Income taxes are a priority claim, meaning that the Govt gets paid before your unsecured creditors. If you have significant credit card debt, personal loans, medical bills and so forth, and some disposable income, you may be able to wipe out (“discharge”) most of this unsecured debt and pay off your income debt over a period of up to five years through your bankruptcy plan. Student loan payments, although a non-dischargeable debt and not a priority claim, can be spread out over time to be more manageable, thus providing valuable relief.

You may be entitled to the benefit of the breathing room a Chapter 13 Plan provides even if you are not eligible for a discharge! – If you filed and obtained a Chapter 7 discharge within the past 8 years you may not be eligible for another Chapter 7 discharge or for a Chapter 13 discharge if you filed for Chapter 13 relief in the past 4 years, subject to certain exceptions. However, as long as your plan is filed in good faith, and meets the requirements for filing a Chapter 13 plan, you can reduce the financial stress of being hounded to make larger monthly payments to your creditors than you can manage. If the court approves your proposed Chapter 13 Plan, the creditors, including the IRS, have to accept the payments as provided in the Plan.

Contact us now if you’re considering using Bankruptcy to help alleviate your obligations.

Wholly unsecured mortgage liens can be wiped out in a Chapter 13 bankruptcy case. This could mean more money for you to live on each month and reduce the risk of you defaulting on your first mortgage payment.

Partially unsecured mortgage liens secured by one’s primary residence cannot be reduced to the value of the collateral left to secure such lien. However, if the lien is against assets other than your primary residence and is not a purchase-money lien (meaning the lien is to secure a debt unrelated to the purchase of the property against which the lien is attached) the lien can be stripped down to the amount of the available equity in the property that actually secures that lien.

In addition, high interest rates can be crammed down to a much more reasonable rate in a Chapter 13 case, currently around 3%, – instead of the outrageous rates being charged by some creditors, saving you considerable money over time.

Strip-offs and cram-downs are not available in Chapter 7. However, certain judgment and other liens that impair available exemptions to a Chapter 7 debtor can be avoided and stripped off.

Ascertaining the value of your home is key. As you can imagine, opinions as to value can differ widely and be strongly influenced by self-interest. Proving a subjective fact such as value can be challenging and litigation to contest value is not uncommon. Knowledge of the law and good preparation is critical to correctly evaluate the strength of one’s case and reduce legal and court costs.

Since the availability of this kind of relief can depend on specific facts, and can prove to be highly beneficial, it makes sense to obtain a “Rights & Options” consultation with an experienced bankruptcy attorney.

Contact us now if you’re considering using Bankruptcy to help alleviate your mortgage obligations.

Note: Deed changes may have significant legal and financial consequences. Always obtain a Rights & Options consultation with an estate planning lawyer before making a deed change.

[For Additional Information, visit our Real Estate Law practice page]

Contact us now for help with your Deed Change.

Whether you are sure you need bankruptcy relief, need to know whether other options are available to you, feel uncomfortable with the idea of filing bankruptcy, and/or are looking for information to better understand the process, there are certain things you should do to prepare for your bankruptcy consultation.

A decision to file for bankruptcy relief is one of the most important decisions one makes. The advice a bankruptcy lawyer gives you is based on the information you provide. If you’re simply looking for general information, you don’t need to meet with a lawyer. There are many bankruptcy lawyer websites, such as this one, that provide helpful information. If you are looking for advice, the lawyer needs specific details about your situation. Don’t be lazy and just show up unprepared to see what the lawyer has to say. If the lawyer does not have all the relevant facts, the advice you receive may prove to be different from what it would have been had all the information been provided. An experienced bankruptcy lawyer will know what questions to ask and this will reduce the likelihood of key information being overlooked. There is a lot of information to be covered and time is money, so be prepared.

