Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to determine if the retirement income goal will be achieved. Some retirement plans change depending on whether you’re in, say, the United States, or Canada. Retirement planning is ideally a life-long process. You can start at any time, but it works best if you factor it into your financial planning from the beginning. That’s the best way to ensure a safe, secure and fun retirement. The fun part is why it makes sense to pay attention to the serious and perhaps boring part: planning how you’ll get there. In the simplest sense, retirement planning is the planning one does to be prepared for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include lifestyle choices such as how to spend time in retirement, where to live, when to completely quit working, etc. A holistic approach to retirement planning considers all these areas. The emphasis one puts on retirement planning changes throughout different life stages. Early in a person’s working life, retirement planning is about setting aside enough money for retirement. During the middle of your career, it might also include setting specific income or asset targets and taking the steps to achieve them. Once you reach retirement age, you go from accumulating assets to what planners call the distribution phase. You’re no longer paying in; instead, your decades of saving are paying out. Remember that retirement planning starts long before you retire—the sooner, the better. Your “magic number,” the amount you need to retire comfortably, is highly personalized, but there are numerous rules of thumb that can give you an idea of how much to save. People used to say that you need around $1 million to retire comfortably. Other professionals use the 80% rule (i.e., you need enough to live on 80% of your income at retirement). If you made $100,000 per year, you would need savings that could produce $80,000 per year for roughly 20 years, or $1.6 million. Others say most retirees aren’t saving anywhere near enough to meet those benchmarks and should adjust their lifestyle to live on what they have. Whatever method you, and possibly a financial planner, use to calculate your retirement savings needs, start as early as you can. Stages of Retirement Planning and Estate Plans• Young Adulthood (ages 21–35): Those embarking on adult life may not have a lot of money free to invest, but they do have time to let investments mature, which is a critical and valuable piece of retirement savings. This is because of the principle of compound interest. Compound interest allows interest to earn interest, and the more time you have, the more interest you will earn. Even if you can only put aside $50 a month, it will be worth three times more if you invest it at age 25 than if you wait to start investing at age 45, thanks to the joys of compounding. You might be able to invest more money in the future, but you’ll never be able to make up for the lost time. • Early Midlife (36–50): Early midlife tends to bring a number of financial strains, including mortgages, student loans, insurance premiums, and credit card debt. However, it’s critical to continue saving at this stage of retirement planning. The combination of earning more money and the time you still have to invest and earn interest makes these years some of the best for aggressive savings. People at this stage of retirement planning should continue to take advantage of any 401(k) matching programs their employers offer. They should also try to max out contributions to a 401(k) and/or Roth IRA (you can have both at the same time). For those ineligible for a Roth IRA, consider a traditional IRA. As with your 401(k), this is funded with pre-tax dollars, and the assets within it grow tax-deferred. Finally, don’t neglect life insurance and disability insurance. You want to ensure your family could survive financially without pulling from retirement savings should something happen to you. • Later Midlife (50–65): As you age, your investment accounts should become more conservative. While time is running out to save for people at this stage of retirement planning, there are a few advantages. Higher wages and potentially having some of the aforementioned expenses (mortgages, student loans, credit card debt, etc.) paid off by this time can leave you with more disposable income to invest. And it’s never too late to set up and contribute to a 401(k) or an IRA. One benefit of this retirement planning stage is catch-up contributions. From age 50 on, you can contribute an additional $1,000 a year to your traditional or Roth IRA, and an additional $6,000 a year to your 401(k). A pension plan (also referred to as a defined benefit plan) is a retirement account that is sponsored and funded by your employer. It’s based on a formula that includes factors such as your salary, age, and the number of years you have worked at your company. For example, your pension benefit might be equal to one percent of your average salary for the last five years of employment, and then times your total years of service. Over the years, your employer makes contributions on your behalf and promises to make you regular, predetermined payouts every month when you retire. A 401k plan is a retirement account that’s made available to employees who wish to save for their retirement (provided their employer offers a plan). In this case, it’s the employer that holds back a part of your salary (tax-deferred) and places it into a fund that you’ll receive when you retire. Some employers are even willing to match the contributions made by their employees with their own money. Since 401(k) plans are meant to encourage you to save for retirement, there are heavy tax penalties imposed for early withdrawals (before age 59½). Estate Planning For Pension Plan And A 401(K) Plan• A pension plan is funded by the employer, while a 401(k) is funded by the employee. (Some employers will match a portion of your 401(k) contributions.) • A 401(k) allows you control over your fund contributions, a pension plan does not. • Pension plans guarantee a monthly check in retirement a 401(k) does not offer guarantees. • Pension plans have been in existence for a long time, while 401(k)s are gaining in popularity. In fact, the 401(k) will most likely be replacing pension plans all together in the near future. However, there are still employers who offer both a pension plan and a 401(k) plan – if you’re lucky enough to be in that fortunate situation. Factors to Consider While Planning for Your RetirementRetirement planning is essential and should be considered by almost everyone at an early stage of their professional life. That’s because post retirement is a journey in an individual’s life where he/she wants to get away from all the struggles of life and spend his/her sunset years in calmness and peace without bearing any financial burdens. But to enjoy a peaceful retirement life later in life, you might have to consider starting retirement planning sooner. That is because the early you start, the better it is because then, you stand a chance to save more. Planning your retirement at an early stage in life might buy you more time and also help you build a decent retirement corpus. Here are a few factors to consider before retirement planning• Keep a retirement budget: You know your expenses. You know how much money you need right now to survive on a monthly basis. The smart way to determine your retirement budget is to gather all your expense receipts and identify your current spending. Telephone bills, electricity bills, credit card, bills, restaurant bills, and grocery receipts; gather as much expense sources as you can so that you get an idea of your monthly expenses. Getting to know about your expenses is a good way to start with retirement planning. • Identify your risk appetite: What type of investor are you? Are you an aggressive investor who doesn’t mind investing a large amount in equities with the hope of earning higher profit margins? Or are you a conservative type who doesn’t mind settling with a low but steady income? An individual’s risk appetite plays an important role in not just retirement planning but any type of investment planning. Make sure you understand your risk appetite before investing your hard earned money in any retirement scheme. • Figure out how many years you have in hand before you retire: The difference between your current age and your approximate age of retirement defines the number of years you have in hand to build a retirement corpus. Investing in the direct equities offer high risk to return ratio. Having said that, investments made in the equities are exposed to market volatility and only if you have some appetite for risk, consider investing in equities. If you wish to stay away from direct equities, you can consider investing in mutual funds as mutual funds generally are capable of diversifying an investor’s portfolio. No matter where you invest, make sure you give yourself enough years to potentially grow your corpus. • Income sources post retirement: Well, your monthly salary won’t be credited in your account any more, there can be other ways in which you might continue sourcing income. For example, you can receive a pension from your employer, you could own an extra home which you could give on rent, or you could be hired as a guest faculty in an educational institution and receive fees for sharing your expertise with the students. Are these sources of income adding up to help you build enough money so that you are ready for unexpected expenses? Retirement life can bring in unforeseeable expenses in your life, and you need to make sure that you are prepared for it. • It’s never too late to start retirement planning: It can be really tough to find out that you are too late for the party. But with retirement planning, that’s not the case, and individuals need to understand that they can start retirement planning whenever they want. But if you start saving just years before retirement, make sure that you save a lot of money considering you will be having very few years in hand. • Stay off debt: Well taking care of debts must feel like a cakewalk right now but trust us, you do not want to owe anyone money later in life, especially when you are about to retire. It is advisable to not have any pending loans or unpaid credits in the kitty as you near retirement. Pay off all your debts if you do not wish to lead a debt ridden retirement life. • Invest within your limits: Although saving maximum to enjoy retirement is indeed a must, that doesn’t mean you invest all the money that you currently possess. Remember that no type of investment is considered to be safe. So it is advisable to invest within your limits and do not get lured by lucrative schemes offering exceptionally good interest rates. Invest within your boundaries and regularly invest, because this way you stand a chance of benefiting from the power of compounding. Estate Planning Essential Documents for RetirementWhen planning for retirement, most people focus on saving, and rightly so. Having enough money to fund your retirement dreams is a key element to any plan. Often overlooked, however, is the importance of obtaining and organizing important documents. • Pension Paperwork: Defined benefit pensions have become less common over the years, but there are still many people covered by them. If you have a pension at work, the details of the plan will be spelled out in the plan’s Summary Plan Description. In addition, you should receive an Individual Benefit Statement that details the specific benefits that you have earned and are eligible for. Make sure to review those documents as you approach retirement so that both you and your spouse have a good understanding of how much income you can expect from the plan and what will happen to that income if the primary pension holder dies. Make sure to contact your employee benefit’s department with questions or concerns. Also, the Department of Health and Human Services offers help and advice to pension holders through its Pension Counseling and Information Program. • Beneficiary Designation Forms: Many accounts, such as Individual Retirement Accounts (IRAs), 401(k)s, annuities, and insurance policies allow you to name a beneficiary who will receive those assets when you die. Many people don’t realize that those designations take precedence over their will, even if the will is more accurate and up to date. Because of this, it is important to review the beneficiary designations on all your accounts (as well as those of your aging parents if you are helping them with their finances) prior to retiring to make sure that they accurately reflect your wishes. Meet with your financial adviser and estate planning attorney to ensure that your designations not only pass property to the correct people, but also minimize expense and taxes. • Documents Needed When Applying for Social Security: The Social Security Administration will need you to provide certain documents when filing for retirement or survivor benefits. Documents they may request include your Social Security card, a certified copy of your birth certificate, proof of citizenship if you were not born in Utah, military discharge papers, a copy of your marriage license or divorce papers, and a copy of your W-2 form (or self-employment tax return) for last year. Having these documents readily available will help speed the process along. • Investment Paperwork: Most people’s assets are divided into many different types of accounts. Some may be tax-deferred, others may not. Some might have restrictions