An executor must undertake these responsibilities subject to a fiduciary duty to the estate. This includes a non-delegable duty to collect and preserve the estate. As the fiduciary of the estate, an executor owes a duty to act on behalf of the estate, and not for the executor’s personal interests. In the management of estate assets the executor must abide by the principle that an executor acts primarily in the interest the estate and its beneficiaries. A beneficiary of the estate has legal rights to hold an executor to these standards. The beneficiary’s rights include seeking the removal of an executor from office, and court oversight of the estate administration, and sanctions. Often, without action by the beneficiaries the executor will continue to do little or nothing to administer an estate. It is important that action be taken to enforce these rights as quickly as possible. The longer the delays, the more likely waste and damage may affect an estate. The first step is to know your legal rights and the options that best fit your situation. When most people think of executing a will, they might think only of delivering inherited assets to beneficiaries. However, there are actually several steps of the probate process that the executor must complete before transferring any assets. As a beneficiary, it’s natural to wonder how long it will take before the process ends and you receive any inheritance coming your way. Unfortunately, every estate is different, and that means timelines can vary. A simple estate with just a few, easy-to-find assets may be all wrapped up in six to eight months. A more complicated affair may take three years or more to fully settle. There are some deadlines written into state code for some parts of the probate process, and these might compel the estate’s executor to complete certain steps by a given date. We’ll review some of these rules in this guide. However, these deadlines are far from uniform, so it’s important to read up on how your state and even your county handle things. Filing the Will for ProbateSubmitting the deceased’s will to the proper probate court is the first step in any probate process. Doing this and receiving the court’s approval is what allows the executor to act as executor in the first place. So how long does the executor have to submit the will after the deceased passes away? As with just about every step in the process, the answer varies from state to state. Some states have no stated time limit for an executor to submit the will. That being said, the executor’s fiduciary duty to the estate, and therefore the estate’s beneficiaries, prevent him or her from just sitting on the will without good reason. The estate will continue to accrue expenses like property taxes regardless of whether or not anyone has filed the will, so it’s almost always in the estate’s best interest to get the probate process started sooner rather than later. If you’re a beneficiary and the executor named in the will has no plans to file the will or start the probate process, you likely have an argument that she’s violating her fiduciary duty to the estate. Estate InventoryOne of the first parts of the probate process is conducting an inventory of an estate’s assets. After an executor receives authority from the probate court, he or she is in charge of collecting all the assets in the estate and giving each a valuation. This is necessary to determine several things. One is if the estate will be subject to estate taxes. Another is if the estate will remain solvent – that is, whether the estate’s assets exceed its debts. Some states have deadlines for an initial inventory written into state code. Both Maryland and Texas, for example, require executors to conduct an inventory within three months of the decedent’s passing. Other states leave it to the probate courts to judge on a case-by-case basis. If you’re the executor of a complex estate, be sure to find out whether there are any states or county laws regarding the timeline for conducting the inventory. Paying Debts and Taxes of the EstateThe amount of debt associated with an estate is arguably the variable that can have the biggest impact on how long the probate process takes. This is partially because creditors against the estate need time to become aware of the process and make any claims against the estate. Some states have required windows of time to allow creditors to make claims. The tax burden that your estate has is another factor that could prolong the probate. This is particularly true if you have to deal with estate taxes. If the estate has real estate in multiple states, you may have to go through separate probate processes, which may or may not delay the distribution of assets. • Pecuniary legacies (gifts of specific sums of money) It is important to note that Executors should not pay cash gifts out of their own money and should never mix their own money up with monies comprised in the Estate. If the majority of the Estate assets have been received and there’s enough money in the Estate account, an interim payment could be made to the Beneficiaries with Executors holding back enough funds to cover any potential costs. These payments should be recorded by asking the Beneficiaries concerned to sign a written receipt, acknowledging receipt of the interim payment. On payment of the final costs or disbursements, the remaining funds would then be distributed to the Beneficiaries. If there is unreasonable delay, a Beneficiary should contact the Executor, pointing out their obligation to keep all Beneficiaries updated on the progress of managing the Estate. As a Beneficiary, you can also demand that the Executor provide an account of the Estate which should outline how much you are due to receive and the progress made in the Estate administration. If refused, there is a relatively straightforward process for obtaining a Court order so the Executor must produce an inventory and an account of the transactions of the Estate. • Spouse or domestic partner Factors The Probate Courts May ConsiderEven if someone is nominated in a will to serve as executor, or is entitled to priority for appointment in a state statute, the court has the final say over who actually serves as the personal representative. Only the court can issue the document (commonly called “letters of administration” or just “letters”) that gives someone authority over the assets in a deceased person’s estate. Certain people who would otherwise be entitled to serve as personal representative are disqualified under state law. (The same factors apply to persons nominated in a will.) Here are some factors that may or may not serve as reasons for disqualification: What is The Personal Representative’s Responsibilities?Executors, or Personal Reps, have to: 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
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How Much Does A Criminal Defense Attorney Cost? Springville Utah Divorce Attorney What Happens To My Bank Account When I File Chapter 7? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-happens-if-an-executor-refuses-to-distribute-an-estate/
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If you’re planning to file for Chapter 7 bankruptcy, you have good reason to be concerned about the money in your bank account. While Chapter 7 cases usually proceed without any problems, unexpectedly losing bank account funds is a common cause of needless grief. Avoiding banking-related problems in Chapter 7 is simple once you’re familiar with the following key issues: Keep in mind that while pre-bankruptcy planning can help, the best way to avoid unexpected issues is to consult with a knowledgeable bankruptcy lawyer before filing your Chapter 7 case. Fortunately, you don’t lose everything when you file for bankruptcy and can keep all assets covered by your state’s bankruptcy exemption laws. Most states don’t offer much protection when it comes to cash and bank accounts, however the average exemption being around $300 if that. An alternative is using a wildcard exemption, which allows you to protect any property of your choosing. But again, not all states offer a wildcard exemption. If you can’t protect your bank account balance when you file your case, the Chapter 7 bankruptcy trustee appointed to administer your matter will take the funds to repay creditors. Most debtors realize that they need to exempt bank account funds and do so, but they often underestimate the amount they need to protect. They don’t realize that they must exempt the total account