Bankruptcy is a legal process overseen by federal bankruptcy courts. It’s designed to help individuals and businesses eliminate all or part of their debt or to help them repay a portion of what they owe. Bankruptcy may help you get relief from your debt, but it’s important to understand that declaring bankruptcy has a serious, long-term effect on your credit. Bankruptcy will remain on your credit report for 7-10 years, affecting your ability to open credit card accounts and get approved for loans with favorable rates. Bankruptcy can be a complex process, and the average person probably isn’t equipped to go through it alone. Working with a bankruptcy attorney can help ensure your bankruptcy goes as smoothly as possible and complies with all the applicable rules and regulations governing bankruptcy proceedings. You’ll also have to meet some requirements before you can file for bankruptcy. You’ll need to demonstrate you can’t repay your debts and also complete credit counseling with a government-approved credit counselor. The counselor or an attorney will help you assess your finances, discuss possible alternatives to bankruptcy, and help you create a personal budget plan. If you decide to move forward with bankruptcy proceedings, you’ll have to decide which type you’ll file. Chapter 7 or Chapter 13 types of bankruptcy can help you eliminate unsecured debt (such as credit cards), halt a foreclosure or repossession, and stop wage garnishments, utility shut-offs and debt collection actions. With both types, you’ll be expected to pay your own court costs and attorney fees. However, the two types of bankruptcy relieve debt in different ways. Who Can File Chapter 7 Bankruptcy?Both individuals and business entities can file for Chapter 7 bankruptcy. Small business owners have the option of filing Chapter 7 on behalf of their business or for themselves personally. If you’re a sole proprietor, both your business debt and your personal debt will be resolved in the same Chapter 7 bankruptcy case. Filing for Chapter 7 bankruptcy on behalf of the business doesn’t wipe out any debt whatsoever, however. So many business owners choose to file an individual bankruptcy after a business closure because of the ability to erase the individual’s responsibility to pay a personal guarantee and other business debt. What Type of Business Is It?To know what will happen to your ownership interest in the company, you’ll start by looking at its formation. Protecting AssetsYou can protect some of the property that you own from the reach of the bankruptcy court and your creditors using the property exemptions allowed by your state. In most states, there’s no specific exemption for corporate stock; however, you might be able to use a wildcard exemption that allows you to protect any property of your choosing. Not all states have a wildcard exemption However, you might be able to protect a portion of the company’s assets as tools of the trade, if that exemption category is available. This exemption covers a certain amount of property that you need in your trade or profession. Remaining ValueIn every Chapter 7 case, a bankruptcy trustee appointed by the court will carry out a duty to liquidate the assets that you can’t exempt, and then distribute the proceeds to your creditors who file valid claims. Sometimes an asset isn’t exempt, but its value is so small that liquidating it would be a burden. In other words, selling it wouldn’t recoup enough to be worthwhile. Another business may lose its value if you aren’t associated with it any longer. In general, the trustee won’t have much interest in a sole proprietorship except for the assets that can be sold. If the business is incorporated, the trustee will be more interested in selling the stock if the company’s value doesn’t depend on your continued involvement. Speak With an AttorneyWhen you own your own business, filing for bankruptcy is even more complicated than usual. Not only do you need to understand what will happen to your company, but you’ll likely have to provide financial information for you and the company. To ensure you’re doing what’s best, consider hiring a bankruptcy attorney experienced in handling business-related cases who can help you evaluate what you stand to lose, as well as discuss any alternatives available. Benefits of Chapter 7 Bankruptcy for Small Business OwnersIf you are a sole proprietor, Chapter 7 allows you to wipe out both personal and business debts in a single bankruptcy case. If your business debt exceeds your personal debts, you won’t have to meet the income requirements of the Chapter 7 means test. Also, you can use bankruptcy exemptions to protect your personal and business assets. So, in some cases—for instance, if you have a service-oriented business that doesn’t need much in the way of equipment or inventory, you can continue to operate the business after wiping out business debts in bankruptcy. If, however, you can’t protect all of the property you need to run your business, the Chapter 7 trustee will sell the nonexempt property, which could put you out of business. If your business is a corporation, or limited liability company (LLC), Chapter 7 bankruptcy provides a way to close down and liquidate your company in a transparent manner. When you file Chapter 7 on behalf of your business, it becomes the bankruptcy trustee’s responsibility to sell off the assets of the business and pay its creditors. Keep in mind that Chapter 7 is rarely a good idea for partnerships because of the risk of the trustee paying debt with the personal assets of the partners. Keep reading for more drawbacks. Drawbacks of Chapter 7 Bankruptcy for Small BusinessesUnless you’re a sole proprietor filing bankruptcy, your business won’t receive a discharge of its debts in Chapter 7. So, if you’re somehow responsible for the business debt. For instance, you signed a personal guarantee; you’ll still be on the hook unless you file a personal Chapter 7 bankruptcy. Also, a business entity can’t use exemptions to protect assets in business bankruptcy. As a result, the trustee sells all of the business assets to pay creditors, and the business gets shut down. In most cases, a business owner can get a better price for the business assets, and thereby pay down a more significant share of the business debt. This will leave less debt to be paid by the owners. Plus, putting a business in bankruptcy opens the door for creditors to lodge objections or to claim that corporate formalities weren’t followed and that the members or shareholders should pay business debt with personal assets. Who Can File for Chapter 13 Bankruptcy?Only individuals can file for Chapter 13 bankruptcy. Business entities such as partnerships, corporations, or LLCs cannot do so. However, if you are a sole proprietor, you can file a personal Chapter 13 to reorganize your personal and business debts. And sometimes reorganizing personal debt is enough to help a business owner keep the company afloat. A bankruptcy attorney with business-related experience can help you determine the best overall strategy. Advantages of Chapter 13 Bankruptcy for Small Business OwnersIn Chapter 13, you get to keep all your assets and pay back all or a portion of your debts through a repayment plan. If you are a sole proprietor with a lot of business assets, a Chapter 7 trustee may sell them if you don’t have adequate bankruptcy exemptions to protect the property. By filing a Chapter 13, you can protect all business assets and keep the business running while reorganizing your debts. Keep in mind, however, that you must pay the value of nonexempt assets (property you can’t protect with bankruptcy exemptions) through your repayment plan, which can pose a problem if your ownership interest in the business is substantial. Even if your business is a separate entity like a partnership, corporation, or LLC, you can reorganize (and potentially wipe out) your personal liability for business debts with a Chapter 13. Further, you can do things with a Chapter 13 that you can’t in Chapter 7, such as: Disadvantages of Chapter 13 Bankruptcy for Small Business OwnersThe first and foremost disadvantage to Chapter 13 is that business entities cannot file Chapter 13. Also, Chapter 13 takes much longer than Chapter 7 because you have to make monthly payments to a trustee for three to five years. If you have nonexempt assets property that you can’t protect with an exemption; you can keep the property, but you must pay an amount equal to its value to unsecured creditors which can increase your plan payments significantly. You might not have sufficient income to pay the required plan amount. Further, your discharge wipes out only your personal liability for business debts. The business itself will remain responsible for paying back its debts. Bankruptcy Terms to Know As a Business OwnerThroughout bankruptcy proceedings as a business owner both individually or a cooperate owned business, you’ll likely come across some legal terms particular to bankruptcy proceedings that you’ll need to know. Here are some of the most common and important ones: 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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Can I Bankrupt Car Title Loans? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post How Can Individually Owned Businesses File For Bankruptcy? appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/how-can-individually-owned-businesses-file-for-bankruptcy/
