What is Private Placement Memorandum (PPM)?PPMs are disclosure documents used by small businesses raising money through private securities transactions. A private placement memorandum (PPM) is a legal document provided to prospective investors when selling stock or another security in a business. It is sometimes referred to as an offering memorandum or offering document. A private placement memorandum may also be called an offering memorandum (OM), confidential offering memorandum (COM) or confidential information memorandum (CIM). A PPM is similar to a business plan, although it focuses much more on legal issues. The primary purpose of a PPM is to disclose to prospective investors the terms of a potential investment and primary risk factors involved in making the investment. A PPM also usually contains a considerable amount of information about the business opportunity, structure and management. It is less sales-oriented than a traditional business plan, partly because business lawyers typically create them. A PPM is used in “private” transactions when the securities are not registered under applicable federal or state law, but rather sold using one of the exemptions from registration. The PPM describes the company selling the securities, the terms of the offering, and the risks of the investment, amongst other things. The disclosures included in the PPM vary depending on which exemption from registration is being used, the target investors, and the complexity of the terms of the offering. A PPM must contain accurate, truthful and current information. While many PPMs share some similarities, they are all completely customized and unique to each investment deal. For example, a well-prepared PPM will avoid using formulaic risk factors. Instead, they will detail the specific risks associated with the company’s industry, such as market trends, competitive analysis, or regulatory and tax issues. In addition, a well-prepared PPM will avoid sales/revenue projections, especially overinflated ones, that are not based on expected reality and that are the exception. Investors will likely expect you to achieve those financial targets, and the SEC will closely scrutinize such performance forecasts set out in the PPM. Whether a company needs to use a PPM or not, and the amount and type of information in the PPM, will, in general, depend on; What to Include in a Private Placement Memorandum (PPM)?All security transactions are subject to the anti-fraud provisions of the federal securities laws – meaning you cannot make false or misleading statements regarding the company, the securities offered, or the offering. The basic notion behind the PPM is to fully inform the prospective investor about all aspects of the business, management, prior financial performance, and future prospects, as well as the risks involved. Some business owners worry about filling up the document with too much “legalese.” However, if the company is engaging with experienced investors they will be familiar with these disclosures and in many cases will expect it as a reflection of the professionalism of the business. Although applicable law may allow for different disclosure requirements based on a variety of factors, best practice for PPMs dictates certain information disclosures even if not required. Most PPMs are drafted in a similar format. Here is a summary of typical components found in a PPM. Meaning of Private Placement UnitsPrivate Placement Units means the Units to be purchased by the undersigned immediately prior to and subject to the consummation of the Company’s IPO, as set forth in that certain Unit Subscription Agreement, dated as of June 21, 2007, by and between the Company and the undersigned or the units, including the warrants and the shares of Common Stock issued in, or issued upon exercise of the warrants included in, any units sold to the Initial Stockholder pursuant to that certain Amended Private Placement Purchase Agreement and any warrants, shares of capital stock or other securities of the Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of such Private Placement Units or underlying securities (the units in the Private Placement and the initial public offering to be identical except that the warrants included in the Private Placement Units provide for a cashless exercise upon redemption of such warrants). Types of Private Placement MemorandumsThere are many varying types of private placement memorandums. The type of offering will determine the specific nature of the PPM. The two-main private placement offering memorandum documents used throughout the world are an equity private placement or a debt private placement. • Equity: In an equity offering, a company will sell an ownership stake. The most common type of equity private placement memorandum is one that sells shares or stock in a company. In addition, a limited liability company (LLC) or a limited partnership (LP) may sell units, or limited partnership interests of the company. Some issue sweeteners, like preferred shares or preferred stock. How much does a PPM cost?$10,000 – $40,000 is the estimated legal fees for preparing a Private Placement Memorandum (PPM) or other formal disclosure document. Besides the obvious answer to your question (that’s what the market will bear), PPMs are generally risky and securities lawyers are some of the most expensive type of lawyer. However, please keep in mind that you might not need a PPM and might be able to reduce some of those legal fees by relying upon another securities law exemption or reviewing some of the factors that affect price, below. Sections of a Private Placement MemorandumThere are many features and sections that go into the writing of a private placement memorandum that is geared for raising capital. Here are just a few segments of the PPM: A Business Plan versus a PPMA business plan and a PPM serve different functions. A business plan is primarily a marketing document created to promote a company. It purposely contains forward-looking information. For example, the plan will outline market demand, customer profiles, growth opportunities, competitive landscape, revenue channels, and potential strategic partners. A PPM is primarily a disclosure document that is descriptive but not persuasive in its style and allows the investor to decide on the merits of the investment. The presentation of the PPM is more factual and concrete. It must address external and internal risks facing the company. A PPM may indirectly serve a marketing purpose if it is professional looking and thorough. A well drafted PPM will balance disclosure requirements with marketing elements designed to sell the deal. Securities LawA private placement memorandum is meant for an issuing company to be compliant with both state and federal laws, no matter where the PPM is issued. A company selling securities wants to ensure they do not break any laws when approaching investors and are exempt for registration requirements. For an investor to make an educated decision the PPM should contain all the noted data above, including financial projections and past financial performance and of course the risk factors of the business and industry. Risk factor information will not scare away experienced investors who are most likely well aware of such language being placed in a private placement memorandum. The important thing is make sure your company is compliant with securities laws and regulations when raising capital. 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!
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What To Know Before Selling Your recently Purchased Home What Stricter Divorce Laws Could Do For Our Families What Should You Not Do Before Filing Bankruptcy Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/what-is-the-meaning-of-ppm-in-water/
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If you’re considering filing for bankruptcy, you won’t want to make innocent or accidental errors that could hurt your bankruptcy case. Avoiding these common mistakes can preempt creditor and trustee challenges and help ensure that your bankruptcy case moves through the process smoothly: Because you’ll want to avoid mistakes after filing your Chapter 7 case too, you’ll also find tips for successfully navigating the bankruptcy process. The bankruptcy court will examine past transactions made within a specified period before you file. The “look back” period is usually one to two years but can be up to ten years. Many mistakes can be avoided simply by delaying the filing of your bankruptcy until these periods have expired. But that’s not always the case, so it’s important to talk with a bankruptcy lawyer to avoid potential allegations of bankruptcy fraud. Many consumers think that transferring their assets to their mothers’ bank accounts, or putting them in their wives names, will protect them. But moving assets out of your name won’t protect them from the reach of the bankruptcy court. Worse, such transfers could lead a bankruptcy court to find that you have committed bankruptcy fraud even if you transferred the property innocently, without any intention to conceal assets. A few examples of transfers that might get you in trouble include: Many consumers move property or funds out of their name for fear of losing them in bankruptcy. However, having assets does not mean that you cannot file a bankruptcy or will necessarily lose them. An attorney will be able to tell you the best way to deal with assets that you fear may be exposed when you file for bankruptcy, including how to protect property using bankruptcy exemptions. Avoid Favoring Creditors Before a Bankruptcy FilingMany consumers want to “do the right thing” and pay certain creditors in full before filing for bankruptcy. For example, they might want to make sure mom’s loan gets paid or that the friendly people at Discover get paid in full. These transactions are prohibited. You certainly can pay your bills as you would in the ordinary course. If you incur $100 on American Express this month, you can pay it off next month. However, you cannot make an out of the ordinary payment to your favorite creditor while not paying others. These payments are called preferential transfers and may trigger a “clawback” lawsuit. The bankruptcy court trustee responsible for administering the case sues the entity or person to get the money back in bankruptcy clawbacks of preferential and fraudulent transfers. Avoid Making Credit Card Purchases Before a Chapter 7 FilingUnless you need to incur extra credit card debt for the necessities of life, such as gas, housing, or food, you should stop using your credit cards altogether. If you buy luxury purchases on credit shortly before bankruptcy, you risk a creditor objection to the debt’s discharge. You can continue to use debit cards. Find out when to stop paying your credit cards. Avoid Depositing Unusual Amounts Before Filing BankruptcyYou won’t want to deposit any money which is not considered salary or payment to you into your bank account. Examples would be depositing money in your account as a favor to others, or which is not your money. Consumers with small businesses should refrain from conducting transactions for the company using personal accounts. You’ll likely have a difficult time proving that the funds weren’t yours, and it might cause a problem with your ability to pass the means test and qualify for Chapter 7 bankruptcy. Learn more about bank accounts in bankruptcy. Be Wary of Suing People Before Filing Chapter 7Any legal claim you have is an asset in your bankruptcy case, even if the matter is unresolved or if the amount you’re entitled to hasn’t yet been determined. Even claims that you have against others you haven’t acted on are property of the bankruptcy estate. If you have a pending legal claim (whether it’s a lawsuit or not), talk to a lawyer before filing for bankruptcy. Avoid Filing Bankruptcy If You’ll Receive Future PaymentsFunds that are not actually in your possession but which you expect to get in the future are part of your bankruptcy estate. If you are filing for Chapter 7 bankruptcy, the Chapter 7 trustee can take this money and use it to repay your unsecured creditors. Examples include agreeing to accept a future bonus at work, getting an inheritance you’ll receive in the future, or filing tax returns that entitle you to a refund. If you anticipate receiving any payments or money in the future, talk to a bankruptcy attorney. Making mistakes during the bankruptcy filing process can complicate your bankruptcy case, especially if you’re a self-represented debtor. Avoid Filing Under the Wrong Bankruptcy ChapterMost individual debtors file for either Chapter 7 or Chapter 13 bankruptcy. But each type of bankruptcy has benefits and drawbacks. The type you file will depend on your financial circumstances. Learn whether you should file for Chapter 7 or Chapter 13 bankruptcy before filing your case. Avoid Failing to Complete Bankruptcy Education RequirementsIf you want to file for bankruptcy and receive a discharge, you must complete credit counseling and debtor education requirements. Avoid Filing the Wrong Bankruptcy FormsWhen you file for bankruptcy, you