Sunday, May 6, 2018

Fraudulent Transfers Before Bankruptcy

Fraudulent Transfers Before Bankruptcy

Perfectly honest consumer debtors sometimes make the mistake of transferring an asset to a friend or family member before filing bankruptcy.  This can happen innocently enough, as for example, where a debtor gives an old car of little value to an adult child months before he even considers filing bankruptcy.  Despite the fact that he had no actual intent to defraud any creditor, and despite the fact that if he had not transferred this old car of minimal value, he may well have been able to exempt it in Chapter 7 bankruptcy, the Bankruptcy Code nevertheless treats such a transfer as “fraudulent.” Sadly, bankruptcy law is full of such “gotcha” pitfalls for debtors, particularly when it comes to Chapter 7 bankruptcy, and the Bankruptcy Code is harsh and unforgiving when it comes to “fraudulent transfers” by debtors prior to bankruptcy.

11 U.S.C. Section 548

Fraudulent transfers are defined in 11 U.S.C. Section 548 as transfers by the debtor of an interest in property (either voluntarily or involuntarily) within two years before filing bankruptcy, where either the debtor actually did intend to defraud his creditors or, far more commonly, where the debtor did not receive “reasonably equivalent value” for the transferred asset and the debtor was either already insolvent or became insolvent as a result of the transfer.

Fraudulent Transfers Can Hurt Bankruptcy

Fraudulent transfers can have dire consequences in bankruptcy.  If the transfer involved actual fraud—meaning that the debtor transferred the asset with actual intent “to hinder, delay, or defraud” his creditors—and such transfer occurred within one year prior to filing bankruptcy, then under Bankruptcy Code section 727(a)(2)(A), the court may deny the debtor from obtaining a bankruptcy discharge at all!

Constructive Fraud

Far more common, however, are situations involving “constructive fraud” where, as described above, the debtor had no actual intent to harm anyone, she simply transferred an asset for less than “reasonably equivalent value” while she was either insolvent or became insolvent as a result.  As noted above, under section 548, if such a constructively fraudulent transfer was made within two years prior to filing bankruptcy, then the bankruptcy trustee can “avoid” the transfer.  This means that the trustee can sue the family member to whom that old car was given to get the car back. Obviously, this is a disastrous result for the adult child who received the car, and who is a completely innocent bystander in this scenario.

Getting Assets Back to Reverse Fraudulent Transfers Prior to Bankruptcy

In many cases, however, by carefully questioning our bankruptcy clients prior to filing, we can avoid these negative consequences by advising the client to try to get the transferred asset back prior to filing.  This is because if one is filing bankruptcy in Salt Lake City or anywhere within the Ninth Circuit, the bankruptcy court will allow debtors to reverse or undo a fraudulent transfer prior to filing bankruptcy.  Such a rule follows, what I think is a universally held common senses value that one should be allowed, if given the chance, to correct a mistake after receiving advice from an attorney.

That’s what the Ninth Circuit essentially said in the case In Re Adeeb, 787 F.2d 1339 (9th Cir.1986).  For a fraudulent transfer to exist in a bankruptcy case, the transferred asset must have remained transferred as of the bankruptcy filing date.  If the debtor recovered the asset, then it is no longer “transferred.”  No harm; no foul.

So, if you are thinking of filing bankruptcy in Utah or the Ninth Circuit, and you gave your daughter an old clunker last year as a gift, then you should have her sign title back over to you before filing bankruptcy!

Free Consultation with a Utah Bankruptcy Attorney

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

Saturday, May 5, 2018

Questions about Joint Custody

Because we deal alot with child custody, it seems that the position on many people has changed over the years. It used to be that only one parent got custody – sole custody – of the children. Now, it is seen as a matter of basic human rights and human nature, unless they are unfit then divorced and separated parents and their children deserve joint custody.

Questions about Joint Custody

“[A] parent’s right to the preservation of his relationship with his child derives from the fact that the parent’s achievement of a rich and rewarding life is likely to depend significantly on his ability to participate in the rearing of his offspring. A child’s corresponding right to protection from interference in the relationship derives from the psychic importance to him of being raised by a loving, responsive, reliable adult.” Franz v. U.S., 707 F.2d 582, 595-599; US Ct App (1983).

