blank
Regular Post
Written by Canterbury Law Group

Bankruptcy Filing Fees and Costs

Below is a summary of filing fees for bankruptcy, the price of required credit counseling, and if you qualify for fee waivers or installment payments.

You have to pay filing fees and expenses for credit and debt counseling when you file for bankruptcy. You may be eligible for a fee waiver or be able to pay in installments if you are unable to pay the filing fee.

You can find a summary of what needs to be paid, when, and how to be eligible for installment payments or a fee waiver in this article.

Bankruptcy Petition Fees: Chapter 7 and Chapter 13 Filing Fees

The total amount of fees you have to pay in order to file for bankruptcy is as follows, as of December 1, 2020:

For Chapter 7, $338
For Chapter 11, $1,738
Chapter 12: $278; Chapter 13: $313
Periodically, the bankruptcy court raises these fees. The U.S. Courts fee webpage has the most recent fees available.

Chapter 7: Installments and Waivers of Filing Fees

The filing fee is usually due at the time your bankruptcy petition is filed. There are two exclusions from Chapter 7 bankruptcy, though. Asking the court to waive the fee completely or allow you to pay it in installments is an option.

Application for Installments of the Chapter 7 Filing Fee

You file Form 103A Application for Individuals to Pay the Filing Fee in Installments to request permission from the court to pay your filing fee over time. You must indicate on the form that you are unable to pay the fee in full and that you will make no more than four payments within 120 days of the petition’s filing.

Request for Waiver of Chapter 7 Filing Fee

If the court waives the fee, you are not required to pay it. If you are eligible for a fee waiver, you

must be unable to make payments in installments and have an income that is less than 150% of the federal poverty threshold (official poverty line estimates are available from your bankruptcy court).
Fill out Form 103B, Application to Have the Chapter 7 Filing Fee Waived, and send it in to request a fee waiver. In many cases, the judge will approve the application without requiring you to appear in person, but you may still be required to appear in court so the judge can question you.

See how to make changes to bankruptcy forms.

In Chapter 13, there are no fee waivers or installment payments.

Fee waivers and installment payments are generally not available to Chapter 13 filers because they must have sufficient funds to support a repayment plan for three to five years following filing for bankruptcy. When submitting the case, budget for the cost.

Extra Fees Associated with Bankruptcy Filing

Credit counseling from an authorized provider must be completed no later than six months prior to filing for bankruptcy under Chapter 7 or Chapter 13. To get your bankruptcy discharge (the order that eliminates qualifying debt), you have to complete a debtor education course after filing your case.

For the necessary counseling, the majority of approved credit counseling providers charge $15 to $30, but you might not be required to pay anything. In accordance with the law, agencies must offer counseling regardless of your financial situation, so please inform the agency if this is not possible for you.

Additionally, the debtor education classes run about $35. You can request that the provider waive the fee or let you pay a smaller amount if you are unable to pay the full amount.

How to Pay Your Attorney Fees in Bankruptcy

Since many bankruptcy attorneys charge as little as $100 to begin, finding a way to pay Chapter 13 bankruptcy fees is not too difficult; the remaining amount can be rolled into your Chapter 13 repayment plan. You can pay your Chapter 13 fees gradually with this method.

You must pay your attorney in full before filing for Chapter 7 bankruptcy. For what reason? because legal fees are eliminated in Chapter 7 bankruptcy. Your attorney won’t get paid if you don’t make the entire payment.

To file for Chapter 7, how do you obtain the necessary funds? Most Chapter 7 filers divert their payments intended for bill cancellation during bankruptcy to pay their attorney. The funds will be borrowed by others from friends and relatives.

But there are other approaches. If you are unable to pay for a bankruptcy attorney, you can find out more information here about your options.

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

Will I Lose My Home If I File for Chapter 7 Bankruptcy?

You won’t necessarily lose your home in Chapter 7 bankruptcy, especially if you don’t have much home equity and your mortgage is current. But it can happen. Whether you’ll lose your home after filing for Chapter 7 bankruptcy will depend on the following factors:

  • whether your mortgage is current
  • if you can continue making the payments after bankruptcy
  • the amount of your home equity, and
  • whether your state’s homestead exemption will protect all of the equity.

