Creditor Claims Against Retirement Assets

Creditor Claims Against Retirement Assets

Creditor claims is defined as written claim filed in federal bankruptcy court by a person or entity owed money by a debtor who has filed for bankruptcy. A written claim filed in probate court by a person or entity owed money by a person who has died. State law sets a deadline, usually a few months, for filing a claim in probate court. If the executor or administrator in charge of the probate denies the claim, the creditor can request a court hearing. A creditor with a secured claim in bankruptcy has two things: a debt that you owe and a lien (also called a security interest) on a piece of property you own. If you don’t pay according to the terms of your contract, the lien allows the lender to recover the property, sell it at auction, and apply the proceeds to the account balance. For instance, a mortgage lender with a lien can recover real estate in a foreclosure action, and a vehicle loan lender with a lien can recover a car through repossession.

Secured claims are often voluntary. For instance, if you agree to pledge an asset as collateral for the loan (a common practice when buying a house or car), you voluntarily give the creditor a security interest in your property. Creditors can also obtain an involuntary lien against your property without your consent. For instance, a credit card company can get an involuntary lien after suing you in a collection lawsuit and winning a money judgement. When you fall behind on your taxes, statutory law gives the IRS the right to a tax lien against your property. Filing for bankruptcy involves disclosing your debts, or “creditor claims,” on official bankruptcy paperwork. But as easy as that might sound, classifying claims can get a bit tricky. First, you’ll list the debt as either a secured or unsecured claim. Then, you’ll divide the unsecured claims into priority and non-priority unsecured claims.

Listing Creditor Claims in Your Bankruptcy Paperwork

A bankruptcy case gets started after you complete and file official bankruptcy forms. The cover document, called the petition, is where you’ll disclose identifying information, such as your name, address, and the bankruptcy chapter you’re filing. You’ll provide details about your income, creditor claims (debts), and assets on forms called schedules.

Creditor claims will appear on one of two schedules:
• Schedule D: Creditors Who Hold Claims Secured By Property. Here you’ll include secured claims, such as a mortgage, car payment, or another collateralized obligation.
• Schedule E/F: Creditors Who Have Unsecured Claims. You’ll list unsecured claims on this form. Priority unsecured claims, such as unpaid taxes and child support, belong in Part 1. You’ll list your non-priority unsecured claims (all remaining debts) in Part 2.
Common examples of secured bankruptcy claims include:
• Mortgages
• car loans
• unpaid real estate taxes, and
• other property liens.

You’ll list all secured claims on Schedule D: Creditors Who Hold Claims Secured By Property.

A creditor with a secured claim is in a good position. A bankruptcy discharge (the order that wipes out debt) won’t get rid of a lien on your property. It only eliminates your liability to pay the debt. Since the lien remains, the creditor can still foreclose or repossess the property if the loan doesn’t get paid. So if you file for bankruptcy and want to keep property securing a loan, you’ll have to continue making payments to the lender until you pay off the debt. However, if there is significant equity in a house or car, a Chapter 7 trustee will likely sell it. But, because of the lien, the trustee must get enough to pay off the loan, return any exemption amount to you (the amount of equity you’re allowed to protect), and use the remaining funds to pay off creditors. If there isn’t enough equity to pay something meaningful to creditors, the trustee won’t sell the property. If a property you’d like to keep has significant equity, a Chapter 13 case will likely be a better option. But you’ll have to have enough income to pay a hefty monthly payment for three- to five-years (you must pay the value of the nonexempt equity in the plan).

Eliminating Liens in Bankruptcy

You can eliminate certain types of property liens in bankruptcy. For instance, you might be able to ask the court to:
• get rid of a judgment lien that impairs your bankruptcy exemptions, or
• wipe out a wholly unsecured junior lien from your property in Chapter 13 bankruptcy.

Unsecured Claims

A creditor with an unsecured claim doesn’t have a lien. There are two types of unsecured claims:
• Priority unsecured claims: These debts aren’t dischargeable in bankruptcy and, if money is available, the claim will get paid before non-priority unsecured claims.
• Non-priority unsecured claims. Most of these obligations are dischargeable in bankruptcy (except student loans). All priority debts must be satisfied before these debts can be paid with bankruptcy funds.

