If you need a family attorney in Salt Lake City Utah, you’ve reached the right page. Often referred to as the “Crossroads of the West,” Salt Lake City, the capital of Utah and the state’s most populous city, has also become a hub for business. Appearing on list after list of top-performing cities in the US, Salt Lake City’s economy is remarkably stable, thanks to both its forward-thinking, business-friendly policies and homegrown capital investment. Additionally, its population has become increasingly diverse. Since 2010, migration from other countries has accounted for 41 percent of Utah’s inbound growth. Additionally, Utah ranks second in the nation in its citizens’ support for LGBTQ non-discrimination protections, according to a poll by the Public Religion Research Institute. Salt Lake City ranks among the top US states for business and personal income growth, family prosperity and quality of life. According to the most recent Hachman Index, Utah leads the nation in economic diversity and Forbes has listed Utah as the “top state for business” five times in the past ten years. The attorneys in Salt Lake City offer a broad mix of legal services to a wide range of clients, including individuals, public and private companies, and educational and charitable organizations. These attorneys have handled complex business and finance transactions, banking-related matters and commercial litigation, as well as intellectual property, bankruptcy, real estate, tax, estate planning, employment, family law, and immigration matters, among other areas. Salt Lake City-based lawyers have been recognized in Chambers USA: America’s Leading Lawyers for Business and Chambers High Net worth Guide, honored as “Lawyers of the Year” in The Best Lawyers in America, named to the Mountain States Super Lawyers list and included in Utah Business’s Legal Elite. Family LawJust about anyone can start a family on their own, but certain procedures affecting the responsibilities of family life must be pursued in court. While matters of the heart are very personal, the rights of same-sex couples to get married, laws regarding divorce, and the process of adopting a child are governed by state and federal laws. “Family law,” therefore, refers to rules, regulations, and court procedures involving the family unit. While some family law matters may be handled without counsel, processes such as divorce and child custody often require the skill and expertise of a skilled attorney. Much of our lives unfold within the family unit, often behind closed doors. And while our family lives are considered personal in many aspects, there is a whole body of law addressing certain laws and procedures affecting families, such as marriage, divorce, and even certain criminal statutes. What Does A Family Law Attorney Do?A family law attorney generally handles matters that involve the family court system, including family-related issues and domestic relationships. Some of the common practice areas family lawyers handle include: Divorce/h2>Marital property divisionPrenuptial agreementsChild custody casesChild supportParental rightsAlimony or spousal supportDomestic violenceRestraining orderEstate planningAdoptionGuardianshipJuvenile dependencyJuvenile delinquencyChild abuseFamily attorneys may work in many capacities, including as a private lawyer in a small family law firm, a family law lawyer in a big firm, for county or state government agencies, in nonprofit organizations, or as a state attorney. Attorneys act as advocates for their clients, which may include representing the interests of a minor child in child abuse or juvenile dependency hearings. Do Family Law Attorneys Handle Divorce?Yes. A large part of family law practice involves divorce. Divorce can be a difficult process, especially when the couple is in dispute over how to handle the separation. A contested divorce can get complicated when emotions are involved, often involving money problems or infidelity. Divorce is a major life-changing event and it can be difficult to navigate on your own. In general, a divorce attorney can only represent one spouse in a divorce. There is a conflict of interest in trying to represent both spouses. When you find a family law attorney, your attorney will act as an advocate for you and advise you in your best interests. In an uncontested divorce, a family law attorney can help their client prepare the divorce order, with all the issues settled between the couple, including division of property and child custody and visitation. In an uncontested divorce, there is nothing left for the court to decide and the court may issue the final divorce court order after making sure the couple has met all the statutory requirements to legally end the marriage. In a contested divorce, there may be a dispute over many issues, including property, alimony, and child custody. If the couple cannot settle these issues through negotiations or mediation, it may be left up to the family court judge to decide how to settle the disputes. Contested divorces can take longer and be more expensive for each spouse. Do You Need A Family Law Attorney?Yes, you do. Some family law issues can be handled without an attorney, including simple court filings like name changes. However, when there are important issues at stake, it may be best to find an experienced attorney for legal advice. A divorce may involve dividing up a lot of money, property, and assets. Lack of legal representation may expose you to losing out on what you deserve after a separation. The most important issue for many separating couples is visitation and child custody issues. If there are disputes in child custody, a family lawyer can help make sure your child will be safe and properly provided for. This includes granting custody with the custodial parent, working out a visitation schedule that is in the best interests of your child, and getting the financial support necessary to care for your child. Utah Child Custody LawsWhen a couple with children breaks up, the responsibility to care for the children must be shared by both parents. An important aspect is child custody or with whom the child will live with and what visitation with the other parent will be like. Another part of this responsibility is financial support, in the form of child support. Best Interest of the ChildUtah family courts, like those in most states, determine child custody matters using the “best interests of the child.” The factors considered by the judge include: Sometimes, a marriage or relationship ends badly. If children are involved, however, the former spouses must still communicate and cooperate to some degree, but child custody arrangements don’t always go according to plan. Custodial interference by a parent is one of the major problems that may arise after divorce or breakup, or in some non-divorce situations involving children. What Legal Remedies are Available if a Parent Abducts a Child?Sometimes in child custody disputes, feelings of anger or desperation lead a parent to run away with the children, in violation of a child custody order. Under both state and federal law, it is illegal to remove a child from his/her custodial parent or legal guardian. Under California’s penal code, for example, child abduction is considered a crime against the custodial parent. Interstate Child AbductionIn a situation of parental kidnapping – yes, a parent can be charged with kidnapping their own child – law enforcement is often the best remedy available. Parents are also free to hire their own private investigator. States have their own kidnapping laws, which may cover parental child abduction. In 2003, President George W. Bush signed the PROTECT Act into law, establishing the AMBER Alert system. Every state participates in the AMBER Alert system. It notifies law enforcement and the public when a child has been abducted. Legislatively, there are a number of federal laws that deter parental abduction of children. Before the Uniform Child Custody Jurisdiction Act (UCCJA) of 1968, parents could simply take their child to another state if they thought they had a better chance of getting custody in court. The UCCJA provides an interstate solution to remove that legal incentive for parental child abduction. In 1980, the Parental Kidnapping Prevention Act (28 U.S.C. § 1738A) was passed to resolve jurisdictional conflicts in child custody cases. The PKPA promotes cooperation between states to make it easier to secure the return of abducted children. PKPA is a federal law, so it trumps state law when there is a conflict between states. The Act tells state courts that they must enforce the child custody determination pending or already in place in the child’s home state/tribal court. The home state court has “preferred jurisdiction.” The child’s home state is where the child lived for at least 6 months before a custody action was filed. That state court retains jurisdiction of the child custody case as long as at least one parent or the child lives there. That court can order the return of the child to the custodial parent. If the child did not have a home state, a court in a state where the child and at least one parent have a significant connection can take jurisdiction. If a child is in danger or has been abandoned, the local court may take emergency jurisdiction. If a parent fleeing domestic violence has taken the children across state lines that would trigger emergency jurisdiction in the receiving state. If no court has jurisdiction, the nearest court can take jurisdiction as “the most appropriate forum.” The Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) has been adopted by 49 states. It ensures interstate enforceability of child custody orders. It resolved conflicts between the PKPA and the UCCJA. It added protection for domestic violence victims who fled to another state for safe haven. Parental Child Abduction: International DisputesThe International Parental Kidnapping Crime Act (IPKCA) made international kidnapping a criminal offense in 1993. A parent cannot remove or attempt to remove a child from the U.S. in order to obstruct another person’s custodial rights. The FBI investigates such cases. There are two legal remedies that apply to international child abduction cases. The International Child Abduction Remedies Act (ICARA) and the Hague Convention on the Civil Aspects of International Child Abduction. ICARA established procedures to implement the Hague Convention. The Hague Convention works to return the child to their state of residence if they have been wrongly removed. It doesn’t settle child custody disputes. It seeks to return the situation to the status quo before the child abduction occurred. If the parent had fled to a country that has not agreed to cooperate with the U.S. as part of an international treaty, a combination of legal and political pressure can be applied. A parent can petition a U.S. court to initiate judicial proceedings under the Convention for the return of their child. Outside of those countries, legal remedies vary greatly. The U.S. State Department’s Bureau of Consular Affairs can provide certain limited resources. Every case of child abduction case is a violation of a child custody order. The penalties that apply for a violation of a child custody order may also apply here. Penalties include large fines, jail time, loss of custody, or loss of visitation rights. Once your child is located and returned home, you’ll want to prevent a future recurrence. Parental child abduction is a very serious offense. It will damage the abducting parent’s standing in family law court. If you previously had joint custody, that parent could temporarily or permanently lose their custody rights. Of course, this will vary by state, judge, and family circumstances. Enforcing Child Custody OrdersIn Salt Lake City, Utah family law courts determine how much child support a non-custodial parent (a parent who doesn’t live with their minor child) is required to pay by using the state’s child support guidelines. These guidelines take into consideration both parents’ gross incomes and the number of children that they have together. The court will follow the child support guidelines unless there is substantial evidence to rebut the guidelines. In order to determine whether or not to deviate from the guidelines the court will consider: Imputed IncomeIn Salt Lake City, if a parent is unemployed or underemployed the court may impute an income on the parent in order to perform the child support calculations in the chart above. Imputed income is based on employment potential and probable earnings. This figure is calculated from employment opportunities, work history, occupation qualifications, and prevailing earnings for people of similar backgrounds in the community. If a parent doesn’t have recent work history, or if their occupation is unknown, then the court can impute income on the parent at the federal minimum wage for a 40-hour workweek. However, income can’t be imputed if any of the following conditions exist (and aren’t temporary in nature): Utah Child Abuse LawsCriminal statutes are in place to keep people safe. Utah’s child abuse laws are designed to protect children from harm by prohibiting the physical, emotional, and sexual abuse of children. These child abuse statutes assist in prosecuting child abusers and mandate certain third parties and professionals with access to children to report knowledge or suspicion of child abuse to the authorities. Utah’s Department of Child and Family Services also provides resources statewide to protect the welfare of children. All of us want to make sure children are safe from harm, but many of us may not realize just how prevalent child abuse is in the United States. There are over 3 million reports of child abuse each year, involving almost 6 million children, and between four and five children are killed by child abuse or neglect every day. If you suspect a child is being abused or neglected, there are state child abuse resources available that can help. Free Initial Consultation For Family LawIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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How Long Does Probate Take?Typically, a Petition The Court To Be Named As Legal Representative takes 1 to 3 Months. Probate is the process of transferring the ownership of assets, paying the debts, and finalizing the legal affairs of a deceased individual. Probate can take varying amounts of time depending on the complexity of the deceased’s assets. Although rare, some probate cases can continue indefinitely. No one can tell you exactly how long your case will take, but knowing the steps in the probate process and the general time frame for each can help you make an informed estimate. Average Time for Probate ProcessIn most instances, the deceased individual created a will and named an executor. The named executor will have to petition the court to be granted authority to act for the estate. Complications that could increase the length of time• There is no Will: If the deceased died without a will, the individual seeking to be legal representative simply needs to petition the court to become the administrator of the estate. In most instances, the process is essentially the same as when there is a will. • There is family controversy over the will: During the process of proving the will, any heirs (or interested parties) must affirm the validity of the will. A challenge to the will creates serious delays and requires costly legal actions. Notify Heirs And Debtors: 1-3 Months.After the court appoints you as legal representative of the estate, you are obligated to find the heirs (listed in the will) and debtors and notify them of their status. In most cases, modern technology has made notifying heirs and debtors relatively easy. A simple credit report of the deceased will list almost all debtors, and the court will ask you to advertise the estate in the local paper. Locating heirs may be more complicated, but some time spent on Google will likely help you find what you need. Change Legal Ownership Of Assets To Estate: 1-6 Months.Once you are the legal representative (either executor or administrator) of the estate, you must change ownership of all the assets the deceased had to the estate. Unfortunately, modern technology has actually made identifying assets more difficult. In previous decades, an executor could simply gather