or requirements on withdrawals. Some, like annuities, might give you different options for turning the account into a guaranteed income stream. When transitioning into retirement, it is important to have current copies of your account statements as well as options or restrictions associated with each account so you can craft a distribution strategy that meets your needs while minimizing expense, hassle and taxes. • Health Care Paperwork: Your health benefits during retirement will likely come from multiple sources. Those could include a former employer, Medicare, Medicaid, a Medicare supplement policy, or a long-term care policy. Be sure to retain benefit summaries, contact information, and policies associated with each. If you have not filed for Social Security benefits by age 65, you will need to apply for Medicare. You can do this up to three months prior to your 65th birthday. When applying, you will likely need to provide them with the same documents mentioned earlier for Social Security applicants. • Home Inventory: Many house fires or burglaries occur when the homeowner is away. When you retire, you will likely spend more time traveling or at a second home than you did during your working years. Because of this, it is important to inventory the contents of your home so that you can more easily make insurance claims and rebuild your life if the unexpected happens. • Insurance Policies: Many retirees have life insurance policies in order to replace income in the event of a death, as a vehicle to build cash value, or for estate planning purposes. Make sure to have current copies of your policies as well as contact information for the insurance company so you can easily access cash value during life or so that your heirs can easily claim benefits if something happens to you. • Will/Trust: Most people need a will, regardless of the size of their estate, to control the passing of property at death. Another tool to accomplish this while at the same time avoiding probate is a Revocable Living Trust. As you enter retirement, you should meet with your attorney to put a plan in place that passes your property to the correct people, designates the correct people to take charge, and minimizes expense, hassle and taxes. • Durable Power of Attorney for Finance and Health Care: A durable power of attorney for finance is a simple and inexpensive legal document that authorizes a person you have chosen to step in and manage your day-to-day financial decisions if you become incapacitated. Everyone needs this document to provide for the ongoing management of their financial affairs if they cannot make decisions for themselves. Similar to the power of attorney for finance, the health care power of attorney is a legal document that authorizes a person you have chosen to step in and make health care decisions for you if you become incapacitated and can no longer speak for yourself. You can also include a health care directive which provides written instructions to your agent that communicates your wishes regarding the withholding or withdrawal of certain life support equipment or medical procedures. If you plan on moving to a different state when you retire, meet with your attorney to make sure that your will, trust, and powers of attorney will be valid in your new state of residence and make any necessary revisions. • Tax Returns: In many ways life becomes easier after you retire. Unfortunately, this is not the case with your taxes. In fact, because your employer is no longer automatically withholding from your paycheck, tracking and paying your taxes may become more complicated. To make matters worse, different states tax income and spending differently. 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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Qualified Personal Residence Trust QPRT Homeowner Liability For Trespasser Injuries Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/estate-planning-and-retirement-benefits/
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Bankruptcy is a federal court process designed to eliminate debts or repay them under the protection of the bankruptcy court. For individuals, most people file either Chapter 7 or Chapter 13, because a court order can call an automatic stay, prohibiting most creditors from hounding you in order to collect what you owe. However, you should consider the costs, both financially and personally, before taking action. If you declare bankruptcy, renting an apartment or buying a house or a car will be extremely difficult because of your credit. In addition, future job opportunities could be compromised, perhaps leading to more financial issues. Many debtors assume that Chapter 7 bankruptcy is better than Chapter 13 bankruptcy because, Chapter 13 bankruptcy requires debtors to repay some debt, whereas Chapter 7 bankruptcy wipes out qualifying debt without a repayment plan. But it isn’t that simple. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three to five years Chapter 13 repayment plan. But not everyone qualifies to file for Chapter 7 bankruptcy and in some cases; Chapter 7 doesn’t provide the help the filer needs. Each bankruptcy chapter has unique tools that help solve distinct problems. For instance, a debtor who’d like to save a home from foreclosure will likely be better off filing for Chapter 13 bankruptcy because Chapter 7 bankruptcy doesn’t have a mechanism that will allow you to keep property when you’ve fallen behind on your payment. However, sometimes Chapter 13 bankruptcy is the only option because a debtor isn’t eligible for Chapter 7 bankruptcy. Some debtors cannot file for Chapter 7 bankruptcy leaving Chapter 13 bankruptcy as the only option. You cannot file for Chapter 7 bankruptcy if both of the following are true: • Your current monthly income over the six months before your filing date is more than the median income for a household of your size in your state. • Your disposable income, after subtracting certain expenses and monthly payments for debts you would have to repay in Chapter 13 bankruptcy, exceeds certain limits set by law. These calculations are referred to as the means test. They determine whether you have the means to repay a certain amount of your debt through a Chapter 13 repayment plan. If you do, you flunk the test and are ineligible for Chapter 7 bankruptcy. How the Automatic Stay WorksThe automatic stay is an order that’s put in place as soon as you file for bankruptcy. All collection efforts to collect money you owe other than child support and alimony, including calls, letters, and other techniques, must come to an immediate halt. It stops almost anyone who is trying to collect from you. Advantages of Chapter 7 BankruptcyChapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works: • It’s relatively quick: A typical Chapter 7 bankruptcy case takes three to six months to complete. Chapter 7 works very well for many people, especially those who:=• own little property What Is Disposable Income For Chapter 7 Bankruptcy?Disposable income is the amount that remains after subtracting allowed bankruptcy expenses from your monthly gross income. Your disposable income will determine whether you qualify to discharge (wipe out) debt in Chapter 7 or Chapter 13 bankruptcy. When you claim your deductions, you’ll be able to use the actual cost of some expenses. For others, such as the allowance for food, clothing, and housing, you’ll use the national and local standards. Here’s a list of some of the deductions you’ll be allowed to take: Here are a few other things filers find challenging about Chapter 13 bankruptcy• You must complete the entire three- to five-year repayment plan before any qualifying debt balances get wiped out (unless the court lets you off the hook early for hardship reasons). Despite these potential problems, Chapter 13 bankruptcy is a good option for people who have a regular income to pay into a repayment plan, and who would otherwise lose their house to foreclosure or who need time to pay back tax or support arrearages. The Chapter 7 Bankruptcy ProcessYou’ll fill out several forms listing your income, assets and debt. You have to list everything, or it might not be erased and may even be considered an act of fraud. You’ll then pay a fee to file a petition for bankruptcy court and a date will be set. The petition automatically prevents creditors from garnishing your wages or suing you. Your creditors will be informed and you’ll receive a court-appointed trustee to oversee the process. About a month after you file, you’ll attend a hearing in which creditors can view your debt and the trustee will arrange to sell off your nonexempt items. Depending on the state you live in, you could lose your second home, second car, stock or bond certificates, certificates of deposit, heirlooms and any valuable collections such as coins or stamps. After that, you will not have to pay dischargeable debt, which includes late rent and utility bills, credit cards, medical bills and documented loans from friends and family. By law, creditors cannot try to collect from the original debt. However, some non-dischargeable debts may still exist, and if creditors deem them fraudulent, you can still be approached by collection agencies. The petition creates a separate, taxable bankruptcy estate consisting of all assets that belonged to you before you filed. Your trustee is responsible for preparing and filing taxes attached to the estate, but you’re responsible for taxes not connected, such as income tax Remember, Chapter 7 stays on your credit for 10 years. The Chapter 13 Bankruptcy ProcessYou’re only required to make one monthly payment to your trustee, who will distribute the funds to the various creditors. They are paid based on priority (tax authorities, child support/alimony and administration costs). Lenders are then paid, followed by credit card companies, medical providers, utilities and more. Just like Chapter 7, you’ll fill out the same papers, pay a fee and receive a court-appointed trustee. You have to submit a plan for repayment, which the court can either accept or reject. After you have filled out a form listing your assets and income and set up a confirmation hearing, your trustee will begin making payments to your creditors based on the court-approved repayment schedule. You’ll pay back your debts from your own income, and if some survive after your bankruptcy is closed, you have to keep paying back those debts. The petition does not create a separate taxable estate, so you’ll continue to pay taxes just like you did before you filed. Chapter 7 Bankruptcy• Certain assets can be liquidated to pay off outstanding debts. Chapter 13 Bankruptcy• You’ll receive a court-approved debt repayment plan. The amount you must repay depends on your income and the size of debt. Requirements when Filing Chapter 7 or Chapter 13If you’re considering either Chapter 7 or Chapter 13 bankruptcy, there are certain income requirements that must be met. Anyone contemplating Chapter 7 bankruptcy must go through what’s called a means test. This will assess whether you meet the necessary conditions to qualify. The first part of the Means Test is to figure out if your income is below the median income level in the state where you reside. If it is, then you pass and are eligible for Chapter 7 bankruptcy. However, if your income is above the median level, a deeper look into your disposable income is required. If your disposable income equals more than a predetermined amount, the courts will assume you have enough money to at least pay part of your debt and you won’t pass the means test. Anyone who fails the means test will be required to file for Chapter 13 bankruptcy protection. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Bankruptcy Chapter 7 first appeared on Michael Anderson.
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Homeowner Liability For Trespasser Injuries Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/bankruptcy-chapter-7/ It’s late at night, and a robber is staking out your property for a heist. You’re in bed early and the car is in the garage, perhaps giving the impression that no one’s home. But as the would-be robber creeps toward the back door, stepping onto the tarp covering a deep hole you were digging for your new hot tub, he suddenly falls and breaks his leg. You didn’t mark the area or provide lighting, but you also didn’t expect someone to be creeping around your yard late at night. Question is, are you liable for his injuries? In this particular case, probably not. But sometimes homeowners are in fact liable for trespasser injuries. What is a Trespasser and When are You Liable for Their Injuries on Your Property?A trespasser is someone who is not authorized to be on the property at issue. Landowners are not obligated to protect trespassers who enter their property without permission, but they cannot willfully injure them. Also, if a landowner knows — or should know — that there are frequent trespassers on his/her property, he or she will be liable for any injuries caused by an unsafe condition on the property if: 1. The condition is one the owner created or maintained; 2. The condition was likely to cause death or serious bodily harm; 3. The condition was such that the owner had reason to believe trespassers would not discover it (before becoming injured by it); and 4. The owner failed to exercise reasonable care to warn trespassers of the condition and the risk presented. Trespassing Children and Liability for InjuriesA different rule applies where trespassing children are involved. In the case of children who wander onto property without authorization, property owners do have a duty to ensure that their property is safe. The logic behind this exception is that children are sometimes naïve to dangers on property, and could in fact be lured to dangerous conditions such as a swimming pool, an abandoned well, or heavy machinery. These potential hazards are referred to as “attractive nuisances,” since a reasonable person should know that such conditions were likely to attract children. Thus, a property owner has a duty to inspect his/her property to see if there are any potentially dangerous conditions that might attract children and, if there are, act immediately to correct the unsafe condition(s). A property owner may be liable for an injury to a trespassing child if he/she knew, or should have known: 1. Young children were likely to trespass in the area of a dangerous condition on the property that involved an unreasonable risk of bodily harm to children; 2. Young children would not be aware of the risk; and 3. The utility of the condition is small compared to the risk it represents. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Homeowner Liability For Trespasser Injuries first appeared on Michael Anderson.