Non-priority Unsecured Claims

The bankruptcy discharge will eliminate most types of non-priority, unsecured claims, but not all. Some of the most common non-priority unsecured claims you can discharge in bankruptcy include:
• credit card debt
• medical bills, and
• personal loans.
Although student loans are unsecured debts, you can’t discharge them unless you can prove that it would be an undue hardship to pay them (which is a difficult standard to prove).

Priority Unsecured Claims

Priority unsecured debts aren’t dischargeable and receive special treatment. Priority creditors get paid before other creditors in bankruptcy.
The following are some of the most common types of priority claims:
• alimony
• child support
• certain tax obligations, and
• debts for personal injury or death caused by drunk driving.

Because you can’t wipe out priority debts in Chapter 7 bankruptcy, you’ll be responsible for paying any balance that remains after your Chapter 7 case (the bankruptcy trustee might sell some of your property and apply the funds to the debt). If you file for Chapter 13 bankruptcy, you’ll have to pay off priority unsecured debts in full through your three- to five-year repayment plan. The bankruptcy code generally exempts certain retirement funds from creditors. It makes sense when you consider why retirement accounts are protected. The government encourages retirement savings by allowing taxpayers to make qualified contributions to retirement accounts on a tax-deferred basis. The tax code is written to ensure that retirement accounts are not used as ordinary savings by penalizing withdrawals from the account until the account owner reaches age 59½. For this reason, the funds held in the account are not accessible and are protected from creditors.

Retirement Accounts

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 offer protection for contributions to and earnings in IRAs, including Roth IRAs, up to $1,000,000. The dollar limit is adjusted every three years and currently is $1,283,025. This applies to all such accounts (not applied per account) and is scheduled to be adjusted again on April 1, 2019. Company retirement plans that are subject to the Employee Retirement Income Security Act of 1974 (ERISA) are excluded from bankruptcy. The Supreme Court ruled1 that ERISA plans are excluded from an individual’s bankruptcy estate as provided under the Federal Bankruptcy Code2. This protection is provided for an unlimited amount of assets held in plans such as 401(k) and 403(b) company sponsored plans. SEP IRAs and SIMPLE IRAs are not subject to ERISA.

However, BAPCPA states these plans are excluded from bankruptcy for unlimited amounts and are not part of the aggregate total which applies to traditional IRAs and Roth IRAs. Rollover IRAs are also exempt from the cap. Since the funds from rollover IRAs originate from ERISA-qualified accounts, such as a 401(k) or employer pension, a rollover IRA is fully protected from creditors in bankruptcy.

No Federal Protection for Inherited IRAs

The courts have set a precedent of protecting assets from bankruptcy for individuals actively saving for retirement. Retirement assets received by other means have not received the same treatment. Federal bankruptcy law does not protect inherited IRAs. The U.S. Supreme Court ruled that an inherited IRA did not fit the meaning of “retirement funds” protected by bankruptcy:
• Beneficiaries of an IRA are not permitted to make contributions to the account, they may only take withdrawals.
• Beneficiaries must begin to take distributions regardless of their age (even though they may be years away from retirement).
• Withdraw the entire balance within 5 years of the original account holder’s death, or
• Take minimum distributions (based on life expectancy) until the fund is depleted.
• Beneficiaries can withdraw some or all of it at any time without a penalty.

It is assumed that the reasoning of the decision also applies to inherited Roth IRAs also note that if the beneficiary is a spouse, he or she may secure federal protection. If the spouse rolls over the account to his or her own IRA (or Roth IRA), the funds likely will be treated the same as if the spouse had funded the account. While there have been no cases or rulings on whether this gives the same protection to a spouse as an owner enjoys, there is a good argument for it.

IRA Asset Protection Planning

Notably, the different federal and state creditor protection given to 401(k) qualified plans and IRA, including Self-Directed IRAs, inside or outside the bankruptcy context presents a number of important asset protection planning opportunities.