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All loans come with risks if they’re not repaid on time. However, a car title loan carries an especially troubling consequence if you fail to meet your payment obligations: The lender can take your vehicle. Before you consider getting a title loan, consider the potential potholes you’ll hit if you use your vehicle as collateral to borrow money. A car title loan is a short-term loan that lets you secure a small amount of money in exchange for giving the lender the title to your vehicle. You’ll also pay a sizable fee to borrow the money. A car title loan is a short-term loan secured by your car. You can typically only get a title loan if you own the car free and clear. You’ll have to take in your title and a copy of your key and leave it as security. You’ll also have to pay certain fees. Then the lender will give you cash and you’ll have a set period of time, usually 30 days, to repay it. If you can’t pay after 30 days, your lender will give you the option of rolling over your loan for a fee so that you have another 30 days to pay. If you default on the loan, and the lender has correctly perfected their security interest, the title lender can repossess your vehicle. You’ll be liable for the repossession fees, too. Let’s say you own a car worth $10,000, and you find yourself in an emergency situation that requires $5,000. A title loan lets you borrow against your vehicle, so you can get that $5,000 quickly. Just as a mortgage is backed by your home, a title loan uses your vehicle as collateral. One of the main pieces of information that people need to understand about a title loan is that it uses the equity in your vehicle for collateralizing the money you will borrow. In most cases, you need to own your vehicle outright to qualify for a car title loan. The term car may be in the product name, but these loans also can be available for motorcycles, boats and recreational vehicles. While some lenders will offer loans if a car is still being paid off, most require the owner to hold the title with no debts attached to the vehicle. Consumers typically can borrow between 25 and 50 percent of the car’s value. How Do Title Loans Work?Car title loans come in a couple different varieties. Some are single-payment loans, meaning the borrower have to pay the full amount of the loan plus the interest rate fee within a month or so. Installment loans, with similarly high APRs, can be paid back over three or six months, depending on the lender. When applying for a car title loan, prepare to show the lender a clear title, proof of insurance and a photo ID. Some lenders ask for a second set of keys. While getting a title loan may be easy, the convenience comes with serious costs and risks. Some car title lenders install a GPS device that can prevent the borrower’s car from starting, using this practice as a means of collecting a debt or making it easier to seize the car. In addition to being (the) primary means of transportation to work, the doctor and elsewhere, a car is often the largest financial asset that a person has. The looming threat of losing your car is anxiety-inducing to put it mildly. Downsides to Title LoansThe biggest downsides to title loans are a short repayment period, sky-high interest rates and the potential loss of your car if you default. These are usually short-term loans with very tight repayment cycles. If you can’t pay back the loan when it’s due, it’s rolled over into another cycle with more fees. It creates a very difficult situation for people who are already struggling to repay. It is the exact definition of the cycle of debt. In addition to tight repayment deadlines, car title loans have overwhelmingly high interest rates. Lenders often charge 25 percent each month in financing charges. On a $2,000 loan, you’ll pay an additional $500 in interest if the loan is repaid in 30 days. If you’re late with your payment and those interest charges pile up, the loan can wind up costing a lot more than the initial sticker price. The biggest downside, though, is possibly losing your car. If you can’t pay it back, the lender can take your vehicle. Alternatives To Title LoansWith such serious downsides, reaching out to traditional banks and credit unions to explore other, less costly lending options. A lot of people might avoid traditional lenders because of assumptions about their credit and that’s the most dangerous thing you can do. You’re cheating yourself out of money you could potentially save. Even if you don’t have a bank account, have a lower credit score or have struggled with poor financial decisions in the past, it’s worth investigating all your loan alternatives. It’s interesting how flexible these traditional lenders can be. There are a lot of credit unions that are willing to work with unbanked customers. If you have unused credit on a credit card, you could rely on it to help cover your cost. In most cases, the interest rate on your credit card is going to be much less than what you end up with on a car title loan. And that route prevents you from potentially losing your vehicle. A car title loan is a small secured loan that uses your car as collateral. Car title loans tend to range from $100 to $5,500 an amount typically equal to 25% to 50% of the car’s value. The loan term is short usually just 15 or 30 days. And although it’s called a “car” title loan, this type of loan also applies to other vehicles, including trucks and motorcycles. To get a car title loan, you’ll need clear title 100% ownership of the car, without any liens or at least some equity in your vehicle. Car title loans are also called pink-slip loans, title pledges or title pawns. In addition to your car title, the lender will typically want to see your car, a photo ID and proof of insurance. If you get approved for a car title loan, you give your car title to the lender in exchange for the loan. You get your title back once you pay off the loan. Car title loans have high fees and interest ratesWith a car title loan, it’s not uncommon for lenders to charge around 25% of the loan amount per month to finance the loan. For example, if you get a 30-day car title loan for $5,000 and the fee is 25% ($1250), you’d have to pay $6,250, plus any additional fees, to pay off your loan at the end of the month. This translates into an annual percentage rate, or APR, of more than 300%. That’s much higher than many other forms of credit, including credit cards. When you get a car title loan, the lender must tell you the APR and total cost of the loan. You can compare this information across other lenders to help find the best offer possible for you. If you can’t repay a car title loan, you could lose your carIf you get a car title loan and you can’t repay the amount you borrowed, along with all of the fees, the lender might let you roll over the loan into a new one. When you do this, you add even more fees and interest onto the amount you’re rolling over. Let’s say you have a $500 loan with a $125 fee. At the end of the 30-day term, you are unable to pay it all back. You pay the $125 fee and roll over the $500 balance into a new loan with a 25% fee. If you pay your new loan off, you’ll have paid a total of $250 in fees on the $500 you borrowed. If you continue to roll over your loan, you could end up in a cycle of additional fees that make it impossible to repay the lender. If you find yourself in a situation where you can’t pay off the debt, the lender could repossess your car. And you could end up paying even more in fees to get the vehicle back, along with the past-due amount. Assuming you can’t pull that together, you’ll be left scrambling to find (and pay for) new means of transportation. Chapter 7 Bankruptcy and Car Title LoansIn Chapter 7 bankruptcy, you’ll surrender your non-exempt assets to the bankruptcy trustee. In California, you can choose between two different sets of exemptions. Remember that exemptions only apply to the equity you hold in an asset and are used to determine whether or not the trustee can sell the asset. They do not affect secured debts. The trustee will sell your nonexempt assets and pay the proceeds to your unsecured creditors. At the end of the process, your remaining unsecured debt will be discharged. However, a title loan is a secured debt. Under Chapter 7, you have the option to redeem a secured debt. That’s the only way to keep your car through the bankruptcy. To redeem title loan debt, you’ll have to pay the market value of the car in one lump sum. For example, say your car is worth $10,000 but you owe $15,000 to the title lending company. You can pay $10,000 in bankruptcy and the rest of the debt will be discharged. However, it’s difficult for most debtors to put together enough cash to redeem the debt. There are, however, companies that specialize in funding redemptions, and your attorney can discuss these with you. You may instead choose to reaffirm your debt. When you reaffirm a debt, you agree to continue to be bound by that debt throughout and after your bankruptcy. You’ll continue to make your regular monthly payments on that debt until you’ve paid it off. However, a reaffirmed debt cannot be discharged in a future bankruptcy. If you reaffirm, you’re stuck with that debt until you pay it. If you can’t redeem the debt, consider selling the car before you file for bankruptcy and using the proceeds to repay the title loan debt. If your car isn’t worth enough to sell, you can surrender it to the title loan company. Either way, you’ll lose your car. Without bankruptcy, the title lending company would be able to sue you for the deficiency between what you owed and what they got for the car at auction. After your bankruptcy discharge, you won’t be liable for any deficiency. If you receive your bankruptcy discharge without addressing your title loan debt, the lender will repossess your car as soon as your bankruptcy ends. If they sell it and the proceeds are less than your debt, you’ll be liable for the deficiency. Chapter 13 Bankruptcy and Car Title LoansUnder Chapter 13, you have more flexibility to deal with a car title loan. When you file for Chapter 13 bankruptcy, you work with the bankruptcy trustee and the court to come up with a payment plan that lasts for three to five years. You can deal with the title loan through your payment plan. As under Chapter 7, you can keep your car if you pay its market value. Chapter 13 allows you to spread that payment out over the life of your plan rather than paying it all at once. You’re much more likely to be able to keep your car under Chapter 13 than Chapter 7. How can I keep my car without filing bankruptcy?The best way to make sure you keep your car is to avoid car title lending. You need your car to get to work, take your kids to the doctor, and pick up groceries. Title lending is intended to trap you and force you deeper and deeper into debt. It’s just like payday lending, but much less carefully regulated by law. Because title loans are secured loans, they are not discharged in bankruptcy. Don’t use a credit card or other form of unsecured debt to pay off your title loan in an attempt to convert your secured debt to unsecured debt. The bankruptcy trustee may examine all of your recent financial transactions. The trustee can void the payment as fraudulent and in bad faith because you knew you were never going to repay the new credit card debt. Trustees can claw back any payments greater than $600 to your creditors made in the 90 days before you file for bankruptcy. Moreover, the court may dismiss your case entirely if you’re found to have filed in bad faith, leaving you at the mercy of your creditors. Bankruptcy ExemptionsThe bankruptcy court allows those filing Chapter 7 bankruptcy a certain amount of