balance on the date of filing, irrespective of pending debit amounts not the balance that would remain after all pending checks and purchases cleared the account. The trustee might request that you bring a copy of your bank statement reflecting the balance on the day you file for bankruptcy with you to the 341 meeting of creditors the hearing most filers must attend. If the balance is higher than the amount exempted, you’ll need to turn over the difference. And no amount of explaining that your recently-made purchases hadn’t yet cleared will help. How to avoid this problemMake sure you have a minimal amount in your bank account on the day you file for Chapter 7 bankruptcy. Remember that you must exempt cash; too, so withdrawing it alone won’t be sufficient. Instead, use your money for necessary items something you’re always entitled to do such as food, needed clothing, utilities, rent, and essential car repairs. Also, keep your receipts so you can show how you used the funds, and again, spend the money before you file your bankruptcy case. Be especially cautious if you owe your bank or credit union any money before filing for Chapter 7. Banking institutions have the right to take money out of your bank account to “set off” (pay) the debts you owe them. The debt might be for past-due fees, or for a loan, mortgage, or credit card. So if you’ve fallen behind on your payment which happens to many debtors before filing for bankruptcy be aware that the bank or credit union might use a set off to remove funds from your account and apply the funds to pay down debt. While an unexpected set off is always painful, it’s even worse when it’s used to pay a debt that would be wiped out in your Chapter 7 cases. Many banks and credit unions freeze the bank accounts of individuals filing for bankruptcy even when the debtor doesn’t owe the bank money. The banks’ position is that all of the debtor’s assets come under the control of the bankruptcy trustee immediately after filing for Chapter 7 until the debtor receives a debt discharge, and that freezing the accounts protects the funds for the trustee. Of course, it’s a hardship for debtors who are frozen out of the account without warning. But the solution is often simple. The debtor or the debtor’s attorney can contact the Chapter 7 trustee. If the funds are exempt, the trustee will usually instruct the bank to give the debtor access to the account, although it might take a few days. Otherwise, the debtor must file a motion with the court to have the funds released. Most banks won’t close an account that is in good standing just because of a bankruptcy filing. But you might not be able to open a bank account for sometime after filing for Chapter 7. Some debtors have reported problems doing so shortly after receiving a Chapter 7 discharge. If you owe money to your bank, open a new account elsewhere before you file for Chapter 7. You’ll have a better chance of emerging from bankruptcy with an active bank account. Just be sure to keep it in good standing thereafter. Consult With a Bankruptcy LawyerNo one wants to lose property in bankruptcy, but it can happen especially in Chapter 7. Chapter 7 debtors don’t have the right to dismiss the case when the trustee wants to take property without first getting permission from the court. So it’s essential to know how to protect bank accounts in bankruptcy and any other property before filing your action. Ultimately, the most prudent course of action is to consult with a knowledgeable bankruptcy lawyer. Exemptions for Funds in Checking AccountsUsually, there is no specific exemption to cover money in a checking account or other types of cash. A few states do provide a small cash exemption for a few hundred dollars. This does not mean that you cannot protect the money in the account, however, since it may fall within a different type of exemption. For example, a “wildcard exemption” may allow you to protect any type of personal property up to a certain amount in value. Sometimes the source of the money in the checking account may allow you to claim an exemption. If it comes from government benefits, such as Social Security benefits, or if it comes from a pension or retirement fund, child or spousal support, or a personal injury lawsuit, you may be able to claim a specific exemption for that type of cash. Many states also allow a debtor to claim an exemption for wages, although this may be limited to a certain amount. If the funds in the account were held in a tenancy by the entirety, this also may fall within an exemption in some states. Non-Exempt Funds in Checking AccountsOn the other hand, if the money in a checking account does not qualify for any type of exemption, you will need to turn it over to the bankruptcy trustee. It will be used to repay creditors. Sometimes only part of the money in a checking account is exempt, while the rest must be submitted to the trustee. An individual filing for bankruptcy under Chapter 7 may face an account freeze by a bank. You can let the bankruptcy trustee know about the freeze and ask them to get the bank to release the freeze. The purpose of the freeze is to hold the assets in the checking account for creditors to collect on debts, so the freeze should be released if you can show that the funds are covered or partially covered by an exemption. You should try to make sure that any checks that you write from a checking account have cleared before you file for bankruptcy. This is because the bankruptcy trustee will check the balance in the account on the day of the filing. If some checks have not yet cleared, the balance may be higher than the amount that you stated to the trustee. This means that the surplus likely will be non-exempt and should be submitted for payment to creditors. Avoid Losing Money or Access to Your AccountYou likely already know that you can protect property with bankruptcy exemptions. This includes the money in your bank accounts. However, here are some common problems you’ll want to be aware of: Avoid a Bank Set OffMany people owe money to the institution where they have a checking, savings, or investment account. In such cases, when you signed the loan contract for the credit card or vehicle loan, you likely agreed to a set off a contract provision that allows the bank to withdraw funds from your deposit account and apply the money to your loan balance. An easy way to avoid this problem is to do your banking somewhere other than the bank you owe money to. (You’ll report all accounts when you fill out your bankruptcy paperwork, of course.). Like bank accounts, security deposits held by utilities, such as electric, telephone, or gas companies, can be subject to set off if you owe money to the utility company when you file for bankruptcy. If you file for bankruptcy, the utility company cannot demand payment of past due amounts to continue utility service. However, if you are behind in utility payments when you file for bankruptcy, the company can use money from your security deposit to cover the debt. And then it can require you to replenish your deposit or post a new deposit (some limitations exist). Before you file, be prepared to replenish your deposit in the case of set off. Consider timing your bankruptcy filing so that you aren’t behind in utility payments when you file. Stop Automatic Payments Before FilingOnce creditors receive notice of your bankruptcy filing, they’re supposed to stop automatic or charges. However, if you’ve authorized automatic deductions taken from your bank account, paycheck, or credit card, it’s unlikely that they’ll stop the instant you file for bankruptcy. And sometimes when you request that automatic payments stop, it takes a while for that to happen. One way to make sure you aren’t short on the funds you’ll need to pay living expenses after filing for Chapter 7 or 13 bankruptcy, it’s wise to stop automatic payments well before you file. Disclosing Your Checking Account Balance in BankruptcyWhen you file for bankruptcy, you must submit papers with the court that list everything you own (called the bankruptcy petition and schedules), including your bank account. If you don’t list it and the trustee finds out about it, will likely lose the money in the account even if you would have otherwise been allowed to keep all or part of it. Even worse, you could find yourself facing a bankruptcy fraud charge. Bankruptcy exemptions are laws that tell you which property you can exclude from your bankruptcy. If the property is exempt, you can keep it in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you