the mail to see what the deceased owned (bank accounts, investments etc.). Now many people get their statements online, which can create complications since you may not have the username/passwords to access the information or even know what accounts they have. A little digging into their credit report, tax returns (interest, dividends, and stock sales will be listed and show where assets are held), and checking email for account statements will begin to point you in the right direction. If you can’t find password information for a particular account that you know exists, contacting the institution and providing the official letters from the court will help you get into the accounts. Pay estate expenses: 1-9 months.Depending on the complexity of the estate, paying estate expenses can be quick or lengthy. Once you have a reasonable idea of the likely expenses (funeral, taxes, debt), you should begin to pay out expenses. Some, like the funeral expenses, may have already been paid, in which case you can reimburse the family member who paid it. Keep in mind that the court will want to see proof of certain expenses (namely, the funeral), so maintaining accurate records is critical. Also remember that taxes are the most important expenses to pay. If there are unpaid tax (federal and state), the executor or administrator may be held personally responsible for them. Notify The Court Of All Actions And Close The Estate: 3-24 Months.Depending on the complexity of the estate, you will be able to complete all notifications within a year. However, most courts allow you a two year period before you are required to provide either a final or status report. Factors that Slows Down the Probate ProcessSome common issues that complicate the probate process include: • There Is No Will: If a deceased loved one did not leave a will, the court will be much more involved in the process. • Contesting the Will: Even if there is a will, its validity may be contested on a number of grounds. It may be contended that the will was not drafted properly. It may also be argued that one of the beneficiaries had undue influence over the deceased at the time the will was drafted or amended, or that the deceased did not write the will with full control of their mental faculties. • Disagreements among Beneficiaries Disagreements among beneficiaries don’t need to involve contests over the will. If multiple beneficiaries hire their own lawyers to oversee the probate process, disputes may arise that cause the process to drag. • Settling Many Debts – If a deceased loved one had many outstanding debts or tax bills, the process will not end until these matters are resolved. • Complicated Assets – If there are family businesses and complicated assets and interests that have to be divided, it can take more time to determine which beneficiary receives what. Most Commonly Required DocumentsThese documents are those that will likely be required by the probate court or by asset holders, such as banks or the department of motor vehicles, for actual administration of the state. • Last will and testament, including any codicils. This must be a signed, original version. If you cannot find the original will and have a copy of it, courts will allow you to submit a copy when accompanied by several additional forms. (If you cannot locate a will or do not have a copy, you will have to proceed as if there is no will. The state’s intestate laws (no will inheritance law) will determine priority of administration and inheritance.) • Revocable living trust documents, including any amendments. A copy is generally fine. • Death certificates. You will likely need multiple original copies of the death certificate to get necessary information from other sources. • Life insurance policies • Beneficiary designations. These are most commonly included with life insurance policies, retirement accounts, and payable on death or transfer on death accounts. • Prenuptial or postnuptial agreements • Loan agreements • Lease agreements • Real estate deeds • Vehicle titles. Original titles are required to transfer legal title. • Stock and bond certificates. Original certificates are generally required. • Federal and state income tax returns for the past three years • Federal and state gift tax returns • Petition for Probate Administration. You can call Ascent Law for help with this. Helpful Documents To Have On HandThese documents will provide you the relevant information you’ll need to carry out estate administration. • Recent account statements, including bank accounts, retirement accounts, and brokerage accounts • List of eligible heirs and contact information • List of known assets • List of known debts • Appraisal valuations for high-value personal belongings • Existing bills, such as utility bills, cell phone bills, credit card bills, mortgages and personal loan bills, property tax bills, medical bills, funeral bill Business DocumentsThese documents will be necessary only if the deceased owned a closely-held business. • Corporate LLC or partnership documents • Account statements • Contracts • Business licenses • Income tax returns • Titles for vehicles Probate Is Needed Whether or Not If There Was A WillIf there was no will, probate will be needed. Probate helps regulate the beneficiaries and allocate the decedent’s assets and ‘title’ to property. A Valid Will ExistsTo follow proper distribution of the assets of an estate (without some smaller estates) to the named beneficiaries, a valid will should go through probate. If Any Problems with An Existing WillThere are some of these issues may include the following: • there are mistakes in the ‘will,’ or it was deceitfully executed; • the submitted will not be the final version to consider; • Or any other obstacles to the integrity of the Will; • the will then drafted when the decedent was not of sound mind (Eligibility element). When Estate’s Assets Are Solely In The Deceased’s NameIn most related cases, an estate must go through probate to transfer the property into the name(s) of any beneficiaries if the deceased owned property with no other names involved. If There Are No Beneficiaries/Have Predeceased The DecedentThis situation put on to any retirement or savings accounts that would payout to beneficiaries such as IRA or life insurance policies. The accounts will need to probate if beneficiaries are not named or are all predeceased to transfer funds or titles into the beneficiary’s names. Probate of Will must use transfer his or her share of the property into the names of the appropriate beneficiaries and remove the decedent’s name in the case that a decedent owned property with others. The probate of will process protects an estate from challenges to the specified beneficiaries of the inheritance and clarifies a will. However, using probate sometimes is a necessary method for a will to make it useful. Fees ImpositionAs a fee to issue probate of Will, the court may impose a percentage of assets. Probate of Will can then grant only to the executor appointed under a will. Even if the executor is not available to administer the estate, the application must make for designating the same by the court before applying for probate of Will. What do you mean by Application of Probate of will?The Probate of will is granted to executor or executors by the Utah Probate Court in succession, with a copy of the will attached if more than one is named. After the seven days of the death of the Testator, One can also apply for Probate of will. Benefits of Probate of a Will• The Probate of will procedure is beneficial to those who want to broadcast the distribution of the will. • It supports to protect small estates. • It can be utilized as a tool to challenge a creditor’s claim in a court of law if you think that it has falsely made a claim. • It provides direction to cases where there is no will in place so that the right beneficiary acquires the testator’s inheritance. • Probate offers the court the chance to handle a disputed will. • Within 90 days, the Probate contributes you the chance to close out all creditors to the estate. • Probate of a Will founds the authenticity of a will after the death of the testator and displays the executors and legal heirs to the contented of the will. Procedure For Getting A Probate Will1. Preparation For Application: The first step is to prepare an application for the petition duly signed and verified by applicant to the District Judge. It should be in the format prescribed under the ‘Utah Probate Code’. Moreover, this should be done after the testator’s death, in the next seven days. 2. Submit Application And Documents: The application needs to be sent to the high court, which needs to be prepared by lawyers. The High Court should be under the jurisdiction of the property. However, a lower court may accept the application in some cases. Along with the application, certain documents are needed to be submitted while applying for Probate of will. It would be best if you showed that the will is genuine and the documents to prove too. You will also need to submit a document to prove that the testator’s will was executed as per his/her own free will and show the testator’s death certificate. 3. Advertisement: It verifies all ‘details and issues’ an invitation letter to the nearest kin of the deceased once the court receives the application to claim the Probate. In any case, a letter is also stuck at prominent places to invite objections and, for public view. The Probate is issued if there is no objection from the kin or the public after 120 days. Authenticating the Last WillAs soon as it is reasonably possible, anyone who has the deceased’s will – should file it with the probate court, according to most states that have laws in place. An application or petition to sweep the Probate of the estate is generally made at the same time. Along with the will and the petition, sometimes, it’s necessary to file the death certificate. The court relies on witnesses to determine if the submitted will is the real deal. Many will include witnesses sign an affidavit while the will is signed and witnessed and so-called “self-proving affidavits” in which the decedent. One or more of the will’s witnesses may be needed to sign and testify in court or sworn statement that they watched the decedent ‘sign’ the will. It is to enable that the will in question is undoubtedly the one they saw signed. Appointing The Executor Or A Personal RepresentativeCorrespondingly, as sometimes called a personal representative or administrator, the judge will appoint an executor as well. This individual will settle the estate and oversee the probate process. The appointed executor will get “letters testamentary” from the court. It is a legal way of saying they’ll receive documentation permitting them to act and enter into dealings and transactions on behalf of the estate. This documentation is often referred to as “letters of administration” or “letters of authority.” Posting BondIn the event where the executor commits some grievous error, the bond acts as an insurance policy that will kick in to compensate the estate. It is done either intentionally or unintentionally for the financially damage the estate and its beneficiaries by extension. Tracing The Decedent’s AssetsThe executor’s first task involves taking possession of all the decedent’s assets and locating so they can protect them during the probate process. This can include a fair bit of time and investigation. Some people (even their spouses) own assets they’ve told no one about, and these assets might not be defined in their wills. The executor is not assumed to move into the building or the residence and remain all over the probate process to “protect” it in real estate. Paying The Decedent’s DebtsIncluding all those that might have been incurred during the final illness, the executor will utilize estate funds to pay all the decedent’s ‘debts and final’ bills. Preparing And Filing Tax ReturnsThe executor will file the decedent’s ‘final personal income tax returns’ for the year they pass away. Distributing The EstateThe executor can file a petition the court to distribute “what is left of the ‘decedent’s assets’ to the beneficiaries,” named all these steps have been completed. This usually needs the court’s permission, which is typically only granted after the executor has submitted a comprehensive accounting of every financial transaction they’ve promised in all over the probate process. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
When Is A Premarital Agreement Invalid? Pros And Cons Of In House Attorneys Salt Lake Bankruptcy Attorneys Probate Law St. George UtahProbate Law Ogden UtahThe post How Long Does Probate Take? first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/how-long-does-probate-take/ Salt Lake Bankruptcy AttorneysBankruptcy is a legal process overseen by federal bankruptcy courts. It’s designed to help individuals and businesses eliminate all or part of their debt or to help them repay a portion of what they owe. Bankruptcy may help you get relief from your debt, but it’s important to understand that declaring bankruptcy has a serious, long-term effect on your credit. Bankruptcy will remain on your credit report for 7-10 years, affecting your ability to open credit card accounts and get approved for loans with favorable rates. Chapter 7 BankruptcyChapter 7 bankruptcy, also known as “straight bankruptcy,” is what most people probably think of when they’re considering filing for bankruptcy. Under this type of bankruptcy, you’ll be required to allow a federal court trustee to supervise the sale of any assets that aren’t exempt (cars, work-related tools and basic household furnishings may be exempt). Money from the sale goes toward paying your creditors. The balance of what you owe is eliminated after the bankruptcy is discharged. Chapter 7 bankruptcy can’t get you out of certain kinds of debts. You’ll still have to pay court-ordered alimony and child support, taxes, and student loans. The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date. Should you get into debt again, you won’t be able to file again for bankruptcy under this chapter for eight years. Chapter 13 BankruptcyChapter 13 bankruptcy works slightly differently, allowing you to keep your property in exchange for partially or completely repaying your debt. The bankruptcy court and your attorney will negotiate a three- to five-year repayment plan. Depending on what’s negotiated, you may agree to repay all or part of your debt during that time period. When you’ve completed the agreed repayment plan, your debt is discharged, even if you only repaid part of the amount you originally owed. While any type of bankruptcy negatively affects your credit, a Chapter 13 may be a more favorable option. Because you repay some (or all) of your debt, you may be able to retain some assets. What’s more, a Chapter 13 bankruptcy will cycle off your credit report after seven years, and you could file again under this chapter in as little as two years. Bankruptcy Terms to KnowThroughout bankruptcy proceedings, you’ll likely come across some legal terms particular to bankruptcy proceedings that you’ll need to know. Here are some of the most common and important ones: • Bankruptcy trustee: This is the person or corporation, appointed by the bankruptcy court, to act on behalf of the creditors. He or she reviews the debtor’s petition, liquidates property under Chapter 7 filings, and distributes the proceeds to creditors. In Chapter 13 filings, the trustee also oversees the debtor’s repayment plan, receives payments from the debtor and disburses the money to creditors. • Credit counseling: Before you’ll be allowed to file for bankruptcy, you’ll need to meet either individually or in a group with a nonprofit budget and credit counseling agency. Once you’ve filed, you’ll also be required to complete a course in personal financial management before the bankruptcy can be discharged. Under certain circumstances, both requirements could be waived. • Discharged bankruptcy: When bankruptcy proceedings are complete, the bankruptcy is considered “discharged.” Under Chapter 7, this occurs after your assets have been sold and creditors paid. Under Chapter 13, it occurs when you’ve completed your repayment plan. • Exempt property: Although both types of bankruptcy may require you to sell assets to help repay creditors, some types of property may be exempt from sale. State law determines what a debtor may be allowed to keep, but generally items like work tools, a personal vehicle or equity in a primary residence may be exempted. • Lien: A legal action that allows a creditor to take, hold and sell a debtor’s real estate for security or repayment of a debt. • Liquidation: The sale of a debtor’s non-exempt property. The sale turns assets into “liquid” form cash which is then disbursed to creditors. • Reaffirmed account: Under Chapter 7 bankruptcy, you may agree to continue paying a debt that could be discharged in the proceedings. Reaffirming the account and your commitment to pay the debt is usually done to allow a debtor to keep a piece of collateral, such as a car, that would otherwise be seized as part of the bankruptcy proceedings. • Secured debt: Debt backed by reclaimable property. For example, your mortgage is backed by your home, and for an auto loan, the vehicle itself is the collateral. Creditors of secured debt have the right to seize the collateral if you default on the loan. • Unsecured debt: A debt for which the creditor holds no tangible collateral, such as credit cards. Debt That Can’t Be Discharged In BankruptcyWhile bankruptcy can eliminate a lot of debt, it can’t wipe the slate completely clean if you have certain types of unforgivable debt. Types of debt that bankruptcy can’t eliminate include: • Most student loan debt (although some members of Congress are working to change this). • Court-ordered alimony. • Court-ordered child support. • Reaffirmed debt. • A federal tax lien for taxes owed to the U.S. government. • Government fines or penalties. • Court fines and penalties. Consequences of BankruptcyPerhaps the most well-known consequence of bankruptcy is the loss of property. As previously noted, both types of bankruptcy proceedings can require you to give up possessions for sale in order to repay creditors. Under certain circumstances, bankruptcy can mean losing real estate, vehicles, jewelry, antique furnishings and other types of possessions. Your bankruptcy can also affect others financially. For example, if your parents co-signed an auto loan for you, they could still be held responsible for at least some of that debt if you file for bankruptcy. Finally, bankruptcy damages your credit. Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit. Depending on the type of bankruptcy you file, the negative information can appear on your credit report for up to a decade. Discharged accounts will have their status updated to reflect that they’ve been discharged, and this information will also appear on your credit report. Negative information on a credit report is a factor that can harm your credit score. Getting a Credit Card or Loan after BankruptcyBankruptcy information on your credit report may make it very difficult to get additional credit after the bankruptcy is discharged at least until the information cycles off your credit report. Lenders will be cautious about giving you additional credit, and they may ask you to accept a higher interest rate or less favorable terms in order to extend you credit. It will be important to begin rebuilding your credit right away, making sure you pay all your bills on time. You’ll also want to be careful not to fall back into any negative habits that contributed to your debt problems in the first place. Getting a Mortgage after BankruptcyJust as bankruptcy can hinder your ability to obtain unsecured credit, it can make it difficult to get a mortgage, as well. You may find lenders decline your mortgage application, and those that do accept it may offer you a much higher interest rate and fees. You may be asked to put up a much higher down payment or shoulder higher closing costs. Rather than give up your home and try to get a new mortgage after bankruptcy, it may be better to reaffirm your current mortgage during bankruptcy proceedings. You would be able to keep your home, continue paying on your current mortgage free of other debts and stay in your current home. Bankruptcy AlternativesWhen you’re struggling with unmanageable debt, bankruptcy is just one solution; there are others to consider. Most will also affect your credit, but probably not as badly as a bankruptcy plus, these alternatives can allow you to keep your property, rather than having to liquidate it in bankruptcy proceedings. • Seek help from a government-approved credit counselor or debt management plan. A counselor can work with your creditors to help arrange a workable plan for repaying what you owe. • Take out a debt consolidation loan. These types of loans can aggregate multiple high-interest, costlier debt into a single, lower-interest loan. Research debt consolidation loans to see if consolidation can lower the total amount you pay and make your debt more manageable. • Approach your creditors and see if they’re willing to agree to a more manageable repayment plan. Defaulting on your debt is not something your creditors want to see happen to you, either, so they may be willing to work with you to arrange a more achievable repayment plan. Settling your debt will have a negative effect on your credit scores. Be aware that whenever you fail to honor the debt-repayment terms you originally agreed to, it can affect your credit. That said, bankruptcy will still have a more significant negative impact on your credit than will credit negotiation, credit counseling and debt consolidation. Debt ReliefWhenever you fail to repay a debt as you originally agreed to, it can negatively affect your credit. Some types of debt relief come with consequences that are more damaging and long-term than others. Before you make any decision about debt relief, such as declaring bankruptcy, it’s important to research your options, get reliable advice from a qualified credit counselor, and understand the impact your choices can have on your overall financial well-being. Regardless of what type of debt relief you choose, you can begin taking better care of your credit immediately by putting simple, responsible, credit-positive actions into practice such as: • Paying all your bills on time. • Avoiding taking on additional debt. • Monitoring your credit report. • Creating and sticking to a personal budget. • Using credit in small ways (such as a secured credit card) and paying the balances in full, right away. Credit Recovery Post-BankruptcyAfter filing bankruptcy, you can work to build your credit again but it won’t be instantaneous. Start by making a list of the debts included in your bankruptcy, and check them on your credit reports. After they’re discharged, it may take about two months for the accounts to be updated on your reports. They should be labeled “included in bankruptcy”, “discharged” or similar language. Check your reports every few months for errors. Make sure to check that the negative marks are removed in a timely fashion. In the meantime, consider building credit with a secured credit card. Only take out lines of credit you can afford, and pay back debt as agreed. After several years’ worth of responsible credit behavior, your credit scores can improve. If someone walks the straight and narrow after bankruptcy, it would be possible their scores would be higher now than prior to the bankruptcy. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
When To Call It Quits In A Marriage Estate Planning Attorney Bountiful Utah When Is A Premarital Agreement Invalid? Bankruptcy Law St. George UtahBankruptcy Law Ogden UtahThe post Salt Lake Bankruptcy Attorneys first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/salt-lake-bankruptcy-attorneys/ Prenuptial agreements are valid and enforceable in Utah. It is advisable for clients to have one in place if they have children from a prior relationship or this marriage will not be their first. Also, if the parties have significant separately owned assets acquired before their marriage they may want to consider having one in place. Prenuptial agreements can take the guess work out of determining spousal support and property division in the event of a divorce or upon a spouse’s death. A properly drafted “prenup” will typically provide a formula for determining spousal support (or may contain language waiving spousal support altogether) and have provisions detailing how the parties wish to divide separately owned property and jointly owned property. The agreement should always have a schedule attached to it that accurately lists each parties separate property and any jointly owned property that they have acquired prior to their marriage. For example, the couple executes a joint revocable living trust which states that all of their joint property is listed in a schedule following the trust. The schedule lists all of the couple’s property, including their separately owned property. The property is re-titled in the trust’s name. By doing this, the parties may have destroyed the prenuptial agreement and made it ineffective. Years down the road, the parties may decide they want to divorce. By moving all of their property to the trust and titling the property in the name of the trust, the parties may have inadvertently converted separately owned assets into jointly owned assets. In other words each spouse could have a 50 percent interest in the other spouse’s separately owned property – something that the prenuptial agreement was made to protect against. There is Centreville case law that can help to avoid this result but those cases are fact specific and there is no clear law in this area. At the very least the couple will have an expensive divorce fighting over whether property is separate or joint. Here are some steps to continue to preserve ownership of property identified as separate property in a prenuptial agreement: 1. Accurately identify all separate and jointly owned property in the prenup. 2. Do estate planning at the same time that the prenuptial agreement is being created. 3. Don’t use self-help legal services to create a prenup or estate planning documents. Enforceable prenups must meet several legal requirements that will most likely be overlooked if you try to draft one on your own. Execution of simple estate planning documents may save money in the beginning, but will most likely result in an expensive legal proceeding in the future. 4. Make sure you tell your attorney that you have a prenuptial agreement. After you are married you may want to get rid of it altogether or change certain provisions in it to benefit your spouse. 5. Ensure that all separately owned property is always titled in that spouse’s name who owns the property and that the property is not integrated or commingled with other assets in the marital estate. 6. Don’t use a joint revocable living trust unless safeguards are put in place that reference the prenuptial agreement, dictate what happens to separate property upon divorce or death, and accurately identifies and labels all separate and jointly owned property. Why Use a Prenuptial Agreement?There are several reasons why one party (or even both parties) may want to sign a valid prenuptial agreement prior to getting married. Generally, prenups protect assets that may otherwise be subject to marital property laws. Specifically, these documents may be used to: • Protect one party from taking on the debts of the other • Protect specified assets of one party • Determine the manner in which property is passed on after death • Simplify property division in the event of divorce • Clarify financial responsibilities of the parties The Pros and Cons of Prenuptial AgreementsEntering into a prenuptial agreement should never be taken lightly, particularly since the very mention of a prenup suggests the possibility that the marriage may end at some point. Discussion of a prenuptial agreement also can create stress in a relationship. Therefore, deciding whether to implement certain financial conditions and designations of separate property while also planning nuptials is a personal decision. It helps to understand the pros and cons of signing such an agreement. Pros of Prenups• Support your estate plan without future court involvement Cons of Prenups• Can create distrust and dull the relationship What Makes a Prenuptial Agreement Invalid?A prenuptial agreement may be considered invalid under a number of different conditions and scenarios. First of all, a prenup must be written and signed by both parties and properly executed. Beyond that, a prenup that was signed under duress or not even read prior to signing (as part of a package of documents requesting signatures, for instance), then it may not be considered valid. Other reasons a state may not recognize a prenuptial agreement include lack of independent counsel (for each spouse), false information, and unconscionability. Prenups can be a great tool for couple to use if they are thinking of getting married. A prenuptial agreement can help you establish the financial rights of you and your spouse in unfortunate event of a divorce including protecting a family business, or securing your personal assets. However, prenups have to be done right in order to be valid in your state. Reasons Why A Prenuptial Agreement Might Be Invalid.1. No Written Agreement: Premarital agreements must be in writing to be enforceable. 2. Not Properly Executed: Both parties must sign a premarital agreement before the wedding in order for the agreement to be considered valid. 3. You Were Pressured: A premarital agreement may not be valid if one of the spouses was pressured by the other (or by his or her lawyer or family) to sign the agreement. 4. You Didn’t Read It: If your spouse-to-be puts a bunch of papers in front of you, including a premarital agreement, and asks you to sign them quickly, the premarital agreement may not be enforceable if you sign it without reading it. 5. No Time For Consideration: A prospective spouse entering into a premarital agreement must be given time to review it and think it over before signing it. If the groom hands the contract and a pen to the bride just before she says, “I do,” the agreement is probably invalid. 6. Invalid Provisions: Although a premarital agreement can cover just about any financial aspect of the parties’ relationship, it cannot in any way modify the child support obligations that either spouse would have if the marriage should end in divorce. Any other provisions of the agreement that violate the law would also be invalid. It is possible, however, that the court would strike the illegal clauses and enforce the remainder of the agreement. 7. False Information: A premarital agreement is valid only if it is entered into after full disclosure by both parties as to their income, assets, and liabilities. If one prospective spouse provides the other with information that is not true, the agreement is invalid. 8. Incomplete Information: Failing to provide pertinent information is as bad as providing false information, and it renders a premarital agreement unenforceable. 9. No Independent Counsel: Because their separate interests are at stake, both parties to a premarital contract should (and in some states must) be represented by their own attorneys, or the agreement will not be enforced. 