“It is cardinal with us that the custody, care and nurture of the child reside first in the parents, whose primary function and freedom include preparation for obligations the state can neither supply nor hinder.” Prince v. Massachusetts, 321 U.S. 158, 166 (1944).

The idea that coming into court on the subject of child custody and considering that issue to be a blank slate is simply wrong, it’s backward. We must start with the idea that children are best off with both parents involved as much as possible in their lives. Divorce is not a question of divorcing children from parents. This is not a question of deciding “which” parent is the best. Both fit parents are the best parents for their children.

The idea that courts must presumptively award sole custody to one parent or the other is patently irrational, inequitable, and discriminatory.

Joint Custody Is Becoming the New Normal

Seeing one fit parent as less than the other is more offensive and more harmful than racism. There are no second-class citizens. We must certainly see and treat fit parents—and their children—the same way. The idea that children are presumptively better off in the custody of one parent primarily over the other simply makes no sense. There is no evidence to support such a presumption, no reasoning that supports such a presumption. Indeed, evidence, reason, and our very human nature are to the contrary.

Indisputably there are certainly unfit parents whose contact with and control over their children must be limited for the sake of protecting a child’s basic human rights.

But a parent who has never been shown to be unfit in the first place is under no obligation to prove that he or she is “fit” to exercise equal time. Parental fitness, like innocence, is (or rather should be) presumed before the state can meddle in matters of parental rights. Unless one is proven to be an unfit parent, no one has the right to infringe upon one’s parental rights and one’s children’s rights to be reared by their parents.

Consequently, fit parents are (or rather should be) presumed entitled to the joint custody of their children, not the other way around. It is self-evident. It is never (it can never be) in a child’s best interest to be deprived of every opportunity to have a strong, loving, salutary relationship with both of his parents.

What Are Your Rights?

Before one’s parental rights are infringed it must be proven that one is an unfit parent; otherwise, the state has no business even considering whether to infringe on parental rights and a child’s right to his parent’s care, companionship, and custody.

Consequently, the state has no power (or rather should have no power) to compel a parent to prove he or she is just as good a parent as the other without there first being, at least, some clear and convincing, affirmative evidence for questioning—and then infringing upon—one’s parental fitness.

Consequently, the idea that a fit parent would be awarded with the other parent anything less than equal custody of children is illegitimate.

The presumption should be equal, joint legal custody and equal joint physical custody unless circumstances—by at least clear and convincing evidence—compel a judge to conclude that the exercise of joint custody infringes a child’s inalienable human rights (not the well-meaning but wrongheaded “Children’s Bill of Rights” and its ilk that have—thankfully—no force of law). Absent a showing of exceptional circumstances, one who is worthy of joint custody is worthy of equal joint custody with the other parent. Anything less would be a violation of a parent’s and his or her children’s rights.

Parental rights are a fundamental human and constitutional right, and so if someone is a fit parent, those rights are entitled to their highest, freest exercise, i.e., joint physical custody on an equal time-sharing basis (just as would be joint legal custody, with neither parent having more or less authority than the other and no more nor fewer parental rights than the other).

Rule of law depends upon ensuring as much freedom as possible for everyone subject to it. There is no such thing as the “least permissible” or “least acceptable” amount of personal freedom.

That is why this whole idea that courts claim they must award physical custody to one parent or the other, or that someone must prove “worthy” of as much custody as possible is backward. We must start with the presumption that unless it can be shown that there is some legitimate state interest in ordering otherwise, both parents get as much time with the children as possible and children have as much time with the parents as possible. To think or act otherwise is to believe parental rights flow from the state, subject to the will and the whim of the state.

The purpose of courts meddling in the affairs of the family must be surgical, as little as necessary. To do more than necessary means to do harm. Doing as little as is absolutely necessary helps prevent human error, bias, and a lust for power over the governed from creeping into the administration of the law. It protects against one’s freedom being infringed. It protects one’s rights, including parental rights, especially parental rights, from being infringed.

Free Consultation with Child Custody Lawyer

If you have a question about child custody question or if you need to collect back child support, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

Friday, May 4, 2018

Can I call my child as a witness in court to say where she would like to live?

I’m asked many different questions as a Utah divorce lawyer. This one is not unique. You may want to this about this question again. Do you really want your child to testify as a witness? Do you really want your child to be placed in the position of being made to choose which parent he/she prefers or “loves more”? That kind of thing could really scar some (I emphasize some, not all) children emotionally.