must complete a packet of forms that includes your petition, schedules, statement of financial affairs, and other required documents. If you don’t have an attorney, it’s your responsibility to know which forms to file and how to complete them. You can obtain the official bankruptcy forms from the bankruptcy form page of the United States Courts website. Your bankruptcy court may also require you to fill out additional local forms. Find an overview of the bankruptcy forms with links to downloadable versions. Avoid Failing to Follow Bankruptcy Rules and ProceduresEach bankruptcy court has its own set of local bankruptcy rules and procedures each debtor must follow. Also, after you file your case, you must provide your bankruptcy trustee with certain supporting documents (such as pay stubs and tax returns). Your bankruptcy trustee might also have additional requirements or guidelines to satisfy. If you don’t follow all of the local rules in your area, it can cause delays or even lead to your case’s dismissal. In most cases, you can find your bankruptcy court’s local rules by going to its website. To find your local court, go to the Federal Court Finder. Avoid Using the Wrong Bankruptcy ExemptionsBankruptcy exemptions allow you to keep a certain amount of property in Chapter 7 bankruptcy and reduce the amount you pay to unsecured creditors in Chapter 13. But you must conduct a fair amount of research to learn about: Exemptions are significant because they can make the difference between keeping or losing an asset in bankruptcy. For this reason, make sure to research your state’s exemption laws carefully before filing your case. Avoid Failing to Attend the Meeting of CreditorsTypically 20 to 40 days after you submit your bankruptcy case, you must attend a required hearing called the 341 meeting of creditors. At the 341 hearing, the bankruptcy trustee (and any creditors who choose to participate) can ask you questions under oath about your bankruptcy and financial affairs. The court will mail you a notice containing the date, time, and location of your meeting of creditors. If you don’t go, the court will usually dismiss your bankruptcy. Even if you want to file on your own, talking to a bankruptcy attorney before filing your case can help you discover hidden dangers and avoid mistakes. Many bankruptcy attorneys offer free consultations and can provide you with valuable information about the bankruptcy process. For this reason, it’s generally a good idea to consult a bankruptcy attorney before filing your case. Bankruptcy works well to wipe out debt; however, you’re only entitled to receive a bankruptcy discharge the order that wipes out your debt every so often. So it’s a good idea to examine whether now the time is or whether you might need to file sometime in the future. Specifically, you can receive a Chapter 7 discharge: During the waiting period, you might find yourself facing an even more severe financial problem. For instance, if you’re suffering from an illness and accumulating medical debt, you’ll probably want to hold off until your condition stabilizes. Also, be aware of other common problems that can crop up, including unemployment, eviction, foreclosure, and car repossession. If you already filed a Chapter 7 bankruptcy, you wouldn’t be able to do so again. A creditor could garnish your wages (take money out of your paycheck), levy (seize) the funds in your bank account, or take valuable property. Less effective Chapter 13 bankruptcy options would likely be available. Depending on how long it had been since you filed Chapter 7, you might not be entitled to another discharge. And, not only would you’d have to have sufficient income to qualify, but you’d be required to pay all of your discretionary income the amount left over after subtracting allowed living expenses over a three to five-year repayment period. Sometimes, however, it’s in your best interest to file for bankruptcy quickly. For instance, in most cases, if you have a wage garnishment in place, the sooner you file, the more money you’ll have to pay bills. You’ll also want to file quickly when a creditor has a lawsuit against you. Your attorney will examine the complaint to determine whether it includes a fraud allegation. If so, the best bet will likely be filing for bankruptcy before the case goes to judgment. If the matter goes to judgment, you probably won’t be able to wipe out the debt in bankruptcy. Also, once a creditor wins a money judgment, the lien rights that accompany it will allow the creditor to garnish your wages, attach your bank accounts, repossess your car, and foreclose on your house. In most cases, if you file for bankruptcy before the creditor wins the case, the bankruptcy will stop the pending lawsuit and wipe out the debt. You should be aware that bankruptcy offers limited protection against liens, so it’s usually good to file your case before the creditor receives a judgment and liens attach to your property. Because this is a complicated area, if you’ve been served with a lawsuit, you should contact a bankruptcy lawyer as soon as possible. On 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. Suppose you knowingly misrepresent your information, such as by failing to disclose an asset. In that case, you could be subject to criminal penalties, including fines of up to $250,000, twenty years in prison, or both. 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 find an appropriate solution to your problem. If you’re not sure about your actions’ potential ramifications, talk to a bankruptcy attorney first. While 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. Filing for bankruptcy is a major undertaking. It requires an evaluation of all a person’s finances, property, and assets. It also involves following a strict legal process and having a thorough understanding of the applicable laws. Therefore, if you intend to file for bankruptcy, it is strongly recommended that you hire a local bankruptcy lawyer for further guidance. An experienced bankruptcy lawyer will already be familiar with the filing process and relevant laws. Your lawyer can help you assess your options, explain the potential benefits or risks, and assist you in preparing and filing all necessary paperwork. Your lawyer will also know what type of bankruptcy you should file for and can represent you at any bankruptcy proceedings. When you’re experiencing financial stress, it’s tempting to do whatever it takes to alleviate the pressure. But most people find that a bankruptcy case goes more smoothly with a bit of planning. Bankruptcy works well to wipe out debt; however, you’re only entitled to receive a bankruptcy discharge the order that wipes out your debt every so often. So it’s a good idea to examine whether now the time is or whether you might need to file sometime in the future. Specifically, you can receive a Chapter 7 discharge: Suppose you knowingly misrepresent your information, such as by failing to disclose an asset. In that case, you could be subject to criminal penalties, including fines of up to $250,000, twenty years in prison, or both. 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 find an appropriate solution to your problem. If you’re not sure about your actions’ potential ramifications, talk to a bankruptcy attorney first. If you ran up debt during the 70 to 90 days before filing bankruptcy, beware (unless it was for life necessities, 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. While 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. The court ensures that creditors get their share 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.) Suppose the court discovers that you transferred property in an attempt to avoid paying a creditor or broke another bankruptcy rule. In that case, the court will unwind the transaction and disperse the recovered funds to the creditors. Once complete, you must sign a statement declaring under penalty of perjury that the information provided is accurate. Being forthright is essential because any attempt to defraud the court comes with severe consequences. The punishment for making false statements or failing to disclose property can be up to 20 years in prison, a fine of $250,000, or both. If you pay back loans to friends or relatives within one year of filing, or even other creditors within 90 days of filing, then this may be considered a preferential transfer. A preferential transfer can be “undone” in bankruptcy. The bankruptcy trustee may file an adversarial proceeding to get the money back from the person or entity you paid and then disburse the funds in equal shares amongst all of your creditors. If you paid an ordinary creditor, then that might not matter to you. However, you might care if the trustee sues your mom or sister to get the money back. Don’t File When You are About to Receive Substantial AssetsYou should reconsider filing bankruptcy if you are about to receive an inheritance (within one year), a significant income tax refund, a settlement from a lawsuit, or repayment of a loan you made to someone else. Why? Because once you receive the funds, you might not be bankrupt especially if you could use this money to settle with creditors and get out of debt on your own. If you find yourself in this situation, consult with a bankruptcy attorney to discuss your options. 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. However, if you’re supposed to file taxes 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. Reasons to File for BankruptcyThere are some circumstances in which filing for bankruptcy may be your best (or only) recourse: Negative Impacts of BankruptcyFiling for bankruptcy is sometimes the right decision, but it is not without consequences. Those include: How Much Does Bankruptcy Cost?Another consideration is the cost of filing for bankruptcy. Filing typically costs a couple of hundred dollars, but hiring an attorney to represent you and protect your interests could cost a great deal more. Although individuals can act on their own behalf without an attorney, by going it alone you run the risk of losing certain rights or property. Generally speaking, because of their knowledge of bankruptcy law and experience with the courts, an attorney can be worth the money. As mentioned above, bankruptcy will remain on your credit reports for years into the future, and those reports may be consulted by potential lenders, insurance companies, landlords, employers, and others. You can’t do anything to remove the information ahead of schedule, but it’s worth checking to make sure that it’s accurate and doesn’t cast you in an even more negative light. You are entitled to at least one free report each year from each of the three major credit bureaus—Equifax, Experian, and TransUnion—through the official, federally authorized website, Annual Credit Report.com. If you find any errors on a report, you should ask that that they be corrected. Aside from your credit report, bankruptcy is also a matter of public record. So bear in mind that anyone can request a copy of the filing. Because your credit is severely damaged by bankruptcy, you may find it difficult to borrow if you need to, including a loan to buy a car or a mortgage to buy a home. It will also be difficult to obtain a conventional credit card. One alternative is to apply for a secured credit card, where you deposit money with the card issuer to back up your line of credit. If you use the card judiciously, making all your monthly payments on time, you may soon qualify for a regular, unsecured credit card. A secured credit card is often recommended as a tool for rebuilding a damaged credit record. 