If you’re behind on your payment, in foreclosure, or can’t exempt all of your home equity, you’ll have a better chance of keeping your home using Chapter 13 bankruptcy. Filers faced with those circumstances should learn more about choosing between Chapter 7 or Chapter 13 when keeping a home.

Your Home and the Chapter 7 Bankruptcy Trustee

Chapters 7 and 13 work very differently, so it’s essential to understand what you must do to keep valuable property in Chapter 7. Here’s how it works.

After filing for Chapter 7, your property will go into a bankruptcy estate held by the Chapter 7 bankruptcy trustee appointed to your case. The trustee will sell property in the estate for the benefit of creditors.

However, you don’t lose everything you own.

You can “exempt” or remove property from the estate your state determined is reasonably necessary to maintain a home and employment. You’ll find out what you can keep by reviewing your state’s bankruptcy exemptions.

Here’s the tricky part—if you make a mistake, it’s unlikely that the bankruptcy judge will allow you to dismiss the case, and you could lose the house. So you must follow the rules carefully.

Are Your House Payments Current?

The automatic stay will temporarily stop a foreclosure when you file for Chapter 7. But if you’re behind on the mortgage payment when you file, the best you can hope for is delaying the process for a few months.

  • Why filing won’t cure a default. Chapter 7 bankruptcy doesn’t provide a way for you to catch up on the overdue payments. This presents a problem because a mortgage is a secured debt, and Chapter 7 doesn’t erase the lien that gives the lender the right to take back the home if you don’t pay. The lender can foreclose after the automatic stay lifts, and you’ll lose the house.
  • What will happen if you file. The lender can ask the court to lift the automatic stay to allow foreclosure proceedings to continue, which the court will likely grant if the trustee doesn’t plan to sell the home. Or, the lender can wait until the bankruptcy ends, proceed with foreclosure, and sell the house at auction.
  • Chapter 13 bankruptcy can help. If you’re behind and want to keep your home, the better option is to file a Chapter 13 case. Unlike a Chapter 7 bankruptcy, Chapter 13’s repayment plan provides a way for you to catch up on mortgage arrearages. Also, if you have more equity than you can protect with a homestead exemption (more below), you can prevent a home loss by paying your creditors the value of the nonexempt equity through the plan.

Can You Continue Making House Payments After Chapter 7 Bankruptcy?

It’s also essential to be sure you can afford to continue paying the mortgage after a Chapter 7, because losing the house after your case might put you in a worse financial position. Why? If the lender couldn’t sell the home for the amount you owe, you’d be stuck with a deficiency balance depending on the laws of your state.

Worse yet? You’d have to wait eight years to file a second Chapter 7 bankruptcy, leaving the lender plenty of time to collect a deficiency balance using collection methods such as garnishing your wages or levying on a bank account.

How Much Equity Is in Your Home?

If your mortgage payment is up-to-date, your next step will be determining how much equity exists. You’ll start by valuing your home.

Next, subtract any outstanding mortgage balance from the home value to get your “equity.” The equity is the amount you’d have in your pocket after selling the house and paying the mortgage.

If you don’t have any equity, you’re in good shape. Trustees don’t sell houses without equity. Otherwise, you’ll need to be able to protect your equity with a bankruptcy exemption to avoid losing the home in Chapter 7 bankruptcy.

Learn more about filing for bankruptcy if you have equity in your home.

Can You Protect Your Home Equity With Bankruptcy Exemptions?

State exemption statutes list the property its residents can protect in bankruptcy. Some states allow residents to choose between the state exemption list or the federal bankruptcy exemption scheme. Either way, almost all states allow residents to protect some home equity with a homestead exemption. You might be able to exempt even more with a wildcard exemption.

