Category: Legal

The latest legal news, and informative guides on everything legal, from legal advice for Personal Injury to how to apply for Social Security Disability Benefits.

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Bankruptcy Business Career & Education Legal

How Can Bankruptcy Help My Business?

How Can Bankruptcy Help My Business?

Sometimes running a business means making some tough choices. One of those potentially incredibly difficult choices is whether or not to file for bankruptcy protection. It can feel daunting, but you need to remember the laws surrounding bankruptcy. They were created specifically to protect entrepreneurs, businesses, and those who operate businesses.

Just because you are filing bankruptcy doesn’t mean that your business is going to be confiscated, liquidated, and eliminated. There are some types of filings that will offer protection to the business. This will allow them to continue their operations while solving some of their seemingly insurmountable debt problems.

This is the case with many larger companies that comprise significant portions of industries, like airlines and large banks. Businesses like this, and many others, will often use a bankruptcy filing as a strategic maneuver. These business use it to reduce or eliminate debt, while legitimately restructuring their business. This can result in a more efficient business operation overall. This will lead to an increase in profitability even without new revenue streams.

The Types Of Bankruptcy Filings

There are three main types of bankruptcy that may be applicable to your business. They are chapter 7, chapter 11, and chapter 13. Make sure that before you make any decisions, you speak with the legal counsel for your business.

If you do not have legal counsel, it may be worth it to pay for an evaluation or a la carte bankruptcy preparation from a local bankruptcy lawyer. Let’s take a look at each type of filing, and what it might entail for your business.

Chapter 7

Chapter 7 bankruptcy consists of having a court-appointed agent, called a trustee. They will sell your assets and use the proceeds to pay your creditors. By filing for chapter 7, the structure of your business will determine if you will be able to keep it operational. Sole proprietorships may benefit the most here, while legally separate entities like LLCs or corporations may want to file on behalf of the business.

Chapter 11

Chapter 11 is where your business will be allowed to keep its assets while setting up and maintaining a repayment plan with all of the creditors. These can be notoriously complex, but filing for chapter 11 is the only way to let corporations, LLCs, and even partnerships reorganize and continue their business operations. Filing Chapter 11 may also let sole proprietors restructure and continue operations, but do not meet the debt limits for Chapter 13.

Chapter 13 Bankruptcy

Chapter 13 filings are only available to businesses that are owned and operated by sole proprietors. With this filing, the business gets to keep all of its assets and is assigned a repayment plan with its creditors. There are some stringent debt limits that apply for those seeking Chapter 13 protection. However, using Chapter 13 as part of your business bankruptcy strategy can let sole proprietors include business debt as well as personal debt. This makes it a great option.

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Legal Personal Injury

How Much Does a Car Accident Lawyer Cost?

How Much Does a Car Accident Lawyer Cost?

The cost for hiring a lawyer after a car accident can vary based on the accident and the injuries you received. However, unlike other attorneys, they do not usually charge hourly. You will probably pay some fees and not be liable for the attorney fees if your lawyer does not win your case.

Lawyer Contingency Percentage

This will be the main part of what you will pay a personal injury lawyer after being in a car accident. It is usually about 25-40% of the money you receive in compensation. Most will charge you one-third, so be prepared to not take home the whole amount of the money you recover.

Make sure you review the contingency fee with the lawyer and ensure you understand the rules behind it before you sign anything.  Always ask them to explain it to you if you don’t understand it.

Contingency fees will vary based on the lawyer and your personal injury case. You will usually pay a higher fee if you have to have a trial by jury. If the settlement is met quickly, you will probably owe less of a contingency fee.

Contingency fees can also be negotiable, so always discuss with your lawyer what they expect and what you think is fair.

Other Fees and Expenses

Most personal injury lawyers do not charge upfront litigation expenses or court fees. They will usually pay the costs for medical records, police reports, court reporter fees, and expert witness fees. If they win your case, you will have to reimburse them for all these costs.