Since it takes time to explain the process, elicit the important information, answer your questions, evaluate your circumstances and explain your options in one consultation, it makes sense for the bulk of the lawyer’s time to be spent on applying his or her knowledge to the facts of your case and giving you advice rather than on eliciting basic information from you. You will get much more “bang for the buck” if you:

1. Prepare a list of your secured creditors (i.e. those who have mortgages on your real estate, a lien on your vehicle or household property, or judgments against you if you also own or a buying a home). Put the last known amount owed next to each creditor and total this list!
2. Attach a copy of your most recent statements showing the current balance of your mortgage, vehicle, judgment or claim.
3. Prepare a list of your unsecured creditors (i.e. those who you owe on credit cards, medical bills, broken leases, personal loans, etc). Put the last known amount owed next to each and total this list!
4. If you made purchases on credit from a store using a store card (such as a Sears card, or from a jewelry store, – not a VISA or other bank credit card) the debt may be secured, so list such debts as “Store Card Debts“. Put the last known amount owed next to each and total this list!
5. If you bought or sold or transferred any interest in real estate, whether as a regular sale, a timeshare, condominium, trailer home, vacation home, investment property, a transfer to a parent, sibling or child, even if it is an inheritance or involves a trust, – no exceptions, – write down a brief explanation providing the property address, the parties involved, the date of the transaction, the value of the property, the amount involved and the reason for the transaction. Attach a copy of the Deed, Mortgage or Deed of Trust, and the Settlement Statement, Separation Agreement, Divorce Decree, Will, Trust agreement, etc. If you have a copy of the tax assessment as well that would be helpful. Any concerns you may have can be discussed but you must disclose this information to your lawyer!
6. Make a list of your household income and expenses. You’re obviously having difficulty making ends meet. That is why you are considering bankruptcy, right? So, make a list of your take-home income each pay period. Make a note of any bonuses and/or commissions you receive. If you work overtime, try to figure out approximately how much overtime pay you bring home on average each month. We know it varies, but the court needs to have as accurate an idea as possible, so review your past year’s pay-stubs or at least 6 month’s worth and make an effort to calculate this amount so that the lawyer can better determine your legal options and give you better advice. Make a separate list of your expenses. First list your regular living expenses, such as mortgage or rent, utilities, insurance, car payment, health insurance premiums, and so forth. Then add the food and household expenses, clothing, fuel for your vehicles, haircuts, pet food and vet expenses, modest entertainment expenses, home maintenance and repairs, auto maintenance and repairs, and so forth. Do NOT include your monthly credit card and other bills in this list. Those bills would be dealt with in the bankruptcy. The lawyer needs to know what you really need to live on each month not counting those debts. Be realistic because you need to be able to live on your budget, and if you cannot, the lawyer needs to be able to review your expenses to consider planning possibilities.
7. Bankruptcy is a privilege not a right. The courts expect you to make full disclosure of al your creditors and all your assets. Your living expenses need to be reasonable and necessary. Any proposed bankruptcy plan must be made in good faith, which is something the trustee and the court considers looking at the totality of the circumstances. Your lawyer has an obligation to perform certain due diligence and certify to the court that the information provided has been verified as much as possible. Bankruptcy fraud is a serious crime and the failure to disclose information, even if a result of an oversight, may result in one’s bankruptcy being denied or revoked.
8. If you have filed for bankruptcy relief before, check and note the date you filed. Your lawyer needs to know this up front. If you have lived out of state in the past two years or are moving soon, let your lawyer know right away.
9. Never try to mislead your lawyer! Your lawyer is there to help you get the best possible result. An experienced lawyer armed with all the information may be able to figure out a creative solution. All information you provide to the lawyer is confidential and protected by the attorney-client privilege.
10. If you value a lawyer’s opinion, then expect to pay a reasonable fee for the lawyer’s time and consideration of your case. Lawyer’s who offer “free initial consultations” are trying to get you in the door and will not spend the time or effort necessary at the initial consultation to provide you with the thorough professional evaluation you need to be able to move forward with Peace of Mind. So why waste your time and the lawyer’s time? Bite the bullet, use your time wisely, find out what you need to know, and put yourself in a position to move forward. Usually, a lawyer who charges for the consultation will be ready to get to the meat of your case right away and will credit that fee towards your total fee, so you will not be paying more anyway.

As regards lawyer’s fees,… obviously fees vary from lawyer to lawyer, just as doctors’ and accountants’ and other professionals’ fees vary. You cannot realistically choose a good lawyer by calling around for fee quotes. Do you do that to find a doctor? How can you be quoted a fair fee without the lawyer meeting with you and determining all the relevant facts and issues? Lawyers are not allowed to charge excessive fees and all lawyer’s fees in bankruptcy cases are subject to court approval. In most cases, if you are cooperative, friendly and reasonable, you will find the lawyer you meet with to be professional, respectful, understanding and reasonable. If you are not happy with the lawyer you meet with, you can always hire someone else. If your priority is to find the cheapest lawyer in town, be prepared to get what you pay for. Can you afford not to get the best advice and have the job done right the first time?

