Blog Posts

SBA Loan Collection and Bankruptcy Options

May 31, 2024

Many businesses faced trying times following the COVID-19 pandemic, several of which sought financial help through the COVID loan program implemented by the U.S. Small Business Administration (SBA). The COVID-19 Economic Injury Disaster Loan (EIDL) was implemented to support business owners and their employees during the pandemic. This program provided financing to nearly four million small businesses and nonprofits. The loans carry a 30-year-term and a fixed interest rate of 3.75% for small businesses and 2.75% for nonprofits. Because many businesses have struggled to repay loans obtained through the SBA, the agency is now ramping up collection of over a million delinquent loans. According to the SBA’s website, all COVID EIDL borrowers must repay their loans. These loans may become quite burdensome in the future, therefore it’s crucial that businesses start evaluating their options now. Recently, the SBA began referring as much as $20 billion in delinquent COVID loans to the Treasury Department for collection. The Treasury Department has broad power to collect money for the SBA which includes wage garnishment, social security benefit garnishment, and withholding of federal tax refunds. Small businesses and nonprofits who are saddled with EIDL loans would be prudent to explore their options now before…

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“Top Lawyers”

April 10, 2024

The results are in once again for “Top Lawyers,” recognizing those within the legal profession whose hard work and dedication continues to stand out. “Top Lawyers” are recognized by the Delaware County Daily Times, where readers and peers cast their votes through an online voting ballot, selecting those lawyers who they believe excel in their profession. MMD&C is thrilled to announce its amazing attorneys who have been recognized as “Top Lawyers” this year, and the firm remains proud of the outstanding work and determination these attorneys provide to their clients Voted “Top Lawyer” in Commercial Litigation, Real Estate and Zoning & Land Use, Thomas A. Musi, Jr., Esquire, celebrates another successful year. For years, Mr. Musi has continued to utilize his vast courtroom experience in both minor and complex litigation to best serve the interests of his clients. Litigation in these areas generally involves the use of written contracts or agreements, hence why Mr. Musi endeavors to deliver the attention to detail required to understand all aspects of the litigation and present clients with clean closings to their cases. Hard work and dedication led Richard C. Daubenberger, Esquire, to another year of being named “Top Lawyer” in Criminal Law. Concentrating…

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Protecting Your Purchase of Real Estate Through Title Insurance

February 21, 2024

There are many aspects that come with buying a home, one of the most important being its title. When you obtain the title to a property, you officially become the legal owner of that property. The title of a home provides us with important information such as who owns the home and who may have a claim to that piece of property. Obtaining title is not always a simple process and problems can arise even after the property has been purchased. Therefore, it’s important to keep yourself protected through title insurance. Title insurance is a requirement for homes bought in Pennsylvania that are in any way financed. It differs from other types of insurance in that it focuses on the idea of risk prevention, rather than risk assumption. Title insurance policies are designed to protect home buyers and mortgage lenders from damages or financial losses arising from issues or defects with the property’s title after purchase. Such policies will shield the insured party from any covered losses as well as any legal fees that may arise in an effort to resolve any disputes. Having title insurance will allow the buyer to ensure that they are getting title to the property…

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MMD&C Wins Criminal Case: Nervousness Is Not Enough

January 15, 2024

MMD&C recently won a suppression case before the Delaware Court of Common Pleas, successfully arguing that a police officer may not continue to investigate a motorist outside the scope of the traffic stop, based on the nervousness of the driver. Under the law, there are three types of police encounters. (1) a mere encounter, (2) an investigatory detention, and (3) an arrest. A Mere Encounter occurs when an officer stops to talk to an individual. For example, an officer asking a motorist with a flat tire if they need any assistance, is a mere encounter. This is a mere encounter, and the motorist is free to walk away at any time. Investigative detentions occur when an individual is not under arrest for a crime but is not free to leave. To escalate a mere encounter to an investigatory detention, also known as a Terry Stop, an officer must have reasonable suspicion. Reasonable suspicion requires specific and articulable facts that would lead an officer to believe that criminal activity is afoot. An example of reasonable suspicion would be if an individual, known to the police to have a criminal record, in a high crime area walking around in a parking lot…

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Eliminating Personal Income Taxes Through Bankruptcy

November 15, 2023

Many Americans have faced the grim reality of owing unpaid income taxes to the Internal Revenue Service (IRS).  For some, these taxes are large and one unpaid year can lead to another until the taxpayer owes several years of income taxes.  The taxpayer can be stupefied by both the amount and the possibility that the tax bills may never go away. But….is that true? Not exactly. A taxpayer may use the bankruptcy process to eliminate certain kinds of income debts, either partially, or in full. Dischargeable Taxes in Bankruptcy The Bankruptcy Code does not have a list of what taxes are dischargeable; it only says what is not dischargeable.  First, figure out what is not dischargeable – meaning you cannot eliminate them through bankruptcy. Anything outside of what is not dischargeable is– dischargeable.  If the pre-petition tax is dischargeable, it follows that any related penalties and interest are also dischargeable. Examples of non-dischargeable taxes: The Third Circuit, in In re Giacchi 856 F.3d 244 (3rd Cir. 2017) held that the late filed 1040 did not constitute filed returns that could otherwise be dischargeable if they otherwise complied with Section 507. The Third Circuit focused on the language of § 523(a)(1)(B),…

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