April 30, 2012 in Bankruptcy, Legal, Legal Articles by jferris

Art Collections Deserve Special Attention When Estate Planning

As the market has abused those with substantial real estate holdings or stock portfolios over the past several years, many who hold their wealth in art find that their collection has become a substantial part of their estate.

Sometimes, children want pieces of a collection, but many times they do not or they want pieces that have significantly different values.

Putting children in charge of selling an art collection that they did not collect and do not know much about can create problems for the estate. The children parsing a valuable art collection could be forced to spend time and money understanding the value of a collection that the collector should have documented and settled long before passing it along.

A conversation with an estate’s beneficiaries needs to be open and honest. Children and grandchildren who are not in a similar financial place as their parents may fear that inheriting a $2 million art collection will affect the amount of cash they inherit.

An important first step is to determine whether the beneficiaries want the collection at all. If the pieces are large or require extra insurance, they may be more of a burden on children or grandchildren. If each of the beneficiaries wants a smaller, less valuable piece, then the rest can be donated or sold upon the owner’s death. All of this can be arranged beforehand so that the beneficiaries understand what will happen and will be less likely to squabble over the details. They also will not be saddled with the financial responsibility of determining the value of the pieces and finding a company to auction them off.

Children also may be naturally drawn to art with drastically different values. Managing the difference is something that should happen early in the estate planning process.

It is almost always a bad idea to allow children to try and “share” a piece of art. Whether it is a valuable musical instrument or a statue or a painting, sharing valuables usually ends with strained relationships.

Collections that should stay together can be tricky to handle if there are multiple beneficiaries to consider. If it makes sense to keep the collection intact, then selling it intact may be the best option unless there is a beneficiary who wants to keep it and the rest of the estate can be balanced to make up for it.

Putting the art in a trust can be considered just like people do with real estate as long as everyone stars on the right side of the IRS.

Art can be a beautiful thing to pass from generation to generation. It can be a more contentious piece of the estate because there are values combines with emotions. People will get every bit as emotional about artwork that they will about a piece of property or a vintage automobile.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon estate planning lawyer, call 813.654.5777 or visit Brandonlawoffice.com.

April 16, 2012 in Bankruptcy, Legal Articles by jferris

E-filing is possible for Chapter 7 bankruptcy

In today’s high tech era, many people wonder if they may file for Chapter 7 bankruptcy electronically. Yes, they can.

It used to be that filing for a Chapter 7 bankruptcy was a very long process and considered to be expensive. The main reason it was expensive was the amount of running around the debtor had to do, making hundreds of photocopies of various documents and ensuring they were mailed to every creditor you owed money. For some, that was a long list and postage added to their expenses. While much of this running around still needs to be done, depending on the circumstances of the case, thanks to technology, debtors may file from home using their personal computer.

It should be understood that a Chapter 7 bankruptcy, also referred to as a liquidation bankruptcy, banishes most debts. For the exceptions, you would need to speak with an experienced Iowa bankruptcy lawyer. That out of the way, and knowing you are eligible to file, you may now electronically sign and file a Chapter 7 bankruptcy petition.

Following that, the process from start to eventual finish, is the same. Once the debtor had filed, all the applicant’s assets become the property of the bankruptcy estate, and a trustee is assigned to administer that estate and sell nonexempt property to pay unsecured creditors.

Many debtors wishing to file electronically ask the about the requirement that bankruptcy documents must be signed, and whether or not by filing via the Internet would be committing perjury. While the law does specifically state that each debtor must sign their petition, those filing electronically are assigned a login and unique password that becomes their signature. Your Iowa bankruptcy lawyer will also instruct you that if you efile, your documents need to have /s/ on them, followed by your typed name.

In the United States, efiling is done under the auspices of a program called the Case Management/Electronic Case Filing system. This system is under the purview of the federal judiciary, and using this system allows a debtor to submit just about every item they need relevant to their case 24/7.

Many debtors are concerned about the lack of privacy when it comes to filing a Chapter 7 bankruptcy, as once they do file it becomes a matter of public record. Anyone may access the online, signed forms through a system called the Public Access to Court Electronic Records (PACER). This is largely used as a search program, and debtors cannot file their bankruptcy documents this way. For more information on what this may mean to you, speak to a seasoned Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

April 15, 2012 in Bankruptcy, Legal Articles by jferris

Dealing with Veteran Benefits While Declaring Bankruptcy

Veterans facing bankruptcy typically ask if their benefits should be included on Schedule 1.