For example, if you leave an employer who provides a qualified plan, rolling over assets from a qualified plan, like a 401(k), into an IRA may have asset protection implications. For example, if you live in or are moving to a state where IRAs have no creditor protection or have an excess of $1 million dollars in plan assets and are contemplating bankruptcy, you would likely be better off leaving the assets in the company qualified plan.

That is to say, if you plan to leave at least some of your IRA to your family, other than your spouse, your beneficiaries’ creditors may not be able to protect your assets. Of course, this depends on where the beneficiaries live. IRA assets left to a spouse are likely to receive creditor protection if you re-title the IRA in the name of the spouse. However, you will likely be able to protect your IRA assets that you plan on leaving to your family, other than your spouse, by leaving an IRA to a trust. Consequently, you must name the trust on the IRA custodian Designation of Beneficiary Form on file.

The IRA Asset & Creditor Protection Solution

In summary, by having and maintaining an IRA, you will have $1 million of asset protection from creditors in a bankruptcy setting. However, the determination of whether your IRA will be protected from creditors outside of bankruptcy will largely depend on state law. As illustrated above, most states will afford IRAs full protection from creditors outside of the bankruptcy context. So, IRA Asset Protection is a crucial part of your retirement planning. Most people don’t even consider what might happen to their retirement accounts in the event of an early demise, because most of us plan retirement with the idea that we’ll be around to enjoy it. But, like many aspects of estate planning, we must plan for the worst and hope for the best. Your retirement accounts can end up in probate if the proper steps are not taken prior to death.

• Naming the estate as the beneficiary – If for some reason a person wanted the funds from their retirement account to pass through probate then they could simply elect to have their estate be the beneficiary of the retirement accounts. This may be the case if the person wants the funds to pay off debt during the probate process. Usually, this is unlikely.
• Naming the spouse as the primary beneficiary – This is very common and usually the default method when naming a beneficiary. Upon death, the decedent’s retirement accounts would pass directly to the spouse, outside of probate.
• Designating alternate beneficiaries – Another important aspect of estate planning in regards to retirement accounts is being sure to have at least one or more alternate beneficiaries. In the event that the primary beneficiary, let’s say the spouse, for example, does not survive the death of the retirement asset owner, like if a husband and wife died in a car accident, then the retirement account and it’s funds would pass to the alternate beneficiaries. This is why it’s very important to update beneficiaries if there are any pertinent changes to the alternate beneficiaries that would affect the transfer of the retirement account.

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!

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews

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Your Ultimate Guide to Selecting the Right Divorce Lawyer

Divorce is a life-altering decision, fraught with a host of emotional, financial, and legal complexities. Often, it’s a path strewn with tough questions: Who gets custody of the children? How will the assets be divided? Who will pay alimony? All these concerns underscore the importance of having an experienced, skilled, and empathetic divorce lawyer by your side. The right divorce lawyer not only provides expert legal counsel but also becomes your advocate, navigating the labyrinth of legal procedures with you, and helping you secure the best possible outcome for your case.

But, how do you find such a lawyer? With a sea of attorneys out there, each advertising their “expertise” and “success rates,” finding the best divorce lawyer for your specific needs can seem like finding a needle in a haystack. The process can be daunting, but fear not – it’s not an impossible task.

In this comprehensive guide, we’ll walk you through step-by-step on how to choose the best divorce lawyer. We’ll cover everything from understanding your specific needs, beginning your search, evaluating potential lawyers, to making the final decision. Let’s get started, shall we?

Identifying Your Needs: Key Steps Before Starting Your Divorce Lawyer Search

Before you start looking for a lawyer, it’s critical to understand what you need from this divorce process. Not all divorces are the same, and different situations call for different types of legal representation.

If your split is amicable and you and your spouse have reached an agreement on most issues, you might consider mediation. This process involves a neutral third party (the mediator) who helps both parties reach a mutual agreement. However, it’s still wise to consult a lawyer to ensure your rights are adequately protected.

