Exemptions play an important role in both Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, exemptions help determine which property you get to keep. In Chapter 13 bankruptcy, exemptions help determine how much you’ll have to pay to your unsecured creditors, which can mean the difference between a confirmable plan and getting knocked out of Chapter 13. Exemptions allow you to keep a certain amount of assets safe in bankruptcy, such as an inexpensive car, professional tools, clothing, and a retirement account. If you can exempt an asset, you don’t have to worry about the bankruptcy trustee appointed to your case taking it and selling it for your creditors’ benefit. Many exemptions protect specific property types, such as a motor vehicle or furniture, up to a particular dollar amount. Sometimes an exemption protects the entire value of the asset. Some exemptions, called “wildcard exemptions,” can be applied towards any property you own. Unfortunately, at this time there is no wildcard exemption in Utah. That may change in the future. How Do Bankruptcy Exemptions Work?Exemptions play different roles depending on whether you are filing a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 BankruptcyChapter 7 bankruptcy is a liquidation bankruptcy where the appointed trustee sells off your nonexempt assets to pay your creditors. Exemptions help you protect your assets in Chapter 7 bankruptcy because the bankruptcy trustee can’t sell exempt property. For example, if your state has a $5,000 motor vehicle exemption and you only have one car worth $4,000, then you can keep it. For more information, see Exemptions in Chapter 7 Bankruptcy. Chapter 13 BankruptcyA Chapter 13 bankruptcy allows you to keep all your property and reorganize your debts (which can mean paying less on some of them). However, the amount you must pay particular creditors still depends on how much property you can exempt. Non-priority unsecured creditors (such as credit card issuers) must receive an amount equal to your nonexempt assets. So in Chapter 13 bankruptcy, exemptions help keep your plan payments low by reducing the amount you must pay creditors State and Federal Bankruptcy ExemptionsEach state has a set of bankruptcy exemptions. Federal law provides an exemption set, too. Some states require you to use the state exemptions; others give you the option of choosing either its set of exemptions or the federal system (you cannot mix and match the two). Which state’s exemption laws you’ll qualify to use will depend on where you lived during the last two years (called the “domicile requirements.”). Federal Non-bankruptcy ExemptionsIn addition to state and federal bankruptcy exemptions, there is a set of federal exemptions that exist under non-bankruptcy law. These exemptions function similarly to bankruptcy exemptions in protecting your property in bankruptcy. However, federal non-bankruptcy exemptions are only available to you if you are using your state’s exemptions (you cannot combine the federal bankruptcy and non-bankruptcy exemptions). If you are using state exemptions, then you can use the non-bankruptcy exemptions in addition to those How Do I Use The Homestead Exemption?Like all of your property, the equity in your home is an asset in bankruptcy. Bankruptcy exemptions, including the homestead exemption, allow you to protect property that you’ll need to maintain a household and employment. Bankruptcy exemption amounts vary by state, so the amount you’ll be able to protect will depend on where you live. Also, the bankruptcy chapter you file will determine what will happen to your home if you can’t protect all of the equity. The bankruptcy trustee sells nonexempt property in a Chapter 7 bankruptcy. If your house has nonexempt equity, the bankruptcy trustee will do the following: • sell the home • pay off the mortgage • reimburse you the amount of the homestead exemption, and • use the remaining proceeds to pay fees and your unsecured creditors (such as credit card balances, utility and medical bills, and personal loans). By contrast, a Chapter 13 bankruptcy trustee won’t sell your property. Instead, you can keep nonexempt property, but at a cost. You must pay an amount equal to the nonexempt portion through your Chapter 13 repayment plan. Making the required payment can be problematic if you have lots of nonexempt equity in your home. If you don’t have the income to do so, it’s unlikely that the court would approve (confirm) your three- to five-year repayment plan. Understanding the Role of the Bankruptcy TrusteeWhen you file a bankruptcy case, the court appoints an official called a “bankruptcy trustee” to administer it. The trustee reviews the paperwork filed with the court, as well as additional documents called 521 documents; sent to the trustee shortly after that. The 521 documents include paycheck stubs, bank statements, income tax returns, and any other items specially required by the trustee assigned to your matter. For instance, it’s not uncommon to provide your most recent car loan or mortgage statement, or the marital settlement agreement from your divorce. Also, all bankruptcy filers must attend at least one court appearance called a 341 meeting of creditors. During the session, you can expect the trustee to do the following: • place you under oath • verify your identification and the accuracy of your petition • inquire about unusual details found in your bankruptcy paperwork • ask standard questions asked of everyone in attendance, and • allow creditors present to ask questions about your case. A Chapter 7 trustee may choose to sell all nonexempt property and distribute the proceeds to your creditors. A Chapter 13 trustee won’t sell your property. Instead, the trustee will evaluate the appropriateness of your three- to five-year repayment plan including whether you’re paying for nonexempt property. If it fails to meet requirements, the trustee will file an objection asking the court to reject it and argue the same at the confirmation hearing. If the plan meets required standards, the trustee will support the plan’s confirmation. Further, the trustee will distribute the monthly plan payments to creditors. What Is My Homestead Exemption Amount?The homestead exemption is different for each state. A federal exemption system exists under federal law, as well. Your state decides whether you can choose between the state and federal system (you must pick one or the other), or whether you must use the state scheme. Some states allow you an unlimited or a very high homestead exemption amount, but most protect a modest amount of equity, and a few states don’t have one at all. To find the homestead exemption amount in your state (and other exemptions) and to determine whether you can use the federal bankruptcy exemptions, go to Bankruptcy Homestead Exemption Domicile RequirementIn an attempt to prevent people from shielding their assets by moving to and buying a house in a state with an unlimited homesteads exemption, federal law places restrictions on the homestead exemption. In order to take advantage of a state’s homestead exemption, you must have purchased your home at least 40 months before the bankruptcy (if you sold your home and bought a new one in that same state with the sale proceeds, then the time you owned your first home will still count toward the 40-month requirement). Exemptions in Chapter 13 BankruptcyBankruptcy exemptions help give filers a fresh start by allowing them to keep property they’ll need to maintain a home and job. Exemptions also help determine the amount a debtor must pay in a Chapter 13 repayment plan. Even though a filer can keep all property in Chapter 13, it comes at a cost. The debtor must pay creditors the value of any nonexempt property—things that aren’t covered by an exemption in the three- to five-year repayment plan. In this article, you’ll learn more about the role exemptions play in Chapter 13 bankruptcy. Protecting Property With Exemptions in Chapter 13 BankruptcyBankruptcy exemptions allow you to protect property such as household goods, some equity in a house and car, and a qualified retirement account. Exemptions don’t cover non-essential luxury items, like boats or vacation cabins (nonexempt property). Not only do exemptions protect essential property in both Chapter 7 and 13, but they also ensure that creditors get paid what’s owed them. The way each chapter achieves this is slightly different, however. Here’s how it works: • Chapter 7 bankruptcy—a “liquidation” chapter. If you cannot exempt an asset in this chapter, the bankruptcy trustee appointed to the case will sell it, return any exemption amount you’re owed, and pay your creditors with the amount that remains after deducting sales costs. • Chapter 13 bankruptcy—a “repayment” chapter. By contrast, the Chapter 13 trustee won’t sell your nonexempt assets. Instead, you’ll pay the nonexempt portion to your unsecured creditors through your repayment plan. Calculating a Chapter 13 Repayment Plan PaymentIn a Chapter 13 bankruptcy, you propose a plan to repay some or all of your debts through monthly payments that you’ll make to a bankruptcy trustee. There are a lot of complicated rules that go into a repayment plan, but in general, the amount you’ll pay will depend on your: • Income • monthly living expenses • the amount and type of debt that you owe, and • the property you own. The first step is to determine your disposable income by deducting allowable expenses from your monthly income. Then you’ll multiply your disposable income by the number of months in your repayment plan. The second step is to determine the value of your nonexempt assets. Each state allows filers to keep some property using the state’s bankruptcy exemptions. Nonexempt assets are those things that you can’t protect with a bankruptcy exemption. In Chapter 13, you must pay your creditors the value of your nonexempt assets in your repayment plan. The third step is determining which debts you must pay in full in a Chapter 13 plan. These debts include mortgage and car payment arrearages (if you plan to keep the house or car), recently incurred income tax debt, and support arrearages. Once complete, you’ll have three numbers in front of you. Over the course of your plan, you’ll be required to pay the greater of: • your disposable income, or • the value of your nonexempt property plus the total of the debts you must pay in full. By complying with this formula, you’ll satisfy what’s known as the “best-effort” rule in Chapter 13 bankruptcy. Keep in mind that calculating a repayment plan is complicated. This simplified explanation shouldn’t be used as an instructional guide but rather to aid understanding only. Property and Debts That Increase Your Chapter 13 Repayment Plan PaymentPeople who don’t own much nonexempt property and don’t have any debts that they must pay in full will have an easier time drafting a confirmable plan (a plan that the judge will approve at the Chapter 13 confirmation hearing). Because the good faith rule requires you to contribute all of your “disposable income” to your plan, pay off certain debts, and pay at least the value of your nonexempt property over your three- to five-year repayment plan, low-income filers often can’t meet the good faith requirement. Exemptions in Chapter 7 BankruptcyWhen considering filing for Chapter 7 bankruptcy, the first thing most people want to know is how much property they’re allowed to keep. The answer largely depends on the following: • the type of property you have • how much that property is worth, and • the bankruptcy “exemptions” that you can use. When you file a Chapter 7 bankruptcy, a bankruptcy trustee is appointed and given the authority to sell your assets to pay your creditors. However, filing for bankruptcy doesn’t mean that you have to give up all of your property. Bankruptcy exemptions allow you to keep a certain amount of property so that you can make a fresh start after the bankruptcy. In a Chapter 7 bankruptcy, if you can exempt an asset, the bankruptcy trustee cannot sell it to pay your creditors. How much property you can keep in a Chapter 7 bankruptcy will depend on your assets’ value and the exemptions you can claim. Thanks to exemptions, most Chapter 7 filers keep all or most of their property. Chapter 7 Bankruptcy EstateAll of the property you own when you file for bankruptcy, except for most pensions and educational trusts, become part of what is known as the estate when you file for bankruptcy. For instance, the following assets will be part of your bankruptcy estate: • property in your possession • property in someone else’s possession (such as an item you’ve loaned to a friend) • property you’ve recently given away • property you haven’t yet received but are entitled to • proceeds from your property (such as rental income or dividends) • certain assets you receive within 180 days after filing (for example, an inheritance or lottery winnings), and • your share of marital property. The bankruptcy trustee will assume control of the property in the bankruptcy estate throughout your case. What will happen to it in Chapter 7 bankruptcy will depend on whether you can protect it with an exemption. 