Regular Post
Written by Canterbury Law Group

3 Reasonable Alternatives to Bankruptcy

Declaring bankruptcy is a relatively extreme measure. Having said that, when used in the right way and at the right time, it can actually save you money, sustain your peace of mind, and get you back in a good place financially.  It can literally set you free.

Nonetheless, declaring bankruptcy can also be expensive and time-consuming. Furthermore, it can have an enormous impact on your credit score. As a result, this can have far-ranging effects on other aspects of your life, such as applying for an auto or home loan and even applying for jobs. You may be surprised to learn that waiting to declare bankruptcy until you are broke can actually do more harm than good.  If you’re on the path to financial ruin, you likely should consider bankruptcy sooner, not later.  You will end up with more in the end.

Because declaring for bankruptcy has long-lasting effects, bankruptcy lawyers in Scottsdale recommend the following alternatives to help you navigate through your financial situation.

Pay Bills Another Way

Working a second or third job is never a good time, nor is it a great way to spend your evenings and weekends. If it’s just for a short period of time, however, the extra income could put a real dent in your debt. What could be better? Although it may be difficult, consider working another job or two in order to make extra cash, if you can climb out of your debt hole within 12 to 24 months, this non-bankruptcy approach may make sense.

Follow a Budget

You’d be surprised to learn that many people don’t follow a budget and, as a result, don’t have a strong grasp on where their money goes (other than to pay bills, of course). In the absence of a written budget, it’s very difficult to see where or how you can make changes in your life that will free up your money.

For many people, the largest portions of our income go towards housing and transportation costs. For example, if you rent, downsizing your home and moving to a smaller place or searching for a roommate could largely impact your rent cost (it could also save you money on utilities as well). If your car is a gas guzzler, for example, selling and buying a small, fuel-efficient car could save you a lot of money that can be put towards debt payments.

Negotiate With Your Lenders

Fortunately, many lenders will lower interest rates or even consider adjusting your payment plan if you tell them you’re going to file for bankruptcy. This is particularly true of credit card companies, which stand to lose the most. Don’t be afraid to negotiate with your lenders in order to alleviate part of your situation. Or hire your bankruptcy counsel to conduct these negotiations for you.

bankruptcy, bankruptcy attorneys, Scottsdale Bankruptcy Attorney, Scottsdale Bankruptcy Lawyer
, ,
0
Regular Post
Written by Canterbury Law Group

10 Well-Known Causes of Bankruptcy

While there are a variety of reasons as to why people end up filing for bankruptcy, there are certainly some leading causes. Based on recent studies, bankruptcy lawyers in Scottsdale break down the top 10 leading reasons. As you’ll see, the percentages represent the proportionate weight as to why an individual ultimately files for bankruptcy. Let’s take a look at them.

Medical Expenses (42%)

According to research, 42% of all personal bankruptcies are a result of complicated medical expenses. Interestingly enough, the studies also show us that 78% of those who filed had health insurance.

Job Loss (22%)

There are millions upon millions of Americans that are unemployed. As a result, this makes them much more likely to file for bankruptcy. Those who are unemployed often pay for health insurance out-of-pocket.

Unmonitored Spending (15%)

Bankruptcy can often come as a result of credit card bills, hefty mortgages, and expensive car payments. Uncontrolled spending habits can put Americans on the unfortunate path to filing.

Divorce (8%)

Legal fees, child support, and alimony can result in heightened financial stress. Unfortunately, nearly one out of every two marriages fail in America.

Unexpected Disaster (7%)

Unanticipated disasters such as earthquakes, floods, or hurricanes can be very hard to prepare for. Without insurance, this can possibly result in bankruptcy.

Avoiding Foreclosure (1.5%)

Someone can spend nearly a lifetime preparing to buy a home. In order to avoid foreclosure, some Americans will file for bankruptcy to reorganize debt in an effort to save their homes.

Poor Financial Planning (1.5%)

In the absence of a logical financial plan, bankruptcy can always occur. You should always build up your cash savings for out of the blue expenses that could lead to debt.

Preventing Loss of Utilities (1%)

With a foreclosure, you also run the risk of losing utilities. Keeping your lights and heat on too often can have severe financial consequences.

Student Loans (1%)

Fortunately, it may be possible to consolidate student loans with a bankruptcy.  Speak to your bankruptcy lawyer about your options, if any.

Preventing Repossession (1%)

If a creditor repossessed your car, bankruptcy may put you in a position to have your vehicle returned, in addition to any other personal property that may have been repossessed.

