead? And, you know, if, if that business is not doing that, then that's a pretty big warning sign that we discussed. Right? Right.

Unknown Speaker 19:27
Breakeven point that's a whole today that's a whole different portfolio calculation that goes with break even point but can be very simple. If you know and let's talk about your break even point just a side note real quick because I am an accountant by trade. I'm an accountant by trade. So we break even point guys, all we're saying is, you know how much your rent, you know how much your utilities are, you know, how much you pay your employees, and quietly you know how much you need to bring home in order to operate your house. How much money do you need to make just a break even? And what is that number? because my famous answer my clients is, what's your number? What's your number? And they're like, Well, my number is 702. No, that's not what I mean, what is your number because you need to know what that number is. Because if you don't hit that number, that's why you're, you're, you're floundering in business. And we want you to be successful. And there's certain financial things that you need to do to be successful. So talking about so as a business, though, I can file Chapter Seven and chapter 11.

Unknown Speaker 20:27
Most cases are going to be chapter seven, for people or business, okay? Once in a while when it's on a business on a bigger scope, okay, I know you've got multiple employees and you have decent amount of money coming in and out, then you could reorganize, try to save the whole business in a Chapter 11. Okay, small businesses where it's kind of mom and pop and the person is the business, they could do a 13. And then, you know, they pay, if the debts are personal, they, they pay with the can over time, and they keep up reading their business.

Unknown Speaker 21:05
Got it now. But I want to bring some because we talked about this earlier, too, because I don't want people to get confused payroll taxes, and my bankruptcy. And I have to say, I haven't paid my payroll taxes in the past four or five years, for whatever reason, does the payroll tax liability because we talked about personal income tax, and personal income tax can be can be discharged in your bankruptcy. But can payroll taxes, that's your 941 taxes, can they be discharged?

Unknown Speaker 21:36
So the simple rule that that's good news for people, if it's personal tax, and the taxes are filed, if it's older than three years, they can you can get rid of them, you can discharge it, what the specific question you ask payroll taxes, it's trust on liability, and it's not discharged, wiped out. At times a bankruptcy could pay it, you can reorganize, but you can't discharge 941 are payroll taxes,

Unknown Speaker 22:08
payroll taxes, I want you to hear that. So for us that have employees, we have a thing called trust fund, and what the trust fund is. So just just just to give a basic definition of it's also, educating our listeners, the trust fund is the federal income taxes and the FICA income taxes that you withhold from someone's paycheck. Because the idea is, you are trusted to take that money and remit that money to the IRS. And at some point, you didn't do that. And so those those taxes have to be, because and I always wondered if I file bankruptcy? Can I get rid of those two? Because that that can be a huge liability and an ex? No, it adds up? Because I know, when you talk about payroll, people say, you know, well, I make $20 an hour, um, and I'm an employer. So when someone tells me that they want to make $20 an hour, I think I have to pay them about $25 an hour because I have to pay my employer portion that their taxes my workers comp, if I'm, if I'm going to do any benefits or anything like that, that takes us up even higher, that gets to about maybe 30 40% of whatever I'm paying them in doing my budget to talk about my break even point but that's a whole nother show. And we'll talk about that later. Because that's, that's Financial Management and really, really delving into being a successful business owner, and what does it take in order for you to do so? So, again, Cory Booker, attorney, Corey Beck, his office address is four to five South Sixth Street, the telephone number, there is 702-678-1999. My name is Leah Crawford. I am your host today for the show. Rhonda. I miss you, I miss you. I miss you. Because I know you would have had this conversation going in a whole bunch of different directions. But we went over chapter seven that is get rid of the debt. Chapter 13 reorganizing the debt. Chapter 11. Another type of reorganization of debt for businesses and individuals, correct?

Unknown Speaker 24:06
Yes, individuals with with the houses houses, larger stuff, lots of stuff. And then least medium sized business.

Unknown Speaker 24:15
Right? And are you and our listeners got stuff? Y'all got stuff? Y'all got stuff? Y'all got houses, you know, your rental houses, your rental properties, you're doing this, you're doing that you're doing the other? So I want I want to say is there are options for you, especially during this time when you had to pay your mortgage, and the person that was living in the house wasn't paying their rent? You know, and it's a lot it was a lot of that going on, you know, the moratorium is lifted. I'm sure the courts have want to be backed up with people just trying to get some relief for this because I know for I don't know if the mortgage I don't know if the forbearance was for rental properties that no for your primary residence. You didn't have to pay your mortgage. But if you had a rental property I don't I'm not sure I don't remember because I didn't read the Cares Act. And I followed it. I didn't read the cares at all. I'm getting ready to read the relief program for PPP so that I can when they're done, and not although this might happen, this may happen I need to find out what the relief is going to be for clients and I should have better information on that by our next show, so that we can really delve in and see if we can get some of these let's help people to get these loans forgiven because PDP is supposed to be part of it is supposed to be able to be forgiven, and we want to help our listeners to ensure that they can get those PPP loans forgiven. I'm hoping that they even do idle too, but that's a whole different that's a whole different ballgame. Again, my name is Lea Crawford. I am here with Attorney Corey bad Corey, is there anything else you want to add anything else you want to talk about?

Unknown Speaker 25:41
No, I just want to talk a little bit in general that the people you know the warning signs are if you can't pay your bills, if the income is down, and you know the concern is that you're over your head that that's the time to consider you know getting consultation about bankruptcy,

Unknown Speaker 26:05
got it consultation about bankruptcy and bankruptcy is a real option. It's a real option. And if that is if that again, go to the professional go see a professional quarterback we're on a corner of sixth and Clark we are downtown Las Vegas. We have parking Do you allow your client support behind a building

Unknown Speaker 26:24
or two right next to me in the front and I have parking in the back as well in the parking area

Unknown Speaker 26:28
as well. And I also have parking and we have what we are we share a parking lot. So there's parking so you don't have to pay to park on the street. Again. If you you know you know your situation better than what we do. And you know if you can afford to pay your bills, you know what your situation is coming out of COVID and we do not know what's going to happen if bankruptcy is something that you're thinking thinking about. And I always say you know people say you know call your girlfriend no call and attorney, Collins attorney, talk to someone that is a professional that that they practice. They practice bankruptcy, they practice bankruptcy intimately involved in the court. I didn't know anything about the the mmm program, I didn't know that you could basically take five years to correct the debt. You know, and that's I mean that's good information. And if it is an option to you, I didn't know that you could get a stay on it so that you know if you had to. If you weren't, you know you have to pay you don't have the money to pay but you don't want to move. You don't want to move you do not want the foreclosure and there are some options out there. Again, my name is Leah Crawford. I am the host one of the hosts for the let's talk with Leah and Rhonda show. I am an accountant do we do IRS representation at our office like I said we have the power corner on six o'clock attorney doing bankruptcy here. IRS representation next door along with some business services. We also do doc prep so if you want to get the incorporations you want to start a new business do different things we do that prep in our office. But I want to say more importantly Las Vegas today. Get out go vote early voting has started the time the time the clock the clock The clock is ticking until the fifth Saturday of the month actor Oh Halloween we are we are on on Halloween, peace and blessings Las Vegas. I look forward to talking to you again on October 31. Bye

Unknown Speaker 28:42
You have been listening to a paid program sponsored by Crawford management group and smart time consultants. Please be advised that the voices and opinions you heard do not necessarily represent the views of K u and v Las Vegas, the University of Nevada Las Vegas or the Board of Regents of the Nevada System of Higher Education.

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