Some personal injury lawyers though will make you pay these fees as they become due. They will usually send you a statement weekly or monthly to say the money they’ve spent and expect you to pay them the money when you receive the statement. These fees will need to be paid before they will advance with your case.

If you are using a large firm, they are more likely to pay these fees for you upfront. Smaller firms or family firms will need the money sooner because they won’t have enough to upfront the costs.

All the fees will automatically be taken out of your settlement amount, so always keep a record of all fees so you can double-check to make sure they’re correct.

Other Fees

Some lawyers will not have a pure contingency fee even though this is the most common way for personal injury attorneys to charge their fees. You might have an attorney that charges a retainer fee instead. They will then end with a contingency fee based on your settlement and how much item they put into the case.

Overall, there will not just be a flat fee for getting a personal injury lawyer. It will depend on the records and paperwork they need for the case. It will also depend on your settlement number and if the case will go to trial. Make sure to review all fees and percentages with your lawyer.

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Bankruptcy Legal

What Bankruptcy Can and Cannot Do

What Bankruptcy Can and Cannot Do

You’ve pulled the plug and filled for bankruptcy, attempting to overcome the massive debts placed on you. Still, even bankruptcy has its limits, and you need to figure out what you can and cannot do. Using bankruptcy to combat your debt can work, especially if you are besieged by collection calls and lawsuits.

There are two common chapters of bankruptcy. Chapter 7 allows you to liquidate some of your property or assets to gain some cash. Chapter 13 puts you on a payment plan to make sure that the debts can be paid over a few years. Each plan has different benefits for you, and here’s what filing for bankruptcy can mean for you.

What Does Bankruptcy Do?

Bankruptcy can stop collection calls, garnished wages, and lawsuits. It can also stop various types of debt, with some exceptions. While credit card debt, medical bills, and personal loans can all be stopped, you will still need to pay some debts regardless of the plan you pick.

You can file Chapter 7 or Chapter 13 bankruptcy, and they will help you wipe out your debt. Even with different benefits and drawbacks, the most important thing to know is that they give you all the tools to manage your debt.

Bankruptcy also stops the harassment from creditors using an ‘automatic stay’ put in place by the court. This stops creditors from coming after you and puts a freeze on lawsuits and wage loss. It can also temporarily freeze an eviction, repossession, or foreclosure on a piece of property.

Depending on which chapter you get, you can either create a payment plan to handle the debt. You can also liquidate some of the assets. Either way, you’ll be able to pay off the frozen loans and potentially remain in the house without an eviction.

What Can’t It Do?

Bankruptcy, as powerful as it is, is not a cure all for your debt woes. For starters you will need to pay required payments such as child support and alimony, and you won’t be able to stop the foreclosure of a property that you cannot reasonably afford. The creditor can still take a lien where they can sell the property at auction and that money goes towards your loans.

Student loans also can’t be eliminated unless you can prove that you will have ‘undue hardship’ by repaying them. It’s a tough standard to be qualified for, and you will need to prove that you can’t pay for your loans now or in the future.

Tax debts and other nondischargeable debts cannot be paid off as well, and they will either stay with you or you will pay them in full through the repayment plan. This depends on which chapter you file for.

Bankruptcy is a powerful tool, but it does have its limits for your business. Make sure to talk to an expert before filing, and you will be able to get a clear picture of how bankruptcy can help you.

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Bankruptcy Legal

Bankruptcy: Chapter 7 & Chapter 13

Bankruptcy: Chapter 7 & Chapter 13

Whenever you need to file for bankruptcy, it can be a terrifying experience for you. Not only do you need to go through the stress and frustration of the ordeal, but you also need to do it right. There are several different types of bankruptcy, and two of the major types are Chapter 7 and Chapter 13.