Schedule 1 is a form required by the bankruptcy court, and it is otherwise referred to as Current Income of Individual Debtor. If you are a veteran, and are filing for bankruptcy protection under Chapter 13 or Chapter 7, then this form must be included. If you have a spouse, there is a place for them to be added on the form. While these forms may seem complex, if they are discussed with a qualified Iowa bankruptcy lawyer, most of the questions would be clearly answered.

As with many rules and regulations, there are some exemptions to this rule. In this instance, there are certain items that are considered to be exempt from liquidation under a Chapter 7 bankruptcy. Those exemptions include alimony, child support, Social Security, unemployment and veteran’s benefits. Even though the veteran’s benefits are exempt, they are still used to calculate a debtor’s financial situation.

For example, if a veteran is getting regular wages, those need to be listed in Schedule I as the gross amount along with any overtime. Any payroll deductions must be taken off wages for the net take home pay. For items 7 to 13, if the veteran debtor has other forms of income, these must be listed. Section 11 would be the area in which to include veteran’s benefits, on the line that asks for ‘Other Monthly Income.’

If a veteran is in a situation where Veteran’s Affairs is only paying them benefits temporarily for a disability, such as an illness that they will recover from, they need to know when the payments end within the year. Then, they would fill in line 17 on Schedule 1 outlining the reasons the benefit is temporary. Again, theses forms can be filled out with the help of an Iowa bankruptcy lawyer.

While filling out all the forms may seem unnecessary, they are required in order to match them up with the means test that all debtors must go through to determine their eligibility for filing bankruptcy under Chapter 7 or Chapter 13. There is always the possibility that an applicant does not qualify, and this is something that can be figured out with the assistance of a skilled Iowa bankruptcy lawyer. For those that do not qualify for Chapter 13, they may instead, be eligible for Chapter 7. It all depends on the means test and the corollary information filed to initiate the process of seeking bankruptcy protection.

Although Schedule I is used for both Chapter 7 and Chapter 13, the Chapter 13 forms will demonstrate to the trustee how much money is being earned in the household. This, when paired with Schedule J listing debtor’s expenses, will show if there is enough income to pay back some of the debt or not.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

March 22, 2012 in Bankruptcy, Legal, Legal Articles by jferris

Estate Planners Must Understand Online Assets

A significant part of estate planning in the 21st Century is managing digital information. In the old days, estate planners could go through the paperwork on somebody’s desk upon their death or simply wait for the mail to bring all of the final statements.

Those days have passed. Many people planning their estates today keep track of more accounts digitally than they do with paper. This means people planning their estates must provide passwords and a thorough list of all digital assets.

Passwords can be tricky. Most professional estate planners do not want to be responsible for the passwords of the living. If someone hacked into a client’s account, there would be no way to prove where the hacker got the information. Some estate planning attorneys suggest keeping a list of digital accounts and the passwords to those accounts in a home safe or a safe deposit box. If the passwords change, then it is imperative to change the notes stored in the safe.

The range of information stored digitally will continue to grow. From professional photographs and manuscripts to domain names and other online documents, people have a great number of assets stored electronically now. Managing that information is important so that value and wealth is not lost.

An estate planner needs a comprehensive list of assets and liabilities stored digitally because he or she will need to know what potential value and liability exists and where it is. A fiduciary will need the correct power of attorney to administer the estate and find the passwords to access the digital information.

Estate planners look at passwords as keys. For example, they do not need the keys to a client’s car in order to execute a will, but they need to know where the keys are kept.

Many times, survivors are unaware of the assets and liabilities stored in the computer of the deceased. Trade secrets or other sensitive information could be left on a computer and donated. If that computer is compromised, then the estate could be liable for the information left on the computer. Likewise, a survivor might not know about domain names registered by the deceased that would be instantly valuable to a buyer.

People putting together an estate plan must disclose the estimated value of the information they have stored digitally. Estate planners may not know what to look for if the client does not outline all of the assets. This will help the fiduciary manage the estate accurately.