If your exemptions adequately cover your equity, the trustee won’t sell your home in a Chapter 7 bankruptcy. However, if your exemptions protect only a portion of it, the trustee will sell the house, pay off the mortgage, give you the amount you’re entitled to exempt, and use the remainder of the sales proceeds to pay creditors.

Although you can’t figure costs into your equity determination, the trustee will consider costs before selling the home. If, after deducting sales costs, the amount remaining isn’t enough to make a meaningful payment to creditors, the trustee will abandon the property, and you’ll get to keep it.

Source

https://www.nolo.com/legal-encyclopedia/lose-home-file-chapter-7-bankruptcy.html

bankruptcy, bankruptcy attorneys, personal bankruptcy attorneys, Scottsdale Bankruptcy Attorney, Scottsdale Bankruptcy Lawyer, Uncategorized
, ,
0
7 Ways To Lose Custody of Your Child: Moms and Dads
Regular Post
Written by Canterbury Law Group

Domestic Partnerships

Not every happy, committed couple chooses to get married. For their own reasons, some couples choose to cohabitate. Some couples may legally formalize their relationship to receive some of the benefits married couples enjoy. They may file for a domestic partnership or a civil union. In some states, however, there is no alternative legally recognized relationship. But any unmarried couple can create a cohabitation agreement on their own. This is essentially just a contract between two parties.

A cohabitation agreement clarifies the rights and responsibilities of each person in the relationship. It documents how finances, assets, and debts will be handled during the relationship. And depending on what the couple wishes to include in the document, it can do more.

FindLaw’s Domestic Partnerships section provides information about these alternatives to marriage. Review the links below to learn about the benefits of domestic partnership and civil union, state laws, and how to start and end a relationship.

What Is a Domestic Partnership?

A domestic partnership is a legally recognized form of a committed relationship. Not all states recognize domestic partnerships within a legal context. The details of domestic partnerships may differ by state and municipality.

According to the National Conferences of State Legislatures, these states recognize domestic partnerships:

  • California
  • District of Columbia
  • Hawaii (allows for reciprocal beneficiaries)
  • Maine
  • Nevada
  • Oregon
  • Washington
  • Wisconsin

Some municipalities recognize domestic partnerships even though their state does not. Individual businesses may recognize domestic partnerships for purposes of employee benefits, even if the states in which they operate does not.

Domestic partnerships became particularly significant during the push for same-sex marriage rights. Many states and cities offered domestic partnerships when same-sex marriages weren’t yet legal. To make it official, partners need to file a Domestic Partnership Agreement. They usually must pay a filing fee to the local government.

What Is a Civil Union?

Civil unions extended some of the legal rights of marriage to same-sex couples. Since the legalization of gay marriage by the Supreme Court in 2015, civil unions have waned in popularity. Only Colorado, Hawaii, Illinois, New Jersey, and Vermont still recognize civil unions. The federal government does not consider civil unions to be the legal equivalent of marriage.

Why Domestic Partnership Instead of Marriage?

Why would a couple choose a domestic partnership instead of just getting married? Most likely, there are personal reasons for avoiding marriage. They may feel there are too many societal or family obligations that come with marriage. They may have been part of a nasty divorce and are now shy of repeating a past mistake. Domestic partnerships are easier to end.

There can also be financial benefits to avoiding marriage. Couples where both partners are high earners can avoid the “marriage penalty” when it comes to taxes. A cohabiting partner receiving alimony may continue to receive alimony. This varies by state, however, and is an evolving area of law.

The Benefits of Domestic Partnerships

A domestic partnership provides the two parties with some of the legal benefits of marriage. But just as recognition of domestic partnerships varies by state, so do the benefits. One of the main reasons to enter a domestic partnership is to access domestic partnership benefits. This could include health and life insurance benefits, death benefits, and rights to family leave when a partner is ill.