Let’s assume for the sake of this response, however, that you have legitimate and compelling reasons for the child to testify on the subject of the child custody and/or parent-time orders. By way of historical note, few people know that before 1969, the Utah Code provided that children ten years of age “shall have the privilege of selecting the parent to which they will attach themselves.” Not anymore.

Can I call my child as a witness in court to say where she would like to live

Now the Utah Code provisions regarding child testimony on the subject of custody and parent-time (visitation) are found in Utah Code § 30–3–10(1) and read, in pertinent part, as follows:

  • (e) The court may inquire of a child and take into consideration the child’s desires regarding future custody or parent-time schedules, but the expressed desires are not controlling and the court may determine the child’s custody or parent-time otherwise. The desires of a child 14 years of age or older shall be given added weight, but is not the single controlling factor.
  • (f) If an interview with a child is conducted by the court pursuant to Subsection (1)(e), the interview shall be conducted by the judge in camera. The prior consent of the parties may be obtained but is not necessary if the court finds that an interview with a child is the only method to ascertain the child’s desires regarding custody.

Now you may ask (and if you weren’t thinking of asking, you should), “So how frequently does a Utah court ‘find that an interview with a child is the only method to ascertain the child’s desires regarding custody’?”

The answer is: almost never, and for the reason I stated at the beginning of my response to your question, i.e., the vast majority of judges and commissioners in Utah believe that a child should never be questioned on the subject of his/her desires regarding future custody or parent-time schedules because of concern that placing the child in the position of having to choose could be emotionally agonizing.

While the desire to avoid traumatizing a child emotionally is valid, it is often abused by judges as a convenient excuse not to question children under any circumstances, no matter how compelling (and thus saves time and allows the court greater discretion in deciding the issue, since the child’s testimony never gets heard).

Another valid concern, but one that is also often abused as a convenient excuse for judicial sloth, is whether a child’s testimony is all that credible, given that a child may have been unduly influenced by a parent to say what the parent wants the child to say, rather than what the child honestly observed, feels and desires.

Some judges will dodge a child interview by claiming to be “unqualified” to question a child on the subject of custody and parent-time. To that lame argument I point out that the legislature has clearly expressly deemed the judge qualified to question a child by authorizing the judge by statute to interview the child. Thus, if a judge still feels unqualified, that judge either needs to read up or get trained up to the point of finally feeling qualified or resign from the job of being a judge.

Some judges claim that they can avoid questioning children, yet still solicit their desires by having someone else (such as an attorney appointed for the child—who is called a “guardian ad litem”—or having a social worker or psychologist) interview them and then report that to to judge. But that’s silly. The interview still takes place. The questions still get asked and answered, but they aren’t asked by or heard by the judge directly. There’s a reason we have witnesses testify in the presence of the judge: so that the judge can hear the testimony first-hand and without filtration or bias from a second-hand source, so that the judge can truly ascertain the witness’ credibility. When all a judge does is get testimony through a “child whisperer,” the integrity of the fact-finding process is needlessly undermined.

Additionally, the guardian ad litem and/or psychologist isn’t an expense the court bears; one or both parents have to pay for these people’s “services,” which ends up costing the parents a lot of money, wasting a lot of time, and needlessly raising hearsay concerns. I have no problem with an expert supplementing the evidence when warranted, but at bottom, wholesale delegation of the interview responsibility is passing the buck, pure and simple.

Personally, I don’t see why the overwhelming majority of Utah district court judges are so unwilling to question children on the record on the subject of custody and parent-time. First, children testify in all kinds of court settings without wrecking their lives. Second, it’s not as though the only way to solicit the children’s testimony is by subjecting them to the same kinds of brutal interrogation techniques used with hardened criminals or spies. It’s the children who will be affected most by the child custody and parent-time orders, so I cannot see how an intellectually honest judge could claim that a child’s observations, experiences, feelings, opinions, and desires on the subject are not key to reaching a custody and parent-time order that is in that child’s best interest. Where there’s a will, there’s a way. Fortunately, commissioners and judges in Utah appear to me to be coming around to my way of thinking, albeit slowly and reluctantly.