can keep nonexempt property (property that isn’t protected by an exemption), but you’ll have to pay an amount equal to the value of the nonexempt amount in your three- to five-year repayment plan. The exemptions available to you depend on where you live. Each state has a set of exemptions. Some states allow you to choose whether to use the state exemptions or the federal bankruptcy exemptions. Others only allow you to use state exemptions. Exemptions aren’t automatic. In your bankruptcy schedules, you’ll identify the property which you are claiming as exempt. Also, exemptions are available only to individuals. Businesses, such as corporations or partnerships, don’t get to claim exemptions. If you can claim the funds in your checking account as exempt, the Chapter 7 trustee assigned to your case won’t be able to use the money in your account to pay creditors. In Chapter 13 bankruptcy, you won’t have to pay creditors an equal amount through your three to five year plan. Most states don’t have an exemption for money in a checking account or even cash. And, for those states that do, the amount is often small, for instance, it’s common for a cash exemption to be as little as $300. However, you might be able to use another exemption to protect some of your funds. Bank Account LawyerWhen you need to have a bank account lawyer help you, please call Ascent Law LLC 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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What Should You Not Do Before Filing Bankruptcy? How Much Does A Criminal Defense Attorney Cost? Can You Refuse A Breathalyzer In Utah? Can A Private Company Do A Private Placement? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-happens-to-my-bank-account-when-i-file-chapter-7/ Midvale is a city in Salt Lake County, Utah, United States. It is part of the Salt Lake City, Utah Metropolitan Statistical Area. Midvale’s population was 34,124 according to 2019 estimates from the U.S. Census Bureau. Midvale is home to the shops at fort union, located on the east side of the city and the Bingham Junction economic center, and located on the west side of the city. Midvale is centrally located in the most populated county in Utah, with the direct interchange between I15 and I215 located in the middle of the city. Midvale is one of the few cities in Utah to be home to two direct trax lines. According to the United States Census Bureau, the city has a total area of 5.8 square miles (15.1 km²), all of it land. The western border of Midvale is the Jordan River that goes down the center of the valley. DIY (do-it-yourself) divorce or dissolution In Midvale, Utah A do-it-yourself divorce or dissolution can’t take less than six weeks to complete from when the legal processes start in. In reality, even a swift divorce or dissolution could take between four to six months. Depending on how complex your financial situation is and what process you use to sort it out, a financial settlement could be agreed within months. But financial proceedings through the courts can often take a long time. It might take anything from nine months to two years to sort out the finances if you and your ex cannot agree them. Anyone can opt for a do-it-yourself divorce or dissolution, but that doesn’t mean it’s suitable for everyone. As a guide, you might be able to sort out your divorce or dissolution and your finances yourself if: You’re likely to be able to sort out your divorce or dissolution yourself if: Pros And Cons Of Hiring A Divorce Attorney: Issues To Consider
Filing and Serving Divorce PapersThe divorce petition is a legal document filed in court by a spouse who seeks a divorce. Also called the “complaint” in some states, the petition informs the court of the filing spouse’s (called the “petitioner”) desire to end the marriage, and its filing with the court signifies the initiation of the divorce process. Once the divorce petition has been “served” on the petitioner’s spouse, it also notifies them that the divorce process has begun. While specific requirements and formats vary from state to state, the divorce petition typically contains the following information: Temporary OrdersIn addition to the information described above, the divorce petition may ask the court to put temporary “orders” in place on certain family and financial issues while the divorce process is ongoing. If approved, these orders usually stay in effect until the divorce becomes final. These temporary orders may pertain to issues such as: Where to File Divorce PapersWhere you file for divorce is crucial. As with virtually all matters of family law, the divorce process is handled solely at the state government level, so the spouse seeking a divorce files a divorce petition in their state’s “superior” or “circuit” court usually in a county or district branch of that state court. Residency requirements vary by state, but will determine where the petitioner will be filing and serving divorce papers. Divorce Lawyer Midvale UtahWhen you need legal help with a divorce lawyer in Midvale Utah, please call Ascent Law LLC 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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Do They Freeze Your Bank Account When You Die? Personal Injury Law Firm South Jordan Utah Santaquin Utah Divorce Attorney What Should You Not Do Before Filing Bankruptcy How Much Does A Criminal Defense Attorney Cost Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/midvale-utah-divorce-attorney/ If you are looking to hire a criminal lawyer, chances are that you are in a difficult situation and need the assistance of a criminal defense attorney quickly. Facing criminal charges, whether minor or a more severe charges, is often a very serious matter with consequences. These may include jail time, creation of a criminal record, monetary fines, loss of future employment opportunities, or more. Therefore, it is often in your best interests to find and hire an experienced and well qualified criminal defense attorney to assist you with your charges. Importantly, the Constitution guarantees you the right to counsel in criminal prosecutions. If you cannot afford an attorney, then the court will appoint one for you. However, if the court decides based on your income and assets that you can afford an attorney, and then you may either hire a private attorney or represent yourself. Criminal defense attorney costs will typically vary based upon various factors. These may include: the severity of the charges that you are facing, the notoriety or experience of the attorney, the complexity of the legal issues in the case, and whether the case goes to trial, to name a few. Thus, it is important when hiring a criminal defense attorney to discuss the attorney’s fees prior to entering into a written contract. What Does a Criminal Defense Attorney Do?If there is a criminal claim brought against you, you may be faced with criminal penalties, such as fines, jail time, or both. Thus, if you have been charged or are under arrest for suspicion of having committed a crime, it is in your best interests to first consult an experienced attorney before you respond to any criminal prosecution. A qualified and experienced criminal defense attorney will guide you through the entirety of the criminal legal process and help you assert any possible criminal defenses to the charges being brought against you. In most cases where you are seeking a criminal defense attorney, you may have already been arrested, taken into police custody, and booked through the police system. After this, you are typically given a chance to post bail, before an arraignment is held where you are read the criminal charges that are being brought against you. During the arraignment, you will be asked to enter your plea, and should there be no plea bargain, a preliminary hearing will be held where a judge will determine whether there is sufficient evidence to charge you with a crime. As can be seen, the entire criminal procedure is often very complex, and, thus, it is often in your best interest to consult with an experienced criminal defense attorney. A criminal defense attorney will often charge you based on an agreed upon hourly fee or flat fee, as well as bill you any related court costs for defending your case, such as expert witness or investigator fees. 