For more complex situations involving high assets, child custody disputes, or situations where there’s a significant power imbalance between the spouses, you’ll likely need a lawyer who specializes in contested divorces. These lawyers are well-versed in litigation and negotiation, helping ensure that your interests are represented in court if necessary.

Also, consider the personality traits you’d like in your attorney. You’ll be sharing personal details of your life with this person, so you want to ensure you’re comfortable with them. The best divorce lawyer for you is someone who understands your goals, communicates effectively, and puts your interests first.

Commencing Your Search for the Best Divorce Lawyer: Where to Look

Once you’ve outlined your needs, it’s time to start searching. Begin with personal recommendations. Friends, family members, or professional acquaintances who have gone through a similar process can provide invaluable insight into a lawyer’s style, strategy, and pricing.

Next, turn to the internet. An online search will yield a plethora of divorce lawyers in your area. Visit their websites to learn about their experience, areas of specialization, and client reviews. As you search, keep an eye out for lawyers who are certified specialists in family law.

Don’t overlook your local bar association. Most have referral services that can direct you to qualified divorce attorneys in your area.

As you build a list of potential lawyers, aim for a variety. Having options allows you to compare and contrast to find the best fit.

Evaluating the Expertise of Your Potential Divorce Lawyer

A crucial factor in your decision should be the lawyer’s expertise. Divorce law is a vast field, and you want an attorney who specializes in the areas most relevant to your case. 

Questions to Determine Expertise

Ask potential lawyers about their experience with cases similar to yours. How many have they handled? What were the outcomes? If your case involves complex financial matters or contentious child custody battles, you’ll want a lawyer with a track record in these areas. 

Also, consider whether the lawyer is familiar with the family law judges in your jurisdiction. This familiarity can help them develop strategies that align with specific judges’ ruling history.

Remember to ask about their courtroom experience too. While it’s true that many divorce cases settle out of court, you want a lawyer who is equally comfortable and effective in the courtroom should your case go to trial.

In the next part of the post, we’ll discuss how to evaluate potential lawyers and prepare for your first consultation.

Assessing Your Options: What to Consider When Evaluating Divorce Lawyers

Choosing the right divorce lawyer is about more than just experience and expertise. You’ll also want to consider the lawyer’s communication style, their fee structure, and past client testimonials.

Communication Style

Firstly, pay attention to how the lawyer communicates. They should be able to explain complex legal concepts in a way that’s easy for you to understand. You should feel comfortable asking them questions, and they should respond promptly and thoroughly.

Fee Structure

Next, let’s talk about fees. During your initial consultation, ask about the lawyer’s fee structure. Some lawyers charge a flat fee, others bill by the hour, and some use a combination of both. Make sure you understand how you’ll be billed and what services are included. Keep in mind that while cost is a crucial factor, it shouldn’t be the only consideration. The cheapest lawyer might not be the best fit for your case, and the most expensive might not provide the best service.

Client Testimonials

Finally, seek out client testimonials. These can provide valuable insights into the lawyer’s style, professionalism, and effectiveness. Look for reviews on the lawyer’s website, but also check independent review sites for a more balanced view.

Navigating the Initial Consultation: Key Questions to Ask Your Potential Divorce Lawyer

The initial consultation is your opportunity to learn more about the lawyer and how they can assist you. Come prepared with a list of questions. Here are some to consider:

– How long have you practiced family law?

– How many cases like mine have you handled?

– What’s your approach to a new case?

– What’s your strategy for my case?

– How will you keep me informed about my case’s progress?

– What’s your fee structure?

– Can you provide references from past clients?

Observe the lawyer’s demeanor during this meeting. They should seem interested in your case, listen attentively, and answer your questions clearly and patiently.

Sealing the Decision: Choosing Your Divorce Lawyer Wisely

After your consultations, take some time to reflect on what you’ve learned. Consider the lawyer’s expertise, communication style, fee structure, and past client testimonials. But also trust your gut – you’ll want a lawyer who you feel comfortable with and who you trust to advocate for your best interests.