Contact us now to inquire about our bankruptcy related legal services.

Whether you believe it or not, once you inform your spouse that you no longer wish to continue with the marriage, the end-game is set in motion. The process of dealing with this life-altering decision involves a wide range of issues. Although one’s rights are determined by law, personalities, how one communicates, conduct, and practical circumstances are intricately interwoven issues that factor into the process of sorting and resolving each party’s needs and concerns. This article attempts to cover most of the key issues you should initially consider to enable you to proceed on the right track for you.

I’m Tired of Being Controlled! Whether you feel you are being controlled by a domineering spouse or whether you feel caught in the cross-currents of life, the decision to take control of your life is the first step to freedom.

What Are The First Steps? Before you begin the process of formally ending the marriage, you need to empower yourself to negotiate a fair and reasonable settlement of all issues. In a negotiation, a spouse who is not aware of his or her legal rights and options, and does not have equal access to all the family’s financial information, is at a severe disadvantage. So, your first step toward self-empowerment is to put yourself in a position to make an informed decision. This process begins by first understanding the basics of separation and divorce law and the process one has to go through. See “Documents to Bring to Your Consultation” below.

Does one really need a lawyer to get a separation or divorce? There is a well-known adage that “A lawyer who represents himself has a fool for client.” The reason is simple: A lawyer, no matter how intelligent and knowledgeable, is too emotionally involved in his own case, due to his relationships and financial interests, to be able to evaluate the facts and other information objectively. If this is true for a lawyer, is it not all the more true for someone who does not have this expertise and experience? What about all the well-meaning friends who have been through separations and divorces themselves who have all kinds of advice to offer? Do you really think this experience catches them up with lawyers who have spent years in law school and practice divorce law for a living? If you don’t respect yourself, no-one else will. You owe it to yourself to find out what your rights and options are so that you can make informed choices. The best way to do this is to consult with a caring lawyer experienced in separation and divorce law and in helping families find sensible solutions that facilitate the healing process for both spouses and especially the kids.

I Don’t Want Anything, – I Just Want to Move On! Most people feel exhausted after years of struggling with the emotional drag of an unhappy marriage. If one’s spouse is controlling or difficult, the temptation to walk away from everything and get it over with without a battle can be very powerful. Although the thought of imminent freedom is intoxicating, you really need to take a time out and make sure you are doing the right thing for yourself. Bear in mind that this is an emotionally over-whelming time and while you may think you are okay and in full control of your thought process, the conventional wisdom is that this is not so. You have everything to gain and little to lose by investing in a Rights and Options Consultation. You may be thankful, after the exhilaration of separating wanes and the financial realities of life after divorce emerge, that you received your fair share.

CONSULTATION PREPARATION

Documents to Bring to Your Consultation. Unless you are confident that you and your spouse can discuss separation and divorce amicably and work cooperatively to explore the process and get legal advice, the prudent thing to do is to discreetly make copies of the documents listed below. You don’t want your spouse to get angry and prevent you from having access to the documents.

[ ] all bank and investment account statements;

[ ] pay advices, as many as possible up to 12 months worth;

[ ] the last two or three year’s Federal income tax returns;

[ ] recent credit card statements, ideally at least a year’s worth;

[ ] recent bank account statements, ideally at least a year’s worth;

[ ] all deeds showing who has title to the home;

[ ] deeds to any investment properties, including timeshares and vacation homes;

[ ] mortgages (deeds of trust) and secured lines of credit for each property;

[ ] all settlement statements for real estate transactions in the past five years;

[ ] any Wills and powers-of-attorney in place;

[ ] titles to all vehicles, motor cycles, boats, jet skis, ATVs, campers, etc;

[ ] your current family budget;

[ ] your anticipated budget after separation; and

[ ] anything else you believe your lawyer might want to review.