These legal options for your bankruptcy are both able to take on your debt, but both of them have consequences for you. It’s important to understand them before you take steps into filing for bankruptcy. Each one has it’s benefits and drawbacks, as well as long term effects on your life. Make sure to keep all of that in mind as you examine the options.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is called liquidation. It helps you by having you surrender some property or assets that can be turned into money. If you have no disposable income on hand to handle this massive debt, then you can file chapter 7. If your debt is discharged by chapter 7 bankruptcy, then you don’t have to pay that debt back. The money can then go somewhere else, and most debts can be discharged with few exceptions.

Filling can also increase the speed at which you overcome your debts, and can also stop debt collectors from taking action against you. That is very appreciated for people who are debt ridden, and it only takes around 100 days to finish. Your assets and credit will take a hit, but you will be debt free.

What Is Chapter 13 Bankruptcy?

If you want to file your debt but wish to keep your property, then you can file for chapter 13. If you have disposable income on hand, then this is right for you. It will stop any foreclosure processes on your home, and will allow you to get a handle on your mortgage payments. It also stops your debts from being collected if they are discharged under chapter 13.

Chapter 13 also allows you to make consolidated monthly payments with a solid 3 to 5 year plan. You will know exactly what to pay, and when you need to pay it. It is not as fast as chapter 7 bankruptcy, and can strain your budget. However, if you can keep up with the plan, you will be able to keep your property throughout the process.

Picking The Right One

If you are still undecided about which one is the best for you, then you should try to talk to a lawyer and see if they can help you make your choice. They will have your best interests at heart and will be able to answer any questions that you have. Filing for bankruptcy is something that is tough for every single small business owner, but you need to make sure that you are completing the process. By examining your situation before you start the filling process, then you can make the best decision.

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Bankruptcy Legal

Bankruptcy: What Are Your Alternatives?

Alternatives to Filing For Bankruptcy

Bankruptcy can be a trying time for any business, and you need to make sure that you keep a calm center amid all the turmoil. Debt, creditor harassment, and stress, can cause you to make rash decisions in the heat of the moment. One of those decisions is thinking that bankruptcy is the only option.

There are some alternatives to filing chapter 7 and chapter 13 bankruptcy, and some of them might be much better for you. They also all have a specific goal in mind.

Stop Debt Creditor Harassment

The phone calls, the emails, the lost wages… having creditors harass you is the worst, and can get very frustrating whenever you are already dealing with so much. If you want to stop the harassment, you don’t need to file for bankruptcy, and instead you can look into state and federal debt protection laws.

These laws protect you from abusive debt collector conduct, and you can easily bring them into play whenever you feel like the collectors are crossing the line.

You might even be able to negotiate with your creditors to get them off your back. You can offer up income or assets for sale, and can give you time to get back on your feet. Sometimes you can even settle your debt for less than you owe with this method, however it is still a good idea to have a lawyer on your side.

Talk To A Counseling Agency

A credit counseling agency can help you with the negotiation process by helping you repay your debts. They will negotiate on your behalf, and give you information about how you can improve your financial strategy. The agency will work with you to create a plan, and this plan allows you to repay your loans over time.

This allows you to pay off your debts over a period of time, without having ‘filed for Chapter 13 bankruptcy’ on your record. There are a few risks, but it can be an alternative in a pinch.

Instead of Filing For Bankruptcy, Do Nothing

If you physically cannot pay your debts, a good option is just to not pay them. If you are scraping the bottom of the barrel and are unable to make money in the future, then people might not be able to sue you for your debt. There’s nothing for them to take if they do. Unless you default on child support or government taxes, you can’t be arrested for not paying.

Plus, the basic essentials can’t be taken away from you by law, so while it won’t be a comfortable debt free life, it will be a life you can live.

Figuring Out Your Next Steps

Before you take on an alternative to bankruptcy, you need to talk to an expert. Alternatives aren’t always the best solutions, so make sure that you have a plan to avoid bankruptcy while still paying for your debt. You’ll be able to get out from under the weight of your debt soon enough, and then you can get back to living life.