It is important to hire an attorney with estate planning experience. Today’s tech-savvy clients should look for estate planning attorneys who understand the challenges to planning in a digital world.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

March 21, 2012 in Bankruptcy, Legal, Legal Articles by jferris

Florida Courts Dump Struggling Foreclosure Mediation Program

Florida’s statewide mediation program for residential foreclosure cases did not survive 2011. In less than three years, the program that some hoped would address the crushing number of foreclosures in the state produced a dismal record of helping people or solving problems.

In dumping the program, Florida Supreme Court Justice Charles Canady wrote, “The Court has reviewed the reports on the program and determined it cannot justify continuation of the program.”

A statewide report produced in January 2011 showed barely six percent of homeowners engaged in the mediation program were able to resolve their mortgage problems, according to the Palm Beach Post. The state study revealed that mediators were able to contact borrowers referred to them by the courts less than half of the time. Among those contacted, barely a third bothered to come in for a session.

There are 20 Circuit Courts in the state. Only seven of those courts were included in the report. Some had not been using the program long enough to have results that could be studied.

Mediation experts told the Palm Beach Post that many borrowers may have ignored the solicitation from court mediators because they already had a deal worked out with their lender. Other borrowers may not have replied because they were simply overwhelmed with letters and phone calls or they left town.

The mediation was paid for by the banks at $750 per case, but the borrower had to take foreclosure counseling and divulge all of their financial information. That proved to be a stumbling block for the program because many borrowers did not want the bank to know that much about their finances, according to the story in the Palm Beach Post.

Possible settlements through mediation included short sale, deed-in-lieu of foreclosure or, in a best-case scenario, a loan modification. By most accounts, the program failed to provide financial relief to homeowners and it struggled to move logjammed foreclosure cases through the system.

The chief justice’s order included a reiteration that the court’s job is “prompt and efficient administration of justice.” To that end, the order included language that said Circuit Court judges must “…adopt or employ any measures permitted by statute or court rule to manage pending and new residential mortgage foreclosure cases, including referral of cases to mediation on a case-by-case basis.”

The fate of the short-lived program had been known for months. According to the Miami Herald, a task force of judges recommended ending the program in October because of its poor success rate.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

March 13, 2012 in Bankruptcy, Legal, Legal Articles by jferris

The Process of Adding Medical Bills After Filing Bankruptcy

Sometimes life happens, and after a debtor files bankruptcy they get injured and run up medical bills. Can they add those bills to their bankruptcy filing?

This is a good question, and the answer is that it would depend on what kind of bankruptcy is filed. There are two commonly filed bankruptcies, Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is usually the quickest and easiest form of bankruptcy. A Chapter 13, also called the wage earners plan, lets a debtor with a regular paycheck create a repayment plan to get rid of part of or all of their debts during a three to five year period.

In the case of a Chapter 7 bankruptcy, if medical care was provided before the debtor filed, those debts are considered to be a part of the bankruptcy process. In that case, they would be discharged. On the other hand, if the medical care was rendered after a Chapter 7 bankruptcy is filed, that debt is not a part of the proceeding. This means the debtor would have to pay the bill on their own.

No one can predict when they are going to be hurt and need to go to the hospital or need on-going medical care. Unexpected bills happen to everyone from time to time. This means you need to move forward with caution when filing. After you have filed a Chapter 7, you must wait eight years before filing another Chapter 7. If you are unable to or do not want to pay medical creditors, they have the option to pursue filing a lawsuit against you. If they are successful, they may be able to foreclose on your property, attach liens, garnish wages or seize assets.

In a Chapter 13 bankruptcy, your disposal income is a part of the process of bankruptcy, and it is used to make monthly payments in accordance with the repayment plan you submitted to the courts. In other words, it is an ongoing plan, and that means you may amend the schedule as you move forward to include medical debts. They are prioritized and added in to the order of payments. Any unpaid, unsecured debt, such as medical bills may be discharged.

Even though it is possible to add medical debt repayment to a Chapter 13, there are other consequences. The biggest one is the added expense you face to try and meet your debt repayment plan. If you are unable to pay, or miss payments, the plan may be dismissed. This would put you right back where you started from in the first place.

There are exceptions to be considered in either instance, and it is wise to contact a qualified Iowa bankruptcy lawyer and find out what options are open to you in your particular case.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

March 12, 2012 in Bankruptcy, Legal, Legal Articles by jferris

Debt Reduction Companies May Be Helpful But Beware of the Terms

While debt reduction companies sound like a good idea, most of them are not.