In order to avoid bankruptcy, consider steering clear of the aforementioned leading causes. Reading often and talking to people in order to education yourself will help you in the long run. Doing a few things right and maintaining those habits will put you a great place financially and will help you see through your monetary goals.

bankruptcy, bankruptcy attorneys, Scottsdale Bankruptcy Attorney, Scottsdale Bankruptcy Lawyer
, ,
0
Regular Post
Written by Canterbury Law Group

Reasons to Finalize Your Divorce and Save Money

If your marriage is in a rocky place, it would behoove you to be mindful of the timing of decisions; the government has recently enacted a few tax laws that impact divorcing couples, especially those with high net worth. Tax codes are perplexing in the best of times and now, quite frankly, does not constitute the best of times. This makes it more important that you understand how these new laws affect you.

How do you decide if it is in your best interest to settle this year? The first step is to take a deep breath. Second, divorce attorneys in Scottsdale recommend considering the three items below and what effect they will have on you. Third, work with a lawyer as well as a financial advisor experienced in divorce to minimize the impact of the new laws.

Move Fast To Control Taxes On Alimony

Alimony, often called spousal support or maintenance, will have a significant change on New Year’s’ Day in 2019. Under current laws, alimony has been deductible by the paying spouse and taxable to the receiving spouse. This benefited the family unit as the recipient paid tax at a lower rate than the payor deducted it at resulting in lower taxes. Going forward, however, alimony will no longer be deductible by the payor or taxable to the recipient.  Alimony will now be treated the same as child support: tax free.

Tax Benefits Of The Family Home Are Changing

 Your home. This is a popular item in many divorces. Is it a top priority to keep it? Are you itching to leave it behind with the past? How do you split the value? It’s important to focus on your home as a financial asset while factoring in the memories as well as the potential emotional stability it may provide. The new tax law reduced the deductibility of property taxes and the amount of mortgage that qualifies for interest deduction making it more expensive to own a home under the new tax laws.

Kids Are No Longer As Great A Tax Deduction

The new tax code also eliminated the personal exemption amount for tax years 2018–2025. This means that you don’t get a multiplier of kids as a deduction on your tax return. It’s still important, however, to negotiate who will claim the kids for other purposes. While the exemption amount is zero dollars, it may allow the parent to receive additional child tax credits, which are more generous under the new law.

Divorce attorneys Scottsdale, Divorce Rate, Divorced Parents, Scottsdale Divorce
, , ,
0
Regular Post
Written by Canterbury Law Group

6 of the Hardest Moments During Divorce, According to Women Who Have Experienced It

It can be hard. It can be ugly.

Divorce is never a good thing (in the moment), but it happens.  A lot.

Of course, divorce can always end up being a good thing when all is said in done, but going through the process yields some difficult and challenging times. There are arguments about money, child custody, real estate, residences, and more. These disputes seem to go on forever with little to no resolution.

While every divorce is a little bit different, arguments about money generally top the list. Especially if you’re in business with your spouse, figuring out how to separate money can be a brutal task. The process involves lawyers and a lot of tears. Sure, there are things that be done to prevent divorce, but sometimes it is unavoidable.

Why must divorce be so hard? It need not be.  Divorce attorneys in Scottsdale will tell you that there is a right way to approach this transition as opposed to the long-reviled “scorched earth” approach.  Is it really worth the emotional and financial trauma to “go to war” with someone you once loved deeply?

That said, let’s take a look at six of the hardest moments during a divorce, according to women who have been through the conventional litigation process to achieve it.

Money Stress

During your marriage, there are times when you may have discovered your spouse handling finances in a secretive and non-transparent manner. For example, perhaps your spouse had a gambling or substance abuse issue that caused depletion of your community funds. This can end up very, very messy.

Leaving Your Home

After pouring your heart and soul into your primary housing (including potential renovations), having to either sell it or move out is a very difficult process.  Memories were made in that space, the children grew attached, school districts were established.

Feeling Unsafe

One of the most compromising feelings is the notion that you’re in a dangerous physical predicament During a divorce, you may experience blowout fights that can result in the feeling of being unsafe.  Your lawyers can solve this problem rapidly and with strength so you can sleep well at night.

Seeing Someone Else

Things can get ugly if/when you find out that your spouse is romatically seeing someone else prior to divorce papers officially being filed or later on, finalized. This can be seen as disrespectful and downright rude.

Time Away From The Kids

Not being near your kids each and every day can result in a lot of heartache. Experiencing divorce is hard enough; losing time with your kids may be harder.