10. Unconscionability: It’s true that you can agree to give up your right to inherit from your spouse, which you would otherwise be entitled to do upon your spouse’s death, even if he or she left you out of a will. You can sign away your right to spousal support if you should end up in divorce court, even if your spouse makes ten times as much money as you do. You can even agree that your spouse gets all of the property and you get all of the bills, if that is what you want to do. But if the agreement is so grossly unfair that one party would face severe financial hardship while the other prospered, the court is unlikely to enforce it. Basically, “unconscionable” contracts are generally found invalid, and premarital agreements are no exception. Getting Legal Help with Your Premarital AgreementA premarital agreement can help you feel secure that your assets will be protected in the event that your marriage doesn’t work out. If you and your future spouse are considering a premarital agreement, you may want to consult with a local family law attorney or Centreville Attorney to make sure it’s in compliance with the laws of Utah. Free Initial Consultation About Utah PrenupsIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Utah Visitation And Domestic Violence When To Call It Quits In A Marriage? Utah Divorce And Guardian Ad Litem Estate Planning Attorney Bountiful Utah Prenup St. George UtahPrenup Ogden UtahThe post When Is A Premartial Agreement Invalid? first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/when-is-a-premartial-agreement-invalid/ It is common for a family member, a family friend, or a close family advisor, such as an accountant, to serve as trustee of a family trust. The individual may have substantial experience serving as a fiduciary, or may have no experience at all. When serving as trustee, it is important to have a solid understanding of the powers and responsibilities associated with the job. A person may be asked to serve as trustee of either a revocable trust or an irrevocable trust. Usually, the settlor of a revocable trust serves as his or her own trustee. In most cases, therefore, fiduciary issues arise where a person is serving as trustee of an irrevocable trust. Except where otherwise indicated, the discussion in this article refers both to situations in which a person is serving as trustee of an irrevocable trust and where she is serving as trustee of another person’s revocable trust. Trust InstrumentAt the outset, the trustee should read the trust instrument carefully. The trust instrument sets forth the powers that the trustee has, the beneficiaries’ rights to distributions, and the trustee’s administrative responsibilities. The law requires that a trustee administer the trust in accordance with the terms of the trust instrument. With very few exceptions, the terms of the trust instrument govern over the default rules that are provided in the Probate Code. A trustee should not assume that he or she already knows what the trustee’s powers and responsibilities are. The terms of the trust instrument govern the administration of the trust, and different trust instruments have different terms. Trustees generally have all of the powers over trust property that an individual has over his or her own assets, but trust instruments sometimes place restrictions on these powers. For example, some trust instruments place restrictions on the ability of a trustee to borrow or to pledge trust property as collateral for a loan. The trustee must be aware of such restrictions. ConfidentialityThe terms of a trust are private, and the trustee owes a duty of confidentially to the beneficiaries with respect to the terms of the trust. Individual trustees often overlook their duty of confidentiality when opening accounts at banks or brokerage firms. The institution will often ask to see a copy of the trust instrument. Instead of giving the institution a copy of the trust instrument, the trustee should generally provide a trust certification. The trust certification will contain the information the institution needs: the name and date of the trust, the name of the settlor, the name and address of the trustee, the relevant powers that the trustee holds, the respective authority held by co-trustees, and the names of any persons who have the power to revoke the trust. Similarly, if a copy of the trust would typically be attached to a document that will be filed as a matter of public record, a trust certification should be attached instead. The trustee and her attorney should be careful when filing petitions, complaints and other documents that pertain to the trust with the court. Sealing of court files is generally reserved for extraordinary situations. In ordinary cases, instead of attaching a copy of the trust to the petition, the trustee or her attorney should perhaps contact the court clerk about the possibility of separately submitting a copy of the trust to the judge for in camera inspection. Trust Exists for the Benefit of the BeneficiariesThe overriding principle in trustee/beneficiary relationships is that the trust exists for the benefit of the beneficiaries, not the trustee. All action the trustee takes in connection with the trust must be for the benefit of the beneficiaries. A trustee must never engage in any act that benefits herself rather than the beneficiaries. One exception to this rule is that the trustee may receive reasonable compensation for her services as trustee, as discussed below. No Transactions with TrustA corollary of the rule that the trustee must act only in the best interests of the beneficiaries is that neither the trustee nor any person related to the trustee should engage in any transaction with the trust or with any trust beneficiary. This rule is known as the “duty of loyalty.” Thus, the trustee should not, in her individual capacity, borrow money from the trust or a trust beneficiary, nor should the trustee lend money to the trust or a trust beneficiary. The trustee should not buy property from the trust or a trust beneficiary, nor sell property to the trust or a trust beneficiary. In addition, the trustee should not usurp any opportunity that would otherwise belong to the trust. If the trustee (or a relative of the trustee, or an enterprise in which the trustee has an interest) does any of these things, the beneficiaries might be able to void the transaction unless the transaction is authorized by the trust instrument, was approved by a court or was approved by the beneficiaries. Keep Beneficiaries InformedThe trustee must keep the beneficiaries fully informed regarding the operations of the trust. This includes providing each beneficiary with a copy of the trust instrument and sending an annual accounting to each beneficiary. The accounting should show • the assets and liabilities of the trust at the beginning of the year, • all income items received during the year, • all expenses items paid during the year, • all distributions made to beneficiaries during the year, and • the assets and liabilities of the trust at the end of the year. The accounting should also disclose any other matters pertaining to the trust of which the beneficiaries should be aware. In addition, the trustee should notify the beneficiaries before the trustee takes any significant action with regard to the trust, in order to give the beneficiaries an opportunity to register objections with the trustee before the action is taken. The trustee must also notify the beneficiaries when a new trustee takes office, when a revocable trust becomes irrevocable as a result of the settlor’s death, and when the trustee’s compensation changes. If there is a particular dilemma associated with keeping a beneficiary informed about the trust’s activities, such as where a beneficiary suffers from substance abuse, the trustee should discuss her options with her attorney. For example, while it is prudent for a trustee to provide a copy of the accounting to all beneficiaries, the statute requires only that a copy be sent to beneficiaries who request it. In addition, some informational requirements can be, and may have been, waived by the settlor in the trust instrument. In Bountiful Utah, the requirement that the trustee keep beneficiaries informed generally applies only to “qualified beneficiaries.” A qualified beneficiary is any beneficiary who is a current or permissible distribute of trust income or principal, or any beneficiary who would be a distributor if the trust terminated at the time in question. Treat Beneficiaries ImpartiallyThe trustee must treat the beneficiaries impartially, except to the extent the terms of the trust instruct the trustee to favor one beneficiary over another. Segregate Trust AssetsThe trustee must maintain separate accounts and separate books for the trust. The trustee must not commingle her personal funds with trust funds. File Tax ReturnsAn irrevocable trust is a separate tax-paying entity. If the trust does not already have a taxpayer identification number, the trustee will need to obtain one. It is the trustee’s responsibility to file federal and state fiduciary income tax returns each year, reporting the income earned on trust assets. Preparation of these returns requires a sophisticated understanding of the income tax principles relating to trusts. The trustee should have the returns prepared by an accountant who is familiar with such returns. Responsibly Administer the TrustIn general, the trustee must administer the trust in a prudent manner. The trustee is responsible for protecting trust property, enforcing claims that the trust has against other persons, keeping appropriate records and incurring only reasonable costs. Where applicable, the duty to protect the trust property includes the duty to keep it adequately insured from loss. Prudently Invest Trust FundsA trustee may believe that she is a sophisticated investor, and she may in fact be such. Nonetheless, the trustee should familiarize herself with the “Prudent Investor Rule.” This rule has several important components. First, the trustee must hold a diversified portfolio of assets unless the trust instrument relieves the trustee of this responsibility or the trustee, after careful consideration, reasonably determines that because of special circumstances the purposes of the trust are better served without diversifying. Second, the trustee must have an investment strategy with risk and return objectives that are reasonably suited to the trust, and trust investments must take into consideration the purposes, terms, distribution requirements, and other circumstances of the trust. • the possible effect of inflation or deflation; • the expected tax consequences of investment decisions; • the role that each investment plays within the overall trust portfolio, which may include interests in closely held enterprises, tangible and intangible personal property, and real property; • the expected total return from income and the appreciation of capital; other resources of the beneficiaries; • needs for liquidity, regularity of income, and preservation or appreciation of capital; and • an asset’s special value, if any, to the purposes of the trust. The trustee should consult with a professional financial advisor when designing and implementing an investment strategy for the trust. The trustee should not assume that the investment experience she brings to her own personal investments is sufficient for her role as a fiduciary. Revocable TrustsOrdinarily, a person serves as trustee of his or her own revocable trust. If the trust is created by a husband and wife, both will often serve as co-trustees. Occasionally however, a third person is called upon to serve as trustee of a revocable trust even while the settlor of the trust is still alive. In such a case, the trustee has all of the responsibilities discussed above that apply to trustees of irrevocable trusts. Her fiduciary duty is owed only to the settlor as long as the settlor is alive. Upon the death of the settlor, the revocable trust becomes an irrevocable administrative trust, and the duties discussed above with respect to irrevocable trusts apply equally to the administrative trust. In addition, the trustee of an administrative trust has a variety of other responsibilities. Soon after the deceased settlor’s death, she must marshal the trust assets and pay the debts of the deceased settlor. She must also send a notice to the trust beneficiaries within 60 days after the death of the settlor informing them of the existence of the trust. The trustee will be responsible for filing the deceased settlor’s final personal income tax returns and the deceased settlor’s estate tax return, if any. She must obtain a tax identification number for the administrative trust and file the federal and state fiduciary income tax returns for the trust each year until the trust assets are distributed. She will also, of course, be responsible for distributing the trust assets to the beneficiaries in a timely manner. Co-TrusteesWhen more than one trustee is serving, the co-trustees must act by majority decision, unless the trust instrument provides otherwise. Thus, if two trustees are serving, they must act unanimously. If more than two trustees are serving, they can act only if a majority of them concur in the proposed action. Co-Trustees are generally able to delegate their authority to act to other co-trustees, unless the trust instrument places restrictions on the ability to delegate. A trustee has a duty to monitor the actions of her co-trustee. Compensation of TrusteeA person serving as trustee is entitled to reasonable compensation, and is also entitled to reimbursement for reasonable expenses incurred in administering the trust. A very rough rule of thumb is that a non-professional trustee may receive as compensation an amount equal to between 0.40% and 1.0% of the value of the trust annually, depending on the size of the trust and the complexity of administration. Alternatively, the trustee may charge an hourly fee, typically $100-200. Legal fees, accounting fees and fees of investment advisors are paid separately out of the trust. Consequences of BreachIf a trustee fails to faithfully perform her responsibilities, she may be subject to any of a variety of sanctions, including monetary damages, removal as trustee, denial of her compensation, and the setting aside of certain transactions that she may have entered into improperly. In order to protect herself from monetary damages, the trustee may want to consider obtaining errors and omissions insurance. It is rare for an individual trustee to carry such insurance, but it is good to be aware of the option, since umbrella insurance policies do not usually cover liability arising out of a person’s role as a fiduciary. In extreme cases, a fiduciary may be subject to criminal liability for breach of fiduciary duty if the breach results in substantial risk of loss to the beneficiaries. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Estate Planning Attorney Farmington Utah Asset Protection With Swiss Banking Chapter 13 Bankruptcy Compared To Other Debt Solutions When To Call It Quits In A Marriage Estate Planning Law St. George Utah OfficeEstate Planning Law Ogden Utah OfficeThe post Estate Planning Attorney Bountiful Utah first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/estate-planning-attorney-bountiful-utah/ Like a roller coaster, all marriages have their ups and downs. One minute you’re flying high with excitement, the next minute you’re wishing you never got on the ride. When you first got married you likely never thought you would be contemplating all the reasons you should leave your spouse for good. Making this decision isn’t easy and you may find yourself going back and forth on the decision for months or even years. Divorce isn’t something to be decided lightly. There are many things to consider such as children, finances, and whether you’re truly ready to move on. Here Are the Signs it May be Time to File for DivorceYou’ve Given it Genuine ConsiderationSome people claim they want a divorce, but they don’t truly mean it. Many couples have threatened divorce in the heat of an argument but would be mortified if their spouse called their bluff. If you want divorce help for deciding if it’s time to end things, do this: imagine you are divorced. Really imagine it. This means that you will have to: Furthermore, imagine that your spouse has moved on and is in an intimate relationship with someone new. If the reality of these things does not upset you or outweigh your urge to leave, it may be time to say goodbye. Consistent InfidelityResearch shows that the most common reason people get divorced is infidelity. And in recent years, online infidelity has been a strong citation in divorce paperwork. If you or your spouse is cheating on each other openly or in secret, with little or no remorse, it is definitely time to part ways. Addiction is InvolvedAddiction can create many messy problems in a marriage. This does not mean you must abandon your spouse because they have an addiction to drugs, gambling, sex, or alcohol if they are seeking help for their problems. However, if having these things in your marriage is causing you physical harm, financial ruin, or emotional turmoil, you may consider leaving. You’ve Stopped CaringWhat once charmed you about your partner now drives you crazy or leaves you feeling indifferent. You no longer desire to spend any time together, do not dress up or try to look nice for your spouse, and genuinely aren’t concerned with your spouse’s life. There is No PartnershipYour marriage should be a partnership. You are taking on the world