There are a number of debt reduction companies in the marketplace that say they can negotiate you a lower interest rate, cut what you owe by at least 50 percent and not affect your credit rating. It does sound good. However, these agencies often do not deliver what they promise, and there is a difference between bankruptcy and debt reduction.

For those individuals who owe more than they can pay, finding help through a debt reduction company or declaring bankruptcy are two of the leading options available to them. However, it is wise to know the differences before you proceed. Bankruptcy is a legal option that lets debtors either eliminate all or most of their debts via filing a Chapter 7 or Chapter 13 bankruptcy. Typically Chapter 7 clears all debts. Chapter 13 is a renegotiated debt with a more affordable payment.

Each state has different bankruptcy laws, and so it is wise to speak with an Iowa bankruptcy lawyer to understand what your options are in Iowa. During that discussion, you will find out if bankruptcy will help you with your particular circumstances. While declaring bankruptcy does provide financial relief, there are consequences. The biggest one is the reduction of your credit score that remains on your record for up to ten years.

If you are considering debt reduction, also referred to as consolidation, with a company that says it can help you, you will discover they help by combining all your payments into one payment a month, usually lower than what you currently pay. This sounds good. However, most of these types of companies do not have a debtor’s best interests at heart. Their main goal seems to be scaring the debtor into using their services by telling them how bad their credit report will be, which is a given, even if you declare bankruptcy. This is not news.

Most of these companies are able to come up with a lower monthly total, because it is spread out over a much longer period of time. This means you will pay quite a lot more to retire your debt. While this option might suit you, and you may not mind paying back more over a longer period of time, it is wise to consider both bankruptcy and debt reduction before making any final decisions. If you are not certain which route to take, consider speaking with a qualified Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

February 28, 2012 in Bankruptcy, Legal Articles by jferris

Bankruptcy Discharge Papers are a Welcome Relief

Bankruptcy papers are welcomed by debtors who have been through the process of filing bankruptcy.

Bankruptcy discharge papers may not look that important, but they are official, and tell the debtor they have finished the process of discharging their debts. For a debtor that has gone through many months of filing papers, creating repayment plans, discussing their situation with a skilled Iowa bankruptcy lawyer, attending credit counseling and coping with the stress, seeing these papers in the mail is a welcome relief. The papers signal the beginning of a new financial chapter for the debtor.

Many debtors wonder why the discharge papers are so important. They are important because they legally release the debtor from paying most of their debts. There are some debts that are not discharged in a bankruptcy, and this is a discussion to have with an Iowa bankruptcy lawyer at the beginning of the process prior to filing.

The discharge papers also ban creditors from attempting to collect on any of the successfully discharged debts. There have been cases where a creditor has attempted to do that, without success, as they are in violation of the law. With these discharge papers, the debtor can be reassured they will no longer get phone calls, letters or have to worry about garnishment. Once the bankruptcy discharge papers arrive, the debt is history. A debtor can expect, though that the record of the bankruptcy will appear on their credit report for a number of years.

Many people are not certain how long it takes after a person files a Chapter 7 bankruptcy before they get their discharge papers. In most instances, the length of time is roughly four months. There may be circumstances that delay the papers being sent, which is an issue that also needs to be discussed with an experienced Iowa bankruptcy attorney. It is better to have as much information as possible about the process of filing bankruptcy, rather than find out about a delay later.

On discharge, it is a good idea to make copies of the official notice. These may be required if you are attempting to correct any mistakes/omissions on your credit report. It also serves as proof to creditors that your debt has been discharged and that they must cease trying to collect on it. If you lose your original copy, you may obtain one from the court. Often the lawyer hired to file your bankruptcy may retain a copy on his files too.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

February 27, 2012 in Bankruptcy, Legal Articles by jferris

Six Types of Bankruptcy to Resolve Indebtedness

Under the U.S. Bankruptcy Code there are six types of bankruptcy. They may be found under Title 11.

For those facing the possibility of bankruptcy, it may help to know that there are six types that may be considered. The common types are Chapter 7, Chapter 11 and Chapter 13. The others are Chapter 12, Chapter 9 and Chapter 15. The last three types of bankruptcy are rarely filed.

Chapter 7 often involves liquidation, and businesses or individuals may file for this type of bankruptcy. To do so, the debtor needs to meet a means test to determine if they are eligible to file. Under a Chapter 7 filing, there is a court-appointed trustee/administrator that takes possession of non-exempt assets, and liquidates them. The proceeds of the liquidation sale are used to pay creditors.