Losing Your Best Friend

After all, people tend to marry who they refer to as their best friend. Knowing that you’re losing your friend and husband/wife at the same time can be a deflating feeling.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate
, ,
0
Regular Post
Written by Canterbury Law Group

Leading Reasons for Divorce in New Marriages

If you’re in a marriage that’s less than three years old, you’ll likely experience any of the following signs that, of course, may not seem like such a big deal, to begin with.  Over time, these signs can emerge to more serious family issues.  Pay attention.

During the onset of a marriage, you may still be infatuated with each other or may be too deeply in emotional love to see any signs of things going south. Having said that, divorce attorneys in Scottsdale recommend paying attention to the following red flags in order to avoid a potentially catastrophic situation.

You Think You’re Too Good

While it may seem like a funny thought that you think you’re too good for your spouse, dissatisfaction over time will lead you to make mistakes that you may end up regretting. Take another look at your spouse’s great qualities instead of only focusing on the negative.

You Feel Constrained

Do you feel like your marriage is holding you back from achieving your potential? If you feel like you’re being tied down, chances are you’ll seek out opportunities to break out of the cage when your spouse’s back is turned.

Lack of Communication

Communication isn’t just about speaking with one another. Communication is also about understanding each other clearly and learning more about what makes each person tick. Take some time to understand the difference between talking and truly communicating.

Expectations From Each Other

For many people, marriage is the next step in the great cycle of life. Having said that, this is not the case for everyone. When two individuals get married, they have expectations from each other and the relationship. Sometimes, these expectations aren’t mutual and end up distancing two people. This goes back to our previous point about the utmost importance of communication.

Difference in Cultural Backgrounds

Differences in family members, friends, and religious beliefs may seem cute at first. However, all it takes is a few months of suppressed ideas and opposing thoughts to create real problems in a marriage.

Trust

Think about whether or not you really trust your spouse. If you find their behavior suspicious, that could be a serious red flag. Trust is an integral part of any marriage. If you can’t trust your spouse, your marriage will not survive in the long haul.

Incompatible Personalities

Both of you and your spouse may be two perfect individuals who are just entirely imperfect for each other. If you have nothing in common, it may be a better option to date other people and cut your losses.  You only can get one journey on this planet, make the best of it while you’re still healthy, attractive and have other options.

Divorce Attorney, Family Law, Family Law Attorney, Family Law help in Scottsdale
, ,
0
Regular Post
Written by Canterbury Law Group

5 Divorce Mistakes to Stay Away From

Sure, every divorce has unique attributes that make the experience different for each person. Having said that, there are a myriad of mistakes we find to commonly observe during a divorce. If you’re even considering divorce, divorce attorneys in Scottsdale recommend the following critical advance checklist to help you avoid these unnecessary issues.

 

Settlements That Assume Status Quo

One of the main goals of a divorce is to establish an “equitable split” of assets, which requires an understanding of your current situation and true market valuation of all your assets. At times, this necessity to focus on the present state of affairs can result in an analysis that doesn’t take into consideration potential future events. Unfortunate events can occur at any point after a divorce and may include things like job loss, disability, health changes or asset depreciation.

Complications can always arise when it comes to paying for college when a settlement agreement focuses too heavily on the maintenance of the status quo. For example, if college costs are to be split based on salary, what happens if/when you or your spouse lose your job? Unforeseen future events can put you in a difficult situation and pay for a large expense (e.g. maintenance, college tuition) you hadn’t previously planned for.

When negotiating your divorce settlement, remember to consider what might not be the same in the future. You will want to speak with your attorney or financial adviser about considering these potential changes.  There are many moving parts and you should trust seasoned legal counsel to navigate you through the process.

Unrealistic Lifestyle Expectations

Divorce means there is no longer one household, but two households.  The standard of living is likely to drop for both parties post-Decree.   Difficult decisions about who should keep the house, or if it should be sold, have emotional, practical, and financial implications for both parties for years to come. Housing is just one of numerous lifestyle decisions faced when a divorce takes place. Unfortunately, too many divorcees expect to live a similar lifestyle in divorce, including for their children. This is a false reality—both parties are still making the same money, but now two roofs and two sets of bills must be paid.  Quite often, there is simply not enough money to go around for anyone to live the same, let alone better after the divorce.

Avoiding The Details

Facing the logistics of a divorce can be exhausting, especially if it’s a complicated situation (which it usually is). Lengthy legal proceedings require you to reveal the details of your life. At the same time, you’re asked to gather a large amount of data and information to support negotiations, and this usually doesn’t end just because the divorce comes to a close.  Get ready to gather documents and disclosures the likes of which even your worst mortgage refinance would have ever taken.  It’s a reality and part of the process.