Domestic partners may be eligible for these benefits:

  • Coverage by a partner’s work-provided healthcare or insurance benefits plan
  • Eligibility for family sick leave and bereavement leave if one’s partner gets sick or dies
  • Tax benefits from filing taxes as a single filer, which typically has a lower tax bracket
  • Rights to the inheritance of a domestic partner, which some states recognize but others do not (see the Social Security website for information on non-marital legal relationships)
  • The allowance of domestic partners’ hospital and jail visitation rights, as recognized by some states
  • The allowance of domestic partners to make financial and medical decisions on a partner’s behalf, as recognized by some states

The Downside of Domestic Partnership

There are some significant downsides to domestic partnership status compared to traditional marriage. Domestic partnerships are not uniformly recognized by the federal government or its agencies (like Social Security or the IRS). They are also not recognized by insurance companies in the same way or by all foreign governments. Additionally:

  • You cannot file your taxes jointly.
  • Your partner cannot receive your Social Security benefits after you die.
  • You may not automatically inherit from your partner. If you are named in a will and inherit, you may pay inheritance tax.
  • If an employer extends health insurance benefits to a non-employee partner, the value of that benefit is taxable income. There may also be different limits on coverage.
  • A domestic partner may not have the same rights of access, information, and medical decision-making that a spouse would have.

To understand the financial and tax implications of a domestic partnership, talk to a tax attorney.

Termination of domestic partnerships is similarly easy. One partner typically files a form with the Secretary of State or the county or city clerk. Assets in the marriage do not become community property. They remain individual assets. If both parties paid for an asset, they may work through an attorney or mediator on property division.

If there are children from the relationship, a child custody and parenting time agreement need to be negotiated. You will also need to get a child custody court order approved by a family court judge. The court might also order child support.

Hiring a Family Law Attorney

Understanding the legal and financial issues surrounding domestic partnerships can be challenging. An experienced family law attorney can provide information about domestic partnership laws in your state. They can also draft a cohabitation agreement or assist with property division and child custody. Attorneys can provide you with valuable legal advice.

Uncategorized
0
blank
Regular Post
Written by Canterbury Law Group

Four Tips to Help When You Want to Ask for a Divorce

No matter how much work you put into a marriage, some ultimately will end in divorce. You’ve done everything you can. The two of you have sought out help and done what is asked. In the end though, no matter what you do, the two of you can’t seem to get along.

If the word divorce is going through your mind, it can be a scary topic to discuss. How do you bring it up to your partner without causing a war? There’s no easy way to ask someone for a divorce. With a little bit of preparation and empathy, however, you can bring up the topic without causing too much stress on your partner.

Your divorce attorney in Scottsdale is here to help you with all of your legal matters when ending a marriage.

Prepare Yourself

The first thing you want to do is prepare yourself for the conversation. It would help if you were confident in your decision and that it is the best option for both of you.

Ask yourself why you want a divorce in the first place. Use this reason as a way to explain it to your partner. Then, try and put yourself in his or her shoes and come up with different questions he or she may have. The more answers you have, the better you can explain the situation clearly to your partner.

Talk in an Appropriate Environment

There are a time and a place for having a conversation about divorce. Timing is crucial when delivering this type of news. Of course, there is no perfect time for having a conversation about divorce. There are though, times that are more appropriate than others.

You wouldn’t’ want to bring up a divorce if your partner recently underwent a stressful situation or had some kind of trauma. That could make an already stressful situation even worse.

Choose a place that is private and where there are minimal distractions and stressors. The more calming and comfortable the environment is, the better chance you have for the discussion to go more smoothly.

Own Your Decision

Unless this isn’t the first time the word divorce has come up, your spouse is likely to feel caught off guard. How you deliver the message will determine the rest of the conversation.

You want to own your decision. Be clear that you have made up your mind and that this is what you want. Be firm as you talk, yet gentle and empathetic towards your partner. Being rude and getting upset will only make things worse.

Get Professional Help

After the divorce conversation, there will be many emotions between the two of you. The best way to handle them is for each of you to seek out professional help. Speaking with a divorce coach or a counselor will help you deal with your emotions and heartbreak so that you can move forward with the process in a healthy way.