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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What’s Consiia Fixture When Selling A Home? What To Know Before Selling Your Recently Purchased Home What Stricter Divorce Laws Could Do For Our Families Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/what-should-you-not-do-before-filing-bankruptcy-2/ If you are considering a divorce in Utah, it is important to understand the divorce laws and how they apply to your situation. This guide will help you understand the rules and procedures so that you can equip yourself with the information you need to get through divorce in Utah. Equitable Distribution and Asset DivisionUtah is an equitable division state. This means that property is divided fairly and equitably, although not always equally. The court can divide all marital property regardless of which spouse holds title to the property or where it is located. Before assets can be divided, it must be determined which assets are separate and which assets are part of the marriage. In general, assets acquired during a marriage through a date of separation are considered marital property, except in some cases of gifts or inheritance. Deciding what a fair distribution of property is includes several factors, such as how long the marriage has lasted, the age and health of the parties, their occupations, the amounts and sources of income and related matters. Each party gets to keep their non-marital property, unless that property has been combined with marital property or is used in such a way that it takes on the legal status of marital property. DebtsDebts in Utah must also be divided in a divorce. Both spouses are equally responsible for joint debts that are incurred for a family purpose during the course of a marriage (such as buying a house or a car). However, in some cases, the person who keeps the property after divorce will be responsible for paying off the debt. Gifts and Inherited PropertyWhen one spouse receives a gift or inheritance in Utah, it is considered separate property and not subject to equitable distribution. But if a spouse commingles a gift or inheritance with marital assets, it can become part of the marital assets of a marriage. For an asset to continue to be claimed as separate property, a spouse should be prepared to provide evidence that the asset is indeed separate property and has not been commingled with marital assets. A way to protect a gift or inheritance is to have a spouse sign a pre- or postnuptial agreement agreeing that the asset belongs exclusively to the other spouse, no matter how it is used in the marriage. Pensions, IRAs, 401Ks and Retirement PlansAs a general rule, any funds paid into a retirement account from the date of marriage through the date of separation are considered marital assets. If both spouses have retirement or pension plan benefits, each will be awarded their own benefits. Utah courts have recognized that it is best for the spouse who contributes to the retirement or pension plan to receive all of the benefits and for the other spouse to receive something of equal value, such as equity from the home or cash or other property. If there is nothing of equal value to give to the other spouse, then the retirement benefits may have to be split. This is done by having an attorney or a specialized firm create a qualified domestic relations order, more commonly referred to as a QDRO. The QDRO must be approved by the courts and then it is submitted to the plan administrator who must also approve it. This establishes that a spouse can be considered an alternate payee, and the account is divided according to the specific written instructions of the QDRO. Spousal Support in UtahAlimony is sometimes known as spousal support in Utah. It can be granted before, during or after a divorce takes place. Either spouse can request alimony which may be granted temporarily or for a longer period of time after a divorce takes place. According to state laws, the court may consider the following and other factors when deciding whether to award alimony: Child Support in UtahBoth parents are legally responsible for supporting their minor children in Utah. This obligation continues until a child turns 18 or has completed high school, whichever is later. If a child has special needs or is disabled, this obligation may extend even further. Utah law establishes Child Support Guidelines to calculate a parent’s child support obligation. The exact amount is driven primarily by each parents’ income. The guidelines have three components: Child support is calculated by a formula established by Utah Code Section 78B-12-301. The courts have fill-in-the-blank Child Support Worksheets to help you calculate child support and an interactive web Child Support Calculator that will make the calculations and prepare the worksheets for you. The calculations are different depending on the custody arrangements. If a health care policy is available at a reasonable cost, that premium will be shared by both parents. Parents are also required to share work-related child-care expenses equally. Courts have discretion to deviate from guidelines if a valid reason can be presented by either side. Child support payments can be made between parents or through the Office of Recovery Services (ORS). ORS also helps establish and enforce financial and medical support for children. When parents do not obey child support guidelines, they can be held accountable through various legal means. The enforcement order can include a judgment for money owed. The court may also find a party in contempt of court and order the party to pay a fine or serve time in jail. Child Custody in UtahCourts based child custody in Utah based on a child’s best interests. There are several factors that are used to determine what those best interests are, but a judge will not give preference one way or the other based on a parent’s gender. Some of the factors include: Substance AbuseSubstance abuse is a fault-based ground for divorce in Utah. Although it is more difficult to prove than in a no-fault divorce, some spouses may choose to go this route because it can have a profound impact on child custody issues. When drug or alcohol abuse is present, Utah courts can deny or limit child custody and visitation rights in an effort to protect the children to the highest degree possible. Divorce ProcessDisclosing AssetsDisclosing assets is required in Utah so that an equitable distribution of assets can take place. Once information has been disclosed, there is a legal obligation to update information as it changes or becomes available. According to Utah law, parties must disclose: Spouse’s DefaultWhen a spouse is served with papers in a divorce in Utah, they have 21 days to file a response (30 days if served outside the state). If a party does not answer a complaint within the allotted timeframe, the other party can seek a default judgment. This means a spouse will forfeit their right to contest any terms of the divorce, including issues such as child custody, support, alimony and a division of assets and debts. In some cases, it may be possible to seek an extension, such as if there is a health or family emergency. The Servicemembers Civil Relief Act creates special rights for service members. One of those rights is to protect against default judgments in civil cases that the service member may not be aware of. Domestic ViolenceWhen domestic violence is present in a Utah marriage, it can have serious consequences on how child custody and visitation is determined. If a parent has committed domestic violence or if there is a temporary restraining order in place, the court can either order supervised visitation or completely deny access to any children in the marriage. The courts may also allow visitation but will rule on whether or not a third party should make the transfers between parents. In all cases, is domestic violence is imminent, a victim should call the police. After vacating a residence, it is possible to ask a court for an order of protection to legally keep a spouse away from you either before a divorce action begins or during a divorce already in progress. Health InsuranceParents going through a divorce in Utah are required to maintain health insurance for their minor children. This will continue after a divorce takes place as well. However, most private insurers will not continue to cover an ex-spouse after a divorce. A spouse will either need to negotiate coverage as part of a settlement or seek coverage through other means. Infidelity and AdulteryWhen a spouse has sex voluntarily with someone other than their spouse while they are still married in Utah, this can be used as one of the fault-based grounds for getting a divorce. Infidelity does not really alter the outcome of a divorce in a major way other than when dividing marital property or determining alimony. It is one of the fault-based reasons that can influence how alimony is awarded. In some cases, infidelity may also impact custody and parenting decisions. Moral conduct is one of the factors a court can consider in determining who should be the primary custodial parent. Utah courts want to place children in the most stable environment available. New relationships that have not withstood the test of time place the child at risk of further change in the future. Military Divorces in UtahThere are specific rules and processes that govern how military divorces are handled in Utah. Some elements are the same as a civilian divorce, but other elements are different. To start, you or your spouse must either live or be stationed in Utah so that proper jurisdiction can apply. The same grounds that apply for a civilian divorce also apply for a military divorce. You can cite either no-fault or fault-based grounds. When a spouse is in the military, they are protected by the Soldiers and Sailors Civil Relief Act. This allows them to postpone the divorce while they are overseas or otherwise not able to adequately respond to the petition due to military service commitments. A servicemember can choose to waive delaying the divorce by signing paperwork that will allow the divorce to proceed uncontested. A division of retirement benefits are governed by the Uniformed Services Former Spouses’ Protection Act. This legislation directs how a former servicemember’s retirement benefits should be divided after divorce. A key element is that the former spouse must have been married to the former servicemember for a minimum of 10 years while the military member has served on active duty. Child support and spousal support are determined by Utah state guidelines. But federal law dictates that these awards may not exceed 60% of a servicemembers pay and allowances. 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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When Is Bankruptcy Claim Contingent, Unliquidated, Or Disputed? What’s Consiia Fixture When Selling A House? What To Know Before Selling Your Recently Purchased Home Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/what-stricter-divorce-laws-could-do-for-our-families/ The home selling process is the same whether it’s for sale by owner or you’re hiring a listing agent. Certain details can vary a little from state to state, but this checklist can serve as a general guide. Just be sure to confer with a local professional for details on specific requirements in your state. Choose a Listing AgentA listing agent represents you and has a fiduciary responsibility to look out for your best interests. Interview agents and meet with at least three of them as you make a decision. Try to hire based on experience. Ask questions about your listing agreement, including the length of time the home will be listed and the commission you will pay for the agent’s services. Will you also be paying the buyer’s agent commissions? (Most traditional agreements require it) Find Out How Much Your Home Is WorthA seller’s greatest mistake is often overpricing her home. Keep your price in line with sold homes that have been identified in a comparative market analysis report. Consider whether your market is hot, cold, or neutral and price the home accordingly. Get Your Home Ready for SalePrepare your home for sale by cleaning and decluttering it and improving curb appeal. You might want to consider hiring a professional stager to stage your home for showings or ask your real estate agent for help or ideas. You can often use your furniture. Make any necessary repairs and consider a pre-listing, seller’s inspection3 to identify any potential problem areas. If you’re selling a home with pets, you might want to make temporary living arrangements while you show the house. Remember, you only get one chance and sometimes only three seconds or so to make a great first impression. Make it count. Market Your HomeYou or your agent should identify the selling points of your home and choose the best advertising words to convey them. Approve your agent’s marketing campaign or figure out how to advertise your house for sale yourself. Hire a virtual tour company to take quality photographs and put a virtual tour online if possible. You should also confirm that your listing is posted online. You or your agent should saturate the internet and social media with photographs and descriptions of your property. Show Your HomeYou’ll get more showings if you let agents use a lockbox or keypad to show your home rather than force them to make appointments. If you are opting for appointments, try to be flexible. Some buyers will want to see the home on weeknights (after work) and all across the weekend. Be as accommodating as possible. Prepare for an open house, but use this approach sparingly. If you do one, be sure to ask for buyer feedback so you can adjust your price, condition, or marketing campaign accordingly. Receive Purchase Offers and NegotiateBe prepared to receive multiple offers if your home is priced right. Don’t ignore any offers, even if it seems too low. Negotiate by making a counteroffer. Consider making a counteroffer that’s contingent on you buying a home if market conditions warrant it. And don’t be afraid to make a full-price counter offer if your price is competitive and it’s backed up by comparable sales. You can also ask for a kick-out clause or right of first refusal if the buyer’s offer is contingent on selling a home. This contingency ensures that you won’t wait around too long if the buyer can’t offload their property. Open Escrow and Order TitleYour agent or transaction coordinator will open escrow and order a title policy for you. Write down the contact information for the closing agent, and select a date to close based on when the buyer’s loan will