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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Estate planning is very important and only a few people make an effort to understand the basic concept and the importance of estate planning. Some basic facts and tips regarding the same are as follows: • If a person dies without making his will, that is, if he dies ‘intestate’, the court gets the authority to take all important decisions like bringing up of his children, the administration of his estate, the inheritance of real and personal property, etc. • Make sure that your will is made as in the majority of cases, the family of the deceased is left with no option but to agree to a court appointed administrator. Besides, in case there are minors or someone who is mentally challenged among your family members, problems can increase manifold. Children from previous marriages, if any, further add to these complications. • If proper estate planning is not done, irrespective of the wish of the deceased, the children from the first spouse generally end up with nothing. • At times, the children get all the assets whereas the surviving spouse is left in a state where it might not be quite possible to maintain the current standards of living. • In case the husband and the wife die together without leaving behind a will, the State is required to decide who died first in order to adjudicate upon the issues of inheritance and administration of the estate. As per the rule, the heirs of the one who die first are left high and dry. In short, failure to have an estate plan can cause a lot of problems to your family after you die. Your hard work over so many years will go wasted and your spouse and children will be deprived of the benefits of your labor. Types of Estate Planning DocumentsYou may have heard some of the terms, Last Will and Testament, Living Will, Power of Attorney, but are not exactly sure what they are or whether you need them. From an Estate Planning perspective, these documents are essential to ensure that your assets are distributed properly and your legal interests are protected. A Last Will and Testament is a document that sets forth the distribution of your assets at the time of your passing. A common misnomer that people have about Wills is that you have to divulge all of your bank accounts and financial information to the Attorney who is drafting the Will. This is simply not true. Usually, the Testator (the person with the Will) just sets forth the names of the heirs and how much of his/her estate each heir will receive, i.e. 50% to my son, Jack, and 50% to my daughter, Mary. Typically, only special assets are specifically named in the Will, i.e. my 5 carat diamond ring to my friend, Lucy, or my home in Heber Utah to my friend, Steve. After that, a simple Will requires only a few other things. You must name an Executor of your Will. The Executor is the person who will handle the Estate affairs after your passing. He/She will open an Estate, determine all of your assets and liabilities, and make distribution of those assets as per the guidelines set forth in your Will. You will also have to name a Trustee if you plan on leaving any assets to a minor. There are a few other minor legal requirements that your local attorney can assist you with in drafting your Last Will and Testament. A Living Will is a document that sets forth your wishes as to certain types of medical treatment in the event that you suffer a permanent disability that renders you incapacitated with no hope of recovery. The instance that we are talking about here is the person in a coma or permanent vegetative state. In order for a Living Will to take effect in Heber Utah, two physicians must certify that you have no real hope of recovery. At that point, your Surrogate (this person is named in the Living Will) will meet with your physician and advise him as to your wishes regarding treatment. A Power of Attorney is another important document. This document gives your Agent the ability to act on your behalf in almost any type of situation that you could think of. The Agent has the ability to sign checks, transfer real estate, and make medical decisions and much more. As you can see, this document is very powerful, and as such, the authority bestowed with it should only be granted to an individual that you trust beyond reproach. This document becomes important in the instance where you can no longer act for yourself, or have difficulty doing so. However, you should be advised that this document takes effect immediately upon signing. Again, at least in Heber Utah, this document gives your Agent the ability to act on your behalf immediately. Important Estate Planning Terms To KnowThere are many aspects to estate planning, which is truly a flexible process that is unique for every individual. A living will is often a strong foundation, but estate planning doesn’t end there. Most individuals need to complete a series of documents to ensure their wishes will be fulfilled following their death. These are important terms to understand as you prepare and go through the process: Special Needs TrustIf someone is incompetent or mentally or physically disabled, they can be protected by a special needs trust. This arrangement can pay for medical items and supplemental needs that the government won’t cover. When arranged correctly, the beneficiary can receive Social Security and Medicaid benefits, plus get the extra support needed from the trust fund. The assets are protected so they’ll be used in the way that has been designated. Children’s Common TrustThis legal document can provide protection to children in a number of different situations. It can ensure that if sued, your children won’t lose their inheritance. It can also prevent a stepparent from stripping your children of their inheritance. A kid common trust can be created to ensure your assets will not be allocated to nursing home costs and will instead be gifted to your children. Living TrustA living trust outlines what you’d like to happen with your assets, dependents, and heirs after you die. It is different than a will, because it skips the probate process that is required in the execution of wills. You simply name a trusted individual as the successor trustee, and he or she will carry about the instructions you’ve provided. This same individual may be responsible for managing your legal, financial, and healthcare needs if you become unable to do so yourself. Last WillThis legal document outlines how you’d like your property and assets to be distributed after death. A critical part of the estate planning process, it also gives you the opportunity to name someone to execute those wishes and allows you to name guardians for your children. You may also set specific guidelines about how inheritances will be distributed, for example in the case of young children. Following death, a probate proceeding is often requested to confirm the validity of the will. Power of AttorneyA Power of Attorney is a written authorization for someone to act on your behalf when dealing with legal and private matters. The level of authorization that person has can vary greatly, so it’s imperative to outline your wishes in great detail. The types of power the person may have included being able to make financial and health care decisions should you become incapacitated or otherwise unable to make them for yourself. Difference Between An Heir And A BeneficiaryMany people use the terms “heir” and “beneficiary” interchangeably, but there are important differences between the two designations. Here’s how an heir and a beneficiary differ: Who is an heir?An heir is a relative who is legally entitled to an inheritance from a deceased relative’s estate when the decedent did not have a legal last will and testament. When there’s no will, which is called “dying intestate,” an estate typically passes to the closest living relatives in prescribed shares, then to more distant relatives if close relatives are not living. While a surviving spouse is not an heir in the strict definition of the word, a spouse or registered domestic partner is typically first in line for assets through a state’s marital or community property laws. Assets pass first to a living spouse and/or immediate descendants (children and/or grandchildren, biological as well as adopted). If they’re not living, then to parents, and if they’re not living, to descendants of grandparents (aunts, uncles, and cousins). If all heirs are deceased, then the assets of the estate pass to the state, which is called escheatment. Who is not an heir?An unmarried partner, no matter the length of the relationship, would not be considered an heir. Neither would close friends, stepchildren, in-laws, legally divorced spouses, foster children, or a charity. This is one reason why it’s so important to make sure you have a legal last will and testament if you wish to leave your estate to someone who is not considered a legal heir. Who is a beneficiary?A beneficiary is a someone named in a decedent’s will, trust, life insurance policy, and/or financial account who has been selected to receive the assets. A beneficiary need not be an heir: a friend, a long-term partner, a stepchild, or a charity can be a beneficiary. Even a pet can be a beneficiary! And while heirs can be beneficiaries, it’s not always a given they’ll inherit. Take, for examples, parents who leave the bulk of their estates to romantic partners instead of their living children or grandparents who cut wayward grandchildren out their wills. To make matters more interesting: while a last will and testament provides direction for how the decedent wants their assets distributed, it doesn’t necessarily determine who will inherit the assets because they’re often passed on through a beneficiary designation at a credit union, bank, insurance company, or other financial institution. For example, a will may direct financial accounts to be divided evenly between two children, but if all beneficiary designations for all these accounts are in the decedent’s ex-spouse’s name, that ex-spouse is entitled to the assets. The children won’t get anything, unless there are accounts in the estate with no beneficiary designations; then the children would be entitled to those assets. There are many reasons that go beyond inheritance why having a last will and testament in place is a good idea. But if you’d rather give your assets to someone other than your heirs, check all your financial accounts to ensure you’ve made your beneficiary designations and then make an appointment with an estate or family law attorney in Heber Utah to iron out all of your last wishes. Considerations for Telling Your Heirs About Your Estate PlanOne of the most important aspects to consider when telling your heirs about your estate plan is making sure they know exactly what your estate planning designations are. This promotes an open dialogue and invites communication about your wishes. This conversation allows you to explain why you have made certain decisions, gives your heirs the opportunity to ask questions and ultimately helps prevent the possibility of disputes arising in the future from upset beneficiaries. In case a major life event occurs (i.e. you passing away or becoming incapacitated), your heirs will know how to plan accordingly as to what they will receive. To go along with this, we recommend updating your estate plan every 3 to 5 years or whenever a major life event occurs to ensure all changes are documented accordingly. Your heirs should be notified when changes are made if those changes will affect them. Know the Difference Between an Estate Plan, a Will, and a TrustWhen telling your loved ones about your estate plan, it is important that each of you understand the difference between an estate plan, a will, and a trust. All these are important aspects of the estate planning process. The estate plan includes all of the documents that specify what happens to your assets after you pass away or are otherwise unable to care for yourself. This typically includes a will and/or trust, a power of attorney, an Advance Medical Directive, and more. A will is a legal document that takes effect after you pass away. A will identifies the assets each of your beneficiaries will receive from your estate after you pass away and your debts have been paid. 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