There is no easy way to ask your spouse for a divorce. However, they cannot force you to remain married if you want out.  Either spouse can seek divorce at any time.  However, you can prepare yourself for the conversation. Keep your partner’s emotions in mind when delivering the news. Try and put yourself in his or her shoes so you can understand how they might react. The more peaceful the conversation, the better off everyone will be.  They deserve care and respect, they were once your life partner.

Uncategorized
, , ,
0
blank
Regular Post
Written by Canterbury Law Group

3 Reasons You Should Get a Prenuptial

While prenuptial agreements are largely popular amongst the rich and famous, average people really ought to consider prenups as well.

Depending on your financial status and ongoing relationship, signing a prenup might be a very, very good decision. Divorce lawyers in Scottsdale recommend the following three reasons to sign a prenup before your wedding day.

CHILDREN

If either you or your spouse has children from a different relationship, it’s critical to sign a prenup to ensure that they will be taken care of in the event of divorce or death. As of 2013, 4 out of 10 marriages included at least one person who had been in a previous marriage.

With a prenup, assets are protected, and an estate plan is carefully laid out for children. Ultimately, you need to consider whether you’d want your assets going to the surviving spouse or directly to your children from a previous marriage. A will is not enough. You want a prenup to solidify the terms of the will.

DEBT

While prenups oftentimes protect wealth, they can also keep you free from your spouse’s debt. If one or both of you are entering the marriage carrying debt, a prenup will specify who is responsible for paying off the debt both during and after the marriage.

STAY-AT-HOME-PARENT

When one of the parents stays home with children, he/she is saving the family, on average, over $100,000 per year. This is a significant amount of money, considering that with the stay-at-home parent, the work would likely have to be contracted out, which can be costly.

If/when a marriage ends in divorce, there is no real way to identify those savings. This can put the stay-at-home parent in a tough situation. With a prenup, both parties are protected.

As a final note, take time to ensure that your prenup is mutually beneficial. Ultimately, it should be a way to show that you and your spouse truly care about each other.  For more contact our law firm at [email protected]

Uncategorized
, ,
0
blank
Regular Post
Written by Canterbury Law Group

Rebuilding Credit After Bankruptcy

Your life doesn’t end when you file for bankruptcy. There are many positives to this, such as having unsecured credit card debt discharged. There are also some negatives, mainly a major blow to your credit score. It’s not impossible to improve a bad credit score once your bankruptcy lawsuit is final.

Here is the good news.  Once your bankruptcy case concludes, you should take a hard look at the current state of your finances. Even if the court discharged some debt, you may have to still repay secured loans under a new payment plan. There may be tax issues to discuss with your bankruptcy lawyer in Scottsdale. More importantly, you should focus on your current credit score. Here are several tips for bringing it back up to what it once was:

Don’t Make the Mistake of Avoiding Credit Cards

Once you have undergone one bankruptcy, it’s easy to think that you will never use another credit card again. But this is usually noted feasible. You will likely need a credit card to improve your credit score. Not having a credit card is similar to having bad credit. A credit score reflects your reliability as a borrower. You can earn it back by proving that you are a responsible borrower to the bank. Therefore, you should keep your credit card or open a new account. However, do make payments on time. Once you keep making payments over time, your credit score would naturally improve.

Focus on Your Credit Utilization Ratio

Credit utilization ratio (CUR) is sometimes called the balance-to-limit ratio. It refers to how much credit you use as opposed to how much is left unused at the end of the month. This little number plays a major role in how fast and effectively your credit score improves. If you have a high utilization rate, this would negatively affect your credit score. If you have a $1,000 limit on your credit card, and if you use all $1,000 to buy things each month, then your CUR would be extremely high, reflected in a bad credit score. Ideally, you should keep your CRU in the 50 to 60 percent range. For the aforementioned credit card, if you were to spend only $500 or $600 a month, you would have a roughly balanced ratio that would work to your advantage.

Pay Off Majority of Credit Card Balances Each Month

Pay at least 75 percent of credit card balances each month. Ideally, you should repay it all back. Maintain your CUR with payments on time. Keep in mind to never max out the credit limit.