fund. Schedule an AppraisalClean the house the day before the appraiser arrives. If you receive a low appraisal, ask your agent about alternatives. You’re typically not entitled to receive a copy of the appraisal because you didn’t pay for it. If the buyer decides to cancel the contract based on an appraisal, ask your agent or lawyer about your rights. They’ll need an appraisal contingency in the contract to pull out. Cooperate With the Home InspectionNow get ready for the home inspector. Ask your agent to provide you with a home inspection checklist, so you’ll know in advance what the inspector will want to see. Prepare the attic and basement for inspection, too. Move stuff away from the walls in the garage, and make sure there’s a clear path for the inspector to get through. If your contract calls for a roof certification, hire a reputable company to conduct the inspection. Keep in mind that states that allow for termite or pest inspections will often make these reports a matter of public record. The buyer may also request a sewer inspection if your home is older. Deliver Seller DisclosuresIf you’re aware of any other material facts or problems with the property, you must disclose them using a seller’s disclosure form. Your title company should provide the buyer with the covenants, conditions and restrictions for your community or the homeowner’s association, if necessary. Negotiate Requests for RepairYou don’t have to accept a buyer’s request to make repairs, but they may back out of the deal if you don’t (as long as they have an inspection contingency in place). In some cases, a buyer might accept a closing cost credit instead of an actual repair. This credit essentially lowers the sales price, giving them cash to make the repairs on their own once they assume ownership. Ask the Buyer to Release ContingenciesIf the buyer had any contingencies in their contract, ask them to “release” them, meaning affirm that they have been resolved. The buyer isn’t obligated to provide a contingency release if you don’t demand it. In some states, you might have a right to cancel the contract if the buyer will not provide a release. Sign the Title and Escrow DocumentsDepending on where you’re located, you might sign escrow documents shortly after opening escrow, or you’ll sign them nearer to closing. It’s common in some states for everyone to sit around the table buyers and sellers so ask your agent about the norm in your location. Find A Great Real Estate AgentThink you can sell your home yourself, and pocket the cash you would otherwise pay a real estate agent? It can be tempting, especially in a hot market, but resist the urge. A “for sale by owner” transaction is almost always a disaster, leading you to sacrifice both money and time. That’s why one of the most important things to do before selling your house is find a great real estate agent. That said, don’t just blindly hire the real estate agent who most recently sent you a flyer or the one your uncle’s friend’s co-worker’s cousin used. Do some research to find a real estate agent who is knowledgeable about your specific market, and then interview her to make sure she’s a good fit. Your real estate agent should be someone you feel comfortable working with, whom you trust to sell your house for top dollar. Don’t be afraid to talk to a few real estate agents before picking one. Consider Your Curb AppealYes, for better or worse, buyers do tend to judge a book by its cover. You want to make sure potential buyers’ first impression of your home is a good one and inspires them to stop by the open house or schedule a tour so they can see more. By investing some effort in relatively easy fixes, like planting colorful flowers and repainting your front door, the outside of your house can beckon prospective buyers to come on in. If you’re not sure how to improve your home’s curb appeal, ask your real estate agent for advice on how others in your area have improved the exterior before selling their houses. Declutter Living AreasLess is definitely more when it comes to getting your house ready to show. Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards since virtually nothing is off-limits for curious buyers. If the house is overflowing with stuff, buyers might worry that the house won’t have ample space for their own belongings. They won’t sign up to pay a mortgage if they think they’ll also have to rent a storage space. Take your excess stuff and donate it, or pack it up to be stored off-site. Not only will clearing clutter help your house look more appealing to buyers, it will also help you once you’ve accepted an offer and it’s time to move into a new home. Moving out will be easier if some of your stuff is already be packed. Depersonalize Your SpaceSellers should remove any distractions so the buyers can visualize themselves and their family living in the property. Sellers should remove personal items and family photos, as well as bold artwork and furniture that might make the home less appealing to the general public. The goal is to create a blank canvas on which buyers can project their own visions of living there, and loving it. Repaint Walls To Neutral TonesYou might love that orange accent wall, but if it’s your potential buyer’s least favorite color, that could be a turnoff. “You’re pretty safe with a neutral color because it’s rare that someone hates it, but the other benefit is that a light color allows [buyers] to envision what the walls would look like with the color of their choice.”It’s the seller’s job to help buyers picture themselves in the house. If they don’t feel at home, they’ll probably look at other real estate options. Touch Up Any Scuff MarksEven if you’re not doing a full-on repainting project, pay special attention to scrubbing and then touching up baseboards, walls, and doors to make the house sparkle and look cared-for. Selling almost any home can be tricky, but selling a home with lots of little problems and small repair needs can be downright difficult. When buyers walk into an open house, or go on a home tour, they want to fall in love with the house, not add a bunch of small repairs to their to-do list. In order to impress buyers (and sell your house quickly), fix up your house before putting it on the market. With homes that is fixed up and move-in ready, you will probably see more interest, and may even see multiple offers. Fix Any Loose HandlesIt’s a small thing, sure, but you’d be surprised by the negative effect a loose handle or missing light bulb can have on a buyer. For a buyer, submitting an offer, and later committing to a mortgage, is a big deal. When you’re selling your home, you don’t want to give any buyers doubt that your house will make a great home. Add Some PlantsWhen staging your house, remember that green is good: Plants create a bright and more welcoming environment. You might also want to consider a bouquet of flowers or bowl of fruit on the kitchen counter or dining table. Some plants and natural elements will impress buyers by bringing some extra color and life to your decor. Conduct A Smell TestFoul odors, even slight ones, can be a deal breaker, and the problem is that you might not even notice them. If the smells are pervasive, prepare to do some deep cleaning as many buyers are on to seller’s “masking techniques” such as candles or plug-in room deodorizers. Plus, covering up odors with a stronger scent might backfire if the buyer doesn’t like the smell of lavender or artificial citrus. Clean, Clean, CleanOnce you’re done cleaning your house, clean some more. Even if you’re not worried about what buyers will think of your home’s scent, you want your property to look spotless. Think of it this way: You’ll probably have professional photos taken of your house when it looks its best. Naturally, you’ll want your house to always look like it does in those pictures. When selling your home, it’s important to keep everything tidy for buyers, and you never know when a buyer is going to want to schedule a last-minute tour. Remember to take special care with the bathroom, making sure the tile, counters, shower, and floors shine. 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 To Know Before Selling Your Recently Purchased Home first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Which Law Firm Is Best For Estate Plans In Utah? When Is Bankruptcy Claim Contingent, Unliquidated, Or Disputed? What’s Consiia Fixture When Selling A House? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/what-to-know-before-selling-your-recently-purchased-home/ Should it stay or should it go? Whether you’re moving into a new home or moving out of your old one, you might be wondering which items stay with the home and which ones can go with the previous owner to their new home. The question of fixtures versus personal property can be a contentious topic of debate among the parties involved in a real estate transaction. Sometimes, it can even be a deal killer. Typically, the purchase agreement will list which fixtures are included. However, problems can still arise, and spelling it out in the contract doesn’t always prevent sellers from getting surprise calls on final walkthrough day letting them know that they weren’t supposed to take that expensive chandelier they’d planned on installing in their new home. To avoid issues that could potentially sour their home sale or purchase, it’s important that buyers and sellers familiarize themselves with the concept of real estate fixtures and what they are (and aren’t). Real Estate FixtureBecause determining if something is a fixture or personal property isn’t always obvious or intuitive, it can be a common source of conflict during home purchase transactions. Fortunately, there are a few commonly accepted guidelines that the pros use to settle disputes. The main guiding principle regarding whether something is a fixture or not has to do with its method of attachment. If an object is physically and permanently attached or fastened to the property, it’s considered a fixture. This includes items that have been bolted, screwed, nailed, glued or cemented onto the walls, floors, ceilings or any other part of the home. A classic example of this is a window treatment. Typically, things like blinds and shades are considered fixtures that must stay with the home because they’re physically fastened to the window frame. On the other hand, drapes and curtains that hang on a rod are usually classified as personal property. However, the rod that those drapes are hanging on would likely be considered a fixture, since it’s attached to the wall. Unless you’ve stipulated otherwise in the contract, if something would reasonably be a fixture, you can’t take it with you when you move. If you have fixtures in your home that you want to take with you when you move out, you may want to consider replacing those items before any prospective buyers see your property. Are Fixtures Considered Chattel Property Or Real Property?“Chattel” is another word for personal property, or a movable piece of property, like furniture, certain machinery or something as big as a trailer. Real property is the term often used for anything affixed to the property and the surrounding land. This can include the house itself, sheds, ponds, basketball courts and anything that couldn’t be easily removed from the property. In short, chattels are not fixtures, but real property is, as well as anything permanently attached to it. Whether or not an item would be considered a fixture isn’t always cut and dried, and each state or locality may have its own guidelines for what qualifies as a fixture. The main way to determine if something is a fixture is whether it’s attached to the home. Beyond that, it can get a little fuzzy, though there are still some tests to help determine whether an object is a fixture. The best way to head off disputes is to be very thorough and specific about what stays with the home in your purchase contract. MARIA and FixturesMARIA is an acronym used by some real estate professionals as an easy way to remember the criteria for determining if an item is a fixture or not. • “M” stands for “method of attachment.” When determining if an item is a fixture, look at how it’s attached to the home. Things that are screwed, glued or otherwise permanently affixed to the property are fixtures. FixturesThe following items are commonly left in the home after it’s sold: Non-FixturesThese items will typically go with their owners to their new home: Gray Areas For House FixturesEven with all this guidance to help us determine whether an item is, in fact, a fixture, disputes still happen – especially when it isn’t immediately clear whether an item is personal property or a fixture. Say you planted a beautiful garden in your front yard that you’ve lovingly tended to for many years. When you move out, you plan to dig it up to transplant to your new home. Can you do that? Some may say you can, but others may argue that it’s a part of the property, not your personal property. What if you’re a buyer who fell in love with a home for its beautiful front yard landscaping, complete with a gorgeous row of lush, colorful flower beds but come move-in day, the yard