Lack of Financial Literacy

One of the main reasons these rampant mistakes occur during a divorce is that both parties lack even a basic financial education. Modern financial literacy is generally learned through experience rather than in school. Take time to educate yourself so you don’t run into problems.  Better still, hand the entire process over to a seasoned professional who has handled hundreds of divorces before yours ever began.

Divorce Attorney, Divorce attorneys Scottsdale, Divorced Parents, Scottsdale Divorce
, ,
0
Regular Post
Written by Canterbury Law Group

Four Logical Tips to Improve Your Marital Finances

It is no secret that nearly all marriages come with financial obstacles. Big or small, money issues will inevitably come up and will certainly be stressful. Whenever you are feeling strapped, you may overreact and try to completely overhaul your finances. Having said that, saving money in short, aggressive spurts is the financial equivalent of a crash diet and therefore never truly works.

Divorce attorneys in Scottsdale recommend sticking to the following four financial tips to secure comfort and peace of mind in your marriage.

Set A Grocery Limit

Due to the simple fact that a grocery bill is not a fixed expense (like a car payment or internet bill), food costs can be significantly reduced. Try creating a meal plan before going to the store and buying only for those specific meals. Furthermore, you can consider buying your groceries online. This way you’ll know exactly what your total bill will be before you buy.

Walk (Everywhere)

There is no question that walking places will save you money. Outside of walking, public transportation is the next best option. Buses and light rails are a perfect way of getting around in an urban area. However, walking with your spouse is almost like a completely free built-in date. You can often choose a far-away restaurant, grab a go-cup of wine (legal in some cities), and take the extra long stroll as a pre-and post-dinner activity. Not only will this save you cash, but it’s a nice chance to catch up and get more exercise.

Stay In On The Weekend

Quite frankly, this can be boring. Once Friday rolls around, you may feel that you’ve earned a night out for the hard work you’ve done all week. Generally speaking, however, this can be an expensive habit. Although this may seem boring at first, staying in doesn’t mean that you can’t have fun or celebrate the week’s end. On Friday, you can have a drink on your porch and then cook dinner together. Usually, this proves to be a lovely evening and a great way to save money.

Travel More Thriftily

Instead of booking a hotel room, look into booking a rental home. This will save you money. Ultimately, you’ll be able to cook breakfast in “your house” and sip a bottle of store-bought wine on the balcony after dinner. Sure, you may miss being in a full-service hotel, but it’s a nice treat to feel as if you live like locals. Not only that, it will save you enough money to tuck away toward a future trip.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Scottsdale Divorce
, ,
0
Regular Post
Written by Canterbury Law Group

Reasons Why People Make Divorce Overly Expensive

There is no question that it takes more money to run one household than two households after a divorce. Having said that, it doesn’t mean that it isn’t doable or worth it to go through a divorce, if that’s what is necessary, you have little choice.

Sure, divorce is expensive. When all is said and done, costs can run close to $50,000 to $100,000 if both sides dig in and want to litigate. That is a lot of money.

While there are certainly ways to save money during a divorce, there are also many ways to increase costs, many of which are almost entirely unnecessary.

Divorce lawyers in Scottsdale see costs continue to grow as people exhibit the following behaviors.

Of course you want what you are entitled to. Having said that, are you willing to go to the brink on this one even if the amount that you fight for is not enough to cover attorney costs? Think about that one for a minute. Spending ten thousand dollars to win back five thousand dollars to “show up your spouse”—that’s bad math. Do not do it.

Refuse to Accept Your Settlement Proposal

Sure, your attorney wants what is best for you, even if that entails you spending all of your money on what’s right. Ultimately, you should get what you deserve, right? Demand That Your Ex Runs All Parenting Decisions By You If you and your spouse struggled to make parenting decisions during your marriage, what makes you think that it’ll go smoothly once you’re divorced? This will only result in wasted time, energy, and money.

Negotiate With Your Spouse

One of the most common reasons as to why people file for divorce is due to trouble communicating. Spouses constantly argue about budgets, schedules, and general decision-making. Things can escalate from there within a divorce.

Hire a Child Custody Evaluator

These professionals generally charge about $10k to $15k for a comprehensive custody evaluation, not including time spent as a witness at any hearings. — Sure would be cheaper to hammer out a compromise with the other parent compared to spending the time money and tears usually consumed in the child custody evaluation process.