Use a Secured Credit Card

A secured credit card is similar to a regular credit card, but there’s a cash collateral required to obtain one. You will receive one of these after making a security deposit. These cards are designed to help those with bad credit gain positive credit scores. Unlike with regular credit cards, banks typically make payment information about secured credit cards available to credit agencies without delay. Therefore, you can rebuild your credit faster with a secured credit card.

It’s also advisable not to borrow money, such as for a loan, until your credit score is at an ideal level. And don’t rush to increase your credit score either, as it can bac-kfire. Develop an actionable strategy that works best for you to gradually improve your credit score after bankruptcy.

Bankruptcy is a bridge to your new future.  Let Canterbury Law Group take you there and create your future!

bankruptcy, bankruptcy attorneys, Filing Bankruptcy in Scottsdale, Uncategorized
, , ,
0
blank
Regular Post
Written by Canterbury Law Group

Divorce and Taxes in Arizona

The tax season for 2018 starts on January 29. It can be a particularly stressful time, especially now that the national tax laws have changed. If you are in the middle of a divorce or have recently filed for a divorce, this season’s filings can be quite overwhelming. Here is what you should know about divorce and filing taxes in Arizona so that you don’t make a penalty-incurring mistake:

Divorce Attorney Fees are Not Tax Deductible in General

Clients in divorce cases often want to know if attorney fees are tax deductible. Typically, the answer is no. The IRS does allow a minor exception for divorce attorney fees paid during “collection or production of gross income.” This clause doesn’t cover a majority of fees you would pay a divorce attorney. But you can ask your divorce attorney in Scottsdale whether the fees you pay are tax deductible.

Your Filing Status Determines Tax Liabilities

When you file your IRS form, you are given three options to choose from as your civil status: married, single, or head of household. Tax liabilities for each category slightly differs, so the box you check matters a great deal for your individual tax obligations. If the divorce is not yet final, it can be difficult to determine whether to file as a single person or jointly with your soon-to-be-ex. You can consult with a lawyer to decide what to do. Or you could calculate what you owe under all three categories and determine which is most advantageous to you.

Spousal Support and Child Support are Distinct Categories

When filing your taxes, do not confuse alimony or spousal support with child support. Spousal support, which is sometimes referred to as alimony, is paid by one former spouse to another, for the benefit of the recipient. Child support, on the other hand, is paid to an adult who oversees the well-being of a child, but for the direct benefit of the child.

If you are a custodial parent recipient of child support, you don’t have to list it as taxable income. If you are the parent paying child support, you cannot obtain a tax deduction for the amount paid.

Spousal support works the other way. The individual who receives alimony payment must list it as taxable income. The paying spouse can obtain a tax deduction on the alimony payment. Note that the new GOP tax bill made an important change to this provision that will take effect on December 31, 2018. So it won’t affect this tax season but will start next year. Under the new law, alimony tax deduction is eliminated. The tax obligation is reversed. The spouse that pays the alimony will not be able to report a deduction, while the spouse that receives alimony no longer has to report it as taxable income.

Property Division may be Subject to Tax When Sold

When spouses divide property during a divorce, it is not a taxable act under the IRS Code. However, there’s a hidden clause called “tax basis” that might result in a tax payment. Tax basis is the purchase price of a property that is used to determine capital gains tax. Not all properties, such as a residence, incur capital gains tax following a divorce. However, certain property, such as investments, may incur capital gains tax when sold after a divorce.

For the most part, your divorce decree would determine how taxes should be paid for some property categories, such as IRAs.

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

Holidays and Parenting Time in Arizona

The end-of- the-year holiday season is typically the biggest time of the year for many families to get together. If the parents are divorced, the Christmas season could bring forth new disputes. It’s very important to protect children from any sort of drama during the holiday weeks, especially when they expect to spend their school vacation enjoying themselves. In Arizona, the divorce decree usually also includes a separate parenting time plan that lays out who time is shared over the holidays.