So if you were hoping to have the judge interview the child to inform the judge of the child’s custody and parent-time preferences, I wouldn’t count on it in Salt Lake, Provo, West Jordan, or Sandy Utah.

Free Consultation with Custody and Divorce Lawyer

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

Thursday, May 3, 2018

If I File Bankruptcy, Do I have to Go to Court?

For most people, lawyers and lawsuits conjure up images of wood-paneled courtrooms with scary judges presiding over heated exchanges. “ORDER IN THE COURT! OBJECTION, YOUR HONOR!” Many bankruptcy clients are concerned that a judge will be reviewing and second-guessing their petition.

If I File Bankruptcy Do I have to Go to Court

This concern is usually unwarranted. In the vast majority of cases, debtors never step foot in a courtroom and do not appear before a judge.

Here’s what you need to know about filing for bankruptcy and what will be expected of you.

The 341 Meeting of Creditors

Debtors are required to attend what is known as the meeting of creditors or section 341 meeting, a proceeding at which the debtor testifies under oath that the information contained in their bankruptcy filing is accurate.

In many jurisdictions, the 341 meeting doesn’t even take place in the courthouse. It might be across the street or nearby the federal court. Your bankruptcy trustee (not a judge) will preside over the meeting of creditors, but don’t worry, your bankruptcy attorney will be there to guide you through the process.

In most Chapter 7 cases, the 341 meeting is fairly painless and only lasts between 3 to 10 minutes. During that time, the trustee will ask you a series of questions about your property, debts, and financial history. Some debtors will receive very few questions; others with more complicated cases may receive more.

The key to success is being open and honest with your lawyer.

Here are five things to expect during your 341 meeting:

  1. Your attorney will attend the meeting with you, whether you filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy;
  2. During the meeting, assets will be administered in a Chapter 7, and your disposable income will be verified in a Chapter 13 repayment plan;
  3. You’ll have to swear in. That means your testimony is under oath; you cannot lie, otherwise you will face severe consequences (least of which is having your bankruptcy denied);
  4. You’ll be asked if all of your financial documents are in order and accurate;
  5. In most Chapter 7 cases, no assets will be found. In Chapter 13 cases, you may be asked for additional verification of your income or expenses.

And that’s it!

When a Bankruptcy Court Appearance is Required

Although the likelihood of a court appearance is low, debtors must realize that filing for bankruptcy is more than just filling out some forms. A bankruptcy case can turn to litigation fairly quickly. Debtors may be required to appear in court when a trustee objects to one of their exemptions or the judge orders them to appear and show cause. In addition, an adversary proceeding will likely require a court appearance, as well.

Objections to Exemptions

When filing for bankruptcy, a debtor will state which of their property is exempt under bankruptcy laws. This allows the debtor to protect certain property, such as their house, car, retirement accounts, and more. However, debtors must carefully follow exemption rules in their state; in some states, you can choose between federal exemptions or state exemptions, while others only allow you to use state rules. Some states have better exemptions than others. A bankruptcy attorney will thoroughly review exemptions with you to determine which property you will be able to keep. The majority of Chapter 7 cases, if debtors qualify, will allow them to keep all their property.

Show Cause Order

A show cause order is typically used in cases of contempt, in which debtors can go to jail. Essentially, it’s used on either difficult debtors who have lied to the court, or debtors who simply forgot a step during their bankruptcy (failing to disclose assets, not providing documents to the bankruptcy trustee, etc.), who then have to show the court why their bankruptcy discharge should not be denied. While some debtors who have been given a show cause order have actually been honest, they may not have done their paperwork correctly. This happens often in pro se cases, in which a debtor tries to file bankruptcy themselves. This is when a good bankruptcy attorney needs to step in.

Adversary Proceedings

Adversary proceedings are lawsuits filed separate from your bankruptcy case, though it’s related. An adversary proceeding can be filed by anyone in a bankruptcy, including the debtor, when someone requires relief through a judge’s order.