If you want to decrease costs during a divorce, consider avoiding the aforementioned behaviors. They will save you time and money in the short-term and make you much happier in the long-term.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate
, , ,
0
Regular Post
Written by Canterbury Law Group

When to File For Bankruptcy

When it comes to filing for bankruptcy, timing is everything. While everybody’s situation is different, divorce lawyers in Scottsdale suggest paying attention to the following four signs, which may mean that it’s the right time to file for bankruptcy.

Behind on Bills

Sure, life is certainly unpredictable and, generally speaking, you may not be prepared for a financial crisis. If you are in a tough position and know you won’t be able to pay your bills on time each month, (or have already fallen behind), filing for bankruptcy can really help you get back to where you need to be. For example, a Chapter 7 bankruptcy is deemed a liquidation bankruptcy that is structured to immediately eliminate your debts. Throughout this process, your Trustee will sell your property and use the funds to compensate your creditors. Unless otherwise
specified by you, your automobile can also be included in the sale of your property.

You’re in Debt Through a Collection Agency

If you have debt that’s been building up, there is a chance you may end up being sued if you continue to ignore debt collectors. Filing for bankruptcy can really help if you think you may end up in this position. Filing for bankruptcy puts what’s known as an “automatic stay” against debt collectors and can put an end to any additional collection actions.

Your Wages Are Garnished

In order to pay down a debt, creditors often take extra action to ensure the amount owed is legitimately paid. In doing so, collection agencies obtain a court order to garnish your wages. As soon as this happens, your employer is bound by law to hold back a specified amount from each paycheck, which ultimately goes towards paying down the debt that you owe. Similar to being sued, the automatic stay after filing for bankruptcy can block a company from further garnishing your wages.

You Might Lose Your House or Car

Let’s say you’re behind on payments for your house or car. Bankruptcy might be an effective way to stop repossession or even foreclosure (even if it’s temporarily). Furthermore, this will give you enough time to catch up on payments. Nonetheless, you’ll always want to speak with your lender regarding various options before you take an initial step.
—
A great deal of thought should go into the decision to file for bankruptcy. As always, you should seek advice from an attorney if this is something you are considering. The sooner you consult a lawyer, the better, do not wait until the last minute when all of your money is gone and your debts are at their peak levels.

bankruptcy, bankruptcy attorneys, Scottsdale Bankruptcy Attorney, Scottsdale Bankruptcy Lawyer
, , ,
0
Regular Post
Written by Canterbury Law Group

4 Tips to Managing Your Money During a Divorce

It’s never fun, but sometimes (and unfortunately) it’s necessary.

Going through a divorce is as tough on your finances as it is on your heart. Having said that, while a divorce will certainly alter your marital status, it really doesn’t have to change who you are as a person.

Divorce lawyers in Scottsdale recommend the following four tips to managing your money during a divorce. These tips will help you push your emotions aside and grasp a stronger hold on your life.

Access Your Credit Reports

Once every year, you are able to pull a free credit report from each of the three credit reporting agencies – Equifax, Experian, and TransUnion. The agencies will show each and every credit account that is in your name, regardless of whether it is individually or jointly owned. If your spouse (or ex-spouse) doesn’t pay his/her bills on time, it can negatively impact your credit score. By watching your credit, you are also watching your spouse in many ways.

Work With Your Ex

You should really continue to utilize your individual or jointly-owned accounts as normal. If you come to a point and realize that you don’t have the proper funds to hire a divorce attorney and handle any other relevant expenses, you should come to a mutual decision with your spouse about spending a conservative and equal amount to get what you want. In the case of a relationship that isn’t amicable, consider going through your attorney for legal separation. This would specify how you both should be using your money until the divorce is complete.

Remember Health Insurance

If you were on your spouse’s insurance policy, paying for an entirely new individual policy could cost you a significant amount of money. You really want to take time to examine your insurance policy before your divorce is finalized. Open enrollment for health insurance begins at the end of the year. A change in health insurance resulting from a divorce is considered to be a “qualifying life event.” Thus, you’ll likely be eligible for a plan under a Special Enrollment Period regardless of your offical divorce decree date.

Establish a Financial Plan

Living on less income is certainly no easy task. In order to be financially stable, you need to learn the art of budgeting. You’ll need to consider things like college tuition, sports and activities, child care, lessons, retirement, transportation, taxes, and rent/mortgage payments.

Here’s another thought: if your divorce settlement results in money from property sales, retirement account rollovers, or the sale of other assets, consider using a financial planner to help you create a budget and to properly navigate the taxable implications of such transactions.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Scottsdale Divorce
, ,
0
1 … 10 11 12 13 14 … 26