money, called an exemption, for a car (as well as a house and other belongings). The federal exemption is $4,000 and it’s updated every three years. But 31 states have their own exemptions that those filing bankruptcy have to go by. Some are lower than the federal exemption and some are higher. If a car’s value is less than the exemption, you can keep it under Chapter 7 bankruptcy. If it is higher, the bankruptcy trustee may decide to sell the car to help pay your unsecured debt. You would keep the amount of the exemption, with the rest going towards debt. As an example, let’s say your state exemption is $10,000, and your car is worth $9,000. You can keep your car, because the exemption is higher. But, if your car is worth $15,000, the bankruptcy trustee might sell it and you get $10,000 for another car, and what was left of the $5,000 balance, after fees, would go toward unsecured debt. To boost the exemption amount, you can also use the wildcard exemption, an extra exemption that those filing bankruptcy can use for things not covered by specific exemptions. The federal wildcard exemption is $12,575. Often the wildcard is enough that when it’s added to the car exemption, it can cover the value of a car that wouldn’t otherwise be exempt. When filing for bankruptcy, you list property that is legally exempt on Schedule C. Schedule C is the list of legally exempt property that you can keep under Chapter 7 bankruptcy. The property may also be listed in A/B, under assets. Be sure it’s described the same way and it’s clear it’s the same property If this process sounds complicated, it’s because it is. You may want to consult a bankruptcy attorney to help you sort out the ins and outs of exemptions and keeping your car, as well as dealing with the rest of the bankruptcy filing. Filing Bankruptcy When You Don’t Own the CarIf you are still making payments on your car loan when you file for bankruptcy, then the equity you have in the car becomes important. Equity is what you still owe on the car subtracted from its current value. For instance, say your car’s value is $9,000 and you still owe $4,000 that means you have $5,000 equity if you sold the car, you’d make $5,000. The exemption in your state is $6,000. Since your equity is less than the state’s exemption, you keep the car. If it’s more, the bankruptcy trustee can sell it, putting the equity toward your unsecured debt and allowing you to buy a $6,000 car. The longer you’ve owned the car and the more you’ve paid, the more likely it will be over the exemption limit. On the other hand, cars are not like fine wine they lose their value fast. The longer you’ve had it, the less its worth. 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Can I Bankrupt Car Title Loans? appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/can-i-bankrupt-car-title-loans/ Utah Code Liens 38-8-3: Enforcement of Lien–Notice Requirements–Sale Procedure and Effect Liens Enable Creditors to Assert Rights Over PropertyUnless the debtor is prudent and has taken measures to safeguard his assets, there is a risk that the creditors can seize assets and take your wealth. In order to know if your assets are at risk, it is imperative that you have an understanding of the different types of liens you may encounter as a small business owner: Consensual Liens Are VoluntaryAs the name implies, consensual liens are those to which you voluntarily consent, as a result of a loan or other advance of credit. The property purchased secures the buyer’s obligation to pay for the property. One common example is the residential mortgage: a home buyer consents to a bank taking a security interest in the home when a mortgage is obtained. Similarly, a security interest also is created when a car dealer arranges for financing for a car buyer. There are two broad classes of consensual liens: Statutory and Judgment Liens Arise by Operation of LawIn addition to consensual liens, there are many different types of liens that creditors can use to get at your assets to satisfy a debt. In certain circumstances, creditors obtain security interests by the operation of state (or federal) laws. These liens include: Judgment Liens Arise As a Result of a LawsuitOf the three types of liens (consensual, statutory and judgment,) the judgment lien is the most dangerous form, but one which the informed business owner may be able to eliminate. A judicial lien is created when a court grants a creditor an interest in the debtor’s property, after a court judgment. Judgment liens can arise in a wide variety of circumstances basically, any incident that can land you in court can end up generating a judgment lien. For example, if you are driving negligently and injure someone in an accident, the injured person may to sue for damages. To the extent that your insurance doesn’t cover the judgment, a judicial lien may be placed against your property to secure payment of the claim to the injured party. A plaintiff who obtains a monetary judgment is termed a “judgment creditor.” The defendant becomes a “judgment debtor.” The judgment in the lawsuit provides the basis for the lien. If the debt is not paid, the judgment creditor can then seek to enforce (or execute) the judgment. This can be accomplished by garnishing wages, seizing a bank account, or placing a lien against the debtor’s property. The lien is the first step by the judgment creditor in a process that will culminate in a sale of the attached property, to satisfy the judgment debt. Any lien placed on the defendant’s assets as a result of a court judgment is known as a judgment lien. If a lien were placed on a home, the judgment creditor could then seek to foreclose on the property, in the same way a mortgage holder such as a bank could foreclose if it were not paid. In this section, the term “judgment lien” is used in its strictest sense: a lien attributed to a court judgment, where the court judgment itself is the basis for the lien. An example would be a plaintiff who is awarded a monetary judgment against a defendant in a lawsuit based on negligence, and who then is granted an order of attachment against the debtor’s property. In contrast, this definition excludes a judgment based on a pre-existing lien (i.e., a prior consensual lien or statutory lien). Thus, for example, this definition would exclude a judgment in a mortgage foreclosure. This distinction is critically important in discerning what types of liens against exempt property can be eliminated. Notice to PerformIn real estate, a notice to perform is a document that sets up a contract with detailed expectations for either the buyer or the seller. If the expectations are not met, the party that sent the notice can cancel the real estate deal. The notice to perform serves two purposes—it gives the first party the chance to tell the other that there is an issue, and the second a chance to fix it before the deal is canceled. A notice to perform is a real estate clause or contract that requires parties to act by a set date. In many instances, you must give the notice to perform before you can cancel a purchase contract. Either the buyer or the seller can issue a notice to perform. However, the two parties may approach the process with different goals. You aren’t required to send a notice to perform if a buyer or seller misses a deadline. A gentle reminder from your real estate agent might be appropriate, but it depends on your circumstances. A notice to perform is usually only used if one party wants to cancel a deal because their requests aren’t met. Sellers might demand that buyers perform because they don’t want to drag out an escrow, only to find out the buyers were never going to close. In the case of a contingency release, the seller may be entitled to the buyer’s earnest money deposit if the buyer later cancels the transaction after releasing all contingencies. Why Use a Notice to Buyer to Perform?Buyers may not be aware of all the contractual agreements they’re making when they sign a purchase agreement. However, before a seller can cancel a contract due to the buyer’s failure to do any of these things, the seller must send the buyer a notice demanding that the buyer perform. Some common seller concerns are: 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeFree 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Code Liens 38-8-3 appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-code-liens-38-8-3/ Utah Code Title 38: Lien Against Stored Property–Attachment And Duration–Search For Financing Statement Prerequisite To Enforcement Of Lien. 1. When an owner and an occupant enter into a rental agreement, the owner and the owner’s heirs, executors, administrators, successors, and assigns have a lien upon all personal property located at the self-service storage facility for rent, labor, or other charges, present or future, in relation to the personal property and for expenses necessary for its preservation or expenses reasonably incurred in its sale under this chapter. What Is a Possessory LienA possessory lien grants a creditor the right to remain in possession of a property under the lien until the debtor has satisfied his or her debt. A lien is the legal claim that one person has over the property of another as security for the payment of a debt. The property rests in the hands of, or is possessed by, the individual who grants the lien. For example, if an individual buys something on credit, the item will not be in his or her possession until the debt to the creditor has been paid. This is different from most liens in the United States, where the lienee is granted possession of the property before the debt is satisfied, as is the case in a home mortgage. How Possessory Liens Are Applied to Commerce and TradeThe concept of the possessory lien has its roots in commerce from earlier eras. For example, in the past an innkeeper might be granted a lien on the property of the guests for the costs of them sleeping at the inn, having meals, and making use of other amenities there. The possessory was deemed appropriate given the high duty of care innkeepers took on. It is believed that early courts gave the possessory lien structure. It was a means to grant relief against charges in commerce, in particular for the providers of services to others when they were otherwise not able to sue for a reasonable worth and value of those services. In addition to innkeepers, other forms of commerce and trade can make use of possessory liens. This can include vendor’s liens, pledges of chattels, and garage men’s liens. For example, if the owner of a car does not pay charges for the towing, repair, and