together, making decisions together, and always have each other’s back. If this is no longer the case in your marriage, you may have had a mutual drift in love for one another. You’re Not HappyNo relationship is happy 100% of the time. However, the good times should outweigh the bad ones in a happy, healthy relationship. If you are no longer happy or have fallen into a serious depression because of your marriage, this is definitely an indication that something needs to change. Your Relationship is DangerousOne non-negotiable when it comes to your marriage is when there is verbal or physical abuse. Even if you are not being physically harmed, emotional abuse can be just as damaging to your health. One of the biggest pieces of divorce advice to consider is whether or not staying with your spouse puts you in emotional or physical danger. Your Children Are SufferingAs a parent, it is your job to ensure that your children are growing up in a healthy, happy family atmosphere. Physical violence or mental abuse should not be tolerated. If you believe that your children are in physical or mental danger, you should seriously consider separating or divorcing your spouse. You’ve Tried Everything ElseDivorce is not something that should be decided on a whim. It’s serious business that affects more than just you and your soon-to-be ex. The biggest piece of divorce advice for knowing when it’s time to file for divorce is when you know that you’ve exhausted all other options to try and save the relationship. This may include, but is not limited to: • Instituting a regular date night: Studies show that regular date night can improve the quality of a marriage. It improves communication, builds sexual chemistry, carries a playful novelty, helps couples reconnect, and offers a level of stress-reduction. All that in just one night a week! • Addicts Seeking Help: The spouse who is addicted attends therapy or went to rehab in order to take control of their sickness and put the marriage first. • Daily Gratitude and Attitude Changes: Doing little things like saying please and thank you or telling your spouse what you appreciate about them is important. Studies show that the highest predictor of increased relationship satisfaction is expressions of gratitude within the marriage. • Seeking Therapy: Marriage counseling is the best way for couples to fix their relationship. A counselor will help them learn how to communicate, fight fair, problem solve, and create tools in which to deal with the issues in the relationship. If you have tried all of these things and there is still no relief from the mutual unhappiness in your marriage, it is time to call it quits. Proceeding with a divorce is one of the most difficult things a person can go through. Before you file for divorce, ensure that you have done everything possible to save your marriage. Seek counseling and try to reconnect. If all else fails, proceed with a divorce and take the necessary steps to protect yourself. Although divorce is common throughout Utah, the divorce process varies depending on the couple’s situation. Short-term marriages without children or property typically result in a less complex and time-consuming divorce than long-term marriages with significant property entanglements, marital debt, and minor children. Additionally, divorcing couples who work together to negotiate the terms of the divorce (child custody, child support, property division, debt allocation, and spousal support) will experience a less expensive and less stressful divorce than couples who can’t agree or refuse to work together. Filing the Divorce PetitionWhether both spouses agree to the divorce or not, before any couple can begin the divorce process, one spouse must file a legal petition asking the court to terminate the marriage. The filing spouse must include the following information: • a statement which informs the court that at least one spouse meets the state’s residency requirements for divorce • a legal reason or grounds for the divorce, and • any other statutory information that your state requires. Residency requirements vary depending on where you live. States usually require at least one spouse to live in the state anywhere from 3 months to 12 months, and in the county where the spouse files at least 10 days to 6 months before filing the petition. Divorcing spouses must meet the state’s residency requirement before the court can accept the case. Grounds for divorce vary from state-to-state. However, all states offer divorcing couples the option to file a no-fault divorce. No-fault divorce is a streamlined process that allows spouses to file a divorce petition without listing a specific reason or placing blame on either spouse. If your spouse committed marital misconduct or caused the breakup, some states allow parties to claim “fault” for the divorce, like adultery or neglect. If you’re unsure whether you should file a no-fault or fault divorce, contact an experienced family law attorney in your state for guidance. Asking for Temporary OrdersCourts understand that the waiting period for divorce may not be possible for all couples. For example, if you are a stay-at-home parent that is raising your children and dependent on your spouse for financial support, waiting for 6-months for the judge to finalize your divorce probably seems impossible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. If you request a temporary order, the court will hold a hearing and request information from each spouse before deciding how to rule on the application. The judge will usually grant the temporary order quickly, and it will remain valid until the court orders otherwise or until the judge finalizes the divorce. Other temporary orders may include a request for status quo payments or temporary property restraining orders. Status quo orders typically require the breadwinner to continue paying marital debts throughout the divorce process. Temporary property restraining orders protect the marital estate from either spouse selling, giving away, or otherwise disposing of marital property during the divorce process. Restraining orders are usually mutual, meaning both spouses must follow it or risk being penalized by the court. If you need a temporary order but didn’t file your request at the time you filed for divorce, you’ll need to apply for temporary orders as quickly as possible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. Serve Your Spouse and Wait for a ResponseAfter you file the petition for divorce and request for temporary orders, you need to provide a copy of the paperwork to your spouse and file proof of service with the court. Proof of service is a document that tells the court that you met the statutory requirements for giving a copy of the petition to your spouse. If you don’t properly serve your spouse, or if you neglect to file a proof of service with the court, the judge will be unable to proceed with your divorce case. Service of process can be easy, especially if your spouse agrees with the divorce and is willing to sign an acknowledgment of service. However, some spouses, especially ones that want to stay married or make the process complicated, can be evasive or try anything to frustrate the process. The easiest way to ensure proper service is for the filing spouse to hire a professional who is licensed and experienced in delivering legal documents to difficult parties. The cost is usually minimal and can help prevent a delay in your case. If your spouse retained an attorney, you could arrange to have the paperwork delivered to the attorney’s office. The party who receives the paperwork (usually titled “defendant” or “respondent”) must file an answer or reply to the divorce petition within a prescribed amount of time. Failure to respond could result in a “default” judgment against the non-responding spouse, which can be complicated and expensive to reverse. The responding party has the option to dispute the grounds for divorce (if a fault divorce), the allegations in the petition, or assert any disagreements as to property, support, custody, or any other divorce-related issues. Negotiate a SettlementIn cases where the parties have differing opinions on important topics, like child custody, support, or property division, both spouses will need to work together to reach an agreement. Sometimes the court will schedule a settlement conference, which is where the parties and their attorneys will meet to discuss the status of the case. The court may schedule mediation, which is where a neutral third-party will help facilitate discussion between the spouses in hopes to resolve lingering issues. Some states require participation in mediation, while others do not. However, mediation often saves significant time and money during the divorce process, so it’s often a good route for many divorcing couples. Divorce TrialSometimes negotiations fail despite each spouse’s best efforts. If there are still issues that remain unresolved after mediation and other talks, the parties will need to ask the court for help, which means going to trial. A divorce trial is costly and time-consuming, plus it takes all the power away from the spouses and puts it in the hands of the judge. Negotiations and mediation sessions allow the couple to maintain control and have more predictable results than a divorce trial, so it’s best to avoid a trial if possible. Finalizing the JudgmentWhether you and your spouse negotiated throughout the divorce process, or a judge decided the significant issues for you, the final step of divorce comes when the judge signs the judgment of divorce. The judgment of divorce (or “order of dissolution”) ends the marriage and spells out the specifics about how the couple will allocate custodial responsibility and parenting time, child and spousal support, and how the couple will divide assets and debts. If the parties negotiated a settlement, the filing spouse’s attorney typically drafts the judgment. However, if the couple went through a divorce trial, the judge will issue the final order. If you are going through a divorce, talk to a divorce attorney to figure out your options. Free Initial Consultation with a Divorce Law FirmIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Estate Planning Attorney Farmington Utah Divorce Law St. George Utah OfficeDivorce Law Ogden Utah OfficeThe post When To Call It Quits In A Marriage first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/when-to-call-it-quits-in-a-marriage/ In certain states, homeowners can take advantage of what’s called a homestead exemption. Basically, a homestead exemption allows a homeowner to protect the value of her principal residence from creditors and property taxes. A homestead exemption also protects a surviving spouse when the other homeowner spouse dies. State homestead exemptions often have four features, including the well-known property-tax exemption on a portion of a home’s assessed value. Property TaxesA homeowner’s understanding when it comes to homesteading her property most often has to do with the property-tax exemption. Generally, this advantage of homesteading pertains to shielding a portion of a home’s value from property taxes. Often, a typical homesteading advantage is that it’ll exempt the first $25,000 to $75,000 of a home’s assessed value from all property taxes. With a $50,000 homesteading exemption, you’ll only owe property taxes on the home’s remaining assessed value. Forced Sale ImmunityWith a homestead exemption, your home is shielded from a forced sale to satisfy creditors. For example, the lender financing your automobile can’t force the sale of your home if you default on your auto loan. Before homestead exemptions, creditors could and often did try to seize a homeowner’s property to satisfy all kinds of debts. Homestead exemptions, however, don’t normally shield your home from forced sale in mortgage foreclosures or from defaulted property taxes. Surviving Spouse AdvantagesUtah’s homesteading laws work to protect the homestead interests of surviving spouses by guaranteeing their homesteading rights. State homestead laws vary, but surviving spouses under homestead laws retain the homestead right to their homes for life. For surviving spouses, as long as they use and occupy the homesteaded property, they won’t lose homestead rights. Surviving spouses on homesteaded properties, though, must make any mortgage and other payments due in order to retain their homesteading rights. Homestead RequirementsIn order to declare a homestead on your home, it must be your principal residence. In Utah, homestead exemptions apply only to real property. You won’t be able to declare your house boat or motor home a homestead under certain state’s homesteading laws. Your homestead exemption and its advantages last until you effectively abandon the homestead, too. Commonly, you abandon an old homestead when you declare another home your new homestead. The Utah Homestead Exemption AmountUnder the Utah exemption system, homeowners may exempt up to $30,000 of their home or other property covered by the homestead exemption. You may use the homestead exemption to protect more than one parcel of land, but you may protect up to one acre only. Doubling for Married CouplesIf you file a joint bankruptcy with your spouse in Utah, you can double the homestead exemption to protect up to $60,000 in your home. The Scope of the Utah Homestead ExemptionIn Utah, the homestead exemption applies to real property, including your home or mobile home. You may also protect water rights that you own, if the water is used for domestic or irrigation purposes. In order to use the $30,000 exemption to protect your home, it must be your primary personal residence. Utah law permits you to protect property that is not your primary personal residence, but if you don’t live in the property, the exemption amount is limited to $5,000. The homestead exemption also applies to sale proceeds for up to one year after the property is sold. Can You Use the Federal Bankruptcy Exemptions in Utah?Some states allow bankruptcy filers to use the federal bankruptcy exemptions instead of the state exemptions. Utah is not one of those states. If you reside in Utah, you must use the state exemptions. Homestead DeclarationsIn Utah, you must file a homestead declaration (a form filed with the county recorder’s office to put on record your right to a homestead exemption) in order to claim the homestead exemption. Contact your county recorder for information on how to file a homestead declaration. Refer to the Utah Code Section 78B-5-504 for the information you are required to include in your homestead declaration. Other Information About the Utah Homestead ExemptionIn Utah, you cannot use the homestead exemption to protect your property from debts due to property taxes or assessments, purchase (such as a mortgage), child support, or liens that you allowed against your property by mutual contract. Homestead exemptions work in two primary ways: flat-dollar exemptions or percentage exemptions. Homestead Tax Exemption ExampleHomestead tax exemptions reduce the taxable value of your home, meaning you pay less to the government. Here’s how it works: If your home is worth $200,000, and your local property tax rate is 1%, then you’d normally owe $2,000. But if the homestead exemption is $25,000, then you’re taxed like your property is worth $175,000 meaning you owe just $1,750. Who’s Eligible For A Homestead Mortgage Exemption?Homestead exemptions are generally available only on primary residences, rather than second homes or investment properties. Some states offer their homestead exemption applications to all homeowners. Other states restrict their homestead tax exemptions to certain groups, or offer greater homestead exemptions to people in certain categories, such as: Types Of Homestead Mortgage ExemptionsHere are a few examples of homestead mortgage exemptions in individual states. (Note: The exemptions listed below are typically not the only ones the state offers.) The homestead exemption in Utah is included in the state constitution, allowing all homeowners to reduce the taxable value of their home by $7,000. The homestead exemption in New York is for veterans who have served in the U.S. armed forces and are homeowners. Depending on the type of service, several types of exemptions are offered. One of them, the Alternative Veterans Exemption, gives a 15% percentage