A discharge under Chapter 7 typically happens within a few months after the initial petition is filed. There are a high percentage of Chapter 7 bankruptcies where all assets are secured and/or exempt. If that is the case, the file is closed, which means that no property was sold and therefore, there was no money to give to creditors. This is a situation that needs to be discussed with a competent Iowa bankruptcy lawyer.

For people that have a regular income, or for those who do not qualify for Chapter 7, Chapter 13 may be a good option. In this type of bankruptcy, the debtor creates a plan to repay their debts, typically over a three to five year time span. The plan must be approved by the Court. With a Chapter 13 bankruptcy filing, the individual often retains their assets and makes payments under the proposed plan to the trustee. The trustee pays the creditors.

While the debtor is paying off their debt under a Chapter 13 bankruptcy, they are protected from any creditor actions, garnishments and/or lawsuits. In order to have a Chapter 13 bankruptcy discharged, all payments under the plan must be made.

A Chapter 11 bankruptcy is considered to be a reorganization, and is often used by businesses that wish to stay in operation as they are paying creditors under the auspices of a court-approved reorganization plan. Once the plan has been approved by the court, the debtor begins to repay a portion of their debts, while discharging others.

With an approved plan in place, the debtor may revamp/reorganize their business and take action to terminate contracts or other leases and begin to recover assets. In doing so, they should become more profitable and be able to stay in business.

Chapter 12 bankruptcies deal with debt relief for family fishermen and farmers who have a regular income. In many respects, Chapter 12 is similar to a Chapter 13 bankruptcy. During the course of a Chapter 12 bankruptcy, the business person continues to run their operation, and makes payments according to a court-approved repayment plan that usually spans a three to five year period. Again, a bankruptcy trustee takes the money and disburses it to creditors.

Chapter 9 is similar in nature to Chapter 11. However, the debtor is typically a municipality. For example, school districts, villages, counties, towns and cities may file under this Chapter.
Chapter 15 is the newest type of bankruptcy, and was added to the Bankruptcy Code after the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (2005). Chapter 15 deals with cross-border bankruptcy, which means debtors and/or their property, are subject to U.S. laws and the laws or one or more foreign countries.

If you are not certain what type of bankruptcy you qualify for, discuss this with an experienced Iowa bankruptcy lawyer. It is their job to stay on top of the latest changes in bankruptcy law.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

January 26, 2012 in Bankruptcy, Legal, Legal Articles by jferris

Chapter 13 Bankruptcy Payments Are Meant to Allow For Reasonable Expenses

Although you could roughly guess what Chapter 13 bankruptcy payments may be, it is best to discuss this with a competent Iowa bankruptcy lawyer to get it right.

In a nutshell, Chapter 13 bankruptcy payments are figured out in such a way as to allow normal family and household expenses. While it might sound fairly straightforward it is not always that way, which is why it is best to work with an Iowa bankruptcy lawyer.

Chapter 13 repayments are not just based on a math calculation. Instead, they are based on what is a reasonable assumption of what you are able to pay back to your creditors and still keep up with your normal household and family expenses.

Your Chapter 13 repayment plan is typically submitted with your petition to the U.S. Bankruptcy Court, and it is put together by you and your Iowa bankruptcy lawyer. By and large, it is drafted with an eye on various factors such as your income and the existing means test in your state. The means test is the figure that measures your income against the average income for your state.

Assets you have in your possession are also a part of the calculations. Once the lawyer has worked with you to figure out what you own, he is able to determine which assets are exempt and which are not. Put another way, bankruptcy law says unsecured creditors get at least as much as they would if your non-exempt assets were sold.

To roughly calculate what you would be paying, you use your monthly net earnings as a starting point, which is your after tax income, less deductions for things like pensions or health insurance. These are balanced against your living expenses (mortgage, rent, car payments, insurance, utilities, clothing, food) and other costs associated with daily living.

What many people do not realize is that credit card payments, and other unsecured debts are not rolled into the calculation largely because they get paid, in part or fully, once the bankruptcy repayment plan is in place. Late fees and interest on overdue accounts is often waived in Chapter 13 plans. However, in order to find out what you will and will not be paying, the details need to be worked out with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.