Types of adversary proceedings include:

  • Fraudulent transfers: Bankruptcy trustees will file these if you’ve moved around any money or property in the two years leading up to your bankruptcy.
  • Preferential transfers: Bankruptcy trustees will file these if you pay back creditors more than $600 in the three months leading up to your bankruptcy, or a year in the case of family members.
  • Lien stripping: Debtors will file these during a Chapter 13 bankruptcy if they have more than one mortgage on a house.
  • Dischargeability of debt: Creditors will file these to request a debt not be discharged due to fraud of the debtor.
  • Joint property sale: A trustee can file these to split property from you and your spouse in order to sell it.
  • Objection to discharge: Trustees and creditors can file these when you’ve committed fraud or failed to comply with court order.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

How to get a good divorce settlement if I can’t afford a lawyer

How to get a good divorce settlement if I can't afford a lawyer

I have a steady job and am paid well, but I simply don’t have money for the retainer and my ex’s father is, literally, a millionaire.

There are a few options.

In Utah, you can file a motion to get you temporary alimony.

First, see Utah Code § 30-3-3. Award of costs, attorney and witness fees—Temporary alimony.

(1) In any action filed under Title 30, Chapter 3, Divorce, Chapter 4, Separate Maintenance, or Title 78B, Chapter 7, Part 1, Cohabitant Abuse Act, and in any action to establish an order of custody, parent-time, child support, alimony, or division of property in a domestic case, the court may order a party to pay the costs, attorney fees, and witness fees, including expert witness fees, of the other party to enable the other party to prosecute or defend the action. The order may include provision for costs of the action.

(emphasis added)

(2) In any action to enforce an order of custody, parent-time, child support, alimony, or division of property in a domestic case, the court may award costs and attorney fees upon determining that the party substantially prevailed upon the claim or defense. The court, in its discretion, may award no fees or limited fees against a party if the court finds the party is impecunious or enters in the record the reason for not awarding fees.

(3) In any action listed in Subsection (1), the court may order a party to provide money, during the pendency of the action, for the separate support and maintenance of the other party and of any children in the custody of the other party.

(4) Orders entered under this section prior to entry of the final order or judgment may be amended during the course of the action or in the final order or judgment.

The following principles governing an award of attorney’s fees under Utah Code § 30-3-3 is taken from the Utah Supreme Court case of Dahl v. Dahl, 345 P.3d 566 (Utah 2015):

In Utah, attorney fees are awardable only if authorized by statute or by contract.” Dixie State Bank v. Bracken, 764 P.2d 985, 988 (Utah 1988).

Section 30-3-3(1) of the Utah Code authorizes courts to award attorney fees and costs in divorce cases if doing so would “enable the other party to prosecute or defend the action.” “Such an award must be based on evidence of the receiving spouse’s financial need, the payor spouse’s ability to pay, and the reasonableness of the requested fees.” Levin v. Carlton, 2009 UT App 170, ¶ 27, 213 P.3d 884.

The party requesting an award of fees has the burden of providing such evidence. Griffith v. Griffith, 959 P.2d 1015, 1020-21 (Utah Ct.App.1998).

The decision of whether to award attorney fees pursuant to section 30-3-3 of the Utah Code rests in the sound discretion of the district court.

When determining the financial need of the requesting spouse, we “generally look to the requesting spouse’s income, including alimony received as the result of a divorce decree; the property received via the property distribution award; and his or her expenses.” Kimball v. Kimball, 217 P.3d 733, ¶ 46 (Utah Ct.App. 2009)

When evaluating the reasonableness of a request for attorney fees pursuant to section 30–3–3, courts look to a variety of factors.

Reasonable attorney fees are not measured by what an attorney actually bills, nor is the number of hours spent on the case final in computing fees…. A court may consider, among other factors, the difficulty of the litigation, the efficiency of the attorneys in presenting the case, the reasonableness of the number of hours spent on the case, the fee customarily charged in the locality for similar services, the amount involved in the case and the result attained, and the expertise and experience of the attorneys involved.

Another option is to talk to your family and get assistance.  Talk to your mom, your dad, your brothers, sisters, aunts, uncles, priests, rabbis, ministers, bishops, friends, neighbors, etc.  Those who love you usually can and will help you.

Another option is to contact Utah Legal Aid.  They assist those who cannot afford legal services and have no other options.  Its my understanding that it is needs based and there is a waiting period.  Contact them directly to get started.  Their number is: 801-328-8991.

 

Free Consultation with a Divorce Lawyer

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

Wednesday, May 2, 2018

Household Debt Near Great Recession Level

Although bankruptcy filings have been trending downward for years, household debt is expected to hit a new record in 2017.