Remember, the divorce process can be stressful and emotional. The right lawyer will not only provide expert legal advice but also help you navigate this challenging period with compassion and understanding.

The Road to a Successful Divorce Process: Summarizing the Steps to Choose the Best Divorce Lawyer

Finding the right divorce lawyer may seem daunting, but by understanding your needs, starting your search informed, evaluating potential lawyers thoroughly, and trusting your instincts, you can find a lawyer who is the best fit for you and your situation. 

Remember, the end goal isn’t just to ‘win’ your divorce case, but to emerge from the process feeling that your interests were well represented, and that you were treated fairly and respectfully. 

Reach Out to Ascent Law: Your Companion in the Divorce Process

At Ascent Law, we understand the intricacies of divorce law, and we’re here to help. Our experienced, compassionate team is committed to providing high-quality legal counsel tailored to your unique circumstances. If you’re seeking a divorce lawyer who will put your needs first, we invite you to contact us at (801) 676-5506 to schedule a consultation. We’re ready to stand by your side, every step of the way.

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Tax Planning Considerations

Tax Planning Considerations

Tax planning is the process of analyzing a financial plan or a situation from a tax perspective. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency. Tax planning is a significant component of a financial plan. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success. Tax planning comprises various considerations. Considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures. Also, the chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome. Tax planning plays an important role in the financial growth story of every individual as tax payments are compulsory for all individuals who fall under the IT bracket. With tax planning, one will be able to streamline his/her tax payments such that he or she will receive considerable returns over a specific period of time involving minimum risk. Also, effective tax planning will help in reducing a person’s tax liability.

Tax Planning Objective

• Reduce Tax Liability: The main purpose of tax planning is to reduce tax liability imposed on a person. Every individual wants to reduce their tax burden and save that money for their future plans. So an individual can do so by prior planning and can avail all the benefits to reduce his tax.
• Minimization of litigation: Taxpayers want to minimize his legal litigations. After consulting his legal advisor and adopting proper provisions of law for tax planning can minimize the litigation. This can save taxpayers from legal harassment.
• Economic stability: If a taxpayer paid all the taxes without legally due then it will create a more productive investment in the economy. Prior plans help taxpayers as well as the economy.
• Productivity: If a taxpayer is aware of all the tax compliance and does productive investment planning then it will create more tax saving options for him.
• Financial Growth: If tax planning is done in the right manner and is going in the right direction, it will help in financial growth with economic growth.

Features of Tax Planning

• Reduction in tax liability: One of the most important features of tax planning is to reduce tax liability. Every individual has done his financial plan so he can reduce his tax amount and can save for his future plans.
• Advance planning: One has to arrange his tax plans at the beginning of the financial year because no one can plan to reduce his tax liability day before filing an income tax return.
• Investment in the right direction: With the help of tax planning one can invest his money in the right direction by choosing the right policy. Investment in any assets or policy will not help in saving money from taxes, for this right investment should be done.
• Dynamic in nature: Tax planning has to be done every year because of the new implementation of policies introduced by the government. One has to modify his tax plans at the beginning of every financial year.

Tax Avoidance

Tax Avoidance is reducing tax liability in legal ways. Tax avoidance is done by taking advantage of loopholes of the law. Provisions of law interpreted in such a manner that it will avoid payment of tax. No element of mala fide motive present in tax avoidance. Even the Court in the support of the tax avoidance said that tax avoidance is not unlawful and the taxpayer can take its advantages. One can minimize his tax liability within the legal framework even by taking advantage of loopholes in the law.

Essential Features of Tax Avoidance are as follow;
• Legitimate arrangements should be in such a manner that will minimize the tax liability.
• Tax avoidance is in respect of legal provisions and carries no public disgrace with it.