Criminal Defense Attorney West Valley City Utah Which Visitation Schedule Is Right? Can An Attorney Stop Foreclosure? Is Private Placement Debt or Equity? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Estate Planning Attorney Heber Utah first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/estate-planning-attorney-heber-utah/ As the name suggests, a “private placement” is a private alternative to issuing, or selling, a publicly offered security as a means for raising capital. In a private placement, both the offering and sale of debt or equity securities is made between a business, or issuer, and a select number of investors. There may be as few as one investor for any issue. The three most important features that would classify a securities issue as a private placement are: • The securities are not publicly offered • The securities are not required to be registered with the SEC • The investors are limited in number and must be “accredited”* Companies, both public and private, issue in the private placement market for a variety of reasons, including a desire to access long-term, fixed-rate capital, diversify financing sources, and add additional financing capacity beyond existing investors (banks, private equity, etc.) or, in the case of privately held businesses, to maintain confidentiality. Since private placements are offered only to a limited pool of accredited investors, they are exempt from registering with the Securities and Exchange Commission (SEC). This affords the issuer the opportunity to avoid certain costs associated with a public offering as well as allows for more flexibility regarding structure and terms. “One of the key advantages of a private placement is its flexibility.” The most common type of private placement is long-term, fixed-rate senior debt, but there is an endless array of structuring alternatives. One of the key advantages of a private placement is its flexibility. Private placement debt securities are similar to bonds or bank loans and can either be secured, meaning they are backed by collateral, or unsecured, where collateral is not required. In addition to senior debt, other types of private placement debt issuances include: • Subordinated Debt • Term Loans • Revolving Loans • Asset Backed Loans • Leases • Shelf Issues Traditionally, middle-market companies have issued debt in the private placement market through two primary channels: • Directly with a private placement investor, such as a large insurance company or other institutional investor • Through an agent (most often an investment bank) on a best efforts basis who solicits bids from several potential investors – this is typically for larger transactions: $100MM+ A private placement issuance is a way for institutional investors to lend to companies in a similar fashion as banks, with a “buy-and-hold” approach, and with no required trading or public disclosures. Historically, insurance companies refer to investments as purchasing “notes,” while banks make “loans.” Private Placement AdvantagesPrivate placements present the following advantages: • Long Term: Private placements provide longer maturities than typical bank financing, at a fixed-interest rate. This is ideal for when a business is presented with a growth opportunity where they wouldn’t see the return on their investment right away; a business would have more time to pay back the private placement while having certainty of financing cost over the life of that investment. Also, private placements are typically “buy-and-hold,” so the company would benefit from having a long-term relationship with the same investor throughout the life of the financing. • Speed in Execution: The growth and maturity of the private placement market has led to improved standardization of documentation, visibility of pricing and terms, increased capacity for financings as well as overall increase of size and depth of the market ($10MM – $1B+). Thus, the private placement market fosters an environment that allows for quick execution of an investment, generally within 6-8 weeks (for the first transaction. Follow-on financings can be executed within a shorter time frame). Additionally, it is typically faster to issue a private placement versus a corporate bond in the public market because the issuer is not required to expend time and resources creating a prospectus and registering with the SEC. “Private Placements can complement existing bank debt versus compete with it.” • Complement to Existing Financing: Private placements also help diversify a company’s sources of capital and capital structure. Since the terms can be customized, private placements can complement existing bank debt versus compete with it, and can allow a company to better manage its debt obligations. Diversification of funding sources is particularly important during market cycles when bank liquidity may be tight. Private placements enable privately-held, middle-market companies and public companies to access capital just as they would with an underwritten public debt offering, but without certain requirements, such as ratings, registrations, or minimum size. And for public companies, private placements can offer superior execution relative to the public bond market for small issuance sizes as well as greater structural flexibility. • Privacy and Control: Private placement transactions are negotiated confidentially. Also, public disclosure requirements are limited, compared to those found in the public market. Companies would not be beholden to public shareholders. UsesLong-term capital is congruent with a company’s long-term investments. Thus, capital raised from issuing a private placement is most commonly used to support long-term initiatives versus short-term needs, such as working capital. Companies, both public and private, use the capital raised from private placements in the following ways: • Debt refinancing • Debt diversification • Expansion/Growth capital • Acquisitions • Stock buyback/Recapitalization • Taking a public company private • Employee Stock Ownership Plan (ESOP) Pricing and Payment StructurePrivate placement debt is predominantly a fixed-income note that pays a set coupon, on a negotiated schedule. Private placements are priced similarly to public securities, where pricing is determined by the U.S. Treasury rate, with the addition of a credit risk premium. Repayment of the principal can be accomplished in several ways, depending on the credit quality and needs of the issuer, such as sinking fund payments (amortization) or “bullets” as well as tailored/bespoke amortization. Interest is typically paid quarterly or semi-annually. A private placement allows for tailored terms and structures to meet the specific financing needs of the issuer. Selecting a Private Placement InvestorThere are important considerations for a company when determining whether to issue a private placement. When choosing a private placement investor or lender, some key characteristics to look for are: • They are relationship-oriented rather than transaction-orientated. It’s important that they show interest in the businesses they finance as well as work to understand the needs of the business and how it functions. • Because private placement debt is typically long-term, it is vital for the private placement investor to have the capacity to grow as a financial partner and have the knowledge and experience to help a company navigate during challenging times. • They are fast-acting, responsive and have access to key decision-makers within their organization. • The private placement investor demonstrates a constant appetite for private placement debt throughout market cycles and the calendar year. • They follow through on their commitments. Private EquityPrivate equity generally involves the formation of an investment fund in which the capital of multiple investors is combined. The private equity firm then proceeds to make investments in individual assets or through buying out entire companies, which could include publicly-traded companies that are converted to the private sector. Much of the time, the businesses that private equity firms invest in are distressed, or financially troubled, and yet private equity is known for adding debt to its target companies to perform takeovers. The private equity firm seeks to improve the business and eventually sell those assets in some manner for a profit. Evaluating Potential RisksA primary risk in a private placement is the potential lack of liquidity in shares. If private placement investors want to sell their shares for cash sooner than planned, there’s no guarantee that there will be a buyer. In the public markets, investors have the support of market specialists matching buyers with sellers. A lack of liquidity is a risk that investors in private equity funds face because it usually takes several years before profits materialize. Debt Vs EquityDebt financings are the most common type of private placement, and they come in almost as many shapes and sizes as there are borrowers. At one end of the scale are fairly simple deals put together by small firms which finds itself handling many debt financings – some as small as $500,000 – that Texas banks once handled for local companies. Restructuring all the debt makes it a fix rather than a patch.” A more typical transaction for small and medium-sized businesses is mezzanine financing, so called because it is part debt and part equity. A typical mezzanine deal combines subordinated debt plus some sort of equity, which may be warrants to buy stock at a certain price sometime in the future, or debt that is convertible to equity at some future date. Such combinations are popular with large investors because subordinated debt pays high interest, and the equity component offers the prospect of capital appreciation. “You get more risk, you’re farther down in the capital structure, you have a subordinated claim on a company, and in exchange for that, you get a higher return.” Despite investor demand for high returns, going into debt is still less expensive than selling equity and sharing profits. The advantages of equity are that there is no interest and the principal does not have to be paid back. The features that make a common stock offering attractive to companies make it unattractive to investors looking for high returns, so mezzanine financings with some equity involved are likely to include preferred rather than common stock. One of the most important things an investment banker or private placement adviser does for a client is help make the decision about debt vs. equity. This is a crucial part of structuring any deal and is not something a company is expected to figure out. What a company does have to do for itself is prepare a business plan. This is the first thing an adviser wants to see. “You need to see the business’s financial history and the financial forecast, and then you want to understand what business they’re in.” “Once you have that, you can make an assessment as to what the prospects are of raising different kinds of money in private markets.” Structuring the deal includes deciding how much of the money should be debt, how much should be equity, what type and on what terms. “Once the structure is established, we work out a ‘term sheet.” “This specifies what the terms should be for the interest rate, the payback period, final maturity, equity, warrants if appropriate, and so forth.” Using the information in the term sheet and the business plan, supplemented by “due diligence” personally investigating and verifying of the company’s data the adviser draws up a formal private placement memorandum to present to selected financial institutions or investment funds to see who is interested. “That institution then does its own due diligence, confirming the information in the memorandum, visiting the company’s physical facilities and getting a feeling for the management people.” If all goes well, the adviser gets a formal commitment from the financial institution, the deal goes to the lawyers and then to closing, and finally the company gets a check. Each step in this process may take a month or more, starting with preparing a business plan. How Much Can You Get?Cash flow is the most important consideration in determining how much debt a company can carry. “Obviously, if the cash flow available for debt service is less than what the debt service requires that’s not a good sign. Then you’ve got to liquidate the company to pay off debt, and that is not something you want to do. You want that ratio to be greater than one to one. It sounds like a silly statement, but a lot of people lose sight of these basic and important things.” A private placement is not a remedy for businesses with bad financials. It can be an alternative to a bank loan, or a supplement to bank loans, but not a replacement for loans no bank will make. With a small company, investors get worried if cash flow falls below two times or gets close to one-and-a-half times the firm’s fixed interest payments. The type of business and the stability of its revenues are also important in determining how much debt to carry. Once assets are pledged as collateral, cash flow becomes even more important What It CostsWhen it comes to a private placement, everything is negotiable, but the placement is also subject to what the market will bear. Debt is priced off treasuries of like maturity, just like commercial bank loans. Interest rates on straight debt are based on the risk involved. Venture capital may be even more expensive. Private Placements of Debt and Equity SecuritiesIn some cases, a company’s internally generated funds and available bank debt are not adequate to finance growth and an IPO is either not feasible or not desired by the shareholders. Under these circumstances, private sources of debt and/or equity may provide the needed financing. In many cases, privately placed debt is issued to the financing source with warrants or other equity features attached. Whether the financing vehicle is straight equity or debt with attached warrants, the company will be well served by an independent valuation. If the securities are sold at too low a price, the company will incur an excessive cost of equity capital and existing shares will be diluted to a greater extent than necessary. The variables most frequently negotiated in these situations are the company’s financial projections and the appropriate discount rate or cost of capital to apply to these projections. Both of these factors are carefully weighed in a comprehensive valuation. 