4.9 stars – based on 67 reviews
What Happens To A Mortgage After Divorce? February Often Brings Divorce Filings Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/homeowner-liability-for-trespasser-injuries/ A technology lawyer is an attorney who works in the areas of law relating to protecting a person or company’s ideas, marketing schema, compositions, and right to use all three. Ordinarily these ideas, marketing schema and compositions are being used or will be used in a business for profit. Note that, as in many areas of law, there are two sides to the protections referred to above. The basis of technology law is that someone may create something, and that act of creation may give that person the right, under the law and after suitable procedural steps, to stop others from later using that creation for their own purposes without the creator’s permission. Merely because a creator has the right to prohibit others from using a creation, though, does not in and of itself give the creator the right to use that creation. There may have been other, earlier creators who have prior rights to prohibit its use. Sorting out who has the prior rights, and whether those prior rights actually do work to prohibit a later person from making use of his or her creation, is the job of the technology lawyer. There is no requirement or legal obligation to seek protection for one’s creations. What can be required, though, is that later users refrain from using a creation which too strongly resembles that to which an earlier creator has rights. This right to exclude others is most valuable, as it clears competitors from the field and makes the creator’s product, to a certain extent, unique. Of course there are many gray areas about whether a first creator has rights, the extent of those rights, and whether those rights actually extend to give that first creator the right to block the use of a later creation. These are the issues on which we focus when we are trying to bring about a successful outcome for a client. These gray areas then lead to the major technology areas with which we help our clients. A business client should be most concerned about whether it can sell its product, whether it can differentiate its product from competitors, and even more important, whether it can reduce the competition within the market for that product. Technology lawyers are split between both government employment and private-sector work. For government employers, technology law means creating and enforcing technology laws. Laws regarding privacy and the use of information have a large impact on the daily operations of the United States government. Government entities rely on lawyers to help them draft, interpret and enforce technology laws. In the private sector, technology law concerns itself more with how businesses use technology in their work. Private-sector technology lawyers are business lawyers and commercial lawyers. They help their clients understand technology issues that arise in their business. Often, these issues arise as part of other legal issues. Attorneys in the field usually provide comprehensive legal services that involve technology law along with business law, commercial law and intellectual property. In addition, in private practice, a criminal lawyer may practice technology law to the extent that they may represent a client charged with a crime involving technology like the use of a computer. In that case, the attorney must be prepared to identify issues regarding constitutional law that may arise. Technology lawyers handle complex matters. Their work involves constitutional law, business law and commerce. Lawyers who work on technology issues have the opportunity to work for large companies and growing companies. In their work, they solve legal problems and contribute to the growth of enterprise. At the same time, technology lawyers work to ensure that society uses technology responsibly. They work to help their clients understand how to use technology to their best advantage while establishing limits for privacy and free speech. Technology is an industry of change. Technology lawyers have the opportunity to be a part of growth and change. Technology lawyers live and work in all 50 states. With skilled legal advocacy in technology law, attorneys have the opportunity to be a part of economic growth as well as be a part of shaping how society uses and interacts with technology. Technology law is the intersection of business law, commerce and government. Lawyers in the field create laws, implement the laws and challenge them. They may work for the government in creating laws regarding technology use and surveillance by public entities, or they may work for private enterprise helping them use and implement technology lawfully and successfully. As technology creates new possibilities, technology law is also full of possibilities. Technology law is the body of law that governs the use of technology. It is an area of law that oversees both public and private use of technology. The practice of technology law can mean a lot of different things depending on whether the attorney works for the government or works in private industry. Technology law covers all of the ways that modern devices and methods of communication impact society. Technology law is any kind of law that has to do with the application of scientific knowledge to practical use. It is an area of law that involves what the government can do with the information gathered using technology. It also involves the rights and obligations that private corporations and individuals have when they use technology. Technology law involves private individuals and corporations as well as the rights and obligations of government agencies. A large part of technology law comes from United States federal law. There are laws that come from state law and even from international law. There isn’t one specific area of law that encompasses all forms of technology law. It is an area of law that rapidly grows and changes. Technology law may be criminal or civil in nature. Enforcement of rights and requirements is a challenge both for law enforcement officials and for private entities. Technology law raises the question of who can gather and use information about others. Both government agencies and private citizens can use technology to gather personal information. They can also use technology to engage in free speech and communicate with others. The question that technology lawyers have to answer is what the limits are to what people can do with the information of others. Government authority and citizen privacy are two complex issues that are of consequence to everyone. In their work, technology lawyers determine the limits of technology and civil rights. • What licenses do I need to use software? • How do I license software to someone else? • If I create and sell technology, am I liable if a personal injury accident occurs? • How can I sell a technological invention? • What permits or government approval do I need in order to conduct my business? Are there permits or government approvals that I need before I can conduct business? • Does this business plan protect privacy? • Are there things that I need to be doing to protect the privacy of employee information? • What steps do I need to take to protect customer information? • What is my legal liability if customer information gets compromised? • Can I develop an effective contract for a joint project that involves technology? • How can I protect my intellectual property including patents, copyrights and trademarks? Technology law raises all of these questions. Business and private individuals need to know what laws apply to how they use technology. Laws impact both startup companies as well as long-established businesses. Attorneys must be prepared to help their clients navigate changes in laws that may occur quickly. Technology lawyers help their clients understand the laws and how they can go about complying with them. Jurisdictional Issues And Technology LawBecause technology use transcends boundaries between states and countries, jurisdictional issues are often present in the application of technology law. When issues arise, clients need to know where to bring their legal claim. The answer is often complex. Jurisdictional issues can make it difficult to investigate and enforce technology rights. Attorneys help their clients navigate these issues. In their work, they may develop new laws and legal precedents as they stretch the limits of technology rights and the enforcement of those rights throughout the world. How to File a Health Insurance Claim FormA health insurance claim is when you request reimbursement or direct payment for medical services that you have already obtained. The way to obtain benefits or payment is by submitting a claim via a specific form or request. The first way and the most convenient is when your medical services provider can submit the claim directly to the insurance company. They do this through the network, electronically. The other way is by completing the claim form and sending the paperwork to the insurance company yourself. This situation can happen if your health service provider is not in the network for your health plan or can’t file it on your behalf. Then you will have to file the claim to request payment for the medical services you obtained You used to have to submit health insurance claims through the mail, but with advances in technology, many companies, and medical benefit plans now offer a few different options, depending on the health insurance company. When you go to the doctor or other medical provider and are told that you have to submit your insurance claim form, it means that the doctor or facility does not ask the health insurance company to pay for your bill, and you must do it yourself. If you have to file a claim, here are the steps you will need to take along with some helpful tips on submitting your insurance claim form. To complete the steps, you will need to understand your medical bill. You will also need to have some basic information to fill the form out. List of Things on a Health Insurance Claim Form:The claim form should be fairly self-explanatory to fill out. It will ask things like: • Your insurance policy number, group plan number or member number • Who received the services (for example if it was the primary insured or a dependent like a child, spouse or domestic partner) • If there is coinsurance or dual coverage Steps to Filing Your Health Insurance Claim Form1. Obtain Itemized Receipts: You will need to ask your doctor for an itemized bill. An itemized bill lists every service that your doctor provided and gives the cost of each of the services. Make sure any medications or drugs provided during any treatment are listed with itemized costs. Your health insurance company will need you to attach the original itemized bills to the claim form. 2. Get Your Claim Form: You will need to contact your insurance company to obtain a health insurance claim form or download a copy from their website. Your claim form will also give you additional instructions about what other information they may need from your doctor or healthcare facility. It is best to read through it before beginning. 3. Make Copies: Once you have your claim form filled out and your itemized bills from your doctor, don’t forget to make copies of everything. It will eliminate any errors that may be made in the claim process and make it easier for you to re-file your health insurance claim if it gets lost. You may also want to check the billing codes for medical errors and contact your health provider if you need clarification. This step will avoid having your health insurance denied for incorrect information. 