storage of a vehicle, the garage where the car is may hold the vehicle until those costs are paid off. The vehicle could ultimately become forfeit and sold if the garage has power of sale. Voluntary and Involuntary LiensCreditors, such as a mortgage or car lender, can ask borrowers to put up the purchased property as collateral as part of the condition of the loan. Considered a “voluntary lien,” this type of lien allows the lender to foreclose on the real estate or repossess the vehicle if the borrower fails to make timely payments or breaches (breaks) some other condition. Not all creditors need a borrower’s consent before getting a lien, however. Some creditors can obtain such rights without your permission. These liens are known as “involuntary liens.” Creditors with Involuntary LiensSome creditors have the right to attach your property by law. Others can win lien rights in court. Here are some examples of involuntary liens. Judgment LiensMost unsecured creditors, such as the holders of credit card debt, medical bills, and personal loans, must first file a lawsuit, win the action, and get a money judgment before obtaining lien rights. With the judgment in hand, a judgment creditor can place a judgment lien on your real estate and occasionally on personal property depending on the state in which you live. Other Types of Involuntary LiensMany creditors have a right to place a lien on your property without filing a lawsuit. • Property tax liens. Usually, a property tax lien takes priority over all other mortgages or liens on the property, even if the property tax lien was placed on the property after the other liens. If the taxes are not paid, the government can have your property sold to pay the property taxes. The government must follow whatever procedure the state prescribes, and you might have the opportunity to pay the taxes and costs and get your property back even after the “sale.” If you don’t pay your taxes, to protect its mortgage, the lender will usually pay the taxes and add that to your mortgage debt. The most common examples for voluntary liens are mortgages on a home and liens placed on cars that are financed. Voluntary liens can be placed on any type of property with value. The point of the voluntary lien is for a lender to secure collateral for a debt or service rendered. Example of Borrowing against Home EquityA married couple purchased their home 20 years ago with a mortgage of $200,000. A voluntary lien had a claim on the house until the mortgage was fully paid off. Once the debt was repaid, the lender no longer had a claim to the home, and the couple had full legal ownership. A few years later, the couple wants to build out an extension and a basement for their garage. The project is likely to cost more than $50,000, which the couple does not have on hand. They decided to borrow against the equity of their home. To secure a $50,000 loan from a lender, they created another voluntary lien by borrowing against the equity they had in their home. A lender, once again, has a claim against the property for the value of the amount loaned. The couple now has $50,000 cash to expand their garage, and they will make payments to the lender until the debt is repaid. Once that debt is paid off, the second voluntary lien will be lifted. How Are Non-Mortgage Liens Enforced?Once a non-mortgage lien is placed on your home, the holder of the lien can choose to take one of two routes. The lien holder can simply sit back and wait for the day you decide to sell or refinance your home. No buyer will want to purchase your home, nor will any lender refinance your mortgage, with the lien still attached. At that time, you’ll be forced to pay off the holder of the non-mortgage lien to have the lien removed. The holder of the non-mortgage lien may also enforce its lien by foreclosing, although this is less common. The process of foreclosing on a non-mortgage lien is governed by state law and varies depending on the type of lien that is being foreclosed. For example, property tax liens may sometimes be foreclosed outside of court, while the holder of a mechanics’ liens must typically sue the homeowner in court in order to foreclose. Homestead ExemptionOne factor is the homestead exemption, which exempts a certain portion of the value of a debtor’s primary residence from liability to certain creditors. (Depending on the state, the homestead exemption might not apply to mortgage liens, mechanics’ liens, and property tax liens.) The amount of the homestead exemption varies from state to state from zero in some states to an unlimited amount in others. The Priority of the Non-Mortgage LienAnother factor is the priority of the non-mortgage lien. Many homeowners have one or more mortgage liens recorded against their property, and these mortgage liens typically have priority over subsequently recorded non-mortgage liens. (There are exceptions to this rule. For example, some property tax liens have super-priority over all liens recorded against the property. For more on the priority of liens, see our article The First in Time, First in Right Rule.) The Cost of ForeclosingA third reason non-mortgage liens are rarely foreclosed is the cost of foreclosing. If the non-mortgage lien is foreclosed through court, the party doing the foreclosing must pay all of the substantial costs of the typical lawsuit. Even if the non-mortgage lien is foreclosed outside of court, there are still costs involved, such as the cost of publishing notice of the foreclosure sale in a newspaper and payment to the sheriff or other official administering the foreclosure auction. How Do Non-Mortgage Liens Affect Mortgage Liens?Non-mortgage liens typically have little impact on mortgage liens. Most non-mortgage liens are recorded after mortgage liens (the reason being that lenders will not loan money if there is a judgment, tax, or mechanics’ lien recorded against the property) and therefore have a lower priority than the mortgage liens. This means that, in any foreclosure sale, the mortgage liens will be paid first out of the proceeds, and the remaining proceeds will be paid to the non-mortgage liens in order of priority. As described above, this alone may be enough of a deterrent to keep a holder of a non-mortgage lien from foreclosing, as there often will not be enough equity remaining to cover the lower priority liens once the mortgage is paid off. One exception touched upon above relates to property tax liens. In a number of states, property tax liens will take priority over all other liens, including mortgage liens, regardless of when the lien was recorded. Because of the super-priority of property tax liens, many mortgages give the lender the right to collect property taxes from the borrower or foreclose if the homeowner fails to pay property taxes. In the event of foreclosure of a property tax lien, a mortgage lender will often pay the delinquent property taxes, roll that amount into the outstanding mortgage debt, and foreclose on its own. How to Remove a LienIf you own property with a lien against it, you may be stuck with that property until you clear up any issues causing the lien. Liens can generally only be removed by the person or organization that created them, but there are several exceptions. Pay It OffUltimately, if a lien is legitimate, you may need to pay debts to get the lien released. The process might be easier than you think; liens are routinely removed when you sell your home or your financed auto. SettleTry negotiating if you don’t have enough to pay off a debt. Creditors might be willing to accept less than you owe if they can get something now and put the loan behind them. Get It CorrectedIf you believe a lien is not legitimate, contact the lien-holder. In some cases, lien releases get lost or forgotten. For example, you might buy a used vehicle from somebody who previously had an auto loan, and the lien release fell through the cracks. Bringing the matter to the right person’s attention might be all that’s needed. Dispute ItWhen there’s any disagreement, things get much more difficult. You might need to bring legal action against a lien holder to have the lien released. It’s also a good idea to investigate whether or not any claims are still valid—some liens expire after several years. 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Self Storage Code 38-8-2 appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-self-storage-code-38-8-2/ Utah Code – 38-8-1: Definitions.As used in this chapter:1 “Default” means the failure to perform in a timely manner any obligation or duty set forth in this chapter or the rental agreement. Types of Property for Tax PurposesYou’ve always dreamed of buying a home, condo, or other structure. You basically want a place you can truly call your “own.” But before you set out to buy your dream home, you’ll want to know more about the different types of property for tax purposes. Below you will find key information about real and personal property and where to go if you additional questions. Remember, it is always best to consult with a local real estate attorney before making any major real estate decisions to be sure you have the most up-to-date law in front of you. Real and Personal PropertyThere are two basic categories of property: real and personal. The assessment procedures and the tax rate will vary between these two categories. Real property, in general, is land and anything permanently affixed to land (e.g. wells or buildings). Structures such as homes, apartments, offices, and commercial buildings (and the land to which they are attached) are typical examples of real property. Basically, personal property is any property that is not real property. Personal property is not permanently attached to land. In most cases, it is moveable and does not last as long as real property. Personal property includes vehicles, farm equipment, jewelry, household goods, stocks, and bonds. Types of Personal PropertyPersonal property is divided into “tangible” and “intangible” forms. Tangible personal property is just that: it has a physical form. It can be seen, touched, and moved. Examples of tangible personal property include clothing, books, and computers. On the other hand, the notion of intangible personal property is an abstraction. They do not usually have physical forms (other than certificates or accompanying records). These include assets such as patents, trademarks, stocks, and bonds. Classes of PropertyIn addition to the basic types of property, property is grouped into various classes and subclasses for purposes of tax assessment. These classes are based on