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 North Salt Lake Utah Criminal Defense Attorney West Valley City Utah Back Injury From A Car Accident Grandparents Rights In Utah For Custody And Visitation Can An Attorney Stop Foreclosure? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Is Private Placement Debt or Equity? first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/is-private-placement-debt-or-equity/ Can an attorney stop foreclosure? Yes, we can. Call us now. Look – If you’re behind on your mortgage payments and a foreclosure sale is looming, you might still be able to save your home. You can potentially file for bankruptcy or file a lawsuit against the foreclosing party to possibly stop the foreclosure entirely, or at least delay it. If you have a bit more time, you can apply for a loan modification or another workout option. If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy. The automatic stay will stop the foreclosure in its tracks. Once you file for bankruptcy, something called an “automatic stay” immediately goes into effect. The stay functions as an injunction prohibiting the bank from foreclosing on your home or otherwise trying to collect its debt. So, any foreclosure activity must be halted. The bank may file a motion for relief from the stay. The bank will probably attempt to have the stay lifted by filing a motion seeking permission from the court to continue with the foreclosure. Even if the bankruptcy court grants this motion and allows the foreclosure to proceed, the foreclosure will be delayed at least a month or two. This should provide you with time to explore alternatives to foreclosure with your bank. Chapter 13 Bankruptcy vs. Chapter 7 BankruptcyIf you want to keep your home, a Chapter 13 bankruptcy might help you accomplish this goal. But if you’re simply trying to buy some time by stalling the foreclosure, a Chapter 7 bankruptcy might be right for you. Benefits of a Chapter 13 BankruptcyA Chapter 13 bankruptcy can help you keep your home by restructuring your debts. You will repay debts which some in part and some in full over a period of three to five years as part of a repayment plan. You might be able to avoid foreclosure and remain in your home with this type of bankruptcy because you can repay any delinquent mortgage payments through the plan. Also, you will likely pay a fraction (or sometimes, none) of your unsecured debts during the plan period and possibly eliminate certain other debts like underwater second and third mortgages because they’re considered unsecured loans entirely when you complete your plan, freeing up money for your first mortgage. Even if you can’t complete the plan, filing for Chapter 13 bankruptcy will give you at least several months before a foreclosure can be completed. Benefits of a Chapter 7 BankruptcyIf you’re already in foreclosure, filing Chapter 7 bankruptcy isn’t usually a good way to save your home unless you can get a loan modification. But it will delay the foreclosure proceedings and provide you with time to live in the home without making payments. You can put this money towards saving up for a rental. You can also use this time to try to work with the bank to come up with a way to avoid foreclosure. And, even if you still go through a foreclosure, a Chapter 7 bankruptcy can eliminate your personal liability for the mortgage debt, which means you won’t be liable for any deficiency remaining after the foreclosure. Also, if you already filed for bankruptcy within the past year, the stay could be limited to 30 days or eliminated altogether. If your bank is using a non-judicial process to foreclose where the foreclosure is completed outside of the court system then, you might be able to delay or stop the foreclosure by filing a lawsuit against the bank to challenge the foreclosure. This tactic normally won’t work if the foreclosure is judicial because by the time of a foreclosure sale, you’ve already had your opportunity to be heard in court. To prevail, you’ll need to prove to the satisfaction of the court that the foreclosure should not take place because, for example, the foreclosing bank: • can’t prove it owns the promissory note • didn’t act in compliance with state mediation requirements • violated a state law, like a Homeowner-Bill-of-Rights law • didn’t follow all of the required steps in the foreclosure process (as determined by state law), or • made some other grievous error. Apply for a Loan ModificationWhile you can’t wait until the very last minute with this option, you might be able delay a foreclosure by applying for a loan modification, or another foreclosure avoidance option, because the bank could be restricted from dual tracking. Dual tracking is when the bank proceeds with the foreclosure while a loss mitigation application is pending. Ultimately, if your modification application is approved, the foreclosure will be permanently stopped so long as you keep up with the modified payments. Federal Rules Restrict Dual TrackingUnder federal law, if a complete loss mitigation application is received more than 37 days before a foreclosure sale, the servicer may not move for a foreclosure judgment or order of sale, or conduct a foreclosure sale, until: • the servicer informs the borrower that the borrower is not eligible for any loss mitigation option (and any appeal has been exhausted) • the borrower rejects all loss mitigation offers, or • the borrower fails to comply with the terms of a loss mitigation option such as a trial modification. Be aware that the servicer generally doesn’t have to review more than one loss mitigation application from you. But if you bring the loan current after submitting an application, the servicer must consider it. • Sometimes, homeowners aren’t able to afford the fees that an attorney would charge to represent them during a foreclosure. If you’re facing a foreclosure, but don’t have money available to hire a lawyer to work with you throughout the process, you might want to consider: dealing with the foreclosure on your own without an attorney • paying for just one consultation with a lawyer, or • getting assistance from a free legal aid society or a foreclosure prevention clinic in your area. How Much Will a Foreclosure Lawyer Charge?Most foreclosure attorneys structure their fee agreements by charging an hourly rate, collecting a flat fee, or charging a monthly rate. The amount you’ll pay in total could range from several hundred dollars to several thousand dollars. Exactly how much you’ll have to pay varies based on a number of factors, including the attorney’s level of experience and how much other attorneys in the area charge. Here are a few alternatives if you can’t afford to hire a lawyer to assist you throughout a foreclosure. Deal With the Foreclosure without a LawyerIf you don’t want to fight the foreclosure, you can probably deal with it on your own. You should educate yourself about what steps are involved, how long a foreclosure typically takes in your state, and exactly when you’ll have to move out of your home. You can apply for a mortgage modification during foreclosure without an attorney. You probably don’t need an attorney to help you apply for a mortgage modification. A modification is a permanent change to the loan terms, such as an interest rate reduction, to make the monthly payments more affordable. If you apply for a modification, you might be able to work out an agreement that will allow you to keep the home. Even if you can’t work out a deal, applying for a modification will buy you some time to stay in the home before the lender completes the foreclosure. Generally, under federal law (and some state laws), a foreclosure must stop while the servicer evaluates your application. Furthermore, you should seriously consider hiring a foreclosure attorney if you think you have a valid defense to the foreclosure. In most cases, you’ll have to raise the defense in court, either by filing your own lawsuit (if the foreclosure is non-judicial) or responding to the lender’s lawsuit (if the foreclosure is judicial), which can be complicated. This means that it is usually better to hire an attorney than to go it alone if you want to successfully save your home. Repayment PlanSometimes lenders will agree to set up a repayment play through which you can make up your unpaid amounts over a longer term. This is a less common resolution, but is something that some lenders and mortgage servicers offer. Partial Claim / Advance ClaimA partial claim is a tool used for FHA-insured loans in which the borrower receives a second loan (typically interest free) that enables them to become current on the primary mortgage. If you have a conventional loan, your lender may utilize an advance claim, which is similar. However, these workarounds are difficult to qualify for, and thus rarely are a viable option. Your foreclosure defense lawyer can help you determine if you are eligible for this option. Debt ForgivenessOccasionally, but not often, a lender will agree and waive a payment to get you current on your loan. The term that applies to this action is debt forgiveness. Typically, any debt forgiveness comes after you have established a positive payment history on a loan modification. However, any debt forgiveness is usually at the discretion of your lender, so make sure you review any fine print related to any forgiveness claims. RefinancingIf you have sufficient equity in your home, the lender may agree to refinancing that increases the balance of your loan to cover back payments and re-amortize the loan over the payback period. Or, depending on the delinquency, you may be surprised to find out that you can refinance the loan with a third party. Deed In Lieu Of ForeclosureIn some cases, you may be able to deed your home to the lender to satisfy your mortgage obligation. You should only take this action directly with your lender or servicing company. Do not ever deed your property to any other company or individual. A deed in lieu of foreclosure may have tax implications that a foreclosure defense lawyer can help you consider. Sell Your HomeSelling your home on your own may be a way to resolve mortgage problems. If your home is worth less than the amount you owe on the loan, the sale might be a short sale (selling the property for less than it’s worth), which requires approval of the lender. Cost of Foreclosure DefenseFor most facing foreclosure either now or in the future, something has changed in their lives that is already causing more than enough stress without any help from the looming loss of their home. Many find that their change in circumstances leaves them unable to make monthly mortgage payments, and they face foreclosure simply because they don’t know what they need to do or how to go about it. When you interview lawyers to help keep your home, you might feel lost. The cost of foreclosure defense will vary somewhat depending on the solution you choose and how your lawyer charges for their foreclosure defense services. The first step to understanding what foreclosure defense is going to cost is to know what kind of defense you’re looking for. While one method may cost more than another when speaking