It may seem like a big number, but fewer than 800,000 people filed for bankruptcy in the U.S. last year. Just six years ago, that amount was double.

Household Debt Near Great Recession Level

Will household debt start to catch up with us? According to the Federal Reserve — maybe.

Household debt climbed to $12.58 trillion in 2016, which nearly broke the 2008 record (see: timing with the Great Recession). It could even reach that high, $12.68 trillion, sometime this year.

Banks are extending more debt to households, but fewer people are delinquent on their debt. However, all that debt will have to go somewhere eventually. Could it result in an uptick in bankruptcies in a few years?

What is household debt?

Household debt includes more than just your house. The categories of debt, as measured by a Federal Reserve Bank of New York report, include housing debt, like mortgages, along with non-housing debt: credit cards, student loans, and auto loans. Each saw an increase in 2016, at a total of $460 billion more household debt — the largest increase in a decade.

The boost is in large part because of stronger new extensions of credit, the Federal Reserve says.

Let’s break down each category, and where we’ve seen increases.

Mortgage Debt in Utah

Mortgage balances, at $8.48 trillion, make up 67% of household debt. This is an increase of $130 billion from the third quarter of 2016. Balances on home equity lines of credit, now at $473 billion, were roughly flat. Mortgage originations, measured as appearances of new mortgage balances on consumer credit reports, including refinanced mortgages, were at $617 billion — the highest level of originations since the Great Recession began.

The median credit score for mortgage originations increased to 763, with a credit score of 700 and above generally considered good or very good by measuring agencies. Credit scores are used by lenders to determine how likely you will be able to repay your debt, and thus make their decision on whether or not to offer you a loan and what your interest rate or down payment may be. About 58% of new mortgages went to borrowers with credit scores over 760 last year, an increase of 4 percentage points over 2015.

The percentage of people buying homes with low credit scores, peaking in 2009, has been on the decline in recent years as the mortgage industry is continuing to recover. Consumers, it seems, have been buckling down and being more responsible with their spending — mortgage charge-off rates are within the range observed prior to the recession.

However, about 79,000 people had a new foreclosure notation on their credit reports sometime in the fourth quarter of 2016.

Credit cards

Credit card debt may seem like the most popular to people who have a lot of it and don’t own a home, but it accounts for the least amount of household debt out of all categories — at just 6%. However, credit card debt increased by $32 billion last year, to amount to a total of $779 billion. The aggregate credit card limit also increased for the 16th consecutive quarter, climbing 2.3%.

Utah Student Loan Debt

Student loans account for 10% of household debt. Debt balances rose by $31 billion in the fourth quarter to a total of $1.31 trillion. Most of us know the pain of student loan debt all too well, and unfortunately, if people ever get in trouble with their debt, they’ll most likely still be on the hook for their student loans. It’s really difficult to discharge student loans in a bankruptcy — next to impossible, actually.

Auto loans

Finally, auto loans account for 9% of household debt. New auto loan originations have climbed to a record high, increasing by $22 billion. There were $142 billion in auto loan originations in the fourth quarter, in turn making 2016 the highest auto loan origination year in nearly 20 years.

Like people taking out their first mortgage or refinancing one, auto loan borrowers had an increased median credit score last year in the “good” range — 700. Although they didn’t see as much of an increase as home buyers, 32% of people getting an auto loan in the fourth quarter of 2016 had a credit score of over 760, compared to the previous three quarters’ 29% with that high of a score.

How delinquent are Americans on debt?

According to the Federal Reserve report, while more Americans are racking up household debt, it seems that they’re learning how to pay it back — or at least deal with it for now. Fewer delinquencies were reported at the end of 2016 than there were in 2008, the last time household debt was so high. Only 4.8% of debts were regarded as delinquent or late in payment at the end of last year, while the third quarter of 2008 showed 8.5% delinquencies.

Delinquency rates are pretty stable, too. The most-improved delinquencies are the 30-days-late balances, while the “severely derogatory” ones — debt that’s at least 90 days late — saw a small uptick in the last quarter of 2016. Unfortunately, of the $607 billion of debt that is delinquent, $412 billion is seriously delinquent.

Additionally, 204,000 consumers had a bankruptcy notation added to their credit reports in the final quarter of 2016, which was about 4% fewer than at the same time the previous year — and also a new series low.