exemption to veterans who served during a time of war, and is offered in more than 95% of the state’s cities and towns. The homestead exemption in Florida allows homeowners to exempt up to $50,000 of the taxable value of their homes. The first $25,000 applies to all property taxes, which include school district taxes. Homeowners who have properties valued between $50,000 to $75,000 can deduct up to another $25,000 for non-school property taxes only. The state also exempts quadriplegic people and surviving spouses of first responders killed in the line of duty from all property taxes. The Idaho homestead exemption allows people to exempt 50% of the taxable value of their home and up to one acre of land, for a maximum of $100,000 in exemption. To get a homestead exemption, you typically have to apply for one, and every state has its own process. Typically, you’ll need to fill out a homestead exemption application with your county tax office. Many have application forms on their websites, which will ask you for the type of exemption you’re applying for and information about your property. If you’re applying based on your age or a disability, you’ll likely have to provide documentation this can include: Homestead exemption applications are usually due by March or April of the year in which you intend to claim the exemption, though it could be as early as Dec. 31 of the year prior. Check with your county tax office. You may only need to file once, with the exemption renewing each year unless you move, but you should check your state’s rules to be sure. Ways To Lower Your Mortgage Tax BillOwning a home can offer numerous tax benefits. If your state doesn’t offer a homestead mortgage exemption, or if you’re looking for other avenues to save money, here are a handful of ways to reduce your property tax bill: • Appeal your tax assessment. Between 30% to 60% of the taxable properties in the U.S. are overvalued, according to the nonpartisan National Taxpayers Union Foundation. If you don’t agree with your valuation, file an appeal with your local tax authority. • Deduct your mortgage interest payments. You’re allowed to deduct interest paid on up to $750,000 in home loans on your federal taxes, including the mortgage on your primary residence and a home equity loan or a line of credit used to buy, build or improve your primary residence or a second home. • Deduct the value of your home office. If you’re self-employed, you may be able to deduct $5 per square foot of your home office on your taxes. How To Start A HomesteadMoving from a typical modern lifestyle to being a homesteader is often a gradual process. You don’t have to sell everything and move to the country all at once. A lot of people have a romantic and idealized dream of what homesteading would be like. Step 1: Consider What Homesteading InvolvesYou should really stop and think about what the day-to-day activities and chores will be like if you decide to become a homesteader. Taking care of crops and livestock, in particular, are time-consuming and physically demanding tasks, and not everyone is cut out for it. If you have a spouse or partner, you also need to make sure they’re 100% on board, and that homesteading is the kind of life that both of you are looking for. You’ll need to sit down and have open and honest discussions about what you’re looking for. If your partner hates the idea of getting their hands dirty, then living a homestead lifestyle will be very difficult for you. You should spend hours and hours learning everything you can about homesteading before you decide to make any kind of commitment. Don’t make a major homesteading decision without having all the facts and knowledge needed. Watch documentaries, read books and fully immerse yourself in the homestead mindset. If you’ve got friends or family who already have a homestead of their own, see if you can spend a few days helping out to get a feel for what the lifestyle is like. And be sure to ask them lots of questions. Step 2: Set Goals For YourselfIf you followed Step 1 and realized that devoting yourself to taking care of a farm full-time isn’t for you, that’s totally okay. You can still practice homesteading and have a sustainable lifestyle without selling everything and moving to the country. Even in an urban setting you can start a vegetable garden, get a few backyard chickens and begin preserving your own food. Step 3: Decide Where You Want To LiveYour goals in Step 2 will help decide what size of a property you’ll need. If you plan to have a full-time or part-time job still and just do homesteading as a hobby, then you can probably get by in an urban or semi-rural environment. Are you okay living in an ultra remote area, or do you want to be just outside of town? Make sure any land you look at will actually work for the type of homestead lifestyle you’re trying to accomplish. If you’re primarily looking to grow crops, then very sandy or rocky soil will make things more difficult, for example. Don’t forget to factor in travel time. Do you really want to drive 1.5 hours every time you need to pick up something from the grocery store, or go to work every day (if you’re still going to have a job?) Are you okay with the fact that it may take an hour for police or an ambulance to arrive in case of an emergency? Even little things like needing to take a long walk down to your mailbox each day, or driving to your nearest post office once a week, may be more than what you thought you were signing up for. Also avoid the temptation to bite off more than you can chew. You don’t need 100 acres, or even 10, to have the homestead of your dreams. Some important homestead factors to keep in mind during the planning stage include: • Water access. Do you have nearby lakes, rivers, or ponds that you can use for water? Is there a well on the property? How much rainfall does the area get per year? • Land safety. You don’t want to live somewhere that’s prone to drought if you’re growing your own food, and you also don’t want to be near oil fracking sites or other potential health hazards. • Community. Sometimes the community you’re a part of is just as important as the land you buy. You will need to make friends and network with people in your area. If they have different religious or political views than you, it might be more difficult to fit in with the community, especially in a small village. • School. If you have kids, is there a school nearby? If not, you may need to home school them. Step 4: Make A BudgetHaving a thoroughly thought-out budget is critical for homesteading, particularly if you’re planning to give up a steady job to become completely self-sufficient. If you’re buying land and property, it’s important not to use all your savings to buy it. Otherwise you won’t have any money left for renovations, improvements, equipment, or other necessary things. If you are giving up a job for a more self-sufficient lifestyle, you’re going to need to think of some ideas to generate income for yourself. At a bare minimum you’re still likely going to need to pay property taxes, and potentially utilities as well as things like a phone or internet bill. You’re also going to want to have some savings in case of an emergency, such as if your furnace breaks, or a family member gets sick. It’s smart to have multiple streams of income from your homestead. You may try selling wool, milk products, extra produce, as well as things like soap making or other crafts. That way if your crops all die or you find out there’s no demand for one income source, you have something else to fall back on. Obviously you don’t want to spread yourself too thin. But it’s not all that uncommon for homesteaders to have 5 or 10 different products or sources of income. Step 5: Start SmallYou don’t need to wait until you have your dream farm to begin. You can start your journey into homesteading right away. Much of homesteading is a mindset and lifestyle, as opposed to where you live. Whatever your situation is, even if you’re living in an apartment, you can start moving toward a more self-sufficient lifestyle this week. If you have a sunny window, you can start growing your own herbs or lettuce indoors. Got a large backyard that’s not being used to grow much besides grass and weeds? Put in a garden or raised bed next spring and start growing a portion of the vegetables for your household. (Be sure to pick vegetables that you actually enjoy and want to eat regularly!) Have a fireplace that you don’t currently use? Time to clean out your chimney and get some wood, and start using it to reduce your heating bill! Over time you can gradually add more and more projects. Even if you only make one or two small lifestyle changes per year, things will really start to add up over time. You could even start raising chickens or beekeeping in your backyard. Just be sure to check what your local bylaws are to make sure it’s allowed first! Step 6: Continually Simplify Your LifeHomesteading often goes hand-in-hand with minimalism and living a more frugal lifestyle. A big part of that is getting out of the cycle of always needing the newest and greatest phones, gadgets, trendy clothing, and other things that can suck money out of your bank account but not really offer much value. For homesteaders, less is more, and there’s usually a cheaper and better way to do something. You should be continuously taking an audit of your life to see what things are draining your money, time, and energy, and seeing if you can reduce or completely eliminate them from your life. Adding homesteading to your lifestyle will often require taking some previous things out. Some things might be obvious. Other things may be more subtle and take more insight to figure out how to reduce or remove them from your life. Step 7: Learn To Preserve FoodThere are tons of different ways to preserve food, but the idea of food preservation in general is becoming a bit of a dying art. Even picking up one food preservation skill like canning, pickling, freezing, cold storage, dehydrating, or smoking can help cut down on your food costs. If you’re growing your own fruits and vegetables, then learning to preserve food is an absolute must. You’re likely going to have far more food at the end of the season than you know what to do with. And if you can’t preserve it, then most of it will end up going to waste. You’ll need to find a way to keep your produce from spoiling so that you can keep your family fed all throughout the winter months. Even if you don’t grow your own food, learning to preserve will allow you to buy food in season when it’s cheapest and most ripe, and continue eating it all year round. You probably know someone who has some extra canning supplies that you can borrow just to try it out. Even if you need to buy your own canning jars or a food dehydrator, they will often pay for themselves within the first one or two uses. Starting to use cold storage is as easy as finding a cool, dark place in your basement or under your home where you can store things. Step 8: Make Friends With Other HomesteadersHomesteading is often associated with hermits or people who aren’t very sociable. But the truth is that many homesteaders are very friendly and eager to share what they know with anyone who’s interested. Having a homesteading buddy who is more experienced than you can really help if you have questions or concerns at any step along the way. They’ll know about the weather, growing conditions, laws, and lots of other useful information that you’ll need, because they’ve likely been through it all themselves already. And don’t discount having the moral support and someone who lives the same lifestyle as you being there, when everyone else is telling you that you’re crazy. Networking with other homesteaders makes sense from a material perspective too. If you’ve grown too many peppers and your friend has too many eggs, then it’s easy to barter for what you need. Or you might even set up long-term arrangements with other homesteaders to trade for food and supplies that you don’t necessarily want to produce yourself. You might only need a plow once per year at the start of the season, and it could make more sense to just borrow it from a neighbor as opposed to buying one for yourself. Free Initial Consultation with a Real Estate Law FirmIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Can I Convert My Chapter 13 To Chapter 7? Moving And Relocation After Divorce Structured Product Investment Lawyer Estate Planning Attorney Farmington Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Homestead Act first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/utah-homestead-act/ Estate planning is the process through which a person makes plans for the transfer of their estate after their death. The estate is what the person owns ranging from houses, land, vehicles, investment, retirement and personal effects like cash, jewelry and clothes among others. The process also comes with a number of goals and objectives and people need to ensure that they have set them out in order to meet them. Some of these objectives assigning the children a guardian, making sure that the properties are transferred to the beneficiaries and to pay the least amount of taxes on it. Some of the terms that a client needs to keep in mind while thinking of this process includes the will, which states the person receiving the property and at what amounts, the trust which establishes the person or the organization that will take care of their properties on behalf of their beneficiary and the power of attorney, which gives the person or a company the legal power to handle the affairs in case they are not able to do so. It is also important for the clients to start the process when they are legally competent. This means that they should be at least 18 years old and should be of sound mind. Being in good health and free from stress is also required when the clients want to carry out estate planning. When thinking of carrying out this process, it is important that the clients select a competent and reputable estate planning attorney. Since the process is more than just writing up a will, the clients need to ensure that they have ensured that the attorney they have selected is able to handle all other activities that are required. In order to do this, it is recommended that they compare the services of different lawyers before making their pick. While doing this, they will learn of the lawyers’ educational background and their experience. By selecting one who is experienced, the clients will have an easier time with the process because the lawyers will have the information they require. While at the law firm, it is important for the clients to meet the person who will be working on their case so that they can determine if they are comfortable with them. Finding a lawyer that they can easily relate to is very important because the planning process requires the clients to provide all types of information about their property. If they are not comfortable with the lawyers, it is recommended that they avoid them and select a different one. On top of it all, it is important for them to ensure that the lawyer they have selected is trustworthy. Probate Lawyers Play Important Role in Estate Planning and SettlementProbate lawyers are an essential part of estate planning and estate settlement. Individuals retain probate attorneys to execute their last will and testament. Estate executors can hire lawyers to draft and record legal documents through the court or to help with estate administration duties. There are two types of probate lawyers; Transactional and Probate Litigators. Transactional lawyers handle estate related duties, while probate litigators are used when heirs contest the Will or if family conflicts arise. Common estate duties include sending creditor notification letters; obtaining affidavits for real estate transfers; drafting ‘consent to transfer’ forms for financial accounts; and filing final tax returns. Probate litigators are retained to defend the estate when heirs contest decedent Wills or if lawsuits are filed against the estate during the probate process. They can also be helpful in mediating family disputes regarding distribution of inheritance property. Some probate lawyers are qualified to handle both transactional and litigation cases. When seeking the services of attorneys it is recommended to interview three