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: Reasons to Hire a Criminal Defense Attorney• They Understand the Judicial System: The first and often most important reason to hire an experienced criminal defense attorney is that they understand how the judicial system works. The legal system can be confusing, even for people who work in it every day, but an experienced defense lawyer knows the intricate workings of the court systems and can help guide you through the process based on your individual case. In fact, the attorneys at Berry Law help demystify the process by providing a free step-by-step guide of the court proceedings for any individual criminal case during your first in-person consultation. Tips to Help You Find the Best Criminal Defense Attorney An Attorney Should Be Responsive: When you’re facing a criminal charge, time is of the essence. Time lost is a case lost. You need a criminal defense attorney that’s going to get to work on the case right away. When you contact a lawyer, they should respond quickly. Their legal team should be able to arrange a meeting with you within one day. If they’re quick to answer to your phone call or email, they’re probably going to be equally on the ball when it comes to defending you. Utah Criminal Defense LawyerWhen you need a Utah Criminal Attorney to defend against charges, please call Ascent Law LLC 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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Do They Freeze Your Bank Account When You Die? Centerville Utah Divorce Attorney What Should You Not Do Before Filing Bankruptcy? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/how-much-does-a-criminal-defense-attorney-cost/ Bankruptcy laws are often complex in nature and some filers make mistakes before they ever file their petition at the courthouse. Making certain mistakes may have an adverse effect on bankruptcy or even prevent someone from qualifying for bankruptcy. Some mistakes to avoid include: Continuing to Use Credit In Bankruptcy?Some people may make purchases with credit weeks or months before filing bankruptcy. They may also make payday advances. However, conducting these transactions may raise a negative implication regarding whether the filer is filing bankruptcy in good faith. In some situations, bankruptcy may even be considered fraudulent. In certain circumstances, a bankruptcy petition may be denied, such as if there was a recent payday loan. Even if the bankruptcy court does allow the filing, having recent debt can give creditors grounds to object. Transferring Property In Bankruptcy?In order to protect certain assets, some filers may transfer money or other property into the name of someone else, such as a relative, spouse or child. However, this tactic can also result in a bankruptcy fraud investigation. Furthermore, transferring property out of a person’s name may cause the filer to lose the bankruptcy protection that he or she may have retained. Individuals can file for bankruptcy even if they have assets and they may even be able to keep them but this cannot happen if the filer no longer legally owns the assets. Selectively Paying CreditorsMany individuals approach debt as a moral obligation. As such, they may feel that a debt to a friend, relative or employer is even more important and may choose to pay off these debts before filing bankruptcy. However, selectively paying creditors can spell disaster for bankruptcy filers. The bankruptcy trustee is often given the power to sue the individual that was paid back in order to recuperate these funds for the bankruptcy estate. Altering Other Financial TransactionsJust as a person should continue to pay debts as he or she normally would and not take any special action, he or she should not take any special action regarding deposits. This includes refraining from making deposits of funds that do not actually belong to the filer or conducting business transactions through a personal account. Not Filing Income Tax ReturnsA filer’s tax returns are critical as a source of information to complete the necessary filings with the court. They help show the filer’s current earnings and show ownership of certain assets that the bankruptcy lawyer may try to protect. Not having tax returns may result in a dismissal of the bankruptcy case. Making a Legal ClaimEven if a filer has a legitimate legal claim against another person or entity, this claim becomes the asset of the bankruptcy estate once the bankruptcy petition is filed. Don’t Provide Inaccurate, Incomplete or Dishonest InformationOn your bankruptcy paperwork, you’re required to provide under penalty of perjury complete and accurate information about all of your assets, debt, income, expenses and financial history. If you knowingly misrepresent your information, such as by failing to disclose an asset, you could be subject to criminal penalties, including fines of up to $250,000, twenty years in prison, or both. Also, if you don’t file all of the paperwork, the bankruptcy court might dismiss your case, or you might have to file additional papers to correct the paperwork and pay more fees. If you leave a creditor out, that debt might not get discharged. And, if you forget to include an asset, the Chapter 7 trustee might find it and take the property. The Federal Bureau of Investigation (FBI) investigates bankruptcy crimes, so bankruptcy court is not the place to be less than forthright. Most bankruptcy lawyers can solve your problem in an appropriate manner. If you’re not sure about the potential ramification of your actions, talk to a bankruptcy attorney first. If perhaps you ran up debt during the 70 to 90 days before filing bankruptcy, beware (unless it was for necessities of life, such as food, clothing, and utilities). The creditor might object to your discharge by arguing that you took out the loan without any intention of paying it back (called fraud). As a general rule, if you took out cash advances or used a credit card to buy a luxury item within 70 to 90 days of filing bankruptcy, then you’ve committed “presumptive fraud” and might not get to discharge the debt. Don’t Move AssetsWhile the bankruptcy schedules ask that you provide information about assets you own (or will own), some people might be tempted to sell, transfer for safekeeping, or hide assets before filing bankruptcy. Don’t do it. If you do, you might be denied a discharge and even be subject to criminal penalties and it’s unlikely that the risk will be worth any perceived reward. Of course, you might have sold property before you filed your bankruptcy case to pay your expenses, such as your rent, food, or utilities, and doing so isn’t wrong on your part. Be prepared to explain all of your transactions, and, when appropriate, provide supporting documentation. Bankruptcy Disclosure RequirementsFiling for bankruptcy is a transparent process. Even though you can keep (exempt) the things you’ll need to work and maintain a household, your creditors have a right to everything else. So you must agree to disclose every aspect of your financial situation in your bankruptcy paperwork before receiving the benefits of bankruptcy. One way the court ensures that creditors get their share is by examining up to ten years’ worth of prior financial transactions. Everyone who files for bankruptcy individuals and businesses alike will report previous transactions on Your Statement of Financial Affairs for Individuals Filing for Bankruptcy form and include it as part of the official paperwork filed with the clerk. (Legal professionals often refer to this as the “SOFA” form.) If the court discovers that you transferred property in an attempt to avoid paying a creditor or broke another bankruptcy rule, the court will unwind the transaction and disperse the recovered funds to the creditors. Here’s a sampling of information you’ll need to include: Don’t Fail to File Income Tax ReturnsIf you aren’t required to file tax returns for instance, you receive disability insurance you don’t need to worry about this requirement in a Chapter 7 bankruptcy. If you’re supposed to file taxes, however, but haven’t done so for the two years before filing bankruptcy, you’ll run into problems. Your tax returns are crucial to determining your current and past earnings and asset holdings, as well as satisfying potential priority tax claims. Without your returns, completing your paperwork, and (if applicable) a Chapter 13 plan, will be next-to-impossible and will stop your bankruptcy in its tracks. For instance, there’s no way for the IRS to determine your tax obligations without a tax assessment. 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
Ascent Law LLC
The post What Should You Not Do Before Filing Bankruptcy? first appeared on Michael Anderson.