Understanding Your Financial Needs; Preparing Your Budget. Frequently, spouses who do not control or share in managing the family finances, have little idea as to how much the other person earns, investments, the family budget and so forth. You need to know these things. Your first resolution should be never to put yourself in the position of being so dependent on others. Take control and learn the basics. You will be surprised how simple it is. Start by doing this: Make a list called “BUDGET.” Write down how much income your family has, namely list your income, your spouse’s income, the income of any parents or children or boarders who live with you, from all sources, including SSI and Disability. Total this list. Then list every expense category you can think of. Then make a column for entering the amount of each expense a month. This will be an estimate. In some cases you will need to take the annual estimate and average it monthly, for example clothing or auto maintenance and repair expense. You can google ‘family budget form” and many options will pop up that you can use as a guide. The more accurate your Budget the more helpful it will be for you and your lawyer. Consider what you will do and what you will need after separation and write this down, and any other concerns you may have, to review with your lawyer. The better prepared you are for your consultation the more you will get out of it.

What Happens After The Consultation? The next step is highly fact and circumstances dependant. The lawyer may: write a letter to your spouse; discuss negotiating tactics and help you feel comfortable in discussing certain issues with your spouse; file a legal proceeding; there may be a need for additional information gathering or things to think about or explore, – to review at a follow-up consultation. The most important thing is that you will feel like a weight has been lifted from your shoulders, you will have a sense of purpose and direction, and will have the Peace of Mind that you have someone you can lean on through this process and provide you with the guidance you need.

Contact us now to inquire about our marital and divorce related legal services.

Generally, in a first marriage where both parties have no children, few assets and similar income, there is little reason to enter into a pre-nuptial agreement. If you and your intended have or expect to have a substantial difference in personal equity, earning power or inheritances, if either or both own a business, or if you have children from a prior relationship, the economic and emotional consequences for you, your children and your business could be catastrophic if the marriage fails. A nasty, drawn-out, expensive divorce with your spouse ending up with half of what is left, after legal expenses, can be devastating. Don’t you owe it to yourself to get sound legal advice so that you can make informed decisions and engage in sensible planning before you tie the knot?

Love and the hoopla of marriage can easily cloud one’s judgment. Misguided assertions that ‘if you love me you won’t pressure me into signing a pre-nuptial agreement’ is a trap one can easily fall into. Why should someone who brings very little, economically, into the marriage be able to lay claim to half the marital assets, perhaps have a right to alimony, and other claims, such as inheritance rights to the detriment of your family, if the marriage proves to be a mistake and is short-lived?

Bear in mind that the decision to marry is also one of the largest business decisions you make! Think about the financial commitment you are making to support a home, family, education, health, vacations, travel and so forth, all of which can increase exponentially. In a happy or satisfactory marriage, these costs are accepted as part of life. However, in a bad marriage, which may include a marriage where there is great chemistry and love but one partner has very poor money management skills or very different priorities when it comes to money, these money problems can destroy the marriage and be economically devastating. Marriage is more than a partnership of love and raising a family. Even where a marriage is not a true economic partnership, the economic consequences can be just as great. So, one ignores the business side of the marriage contract at one’s peril.

A pre-nuptial agreement is not intended to penalize the less well-off spouse. Rather, it is a sensible way to protect the well-off spouse against a large, unfair loss of wealth simply because he or she got married and the marriage failed. Moreover, a pre-nuptial agreement can provide a clear understanding, avoid unrealistic expectations and misunderstanding. A pre-nuptial agreement can provide for greater sharing as the marriage partnership proves its stability over time and ensure that the value of other spouse’s contribution to the marriage (in all ways), is fairly addressed. However, it makes no sense that a marriage partner who brings little into the marriage should be able to benefit at the expense of the other spouse or have an economic incentive to have the marriage fail.

Another benefit of pre-nuptial agreement planning is that one can learn a great deal about each other from the process of discussing and negotiating such an agreement. If one is unable to rationally discuss such important financial concerns in a mature, understanding and respectful manner, perhaps it is a warning sign that should not go unheeded.

Even if you have doubts or concerns about a pre-nuptial agreement, don’t you think you should invest in a professional consultation so that you can make an informed decision? And if you are presented with a pre-nuptial agreement to sign, before getting all upset or just signing it, shouldn’t you find out whether the agreement is fair from both perspectives and whether there might be a better way to protect one party’s concerns without being prejudicial to the other party? Rob Goldman can share his insight and experience with you to help you make an informed decision, including strategic planning guidance through the negotiation process. This approach will strengthen a relationship that is true and provide mutual protection and rewards.

Contact us now to inquire about our pre-nuptial related legal services.