Holiday Parenting Time Under Arizona Law

The family courts in Arizona have a statutory requirement for divorcing couples with children to provide a holiday schedule. Under A.R.S. §25-403.02 (C), this plan must include a “practical schedule” for how parenting time is allocated during the holidays. There should be specifications for with whom the child would reside, how the child should be transported, and a reconciliation method in case disputes arise.

Parents should specifically arrange a parenting time plan for the year-end holidays. Unlike other vacation times, the November-December period involves many public holidays, seasonal celebrations, and family gatherings. The child might require transportation more so than during other long holidays like the summer vacation. It’s highly recommended that divorcing parents get family law help in Scottsdale to come up with a reasonable plan.

Organizing a Parenting Time Plan for the Holidays

Very generally speaking, parenting plans during the holidays can be developed in three primary ways. First, some parents agree to have the children for Christmas every other year. For example, mom could have the kids for Christmas and Thanksgiving during even years, and dad during the odd years. Some parents divide holiday time evenly during the day. For example, the kids would spend Christmas mornings with mom and the evenings with dad. Other parents designate certain holidays for themselves. For example, the kids may spend every Thanksgiving with mom and Christmas with dad.

Of course, parenting plans can be adjusted according to different religions and cultures. Adjustments can also be made depending on the vacation time the parent gets. However, it’s very important to have the holiday season planned ahead and in writing. The arrangements are ideally made months in advance unless it’s already specified during the finalization of the divorce. But practical concerns do arise every year, so ex-spouse’s with children should make arrangements early.

Be Specific with the Details

More importantly, divorcing parents must make sure the parenting plan is highly specific. For example, separating parents may decide to give mom the kids for Christmas during even years. But that’s a very basic provision. Is “Christmas” limited to just Christmas day? Will the children require transportation from parent to parent? On which day and at what time will the kids be dropped off and picked up again? These specifics should be handled in the parenting plan.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate, Parenting Coordinators, Parenting Coordinators in Arizona, Parenting Time, Parenting Time Different from Custody, Uncategorized
, , , , ,
0
blank
Regular Post
Written by Canterbury Law Group

The Truth about Holiday Season “Bad Credit” Loans

The holiday season is finally over. Among the flurry of deals and discounts consumers typically get when shopping, there are also seemingly lucrative deals for borrowing money. Most consumers use credit cards or otherwise borrow money to spend during the holidays, hoping to pay it all off next year. Not everyone gets their yearly bonus in advance. Arizonians and Americans, in general, have a very complicated relationship with debt. Consumers can be highly unrestrained when it comes to borrowing money. This is why most people still end up with so-called “bad credit” loans that they can’t pay off. Borrowing money when your credit score is already low can send you spiraling straight into a debt trap. Therefore, when you see advertisements for payday loans or bad credit loans, keep the following information in mind:

“Bad Credit” Loans May Come with Sky High-Interest Rates

These bad credit loans are a form of payday loans. Lenders that offer loans like this target borrowers who are ineligible for conventional loans because of existing debt. If a person’s credit score is low, it indicates prior debt problems, and possibly even personal bankruptcy. Legitimate lenders, like banks, do not typically allow people with bad credit to borrow more. Additionally, people with bad credit may have been maxed out of credit cards. So this group of borrowers is desperate and ripe for exploitation.

Loans for borrowers with bad credit are easy to get, but not so easy to pay off. These loans do not typically require collateral but come associated with sky-high interest rates akin to typical payday loans. Unless you pay off one of these loans right away, you may end up with serious debt next year.

What to Do When You Have Too Much Unsecured Debt

If you are nose-deep in debt because of unsecured loans, there are still positives to look forward to. These loans have no associated collateral, so you don’t have to worry about losing a house or a car. If the debt has piled up high and you can no longer afford to pay it all back, then you can consider filing for bankruptcy. Under Chapter 7 bankruptcy law, unsecured debt, including payday loans, can be discharged. Consult a bankruptcy attorney in Scottsdale to know if you are eligible for a Chapter 7 filing.