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Do They Freeze Your Bank Account When You Die? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-should-you-not-do-before-filing-bankruptcy/ Many banks allow their customers to name a beneficiary or set the account as Payable on Death (POD) or Transferable on Death (TOD) to another person. If the account holder established someone as a beneficiary or POD, the bank will release the funds to the named person once it learns of the account holder’s death. After that, the financial institution typically closes the account. If the owner of the account didn’t name a beneficiary or a POD, the process can get more complicated. The executor, or person who administers a person’s estate when he or she dies, will become responsible for using the money to repay creditors and dividing the remaining funds according to the deceased’s will. Most joint bank accounts include automatic rights of survivorship. In short, if one of the signers on the account passes away, the remaining signer (or signers) on the account retain ownership of the money in the account. That means that the surviving account owner can continue using the account and the money in it, without any interruptions. It’s worth noting that the death of an account holder can impact the insurance on an account. The Federal Deposit Insurance Corp. will continue to insure an account as if the decedent is alive for six months after his or her death. Once that time passes, the FDIC coverage stops. Joint accounts can receive up to $500,000 in protection; however, that amount will revert to the $250,000 in protection applicable to individual accounts if one of the joint account holders dies. Still, if you’re a signer on a joint account, it’s worth checking with your bank to make sure that the account has automatic rights of survivorship. Some banks will freeze joint accounts if one of the signers dies, which could be a problem if you rely on the account for regular spending. In general, the executor of the state is responsible for handling any assets the deceased owned, including money in bank accounts. If there is no will to name an executor, the state will appoint one based on local law. The executor has to use the funds in the account to pay any of the estate’s creditors and then distributes the money according to local inheritance laws. In most states, most or all of the money will go to the deceased’s spouse and children. How do banks discover someone died?Banks can discover the death of an account holder in a few ways. How to avoid complicationsThe last thing that people want to think about while grieving the loss of a loved one is money. There are some proactive steps that you can take to help your loved ones avoid complications if you die. Always have a will drawn up by an estate attorney and set up beneficiary designations or TOD, but the easiest way to deal with bank accounts is to simply have an authorized signer on the account so they don’t have to wait. If you have power of attorney for a loved one who is in poor health, you can add a joint account holder or a TOD to their accounts in preparation for the future. Another important thing to do is to make sure that your family knows about all of your financial accounts. With the rise of online banking, it’s much easier for accounts to get lost in the shuffle. If you own an account in your own name, and don’t designate a payable-on-death beneficiary then the account will probably have to go through probate before the money can be transferred to the people who inherit it. If, however, the total value of your probate assets is small enough to qualify as a small estate under your state’s law, then the people who inherit from you will have simpler, less expensive options. Depending on your state’s law, they may be able to use a simplified probate procedure or simply prepare an affidavit (sworn statement) stating that they are entitled to the money, and present that to the bank. Not all states offer both options. To see what processes are available where you live, see Probate Shortcuts in Your State. Probably the simplest way to leave a bank account to someone is to name that person (or more than one) as the “payable-on-death” or POD beneficiary. You can do it by filling out and submitting a form that the bank supplies. The money is not part of your probate estate (assets that can’t be transferred without the probate court’s approval), so it can be quickly and easily transferred to POD beneficiary. After your death (and not before), the beneficiary can claim the money by going to the bank with a death certificate and identification. Your beneficiary designation form will be on file at the bank, so the bank will know that it has legal authority to hand over the funds. If you own an account jointly with someone else, then after one of you dies, in most cases the surviving co-owner will automatically become the account’s sole owner. The account will not need to go through probate before it can be transferred to the survivor. Most bank accounts that are held in the names of two people carry with them what’s called the “right of survivorship.” This means that after one co-owner dies, the surviving owner automatically becomes the sole owner of all the funds. Sometimes it’s very clear that the account has the right of survivorship. If your account registration document at the bank simply lists your names, and doesn’t mention joint tenancy or the right of survivorship, it might be a joint tenancy account, but it might not. If you’re in doubt, check with the bank and make sure the right of survivorship is spelled out if that’s what you want. If you and your spouse open a joint bank account together, it’s very unlikely that anyone would argue that the two of you didn’t intend for the survivor to own the funds in the account. But if you have a solely owned account and add someone else as a co-owner, it may not be so clear what you want to happen to the funds in the account after your death. Some people add another person’s name to an account just for convenience—for example, perhaps you want your grown daughter to be able to write checks on the account, to help you out when you’re busy, traveling, or not feeling well. Or you might want to give a family member easy access to the funds in an account after your death, with the understanding that the money will be used for your funeral expenses or some other purpose you’ve identified. Legally, however, the person whose name you add to the account will become the outright owner of the funds after your death. Unless there’s something in writing, there’s no way to know or enforce the terms of any understanding the two of you reached about how the money would be used. The new owner is free to spend the money without any restrictions. If other relatives think you had something else in mind, they may be resentful or angry if the surviving owner uses the money for personal purposes instead of paying expenses or sharing the money with other family members. If you want someone to have access to your funds only so they can use them on your behalf, there are better ways to do it. Consider giving a trusted person power of attorney (this gives them authority during your life), or leave a small bank account and instructions for its use after your death. Don’t make someone a co-owner on an existing account unless you want them to inherit the money without any strings attached. Bank Accounts Held in TrustIf you’ve set up a living trust to avoid probate proceedings after your death, you can hold a bank account in the name of the trust. After your death, when the person you chose to be your successor trustee takes over, the funds will be transferred to the beneficiary you named in your trust document. No probate will be necessary. To transfer the account to your trust, tell the bank what you want to do. It may have some forms for you to fill out. Then the bank should adjust its records, and your account statements will show that the account is held in trust. A joint bank account is an account where more than one person has access to the money held in it. While joint accounts are typically owned by spouses or relatives, neighbors or friends may also open them together. Parents often choose to set a joint account up with their child during their estate planning process. In addition to other benefits, this ensures that if the parent becomes incapacitated, the child can cover the related expenses. Benefits of Joint Bank Accounts• Possibly avoiding probate: If the account was just in the deceased family member’s name, it will have to go through probate for other relatives to gain access to it. But if you signed up for the account together, such as making a joint bank account with a parent who recently died, probate may not be necessary. • A simpler bill-paying process: If you and your partner split bills, having a joint account can make paying them much easier. You won’t have to wait to transfer money from one account to another before submitting payments. And the partner who is better with remembering to pay on time can simply access the account to make payments when they wish to. But a joint account isn’t always the best idea for everyone. In the event of a breakup or divorce, a joint account can complicate matters. The lack of privacy might also be a problem for some couples or relatives, and some individuals might resent the transparency that comes with this type of account. 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