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Bankruptcy Credit Financial Legal

How to Rebuild Credit After Bankruptcy

How to Rebuild Credit After Bankruptcy

Deciding to declare bankruptcy is never an easy choice. It is painful, nerve-wracking, and embarrassing. However, it is ultimately the right choice for millions of people. Why should you declare bankruptcy? There are multiple reasons why it might be the right approach for someone suffering from financial woes. But the biggest reason why someone should declare bankruptcy is because it ends the impossible task of paying off debts you cannot overcome.

In many ways, bankruptcy is giving you a clean slate with your finances and the ability to finally start rebuilding and stop beating back against an endless tide of financial stress. But it can cause a huge hit to your credit. Make no mistake, declaring bankruptcy is one of the worst things you can do for your credit score. However, rebuilding that score isn’t impossible after bankruptcy. There are ways to come back from bankruptcy and have a good credit score again.

Invest in a Credit Product

Have you ever heard of a secured loan or secured credit card? These are just two tools that can greatly help your credit after you declare bankruptcy. These cards and services will slowly build your credit back up. With the secured credit card, you put a deposit into the card and then use it like you would a credit card. It’s your money but you are helping your credit score by spending it. While these cards can be super helpful, they also carry a high interest rate too so be forewarned and be prepared to use the secured credit card for the near future but only the near future.

Practice Good Credit Habits

Once you do land a credit card, secured or not, you need to be extra careful when spending and paying it back. Now is your chance to have good credit habits. The best piece of advice to follow with your new credit card? Pay on time! Don’t spend too much credit, do not overspend and use money you don’t have. Look at these cards as a tools to rebuild credit, not as a way to live lavishly.

Have a Co-Signer Get You a Card or Loan

A co-signer is a great way to get yourself a credit card or loan after you have declared bankruptcy. They will sign off on you and help you get the card of loan and put themselves on the line. That is a big risk they are taking but if you are really serious about staying on top of your finances, it is a choice that will help you and not hurt them in the slightest. Make sure your co-signer is someone you can trust and someone who can trust you. Perhaps a family member or life long friend. A co-signer is a great way to get a new card or loan and that is a major step to starting to rebuild your credit. Once you have secured your card or loan because of the co-signer, make them proud by paying it back on time and show them that you were an investment worth making.

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Bankruptcy Debt Financial Legal

Can I File For Bankruptcy Online in 2021?

Can I File For Bankruptcy Online in 2021?

The internet is the height of convenience. Despite all the complaints we might have about technology, one thing we can admit is that being able to handle all of your expenses from the comfort of your desk is no small luxury. But can you make a big financial like bankruptcy online? Is it possible to file for bankruptcy over the internet?

In this article, we’ll discuss what your options are when considering whether or not you can file for bankruptcy online. By the time we’re done, you’ll hopefully have all the info you need to make the right call.

Can You File For Bankruptcy Online?

For the most part you can file for bankruptcy online. There are a few caveats, as there are with really any big decision, but you likely won’t have trouble finding ways to make such a difficult decision with at least a little bit of comfort and confidence.

With your computer, you can do a number of things related to bankruptcy. For one, you can, in fact, receive bankruptcy filing forms and any local documentation relating to your application for bankruptcy. This takes a lot of the stress of gathering documents and filing papers out of the task.

You will also be notified about the progress of your bankruptcy case over the internet. Your bankruptcy court will send you email updates stating the important facts of your bankruptcy case. This will help you track your financial situation and get a hold on where you are.

After your bankruptcy is filed, you may also be able to check on how your repayment plan through the internet. While this feels more like a chore than a privilege, it will help in the necessary budgeting process that will come during your recovery phase.

You Cannot Do the Actual Filing

Unfortunately, most of us will have to do the actual, physical filing part of filing for bankruptcy in an actual, physical setting.