or more lawyers to determine which is best suited for the needs of the estate. Hiring an attorney to handle estate affairs can be difficult to do during the grieving process. It can be helpful to work with the lawyer who executed the decedent’s Will. However, it is also important to work with a lawyer whose personality is suited to the estate administrator. Managing an estate can be extremely emotional and working with a lawyer who shows little compassion or interest can make the process nearly unbearable. It is important to be prepared when interviewing attorneys. When calling to arrange a meeting ask for a list of required information. At minimum, lawyers will require the decedent’s social security number, date of birth, date of death, and legal documents including the last will and testament, death certificate, life insurance policies, tax returns, and property deeds. Individuals can avoid probate by engaging in estate planning strategies prior to death. The only ironclad way to avoid probate is to establish a trust. However, trusts are generally used when estate values exceed $100,000. Individuals with small estates can still protect assets by establishing payable-on-death and transfer-on-death beneficiaries. How to Avoid Probate Through Estate Planning and Assignment of BeneficiariesLearning how to avoid probate can save heirs’ time and money, prevent family disputes, and allow easy transfer of inheritance property upon death. Many people are not even familiar with probate let alone how to prevent it from occurring. Probate is required within all states of the United States to ensure decedent estates are settled according to inheritance laws. It is a time-consuming process that can take several months to complete. Becoming educated about how to avoid probate is as simple as conducting research on the Internet or consulting with a family law attorney or estate planner. Many banks, credit unions, and financial advisors offer estate planning services for a nominal fee. The only way to completely avoid the probate process is to transfer assets into a trust. However, trusts are generally reserved for individuals with assets valued over $100,000. Individuals with smaller estates can take measures to keep certain assets from undergoing the probate process. One of the most important aspects of estate planning is executing a last will and testament, along with healthcare directives and designating Power of Attorney rights. POA allows a person to make decisions on your behalf if you are incapacitated and unable to make important decisions. Power of attorney rights also allow individuals to pay bills from your checking account, transfer titled property, and make legal decisions. Therefore, the person granted these powers should be someone whom can be trusted to make decisions based on your best interests. Healthcare directives allow you to state what type of medical care you do or do not want. These can include being placed on life support, receiving nutritional support, organ donation, and do not rescesitate orders. The Will is used to designate an estate administrator to handle all facets of estate management. Required duties vary depending on estate value, inheritance property, and family dynamics. Small probated estates can settle in three to six months. If heirs contest the Will, estate settlement can be prolonged until attorneys can work out acceptable agreements. Legal fees from contested Wills often bankrupt estates and leave nothing for heirs to inherit. If people die without executing a legal will, the probate process takes longer. An estate administrator must be appointed through the court and additional work is required to locate heirs, inventory property, and other details which are normally included in the last will. Individuals who hold bank accounts, retirement accounts, financial portfolios, and life insurance policies can assign beneficiaries to receive proceeds upon death. Beneficiary forms can be obtained through the financial institution where the account is held. Account holders can assign multiple beneficiaries and state the percentage of funds they will receive. Beneficiaries must abide by each financial institution’s policy regarding distribution of inheritance funds. Most states require beneficiaries to submit date-of-death value forms to the county tax assessor’s office. As long as decedents are current with taxes, the Assessor’s off will stamp the form so proceeds can be distributed. Titled property can be kept out of probate by establishing joint ownership. When real estate or motor vehicles have joint titles, the property automatically transfers to the co-owner. When joint ownership is with a person other than your spouse, you might need to establish Joint Tenancy with Rights of Survivorship. A lesser known way to avoid probate is through gifting inheritance property while you’re still alive. The Internal Revenue Service allows gifting up to $12,000 per individual or $20,000 per married couple per year. If gifting limits exceed maximum level, recipients are required to file a federal gift tax return and pay appropriate inheritance taxes. What Are the Key Estate Planning Documents We Should Have?The WillIf you pass away without a will (intestate) in Farmington Utah your spouse is only entitled to the first $50,000.00 outright. Your spouse must split the rest of your assets with your children, no matter how young or old they are. If you have no children, your parents are next in line. With a will, you decide to whom, when, and in what amounts your assets should be distributed. You select your executor or personal representative, the one who shall be responsible for the disposition of the estate. A will must be written, signed by the testator (maker) and witnesses. The original copy is the legal document and must be signed. For a will to be legal in Farmington, Utah you must have at least two witnesses. The testator and the witnesses are required to be present at the signing, and each must see the others sign the will. The witnesses do not have to read or know what the will contains. They must simply be told by the testator that it is his or her will, and asked be to sign as witnesses. GuardianshipWithout a will, someone will need to file a court proceeding for guardianship of your minor children. This person may or may not be the person you would choose to be guardian and this person may be required to post a bond. The costs of this proceeding and the cost of the bond may be paid out of the value of your estate. With a will, you can specify the person who is to be guardian of your minor children and you can waive the requirement of a bond. Without a will a court appointed executor will designate a person to manage your children’s inheritance until they reach age of 18. Ideally, you may prefer they receive the money after they complete their college education or reach the age of 25. With a will, you can specify the person who will manage this money for your children, how the money is to be spent, and at what age your children will receive the money directly. Determining guardianship for your children can be one of the most serious decisions you will make in your lifetime. Think long and hard who the guardian(s) should be before making a decision. Living WillThe legal name for the living will is the advanced directive. It permits you (the patient) to communicate, in advance, the medical care decisions you would make if you are rendered incapacitated. These clear instructions can circumvent a difficult decision your family may be forced to make otherwise. The living will is a relatively simple document that must be in writing, signed and dated in the presence of two subscribing adult witnesses, who must attest to the fact that the person is of sound mind and free from duress and undue influence. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Lawyers In Salt Lake City Utah Can I Convert My Chapter 13 To Chapter 7? Stop Repossessions With Bankruptcy Question Of Liability In A No Fault Auto Car Insurance State Estate Planning Attorney Farmington Utah St. George Utah OfficeEstate Planning Attorney Farmington Utah Ogden Utah OfficeThe post Estate Planning Attorney Farmington Utah first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/estate-planning-attorney-farmington-utah/ What is the Protection of Lawful Commerce in Arms Act (PLCAA)?PLCAA is a federal law that gives gun manufacturers, distributors, and dealers (“the gun industry”) protections unlike any other industry. PLCAA does not protect firearms or ammunition manufacturers, sellers, or trade associations from any other lawsuits based on their own negligence or criminal conduct. As we have stressed repeatedly, this legislation will not bar the courthouse doors to victims who have been harmed by the negligence or misdeeds of anyone in the gun industry . . . If manufacturers or dealers break the law or commit negligence, they are still liable . . . The only lawsuits this legislation seeks to prevent are novel causes of action that have no history or grounding in legal principle. PLCAA prohibits “qualified civil liability actions” against the gun industry. A qualified civil liability action is a tort claim for harm resulting from a third party’s criminal or unlawful misuse of a firearm. At the same time, PLCAA explicitly allows six types of claims, including actions against sellers and manufacturers who knowingly violated applicable federal or state laws, negligent entrustment, negligence per se, and products liability claims. Because PLCAA does not protect the gun industry from lawsuits based on its own negligence or criminal conduct, it has brought numerous successful cases in which courts have correctly found that PLCAA does not bar liability for a dealer’s own negligent conduct. Gun Industry ImmunityCivil liability plays an important role in injury prevention. In circumstances where legislators have been unwilling to enact regulations to improve safety, dangerous products and careless industry practices are normally held in check by the possibility of civil litigation that enables injured individuals to recover monetarily. This principle does not apply to the gun industry, however, because it has obtained unprecedented immunity from this longstanding system of accountability. Immunity statutes grant legal protection to gun manufacturers and dealers, shielding them from liability for a wide range of conduct. Similar immunity laws have been adopted in some form by the federal government and 34 states. FEDERAL STATUTEGenerally speaking, the PLCAA prohibits “qualified civil liability actions,” which are defined as civil or administrative proceedings which “result from the criminal or lawful misuse” of firearms or ammunition. • an action brought against someone convicted of “knowingly transfer[ing] a firearm, knowing that such firearm will be used to commit a crime of violence” by someone directly harmed by such unlawful conduct; • an action brought against a seller for negligent entrustment or negligence per se; • an action in which a manufacturer or seller of a qualified product knowingly violated a State or Federal statute applicable to the sale or marketing of the product, and the violation was a proximate cause of the harm for which relief is sought; • an action for breach of contract or warranty in connection with the purchase of the product; • an action for death, physical injuries or property damage resulting directly from a defect in design or manufacture of the product, when used as intended or in a reasonably foreseeable manner, except that where the discharge of the product was caused by a volitional act that constituted a criminal offense, then such act shall be considered the sole proximate cause of any resulting death, personal injuries or property damage; or • an action commenced by the Attorney General to enforce the Gun Control Act or the National Firearms Act. LEGAL CHALLENGES TO PLCAAThere have been several constitutional challenges to the PLCAA, but to date none have been successful. Several courts have interpreted the third exception to the PLCAA, commonly referred to as the “predicate exception.” The predicate exception applies when the plaintiff proves that a manufacturer or seller knowingly committed a violation of an underlying statute, referred to as a “predicate statute,” that is “applicable to the sale or marketing” of a firearm or ammunition. As described below, the only two federal appellate courts to consider the issue—the Second and Ninth Circuits—have both found in split decisions that the PLCAA barred claims brought under generally applicable public nuisance statutes. The same result has been reached by state courts in Alaska and Illinois and a federal district court. State appellate courts in Indiana and New York, however, have allowed such suits to proceed. Unlike the other cases, these two cases involved allegations that gun manufacturers and distributors knowingly sold firearms to straw purchasers who, in turn, were selling the firearms to criminals. Relatively few reported decisions have substantively interpreted the PLCAA’s other exceptions, particularly regarding suits against sellers for negligent entrustment and negligence per se. STATE LAW IMMUNITY STATUTESAt present, 34 states provide either blanket immunity to the gun industry in a way similar to the PLCAA or prohibit cities or other local government entities from bringing lawsuits against certain gun industry defendants. Those states are: Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia. These immunity laws have been directed principally at state and local governmental lawsuits against certain gun industry defendants. In general, lawsuits against the gun industry allege that industry defendants have marketed and distributed their firearms in ways which they know or should know create and feed an illegal secondary market in firearms. This secondary market allows unauthorized purchasers, such as felons, to obtain guns for use in crime, to the injury of the government entity and its citizens. A second claim central to a number of the lawsuits is that defendant manufacturers have failed to implement safer designs, including designs that would prevent unauthorized use of handguns by children and others. While some of the governmental lawsuits seek damages, others seek injunctive or other equitable relief. PLCAA is a common‐sense law. Product liability suits are usually focused on actual manufacturing defects. A good backyard grill effectively grills meat, but if it blows up due to a manufacturing defect, then a tort suit is warranted. A good gun shoots reliably and accurately and doesn’t blow up in your hands. While gun manufacturers should and are liable for guns that malfunction, they shouldn’t be liable for making reliable and accurate guns that can be used for mayhem, of course, but can also be used for self‐defense and sporting purposes. Similarly, a swimming pool would be a bad pool if it failed to effectively hold water, but if it is a good swimming pool that holds water it also inevitably increases the risk of drowning. Like a swimming pool, a gun’s good qualities are inexorably tied to the dangerous ones. Despite PLCAA’s protections, victims of the mass shooting at Sandy Hook Elementary School and their family members are attempting to hold Remington, a gun manufacturer, responsible for the crimes of the killer because the rifle he used was made by Remington. They argue that the killer chose the Remington rifle from his mother’s legally owned collection of guns because Remington’s advertisements for the rifle connect it with the military, a subject the killer was interested in. The lawsuit claims these advertisements constitute an “unfair trade practice” under Connecticut law and therefore fit into a narrow exception to PLCAA’s protection. This exception applies only when sellers violate a law regulating the sale or marketing of their products and that violation leads to a crime committed with a gun they sell. The evidence shows, however, that Congress didn’t intend this exception to apply to lawsuits based on vague claims of “unfair trade practices.” In fact, this is exactly the type of lawsuit the PLCAA was intended to prohibit. A sharply divided Connecticut Supreme Court, however, decided that the exception applied and allowed Remington to be sued. EnactmentThe Protection of Lawful Commerce in Arms Act (PLCAA) was passed by