Need of Tax Planning

Tax planning is essential to point in a person’s life. As the government imposed high tax rates so to reduce that tax liability, there is a requirement of tax planning. There are many schemes and offers provided in taxation law. One has to choose the right scheme where he can invest and avail the benefits of those schemes. Many Benefits are provided to assess like;
• Deduction under Section 80C
• Deduction for HRA
• Deduction on education loan
• Investment in senior citizen scheme
• Investment in mutual funds
• Investment in national saving schemes
• Any many miscellaneous schemes.

Tax Planning Benefits

Tax planning should be done to reduce tax liability but what are other benefits of tax planning? Let’s discuss here, a very important factor of tax planning and every individual or company focus on this factor i.e., to save tax. The main purpose of tax planning is to save capital from taxes and use it for the more beneficial purposes like invest in some beneficial scheme. Better to save the money at the beginning of the year by planning better to spend it in paying tax. One should avail the offers as much as he can, so he can spend that money in any other way or save for his future plans.

Methods of Tax Planning

• Short-Range Tax Planning: short-range tax planning involves year to year planning to complete some specific and limited objects. In this type of tax planning, one can invest in PPF or NSCs within the prescribed limit of income.
• Long-Range Tax Planning.- Short range tax planning, long-range tax planning are those activities undertaken by an assesses, which does not pay off immediately. This starts at the beginning or the income year to be followed around the year.
• Permissive Tax Planning: Permissive tax planning are permissible under a taxation law. In Utah, there are many provisions of law which offers deduction, exemption, contribution and incentives.
• Purposive Tax Planning: Purposive tax planning refers to those planning by which taxpayers can avail maximum benefits by applying provisions of law based on national priorities. So, the assessee can plan in such a manner that these provisions do not get attracted and it would increase disposable resources.

Tax planning for New Business

Any person or company can do their financial planning to reduce their tax liability. An individual can plan his tax liability by contribution in government schemes, deduction, subscription or any other exemption provided by law. But how can tax planning be done with reference to setting up of new business, financial management decision, employee remuneration, etc.

Many factors can affect the location of business for the purpose of better tax planning, there are some tax incentives provided by law-
• Free Trade Zone: Provides a deduction to newly established undertakings for which some conditions should be satisfied like- undertaking must begin manufacture/production in Free Trade Zone, the industrial undertaking should not be formed by the splitting up or reconstruction of a business already in existence except those undertakings.
• Hundred percent export-oriented undertakings
• Deduction in respect of profits and gains from certain industrial undertakings like- business of an industrial undertaking, operation of a ship, hotels, industrial research, production of mineral oils, developing and building housing projects, convention theatre, etc.
• Manufactured product under that undertaking
• Venture Capital Companies (VCC)
• Infrastructure Capital Companies
• Tea/Coffee/rubber development account
• Site restoration fund
• Amortization of telecom license fees
• Deduction in respect of expenditure on specified business
• Amortization of preliminary expenses
• Amortization of expenditure on prospecting of certain minerals
• Profits and gains from industrial undertakings other than infrastructure development
• Profits and gains of undertakings in a certain special categories of states
• Profits and gains from the business of collecting and processing of biodegradable waste
• Employment of new workmen

The legal form of Organization

One can decide tax liabilities under different organization forms while comparing other factors and tax incentives like how a person can reduce his tax liability by availing tax incentives provided under the law.

Capital Structure

Capital structure is the amount of debt or equity to fund the operation and finance assets of the company. By Capital structure shareholder’s return can be maximized. This structure is known as debt-to-equity or debt-to-capital ratio. Under taxation law, dividend on shares is not deductible; while the interest paid on interest borrowed capital is allowed as deduction.

Dividend Policy

A dividend is part of a profit which is distributed among the shareholders of the company.

Inter- Corporate Dividend

Deduction on the inter-corporate dividend is given where the total income of an assessee being a company includes any income by way of dividend received by it from a company or a company within Utah shall be entitled to a deduction from the income tax.