the property’s use. These schedules of classes vary considerably from state to state. For example, a state may have the following classes of property: Lease AgreementBefore moving into a rental property, many landlords require their tenants to sign lease agreements. A lease is a contract between a tenant and landlord that gives a tenant the right to live in a property for a fixed period of time, typically covering a 6- or 12-month rental period. A contract between the landlord and tenant binds the parties to the lease. Residential leases are tenant contracts that define in clear, thorough terms the expectations between landlord and tenant, including rent, rules regarding pets, and duration of agreement. A strong, well thought out, and well-worded lease contract can help ensure both parties’ best interests are protected, as neither can alter the agreement without written consent from the other. Rental AgreementRental agreements are very similar to lease agreements. The biggest difference between lease agreements and rental agreements lies in the length of the contract. Unlike a long-term lease agreement, a rental agreement provides tenancy for a shorter period of time usually 30 days. In most cases, rental agreements are considered “month-to-month,” and automatically renew at the end of each term period (month), unless otherwise noted by tenant or landlord. With a rental agreement, the landlord and tenant are free to change the terms of the agreement at the end of each month-to-month period (so long as appropriate notice procedures are followed). Typical Items In Leases And Rental AgreementsBoth lease and rental agreements may vary in terms of structure and flexibility. For instance, some contracts may include a rental unit pet policy, while others might include an additional addendum regarding rules or regulations, such as excessive noise. Depending on the state, landlords may be required to include certain disclosures on their lease or rental agreements such as asbestos, mold, and registered sex offender information. When drafting your lease or rental agreement, always be sure to comply with your state and federal laws. Lease Agreement vs. Rental Agreement: Pros and ConsThe pros and cons of each specific contract fall into a few different categories and depend on the landlord-tenant relationship you’re looking for. Pros of a Lease:If stability is your main priority, a lease may be the right option. Many landlords prefer leases to rental agreements because they are structured for stable, long-term occupancy. Placing a tenant in a property for at least a year may offer a more predictable rental income stream and cut down on turnover costs. Cons of a Lease:That said, once a lease agreement is signed, the rental cost is set in stone until the end of the agreement. In an up-and-coming area with consistently growing property values, 12 months of a fixed rental cost could mean you miss out on substantial incremental income from market increases. According to Home Buying Institute, the median home price in the U.S. rose by 8.1% over the past year and is predicted that prices would rise by 6.5% in the next 12 months. Pros of a Rental Agreement:Due to the short term of a rental agreement, they allow much more flexibility when it comes to rent increases. Technically speaking, rent may be revised each month with a rental agreement to stay in-line with the current fair market rent so long as rent increases comply with local law and the notice provisions that govern the month-to-month rental. Using a tool such as Rentometer is useful for searching rental price comparisons in your area. It’s important your tenant understands with a rental agreement the landlord has the ability to increase the rent rate month to month. A rental agreement is ideal for a renter who can’t commit to a 12-month lease period. It may open the door to many qualified tenants looking for a short-term rental, which may be in high demand near college campuses or major hospitals. Cons of a Rental Agreement:A tenant looking for a long-term lease may be scared away by the flexibility of a month-to-month lease, which may leave them subject to frequent rent raises or indeterminate rental periods. For landlords, the costs of more frequent tenant turnover should also be kept in mind, including advertising, screening, and cleaning costs. Additionally, if your rental is located in an area with lower occupancy rates, you may have trouble keeping your unit rented for long periods of time. Terms to Include in Your Lease or Rental AgreementA residential lease or rental agreement is the blueprint of a tenancy: It lays out the rights and responsibilities of both the landlord and the tenants. It’s not only a binding contract that the parties can enforce in court; it’s also a highly practical document full of crucial business details, such as how long the tenants can occupy the property and the amount of rent due each month. 1. Names of All Tenants and Occupants 2. Description of Rental Property 3. Term of the Tenancy 4. Rental Price 5. Security Deposits and Fees 6. Repair and Maintenance Policies 7. Landlord’s Right to Enter Rental Property 8. Rules and Important Policies 9. Contact Information 10. Required Landlord Disclosures 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Self Storage Lawyer St. George UtahSelf Storage Attorneys Ogden UtahThe post Utah Self Storage Code 38-8-1 appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-self-storage-code-38-8-1/ Under the Utah exemption system, homeowners may exempt up to $30,000 of their home or other property covered by the homestead exemption. You may use the homestead exemption to protect more than one parcel of land, but you may protect up to one acre only. Doubling for Married CouplesIf you file a joint bankruptcy with your spouse in Utah, you can double the homestead exemption to protect up to $60,000 in your home. In Utah, the homestead exemption applies to real property, including your home or mobile home. You may also protect water rights that you own, if the water is used for domestic or irrigation purposes. In order to use the $30,000 exemption to protect your home, it must be your primary personal residence. Utah law permits you to protect property that is not your primary personal residence, but if you don’t live in the property, the exemption amount is limited to $5,000. The homestead exemption also applies to sale proceeds for up to one year after the property is sold. Can You Use the Federal Bankruptcy Exemptions in Utah?Some states allow bankruptcy filers to use the federal bankruptcy exemptions instead of the state exemptions. Utah is not one of those states. If you reside in Utah, you must use the state exemptions. Homestead DeclarationsIn Utah, you must file a homestead declaration (a form filed with the county recorder’s office to put on record your right to a homestead exemption) in order to claim the homestead exemption. Contact your county recorder for information on how to file a homestead declaration. Refer to the Utah Code Section 78B-5-504 for the information you are required to include in your homestead declaration. Other Information About the Utah Homestead ExemptionIn Utah, you cannot use the homestead exemption to protect your property from debts due to property taxes or assessments, purchase (such as a mortgage), child support, or liens that you allowed against your property by mutual contract. Homestead ExceptionsUnfortunately, Utah’s homestead exemption laws might not protect you from every creditor. There are four general exceptions under which you may still be forced to sell or forfeit property or real estate: Additionally, these homestead protections exist as state laws, and federal income tax liens may be superior to Utah’s homestead exemptions. Under the Constitution’s Supremacy Clause, state laws are subject to federal override if there is an overlap or a conflict of law. However, the Internal Revenue Service (IRS) has generally been averse to foreclose on a citizen’s home to collect on a tax debt. Instead, the IRS usually gets involved only if a homestead property is mortgaged or sold off before the federal tax lien has expired. The homestead exemption is a legal provision that helps shield a home from some creditors following the death of a homeowner’s spouse or the declaration of bankruptcy. The homestead tax exemption can also provide surviving spouses with ongoing property tax relief, which is done on a graduated scale so that homes with lower assessed values benefit the most. The homestead exemption is helpful since it is designed to provide both physical shelter and financial protection, which can block the forced sale of a primary residence. However, the homestead exemption does not prevent or stop a bank foreclosure if the homeowner defaults on their mortgage. Foreclosure occurs when a bank takes possession of a home due to failure to make timely mortgage payments. How Property Taxes WorkIf you’re not familiar with property taxes, here’s a quick refresher. The value of your home will be assessed, and then a property tax rate will be applied to that assessed value. You can appeal the value if you think it’s too high, but in general property tax bills are what they are. Property tax rates fluctuate according to the decisions and needs of the tax authorities in your area. If the city decides it needs more funds, property tax rates may increase. Sometimes, residents can vote on these rate changes and in other cases the decision is made with public input but doesn’t require public consent. How Homestead Tax Exemptions WorkHomestead tax exemptions shelter a certain dollar amount or percentage of home value from property taxes. They’re called “homestead” exemptions because they apply to primary residences, not rental properties or investment properties. You must live in the home to qualify for the tax break. Some states exempt a certain percentage of a home’s value from property taxes, while other states exempt a set dollar amount. If your state uses a percentage method, the exemption will be more valuable to homeowners with more valuable homes. If your state uses a flat dollar amount for its exemption, the exemption will be more valuable to homeowners with less expensive homes. Who’s Eligible for the Homestead Tax Exemption?In some states, you’ll get the homestead exemption (or a bigger one) if your income is low, you’re a senior, you have a disability or you are a veteran. In most cases, these exemptions can’t be combined if you fall into more than one category. Some states also set an upper limit on the value of homes that can qualify