the U.S. House of Representatives in October 2005 by a bipartisan vote of 283 to 144. The measure had passed the Senate in July by a vote of 65 to 31. Senate Democrats who voted in favor were Baucus, Dorgan, Jeffords, Kohl, Landrieu, Lincoln, Nelson (Neb.), Pryor, Reid, Rockefeller, Salazar and Warner. (Cong. Rec. Page S9396). Senate Minority Leader Harry Reid (D-Nev.) played a major role in passing the legislation. At the time, Bernie Sanders was U.S. representative, and he supported the bill. Parallel state legislationWhen the PLCAA was enacted, 34 states had similar legislation. The state laws are not necessarily exact duplicates of the federal statutes. For example, Colorado provides for an award of attorneys’ fees against plaintiffs who instigate lawsuits in violation of the Colorado statute. In 2015, this resulted in a $200,000 fee award against two Brady Center employee plaintiffs. The Protection of Lawful Commerce in Arms Act’s provisionsCodified at 15 U.S.C. §§ 7901-7903, the PLCAA bans some lawsuits against manufacturers, wholesalers, retailers and trade associations for firearms, ammunition or components. The only lawsuits prohibited are those for harms “resulting from the criminal or unlawful misuse” of the products. The PLCAA expressly does not interfere with lawsuits based on breach of warranty, breach of contract, or genuine defects in design or manufacture. Defect cases may not be brought when the alleged injury resulted from a third party’s “volitional act that constituted a criminal offense.” The PLCAA does allow for lawsuits for damages resulting from the acts of third-party criminals in certain circumstances: Where the transferor (e.g., the retail store) is convicted of violating 18 U.S.C. 922(u), or a state analogue, which prohibits unlawfully taking a firearm from a store’s business premises (e.g., giving a gun to a buyer who has not passed the requisite background check). Negligent entrustment or negligence per se. Similar to giving car keys to a person who is plainly intoxicated. You cannot sell a gun to a person who is under the influence. Whenever the seller violated the law relating to sales of the product — such as by knowingly making a false entry in record books, or disposing of the product to a person whom the seller had reasonable cause to believe was legally prohibited from possessing the product. The PLCAA does not displace common-law tort rules in the above situations; a plaintiff would have to prove that the violation was a “proximate cause” of the plaintiff’s injury. Lawsuits subsequent to the enactment of the PLCAANo legal challenges to the PLCAA, or its state analogues, have succeeded. Lawsuits that the PLCAA permits have been brought, and some have succeeded. For example, a lawsuit against Badger Guns, in Milwaukee, based on the previous owners’ allegedly improper sales practices, was settled for $1 million in December 2015. The plaintiffs had won a jury verdict in October, and the settlement resulted in no appeal taking place. Analogous laws for other industriesAlthough opponents of the PLCAA assert that its protections are unique, legislatures often enact industry-specific legislation to address problems caused by tort litigation against that industry. For example, a federal statute prohibits all tort lawsuits against vaccine manufacturers. Likewise, a Colorado statute prohibits lawsuits against ski areas for dangers that are inherent in skiing (e.g., hitting a tree). To the extent that prohibition groups misuse the tort system against any industry — especially one that provides products necessary to exercise a constitutional right — legislative intervention is sometimes necessary. National defense implicationsWhen the PLCAA was before Congress, the Department of Defense stated that it “strongly supports” S. 397 because the bill “would help safeguard our national security by limiting unnecessary lawsuits against an industry that plays a critical role in meeting the procurement needs of our men and women in uniform.” International effectIn 2011, the Mexican government retained counsel to investigate a potential Mexican government lawsuit against U.S. firearms manufacturers. It seems possible that PLCAA might have played a role in a decision not to initiate the Mexican lawsuit. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Elder Law And Estate Planning Attorney Lawyers In Salt Lake City Utah Salt Lake City Contract Attorney What Are Rape And Sexual Assault? Can I Convert My Chapter 13 To Chapter 7? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Lawsuits Against Firearms first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/lawsuits-against-firearms/ Yes. Yes you usually can. Sometimes you have to get court approval. Call us and we’ll walk you through it. There are several different bankruptcy chapters. There are two common types of bankruptcy that are filed by individuals, Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also called a liquidation bankruptcy because the individual’s property may be sold, or liquidated, in order to satisfy their debts. In order to qualify for a Chapter 7 bankruptcy, an individual must be at or below the median income in their state. Each state has its own requirements regarding who is eligible to file for bankruptcy. Why Would a Debtor Convert from Chapter 13 to Chapter 7 Bankruptcy?As noted above, there are two main types of bankruptcy, reorganization and liquidation. A Chapter 13 bankruptcy is a reorganization type. There are different factors which affect how the individual’s debt is reorganized and restructured, including the kind of debt the debtor includes in their bankruptcy petition, as some debts cannot be discharged such as: • child support; • student loans; • taxes; and • other debts; • The type of relationship the debtor and the creditor have regarding the debt; • The debtor’s ability to pay off the amount owed within a reasonable period of time; and • The bankruptcy judge’s final determinations regarding the debt. In some cases, a bankruptcy may be converted from a Chapter 13 to a Chapter 7, which may be necessary when: • The debtor’s financial situation has changed and they can no make the required payments in the Chapter 13 repayment plan; or In general, converting a Chapter 13 bankruptcy to a Chapter 7 bankruptcy may be requested at any time following the filing of the Chapter 13. The conversion process is similar to filing a new Chapter 7 claim. It is important to note that the usual restrictions apply when converting from Chapter 13 to Chapter 7. For example, the debtor is required to wait at least 8 years from a prior Chapter 7 bankruptcy filing. Forced Conversion from Chapter 13 to Chapter 7In certain bankruptcy cases, the bankruptcy court requires a debtor to convert a Chapter 13 to a Chapter 7 claim. This is called a forced conversion, which is backed by a court order allowing the conversion. If an individual fails to make the ordered conversion, it could result in legal penalties. A forced conversion may only be ordered if a court has good cause to do so. Examples of good cause to force a bankruptcy conversion include, but are not limited to: • The debtor failed to create a Chapter 13 plan within the required time frame; • The debtor failed to keep up with their required Chapter 13 payments; and/or • The debtor was involved in some unreasonable delay which resulted in harm to a creditor or creditors. It is important to note that the bankruptcy court will not likely force a conversion if the debtor is doing everything within their abilities to comply. Examples may include missing a payment because of unforeseen circumstances, such as an unanticipated medical emergency. If, however, the debtor’s actions indicate to the bankruptcy court that they are attempting to take advantage of their creditors in some way, the court may force a conversion from Chapter 13 to Chapter 7. What is needed to Switch from Chapter 13 to Chapter 7?There are a number of requirements that a debtor must meet prior to filing for a Chapter 7 bankruptcy. This includes a means test. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) prohibits a debtor with a higher income from filing for Chapter 7 bankruptcy. The means test examines the debtor’s income in order to determine eligibility to file for Chapter 7 bankruptcy. A debtor is required to submit either a Form 22A for a Chapter 7 bankruptcy or Form 22C in a Chapter 13 bankruptcy. The form must be submitted to a bankruptcy court prior to the court hearing the debtor’s case. Courts are not in agreement as to whether the means test applies to a debtor who is converting to a Chapter 7. Some courts hold that the means test only applies to a debtor who initially files for Chapter 7. There are certain elements that must be addressed when a debtor converts from a Chapter 13 to a Chapter 7 bankruptcy, including: • Petition and schedule; • Proof of claims; • Creditor meeting; and • Exemptions. A petition must be filed with the bankruptcy court. When a bankruptcy is being converted, the original Chapter 13 petition typically carries over during the conversion process. However, a new schedule may need to be created. The debtor will be required to obtain a proof of claims. This shows that the creditor has a valid claim on the debt. This may be carried over from the original Chapter 13 case. When converting chapters, the debtor must attend another meeting with their creditor or creditors. This applies even if a meeting was held during the Chapter 13 proceedings. Depending on the jurisdiction, the court may use the date of the Chapter 13 filing to determine exemptions. Other courts will use the Chapter 7 conversion date. Many of the Chapter 7 bankruptcy requirements will be fulfilled automatically when the claim is converted from the Chapter 13 filing. A debtor, however, should consult with an attorney for assistance with other requirements. For example, some of the paperwork that will be carried over from the Chapter 13 petition may need to be amended or adjusted for the Chapter 7. How Much Does It Cost to Switch from Chapter 13 to Chapter 7 Bankruptcy?The costs of switching a Chapter 13 to a Chapter 7 bankruptcy depend on numerous factors. These include, but are not limited to: • The cost of the court appointed trustee; • Court costs; and • Attorney’s fees. When a debtor’s bankruptcy is converted from a Chapter 13 to a Chapter 7, the court will assign a new bankruptcy trustee. In addition, a new 341 meeting of the creditors must be held. In other words, there are various costs that will be incurred when switching from a Chapter 13 to a Chapter 7. Because the debtor must attend an additional meeting of the creditors, they may be charged additional attorney’s fees. However, the debtor will not be required to file and pay fees for a new bankruptcy petition. Should I file Chapter 7?Chapter 7 is an option to consider if you have little to no disposable income. In fact, you’ll have to pass a means test to prove that you can’t afford to pay your debt in order to file. Here are some things to consider if you’re deciding whether Chapter 7 bankruptcy is right for you. 1. It could reduce your monthly debt-repayment load When you have a debt discharged through Chapter 7 bankruptcy, you’re no longer legally required to pay that debt back. That means the money you were paying toward that loan or credit card, for example, can now be used for other things, like household necessities. Note that there are a number of exceptions to the debts that can be discharged in Chapter 7, so we recommend contacting a bankruptcy lawyer before you file. 2. It can provide relief from debt collectors If you can’t afford your unpaid debts, Chapter 7 can be a helpful tool to stop debt collectors from taking action against you. When you file, some of your creditors may be temporarily restricted from the following; • Collecting money from you • Contacting you • Continuing wage garnishment • Starting or continuing lawsuits against you or your property 3. You may be able to clear your debts faster with Chapter 7 than with Chapter 13 Where Chapter 13 bankruptcy typically takes three to five years to complete, Chapter 7 generally takes about 90 to 100 days from start to finish, in addition to the time it takes to complete a credit counseling course prior to filing. 4. You will lose some assets One of the main consequences of filing Chapter 7 is the possible loss of your assets. Depending on the laws in your state, and whether you have equity in certain assets, your cash or property will be at stake. 5. Your credit could take a hit The other major consequence of a Chapter 7 bankruptcy is the impact to your credit. A Chapter 7 bankruptcy can stay on your credit reports for up to 10 years from the date you file. That doesn’t mean you’ll never be able to open a credit card or take out a mortgage again, but it does mean you might have to pay a lot more in interest rates and fees when borrowing. Should I file Chapter 13?Chapter 13 is a bankruptcy option to look at if you own property that you want to keep. 1. If you have sufficient income, you may be required to file Chapter 13 To qualify for a Chapter 7 bankruptcy, you’ll have to prove you can’t repay your debt. If, depending on your income and your state’s median income requirements, your current monthly income is more than your state’s median income for a family of your size, you may not be allowed to file Chapter 7. In this case, Chapter 13 could be the right option for you. 2. It can stop debt collections and the foreclosure process If you’re a struggling homeowner, Chapter 13 could be the help you’re looking for. Filing Chapter 13 can stop the foreclosure process and give you a chance to catch up on your past-due mortgage payments. And if you have debts in collections, any debts discharged during Chapter 13 means your creditors can no longer take any action to try to collect the money from you. 3. It can help you repay your debt Chapter 13 can also provide a more convenient and cost-effective way to repay your debt. Through Chapter 13, you’ll make a plan to repay all or some of your debts. You can make one consolidated monthly payment toward your debts based on your repayment plan. This lump payment will then be distributed to your creditors. Your monthly payments may also be reduced for certain types of debts, so you can repay them over the course of your three- to five-year plan. 4. It can take three to five years to discharge your debts Chapter 7 bankruptcy can help you discharge your debts relatively quickly, but the same isn’t true for Chapter 13. Under Chapter 13, responsibility for your debt doesn’t end until your repayment plan has been completed, which typically takes three to five years. 5. The repayment plan can strain your budget You have to pledge your disposable income for the duration of the plan. That can be difficult, especially if income is variable. 6. If you can’t stick to the repayment plan, you could lose your Chapter 13 status and maybe even assets If you’re unable to make your payments under the plan, your bankruptcy case could be dismissed or converted to Chapter 7, which means you could again be in jeopardy of losing assets like your home or car. Your repayment plan could also be at risk of being dismissed or converted to Chapter 7 by the court if you fail to file required taxes during your case or if you fail to pay domestic support obligations, such as child support and alimony, after filing. 7. The impact on your credit may not be as severe Like Chapter 7, Chapter 13 bankruptcy may have a very negative impact on your credit. A completed Chapter 13 bankruptcy can stay on your credit reports for up to seven years from the date you file. But some creditors could view a Chapter 13 bankruptcy more favorably than a Chapter 7 bankruptcy. It could be an indication that you repaid more of your debt. Advantages to a Chapter 7 Bankruptcy Filing1. The amount of debt you can erase is not limited. Disadvantages to a Chapter 7 Bankruptcy Filing1. You lose your non-exempt property which is sold by the trustee. Advantages to a Chapter 13 Payment Plan1. You keep all your property, exempt and non-exempt. Disadvantages to a Chapter 13 Payment Plan1. You pay your debts out of your disposable (post-bankruptcy) income. This tie up your cash over the repayment period. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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