in dollars and cents, “cheaper” methods may only seek to extend the foreclosure process rather than completely halt it. The cost of foreclosure defense comes down to three basic three types of payment methods employed by foreclosure defense law firms that will determine your cost of foreclosure defense: • Hourly – Some attorneys will charge hourly for their services which can add up quickly. • Monthly – Often times the best choice is a monthly payment which allows for lower costs overall. • Flat-Rate – Given that foreclosure can take up to two years, this can be the cheapest solution, though few still offer it. Some homeowners believe they were harried through the mortgage process or were unjustly foreclosed upon. These homeowners will often choose to hire an attorney to sue their lender. Before accepting a client, these attorneys carry out an extensive forensic evaluation where they search for incorrect paperwork, evidence of exploitation, and other irregularities that may have proven disadvantageous to the homeowner. If the attorney is able to find enough improprieties to build a case with, then he or she will accept the homeowner as a client and file a lawsuit against that homeowner’s lender. Hiring this type of foreclosure defense is often the most costly method of fighting foreclosure, and requires a significant investment. A foreclosure lawyer with hourly rates often charges an initial retainer fee of around $5,000 and charge a minimum of about $300 to $350 per hour. Filing Answers and Affirmative defenses can take more than 4 hours, and the cost would be half of your retainer. The entire legal process usually takes a year or more, and can included mediation, multiple hearings and sometimes stopping foreclosure sale dates. When paying a foreclosure defense lawyer hourly, the cost of foreclosure defense can range from $8,000-$15,000 or more. Even with this kind of investment, it’s not guaranteed that a homeowner will win their case and be able to stay in their home. Some foreclosure defense law firms charge a flat fee of $3,000 to $4,000, which must be paid when the firm is hired. A flat fee for foreclosure defense can give homeowners a feeling of security, because they have paid their lawyer and have no further financial obligation until they have a mortgage to pay again. Depending on the current state of your foreclosure defense, there may be 3 months left in your case, or there might be 2 years left in your case. Many homeowners who have fallen on financial hardship are unable to afford a $4,000 payment all at once. It is important that you fully understand your attorney-client retainer agreement and it is clear what foreclosure defense services your attorney will provide you. Most responsible homeowners will hire an attorney that charges monthly fees. One of the benefits to paying your attorney a monthly fee is that you have confidence that you know what your attorney’s costs are. The amount you pay will never fluctuate. A homeowner is able to budget this payment each month until they are able to pay their mortgage again. Foreclosure defense lawyers that charge a monthly fee will charge $400 to $1,000 per month. Be cautioned though, because an attorney must be able to show that they are providing you services and prove that their fees are reasonable. Homeowners paying monthly fees to their foreclosure defense attorneys also feel more in control because they are often more involved in the foreclosure defense process because they are more empowered to release their attorney at any time without risking their investment. 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
File Your Claim Before The Statute Of Limitations Expires Estate Planning Attorney North Salt Lake Utah Criminal Defense Attorney West Valley City Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Can An Attorney Stop Foreclosure? first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/can-an-attorney-stop-foreclosure/ If you have been charged with a crime, whether a misdemeanor or a felony, it is very important that you work with a criminal defense attorney in West Valley City Utah throughout the entire process. Whether or not you think that the situation is serious, there may be a lot more at risk than is immediately apparent, and you could find yourself looking back on this case year from now wishing that you had taken some different steps. When hiring a defense lawyer, it is important to find the right one to handle your specific case. However, many wonder what a defense lawyer generally does for their clients. First of all, before choosing a lawyer, it is important to make sure they are licensed to practice law in that specific state. Most lawyers specialize in a certain area of law and it is best to choose one that specializes in the practice area in which you require defense. When an attorney has specialized in a specific area of law for the majority of their time in practice, this typically signifies that they have a lot of experience relating to that subject. Their job is to represent their clients in court proceedings and they are supposed to do what they possibly can to get their clients the best outcome. It may not always work in their client’s favor, but attorneys are bound by a code of ethics under licensing laws and must provide their clients with fair and honest representation that works in the best interest of their clients. Advantages and Disadvantages of Accepting a Plea BargainThe prosecutor and the judge may prefer to dispose of cases through a plea bargain because doing so helps to manage caseloads and reduce the number of cases that require a full trial. This helps to decrease the expense that the state will pay for this portion of the criminal justice system. Criminal defendants may gain certain advantages by accepting a plea bargain. However, they must also be aware of the disadvantages. Advantages• Lighter Sentence: Many criminal defendants accept a plea bargain agreement because the prosecutor offers a lighter sentence for a crime. This may result in significantly less time behind bars in the event that the individual was convicted of the crime after a full trial. • Reduced Charge: A criminal defendant may receive a reduced charge in exchange for accepting the plea deal. In some cases, this may result in the defendant pleading guilty to a misdemeanor instead of a felony. In other cases, the defendant may plead to a crime of a different class or degree. This reduced charge may result in different consequences. For example, a person may be eligible for certain jobs or to have their criminal record expunged under certain convictions than others. • Cost Savings: Criminal defendants who hire a private attorney will likely have to pay much more to have an attorney represent them through the entire trial. Accepting a plea agreement can help a criminal defendant dispose of the case more quickly to avoid the time and expense of a trial. • The Case Is Over: After you accept a plea agreement and appear before the court to plead, your case is virtually over. If you have been in jail because you were unable to bond out, you may be released if you have no jail time to serve or have a suspended sentence. It also helps remove the uncertainty of going to trial and not knowing what the outcome will be. This allows you to deal with the consequences now, rather than worry about them while your case is still pending. DisadvantagesBefore accepting a plea agreement, a criminal defendant should discuss the disadvantages of this decision with a criminal defense lawyer. Here are a few such potential disadvantages: • Avoiding Problems with Prosecution’s Case: Sometimes when a prosecutor offers a plea agreement, it is because he or she realizes that there are certain problems with the state’s case. For example, there may not be credible witnesses, forensic evidence may not be convincing or the defendant may appear sympathetic. By accepting a plea agreement, you may be accepting a conviction that the prosecution may not have been able to otherwise acquire based on its own case. • No “Not Guilty” Result: When a criminal defendant hears “not guilty,” he or she may feel a sense of vindication. In most cases, when a criminal defendant accepts a plea agreement, he or she agrees to plead guilty of a crime. In some cases the individual makes this decision because he or she was actually guilty of the crime, but in other cases, the individual makes the decision because he or she fears being found guilty and the likely consequences of that conviction. Once an individual pleads guilty, he or she cannot later go back and tell employers or others that he or she didn’t commit the crime because the conviction says otherwise. • Possibility of Coercion: Even if a criminal defendant has legal representation, he or she may feel tremendous pressure to accept a plea agreement. The prosecution may emphasize the maximum punishment possible. In such a manner, the prosecution may make innocent individuals accept a plea bargain. • Non-Binding on Court: Even if you reach an agreement with the prosecutor, the court is not bound to accept this agreement. The court must approve any such agreement. It will ask you whether you understand the terms of the agreement, the charges, and your waiver of certain rights and the consequences of a plea agreement. Alibi Defense in West Valley City, UtahAn alibi defense is a defense based on information that a defendant was not at the scene of the crime when the crime occurred, that he was somewhere else and could not be the person who committed the crime. The defense can have witnesses testify and present evidence at trial to support an alibi defense. If an alibi defense is based on witness testimony, the credibility of the witness can strengthen or weaken the defense dramatically. The jury or the judge deciding whether the defendant is guilty needs to believe and trust the witness who is testifying that the defendant was not at the scene of the crime. The defendant’s friends and family members can testify about an alibi but the jury or judge may wonder if these people would lie for the defendant or not want to believe that he could be a criminal. If Bill (the accused drug dealer) was home with his girlfriend, visiting his mother, or out drinking with his friends, these witnesses can testify but there always is a concern that the jury might question their credibility because they are friends or family. This could weaken the alibi defense although it does not mean the defense should abandon it. A witness who does not know or is not close to the defendant can strengthen an alibi defense. If the waitress at the restaurant had never met Sally before that night, the jury probably will see her as having no reason to lie for Sally and rely on her testimony more comfortably. Testimony from more than one person about a defendant’s alibi also can strengthen an alibi defense. If three co-workers who have known Bill for different lengths of time can testify that he was at the construction site, the defense is stronger than one based on testimony from only one co-worker. Video footage, photos, swipe card records, and phone or GPS records can be the strongest alibi evidence, because this evidence usually does not depend on a witness being reliable or believable. We tend to think that this type of evidence is more objective – that, for instance, “the camera doesn’t lie.” However, having this evidence does not automatically mean the prosecutor will dismiss the charges or the defendant will be found not guilty at trial. The prosecutor may question the accuracy of records or the date stamp on a video and try to present evidence or argue that the alibi is not airtight. The fact that a defendant presents an alibi defense does not change the requirement that the prosecutor prove guilt beyond a reasonable doubt. The defense also does not have to provide the alibi beyond a reasonable doubt. If the jury or judge does not believe the alibi defense, the prosecution still must prove all elements of the crime beyond a reasonable doubt. In addition to proving that the defendant was at the scene of the crime, the evidence in the case must prove all other elements of the crime beyond a reasonable doubt that the defendant actually committed a criminal act. If the jury is not convinced of Bill’s alibi, the jury cannot and is not required to stop there and convict Bill. The jury still must consider whether the prosecution has proved that Bill had illegal drugs in his possession and that he exchanged the drugs with the minors for money. How to Raise an Alibi DefenseMost states require that a defendant inform the prosecution before trial of an alibi defense within a certain time period. If the defense ignores this requirement, the defendant may not be allowed to present the defense at trial. In any criminal trial