Ascent Law LLC
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Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/do-they-freeze-your-bank-account-when-you-die/ Child support is an important issue for any divorcing couples with children. Parents need to know what to expect so they may plan for the future. Child support is money one parent pays the other to meet the needs of a child. Needs may include food, shelter, clothing, health insurance, medical costs, education and child care. The amount of child support is based on the income of both parents. The goal is to give children the same standard of living they would have if their parents were together. How long does child support last?In most circumstances, child support is paid until your child is age 21. Child support may be suspended or terminated if a child older than 16 becomes emancipated, marries or enters the military. Duty to pay child support does not stop automatically. Requests to stop making payments need to be submitted and approved by the same court that made the child support order. What If Parents Have Joint Custody?Joint custody is common if when both parents live locally. The effect of joint custody on child support depends on the nature of the joint custody arrangement. With joint legal custody, both parents share major decisions regarding the child. Joint legal custody may have no effect on child support. One parent still has primary custody of the child and handles payment of most of the child’s day-to-day expenses. The custodial parent’s expenses for the child have not been reduced by the joint custody arrangement. With joint physical custody, the child spends substantial time with each parent. If the parents have approximately equal incomes, it is possible neither parent will have to pay support to the other. The father and mother will pay the child’s day-to-day expenses when the child is in the respective homes. The parents, however, will need to coordinate payments on major expenses such as camp, school, clothing, and insurance. If there is a significant difference in the parents’ incomes, the parent with higher income probably will make payments to the other parent or pay more of the child’s expenses, but the amount paid might be less than the guideline amount because of the joint physical custody arrangement. How much will child support be?The basic formula for child support is based on both parents’ income per year and the number of children. If the parents’ combined income is $136,000 or less the court follows a simple formula: (Combined Parental Income) x (Child Support Percentage) = Basic Support Obligation Basic Support ExampleOne parent is the primary caregiver and makes $25,000. The other parent makes $100,000. They have one child. Total income is $125,000, which is multiplied the “child support percentage” of 17%. Additional Costs, Payments, or “Add Ons”In addition to the basic child support obligation, additional payments to cover child care costs (if the custodial parent is working or in school), health care expenses, school, camp, or other major expenses may be required. These payments are prorated at the same percentage as the support obligation (using our example, 80% and 20%). The basic award may be increased to include a pro-rated share of child care expenses, if the custodial parent is working or in school. In addition, the court may increase the award to include a pro-rated share of educational expenses for the child. Higher IncomesIf the combined income is more than $136,000, the court could use the same formula for all income or choose to set a “ceiling” for income to be applied to the formula. That ceiling could be much greater than $136,000 for very high-income couples. Alternatively, the court could use the formula for only the first $136,000 of combined income, and then decide how much (if any) additional to award by considering these factors: How to Increase Child Support PaymentsOne thing is certain – life is unpredictable. Even the well-thought out plans for child support may prove unsuccessful. So what happens when the child support amount you’ve been getting no longer covers your child’s basic needs? You go back to court. Once a child support order is issued, either parent may request that a court modify (change) the amount of support, either up or down. Although either parent can ask a court to modify child support, this article will focus on increasing child support payments. Show a Substantial Change in CircumstancesAlthough the specific requirements vary from state to state, generally in order to increase (or decrease) child support payments, the requesting parent will have to prove that after the existing order was put in place, a substantial change in circumstances occurred, such as a change in the child’s needs, an increase in salary, or the involuntary loss of a job. • Child’s Standard of Living Before Divorce or Separation: The courts also look at the needs and standard of living for the child before the divorce. The courts main intent is to ensure that the child receives the same type of living after the divorce and the separation does not impact the child in a major way. What Other Factors Are There In Determining Child Support? How Does the Court Determine the Child Support Payments?The courts often require each parent to fill out a financial statement to provide a complete overview of the parents income and expense. Then the court looks at both parent’s income and determines the situations that each parent is in before making the decision on the child support payments. In the financial statement, each parent has a duty to provide all the detail of his or her monthly income and expenses. Once the court sets out the child support payments, it always takes into factor the pre-divorce standard of living and attempts to continue this standard of living for the child. Child Support Calculator LawyerWhen you need a Utah lawyer for child support issues, please call Ascent Law LLC 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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What Is The Unsecured Debt Limit For Chapter 13? Salt Lake City Utah Divorce Attorney Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/utah-child-support-calculator/ Draper is a city in Salt Lake and Utah counties in the U.S. state of Utah, located about 20 miles (32 km) south of Salt Lake City along the Wasatch Front. As of the 2010 census, it had a population of 42,274, having grown from 7,143 in 1990. Draper is part of two metropolitan areas the Salt Lake County portion is included in the Salt Lake City metropolitan area, while the Utah County portion is part of the Provo-Orem metropolitan area. The Utah State Prison is located in Draper, near Point of the Mountain, alongside Interstate 15. The execution of Gary Gilmore took place there on January 17, 1977. Draper lies roughly midway between Salt Lake City and Provo. Draper is bordered by Riverton and Bluffdale to the west, South Jordan to the northwest, Sandy to the north, Alpine to the southeast, Highland to the south, and Lehi to the southwest. According to the United States Census Bureau, the city has a total area of 30.1 square miles (78.0 km2), of which 30.1 square miles (77.9 km2) is land and 0.015 square miles (0.04 km2), or 0.05%, is water. A divorce begins when a petitioner files a petition for divorce. Then, papers will be served. Proof of service is filed with 120 days of serving. Though, a Stipulation will be filed if both parties agree. Divorce In Draper UtahOnce papers have been served, the respondent will need to reply. The summons will state how many days the