The Tracy Law Group

10/13/2022

Congratulations to Jamie McFarlane who was recently selected as the Secretary/Treasurer for the King County Bar Association Bankruptcy Section!

09/02/2022

Nine Years ago yesterday, we took a leap of faith and opened The Tracy Law Group PLLC to continue our work assisting financially troubled companies and individuals. Thank you to the everyone who has been a part of the TTLG "Family", past and present!

06/08/2022

The House of Representatives (392-21) has passed S.3823, the “Bankruptcy Threshold Adjustment and Technical Corrections Act.” The Senate on April 7 had passed the legislation introduced by Sen. Charles Grassley (R-Iowa) to raise the debt limit back to $7.5 million for small businesses electing to file for bankruptcy under subchapter V of chapter 11. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the substitute also raises the debt limit for individual chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation. All provisions of the legislation will sunset two years after enactment. The legislation will now be sent to President Biden to be signed into law

07/27/2021

Congratulations to Todd Tracy for being named a 2021 Washington Super Lawyer in the Business Bankruptcy category and to Steven Reilly and Jamie McFarland for being named 2021 Washington Rising Stars in the Business Bankruptcy category!

05/26/2021

Steven Reilly and Todd Tracy recently confirmed a Chapter 11 plan of reorganization for a rural health clinic in Washington. By successfully reorganizing, the clinic's providers stayed employed and the long time patients of the clinic retained their health care.

05/26/2021

Congratulations to Jamie McFarlane who just successfully confirmed a Chapter 11 Subchapter V plan for an individual in business. Subchapter V is the new small business option designed to streamline the Chapter 11 process for small businesses.

05/12/2021

Moments ago, Governor Inslee signed ESSB 5408 immediately increasing the Washington state homestead exemption! This new legislation will help debtors and small business owners who may have been at risk of losing their residence due to the dire financial impacts of the pandemic.

04/20/2021

The Washington State legislature has enacted significant changes to the Washington homestead statute. The Engrossed Substitute Senate Bill 5408 becomes effective upon Governor Inslee’s expected signature which is expected on May 18, 2021.

In general, the law provides for increases in homestead exemptions based on “the county median sale price of a single-family home in the preceding year.” For King County, based upon the 2020 median value of a single family residence, a debtor can exempt up to $729,600 in a homestead property. Snohomish County - $549,400. Pierce County - $424,300. Skagit - $421,800. Whatcom - $444,400.
The legislation further addressed recent Court holdings including the Ninth Circuit holding in Wilson vs. Rigby dealing with post bankruptcy appreciation in the value of your home.

As lenders begin to press business owners for amounts owed due to the COVID-19 restrictions, the increase in the homestead will be very helpful. If you have questions regarding the new homestead legislation and how it might impact your debt issues, please feel free to give us a call.

02/26/2021

Senators Durbin and Grassley have introduced legislation to extend the bankruptcy related provisions of the CARES Act, including an extension of the higher limits for eligibility under the Small Business Reorganization Act (Subchapter V).

The Official U.S. Senate website of Dick Durbin

09/01/2020

Seven years ago today, The Tracy Law Group PLLC opened for the first time. I wanted to thank every member of the team, past and present, who has made this adventure so positive. I especially want to thank my two good friends and new partners Steven Reilly and Jamie McFarlane. We look forward to assisting our clients with intelligence, practicality, compassion and understanding for the next seven years and beyond!

03/27/2020

Assuming that the House of Representatives passes the Senate COVID-19 Stimulus package, there are several bankruptcy or creditor related provisions of note.

(1) Sect. 3513 of the legislative package provides temporary relief for federal student loan borrowers by requiring the Secretary of Education to defer student loan payments, principal, and interest for 6 months, through September 30, 2020, without penalty to the borrower for all federally owned loans. This provides relief for over 95 percent of student loan borrowers. Obviously, no one knows right now how this will work, but there is some temporary relief;

(2) The new Small Business Chapter 11 Subchapter V had a limit on the amount of debt that a person or entity could have and still be eligible for the streamlined provisions. The bill raises the debt limit from $2.7 million to $7.5 million, making many more small businesses eligible for this type of restructuring relief.