Bankruptcy is not the only option to consider. Debtors can negotiate with creditors to bring down the interest rate or pay only a part of the loan. If a creditor is verbally abusive towards you demanding payment, you can file a creditor harassment complaint. There are new protections for consumers against loan sharks who mislead borrowers about financial tools like bad credit or payday loans. In these situations, you can find debt relief with legal assistance.

Avoiding Bad Credit Loans in the New Year

You don’t have to file for bankruptcy or hire a lawyer if you are not in debt. Therefore, the best way to avoid being burdened by personal loans in 2018 is not to borrow them in the first place.

If the debt is an issue, don’t borrow more to finance more shopping or vacations. Save money instead. If you are in dire need of credit, consider obtaining a legitimate loan where the interest rate is not so high.

bankruptcy attorneys, Fighting a Bankruptcy Case, harassing debt collection, Uncategorized
0
blank
Regular Post
Written by Canterbury Law Group

Do I Become Ineligible for a Home Loan After Filing for Bankruptcy?

Filing for bankruptcy could affect your life in both positive and negative ways. The main negative in declaring bankruptcy is that the debtor’s credit score will take a major hit. While it’s very much possible to restore a bad credit score, many consumers do wonder what it means for immediate financial assistance requirements. For example, if you don’t own a home and have filed for bankruptcy, does that mean you are ineligible for a mortgage now and for how long?

The question is not easy to answer. Personal circumstances and specific situations can matter. It’s best to first get advice from a qualified bankruptcy lawyer in Scottsdale. However, consumers can also get a general idea of obtaining a home loan following bankruptcy by reading this article.

Qualifying for a Home Loan Following Bankruptcy

There are no legal barriers to qualifying for a home loan following a bankruptcy declaration. A lender cannot deny you a mortgage based solely on the fact that you have filed for bankruptcy once. Lenders will use other underwriting factors to determine your eligibility.

A consumer’s ability to get a home loan following bankruptcy is determined largely by the credit score, monthly income, down payment levels and the remaining savings. Keep in mind that mortgage lenders require a down payment on the loan. If you have no trouble paying for the down payment, then you can quite often also qualify for the loan. If not, you should at least be able to pay 20 percent of the down payment right away. The higher the down-payment one can offer a lender, the higher the chance that your mortgage loan will close and fund on the date of purchase.

How Bankruptcy Affects Credit Scores and Eligibility for Home Loans

You should expect your credit to plummet by at least 120 points if you file for bankruptcy. All of the credit monitoring companies scan the bankruptcy dockets every day to watch consumers.  After you are discharged from your bankruptcy case, you will need to soon start rebuilding credit to prevent going into the negatives. If you start repaying remaining debts that survived your bankruptcy, your credit score will rise without a problem. Rehabilitating credit in this manner is the best option you have for being qualified for a subsequent home loan. Even if your credit score is low, if you can show the lenders that it has been improving, then your mortgage application may receive more favorable treatment during the loan application process.

How to Improve Your Chances of Obtaining a Home Loan Following Bankruptcy

First of all, you should take steps to get your credit score back up. If you filed for Chapter 13 bankruptcy, sticking to the monthly court-approved payment plan should do it. Otherwise, you can get a credit card and make timely payments without missing a single payment due.  Pay on time, each and every month.

Start saving. You should certainly expect to spend some time-saving money before you can apply for a mortgage. Let your savings accumulate so you have enough to at least partially cover a down payment. The more savings you have, the better your application will look.   You can get friends or family to help you accumulate down payment funds as well, so long as they are willing to sign off and release those funds to you in writing.

Don’t forget to repay existing loans such as student loans, taxes owned, or child support. Always continue to timely pay your regular bills on time as well.

What matters is that you maintain a good financial profile by not falling back into the previous circumstances that caused you to file for bankruptcy.  Time is your friend.  After a bankruptcy, the longer you have come through and demonstrated a strong credit history and ability to pay—the mortgage lenders will start to consider you again for home mortgage loan qualifications.

bankruptcy, bankruptcy attorneys, personal bankruptcy attorneys, Scottsdale Bankruptcy Attorney, Scottsdale Bankruptcy Lawyer, Uncategorized
, ,
0
1 2