is all torn up from digging out the landscaping and the flower beds are nowhere to be seen? Who is right in this scenario? Often, it comes down to what was in the purchase agreement. The best way to avoid conflicts like this is to clearly communicate what each party wants and make sure the agreed-upon terms are included in the contract. Fixtures And Final WalkthroughsBuyers shouldn’t assume that something is going to be included with the home, especially if it’s something they are particularly interested in. If you had your eye on the built-in bookshelf since the first showing, make sure to ask about it during contract negotiations. If the seller takes with them an item that you had planned on remaining in the home, you can save yourself a lot of headache ahead of time by having in writing what stays and what doesn’t before the final walkthrough. When they’re first listing their home, sellers should work with their real estate agent to clarify what objects in their home qualify as fixtures. When working with prospective buyers, be clear about what’s included in the sale. Both parties should be clear and communicative during negotiations to prevent confusion and ensure a smooth and successful purchase. How Personal Property And Fixtures Can Become ConfusedIt is not hard to imagine how the line between a fixture and personal property could become muddled. If a home had an alcove above the stove that contained a high-end microwave, the buyer might imagine that the appliance comes with the house, especially if the microwave looked to be a part of the style of all the appliances in the kitchen. But the seller might have just bought the microwave to replace an old one. It’s not physically attached to the house, just sitting in its alcove. All he has to do is unplug it and take it when he leaves. When there is a specific item or items that could cause confusion, it is smart to address them upfront. A real estate agent can list exclusion in the multiple listing service and then make sure the items make their way into the real estate contract. Real Estate attorneys should be made aware of any exclusions to be addressed in the contract of sale. Make Sure You And Your Realtor Are On The Same PageIf you are going to sell your house, you want to ensure that you and your Realtor are always on the same page. A good real estate agent should be checking in with you, particularly at the beginning of the sale, to make sure you understand what is going on and that your wishes are being honored in the sales process. What is included and excluded should be discussed before the home is ever listed and it makes its way to the public. When you talk to your Realtor about the listing, it is a good idea to clarify what you consider personal property and what you think are fixtures. The Realtor can include all this information in the listing. After the listing is up, the real estate agent can also keep in mind any areas where the confusion arises and address them with the buyer’s agent. during the sales process. The last thing you want to be involved in is a situation where the buyer intends to back out of the home sale. This is stress that can be easily avoided! One of the other bones of contention that often comes up in a home sale is extraneous things that the seller decides they should leave behind for the prospective buyer to have. Sometimes the customer loves the fact that these things are left behind, and other times they want them gone. What kind of items am I talking about? • Paint – some buyers want all the paint left behind to do touch-ups while others have no use for it and want it removed. The point here is you should never take anything for granted when it comes to leaving items behind. A buyer should always be asked if they want anything left behind that is considered personal property. None of these things are considered house fixtures, so they need to be removed if the buyer does not want them. Only if something is part of real property does it stay. Do a Final Walk-ThroughWhen you are buying a home, it is always advisable to do a final walk-through. One of the primary purposes of doing so is to make sure that everything in the house is the same as when you signed your contract with the seller. While most buyers are looking for issues like a mover dinging a wall or other potential structural or mechanical problems, looking over what was supposed to be included is essential as well. The buyer, of course, wanted them and would not settle for what the seller put in their place. It took some wrangling, of course, with the attorneys, but a holdback agreement was made whereby the seller would not get a couple of thousand dollars of their proceeds until the lights were returned to the buyers. This is just another reason that a final walk-through should never be skipped! Hopefully, you now have a much better understanding of what is a fixture in home sales. Learning what is assumed to stay in a home and what is considered personal property is essential to have a smooth sale. 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’s Consiia Fixture When Selling A House? first appeared on Ascent Law, LLC.
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Which Should I Do First: File For Bankruptcy Or Buy A Car? Which Law Firm Is Best For Estate Plans In Utah? When Is A Bankruptcy Claim Contingent, Unliquidated, Or Disputed Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/whats-consiia-fixture-when-selling-a-house/ In most cases, a bankruptcy claim is an amount that a creditor hopes to recover from bankruptcy funds. The claim is unliquidated if the creditor doesn’t know how much the debtor (bankruptcy filer) will eventually owe. Some factor prohibits the creditor from establishing the final amount. Before the bankruptcy trustee; the official responsible for overseeing the case can pay a creditor in bankruptcy, the creditor must prove several things: Many debts, like loans and credit cards, are based on contracts between the parties. The contract explains the duties, liabilities, and terms, such as payment amount and interest rate. A balance usually isn’t difficult to figure out at any given time. It’s a relatively simple calculation of principal amount borrowed, plus fees and interest, minus payments. However, sometimes something must occur before the creditor will know how much is owed. Example. Suppose you’re involved in an automobile accident and the other driver’s insurance company sues you. The monetary cost to the injured person (damages) can’t be determined because the other party’s medical treatment is ongoing. Those costs won’t get finalized until the treatment ends. You also won’t know the total cost that your attorney will charge for defending you. Both the insurance claim and your attorney’s claim are unliquidated. The amounts will be liquidated (known) after the case settles or goes to trial and the court enters a judgment. Unliquidated Claims in a Chapter 7 Bankruptcy CaseWhen the trustee finds money to pay claims, the unsecured creditors will usually only receive a pro rata share (a percentage of the funds available). The trustee can’t calculate the pro rata share if unliquidated claims exist. The trustee must know each creditor’s claim amount. Therefore, a Chapter 7 bankruptcy case can’t end before the claims get liquidated. The same holds true for claims the trustee might have against other parties. Trustees often enter into litigation to recover money owed to the debtor (the bankruptcy filer) by people not involved in the bankruptcy. The trustee’s claims must be liquidated so that the trustee knows how much money will be available to distribute to creditors. Filing for bankruptcy involves filling out numerous bankruptcy forms. On them, you’ll explain your financial situation so that the court, trustee, and creditors know: Of course, listing debt called a claim in bankruptcy—is a pretty important part of the process. Not only will you disclose the creditor name and amount you owe, but you’ll explain whether an issue needs resolving before paying the claim. You’ll do this by labeling the claim contingent, unliquidated, or disputed. Most Bankruptcy Claims Are StraightforwardIn most cases, you won’t run into a problem when listing your bankruptcy claims. There won’t be any outstanding issues you could raise to get out of paying the debt. You simply owe the money. For instance, if you’re behind on your car loan, the claim would be for the total amount you owe. Similarly, if you owe credit card debt, the claim would be for the total balance. When the Claim Amount Isn’t StraightforwardSometimes the amount you owe to a creditor isn’t easy to figure out. Perhaps the amount you owe could depend on what someone else does or might not be determined yet. Or, you and the creditor might disagree as to how much you owe. If any of these is the case, you’ll indicate it when listing that claim on your bankruptcy papers (the form has checkboxes). Here’s what each term means. Priority Unsecured ClaimsPriority unsecured claims are claims that are not secured by collateral but that have priority over other debts under federal law. These debts have priority typically for public policy reasons that is, the well-being of the public depends upon these debts being paid. Priority unsecured debts in a personal bankruptcy case might include child support, spousal support, and any other domestic support obligations; certain income taxes; and any amount you owe if you caused the death or serious injury of another person because you were driving while intoxicated. Priority unsecured debts are non-dischargeable, which means that any amounts that do not get paid in your bankruptcy are still outstanding. Bankruptcy does not wipe out your obligation on priority unsecured debts unless they are paid in full through the case. General Unsecured ClaimsGeneral unsecured claims are claims that have no priority and are not backed by a security interest in property. General unsecured debts include credit card debts, student loans, personal loans, some utilities and medical bills. General unsecured claims have the lowest priority of all claims. After the bankruptcy estate pays administrative expenses, priority unsecured claims and secured claims, general unsecured creditors will receive a pro rata distribution of the remaining funds. General unsecured debts are generally dischargeable, which means any amount that is not paid through the bankruptcy is wiped out and no longer your responsibility. There are exceptions to this rule; student loan debt is only dischargeable if you can demonstrate extreme hardship. Also, if you obtained a debt fraudulently, the creditor can ask the court to deem it nondischargeable. For more information about nondischargeable debts, see Bankruptcy Discharge: Which Debts Are Wiped Out? Example. Anne files Chapter 13 bankruptcy. She owes the IRS $10,000, which is a priority unsecured claim. She also owes $100,000 in general unsecured claims. Over the course of Anne’s Chapter 13, she will make $55,000 in Chapter 13 plan payments. Of those payments, $8,000 will go toward administrative expenses, such as trustee fees and attorney fees. The IRS will receive $15,000 for the tax debt plus interest. The remaining $32,000 will be distributed pro rata to the general unsecured creditors. $32,000 is 32% of the total $100,000 debt, so each general unsecured creditor will receive 32% of the amount owed, and the rest will be discharged. Example. Ben files Chapter 7 bankruptcy. He owes back child support in the amount of $12,000. He also owes $25,000 in credit card debt. He owns an RV that he cannot exempt, so the trustee sells the RV for $10,000. The trustee’s expenses, including fees, for the sale of the RV total $1,500. The remaining $8,500 of the proceeds will be paid to the state for the child support arrears; the credit card companies will receive nothing, and the credit card debt will be discharged. Ben will still be responsible for the remaining $3,500 in back child support. Example. Kyle was sued by the family of a man he killed in a drunk driving accident. The court awarded the family $500,000 in wrongful death damages, and Kyle is responsible for the full amount. He also owes $25,000 in credit card debt. Kyle is unemployed, so he files Chapter 7 bankruptcy. His estate has no assets, so none of Kyle’s creditors will receive payment. The credit card debt will be discharged; however, Kyle will still be responsible for the $500,000 wrongful death judgment. Secured ClaimsSecured claims are claims for debts that are secured by an interest in property. A secured creditor can take that property, the collateral, if you default on the debt. The most common secured loans are car loans and mortgage loans, but you may also have secured loans for furniture, jewelry, watercraft, and other types of property. In a bankruptcy case, secured claims must be paid in full if you want to keep the property that secures the loan. If you choose to surrender the property (give it up), the loan is treated as a general unsecured debt. Example. Dave owes $10,000 on his car; the car is worth $8,000. Dave files Chapter 7 bankruptcy; his estate has no assets. He cannot afford