Other debt trends for 2018

In addition to major increases in household debt, the restructuring industry also is expecting changes for 2018. The restructuring industry includes law firms, investment banks, lenders, and more who deal with companies who are restructuring their debt through bankruptcy or other means.

While consumer bankruptcies are down, commercial bankruptcies are up. According to the American Bankruptcy Institute, total filings increased by 26% in 2016 over the previous year — the first rise since 2010. Industry experts thus are expecting more companies in debt to attempt to restructure this year. That includes a lot of retailers, many of which filed bankruptcy in 2016 (American Apparel, Sports Authority, Wet Seal, and Hancock Fabrics, to name a few).

Free Consultation with a Bankruptcy Attorney

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:

Tuesday, May 1, 2018

Civil Lawyer

The Law in Utah is split intо the two broad аrеаѕ оf civil law and criminal law. A lаwуеr working in the criminal аrеа will defend or prosecute individuals who have broken ѕоmе criminal lаw. A civil lawyer will represent clients who mау have a dispute with someone else оvеr ѕоmе matter that iѕ nоt соvеrеd by criminal lаw.

Civil Lawyer

Thе kind оf thing thаt сivil lаwуеr will dеаl with аrе disputes bеtwееn twо раrtiеѕ thаt mау inсludе соntrасt diѕрutеѕ, реrѕоnаl injuriеѕ or dаmаgеѕ tо property. A civil lаwуеr will represent bоth ѕidеѕ in a diѕрutе. Thе реrѕоn whо iѕ suing is known аѕ the рlаintiff аnd the реrѕоn being ѕuеd iѕ саllеd аѕ the dеfеndаnt.

Thе аrеаѕ thаt a civil lаwуеr will dеаl with include: Civil lаw, buѕinеѕѕ lаw, ѕlаndеr, реrѕоnаl injurу сlаimѕ, nеgligеnсе аnd libеl. Thе civil lawyer jоb description will vary frоm firm tо firm but thе basics will rеmаin thе ѕаmе.

A lawyer who ѕресiаlizеѕ in сivil lаw iѕ knоwn аѕ a сivil lаwуеr. Civil law hаѕ many fields inсluding business laws, corporate laws, intеllесtuаl property lаwѕ, fаmilу lаwѕ, personal injurу laws, probate lаwѕ, rеаl estate laws, tax lаwѕ, еtс. Civil law iѕ a brаnсh of lаw dеаling with diѕрutеѕ bеtwееn individuаlѕ and/or оrgаnizаtiоnѕ, in whiсh соmреnѕаtiоn may bе аwаrdеd tо the viсtim. A сivil lаwуеr not оnlу represents thе сliеnt in a lеgаl proceeding but аlѕо рrоvidеѕ legal аdviсе tо the client in сivil trаnѕасtiоnѕ.

Civil law еnсоmраѕѕеѕ аll lаw thаt is nоt сriminаl law. Civil lаw seeks tо resolve nоn-сriminаl diѕрutеѕ such as diѕаgrееmеntѕ over thе mеаning оf contracts, property оwnеrѕhiр, divоrсе, сhild сuѕtоdу, and dаmаgеѕ fоr реrѕоnаl аnd property dаmаgе. Civil lawyers hаndlе lаwѕuitѕ that invоlvе individuals, buѕinеѕѕеѕ, and еvеn the gоvеrnmеnt.

Civil lawyers will gеnеrаllу choose one or mоrе аrеаѕ of lаw to ѕресiаlizе in. If уоu need assistance with tаx lаwѕ, уоu should gо to a сivil lаwуеr whо specializes in tаx lаwѕ. If уоu have bееn injurеd in аn accident and уоu wаnt tо file a law ѕuit ѕееking damages, уоu will nееd thе services оf a civil lаwуеr ѕресiаlizing in реrѕоnаl injurу lаwѕuitѕ. If уоu аrе filing fоr divоrсе or seeking сuѕtоdу оf your child, a civil lawyer ѕресiаlizing in fаmilу lаw will be аblе to hеlр уоu out.