Bonus Shares

Tax consideration for equity shareholders and preference shareholders are as follow-
For equity shareholders, at the time of the issue of bonus share, there is no tax liability of the company as well as shareholders. But at the time of liquidation of the company bonus shares in the hands of the company will be treated as Dividend distribution and company has to pay dividend tax but that amount will be exempted in the hands of shareholders. In the case of preference shareholders, if the bonus shares issued before June 1, 1997, then there will be no tax liability for the company and for shareholders it will be deemed as dividend, and if bonus shares issued after June 1, 1997, then there will be no tax liability on shareholders and for the company it will be chargeable as dividend tax. At the time of redemption or liquidation, there will be no tax liability on the company and shareholders too.

Tax Planning and Managerial Decision

Tax planning affects managerial decisions too, like-
• Make or Buy- make or buy decision is based on the costing and non-costing considerations. A consideration which affects the decision is –
 Utilization of capacity
 Inadequacy of funds
 Latest technology
 The variable cost of manufacturing
 Dependence upon supplier
 Labor problem
 Other factors

• Own or Lease: if assessee obtains assets on lease then he can claim the lease rental as a deduction, but if he purchases that assets than he can claim depreciation on those assets.
• Purchase by Installment v. Hire: if assets purchased by installment then the deduction can be claimed. If assets are hired then the deduction can be claimed on hire charges.
• Renewal or Renovation: Before claiming a deduction for renewal, renovation, repair or replace, one should keep in mind whether the deduction for these considerations is available. If the deduction for revenue expenditure is allowed then tax liability can be reduced.

Tax Law

Tax attorneys represent clients before federal, state, and local taxing authorities, as well as individuals and businesses that are under audit by the Internal Revenue Service. Other roles of a tax attorney include structuring, negotiating, and documenting business entities, and advising clients regarding the tax implications of certain financing, joint ventures, tax-exempt organizations, taxation of compensation, estates, and gifts, and the U.S. taxation of international transactions.

Duties

Tax attorneys advise corporations and high net worth individuals with respect to all areas of tax law on a day-to-day basis. They monitor legislative developments and advise clients with respect to the potential impact of pending legislation on their businesses and their personal finances. They often work hand-in-hand with corporate in-house counsel. Some tax attorneys work exclusively in estate law. That might sound like a reach, but consider the significant federal estate tax rate, although only very valuable estates are subject to it. A firm understanding of tax law is required to navigate the labyrinth of various trusts, charitable foundations, and other estate-planning tools to avoid or mitigate an estate tax bill that could effectively derail a family business or otherwise leave very little for heirs to inherit. Tax attorneys might appear before federal, state, or local taxing authorities. At the federal level, the IRS is somewhat particular about who can represent a taxpayer should a problem or audit arises. Attorneys make the list of approved counsel, as do certified public accountants and enrolled agents. Enrolled agents are licensed at the federal level and must complete a very strenuous testing and application process. Attorneys are considered to have rights to “unlimited” representation of clients, meaning that they do not necessarily have to prepare the tax return that’s at issue in order to appear before the IRS or in a federal court on someone’s behalf.

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!

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews

Recent Posts

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How Long Does It Take To rebuild Credit After Chapter 7?

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Ascent Law St. George Utah Office

Ascent Law Ogden Utah Office

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source https://ascentlawfirm.com/tax-planning-considerations/

Utah Revocable Living Trusts

Utah Revocable Living Trusts

A trust is a legal entity that holds title to and manages assets for an intended beneficiary. A Living trust is distinguishable from other trusts in that you, as the grantor, can make changes to the trust or revoke it entirely during your lifetime. You can also act as the initial trustee of your living trust. Living trusts are most often used to avoid the probate process that comes along with passing property through a will. Because assets are owned by the trust, and not by you, they pass by the terms of the trust upon your death, making probate unnecessary. Trusts are complicated documents and estate planning attorneys can help you navigate through the legal nuances. In order to pass through the trust and avoid probate, assets must be re-titled into the name of the trust. For instance, if you want to place your home in the trust, you must change the deed so that the trust is named as owner. Once the deed is changed, it should be recorded with the registrar of deeds, and is subject to the same fees as any real estate transaction. These fees vary by state. You can check with your local registrar of deeds for your state’s fees associated with a deed transfer. Whether or not you choose to hire an attorney to draft your living trust, you will be responsible for the expense of titling assets to the trust. A living trust is an estate planning document created during one’s lifetime. A revocable living trust goes into effect during one’s lifetime and provides a way to manage one’s assets during his/her lifetime and to dispose of assets after they pass away. There are many reasons a living trust is preferable to a last will and testament. For example, when you create a living trust, you can avoid the time and expense associated with probate. While the estate’s assets are in probate, they may be frozen – a living trust avoids this as well. Individuals also choose to make a living trust to minimize tax consequences and for privacy concerns.