the car, so he chooses to surrender it. The dealership repossesses the vehicle and sells it for $4,000. The remaining $6,000 of the loan is discharged in Dave’s bankruptcy. Example. Sue files Chapter 13 bankruptcy to save her car. Her Chapter 13 plan proposes to pay the full balance of the loan, which is $8,000, plus interest. Two years into her Chapter 13 case, Sue suffers a pay cut at work and can no longer afford the car. She modifies her Chapter 13 plan to surrender the car. The current balance due is $5,000. The creditor repossesses the car and sells it for $2,000. The creditor must then amend its proof of claim with the bankruptcy court to reflect a general unsecured claim in the amount of $3,000, which will be paid pro rata along with all other general unsecured creditors. Example. Joanne is underwater on her house; she owes $150,000 to the mortgage company, but her latest tax appraisal gives a value of $100,000. She has fallen behind on her mortgage payments. She files Chapter 7 bankruptcy and decides to surrender the house. She does have an investment account that she cannot fully exempt, and the trustee seizes $8,000 from the account. The mortgage company forecloses and sells the home for $60,000, leaving a deficiency of $90,000. The mortgage was Joanne’s only debt. The trustee’s fees for the seizure of the investment account total around $1,500, leaving $6,500 for creditors. The mortgage company receives the $6,500 and the remaining $83,500 deficiency balance is discharged. You Must List All Claims in BankruptcyIt’s common for someone to want to omit a claim from the bankruptcy paperwork for one reason or another. You can’t do it. You’re required to list all claims both the claims you think you owe, and those others think you owe. It’s in your best interest to do so. If you fail to list a claim, the claim might not be erased (discharged) in your case—even if it qualifies as a dischargeable debt. Paying Claims in BankruptcyIf money is available to pay creditors, here’s what will happen next: What are Contingent, Unliquidated and Disputed Debts?In bankruptcy, not all debts are straightforward. Sometimes it may be difficult to determine how much you owe and when you owe it. Typically, these kinds of imprecise debts are either contingent, unliquidated or disputed: Why Should I List Debts I Disagree With or Do Not Owe Right Now?Listing a contingent, unliquidated or disputed debt does not mean you are agreeing to or will have to pay those debts. Including a list of all claims simply means that everything you owe or might owe is considered for discharge. In many cases, this means you can eliminate your liability for these debts. For example, while you do not technically owe a contingent debt at the time of your bankruptcy filing, you may be able to discharge your future obligation. Similarly, some unliquidated debts are also dischargeable in bankruptcy, even though the exact dollar amounts are unknown. If you have a disputed debt, then you should take care to list the amount the creditor claims you owe, not what you believe you owe. The exact amount you owe may or may not matter since a discharge eliminates the liability regardless of amount. This is true for both a Chapter 7 liquidation and a Chapter 13 repayment plan. However, if you do not list a certain creditor or debt when you file for bankruptcy, then you may not receive a discharge for that debt. This means the creditor may be able to bring collection actions against you even after you receive a bankruptcy discharge. The fact is that you must list all debts, even ones that are not subject to discharge. Questions About Confusing Debt? Contact Ascent Law Firm Bankruptcy AttorneysThe rules for filing bankruptcy can be confusing, especially if you owe or may owe many different types of debt. If you are considering bankruptcy, then contact Ascent Law Firm bankruptcy attorneys for legal advice before you file. In a free initial consultation, we can gather information about your debts and advise you whether bankruptcy is right for you. If so, then we can assist in filing all the necessary paperwork, including generating a comprehensive list of all creditors. Whether you owe contingent, unliquidated and/or disputed debt, we will work to ensure the bankruptcy process goes smoothly. 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 When Is A Bankruptcy Claim Contingent, Unliquidated, Or Disputed? first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/when-is-a-bankruptcy-claim-contingent-unliquidated-or-disputed/ An estate is the real and/or personal property a person possesses at death. The practice area of estate planning law involves the drafting of living wills, trusts, powers of attorney, and other documents to facilitate the transfer and management of property after death. When estates aren’t managed and someone dies without a will, their possessions will distributed to their next of kin. By not making a will or otherwise making estate plans, the individual gives up control of their estate and has no say in how the property is divided. Estate Planning Law: Terms to KnowThere are key terms to know that help to understand estate planning law, including the following: These attorneys must have a particular understanding of areas of the law related to wills and trusts, such as the probate process. Jobs as estate planning attorneys are expected to rise as the population ages. The Bureau of Labor Statistics projects that the employment of lawyers is projected to grow 8 percent between 2016 and 2026. The qualifications you need to become an estate planning attorney start with a Juris Doctor degree from an accredited law school. You must also take and pass the state bar exam where you practice, and you should take classes that help you specialize in estate planning responsibilities. Family law, real estate law, asset management, drafting a living trust, taxes, and estate planning are all beneficial areas of study. You can pursue further specialized schooling in taxation or estate planning or receive hands-on experience in your duties through a mentorship. Financial knowledge, the ability to draft a will, and strong communication skills are essential to your success as an estate planning attorney. Estate planning doesn’t begin and end with a last will and testament. An attorney practicing in this field drafts living trusts and develops plans to mitigate or avoid estate taxes. They work to ensure that your life’s savings and assets are safe from beneficiaries’ creditors when you pass on. Estate planning lawyers can prepare powers of attorney and health care directives that arrange for someone to take care of your affairs if you should ever become mentally incapacitated. Powers of attorney give someone you trust the ability to sign in your name if you become unable to. You can make a health care directive to assign an agent to conduct your health care wishes if you’re incapacitated. They can help you avoid guardianship or conservatorship issues if you need someone else to look after your affairs. You can appoint guardians (to handle personal issues for your kids) or conservators (to handle your kids’ finances) to look after your children and finances if you pass away before they reach an appropriate age be on their own and handle their inheritance. Estate Planning Lawyer QualitiesA general law practitioner may not have the experience and specialized knowledge to assist you with your unique family and financial situations. Look for an estate planning attorney who: A flat fee may cover the preparation of essential documents and initial consultation. If an attorney wants to charge you by the hour, try to negotiate a flat price for all the work you expect is needed. Some experienced attorneys will agree because they have a good sense of how much time goes into a specific task. If your estate incurs taxes that could have been avoided, or if a contentious probate process drags out after you pass on, your loved ones may wish that you had spent the money to plan instead. It is worth paying for the planning, so that you know things will go exactly as you intended because you had the help of an experienced estate planning attorney. Take the time to find and hire a professional and respected attorney in your area. In the long run, you and your family will be glad you did. These steps can help you streamline the process of finding an attorney who is right for you.Search for candidates.Start by identifying what you need to accomplish with your estate plan. That information will help you determine the type of attorney you’ll need. Most people need a generalist who can help draft a will, powers of attorney, and basic trusts. But some situations call for attorneys with certain specializations. For example, you may have reason to be especially concerned about maximizing benefits programs such as Medicaid, or addressing long-term care, in which case you may need a specialist in elder law. If you have financial interests overseas, you may require the skills of an attorney who specializes in international estate planning. Likewise, if your case requires legal work in more than one jurisdiction or state, be sure to consider attorneys who are licensed to practice in all those places. Once you know the kind of attorney you need, you can begin to build a list of potential candidates. Start by asking trusted friends and family members for referrals. “Word of mouth is always one of the best approaches.” “If people have had a bad experience, they’re sure to tell you.” Also consult with financial professionals with whom you work, such as financial advisors, accountants, insurance agents, and bankers. They may be able to refer you to attorneys they know and trust. When you have a working list of candidates and referrals, look into each attorney’s background. Check their websites for information about firm size, experience, and specializations. Take a look at the social media sites that each attorney uses. The way an attorney is represented on social media sites may give you a sense of what it will be like to work with them. Interview your prospectsAfter you’ve narrowed your list to your top few candidates, confirm their state bar registration status, and then talk to them about an interview. An attorney may or may not charge you for an interview. Come prepared for your first meeting (in person, or by video conference) with all the information that you will need, including your estate planning summary and any supporting documents. Also prepare a list of questions you would like to ask prospective attorneys, including the following: Understand each attorney’s feesPrice is a key consideration in choosing an attorney. Keep in mind how much you can pay and find a lawyer whose fees you can afford. Some attorneys offer a free consultation; others don’t. Some offer a free consultation for a set amount of time, such as the first hour, and begin charging after that. Find out what each attorney’s policy is before the first meeting. Fee structures for drafting an estate plan can vary as well. Some attorneys charge a flat fee, while others bill by the hour. Flat fees typically include everything required to prepare the estate planning documents. In general, simple estate plans, including a will, power of attorney, and medical directives, can cost between $1,000 to $2,500. More complex plans—for example, those that include trust documents could cost up to $5,000 or more. Individual rates may vary by jurisdictions and states, as well as other factors. Hourly rates commonly run between $200 and $300 an hour; again, individual rates may vary by jurisdictions and states, as well as other factors, such as the size of the firm. Note that it’s normal for attorneys who bill hourly to bill in increments of no fewer than 6 minutes, or a tenth of an hour. An attorney also may pass along other fees for specific tasks, such as online research, court filings, copying documents, or courier fees. Ask about these potential charges up front before making a selection. After you’ve interviewed your prospects, choose the one who fits best with your needs, personality, and budget. At this point, the attorney may provide you with an engagement or retainer letter, a contract that defines the nature of your legal engagement with them and the terms of the agreement you have reached. These terms include the expenses you will be responsible for and how your attorney will charge for their time. From there, your attorney will help you craft an estate plan, and you can work together to make sure that it covers all of your needs. Reasons You Need A Lawyer To Write Your Estate Plan• You Need More Than Just A Will: Always remember, and never forget, you don’t just need a will, you need an estate plan. While the two terms “will” and “estate plan” are often used interchangeably, this is wrong, as they are two different things. An estate plan is a set of legal documents to prepare for your death or disability. A will is just one of those legal documents, albeit an important one. In fact, there are at least six “must have” estate planning documents you need. So, you don’t need to draft just one legal document and get it right, but several. 