for exemptions. State governments can’t directly affect property tax rates because rates are set at the local level. So statewide homestead tax exemptions are a way for state governments to lower property tax bills indirectly. They do this to encourage homeownership, keep residents happy and give a property tax discount to people in need of a tax break. What Kinds of Exemptions Are Available?There are multiple kinds of homestead exemptions available, and they vary by location. Some exemptions are mandatory state-wide, while others are “local option,” meaning it is up to the county or city government to decide the extent of the exemption. School taxes: All residence homestead owners are allowed a $25,000 homestead exemption from their home’s value for school taxes. Who Qualifies for an Exemption?Any homeowner in the state of Utah can qualify for a homestead exemption, so long as you meet the following criteria: How to Apply For a Homestead ExemptionApplying for a homestead exemption may sound complicated, but with a two-step process and familiarity with the deadlines, you can save thousands of dollars on your property taxes. Steps to Apply Download the Residence Homestead Exemption Application from your county appraisal district’s website and fill it out. Manufactured homeowners must also provide one of the following: Selling or Buying a Home with an Existing Homestead ExemptionVery few people buy or sell a home on January 1, so property taxes can get confusing in that first year as both the buyer and seller will owe taxes on the property, pursuant to their time in ownership. Homestead exemptions will also apply to those taxes, so it’s important to know the rules. For properties with standard homestead exemptions in place, those exemptions will usually remain for the year of the sale and the taxes will reflect those exemptions, benefitting both seller and buyer. The buyer will then have to apply for a homestead exemption in the following year as the new owner of the property. It is important to note that any homestead cap in place will be removed when the new homestead exemption is applied for and this can cause a significant jump in property taxes that first year as the home will be taxed based on its full appraised value. If the property has an Age 65 or Older or Disability exemption, the exemption will only stay in place for the year if the qualifying person does not establish a homestead exemption on their new property during that year or if the new owner qualifies for that exemption in their own right. If those criteria are not met, the taxes will be prorated and the homestead exemption will only be in effect during the time when the qualifying party owned the property. Again, property taxes in this situation could be much higher than what was paid the previous year. Other Property Tax ExemptionsThere are a number of additional partial or absolute property tax exemptions available to Texas property owners. They offer exemptions for a variety of circumstances, including inherited property owned by multiple parties, solar and wind-powered improvements, and properties owned by charitable organizations, to name a few. Benefits of Homesteading Your Primary ResidenceHomesteading your principal residence has many advantages. Below are three reasons why you should definitely consider checking to see if your property qualifies for the homestead tax exemption. 1. Tax Exemptions 2. Protection of Your Property 3. Protection for Your Family 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Homestead Exemption appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-homestead-exemption/ Most people think that if they go bankrupt, it will get rid off all of their debts. However, this is not the case; bankruptcy does not clear all debts in all circumstances. You may still be liable for some debts, even after discharge from bankruptcy. This also includes any new debts you may incur during bankruptcy. Secured DebtsSecured debts cannot normally be included in bankruptcy. These debts are secured against property such as your house or car. If the property or car was sold to provide funds towards the bankruptcy, but the amount it sold for did not cover the amount owed on the mortgage, secured loan or hire purchase agreement, then the balance (known as a shortfall) can be included in the bankruptcy. Child Maintenance/CSA PaymentsAny debts from an order made in a family or domestic court, such CSA claims for child support are not included in bankruptcy. Income Support, Benefit and Tax Credit Overpayments By Means Of FraudIf the DWP have stated that the overpayments of benefits and tax credits were fraudulent, then they cannot be included in bankruptcy. Court FinesCourt Fines imposed for an offence (including speeding and parking fines) and liabilities from a confiscation order made under S.1 of the Drug Trafficking Act 1986 0r S.71 of the Criminal Justice Act 1988 will not be included in bankruptcy. Student LoansStudent and Educational loans cannot be included in bankruptcy. FraudDebts due to fraudulent activity will not be included in bankruptcy. Personal Injury ClaimsAny amounts owing due to personal injury claims against you will not be included in bankruptcy; this often includes debts to the MIB (Motor Insurers’ Bureau). Debts Gained Just Before BankruptcyAny debts obtained just before bankruptcy; where there was no possibility of the credit agreement being honoured (the debt paid) will be excluded from bankruptcy. How Long Does It Take To Complete The Bankruptcy Application Forms?You need to complete the necessary bankruptcy forms, before you can apply to go bankrupt. They consist of: Cash Flow InsolvencyWhen you can’t pay a debt because you don’t have the money, you are cash-flow insolvent. If insolvency were a medical problem, doctors might call it an acute condition. Many people see financial trouble in their future, what might be called a chronic problem, but they aren’t cash-flow insolvent until they can no longer pay their bills. Financial trouble is chronic; not paying you bills is acute, since that’s the moment when a problem becomes a personal crisis. Cash flow, or equitable, insolvency impacts both businesses and individuals. Usually it occurs when they’ve exhausted other ways of resolving debt. If you have a credit card payment due, you might be able to liquidate an asset like a lawnmower to pay a debt and avoid cash-flow insolvency, at least for the moment. When you run out of assets to sell and places to borrow money, and your income isn’t enough to cover your debts, you’ll probably be forced to negotiate a payment agreement with your creditors, either directly or through a debt management firm. Deciding what to do about this type of insolvency requires taking a cash-flow test. The debtor needs to evaluate current and future cash flows to determine whether your income is enough to cover debt payments. If you have an inheritance distribution or some other windfall coming in a few months, your insolvency might be temporary, but if you’ve sold your assets and your income is not going to increase, you might not have a easy way out of insolvency. The analysis can help you decide whether to seek a debt settlement or file for bankruptcy protection. Balance Sheet InsolvencyBusinesses commonly use a balance sheet insolvency test to decide whether to take steps to stay afloat or file bankruptcy. To decide, the business will evaluate its inflows, outflows and assets. If inflows are less than outflows and the value of the business’ assets are worth less than what is owed a condition called negative net assets — it might conclude that restructuring without the help of a bankruptcy filing might be pointless. But if it has assets that could be sold – a truck or store locations, for instance – that could be used to cover debts, it might attempt to sell the asset and shrink the business. Financial advisors will review business operations, suggest scenarios for reducing or eliminating debt and suggest a course of action. Staying in business might require that the company convince its creditors that it has made the correct assumptions about future cash flows, but many times businesses and their lenders don’t see eye to eye. A business can be cash flow insolvent, but balance sheet solvent, if it holds non-liquid (non-cash) assets worth more than its liabilities. The reverse is also possible: A business can be balance sheet insolvent (more debt than assets), but cash flow solvent if its revenues allow it to meet its immediate financial obligations. Many companies that hold long-term debt operate continually in this state. Insolvency vs. BankruptcyInsolvency is not the same as bankruptcy. Insolvency is a state of economic distress, whereas bankruptcy is a court order that decides how an insolvent debtor will deal with unpaid obligations. That usually involves selling assets to pay the creditors and erasing debts that can’t be paid. Bankruptcy can severely damage a debtor’s credit rating and ability to borrow for years. An individual or company can be insolvent without being bankrupt especially if the insolvency is temporary and correctable but not the opposite. Insolvency can lead to bankruptcy if the insolvent party is unable to successfully address its financial condition. Insolvent companies can reverse course by cutting costs, selling assets, borrowing money, renegotiating debt or allowing themselves to be acquired by a larger corporation that agrees to take over the insolvent company’s debts in return for control of its products or services. What If I’m Insolvent?If you are financially overwhelmed and sure you can’t pay your debts, you should contact a non-profit debt counselor or debt management company that can help you review your balance sheet. Even if you don’t have enough income to pay your debts, a debt manager can try to negotiate a settlement that will partially repay what you owe and avoid a bankruptcy filing. You can also try to negotiate with creditors on your own. If you owe a large credit-card debt, contact the card issuer and explain your situation. Though the debt holder is under no obligation to offer a workout plan, reduce your debt or trim you interest rate, it’s in their best interests to try. So, you might be able to reach an agreement if you can convince the creditor that it’s either an agreement or default. Remember, if you reach an agreement that involves debt forgiveness, you might be liable to pay taxes on the amount the creditor writes off. However, the Internal Revenue Service allows insolvent and bankrupt taxpayers to reduce cancelled debt by their insolvency