4. Review then Send: To make sure everything is completely accurate, call your health insurance company and tell them you are about to send in your health insurance claim form. Review with them all the paperwork you have and ask them if there is anything else you need. Also, ask your insurance company how long should you expect to wait for your claim to be paid and mark that date on your calendar. Once you have everything in order, send out the claim form to your insurance company. The address to send the claim form should be on the claim form itself. Keep an eye out on your calendar for the claim date that you marked and contact your insurance company if you don’t receive your claim within the time frame given to you. Submit Your Health Insurance Claim Form OnlineBefore you start filling in the paperwork and heading to the post office, always check your health insurance company’s website. Many insurance companies now offer the possibility to log onto your health and medical benefits plan online. You can ask your employer if your health plan offers this option, or if your healthcare plan is not through your employer, contact your health plan insurer directly to find out if they have access to their services online. Usually, if you go to your insurance company website, there will be a place where you can log on. If you do not have the information, call them and have them help you set it up. You may also be able to fill information online and submit at least part of the claim via your health insurance company website. If they do not offer full online submission, you may be able to start the claim and just mail in the supplementary documents with the associated reference number. Getting your payment processed as fast as possible is worth going through setting up an account to manage your services online. There is also a good chance that when you fill in your form online, you will also immediately see what portion of the claim is covered, what your coinsurance clause is and what deductible applies. Setting up an account to access your health insurance benefits and claims online will help you be better prepared to understand the related health insurance out-of-pocket expenses, or what kind of refund or payment your benefits plan will pay. 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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How To Better Manage Credit Card Debt What Happens To A Mortgage After Divorce? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/health-technology-lawyer/ In Utah, Real Estate can be a complicated business; there are so many details and wrinkles you have to smooth out before you can actually move into a new home. From hiring an agent, to finding that perfect dream home, not to mention the process of financing and making an offer to purchase, finally getting to the contract stage can be time-consuming and complex. Any number of things can go wrong in the process that will make you realize you should speak with a Real Estate Lawyer in Utah. When you do make a formal offer to buy the home you want to buy, you will end up reading and filling out a lot of paperwork specifying the terms and conditions of your offer. Aside from obvious items like the address and purchase price of the property, here are some more nuanced items you should be sure to include in your real estate purchase contract. In legalese, these are called contingencies that are written in to your real estate contract. A residential real estate purchase agreement is a binding contract between a seller and buyer for the ownership transfer of real property. The agreement outlines the terms, such as the sales price and any contingencies leading up to the closing date. Duties of a Real Estate AttorneyHowever, real estate transactions often represent the most expensive transaction that a person makes. Spending the extra funds to ensure that the job is done right is often a prudent choice. Real estate lawyers help in the following ways when you are purchasing or selling a home: Rea Estate Contract Drafting and ReviewReal estate lawyers memorialize the terms of the agreement into a formal contract. They can ensure that certain provisions are contained in the contract that protect their client’s interests as well as to make sure that state laws are complied with. They can also address certain issues that may arise, such as purchasing a lease-back by the seller, handling existing tenants, using the property for certain uses in the future and include contingencies to protect the client. Many documents will manifest during the course of a purchase and sale of a home. Lawyers will carefully review all of these documents and not simply take the lender’s word for what the document is stating. If there is any troubling wording or legal issue that arises, he or she can address these concerns. Many home sales are based on a number of important contingencies. A seller may want to secure a new home and make the sale contingent on this ability, or the buyer may want to make the sale of his or her own home contingent on the transaction. There may be other contingencies as well that can be included in the purchase agreement. Drafting AmendmentsThere may be changes made in the original agreement based on new information. It may have taken longer than expected for certain stages of the process to be completed. There may be changes based on the home inspection and agreements reached regarding any defects. A natural disaster may strike, causing damage to the property. Real estate lawyers can draft such amendments to keep the purchase agreement intact but to account for this new information. Reviewing LiensA real estate lawyer often conducts a title search on a property to determine if there are any encumbrances against it or anything that is clouding the title. This search helps clarify whether the seller has the legal right to sell the property and whether there is anything that may block the sale. For example, the seller may be required to pay off a lien or judgment before selling the home. A real estate lawyer can also secure proof that the judgment or lien has been satisfied. Transferring PropertyA real estate lawyer helps to draft deeds to effectuate the transfer of real estate. Additionally, he or she can review any contracts related to the real estate transaction that have to do with a corporation, partnership or trust so that no terms of the charter agreement are breached. Without the proper legal protocol, the opposing party may be sued if the agreement is violated. When one or more parties are corporations, trusts, or partnerships, the contract preparation and the ensuing negotiations are complicated. An attorney understands these different types of business arrangements and their legal boundaries within your state’s law. The attorney will ensure that the contract is consistent with the law and the partnerships, trusts, or corporation’s charter agreements. Fulfilling Additional Legal RequirementsThe purchase of certain properties may require additional steps. For example, there may be special requirements if a home is considered historical property. If a property is on wetlands and building permits are not secured, the entire structure may need to be rebuilt. If the property is ultimately going to be used for a commercial use, certain zoning restrictions may apply. Dealing With Real Estate DiscriminationLawyers can certainly help if you face discrimination during the home buying process. Even though most real estate lawyers do not specialize in that area, they will probably know an attorney who does. However, don’t let anyone convince you that you need to have lots of money or a high-priced legal team to respond to discrimination. Laws exist to protect everyone, regardless of income. Real Estate DisclosuresState laws dictate what types of information must be disclosed about a property. Real estate lawyers can help requests these disclosures as well as prepare the disclosures if they are representing the seller. Without a real estate lawyer, the likelihood of being sued regarding a disclosure increases. A real estate lawyer can also be sure to put a home inspection clause in the buyer’s documents so that any unknown defects are realized before the transaction concludes. A good real estate lawyer can also review home inspections and other disclosures to help you spot any potential problems with the home before it becomes an issue down the road. You definitely do not want to be tricked into thinking that the home is safe and secure when there are actually serious problems that the previous owner hid from you. RecordingProperty law is full of cases involving properties that were purchased but no deed was ever recorded, creating legal nightmares for buyers. A real estate lawyer can ensure that the deed is properly filed and recorded. If a deed is not properly recorded, the buyer may not be considered the legal owner. His or her income and estate taxes may be levied. Legal AssistanceTo best protect their interests, many home buyers and sellers choose to retain the services of a competent real estate lawyer. He or she focuses on protecting the client’s interests and ensuring that all applicable rules are adhered to in order to avoid potential problems that could arise in the future. Review Sales TransactionsSome real estate attorneys are involved only in reviewing and providing advice on real estate transactions. Clients will negotiate their deals, sign a contract and then ask the lawyer to perform the due diligence on the deal. This means the lawyer will examine legal title issues, environmental issues and reports and any of the contracts or other documents involved in the transaction. Real estate lawyers have training that allows them to spot problems that their clients do not recognize. In this role, the real estate lawyer plays guardian for the clients to make sure the clients don’t fall into any unseen legal traps. Handle Foreclosure ProceedingsMany real estate attorneys specialize in mortgage and trust deed foreclosure, particularly during difficult economic times. Some lawyers represent lenders while others represent borrowers. The lawyers representing lenders help guide lenders correctly through the foreclosure process, which may include filing a lawsuit in court. The lawyers representing borrowers, on the other hand, try to make life difficult for the foreclosing lender by challenging any mistakes made in the foreclosure process, and by negotiating with the lender for a settlement agreement to stop the foreclosure process. Addressing Liens and Other Title IssuesAn attorney can help you with the title search process. A title search will help you discover any problems with the title before you purchase a property. For example, if the person selling the property does not have the legal authority to do so, the entire transaction can be voided. A title search will also allow you to determine if there are any encumbrances on the property, including judgments or liens. A seasoned real estate attorney is your best option. He will explain everything you need to know and walk you through your issues, because he has the in-depth knowledge and experience with real estate transactions that many lawyers lack. If any issues come up in a title search, a real estate attorney can help you address them. You may be able to have the liens removed or negotiate a lower price for the property based on potential issues with the title. Types of Real Estate ContractsThere are several types of real estate contracts, and it is important to know that contracts are necessary for real estate deals. A contract is a legally enforceable document between two or more people. The contract consists of an offer, acceptance, consideration, legal capacity, and legality of purpose. Real Estate Purchase Agreement (also called a REPC or Real Estate Purchase Contract)A purchase agreement is the most common type of real estate agreement. This contract specifies the details regarding the sale of property. It will include the address of the property, the price, names of both parties, signatures of both parties, and the closing date. Real Estate Lease AgreementThis is a contract that binds an owner and a renter to the property. Therefore, the proper owner (referred to as a landlord) enters into an agreement with a tenant (the lessee) to reside in the home at a specified monthly rate. Additional items to be included in this agreement include payment of utilities and the security deposit. It’s important to ensure important items are mentioned in the lease agreement to prevent future legal disputes. Real Estate Power of AttorneyWhile a Power of Attorney is generally not used in a real estate contract, such documents could be used in situations if a party is unable to sign the contract, i.e. party is not physically in the country to sign, or has a mental disability. In this case, the party can hire another party to act as the power of attorney to sign on his or her behalf. This type of contract can also be beneficial if you are the property owner of several investment (rental) properties or if you are carrying for an older parent or family member who might not have the ability to sign the contract. Hiring A Real Estate AttorneyFirst of all, they help you protect yourself. When you’re signing contracts, you want to know just what you’re getting yourself into. Unless you have a legal background, you’ll likely need professional assistance from an attorney. Additionally, an attorney can be a great source of advice. They can help with negotiations, getting a better deal, and closing the property with ease. This is often much-needed peace of mind since they can provide more legal insight than your real estate agent. Real Estate Lawyer ConsultationIt’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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Estate Planning Attorney Salt Lake City Utah How To Better Manage Credit Card Debt Lawyers For Divorce In Cottonwood Heights Utah What Happens To A Mortgage After Divorce? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/real-estate-attorney-in-utah/ The reality is about half of all marriages end in divorce, a shattering experience that forces partners to divide assets and debt. Things can get really complicated, especially when mortgage loans are involved. Many couples, especially those with two incomes, often have no choice but to sell their homes, pay off their loans and split the remaining money. Others opt to let one partner keep the property, often through a deed transfer and a reassignment or refinancing of the mortgage. None of this is easy and deciding what to do with a home is both financially and emotionally stressful. But for those ready to cooperate, the choices don’t have to be traumatic or embittering. Couples often squabble over property, but those willing to face the inevitable and negotiate can avoid a costly and embittering legal battle. Removing Your Spouse from Your Mortgage After DivorceIf neither married partner can individually afford to maintain their home and pay the mortgage, selling might be the only option. But if one person has the means to keep the property, the couple might consider retiling the deed and refinancing or reassigning the mortgage. It’s important to remember that divorce isn’t a release from debt. That you are no longer married to someone doesn’t absolve you from your mutual debts. Preparing for divorce financially, especially for those with assets, typically requires an accounting of assets and debts, a decision on how to split them equitably and an execution of legal documents to divide financial and real estate assets. • You need to retitle the property, a step that involves a quitclaim deed that the partner giving up an interest in the real estate uses to transfer the property to the other partner. • You should refinance or assign the mortgage to the partner assuming the ownership. These steps need to be taken in sequence. The first step is drafting a divorce agreement and submitting it for court approval. The agreement is a blueprint for how your split will occur, including what you’ll do with jointly owned real estate and debt associated with it. If one partner keeps the real estate, the other needs to sign a quitclaim deed transferring the title to that person. Once the deed is filed, the divorced couple need to resolve the mortgage. Resolving the mortgage can be done in two ways1. Removing the spouse relinquishing ownership from the mortgage 2. Refinancing the loan and taking a new one in the name of the spouse keeping the property. Refinancing After DivorceThere are two ways to remove a divorced partner from a mortgage: obtaining a release of liability from the lender or refinancing the mortgage. A release from liability is easier, but counts on the lender granting permission. The lender cancels an ex-spouse’s obligation to pay the mortgage after the person’s name is removed from the deed. The mortgage interest rate remains unchanged, as does the amount owed on the loan. A release from liability takes debt off the ex-spouse’s credit report and protects that person from liability if mortgage payments aren’t made on time. Refinancing is a more common tool. It cancels the existing mortgage and requires the spouse keeping the home get a new mortgage. Replacing the two-party mortgage with a new one can allow the person refinancing the loan to take out cash to cover debts. Here’s an example: Francis and Clen divorce and Clen opts to keep the house, appraised at $300,000. The divorce agreement requires Francis receive half the value of the house in cash after the unpaid balance of the mortgage is deducted. The home as an unpaid mortgage balance of $100,000, so Francis is entitled to $100,000 of its equity. In order to keep the home and pay Francis, Clen gets a new $200,000 mortgage. She uses $100,000 to satisfy the original mortgage and uses the remaining $100,000 to pay Francis his share of the sale. Francis and Clen each end up with $100,000 – his portion in cash, hers in home equity. Refinancing after a divorce isn’t required. Many couples decide that neither of them can afford the home and choose to sell it. Their lender might also allow the partner keeping the house to assume the mortgage, relieving the other partner from obligation. Divorcing couples sometimes reach other agreements. They both might continue to own the home jointly and not change the mortgage even though only one of them lives in it. Sometimes the home is quitclaimed to the spouse who will live there but the other partner remains on the mortgage a strategy that puts the departing spouse at risk. Refinancing is often the best solution, since taking a new mortgage can generate enough cash-out to cover the vacating spouse’s equity. But it’s not full proof. The spouse hoping to keep the home will have to qualify for a new mortgage on his or her own. That means reaching the financial benchmarks that the lender sets for a loan. Criteria for refinancing includes: • A credit score of at least 620 for a conventional mortgage and a slightly lower score for an FHA loan. • A maximum loan-to-value ratio of 97% for a conventional loan and 97.75% for an FHA loan. • In most cases, a maximum debt-to-income ratio of 43%. Since what might have been a two-income household becomes a single-income household after the divorce, it’s possible that spouse who wants to stay in the home won’t have enough income to meet the mortgage requirements. In addition to a lower income, the divorce will divide any jointly owned savings and investment accounts. The situation is worse if the couple had debts and split them during the divorce. Decreased income and savings, as well as a higher personal debt load that accompany many divorces might make finding a mortgage with affordable payments difficult or impossible. Mortgage TransferTransferring the existing mortgage to the spouse keeping the house might be the easiest way to settle the housing issue. Usually a lender will want copies of the divorce decree and a properly executed and filed quitclaim deed in order to transfer the mortgage. Taking over a mortgage is called a mortgage assumption. Lenders aren’t required to grant assumptions and it’s important for you and your ex to review the terms of an assumption if a lender agrees to allow it. In some instances, the spouse relinquishing interest in the home might still be liable if the spouse keeping the property defaults on the mortgage or makes late payments. This could damage the non-owning spouse’s credit even though that spouse has no interest in the property. To avoid this, it’s important for the lender gives a release from liability to the spouse quit claiming the property. It’s also important to have the lender remove mortgage liability of the non-owning spouse from that person’s credit report. If the spouse keeping the property misses mortgage payment deadlines and the other spouse still has the property on his or her credit report, it could result in a major drop in that person’s credit score. If a financial hardship as a result of the divorce was the cause of the missed payments, relief could be found in a mortgage modification. Lenders are often reluctant to release a responsible party from the loan and they will want to evidence that the remaining borrower can repay the loan on his or her own. The lender almost certainly will charge transfer fees. A mortgage assumption avoids the cost and uncertainty of refinancing a mortgage, but the terms are very important. Since refinancing and mortgage assumptions are complicated, it’s a good idea to discuss the options with a mortgage broker and a financial planner to decide which works best for you. Selling Your Home After DivorceThe sales process can be slow, so it’s a lot easier when you and your ex-spouse are on good terms. It makes everything a little more straightforward. Often, a spouse will move out of the marital home during divorce proceedings to minimize tension, but this doesn’t mean they surrender any rights to the ownership of the property. While some people choose to sell their house before a divorce settlement, most will sell the home after their divorce settlement is complete. It makes sense then, that some would prefer to move out before the sale. It gives you both time to decide how best to share the revenue you’ll generate from selling your marital home. Keeping the Property and Transferring OwnershipYou may agree to keep the property within the family once the divorce has been settled, perhaps to ensure your children can still grow up in their home, or simply because one of you wants to stay there. If you decide to do this, you’ll need to transfer ownership of the property into one person’s name either yours or your ex-spouse’s. Joint Borrower Sole ProprietorNowadays, there are even some lenders that allow a scenario known as “joint borrower sole proprietor”. This is where the lender allows people on the mortgage for affordability purposes but only one of them is named on the title deeds. This can be a good solution for some people, however it should never be considered lightly as one will be liable for the mortgage but have no ownership rights to the property itself. Buying Out Your Ex-PartnerThere are various ways you can attempt to buy out your ex-partner to take full ownership of the marital home: Reach an Amicable SettlementIf your marital home is mortgage-free and you wish to stay in your house after your partner moves out, you may want to try and reach an agreement whereby you pay them a lump sum based on the share of the property they have. Once the payment is made they can be immediately removed from the title deeds. Remortgage in Your Name OnlySpeak to your lender if you have a joint mortgage and wish to buy out your ex-spouse. The lender needs to be sure that you can afford the monthly repayments on the whole mortgage based on just your income, so they’ll likely perform income and expenditure tests. As soon as the remortgage is completed the person leaving will receive the money for their share and their name will be removed from the title deeds. Seek a Guarantor MortgageIf you can’t meet your current mortgage payments alone, then you could pursue a guarantor mortgage. Certain mortgage lenders will agree to lend you money providing that a guarantor – often a close family member – agrees to make the mortgage repayments if you’re unable to pay. Guarantor mortgages aren’t that easy to come by, so it’s often best to use a broker who can find you the best deal. A joint borrower sole proprietor arrangement might work as a more suitable alternative. How Refinancing Your Mortgage Can HelpIf you want to avoid sharing a mortgage with a spouse once you’re done sharing everything else, you could consider refinancing your mortgage. Refinancing involves qualifying for a new mortgage, which comes with new terms, and using it to pay off your previous home loan. When you refinance, just one spouse’s name can remain on the new loan, meaning he or she alone will be responsible for payments. Keep in mind that the person whose name stays on the loan will need to be eligible for refinancing on their own based on his or her income, credit score, employment history, and other factors. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post What Happens To A Mortgage After Divorce? first appeared on Michael Anderson.
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What To Expect After Bankruptcy? Can A Restraining Order Affect Custody? Estate Planning Attorney Salt Lake City Utah How To Prepare For Your Free Consultation How To Better Manage Credit Card Debt Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-happens-to-a-mortgage-after-divorce/ Effectively managing credit card debt can be daunting. But with proper budgeting (including responsible spending), attention to due dates, having (and adhering to) a strategy, paying more than the minimum due, and maybe considering consolidation or discussions with a credit counselor, you can conquer credit card debt. Know How Much You OweMake a list of your debts, including the creditor, total amount of the debt, monthly payment, interest rate, and due date. You can use your credit report to confirm the debts on your list. Having all the debts in front of you will allow you to see the bigger picture and stay aware of your complete debt picture. Debt reduction software can make this process easier. Once you have a handle on your debt and your income, you can calculate your Debt to Income ratio (DTI). This ratio tells you how much of your income is going toward debt payments. To find yours, divide your debt payments by your income, and multiply by 100. For example, $1,200 of monthly debt divided by $3,000 of monthly income is 0.4 x 100 = 40%. The lower this number is, the better, and tracking it can help you understand your finances more clearly. Don’t just create your list and forget about it. Refer to your debt list periodically, especially as you pay bills. Update your list every few months as the total amount of your debt changes. Pay Your Bills on Time Each MonthLate payments make it harder to pay off your debt since you’ll have to pay a late fee for every payment you miss. If you miss two payments in a row, your interest rate and finance charges will increase. If you use a calendaring system on your computer or smartphone, enter your payments there and set an alert to remind you several days before your payment is due. If you miss a payment, don’t wait until the next due date to send your payment, by then it could be reported to a credit bureau. Instead, send your payment as soon as you remember that it was missed. A budget can help you stay out of debt, and it can help you climb out. It allows you to see how much money you earn and where that money is going. Create a bare-bones budget that allows