proceeding, the defense must provide the prosecution with a list of witnesses who may testify at trial and a list of or copies of physical evidence the defense may present. The prosecution is entitled to interview the defense witnesses before trial and inspect the physical evidence if a copy cannot be provided. If the defendant has an alibi, he usually must give the prosecutor separate, additional notice of the defense, explaining where he was at the time of the crime and what witnesses or evidence he will present to support the alibi. If you are charged with a crime and believe you have an alibi, contact an attorney in West Valley City, Utah immediately. An attorney can investigate this potential defense and help you comply with any procedural requirements or deadlines for alibis in the court where you case was filed. Advantages and Disadvantages of Pro Se Representation in a Criminal MatterAfter being charged with a crime, a defendant will have several court proceedings they need to participate in to resolve the matter. The first thing a defendant should determine is their court representation strategy. Will they hire a private attorney, ask for a public defender, or represent themselves? If a criminal defendant chooses to represent themselves in court, this is referred to a pro se representation. Instead of relying on a lawyer for representation and legal advice, a pro se defendant researches and argues their own case in front of the judge and the jury. However, most lawyers and judges would agree that pro se representation is not always the best decision for a defendant facing criminal charges. This is because most people lack the skill and experience to put up the best defense. Many times when a defendant has self-representation, they will be convicted when a lawyer could help them get a not guilty verdict or a better deal. On the other hand, the right to pro se representation is guaranteed by the West Valley Constitution. So, if the defendant chooses to represent themselves in a criminal trial, the court must honor that decision. If a defendant chooses to represent themselves, they will need to take the following steps: • Tell the court that they wish to proceed with pro se representation; • Establish competency to stand trial (criminal defendants that lack competency cannot represent themselves pro se); • File the appropriate court paperwork; and • Meet all court deadlines and case requirements. Keep in mind that these requirements may vary between states and particular courts. Additionally, some judges may allow or require a pro se defendant to work with a “standby attorney”. This provides a pro se defendant with a lawyer who is there to help if they need one to step in during a proceeding to help with procedure or arguments. Many judges prefer this type of representation because it allows a defendant to assert their right to be pro se while still having traditional representation available if things get out of hand. Advantages of Pro Se RepresentationWhile the disadvantages to pro se representation carry more weight in most instances, there may be some advantages depending on the defendant’s situation. These may include: • Familiarity: The majority of criminal defendants who choose to go pro se base their decision on a lack of trust in the judicial system. The defendants may believe that they know their cases best and are therefore in the best position to provide the greatest defense; • Lower costs: Another common reason a defendant might choose pro se representation is the cost involved in hiring an attorney. If the defendant does not want the pro bono attorney, they will have to spare significant expense to hire a private attorney. However, even though pro se representation saves money it also provides a lesser chance of winning the case in most instances; • Strategy Decisions: Having pro se representation means that the defendant solely calls the shots in their defense. This eliminates strategy disagreements between an attorney and client and the defendant feeling pressured to proceed with their case in a certain way. However, pro se defendants will still need to learn and follow the court’s rules; and • Legal Experience: If the defendant is an attorney or has work experience in a legal setting, they may already be familiar with the judicial system and equipped with the tools needed to effectively argue their case. Disadvantages of Pro Se RepresentationOverall, pro se defendants have a lesser chance of winning their case than if they were represented by an attorney. Before making a representation decision, criminal defendants should consider the following disadvantages of proceeding in a pro se fashion: • Lack of Training and Knowledge: Perhaps the greatest disadvantage of pro se representation is that most defendants are not adequately trained in the law to represent themselves. Most criminal defendants have not gone to law school or received any legal training. As such, they will lack the knowledge of how to argue a case and be unfamiliar with common criminal procedure requirements that courts impose; • Inferior Argument Skills: Although a defendant might have some knowledge of the law, knowledge alone is not enough to win a case and persuade the judge or jury that they are not guilty. Again, the average person will usually find it difficult to argue if they lack training in communication and argumentation skills. Language barriers can further complicate these situations; • Bias: Pro se defendants will generally have inherent bias because they cannot look at the case from the other party’s position. On the other hand, lawyers are trained to think this way in order to determine the best case strategy and arguments. Even defendants who are attorneys or have legal experience may have trouble getting rid of their bias when they are representing themselves; and • Delays: Since many pro se defendants are unfamiliar with court/case rules and procedures, this may cause delays with case resolution. It can also result in sanctions against the defendant. Criminal Defense LawyersAttorneys that specialize in criminal defense are often self-employed or work for private firms, but can also work for organizations and government agencies. Once a lawyer is hired and retained, they will gather all pertinent details regarding your case and will work on building a strong defense strategy. Their defense strategy should challenge every aspect of the prosecution’s case in order to do what they can to get their client the best final outcome possible under the circumstances, which obviously vary from case to case. There are many different types of cases that criminal defense lawyers can take on such as assault charges, theft and fraud charges, white collar crimes defense, and DUIs. Civil Litigation Defense LawyersCivil defense lawyers often work on cases where they defend people listed in a lawsuit. In these types of cases, their clients are being taken to court and sued for a sum of money. The lawyer’s job is in these types of cases is to try and prove that their clients were not liable for the claimed damages. This area of defense covers many different types of cases. For example, divorce law, personal injury law, and mass torts. Public Defense LawyersLawyers working as public defenders usually work for government agencies and can be specifically appointed to one office like for a county defender’s office. They are retained by these agencies to provide those who cannot afford legal counsel, the right to legal counsel and defense. Juvenile Defense LawyersJuvenile defense lawyers defend people aged between 10 and 17 since they cannot be tried as adults, even if the crimes committed are the same as adult crimes. Sentences and penalties are much different for juveniles and this area of defense law is quite unique because in most cases, defense lawyers who specialize in this area of law are tasked with trying to find rehabilitative solutions for their young clients and hopefully help them avoid incarceration. Defending yourself against a criminal charge is no easy matter. You must understand the elements of the crime that you have been charged with and see what defenses you may have against the various elements. You do not need to defend against all of the elements, as it only takes a reasonable doubt by the jury for one of them. Every case is different, but here are a few of the most common defenses to a criminal charge. How Much Does It Cost to Hire a Criminal Defense Attorney?As noted above, the costs of criminal defense lawyers vary, as no criminal case is identical to another. There are several factors that can affect the overall costs of a criminal case, including: • Defendant’s Income: Your income determines whether you are eligible for a court-appointed attorney, or whether you need to hire your own attorney. Each jurisdiction may have different qualifications to determine if someone can afford to hire their own attorney. If an individual qualifies based on their income, then the court will appoint a public defender paid for by the government, as guaranteed by the Constitution; • Investigation and Experts: As mentioned above, many criminal cases have complex issues that can require investigators and/or expert witnesses. For example, a defense attorney might hire an expert in chemical testing to contest or explain the results of a BAC analysis in a DUI trial, or a psychologist if the defendant wants to claim the defense of legal insanity. Investigators and experts require on average a retainer of $2,000 and can charge over $300/hr. Thus, based on the particular circumstances of your criminal charges, there may be extra fees needed to form a stronger defense; or • Attorney’s Fees: As mentioned above, criminal defense attorneys do not all cost a fixed amount of money. Attorney’s fees will vary according to several factors. Some of the more important factors affecting an attorney’s rate include: The skill of the attorney; the experience of the attorney; the seriousness of the offense; the complexity of the legal issues in the case; the amount of time spent by the attorney in the criminal discovery process; The delegation of tasks to law clerks or paralegals; Whether the case goes to trial; and Whether the attorney charges a flat fee or by the hour. Call Ascent Law NowIf you have been charged with a criminal offense, it’s a great idea to hire West Valley City Utah criminal defense lawyers. These lawyers have enough skills and experience in dealing with criminal cases. This helps them enhance their reputation because they work to satisfy your expectations. 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
Family Attorney Salt Lake City Utah More Utah Divorce Cases May Be Caused By Cheating Wives What Is A Change Of Circumstances? Spinal Cord Slip And Fall Injuries Estate Planning Attorney North Salt Lake Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Criminal Defense Attorney West Valley City Utah first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/criminal-defense-attorney-west-valley-city-utah/ If you need an estate planning attorney in North Salt Lake Utah, please read this page. There are ways to show that the Will is the actual instrument that a deceased person made when the personal representative and estate planning attorney initially submit the document to the court. The process of submitting a Will to the court is called “probate”. Many states define testamentary writings as the actual document, other testamentary instruments, and codicils. Codicils are written changes made to the Will later in time. In the initial meeting with a personal representative, the retirement planning lawyer must determine if the Will or other estate planning documents exists. This is because; courts require that the original instruments be submitted to it before it can commence estate administration proceedings. Newspapers will often contain advertisements from lawyers or personal representatives seeking information on the location of a Will because it cannot be found. If the document is located, it should then be submitted to the Court along with a “Petition for Unsupervised Administration and Probate of Will.” There are many different kinds of legal documents with varying legal titles. Such documents will typically start with the word “Petition” and then be signed by the personal representative to verify that the Will attached to the Petition is an original and is valid. To make a legally valid Will, it must meet these requirements: 1. The person executing the Will must be over the age of eighteen (18) years 2. The person must be of sound mind 3. The Will must be in writing and signed by the person making it 4. The document must be signed in the presence of the person making it and at least two (2) witnesses Again, each state’s laws vary on the requirements of a valid Will. Every