amount. For example, if a creditor agrees to settle a $20,000 debt with a $5,000 payment from you, you would have cancelled debt income of $15,000. But if you only had $3,000 in assets at the time you reached the agreement, you would insolvent in the amount of $12,000 ($15,000 cancelled debt income minus $3,000 assets). You would then report $3,000 in income on your taxes ($15,000 less the $12,000 insolvency amount). If you are unclear about this, contact a nonprofit credit counseling agency or a tax professional. A court can deem a company or individual insolvent by issuing an insolvency order. A debtor can petition for an insolvency order as part of a request for personal bankruptcy protection. In most jurisdictions, an insolvency order temporarily prevents any attempts at debt collection. Conversely, a creditor can, in some instances, request an insolvency order to be issued against a debtor, if there is reason to believe that the debtor can repay all or part of the debt. In that case, the court can issue an insolvency order, requiring the debtor to repay all or part of the debt. Reasons for InsolvencyIndividuals and businesses can become insolvent for a vast number of reasons, but some of the most common include: What Are Bankruptcy Exemptions?Exemptions allow you to keep a certain amount of assets safe in bankruptcy, such as an inexpensive car, professional tools, clothing, and a retirement account. If you can exempt an asset, you don’t have to worry about the bankruptcy trustee appointed to your case taking it and selling it for your creditors’ benefit. Many exemptions protect specific property types, such as a motor vehicle or furniture, up to a particular dollar amount. Sometimes an exemption protects the entire value of the asset. Some exemptions, called “wildcard exemptions,” can be applied towards any property you own. The purpose of bankruptcy isn’t to strip you of all of your belongings—it’s to give you a fresh start. In addition to protecting the basics, you’ll likely be able to protect other things, too, like religious texts, a seat in a house of worship, or a burial plot. Some states even exempt chickens and feed. But you shouldn’t assume that everything will be safe. • Luxury items. Exemptions for yachts, collections, expensive artwork, and vacation homes don’t exist. Owners of such valuable assets often sell the property and pay off debt instead of filing for bankruptcy. Chapter 7 BankruptcyChapter 7 bankruptcy is a liquidation bankruptcy where the appointed trustee sells off your nonexempt assets to pay your creditors. Exemptions help you protect your assets in Chapter 7 bankruptcy because the bankruptcy trustee can’t sell exempt property. For example, if your state has a $5,000 motor vehicle exemption and you only have one car worth $4,000, then you can keep it. For more information, see Exemptions in Chapter 7 Bankruptcy. Chapter 13 BankruptcyA Chapter 13 bankruptcy allows you to keep all your property and reorganize your debts (which can mean paying less on some of them). However, the amount you must pay particular creditors still depends on how much property you can exempt. Non-priority unsecured creditors (such as credit card issuers) must receive an amount equal to your nonexempt assets. So in Chapter 13 bankruptcy, exemptions help keep your plan payments low by reducing the amount you must pay creditors. State and Federal Bankruptcy ExemptionsEach state has a set of bankruptcy exemptions. Federal law provides an exemption set, too. Some states require you to use the state exemptions; others give you the option of choosing either its set of exemptions or the federal system (you cannot mix and match the two). Which state’s exemption laws you’ll qualify to use will depend on where you lived during the last two years (called the “domicile requirements.”). Federal Non-bankruptcy ExemptionsIn addition to state and federal bankruptcy exemptions, there is a set of federal exemptions that exist under non-bankruptcy law. These exemptions function similarly to bankruptcy exemptions in protecting your property in bankruptcy. However, federal non-bankruptcy exemptions are only available to you if you are using your state’s exemptions (you cannot combine the federal bankruptcy and non-bankruptcy exemptions). If you are using state exemptions, then you can use the non-bankruptcy exemptions in addition to those. Cons of Filing Chapter 7 BankruptcyFiling a Chapter 7 bankruptcy is not right for everyone. And even if it feels like the best debt relief option for you, it may not be once you consider some of the cons of Chapter 7. You can’t file Chapter 7 if you make too much moneyIf you’re making less than the median income, you’re probably wondering how that’s even possible. Don’t fret; this is not about you. This is about folks who have money they can put into savings after paying their main living expenses. That’s called having disposable income and it’s calculated by the means test. Having too much disposable income means you’re not eligible to simply walk away from your debt. But, while you can’t file Chapter 7, you can still get a bankruptcy discharge after completing a Chapter 13 repayment plan. If you have good credit, it will likely take a temporary hitThose that are able to maintain their monthly payments and keep their credit score high before filing their bankruptcy petition will see their score drop initially. But, a bankruptcy filing often does more good than harm to the filer’s credit score. Plus, once their bankruptcy discharge is granted, they can begin increasing that pesky credit score immediately. It does not erase all unsecured debtsSome unsecured debts, like alimony or child support can never be discharged in bankruptcy. Other things, like tax debts and student loans can be quite hard to eliminate by filing bankruptcy. You can lose certain types of propertyOne of the trades-offs for getting a bankruptcy discharge in a matter of a few months is the requirement to give up certain expensive items. Nonexempt property – the type of property the bankruptcy trustee can sell to pay creditors in a Chapter 7 bankruptcy case – is pretty rare. If you own expensive property you don’t want to lose, it’s best to speak to a bankruptcy lawyer. Then you’ll know whether that’s really a possibility and, if so, whether filing Chapter 13 is a better debt relief option for you. Your Chapter 7 bankruptcy filing does not protect othersA bankruptcy filing under Chapter 7 eliminates only your obligation to pay the debt. It does not wipe out the debt for anyone else. Chapter 13 is the only type of bankruptcy that can protect a co-signer, but that only works because you end up paying the debt through your repayment plan. 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Bankruptcy Professionals appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-bankruptcy-professionals/ Divorce is never an easy decision to make, and the legal process that comes with it can be just as daunting. At Ascent Law, we have seen countless clients facing the complexities of divorce and the many questions that arise during this challenging time. One of the most common questions is: “Do you need a divorce lawyer?” In this comprehensive blog post, we will explore this question in-depth, providing you with the information you need to make an informed decision. So, let’s dive in! Understanding Divorce: The BasicsBefore we answer the central question of this post, let’s first understand what divorce is and how it works in Utah. Divorce, also known as the dissolution of marriage, is the legal process that terminates a marriage or marital union. It involves the reorganizing or canceling of the legal duties and responsibilities of marriage, thus dissolving the bonds of matrimony between a married couple under the rule of law. In the state of Utah, the grounds for divorce include irreconcilable differences, adultery, impotency, desertion, and more. What Does a Divorce Lawyer Do?A divorce lawyer is a legal professional who specializes in family law, with a focus on issues related to divorce, including property division, child custody, child support, and spousal support. They provide guidance, advice, and representation throughout the divorce process to protect their clients’ rights and interests. Here are some of the primary responsibilities of a divorce lawyer:
The Pros and Cons of Hiring a Divorce LawyerNow that we have a basic understanding of what divorce entails, let’s dive into the benefits and drawbacks of hiring a divorce lawyer. Benefits of Hiring a Divorce Lawyer
Drawbacks of Hiring a Divorce Lawyer
When You Should Consider Hiring a Divorce LawyerWhile there are both benefits and drawbacks to hiring a divorce lawyer, there are specific situations where having legal representation is crucial. These include:
IV. When You May Not Need a Divorce LawyerThere are situations where you might not need to hire a divorce lawyer. These include:
V. Alternative Options to Hiring a Divorce LawyerIf you decide not to hire a divorce lawyer, there are alternative options to help you through the process:
ConclusionSo, do you need a divorce lawyer? Deciding whether or not to hire a divorce lawyer depends on your specific situation, needs, and resources. It is essential to consider the complexity of your case, the level of conflict with your spouse, and your ability to navigate the legal system on your own. If you find yourself in a situation where hiring a divorce lawyer is necessary, Ascent Law, based in West Jordan, Utah, is here to help guide you through the process and protect your interests. If you are unsure about your need for a divorce lawyer, consider scheduling a consultation to discuss your options. The post Do You Need a Divorce Lawyer? appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/do-you-need-a-divorce-lawyer/ A bankruptcy filing can be legally complicated, as well as time-intensive. In many cases, your first big decision and major time commitment will be finding a bankruptcy lawyer. While you may already have an attorney from your business, estate planning, or family matters, they might not be experienced in bankruptcy. More often, you will have to find an attorney from scratch. This can be well worth the effort because lawyers who practice exclusively in bankruptcy tends to do it quickly and cheaply. Using a Bankruptcy AttorneyIt may feel counterintuitive to pay attorney’s fees for help with your financial crisis. But professional assistance can mean the difference between a setback and a total loss when you have serious debt issues. You can have a free consultation with most bankruptcy attorneys to explain your situation and see if your personalities are a good fit. There is no legal obligation to have an attorney when you go into bankruptcy. However, bankruptcy law is a complicated and ever-changing system. Having knowledgeable assistance is a practical necessity. An experienced bankruptcy attorney can help you: Having a bankruptcy attorney is increasingly important. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. Among other changes, this law modified existing bankruptcy procedures. It shifted responsibility for providing documentation and proving your inability to pay debts to the bankruptcy debtor (you). Choosing Your AttorneyYou will want to meet with any attorney you consider hiring to see if you and the attorney can work together in general. You will really be interviewing the attorney just like you would interview a job applicant. Some bankruptcy attorneys run their offices like an assembly line, which is not necessarily bad. It means they won’t be wasting your time either. You need to decide whether the style of any given attorney is one with which you can work. Select the attorney with experience and an approach that fits well with you. Questions Your Lawyer Will Ask About BankruptcyTo do the best possible job on your behalf, your attorney needs your input and cooperation. At your first meeting with your attorney, you should be prepared to provide the following information and answer important questions. If you are filing with a spouse, be ready to share their information as well. General Questions• Will this be a joint bankruptcy petition? Documents Your Bankruptcy Attorney NeedsOnce you hire an attorney to assist with your bankruptcy case, it is important to provide the information they need to best advice and represent you. Although every person’s financial life is different, some basic documents are virtually always helpful in better understanding your financial position. Examples of important documents include, but are not limited to: Bankruptcy cases can involve multiple people and creditors and take years of litigation. It can be a personal comfort to have someone who understands the system and is on your side. Benefits of Hiring a Bankruptcy Lawyer1. Hiring a lawyer increases your chances of successfully eliminating debt. In the case of Chapter 13 Bankruptcy, debtors represented by a lawyer are more than ten times more likely to reach a successful outcome than individuals representing themselves. Risks of Filing Bankruptcy without a Bankruptcy LawyerOne little mistake could cost you everything. If you file incorrectly or the filing is incomplete, the bankruptcy judge could throw out your case. If that happens, you may not be able to refile for any type of bankruptcy in the near future or if you can refile, you may lose protection from creditors taking action against you. Incorrectly listing assets could cost you not only your debt being discharged, but you could lose the possessions you sought to protect. Bankruptcy lawyers know how to protect your assets and successfully lead you through the process. Mistakes could mean criminal charges for fraud or perjury. Committing fraud in a bankruptcy case can land you in jail. You cannot hide assets or income from the bankruptcy trustee or judge (even those that you haven’t received yet). Do you know the law well enough to avoid this serious situation? Did you sign over a vehicle, deed property, gift money, or other assets to a friend or relative? A bankruptcy lawyer will help you file your petition and truthfully list your assets in a way that protects you from criminal charges. You may end up paying more of your debt. When communications between the bankruptcy trustee and your creditors occur, can you respond without negatively impacting your bankruptcy discharge? If a creditor files a lawsuit or contests your discharge of debt – how will you respond? A bankruptcy lawyer can protect your interests, effectively communicate with all parties involved, and save you money in negotiating with creditors. 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Bankruptcy Lawyers appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-bankruptcy-lawyers-2/ 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 DischargedIn both Chapter 7 and Chapter 13 cases, you will get a discharge order from the bankruptcy court. This order stops creditors from taking any collection actions against you in the future. What 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. 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. Budgeting After Chapter 7 BankruptcyMany people file for bankruptcy due to no fault of their own after experiencing an unexpected event, such as an illness, job loss, or divorce. Even so, everyone can benefit from cutting unnecessary costs and building a nest egg to fall back on—not just those who filed for bankruptcy to wipe out credit card balances. Reviewing your spending habits and making a comfortable budget is a commonsense place to start. Avoid buying items on credit that you can’t afford to pay for in cash. If you take out new credit cards, pay off most, if not all, of your account balance each month so that you don’t accrue interest. Credit Scores After Chapter 7 BankruptcyFiling for bankruptcy comes with a downside it can hurt your credit initially. Although a Chapter 7 bankruptcy will usually stay on your credit report for ten years, the impact goes down with time. Your bankruptcy won’t prohibit you from obtaining new credit and moving on with your life. If you’re like most, your case will move through the process in about four months, and you’ll be able to begin rebuilding your credit after receiving your bankruptcy discharge. In fact, most debtors start receiving new credit card offers shortly after they receive their discharge. Credit card companies realize that your discharge will free up money for other bills, so you’re more likely to pay back your debts after bankruptcy. Plus, you won’t be able to wipe out debt again using the bankruptcy process for several years. Find out when you’ll be eligible for another bankruptcy discharge. Rebuilding Credit After Chapter 7 BankruptcyKeeping your available credit high is a factor that drives up your credit score, along with maintaining a mix of credit types, such as a home loan, car loan, and credit card accounts. So when you begin using credit again, you’ll want to keep balances below 30%. Keep reading for other factors to consider. Evaluating Credit Card OffersYou will typically begin to receive new offers for credit after bankruptcy. However, be aware that many new credit card offers will have low limits, high-interest rates, and high annual fees. Reviewing the offer terms carefully before signing up for a new credit card after bankruptcy is essential. The goal is to accept a credit card with the highest possible limit because credit reporting agencies rate you based on your total available credit. Not only can lower limits can harm your score, but you’ll want to pay off the majority of your balance each month. If you don’t qualify for a typical, unsecured credit card, you might want to start rebuilding your credit by getting a secured credit card from your bank. You’ll deposit a certain amount of money in the bank as collateral for the card. In exchange, you have a line of credit equal to the amount in the account. A secured credit card rebuilds credit because the creditor typically reports payments on your credit report; you’ll want to be sure that will happen. Monitoring Your Credit ReportAlso, it’s essential to examine your credit report for mistakes after your discharge. If you notice an error, correct it promptly so that it doesn’t derail your efforts to rebuild your credit. You can check your credit report for free using annualcreditreport.com (use the official site, not a lookalike). You’re entitled to one free copy per year from each of the three reporting agencies. Requesting a report from one of the three agencies every four months is an excellent way to keep track of changes. Also, all of the three reporting agencies allow you to file a dispute online. Buying a Car or House After Chapter 7 BankruptcyMany people are surprised to learn that filing bankruptcy won’t derail a car purchase or homeownership for long. If the bankruptcy helps clean up your credit faster than you’d be able to do on your own as it does for many without the means to pay off outstanding debts—your dream might be closer than you imagine. Specifically, if you take steps to rebuild your credit, it’s possible to get relatively reasonable interest rates when buying a new car within one to two years after bankruptcy. Securing a home loan within four years is well within reach—and some people start the home purchasing process in as few as two. Which Debts Do I Still Owe after Bankruptcy?When your bankruptcy is completed, many of your debts are “discharged.” This means they are canceled and you are no longer legally obligated to pay them. However, certain types of debts are not discharged in bankruptcy. The following debts are among the debts that generally may not be canceled by bankruptcy: How Long will Bankruptcy Stay on My Credit Report?The results of your bankruptcy case will be part of your credit record for ten (10) years. The ten years are counted from the date you filed your bankruptcy. This does not mean you can’t get a house, a car, a loan, or a credit card for ten years. In fact, you can probably get credit even before your bankruptcy is over! The question is, how much interest and fees will you have to pay? And, can you afford your monthly payments, so you don’t begin a new cycle of painful financial problems. Debts discharged in your bankruptcy should be listed on your report as having a zero balance, meaning you do not owe anything on the debt. Debts incorrectly reported as having a balance owed will negatively affect your credit score and make it more difficult to get credit. You should check your credit report after your bankruptcy discharge and file a dispute with credit reporting agencies if this information is not correct. 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
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Utah Bankruptcy Lawyer appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/utah-bankruptcy-lawyer/ |
ABOUT MEEarned praised for my work marketing puppets for farmers. Set new standards for investing in puppets in the UK. Had moderate success implementing sock monkeys for fun and profit. Was quite successful at getting my feet wet with action figures for fun and profit. ArchivesNo Archives Categories |