There may, however, be places where the filing process can be done completely online. This will depend on the district your filing in and the rules and regulations it has decided upon in the past.

If you’re unsure of the rules in your district, it might be good to consult a financial professional. The may be able to help you jump through all the hoops when filing bankruptcy and advise you on recovery afterwards.

Trustees also might not be so hospitable to the idea of going paperless. While many districts have discussed moving in a more electronic direction, the trust that floats around the idea of the hard copy filing process is just too big to overcome for most trustees. This is why hard copies may still be required here.

Any fees related to court filing are also usually not offered on an online basis.

Thus, there’s a lot of the process you can do online, and a lot that you can’t. You will be able to do a lot of the filing documents electronically, but submitting them and onward will be a physical process.

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Bankruptcy Legal

Bankruptcy: The Ultimate Guide

The Ultimate Guide to Bankruptcy

When disaster strikes and you suddenly find yourself unable to meet your financial obligations, there may be ways to alleviate some of the pain. Of course, they won’t be painless in themselves, but they might just be a better decision than choosing to trudge onward with your current obligations. Bankruptcy is one of those ways.

Bankruptcy is a way for people who can’t meet their obligations to start to dig themselves out of the circumstances they find themselves in. It’s not a beneficial move in itself, and it certainly won’t feel good, but plenty of people find it to be their next best option.

So, how do you go about filing bankruptcy? When should you do it? In this article, we’ll talk all about how you should approach bankruptcy- a difficult topic indeed.

When to File

If you’re considering bankruptcy, but don’t know if your circumstances are dire enough to file, consider just a few recommendations.

Those considering bankruptcy should be unable to mee their financial obligations. When you can’t meet your debt, you may start to fall behind. This could put you in a hole you might not be able to find a way out of.

Some of these debts might be unsecured debts, which may mean that your home is in danger. Bankruptcy may help you maintain the equity you have placed in your home.

Bankruptcy is for times when finances go into a tailspin. If you see any semblance of a way out, it might not be so good to go the bankruptcy route. Keep in mind- many times average people’s judgements aren’t so finely tuned for financial matters. You should consult a professional if your circumstances are in such dire straits.

Possible Penalties

Unfortunately, the penalties for bankruptcy are significant, and should be considered closely before any commitment is made. Bankruptcy is not a thing you enter into lightly.

If you declare bankruptcy, that stain with stick with you for at least a good ten years- or one eighth of the average person’s entire life! The information on your bankruptcy will go to credit bureaus and will be taken into account for future dealings.

Not only will your bankruptcy reflect in your credit score when you attempt to pick up new debt, but you will also not be able to file bankruptcy for another 8 years. This means that whatever deals you make, you’re going to be stuck with.

Recovering From Bankruptcy

If you’ve had to file bankruptcy and suffer the penalties, there are ways to recover. For one, make sure you listen to any advice you receive in credit counseling sessions. These institutions are in place for a reason, and you can learn a lot about getting back on your feet.

You should also get your financial life in line. It’s a hard pill to swallow, but going credit-free and establishing money management strategies will put you far ahead of the game and could even put you on the path to as much of a financial recovery as you can make.

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Bankruptcy Legal

Why Should I Hire a Bankruptcy Lawyer?

Why Should I Hire a Bankruptcy Lawyer?

When you’re facing bankruptcy, you’re likely going to have more than a few doubts about the situation. How do you do it? Are there any other options? Is it just a matter of filing and getting on with life, or is the process continual?

But for all of your doubts, you still might be on the fence about getting a bankruptcy lawyer. This is understandable, especially considering the reputation lawyers usually have for being expensive. In a time like this, you’re going to want to pinch all the pennies you can. But can you really afford to skimp here?

In this article, we’ll talk all about what kinds of benefits may compel you to hire a bankruptcy lawyer, as well as what kind of investment a bankruptcy lawyer is and why it might just pay off in the long run.