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 Which Law Firm Is Best For Estate Plans In Utah? first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Which Debts Are Discharged In Chapter 7 Bankruptcy Why Divorce Cure And How To Avoid It-How To Deal With Conflict Which Should I Do First: File For Bankruptcy Or Buy A New Car? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/which-law-firm-is-best-for-estate-plans-in-utah/ Bankruptcy is aimed at giving you a second chance; a fresh start with your finances. But not knowing what happens after you file for bankruptcy can be scary. What Happens After You File for Bankruptcy?The following things will happen after you file for bankruptcy: A Trustee Will Be Assigned to Your CaseOnce you file, a bankruptcy trustee will be assigned to your case. This trustee will be in charge of administering your bankruptcy filing. In general, the trustee will either: You Will Attend a “Meeting of Creditors”The first thing the trustee will do will be to call a meeting of creditors. This is also called the 341 creditors meeting. During this meeting, the trustee will ask you, under oath, about your assets and debts. Creditors can attend this meeting and ask you questions. But usually, it will be just you and the trustee. An Automatic Stay Will Stop Debt CollectionFiling for bankruptcy will trigger the automatic stay. The automatic stay will ensure that creditors will not try to collect from you while your case is pending. What this means is they can’t contact you to collect on debts like credit card debts and other types of unsecured debts. The automatic stay will also stop the garnishment of your wages. You Will Attend Financial Management CoursesBefore filing for bankruptcy, you took a credit counseling course. After you file for bankruptcy, you will need to take another course that can help you after your debts are discharged through the bankruptcy process. It is only after you complete these courses that the bankruptcy judge will give you a debt discharge. The Trustee May Sell Some of Your PropertyIf you filed Chapter 7, the trustee may liquidate some of your non-exempt assets and distribute them to creditors according to the priorities stated in the bankruptcy laws. You will get to keep many of your assets like some household items, your car, and items of clothing. You can learn more about this on our page about bankruptcy exemptions. You May Begin a Repayment PlanWith Chapter 13, you must follow your repayment plan and pay off your debts within the specified time to get debt relief. You also have to pay non-dischargeable debts like child support and alimony in full. Your Debts Will Be DischargedWhat Happens to Secured Debts?A secured debt is a debt a creditor secures with an asset. A mortgage can be a good example here. When you buy real estate and finance that house with a bank loan, you are giving the bank the right to initiate foreclosure proceedings if you fail to comply with the mortgage terms. In a Chapter 7 case, creditors can foreclose the property even after you file for bankruptcy if you don’t pay your secured debts. You can, however, keep the property if you make an agreement with the lender to continue making monthly payments on your loans. In Chapter 13 cases, you can retain your property if you continue to make payments through the Chapter 13 payment plan. What Happens After Bankruptcy?Once your case is finalized, you will get a discharge of most of your debts. Your creditors are also legally prohibited from trying to collect any outstanding debts from you. Read on to see some of the common questions on what happens after a bankruptcy discharge. Will You Be Debt Free? Will Bankruptcy Discharge All Debts?No. Bankruptcy will not discharge all your debts. What can be discharged will vary based on the type of bankruptcy you choose. But in general, the following debts will not be discharged after bankruptcy: How Will Bankruptcy Affect Your Credit Score?A bankruptcy filing will lower your credit score and may stay on your credit report and in public records for some time. Bankruptcy will stay on your credit for 10 years if you filed for Chapter 7 and seven years if it is a Chapter 13 bankruptcy. However, exactly how much a bankruptcy will affect your credit score will depend largely on your financial situation before filing bankruptcy. You can take steps to rebuild your credit such as: Keep in mind that filing for bankruptcy might do more to help your credit than harm it. Consider what will happen if you continue to hold the debt and miss payments. Can You Get a New Car or Buy a House After Bankruptcy?Getting a car loan or a mortgage will be difficult immediately after your bankruptcy case is finalized. But by rebuilding your credit, you will have options in the future. For instance, getting a secured credit card or applying for installment loans may be good options for you to start building your credit. What If You Get Into Debt Again?Depending on the timing between discharges, you may be able to file for bankruptcy again. Here is the timeline: If you don’t qualify for another bankruptcy or you simply don’t want to file again, you also have other options to becoming debt-free. Chapter 7 bankruptcy. The Chapter 7 trustee will sell the car, give you your exemption amount, and use the remaining amount to pay fees and creditors or force you to pay the nonexempt amount (usually with income made after the bankruptcy filing or money loaned from friends or family). The key problem you’ll want to be aware of is that if you pay more cash for the car than you can protect with an exemption, you’ll likely end up losing the car. Chapter 13 bankruptcy. In a Chapter 13 case, nonexempt equity is handled a bit differently, but the result is similar. Specifically, the Chapter 13 trustee won’t sell the car; however, you’ll have to pay for the nonexempt portion of the vehicle in the three- to five-year repayment plan. If you don’t have enough income to fund a plan that includes repayment of the nonexempt equity, you’ll have to either: Red Flag: Converting Nonexempt Cash Into an Exempt CarIf you happen to have a large sum of money stashed somewhere, it might seem like a good idea to sink it into property that you can exempt, like a car. Why? Because most states don’t have an exemption that will protect cash or money in a bank account (or it’s very small). However, you’ll want to be wary of such maneuvers. Using nonexempt cash to purchase an exempt asset shortly before a bankruptcy case can raise a red flag (and the court will be aware of it because you’ll have to report the transaction when filling out your bankruptcy paperwork). The bankruptcy court might interpret the transaction as an impermissible exemption-planning attempt designed to keep money that rightfully belongs to your creditors. If that’s the case, you could lose the asset anyway. Before taking such steps, it’s prudent to speak with a local bankruptcy attorney familiar with the practices in your area. Which Bankruptcy Chapter Will You File?Chapter 7 and Chapter 13 bankruptcy treat secured debt—like car loans in different ways. The consequences will also depend on whether the purchase occurs before or during a bankruptcy case. • Buying a car before a Chapter 7 case. You’ll probably have the fewest issues buying on a car on credit before filing bankruptcy, as long as your car isn’t expensive and you didn’t make a large down payment. The creditor will ask you to sign a reaffirmation agreement, which removes the loan from the bankruptcy case so that you’ll continue to be responsible for payments after receiving your debt discharge. Buying a Car After Completing the BankruptcyMost people are concerned that the bankruptcy will prevent them from getting any new credit for a long time after the case ends. That’s not usually the case. Many creditors, including car lenders, actively market to people who’ve just emerged from a successful bankruptcy case. They see a discharged debtor as a decent credit risk because you’re restricted from filing another bankruptcy case and because you’ve wiped out other debt that was causing you financial pressure. You can expect to pay a higher interest rate or a larger down payment. However, there’s an upside: If you’re careful about making your payments on time, the car loan can help you rebuild your credit. As your credit score rises, you’ll be offered better terms on future car purchases. How Long after Filing Bankruptcy Can You Buy a Car?While the effects of bankruptcy hang around for 7 to 10 years on your credit report, that’s not how long you must wait to borrow money. The impact of the penalty decreases each year, and it’s even possible to get a car loan within six months of your discharge. But that might not be the wisest course of action. The longer you can go without buying a vehicle, the more time you have to improve your credit score, which increases the likelihood of getting a loan at an affordable interest rate. One option: Help yourself out by getting a free copy of your credit report and checking it closely for errors so they can be removed. If you need a car now, do you have enough cash to buy an inexpensive one to get you through the first 6 to 12 months? It may not be something you’ll be proud to be seen in, but it will give you time to improve your credit score and save for a down payment, both of which will help you get better interest rates on your next car. Bankruptcy may seem like an easy way to get out of debt. The truth is it can damage your credit score and make it difficult for you to qualify for financing in the future. If you decide Chapter 7 or Chapter 13 is right for you, make sure you’re clear on what will happen to your car and auto loan if you have one. 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 Which Should I Do First: File For Bankruptcy Or Buy A Car? first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why Divorce Lawyer Utah Follows Online Divorce Which Debts Are Discharged In Chapter 7 Bankruptcy? Why Divorce Cure And How To Avoid It-How TO Deal With Conflict Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/which-should-i-do-first-file-for-bankruptcy-or-buy-a-car/ It is hard to imagine a more conflictual time than when one is going through a divorce. On an emotional level, during a divorce people experience a range of emotions that they do not often experience on a day-to-day basis- betrayal, anger, sadness, disappointment, fear, mistrust, revenge, and hopelessness to name a few. On a financial level, divorce involves almost every aspect of one’s financial life. A divorce involves a division of marital property including one’s home, pensions, bank accounts, inheritances, and even personal property. Divorce also involves making decisions about health insurance, life insurance and financial security. And finally, and probably most importantly, during a divorce decisions need to be made about the children, their parenting schedules, education, health and support. Unfortunately, most people did not have formal conflict resolution training growing up. As such, for the vast majority of people conflict is handled in two ways- either the conflict is ignored or the reaction is to attack back. This is not just cultural; to a great extent we are hardwired to have the “fight or flight” response. Thus, to address conflict head on in a non-adversarial manner is counter-intuitive. Mediation provides clients with a safe venue to discuss their divorce. Mediation however will not automatically undo years of ingrained behavior. Mediators and therapists can offer clients tools which will help them mentally and emotionally for the divorce process. Below are a few suggestions. At the end of this article, I have included a Conflict Self-Assessment tool as well as an outline of this article which you can give to clients engaged in the divorce mediation process. 1. Conduct a conflict self–assessmentThe purpose of a conflict self–assessment is to help the divorcing client get in touch with his or her own particular attitudes towards conflict. Where does the client fall in the conflict continuum? Does he shy away from conflict? Does she get an adrenalin rush from a fight? Knowing where you are in the continuum and how you feel about conflict is the first step towards being able to handle conflict effectively. Divorcing clients should consider filling out the attached self-assessment before their first mediation. If nothing else, it will help the client focus on the issue of conflict. More than that however, the first step towards handling conflict effectively is to understand how one reacts to conflict. If a person knows that she is conflict-avoidant, this awareness can be very helpful in assessing how the mediation is going. Is she agreeing because she really agrees or because she wants to avoid conflict? As with anything, having self-awareness is extremely valuable to the process. 