person conducting estate planning should check with their attorney before doing any serious retirement planning. This will ensure that the proper procedures are followed and that your wishes are met. Finally, if there is any doubt as to the validity of the Will, the proper procedure for a personal representative and the estate planning lawyer to take is to file the document with the court and seek a determination by the court as to the its validity. This often means a short hearing where witnesses and other evidence is presented before a judge. If the Will can be proved valid, the probate administration should continue and work smoothly. Estate planning is a difficult process. Without proper guidance from an attorney, people may lose money due to lack of planning. At a minimum, it is important to be aware of what you want done with your debts and assets upon your death. Thinking about and writing down a plan is the bare minimum. Once you have done that, making a Will should be done and you should think about the possibility of additional estate planning. Be sure to follow the proper procedure and laws in your state when making your Will. Proper Estate Planning to Avoid Lawsuits and ComplicationsGetting your Estate to Your Intended BeneficiariesDon’t put off your estate planning until it’s too late. Proper Estate Planning can prevent problems down the line that could possibly interfere with having your wishes honored. As a lesson to plan well and plan early, let’s look at the Estate of James Brown. James Brown died in 2006, leaving almost $100 million in trust to needy children. When James Brown died, however, he left nine children, three ex-wives and another lady who may or may not have been his widow. Although James’ last wishes may have been clearly stated, his wishes did not include his family. His estate been caught up in numerous court battles and, as a result, not one dime has been yet distributed to the trust he established. No sense going into further details. The lesson here is clear: do proper estate and living trust planning! This includes do your planning early, while there is no issue as to capacity and or improper influence by other persons, including family members. Estate planning documents should also be updated regularly, including after births, deaths or other family issues. How to Avoid a Lawsuit in your EstateThere are many ways to avoid lawsuits and problems in your estate. An estate lawsuit can ultimately cost your estate a whole lot of money, so taking appropriate precautions is a good idea. 1. Treat everyone equally: It is best to give each child an equal inheritance. If for some reason you choose not to do so, be sure to have a meeting with all your children and explain why one child may have gotten more. 2. Divide Personal Property Equally but Consult with the Kids First: Generally you should gift personal property equally but if you decide to gift an item of personal property to one particular child, you may do so in a personal property memorandum. It is a good idea to have a meeting with all the kids first to make sure all are in accord with your decision. Ask whether any particular child would like any particular personal property and work out the details at that time. This can avoid a lot of confusion (and litigation) later on. 3. Loans: Keep track of all loans and make sure your will or trust specifically requires payback of the loans or have the loan amount subtracted off of the inheritance. This can be done in many states by calling the loan an ‘Advancement’ or better still, simply required any loan to be subtracted from the inheritance. 4. Institutional Executor or Trustee: You might be inclined to appoint a spouse or child to be executor or trustee of you estate trust, but you fear some family infighting. If your estate can afford it, appoint a corporate executor or trustee, although expensive, there is less chance of fighting among siblings. This is an often overlooked aspect of Elder Law. 5. Of Sound Mind – Offer Proof: One common attack on a will or trust is a lack of capacity on the part of the testator or grantor (one who created the will or trust). If you aren’t of ‘sound mind’ upon signing a will or trust, it may not be valid. This can be a problem if you are disinheriting a child or doing an unequal distribution. A simple solution: consider getting an evaluation by a treating physician and a psychiatrist before signing any documents. (Note that this can backfire if the evaluation suggests a lack of capacity, however). 6. Be Clear of a Disinheritance: If you wish to disinherit a son or daughter, be sure to spell it out in your will very clearly and specifically, according to your states rules. Make clear that you are acting intentionally, but don’t specify a reason either, since that can create ammunition to challenge the disinheritance. 7. Don’t Delay: Don’t wait until your deathbed to make a will or trust. That is a formula for disaster. It can create claims of undue influence or being of unsound mind. Estate Planning Tax Advice – Why You Need It and Where to Find ItTaxes are something you have to pay all of your life, and if you do not plan ahead, they will be something your estates will be paying even after you are gone. So making sure that you get quality estate planning tax advice when you are arranging your final affairs is one way to ensure that your heirs, and not the IRS, receive the bulk of your estate. While it may be trite to observe that no two individuals are the same, it is not a cliché to say that everyone of us can benefit from estate planning tax advice, if only to learn that we will not have to worry because our estates will not be large enough that a tax is applicable. The estates of those just beginning their careers may not require a lot of estate planning tax avoidance measures, while the estates of their grandparents very well might. If you are concerned about whether or not you will need some estate planning tax help, but are not interested in paying an attorney until you are sure you will, your best option would be to find a good estate planning guide and study its it to determine if the total assets in your estate are likely to put it in the taxable category. If you find that they are, it will be worth your while to discuss with an expert the estate planning tax strategies which will let you preserve as much of your assets as possible for your heirs. These strategies can include things placing your assets into a living so that you can control them during your lifetime, and prevent them from being included in your taxable estate when you die. Having a living trust will also benefit your heirs, because it will exempt you assets from being tied up in the expensive and lengthy probate process. Getting estate planning tax advice on a continuing basis is important, because you may have to adjust your estate planning strategies as your financial situation and/or the estate tax laws change. Consulting with an estate planning tax expert as your circumstances change will ensure that your heirs are not left with any unpleasant surprises and that your final wishes will be honored as you desired. If you do follow the advice of an estate planning tax professional, make sure that you keep copies of all the estate planning documents. They will be essential in case you have the bad luck to deal with an unqualified party, and your heirs need to prove a claim of negligence. While such a scenario may be rare, estate planning tax advice is not under the oversight of any specific government authority. So the quality of advice you get will depend to a great degree on the experience of you advisor, be it an attorney, accountant, banker, or financial planner. By using an estate planning guide to familiarize yourself with your options so that you know what questions to ask, you will have a much better chance of finding a trustworthy professional to provide your estate planning tax advice. Protect Your Family With Estate PlanningEstate planning sounds like an overwhelming task that will require a lot of time, paperwork, and thinking about things no one wants to think about, when, in reality, it’s relatively straightforward and painless. Everyone, no matter their net worth, should have estate planning in place. You owe it to yourself and your loved ones. What exactly is the process?Contact an attorney to arrange a meeting time. Before you meet with an attorney, they should provide you with some guidelines to help you think about all of the different concerns there are with estate planning. Some things may not apply (i.e., you are 34 years old and don’t have grandchildren), and others are things you may never have thought of, but need to (i.e., who will take care of my kids if, God forbid, something happens to me?) It’s not a test; there are no rights or wrong answers. It’s just to get you thinking. Once you’ve had a chance to make some decisions, you’ll meet with your attorney to talk about what you are looking for from the estate planning process (Just a will? Living will? Power of Attorney? Special needs trust? Whole package?), and to see if any special planning needs to be done. Occasionally, you may need to meet again to discuss more complex issues, but for most people, that’s all you have to do until it’s time to review the estate planning documents that your attorney has prepared according to your wishes. Once you’ve carefully reviewed the documents to make sure that everything is how you want it, you’ll schedule a time with your attorney to sign everything. Will Estate Planning – Do You Have These Three Important Documents?Will estate planning should be a top priority for every American age 18 and over. Unfortunately, most people procrastinate about executing a Last Will and Testament and making arrangements in the event of their death. Some people believe estate planning is too costly, while others believe it doesn’t matter because they don’t own anything of value. Nothing could be further from the truth. Will estate planning isn’t reserved for the wealthy, nor does it have to be expensive. Forms can be downloaded for free via the Internet or purchased in office supply stores. Probate lawyers can draft legal documents for a nominal fee. There are several reasons why people should engage in will estate planning. First and foremost, estate planning can reduce turmoil for your loved ones. By executing a legal Will, decedents can designate an estate administrator and beneficiaries. Individuals who have minor children can establish guardianship within the Will. Oftentimes, people do not take into consideration what will happen to their children in the event of their death. This is of particular importance for single parents whose spouse is deceased. If guardianship is not arranged through will estate planning, children could potentially become a ward of the state. Establishing legal guardianship is one of the most important things you can do for your children. In addition to executing a Will and establishing guardianship, will estate planning should also include a Durable Power of Attorney and Healthcare Proxy. Power of Attorney (POA) is used to grant authority to someone to make decisions on your behalf should you be unable to do so. Designating Power of Attorney is an important decision which should not be taken lightly. A Healthy Proxy is used to appoint someone to make decisions about your healthcare. The person selected should be informed of any lifesaving measures you do or do not want. These include rescesitation, medical treatments and nutrition. Unless an irrevocable living trust is established, your estate must undergo the probate process. Probate is used to validate the Will and ensure your final wishes are adhered to. If you die intestate (without a Will), a judge will determine the rightful heirs based on state probate laws. The only way to guarantee your real estate, financial holdings and personal property is given to the people you want to have it is through will estate planning. Estate planning can be conducted without legal assistance. However, experts advise hiring an estate planning attorney to reduce or prevent legal problems. Estate planning and probate lawyers can be located in phone directories, via the Internet and through the American Bar Association. 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