you to pay for necessities like your rent or mortgage and utilities. Set aside everything else to pay off your debt as quickly as possible. Create a Monthly Bill Payment CalendarUse a bill payment calendar to help you figure out which bills to pay with which paycheck. On your calendar, write each bill’s payment amount next to the due date. Then, fill in the date of each paycheck. If you get paid on the same days every month the 1st and 15th you can use the same calendar from month to month. But, if your paychecks fall on different days of the month, you’ll need to create a calendar every month. Make at Least the Minimum PaymentIf you can’t afford to pay anything more, at least make the minimum payment. Of course, the minimum payment doesn’t help you make real progress in paying off your debt. But, it keeps your account in good standing, which avoids late fees. When you miss payments, it becomes harder to catch up and eventually your accounts could go into default. While you’re working on paying down debt, stop using credit cards. Start carrying cash instead. Stick to the budget you created and only buy what you can pay for with cash. Decide Which Debts to Pay Off FirstPaying off credit card debt first is often the best strategy because credit cards have higher interest rates than other debts.1 Of all your credit cards, the one with the highest interest rate usually gets priority on repayment because it’s costing the most money. Use your debt list to prioritize and rank your debts in the order you want to pay them off. You can also choose to pay off the debt with the lowest balance first. This might cost a little more in the long run, but knocking off small debts first can build confidence. Pay Off Collections and Charge-OffsYou can only pay as much on your debt as you can afford. When you have limited funds for repaying debt, focus on keeping your other accounts in good standing. Don’t sacrifice your positive accounts for those that have already affected your credit. Instead, pay those past due accounts when you can afford to do it. Build an Emergency Fund to Fall Back OnWithout access to savings, you’d have to go into debt to cover an emergency expense. Even a small emergency fund will cover little expenses that come up every once in a while. First, work toward creating a small emergency fund—$1,000 is a good place to start. Once you have that, make it your goal to create a bigger fund, like $2,000. Eventually, you want to build up a reserve of three- to six-months of living expenses. Learn how to use credit cards responsiblyWhen trying to get out of credit card debt, the first thing you want to do is understand proper credit card use. Credit cards are good to use for things like building your credit history, earning reward points, and as a more secure form of payment than cash. Using a credit card responsibly also means paying your bills on time and for the amount due. Not paying your bill on time will harm your credit, since payment history is the biggest factor considered when calculating your credit score. Large amounts of debt will also reflect poorly on your credit score. Don’t use a credit card to live outside your means. Instead, use credit cards to buy what you need that’s within your budget and ability to pay back. Know your budgetA budget is a plan for how you’ll manage your money by tracking the dollars you earn and spend. A budget gives you a clear picture of your financial life. It makes you aware of the extra money you have to spend or the lack of money you have to spend. Knowing your budget is an essential part of your debt management because it shows you how much money you have to pay bills on time and pay down debt. Especially when it comes to paying off debt, you’ll need to know how much free cash flow you have to put additional funds towards debt payments. Pay more than the minimum paymentOver time, paying only the minimum amount will cost you more money. Why? Because as you carry a balance on that credit card, that balance accrues interest daily. If you pay the full balance off by the due date, however, you don’t get charged any interest. For example, if you have just over $6,000 in credit card debt with an interest rate of 14.99% and a minimum payment of about $20, you could end up paying about $4,000 in interest before you pay off that initial balance, as the chart below shows. You’re probably wondering what credit utilization is. A credit utilization rate is a ratio between how much revolving credit you have compared to how much you have available. If you have $6,000 in credit card debt and $20,000 available to use, your utilization rate is 30%. Your credit utilization rate is a big part of what is used to determine your credit score. A lower credit utilization rate means your credit cards aren’t maxed out and that you’re managing your credit well. A higher credit utilization ratio can indicate you aren’t spending your money wisely and have higher amounts of credit card debt. Ideal credit utilization is somewhere below 30%. If it’s above 30%, make lowering your credit utilization ratio a priority in your credit card debt management plan. Lowering it will decrease your debt and could increase your credit score! Improve your spending habitsIf it’s broken, you need to fix it. Poor habits like spending more than you earn aren’t right. Change your spending behavior to be more in line with your budget. Implementing money-saving techniques like using coupons, buying on sale, and general frugal living can help improve your spending and save more money to put towards paying off debt. Taking the time to develop good spending habits is also part of a long term strategy to manage your debt and finances. You don’t want healthy spending to be a temporary solution. Instead, make it a long-term lifestyle change to help you reach your financial goals. Review your credit reportYour credit report is a review of all your past and present credit activity. It lets you know every creditor you owe money to. But more importantly, it lets lenders know the history of your debt payments to determine if they want to loan you money and at what interest rate. Your credit report impacts your ability to borrow money, so you want to make sure what it contains is accurate and positive. Mistakes on credit reports are fairly common. Review your report to make sure your personal information is correct and that there are no debts listed that were not taken out by you. Also, review your report to ensure you know all the money you owe. It could be that you moved and owed money to a service provider that you weren’t aware of. It’s worth taking the time to review your credit report. It could save you money now and heartache later by catching problems early. Negotiate Terms with Your Credit Card CompanyIt’s often possible to negotiate terms, interest rates, and payments on credit card debt. You can also try to negotiate a settlement of the amount you owe. The steps you take and the options available will depend on your situation and the credit card company you’re dealing with. • moving a payment date • reducing the interest rate • asking for a temporary payment reduction. • entering into a forbearance agreement, which requires no payments, for a specified amount of time • paying a lump-sum to settle the debt. Your negotiating strategy will primarily depend on timing. If you’re not struggling with your payments, you might be able to get a better interest rate. If, however, you’re in financial hot water, you might be able to get better payment terms or dates, perhaps a reprieve from payments, or settle the debt for less than you owe. How to Negotiate When Times Are GoodIf you’re not having trouble paying your debts and you have a good credit history, you might want to contact your credit card companies to ask for a lower interest rate. While the answer could initially be no, if you tell them that you’re considering switching to a card with a lower rate, they might be willing to work with you. How to Negotiate When You’re Having Financial ProblemsWhile credit card companies encourage you to call them if you anticipate having problems repaying your debt, some are more amenable to working with you than others, and it’s almost impossible to guess how they will react until after you call. With most companies, you should call if you know your payment will be late by a few days, or if you think a change in the regular payment date such as moving it from the first of the month to the middle of the month will make it easier for you to pay on time. Many companies may also provide you with relief if you are temporarily out of work or if a sudden illness or family emergency arises that you need to tend to. Credit Card Settlement OptionsA few of the many options to explore when you’re seeking assistance with credit card payments include: • reducing the interest rate, or • asking for a temporary payment reduction. If you need more significant concessions from the credit card company, the company will likely cut off your credit, at least until you’re paid up, but often longer. If you’re having severe financial problems that aren’t likely to be resolved in a few months, you can explore these possibilities with the credit card issuer: • working out a long-term repayment plan with reduced or no interest, or • paying a lump-sum settlement. Who Should I Talk to at the Credit Card Company?Who you talk to depends on what you want to negotiate. • Interest rate reduction. Asking for an interest rate reduction might require a manager to get involved. • Negotiating settlements or long-term payment plans. If you’re calling for a more serious problem, the customer service department probably won’t be able to help you, even if it says it can. Be polite and talk with the representative, but if, in the end, the representative says no to your request, ask if you can speak to another department, or ask for a supervisor. You might need to go through more than one level before you reach someone with authority to negotiate. If your credit card company won’t work with you, consider getting help from outside sources. These include: • Bankruptcy attorneys. A Chapter 13 bankruptcy can allow you to keep your property while paying all or part of your debt over three to five years, often even if a creditor doesn’t agree. Many debtors can file for Chapter 7 bankruptcy and lose little or no property, and discharge their credit card debt. Free Initial ConsultationIt’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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Estate Planning Attorney St George Utah 3 Laws Business Owners Need To Know What To Expect After Bankruptcy When You Need A Mediator And A Lawyer Estate Planning Attorney Salt Lake City Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/how-to-better-manage-credit-card-debt/ Estate planning is planning for your estate while you are alive and well, if you become incapacitated, and after your death. It involves the management of your assets while you are still alive and the distribution of those assets after you die. This planning allows for the orderly administration and disbursement of your estate, and includes taking actions that will minimize taxes and distribute assets to the appropriate heirs. However, good estate planning is much more than that. It should also: • Include instructions for your care if you become disabled before you die. • Name a guardian and an inheritance manager for minor children. • Provide for family members with special needs without disrupting government benefits. • Provide for loved ones who might be irresponsible with money or who may need future protection from creditors or divorce. • Include life insurance to provide for your family at your death, disability income insurance to replace your income if you cannot work due to illness or injury, and long-term care insurance to help pay for your care in case of an extended illness or injury. • Provide for the transfer of your business at your retirement, disability, or death. • Minimize taxes, court costs, and unnecessary legal fees. • Be an ongoing process, not a one-time event. Your plan should be reviewed and updated as your family and financial situations (and laws) change over your lifetime. Here is a simple list of the most important estate planning issues to consider. • Make a will: In a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent. • Make health care directives: Writing out your wishes for health care can protect you if you become unable to make medical decisions for yourself. Health care directives include a health care declaration (“living will”) and a power of attorney for health care, which gives someone you choose the power to make decisions if you can’t. (In some states, these documents are combined into one, called an advance health care directive.) • Make a financial power of attorney: With a durable power of attorney for finances, you can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. The person you name to handle your finances is called your agent or attorney-in-fact (but doesn’t have to be an attorney). • Protect your children’s property: You should name an adult to manage any money and property your minor children may inherit from you. This can be the same person as the personal guardian you name in your will. • File beneficiary forms: Naming a beneficiary for bank accounts and retirement plans makes the account automatically “payable on death” to your beneficiary and allows the funds to skip the probate process. Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death. • Understand estate taxes: Most estates more than 99.7% won’t owe federal estate taxes. Also, married couples can transfer up to twice the exempt amount tax-free, and all assets left to a spouse (as long as the spouse is a U.S. citizen) or tax-exempt charities are exempt from the tax. • Cover funeral expenses: Rather than a funeral prepayment plan, which may be unreliable, you can set up a payable-on-death account at your bank and deposit funds into it to pay for your funeral and related expenses. • Protect your business: If you’re the sole owner of a business, you should have a succession plan. If you own a business with others, you should have a buyout agreement. • Store your documents: Your attorney-in-fact and/or your executor (the person you choose in your will to administer your property after you die) may need access to the following documents: I. WillII. TrustsIII. insurance policiesIV. real estate deedsV. certificates for stocks, bonds, annuitiesVI. information on bank accounts, mutual funds, and safe deposit boxesVII. information on retirement plans, 401(k) accounts, or IRAsVIII. information on debts: credit cards, mortgages and loans, utilities, and unpaid taxesIX. Information on funeral prepayment plans, and any final arrangements instructions you have made.Probate is a legal process that deals with the assets and debts left behind after someone dies. By default, probate is supervised by a court, called the probate court. Note that the term “probate” can be used to describe the legal process, the court in which the process takes place, or the distribution of assets. The probate process can include all aspects of estate administration, such as: Probate: Pros and ConsThe cons of probate are what drive people to try to avoid it specifically, that probate is time consuming and expensive. Many states require 30 to 90 day waiting periods as part of probate. If a relative or potential heir decides to contest the will or the court’s asset distribution, the process can take even longer. In addition, the court, attorneys, assessors, and other professionals involved all charge fees for processing an estate. These fees typically come out of the estate itself. There are, however, some benefits to the probate process. First, for certain estates in some jurisdictions, probate may be required. It’s best to check with a local probate attorney to determine whether probate is necessary in your jurisdiction. Second, the formality of probate court often gives some degree of certainty to the deceased’s family. If there was ever a question about whether a will is valid or about the worth of a particular asset, the probate process will find an answer. Ways to Avoid ProbateOne way to avoid it is to set up a trust, which isn’t required to go through probate. Another option to avoid probate is to take advantage of payable upon death options available on certain types of accounts. Owning property jointly with the person you want to leave the property is yet another way to avoid probate. Upon the death of one co-owner, the joint property goes automatically to the surviving joint owner. Besides the general the general ownership of joint property with right of survivorship, there are other common forms of joint property ownerships that are available to married couples. A married couple can have a tenancy in the entirety and in states that have community property laws; any community property automatically goes to the surviving spouse. Finally, a person can avoid probate by gifting items and money before death. It’s important to note that a person is only allowed gift a certain amount of money tax-free. Transferring assets outside of the probate process can not only save the estate a lot of time and expense, but can also help loved ones avoid years of legal hassle. There are general ways to pass on your property and avoid the probate system: Joint Property OwnershipJointly owned property with the “right of survivorship” avoids the probate process for one very simple reason: upon death, the deceased joint owner no longer owns the property and it passes to the living joint owner. There are several ways to do this, and the chosen method will depend on what a particular state recognizes. To create any of these forms of joint ownership with a right of survivorship, states typically require a written document that sets out the joint ownership relationship, the property that is jointly held, and the right of survivorship. Here are the most common forms of joint property with a right of survivorship: • Joint Tenancy with a Right of Survivorship: as the name suggests, you take property as “joint tenants” and upon the death of a joint tenant, the surviving tenant takes the deceased tenant’s portion. • Tenancy by the Entirety: this is a form of ownership only available to married couples (and some same-sex couples in a few states). It works in much the same way as a joint tenancy with a right of survivorship, in that effectively upon the death of one spouse; the living spouse takes the deceased spouse’s portion. • Community Property: in community property states, married couples can hold property as community property with the right of survivorship. It has the same effect upon the death of one spouse as a tenancy by the entirety, where the surviving spouse takes full ownership of the property. Death BeneficiariesMany types of financial assets and instruments allow you to designate a beneficiary upon your death. Upon your death, these assets become the property of whomever you designate as the beneficiary, are no longer a part of your estate, and thus avoid probate entirely. Here are some of the most common financial assets that allow you to do this: • Payable on Death (POD) Accounts: as the name suggests, POD accounts are simply accounts with an instruction that upon your death, the account shall be inherited by a beneficiary that you name. They are extremely simple to setup, with most banks simply requiring that you fill out a form naming the beneficiary. The beneficiary simply shows up to the bank with the proper identification and collects the account upon your death. • Retirement Accounts: an increasingly popular option to avoid probate is the use of retirement accounts, specifically IRA and 401(k) accounts. When you establish these accounts, you will be asked to name a beneficiary of the account upon your death. As a single person, you are free to name whomever you want, but be aware that as a married person, your spouse may inherently have a right to some or all of the money in a retirement account. • Transfer on Death Registrations: many states allow you to transfer securities (stocks, bonds, brokerage accounts) as well as vehicles without going through probate. Much like POD accounts, you will sign a registration statement that declares who you want your securities or vehicles to pass to upon your death. Using Revocable Living TrustsA revocable living trust occurs when you transfer property to someone else (the trustee) to hold it for your benefit, but you reserve the right to revoke the trust. This means that the trustee actually owns the property, but must use it for your benefit under the terms and conditions of the trust. By giving ownership of the property to the trustee, the property is no longer a part of your estate and can avoid the probate process entirely. You can instruct the trustee that, upon your death, he or she should transfer the property to your family and friends. This effectively transfers property without going through probate. Trusts are set up in formal documents, much like a will, so make sure that you are complying with your state’s requirements for a trust when setting one up. Gifts In Estate PlansFinally, one of the most obvious but often overlooked ways to avoid probate is to simply give your property away before your death. This requires a certain amount of planning and forethought, and even the best plans may be thwarted by unseen circumstances. As a result, you should generally only consider using gifts to avoid probate on smaller, less valuable assets. Also be aware that gift taxes apply if the gift is in excess of a certain amount, so this is typically a good option only if the asset is below the gift tax threshold. Hiring a Probate AttorneyIf you’ve been named the executor or personal representative in a will, it can be helpful to consult with a probate attorney to help you through the probate process. In order to be of assistance, the attorney will need some basic information about the deceased, the deceased’s estate plan, and the deceased’s assets and liabilities. Free Initial Consultation with Estate Planning 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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Estate Planning Attorney St George Utah What To Expect After Bankruptcy Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/estate-planning-attorney-salt-lake-city-utah/ What to expect in 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 Case You Will Attend a Meeting of CreditorsThe 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 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. Secured DebtsA 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. 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. 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: How to Recover From BankruptcyA bankruptcy causes a severe drop in your credit scores, and it persists as a negative entry in your credit file for many years. How long and exactly how much of a score drop depends on what your score was before filing, on the status of your existing credit accounts, and on the type of bankruptcy you file. A Chapter 7 bankruptcy, which wipes out all your debts, has the deepest impact on your credit scores and stays on your credit report for 10 years. A Chapter 13 bankruptcy, which restructures your debts so you pay off a portion of them in three to five years, remains on your credit report for up to seven years and is less harmful to your credit scores than Check Your Credit ReportsBegin your recovery plan with a clear understanding of where your credit stands. Do this by checking your credit reports, reviewing them for accuracy, and disputing any entries that need correction. This process will be slightly different depending on which type of bankruptcy you file. Checking Your Credit Reports After Chapter 7If you filed Chapter 7 bankruptcy, wait until your case is discharged you’ll receive a letter from the court informing you when that’s done, usually no more than six months after your court filing. Wait 90 to 120 days after receiving the letter so your credit reports have time to update with the bankruptcy information, and then request your credit reports from all three national credit bureaus (Experian, Equifax and TransUnion). You can get a free Experian credit report every 30 days. You are also entitled to one free report a year from each of the three credit bureaus at AnnualCreditReport.com. • All credit accounts covered under the bankruptcy are labeled “discharged in bankruptcy” (not “charged off”) and list outstanding balances of zero dollars. • If any debts were excluded from the bankruptcy filing, such as a mortgage, make sure they are not listed as discharged, and that payments are being reported. Checking Your Credit Reports After Chapter 13If you filed Chapter 13 bankruptcy, your case won’t be discharged until the end of your three-to-five-year repayment period, so you can just wait 90 to 120 days after your bankruptcy filing to request your credit reports. The status of accounts included in your Chapter 13 repayment plan may or may not be reflected in your credit report: Creditors are not obligated to report payments received during the Chapter 13 repayment period, but some do. • Check to make sure payments to any accounts excluded from the bankruptcy settlement are being captured. • Once your repayment period ends two and a half to five years after you file Chapter 13, depending on the terms of your repayment plan you’ll receive a notice that your case has been discharged. Wait about 120 days and then check all your credit reports. Make sure all loans settled under the repayment plan are closed and list zero balances. Check Your Credit ScoresIf you haven’t done so already, sign up for a service, such as the one from Experian that lets you check your credit scores for free. Your scores may not paint a pretty picture, but depending on how recently you filed your bankruptcy plan, they may not yet be at their lowest point: Your scores will decline significantly when you file bankruptcy, and if you file Chapter 7, they may dip further once the court has discharged your case a process that can take several months (and which may not be reflected in your credit file for several weeks after that). A Chapter 13 bankruptcy isn’t considered discharged until the end of the court-approved repayment period. If overdue or defaulted credit accounts significantly hurt your credit scores before you turned to bankruptcy a situation common to many filers you may find that filing for bankruptcy has less impact on your scores than you might have imagined, if only because your scores had already fallen about as far as they could. Some individuals with heavily damaged scores even see small score increases after filing Chapter 13 bankruptcy but their scores are still likely to be in poor territory. That can be a hard fact to face, but facing it is exactly how to begin your credit recovery plan. Avoid Repeating Past Mistakes—and Making New OnesYou can make your bankruptcy a learning experience by reviewing your past missteps and taking care not to repeat