defendant has to respond. In most cases, if they are served in Utah, they must file their response within 21 days of being served. If they are served outside of Utah, the defendant has 30 days after service. If the defendant does not reply or reply within the allotted timeframe, the plaintiff can ask the court to enter a default judgment (the plaintiff wins, and the defendant loses the chance to tell their side). Parties will then exchange financial declaration and initial disclosures. Each party must reveal their income, any assets, and debts and expenses to the other party to determine child support, alimony, and division of debt and property. Parties also need to disclose any information, documents, and witnesses that help prove or defend their case. Both parties must complete at least one session of mediation in an attempt to resolve any disputed issues. If mediation does not resolve disputed issues, a trial will be necessary. In a trial, a judge will determine the case and tells parties to prepare and file final documents. If at any point, before the trial, either party can file a motion for a temporary order. A temporary order will determine child custody, parent time, alimony, attorney fees, and other matters. Both parties must file this temporary order until it changes or until the final ruling. When The Divorce Case is FinishedAfter final documents have been filed, a judge will review documents and sign the divorce decree. • People May Judge You and Ask Why: The news that you are getting divorced has spread through your church, neighborhood, and/or workplace, and we are a curious species. Don’t be surprised when people you barely know ask you why you the nitty-gritty on why you are getting divorced. Do I Need To Have A Reason To Get A Divorce?You need to choose a “grounds” (legal reason) for your divorce. One grounds for getting divorced is that you simply do not get along with your spouse anymore and you do not want to be married. You can always get a divorce if you want one, no matter what your situation is. There are two “no fault” grounds and seven “fault” grounds. The “no fault” grounds means that the marriage needs to end but neither person is to blame. The “fault” grounds mean that one person did something so wrong that the marriage needs to end. Lawyers For Draper City Utah DivorceWhen you need to get divorced, please call Ascent Law LLC 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
Ascent Law LLC
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What Is The Unsecured Debt Limit For Chapter 13? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/draper-utah-divorce-attorney/ Divorce and all legal issues associated with this pivotal life event can be resolved through negotiation, mediation and dynamic representation in trial. Legal elements connected to divorce include custody, visitation and asset and property division. Your best legal support will come from a Salt Lake City family law attorney who has open communication with you and helps you to make important decisions with the information and insight you need. Family lawyer can help you with a number of issues related to family law including, but not limited to: • Child Custody includes disputed cases. In sole physical custody the most able parent, best equipped to provide a safe, stable and healthy environment is selected. Visitation can be a part of this to help the noncustodial parent continue a relationship with the child. • Prenuptial and Postnuptial Agreements can not only help protect assets, but it can also help clarify any debt issues. We live in a time when divorce is more common, it is always wise to be informed. Some mediators also charge for a full-day or half-day session (no matter how much time you use). Some states recognize live-in relationships when they fall into the parameters of common-law marriage. Essentially, this is when a couple has lived together for so long, they are virtually married. However, each state defines this arrangement somewhat differently. It’s important to note that Utah is one of the handful of states that accepts common law marriage as a type of marriage. In addition, if the marriage was formed in Utah (or another state that recognizes this status as a valid marriage), the couple will be considered married by the law in other states, even if they do not recognize such unions that are formed in their state. A family attorney is a lawyer trained and experienced in handling matters that come before the family courts, such as adoption, divorce and custody disputes. He or she represents the best interests of the clients and lends his or her expertise and experience to the proceedings. After all, family law situations are stressful situations. This is no time to be teaching yourself the nuances of the law so that you can represent yourself. In general, attorney fees are not tax-deductible. However, if they are incurred trying to collect money, such as suing a former spouse for child support, you may be able to deduct them from your tax return. Court fees are never tax-deductible. Things A Family Lawyer Can Do In Salt Lake City, Utah• Handling Divorce Issues: Undergoing a divorce is probably one of the most draining experiences that a family can face. Emotions may set in and make it impossible for a couple to settle it calmly. In such a case, a family law attorney can act as a mediator, and assist them to approach the issue rationally and within the law. In other words, a competent family law attorney can assist couples in the process of divorcing to settle the matter fairly without necessarily going to court. Private Family LawPrivate Family Law cases are those brought forward by individuals. These generally include divorce, civil partnership dissolution and private disputes concerning children. Additionally, they can involve matters such as financial applications, special guardianship orders and orders under s8 of the Children Act 1989 to decide a child’s primary residence, parental contact and other specific disputes. On the other hand, Public Family Law cases are those brought forward by local authorities or an authorised person such as the NSPCC to protect the child. These can include matters such as care orders regarding a child’s parental responsibility, supervision orders to put a child under the supervision of the local authority and emergency protection orders which ensure a child’s immediate safety. Family Law ArbitrationArbitration is an out-of-court process and an alternative way to resolve disputes. It is private, confidential and carried out by a trained arbitrator. More often nowadays, family law practice includes a commitment to offering alternative dispute resolution such as arbitration to avoid resorting to potentially stressful court action. Some family lawyers may even have trained as mediators or arbitrators to be able to provide such services to their clients. During family law arbitration, parties enter into an agreement under which they allow the arbitrator to adjudicate a dispute regarding finances or children following a relationship breakdown. They agree to be bound by the reasoned written decision of the arbitrator. Arbitration is often described as faster as and more flexible than formal court decision making. Due to this, it is often more cost-effective than court. However, arbitration is not suitable for everyone. For example, if one party may attempt to hide assets or if one of the parties is in fear of the other or is particularly vulnerable, arbitration may not be suitable. How Do I Know If I Need a Family Lawyer?You may want to consult with a family lawyer for any big changes in the family dynamic, including: How Much Does a Family Lawyer Cost?Family lawyers typically charge by the hour, though some also use flat rates for simple services like document drafting or reviews. Rates will vary depending on where you live and the complexity of the matter. Set a rate with your lawyer up front so that you know what to expect at the end. What Should I Expect When Working with a Family Lawyer?Because the family law practice area is so broad, it’s hard to say exactly what you can expect from a family law proceeding. But in the end, you should have a better defined relationship with your family. In any case, your lawyer should supply you with advice on whether you should take your case to court and how strong your case is. Your lawyer should take you through every step of the process of filing papers or a lawsuit. For document creation or review, you can expect that your family lawyer will create a legally binding agreement that has clear terms you can understand. If you have to go through negotiations or go to court, there is no guarantee that the outcomes will be ideal for you, but having a family lawyer on your side will give you the best information and chance of winning your case. The family can concentrate on healing, and leave the legalities to the lawyers who will: Salt Lake City UT LawyerWhen you need a team of attorneys on your side in Salt Lake City Utah, please call Ascent Law LLC 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