A lаwуеr саn аlѕо hеlр уоu if уоu аrе running a buѕinеѕѕ bу giving уоu timely аdviсе thаt can ѕаvе you frоm соѕtlу сivil law litigation. A civil lаwуеr ѕресiаlizing in business laws саn advise уоu оn the rеgulаtiоnѕ your business nееdѕ tо comply аnd thе licenses rеԛuirеd bу your business. He can even help you obtain the liсеnѕеѕ. Lаwѕ rеgulаting the functioning оf соrроrаtiоnѕ аrе соmрlеx. Thеrе аrе сivil lаwуеrѕ whо ѕресiаlizе in соrроrаtе laws. In a rеаl estate trаnѕасtiоn, a lаwуеr ѕресiаlizing in real estate lаwѕ can make ѕurе thаt the transaction is being conducted in the proper way, thе necessary dосumеntѕ аrе рrореrlу executed аnd the ѕаlе рrосееdѕ рrореrlу раid out аnd ассоuntеd fоr at сlоѕing.

Lаwуеrѕ can bе bаѕiсаllу ѕераrаtеd intо two саtеgоriеѕ. Civil and сriminаl. Civil lawyers gеnеrаllу dеаl with iѕѕuеѕ such аѕ adoption аnd divоrсе, domestic iѕѕuеѕ, and сriminаl lаwуеrѕ dеаl with personal injury, crime, and соrроrаtе lаw. Althоugh hеrе уоu will find a list of the mаin tуреѕ оf lawyers thаt are available, bе aware that thеrе аrе many other ѕmаllеr specialties within each ѕресiаlizаtiоn.

  • Divorce Lаwуеrѕ ѕресiаlizе in divorce аnd annulment. Thеу саn provide mаnу ѕеrviсеѕ during thеѕе hard timеѕ. There are mаnу iѕѕuеѕ that уоu mау not еvеn knоw about thаt a divorce lаwуеr can hеlр you with. Thеѕе include, mеdiаtiоn, finаnсiаl planning, аvоiding gоing to соurt, visitation and сuѕtоdу.
  • Civil Lаwуеrѕ dеаl with individuаlѕ аnd buѕinеѕѕеѕ, оrgаnizаtiоnѕ bеtwееn individuals. For example thеу mау hаndlе marriage аnd divorce, рrореrtу diѕрutеѕ, malpractice and wrоngful dеаth.
  • Bаnkruрtсу Lаwуеrѕ help individuаlѕ аnd buѕinеѕѕеѕ filе fоr bаnkruрtсу and wоrk tо help thеm gеt thе best роѕѕiblе terms fоr their ѕituаtiоn. Thеу maybe bе аblе tо hеlр thеm kеер thеir homes and cars, or аvоid personal itеmѕ being rероѕѕеѕѕеd.
  • Family lаwуеrѕ соvеr ԛuitе a wide range of ѕеrviсеѕ. All iѕѕuеѕ thаt rеlаtе to fаmiliеѕ. Thеrе are mаnу fаmilу rеlаtеd рrоblеmѕ thаt can occur thаt a family lаwуеr саn hеlр уоu with. Domestic violence, сhild viѕitаtiоn rightѕ, раtеrnitу, divоrсе аnd аdорtiоn.
  • Criminаl Lаwуеrѕ work with сriminаl offenses. Oftеn people nееd someone to dеfеnd them, аѕ thеу have been charged, thiѕ may bе in or оut of thе соurt, it simply dереndѕ on thе crime. The range оf crimes thаt сriminаl lawyers dеfеnd iѕ large, ranging frоm murder tо ѕеxuаl аѕѕаult tо frаud.
  • Accident Lаwуеrѕ hеlр реорlе thаt are viсtimѕ оf injurу or ассidеntѕ in оrdеr tо get compensation.
  • Contract Lаwуеrѕ hеlр people who (1) need a contract written; (2) need to understand what a contract means (interpretation); (3) need to break a contract (also call breach a contract; (4) need to enforce a contract.
  • Real Estate Lawyer help clients fixing title issues to property, suing to enforce property rights; transferring property; and protecting their property.
  • Probate Lawyers help people with estate planning (wills, trusts, powers of attorney, health care directives) and also handling things after someone passes away, including probating the estate when necessary.
  • Tax Lаwуеrѕ hеlр реорlе dо thеir tax rеturnѕ аnd bаѕiсаllу dеаl with аll issues of tаx.

Free Initial Consultation with Lawyer

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
Posted by at No comments:
Labels:
Subscribe to: Posts (Atom)