Think About Your Options

The funny thing about considering bankruptcy is that about 50% of the process is about considering other options. Bankruptcy is a big- no- possibly the biggest financial decision a person can make, and people make it pretty regularly. That’s why you want to have everything in line and understand all your options.

For normal people, this can get a little complicated. Is there a way out that doesn’t involve bankruptcy? How can you tell its for real and feasible? What if you decide to go another route an it doesn’t work out? All these questions might be plaguing you.

Since the internet can only take us so far, it’s good to have a base of professional knowledge. And since we can only absorb so much of this professional knowledge, it’s even better to have dedicated professionals who can help us figure out the specifics of how this information applies to our situation.

Bankruptcy lawyers are just these professionals. They help you figure out what type of bankruptcy to file, whether or not you need to file bankruptcy in the first place, and what you need to do to prepare to file for bankruptcy. Having all these things handled and out of the way will bring greater peace of mind in a stressful time.

Bankruptcy lawyers have been working in their fields for years, and will have encountered hundreds of different bankruptcy situations. Your specific situation will be easily understood by a lawyer with such broad experience. This isn’t a the lawyer’s first rodeo.

Why Make the Investment in a Bankruptcy Lawyer?

An investment is a big ask when you’re filing bankruptcy. Considering the way things have been going financially, you might be tempted to put down the checkbook and start handling things yourself. This, however, may be one of the most beneficial things you do during the whole process.

Bankruptcy lawyers will notice if things go wrong during the process, and will be able to handle bumps in the road quickly and efficiently. Navigating this rocky sea yourself may take you for a pretty confusing ride. It’s good to have a professional on your side.

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Legal Social Security Disability

Non-Medical Requirements Needed For SSDI

What Are the Non-Medical Requirements Needed For SSDI

There are a number of qualifications needed to apply successfully for Social Security Disability Insurance benefits. When you apply, the Social Security Administration will look at a variety of factors to see if you qualify, and there are the standard requirements of being able to show medical proof of disability, but there are non-medical requirements as well.

Social Security Disability Insurance Requirements

To qualify for Social Security Disability Insurance benefits, you must show medical and non-medical needs. There are three basic conditions for being considered eligible for SSDI payments, they are:

  1. You must show a “medically determinable” disability that significantly limits your ability to be gainfully employed.
  2. Your medical condition must either be terminal or be expected to last no less than 12 months.
  3. You must have earned a sufficient number of standard work credits with the Social Security Administration.

When used to consider the eligibility of SSDI recipients, gainful employment is defined by the SSA as earning or being able to earn, about $1,300 per month or more. This limit is $2,190 if your disability is blindness.

In addition to the medical requirements of proving a medically determinable disability, and that the disability is expected to last a minimum of 12 months, or result in the death of the recipient, there is a need to show that you are “insured” with the Social Security Administration by having earned enough work credits during the time you were employed.

Non-Medical Requirements

When you are employed, you pay federal Social Security payroll taxes, a portion of which is FICA. Taxes collected under FICA go into the Social Security trust fund and are used to pay SSDI benefits to recipients. Part of the application process for SSDI will be a mandatory review of your employment history to show that you have contributed to the system such that you qualify for benefits.

The work credits required to be eligible vary with the age of the applicant. If the applicant is under 24, they will only need to have worked for about 1.5 years, accumulating a minimum of 6 work credits. Applicants between 24 and 30 will need to show a work history of between 2 and 4.5 years, with a minimum of 8 to 18 work credits. Those between 31 and 42 will need to show 5 years of work and 20 credits to gain eligibility. After 42, you are required to earn a minimum of 2 credits every 2 years.

Documents sufficient for proving work history include income tax returns, pay stubs, W2 forms, detailed job history, and so on.

If you fail to meet the required number of work credits for SSDI, you may still be able to qualify for SSI. To show a need for SSI you will need to show less than $2,000 in assets, or $3,000 for couples, and limited income.