2. Normalize conflictConflict is not only natural but inevitable. There is no creativity without conflict. Ingenuity is by definition the act of questioning the status quo to come up with creative alternative. Often, mediation clients come into mediation thinking that in order to mediate they must agree on everything. Mediation however is the time to discuss areas of disagreement. It would not be helpful for a client to avoid addressing a conflict at mediation only to realize later that s/he has made a mistake and to regret it later on. 3. Conflict is opportunityConflict can often lead to opportunity. Another way of thinking about it is to think of risk being a source of opportunity. It is often a conflict that leads to those transformative moments in mediation when, for instance, one participant apologizes or acknowledges something important. Conflict leads to dialogue. It is only through dialogue that the parties can become more enlightened about a particular issue. Discussions which skirt the real issues or avoid conflict, are not true or full discussions. Obviously, conflict is not always going to result in opportunity or transformation. However, in the right context, in a safe setting and if necessary, in a facilitated setting, addressing conflict has an enormous potential for positive results. 4. ListeningIt might seem obvious, but the importance of listening cannot be overemphasized. When I was taking Tai Chi classes I recall the instructor continually repeating “Don’t forget to breath!” Of course we all know how to breathe. It is automatic. But do we really know how to breathe effectively. In Tai Chi as in any martial art, dance, sport etc. proper breathing is critical. Similarly, when engaged in a conflict with another person, listening is critical. However, truly listening is harder than it might seem. Think about what happens when you are involved in an argument. You make your “argument” and the other person responds. Typically what happens when the other person responds is that you are listening to what he or she is saying and thinking about your next response at the same time. By doing both of these things at the same time, not only will you miss some of what is being said to you but you do not take the time to process what is being said. Consider the following exchange: Spouse “A” comes home and his spouse says “You know I really hate when you leave your shoes in the middle of the living room.” He responds, “Well, I’ll stop doing that when you stop leaving the dishes in the sink…” Does this sound familiar? The problem with this interaction is that neither person is really listening to what the other person is saying. The “dialogue” simply becomes a pet peeve ping pong match. Consider the alternative. What if instead of the ping pong match, the interaction went something like this. When spouse “A” comes home, his spouse says “You know I really hate when you leave your shoes in the middle of the living room!” Spouse “A” says “You know, I have some issues with some of your habits but I’ll tell you what, I’m willing to hear and address your issues today if we can agree to talk about my issues tomorrow.” Spouse “B” of course says “okay.” The conversation from that point on may be very short and may be limited to the simple fact that Spouse “B” hates when spouse A’s shoes are not put away. The conversation may continue with open and inviting questioning and interest from Spouse “A” and as a result it may become evident that Spouse “B” is under a lot of stress and it is not really about the shoes. By simply agreeing that one spouse will listen and focus solely on the other person’s concerns and issues, the dynamic has completely changed. The spouse who comes in complaining about the shoes actually feels heard. The other spouse may not only help the other person feel heard but may help the other realize that it is not about the shoes or the dishes in the sink. True communication has begun. Instead of a ping pong match, the couple is now engaged in putting together a puzzle and cooperating in finding the missing pieces. The simple act of agreeing that one person will have the floor and that both will focus on his or her issue completely and the other person will get a chance tomorrow or next week is the single most dramatic and effective and simple technique I know of to help people listen. There are advanced techniques which one can learn such as reframing, rephrasing, acknowledging etc. However, the act of simply agreeing to just listen is something anyone can do. 5. Looking BackWhat will the divorce process look like when you look back? It is often very difficult for clients to separate themselves from the moment and the anxiety, uncertainty and stress of the divorce. However, it is a very useful exercise for clients to spend some time thinking about how they will look back at their divorce. How will their children view the divorce? What will their relationship be like with their ex-spouse? Is there a possibility that they can view the divorce as a restructuring of the relationship rather than an ending of a relationship? How would each of these different attitudes have an impact on the children? In short, most people would like to be able to look back at their divorce and say that they did it in a sane, amicable and fair manner. When I ask people in mediation what their goals are for mediation, they inevitably say they want to get divorced in as amicable a way as possible. This takes work, but it is possible. The client however needs to be proactive so that he or she stays in control of the divorce rather than the process being in control of them. • Make time to connect lovingly with your spouse every day. A couple can significantly improve their chances of marital success by devoting as little as 15 minutes a day exclusively to each other. For instance, you could wake up a little earlier, and spend the extra time in bed cuddling, making love, and reaffirming your love for each other. Take time every day to have meaningful conversations with each other; to listen with the same intensity as when you were dating; to touch, hug, and show affection; to tell each other how you feel about your marriage; and to talk about your goals for the marriage and your lives. 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 Why Divorce Cure And How To Avoid It-How To Deal With Conflict first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why Divorce Rates Have Gone Up In The Prospective Of Conflict Theory Why Divorce Lawyer Utah Follows Online Divorce Which Debts Are Discharged In Chapter 7 Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-divorce-cure-and-how-to-avoid-it-how-to-deal-with-conflict/ Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts. If you’re far behind on your bills and don’t have the means to afford monthly payments and living expenses, filing Chapter 7 bankruptcy could be a last resort to help you reset your finances. However, you may have to give up some of your possessions, and it will have a long-lasting negative impact on your creditworthiness. How Does Chapter 7 Bankruptcy Work?When you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities. The court will take legal possession of your property and appoint a bankruptcy trustee to your case. The trustee’s job is to review your finances and assets and oversee your Chapter 7 bankruptcy. They will sell certain property the bankruptcy won’t let you keep (nonexempt property) and use the proceeds to repay your creditors. The trustee will also arrange and run a meeting between you and your creditors called a creditor meeting—where you’ll go to a courthouse and answer questions about your filing. The list of property you don’t have to sell or turn over to creditors (exempt property), and the total value that you can exempt, varies by state. Some states let you choose between their exemption list and the federal exemptions. But most Chapter 7 bankruptcy cases are “no asset” cases, meaning all of the person’s property is either exempt or there’s a valid lien against the property. At the end of the process, approximately four to six months from your initial filing, the court will discharge your remaining debts (meaning you don’t need to pay them anymore). However, some types of debts generally aren’t dischargeable through bankruptcy, including child support, alimony, court fees, some tax debts and most student loans. Difference Between Chapter 7 and Chapter 13 BankruptcyChapter 7 and Chapter 13 are the two common types of bankruptcy that affect consumers. Either could help when you don’t have the means to pay all your bills, but there are important differences between the two. A Chapter 7 bankruptcy can wipe out certain debts within several months, but a court-appointed trustee can sell your nonexempt property to pay your creditors. You also must have a low income to qualify. A Chapter 13 bankruptcy allows you to keep your stuff and get on a more affordable repayment plan with your creditors. You’ll need to have enough income to afford the payments and be below the maximum total debt limits (currently nearly $400,000 for unsecured debts and $1 million-plus for secured debts). A court will approve the Chapter 13 repayment plan, which usually lasts three to five years, and your trustee will collect your payments and disburse them to your creditors. Once you finish the plan, the remainder of the unsecured debts is discharged. Who Qualifies For Chapter 7 BankruptcyThere are a few requirements you’ll need to meet to file for a Chapter 7 bankruptcy: What Debts Are Discharged in Chapter 7 Bankruptcy?A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start. Some types of unsecured debts usually aren’t discharged through a Chapter 7 bankruptcy, including: Your creditor could also object and keep certain debts from getting discharged. For example, a credit card company could object to the debt from recent luxury goods purchases or cash advances, and the court may decide you still need to repay this portion of the credit card’s balance. Additionally, a Chapter 7 bankruptcy may discharge the debt you owe on secured loans. Secured loans are those backed by collateral, such as your home for a mortgage, or when a creditor has a lien on your property. However, even if the debt is discharged, the creditor may still have the right to foreclose on or repossess your property. What Do You Lose and What Can You Keep in Chapter 7 Bankruptcy?If you file for Chapter 7 bankruptcy, you may lose your nonexempt belongings, property that has a lien on it and property you offered as collateral for a loan. Examples of exempt property based on current federal limits for an individual include: A trustee can’t take property when its value is less than the exempt amount, which means you may be able to keep your home and vehicle. For example, if your house is worth $400,000 and you still owe the lender $350,000, you have $50,000 worth of equity in the home. If your state has a homestead exemption higher than the $50,000 of equity you have, then the trustee can’t take your home. But if your homestead exemption is $25,150, the trustee could take and sell your home, pay off your mortgage, give you the $25,150 exempt amount and use any remaining funds to repay other creditors. A similar scenario could play out with other forms of secured debts, such as an auto loan. However, just because the trustee can’t take and sell these assets doesn’t mean you’ll get to keep them in the long run. When you’re behind on your payments, your creditors can still foreclose on your home or repossess your vehicle once you complete the bankruptcy process. If you want to keep possessions that are securing your debts, you may have to continue making payments on the loan (if you’re not already behind) or pay the full price to purchase the item. How Long Does Filing a Chapter 7 Bankruptcy Take?Generally, the entire Chapter 7 process from the initial credit counseling to the point when the court discharges your remaining debts takes about four to six months. Your case could take longer, however, such as when the trustee asks you to submit additional documents or if they have to sell your property to repay creditors. Or, perhaps you want to try to get your student loans discharged in bankruptcy. It’s possible, but difficult, and can require a lengthy trial. How Long Does a Chapter 7 Bankruptcy Stay on Your Credit Report?A Chapter 7 bankruptcy is a major derogatory mark that can hurt your credit for years to come. The Chapter 7 bankruptcy record can stay on your credit reports for up to 10 years from the filing date, and a completed Chapter 13 bankruptcy can remain on your credit report for seven years from the filing date. The accounts that were included in your bankruptcy may fall off your credit report earlier, as most negative marks get removed after seven years. How to File for Chapter 7 BankruptcyYou can choose to file for Chapter 7 bankruptcy on your own or hire an attorney to help. Some legal aid centers and nonprofit credit counseling agencies may also be able to offer you free assistance. Once you determine that you’re eligible, the process will be largely the same: Cons of Chapter 7 The bankruptcy impact on your credit score. Chapter 7 bankruptcy can remain on your credit report for up to 10 years — though if bankruptcy is a viable option, chances are your credit is already tarnished. 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!
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