them. Re-examine your old patterns of spending, borrowing and repayment (or lack thereof) to better understand exactly what led you to bankruptcy, and take steps to ensure you won’t go down those paths again. Consider working with a certified credit counselor to devise a realistic budget, set achievable money management goals, and establish a long-term plan for rebuilding your credit. Beware credit repair companies that promise to help re-establish your credit in short order, or clean up your credit report quickly. There are no quick fixes for bankruptcy. Rebuilding your credit after you’ve filed for bankruptcy takes time and patience. Millions have done it, and you can too. Work on Rebuilding Your CreditOnce you have a solid sense of your credit picture, plan to monitor your credit scores monthly and check your credit reports annually. You can then take steps to begin building up your credit. Start by reviewing the factors that determine your credit scores, and habits that help them improve, and then consider these tried-and-true tactics: • Take out a credit-builder loan at your local credit union. As the name implies, these loans are designed to help people establish or rebuild credit. The amount you borrow typically no more than $1,000 is placed in a special savings account, where it earns interest but is inaccessible to you until the loan is paid in full. You make a fixed payment (with interest) each month for a set period ranging from six to 24 months, after which the funds are yours. (Some credit unions also let you keep some or all of your interest payments.) As long as you pay on time every month and after a bankruptcy you should vow never to make a late payment again your payments will appear as positive entries on your credit report and will tend to increase your credit score. To get the maximum benefit to your payment history, consider asking for the longest-available repayment period. That’ll add to the total interest you’ll pay, but if you’re keeping the interest payments anyway, that just means you’ll save a little extra. • Get a secured credit card. Another product popular at credit unions, but also offered by some banks and other institutions, secured credit cards do not require traditional credit checks. To get one, you must put down a cash deposit, and that sum typically becomes your borrowing limit. If you fail to pay your bills, the lender can take the deposit. If you use the card sparingly, but use it every month and always pay off your balance in full, you’ll establish an additional pattern of positive payments on your credit report. A good trick for making this work is to use the card for a payment that recurs every month such as a phone bill, gym membership and the like, and then set up an automatic payment to the card account through your checking account. • Consider credit card offers. After you’ve logged a year or two of positive payments via a credit-builder loan, a secured credit card or both, start watching your inbox and mailbox for credit card offers. The pickings may be slim: borrowing limits low, interest rates relatively high and fees less than ideal. But if you apply for and get a card, you can begin proving you can handle mainstream credit. As with a secured card, use your new card sparingly but regularly, to create a pattern of on-time payments. There Is Life After BankruptcyIf you follow these steps, and take care to avoid repeating past missteps, you’ll find that your credit scores will begin improving within a few years after your bankruptcy filing. And by the time the bankruptcy falls off your credit report after seven or 10 years (you don’t need to do anything to remove it), you may find yourself eligible for a wide range of credit, at reasonable rates. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post What To Expect After Bankruptcy first appeared on Michael Anderson.
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Estate Planning Attorney St George Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-to-expect-after-bankruptcy/ A good estate plan consists of many different components, including what happens to your assets and who should act on your behalf if you are unable to. At a bare minimum, there should be two main components: a last will and testament and a durable power of attorney. In addition to these parts, you can add things such as a trust and even medical directions. Last will and testamentA will gives you the power to decide what is in the best interests of your children and pets after you’re gone. It also can help you determine what will happen to possessions with financial or sentimental value. It typically names an executor someone who will be in charge of following your directions. Finally, you can include any funeral provisions. Use your will to name guardians for those under your care, including minor children and pets. Designate any assets you are leaving for their care. In the absence of a last will and testament, a probate court will name an executor typically a spouse or grown child for your estate. Probate proceedings are a matter of public record. So keep private information passwords, for example — out of your will, as that information could become part of a public document. Revocable living trustA living trust is another tool for passing assets to heirs while avoiding potentially expensive and time-consuming probate court proceedings. You name a trustee perhaps a spouse, family member or attorney to manage your property. Unlike a will, a trust can be used to distribute property now or after your death. If you have substantial property or wealth, a trust can provide tax savings. Beneficiary DesignationsWhen you purchase life insurance or open a retirement plan or bank account, you’re often asked to name a beneficiary, which is the person you want to inherit the proceeds when you die. These designations are powerful, and they take precedence over instructions in a will. Keep beneficiary designation papers with your estate planning documents. Review and update them as your life changes. Durable Power Of AttorneyA durable power of attorney allows you to choose someone to act on your behalf, financially and legally, in the event that you can’t make decisions. Don’t put off this chore. You must be legally competent to assign this role to someone. Older people worried about relinquishing control sometimes put off the task until they are no longer legally competent to do it. Health Care Power Of Attorney And Living WillTo ensure that someone can make medical decisions for you in the event you become incapacitated, establish a health care power of attorney also called a durable health care power of attorney. This is different from the previously mentioned durable power of attorney for financial and legal affairs. A living will lets you explain in advance of your death what types of care you do and do not want, in case you can’t communicate that in the future. It’s strictly a place to spell out your health care preferences and has no relation to a conventional will or living trust, which deals with property. You can use your living will to say as much or as little as you wish about the kind of health care you want to receive. Digital Asset TrustYou can use a digital asset trust to decide what to do with your electronic property, including your computer hard drive, digital photos, information stored in the cloud and online accounts such as Facebook, Yahoo, Google and Twitter. Create a separate list of your passwords. Letter Of IntentFor instructions, requests and important personal or financial information that don’t belong in your will, write a letter. Use it to convey your wishes for things you hope will be done. For example, you may have detailed instructions about how you want your funeral or memorial service to be performed. No attorney is needed. The letter won’t carry the legal weight of a will. List Of Important DocumentsMake certain your family knows where to find everything you’ve prepared. Make a list of documents, including where each is stored. Include papers for: Make a willIn a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent. Consider a trustIf you hold your property in a living trust, your survivors won’t have to go through probate court, a time-consuming and expensive process. Make health care directivesWriting out your wishes for health care can protect you if you become unable to make medical decisions for yourself. Health care directives include a health care declaration (“living will”) and a power of attorney for health care, which gives someone you choose the power to make decisions if you can’t. (In some states, these documents are combined into one, called an advance health care directive.) Make a financial power of attorneyWith a durable power of attorney for finances, you can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. The person you name to handle your finances is called your agent or attorney-in-fact (but doesn’t have to be an attorney). Protect your children’s property.You should name an adult to manage any money and property your minor children may inherit from you. This can be the same person as the personal guardian you name in your will. File beneficiary formsNaming a beneficiary for bank accounts and retirement plans makes the account automatically payable on death to your beneficiary and allows the funds to skip the probate process. Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death. Consider life insuranceIf you have young children or own a house, or you may owe significant debts or estate tax when you die, life insurance may be a good idea. Understand estate taxesMost estates more than 99.7% won’t owe federal estate taxes. Also, married couples can transfer up to twice the exempt amount tax-free, and all assets left to a spouse (as long as the spouse is a U.S. citizen) or tax-exempt charity is exempt from the tax. Cover funeral expenses.Rather than a funeral prepayment plan, which may be unreliable, you can set up a payable-on-death account at your bank and deposit funds into it to pay for your funeral and related expenses. Make final arrangements.Make your end-of-life wishes known regarding organ and body donation and disposition of your body burial or cremation. Protect your business.If you’re the sole owner of a business, you should have a succession plan. If you own a business with others, you should have a buyout agreement. Store your documents.Your attorney-in-fact and/or your executor (the person you choose in your will to administer your property after you die) may need access to the following documents: How Do You Store Important Files Digitally?Thanks to technology, you can store estate planning documents and other important records digitally. Among the options for digital storage: Importance Of Original Estate Planning DocumentsA decedent’s original will is required to commence probate. Without the original it may be difficult to impossible to probate the decedent’s estate according to the terms of the missing will. When the terms of a missing will can be established, such as through a copy or a duplicate original, then one may try to probate the will that was lost in a fire. However, there is a presumption that if the original was last in the possession of a deceased testator who was competent until the time of death that the missing was revoked by the testator. Preserving an original will is, therefore, very important. Keeping the original in a bank safe deposit box is a good approach, provided someone has a key to the box or is named as a co-owner or co-signatory. With a key to the decedent’s bank deposit box and the decedent’s death certificate, the key holder, upon identification, can access the safe deposit and take possession of any original will. When the original will is retrieved, a copy of the will must be left in the safe deposit box (along with the rest of the contents), the original will must be lodged with the superior court in the county where the decedent resided at death. A copy must be mailed to the person named in the will as executor. Unlike a will, a decedent’s original trust document (with amendments) is neither required to be recorded with any county nor required to be submitted to the court where the decedent resided at death. Nonetheless, it is still best to safeguard the original trust. Normally, a trust and will are kept together. The same applies to any original Trustee Affidavits and Trustee Resignations documents. The original Power of Attorney to manage property, financial, and legal affairs must be maintained. The original is required to be presented at the proper county recorder’s office if the Agent seeks to transfer real property using the Power of Attorney. Other recipients may accept a certified copy of the original, but that process still requires presenting the original document to a notary public or a licensed attorney for copying and certification. Except for the county recorder’s office, the necessity to always present the original power of attorney can be greatly reduced by the power of attorney providing that an unverified photocopy is as good as the original. If the Power of Attorney provides that it is immediately effective when signed, the original document should be kept safe against abuse until such time as its proper use is needed. Some people keep the original Power of Attorney with a trusted person other than the agent with instructions that Custodian to provide the Agent with the Power of Attorney in the event of their incapacity. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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