Is Filing Bankruptcy Better Than Just Not Paying Your Creditors Back? How Investors Can Protect Themselves Family Attorney Salt Lake City Utah Reclaim Your Financial Freedom Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Estate Planning Attorney North Salt Lake Utah first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/estate-planning-attorney-north-salt-lake-utah/ If you need a Utah Business Attorney, you should call Ascent Law LLC. The law puts businesses at a serious disadvantage, particularly small companies. They are held responsible for complying with dozens of federal and state laws that can only be understood by someone with legal training, yet it’s often impossible to operate a business with the overhead it would require to consult with an attorney on a regular basis. It is far too easy for someone who is upset with your company to file a lawsuit and allege a violation of one of these laws or to complain to a government organization and trigger an inspection. Unfortunately, even if a business successfully defends itself from one of these actions, it will have to pay tens of thousands of dollars to do so. Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell any type of business. Business laws establish the rules that all businesses should follow. A savvy businessperson will be generally familiar with business laws and know when to seek the advice of a licensed attorney. Business law includes state and federal laws, as well as administrative regulations. Let’s take a look at some of the areas included under the umbrella of business law. Types of Business LawHere are some of the most common types of business law: Employment LawEspecially in today’s modern workplace, it is vital for any company with even one employee to stay abreast of current employment laws. Are you required to offer health insurance or workers’ comp insurance? Has your business discriminated against an employee, or stood by while one employee committed sexual harassment against another? There are many areas where your company could face major financial liability, not to mention the potential loss of reputation when treating employees unfairly. Immigration LawThere are more and more occasions where immigration law becomes an issue in modern businesses. Temporary employees, full-time employees, and special event workers may be from other countries. You need to know if you are following the law when dealing with foreign labor. Consumer Goods SalesThe Uniform Commercial Code contains the laws governing financial transactions in the United States. The Code deals with everything from contracts to fraud to leases to secure transactions. Ambitious in its aim to consolidate the laws in one place, the Code is actually quite complex. Lawyers spend a lot of time learning about how to apply the UCC to actual business practice and can give businesses advice on how to stay compliant with the laws while staying productive. Contract Drafting/Negotiations/LitigationWhether for a property lease or for a product sale, contracts help make sure that the parties who are making a deal are on the same page. Attorneys can help make sure your best interests are represented when your business enters into a contract. Antitrust LawAntitrust laws help make sure the different businesses in a marketplace are operating on a level playing field. Some companies use unfair or deceptive practices in order to get a larger share of the market, and it may be difficult to identify unfair behavior in your own company. A business attorney can help you make sure that your business is operating ethically while helping protect you from unfair actions by other companies. Intellectual PropertyBusinesses may need to patent unique products in order to protect that work in the marketplace. Otherwise, anyone could sell a product your company worked hard to make. Copyright laws will protect creative work, and you will need to file for protection if your business is identified by a unique logo. TaxesIncome taxes for the profits of the company, which may be paid as personal income taxes for sole proprietorships or single-person LLCs or through a partnership business tax return. Partners earning profit from a business must report that income personally, too. Sales tax on services and/or products. Also property tax on any real estate owned by your business. You may end up paying capital gains tax if you sell a business-owned property. Self-employment taxes, so that business owners will still pay into Social Security and Medicare. Normally employers take those taxes out of their employees’ paychecks. Employment or payroll taxes, including FICA taxes for Social Security and Medicare and workers’ compensation taxes. Dividend taxes on corporate shareholders. This is a kind of income tax based on the profits received from the business. BankruptcySometimes businesses are forced into a bad situation because of circumstances beyond their control. There are several kinds of options, with different requirements and filings. Business lawyers can help find the best solution to what seems an impossible problem and will have experience with the advantages and disadvantages of each option. Some Examples of Business Law in practice. Here are just a few examples of how attorneys can help your business: Business FormationBusiness law attorneys can give you advice when you are starting your company as to how to form and register your company. You will need to choose your business structure and decide how and where your business will operate. Your attorney will help make sure your business is protected from the beginning. ContractsUnless you have some experience with legal terminology, you may not understand all the complicated terms in a contract. Sometimes parties will try to take advantage of you by inserting clauses which are against your best interest or even changing the terms of the contract. Your attorney will make sure your rights and interests are protected. LawsuitsMany businesses don’t think to get an attorney involved until there is a lawsuit, but having an attorney assist with how your business operates can help you avoid many lawsuits. Sometimes a lawsuit is inevitable, and your attorney will work to mitigate the damage to your business. You may want to negotiate a settlement or go to trial and deny liability entirely, and your attorney will help you get through the complicated process of trial litigation. Importance of Business LawBusiness law plays a vital role in regulating business practices in a country. Here are some points that prove why business law is so relevant: Compensation Issues – Business law is essential to handle various compensation issues in an organization. A professional business attorney can help companies in settling issues related to compensation and salary management. It is the responsibility of the attorney to ensure that his or her client does not violate compensation and benefits laws at any cost. The consequences can be fatal in case of any discrepancies. Safeguard the Rights of Shareholders – Business law plays a vital role when it comes to safeguarding the rights of a company’s shareholders. An experienced business law attorney can successfully handle such issues along with conflicts related to minority shareholders, constitutional documents, and resolution by arbitration, and more. Business Formation – Business law plays the role of a foundation stone for any business concern. Establishing business includes a lot of legal processes, leasing, and permits. A business law attorney is well-versed with all the relevant regulations, and can help the concern establish its operations successfully. What are the Functions of Business Law?Every business concern, either large-scale or small-scale, is bound to comply with their respective legal regulations. Here are some significant functions of business law that can help you in understanding it better. Business law entails the taxation system for different types of businesses. Starting a BusinessMuch of business law addresses the different types of business organizations. There are laws regarding how to properly form and run each type. This includes laws about entities such as corporations, partnerships and limited liability companies. For example, let’s say I decide to start my own pet grooming business. I need to decide what type of business I want to be. Will this be a partnership? Will it be a sole proprietorship? What papers do I need to file in order to start this business? These questions fall under the laws that govern business entities, which are state laws. The type of entity I pick will also affect how I pay my federal income taxes. These, of course, are federal laws. Next, what will my business be called? Let’s say I decide on Marks & Marbles as a name for my dog grooming company. Now I need to know if anyone else already has that name. This is a trademark question. Patents, copyrights and trademarks are part of intellectual property law. The federal law governs most intellectual property law. Then I need to know if I’ll require any special type of license for this business. Do groomers need a license? Am I allowed to have animals on my property, or do I need some sort of special permit? I’ll need to check my local and state laws to find out. How will I advertise my business? Am I allowed to say that I’m the ‘best in town?’ This question falls under consumer protection law, which can be federal or state law. Wow. That’s a lot of business law, and I’m not even open for business yet! Buying a BusinessNow let’s say I decide to buy a business instead. I’m going to buy Patty’s Pampered Pooches from my Aunt Patty. There are many business laws that govern how to buy a business. If I buy Patty’s business, do I now own the actual store? This is a real estate law question. Do I own the pet grooming equipment in the store? This is a property law question. Both of these fall under state law. Am I now the boss of Patty’s employees? This is an employment law question. Can I start hiring my own employees and ordering supplies? This will involve contract law, since I’ll be making new agreements with people regarding my business and determining which of Patty’s agreements I need to uphold. Contracts are legally binding agreements made by two or more persons, enforceable by the courts. Businesses are involved in many different types of contracts, and as a result, there are many interesting cases involving breach of contract. A breach of contract is when one party doesn’t hold up his or her end of the bargain. It’s common for parties to dispute the terms of a business agreement or disagree on how the agreement should be performed. For instance, consider the famous case of Locke v. Warner Bros., Inc. Sondra Locke was a longtime girlfriend of Clint Eastwood. When the two broke up, Locke sued Eastwood for support. As a part of their settlement, Eastwood negotiated a contract for Locke with Warner Bros. Locke was given a director’s contract, where Warner Bros. would pay Locke for any projects she directed or produced. Locke proposed more than 30 projects, but Warner Bros. never hired her. She sued Warner Bros. for breach of contract, saying that Warner Bros. never intended to hire her in the first place. After a court ruled that Locke had enough evidence to proceed with her case, the parties settled. This case demonstrates the importance of making good contracts. A wise businessperson will be sure to enter contracts with a good understanding of the content and a good faith interest in upholding the contract. Managing a BusinessThere are many laws that concern managing a business because there are many aspects involved in managing. As you can already see, running a business will involve a lot of employment law and contract law. For my new business, I’ll need to know how to hire, what my contracts should look like, what kind of benefits I have to provide, how to pay employee insurance and taxes and even how to properly fire an employee. Many of these employment and benefit laws are federal laws and regulated by government agencies. For example, the Equal Employment Opportunity Commission is a federal agency that enforces employment discrimination laws. If I also decide to sell things as part of my pet grooming business, like dog collars or dog treats, then I’ll need to be familiar with the laws on sales. For businesses that conduct sales, it’s especially helpful to be familiar with the Uniform Commercial Code, or UCC. What happens if I provide services but have trouble getting paid? Let’s say I groom several dogs for a company, but he won’t pay my bill. Can I demand payment or report him to the credit reporting agencies? This is a debt collection law question. Debt collection laws are mostly federal laws. For instance, many of the debt collection laws are found in the Fair Debt Collection Practices Act, or the FDCPA, which is enforced by the Federal Trade Commission. 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
Salt Lake Bankruptcy Attorneys Types Of Child Custody In Utah Prenuptial Agreement Can Be Thrown Out Family Attorney Salt Lake City Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Business Attorney first appeared on Michael Anderson.via Michael Anderson https://www.ascentlawfirm.com/utah-business-attorney/ |
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