Ascent Law LLC
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Can An Executor Withhold Money What Is The Unsecured Debt Limit For Chapter 13? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/lawyer-in-salt-lake-city/ In Chapter 7 bankruptcy, there is a limit to how much money you can earn. A chapter 13 bankruptcy, which is only available to individuals and married couples, places a cap on how much you owe. This amount is adjusted every few years. The most recent adjustment was April of 2019. Below, we’ll discuss debt limits, how they work, and what you can do if you owe more than the Chapter 13 debt limits allow. Chapter 13 Bankruptcy BasicsChapter 13 allows a debtor to reorganize their debts into a lump-sum monthly payment that is executed over the course of three or five years. Those who owe a lot of money in secured debt tend to choose Chapter 13 over Chapter 7 because it allows them to retain possession of their home or car. To save your home or car, however, not only would a debtor need to be able to repay the arrearages, they would have to continue to make payments on the car loan. In some cases, they may also qualify for a cram down which allows them to reduce the overall cost of the debt to the current value of the car. You can also qualify to have some (if not all) of your unsecured debt discharged at the end of your bankruptcy. The problem that some debtors face with Chapter 13, is that the debt limits aren’t high enough, especially in places like Manhattan or California where housing costs are extremely high. This leaves debtors in a bit of a quandary as to how to proceed. What Happens if I Exceed the Debt Limits?If you happen to exceed the Chapter 13 debt caps, there are two options available to you. Those are: Chapter 11 BankruptcyGenerally, only businesses file under Chapter 11. However, individuals can too. The process is similar to Chapter 13, but it does not have a fixed end date. Chapter 11 bankruptcies are executed over the course of an undetermined amount of time. Chapter 11 bankruptcies are typically much more costly and cumbersome than Chapter 13 or Chapter 7 bankruptcies making them rarely the top choice of individuals. Nonetheless, it is an option for those who are dealing with millions of dollars in secured or unsecured debt. Chapter 20 BankruptcyChapter 20 is not an actual chapter of bankruptcy but is so named because the debtor first files under Chapter 7 and immediately follows up with a Chapter 13. They do this so they can discharge enough of their debt to get themselves under the cap. However, Chapter 7 only discharges unsecured debt, so the debtor must have gone over the unsecured debt cap while simultaneously being under the secured debt cap. Exceptions to Chapter 13 Debt LimitsThere aren’t really any exceptions to the Chapter 13 debt limits, but only specific debts qualify to be included in those debt limits. These include: Debt Limits for Chapter 13 BankruptciesIf your debts exceed the allowed amounts, you can’t file for Chapter 13 bankruptcy. Chapter 13 bankruptcy is a powerful tool for people with regular income who can pay back some of their debts. Chapter 13 allows you to reorganize your debts so that you pay back some in full and some in part, all the while receiving protection from the bankruptcy court. Limits on Unsecured DebtUnsecured debt is one that doesn’t have some property or asset serving as collateral for the payment of the debt. Most debts are unsecured. Common examples include credit card debt, medical bills, utility bills, lawyer’s fees, and rent. Chapter 13 is only available for people who have less than $419,275 in unsecured debts. Most debtors have less than $419,275 in unsecured debts. The exception is people with substantial medical bills. Limits on Secured DebtA secured debt is one that has property as collateral. If the debtor defaults or doesn’t pay on the loan, the lender can take the property. For most people, the two most familiar types of secured debt are mortgages on real estate and car loans. A secured lender who’s not paid could foreclose on a house or other real estate, or repossess a vehicle. In order to qualify for Chapter 13 bankruptcy, you must have less than $1,257,850 in secured debt (as of April 2019; the amount for cases filed before that date is $1,184,200). While that might seem like a lot, a person, family, or a sole proprietor of a business owning more than one piece of property could easily have mortgages exceeding that threshold. For instance, in certain expensive real estate markets, a single middle-class family home could have a mortgage that size. It’s more likely that a Chapter 13 debtor will have a problem with the secured debt limit than the limit on unsecured debt. Strategies to Meet the Chapter 13 Bankruptcy Debt LimitsIf it looks like your debts exceed the Chapter 13 debt limits, you still might be able to file for Chapter 13. You are not eligible to file for Chapter 13 bankruptcy if your debts exceed a certain amount. That is, if you have too much debt, you can’t use Chapter 13. But, if upon first glance, it appears that your debts exceed the limit, take a closer look. You may be able to exclude certain debts from the calculation or use other strategies that will bring your debts below the limits. What Are the Chapter 13 Debt Limits?You are not eligible to file for Chapter 13 bankruptcy if the total of your non-contingent, liquidated debts exceed the limits set by the bankruptcy law. The limit amounts change every three years. As of April 1, 2019, if your secured debts (mortgages and liens) add up to more than $1,257,850 or your unsecured debts add up to more than $419,275, Chapter 13 may not be available to you. If it seems like your debts are too high, you might still qualify for Chapter 13. Here’s why: Determine Which Debts Don’t Count Towards the Debt LimitYou must list contingent and un-liquidated debts in your bankruptcy papers but they do not count toward the debt limits. Divide Debts into Secured and Unsecured PortionsWith lien stripping and cram down you remove a lien, or part of a lien, from secured property in bankruptcy. The portion of the removed lien is converted to unsecured debt. In this way, you increase your unsecured debt amount, but decrease your secured debt amount. This might help you stay under the debt limits. If You Still Don’t Qualify, Consider Chapter 20 BankruptcyChapter 20 bankruptcy is a two-step strategy to deal with your debts in the bankruptcy court. It can help if you really need a Chapter 13 (for example, perhaps you want to keep your home or car and need Chapter 13 to catch up on back payments, or maybe you have debts that will be wiped out in Chapter 13, but not Chapter 7) but your debts are too high to qualify. Claim Expanded Debt Limits in Joint CasesIf you are a married couple filing a joint Chapter 13 bankruptcy, some courts will expand the debt limits. Others, however, won’t allow for any expansion. If your court is more flexible on the debt limits when it comes to joint Chapter 13 bankruptcies, this is likely how it will work: If you each qualify for Chapter 13 separately, the court will allow the Chapter 13 case to proceed (even if your debts taken together are above the limits). This does not mean that you have to file two cases, but it does mean that each spouse must have a source of income that could support a Chapter 13 plan and each spouse’s debts, individually, must not exceed the Chapter 13 debt limits. To determine the amount of debt, each spouse must include joint debt in its full amount along with that spouse’s individual debt. 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
Ascent Law LLC
The post What Is The Unsecured Debt Limit For Chapter 13? first appeared on Michael Anderson.
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Is Utah A Spousal Consent State? South Jordan Utah Divorce Attorney Can An Executor Withhold Money? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-is-the-unsecured-debt-limit-for-chapter-13/ |
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