Types of Trusts In Utah

A trust is a legal document that can be created during a person’s lifetime and survive the person’s death. A trust can also be created by a will and formed after death. Common types of trusts are outlined in this article. Once assets are put into the trust they belong to the trust itself (such as a bank account), not the trustee (person). They remain subject to the rules and instructions of the trust contract. In essence, a trust is a right to money or property, which is held in a “fiduciary” relationship by one person or bank for the benefit of another. The trustee is the one who holds title to the trust property, and the beneficiary is the person who receives the benefits of the trust. While there are a number of different types of trusts, the basic types are revocable and irrevocable.

Revocable Trusts

Revocable trusts are created during the lifetime of the trust-maker and can be altered, changed, modified or revoked entirely. Often called a living trust, these are trusts in which the trust-maker:
• Transfers the title of a property to a trust
• Serves as the initial trustee
• Has the ability to remove the property from the trust during his or her lifetime\

Revocable trusts are extremely helpful in avoiding probate. If ownership of assets is transferred to a revocable trust during the lifetime of the trust-maker so that it is owned by the trust at the time of the trust-maker’s death, the assets will not be subject to probate. Although useful to avoid probate, a revocable trust is not an asset protection technique as assets transferred to the trust during the trust-maker’s lifetime will remain available to the trust-maker’s creditors. It does make it more somewhat more difficult for creditors to access these assets since the creditor must petition a court for an order to enable the creditor to get to the assets held in the trust. Typically, a revocable trust evolves into an irrevocable trust upon the death of the trust-maker.

Irrevocable Trust

An irrevocable trust is one that cannot be altered, changed, modified or revoked after its creation. Once a property is transferred to an irrevocable trust, no one, including the trust maker, can take the property out of the trust. It is possible to purchase survivorship life insurance, the benefits of which can be held by an irrevocable trust. This type of survivorship life insurance can be used for estate tax planning purposes in large estates; however, survivorship life insurance held in an irrevocable trust can have serious negative consequences.

Asset Protection Trust

An asset protection trust is a type of trust that is designed to protect a person’s assets from claims of future creditors. These types of trusts are often set up in countries outside of the United States, although the assets do not always need to be transferred to the foreign jurisdiction. The purpose of an asset protection trust is to insulate assets from creditor attack. These trusts are normally structured so that they are irrevocable for a term of years and so that the trust-maker is not a current beneficiary. An asset protection trust is normally structured so that the undistributed assets of the trust are returned to the trust-maker upon the termination of the trust provided there is no current risk of creditor attack, thus permitting the trust-maker to regain complete control over the formerly protected assets.

Charitable Trust

Charitable trusts are trusts which benefit a particular charity or the public in general. Typically charitable trusts are established as part of an estate plan to lower or avoid the imposition of estate and gift tax. A charitable remainder trust (CRT) funded during the grantor’s lifetime can be a financial planning tool, providing the trust-maker with valuable lifetime benefits. In addition to the financial benefits, there is the intangible benefit of rewarding the trust-maker’s altruism as charities usually immediately honor the donors who have named the charity as the beneficiary of a CRT.

Constructive Trust

A constructive trust is an implied trust. An implied trust is established by a court and is determined by certain facts and circumstances. The court may decide that, even though there was never a formal declaration of a trust, there was an intention on the part of the property owner that the property is used for a particular purpose or go to a particular person. While a person may take legal title to a property, equitable considerations sometimes require that the equitable title of such property really belongs to someone else.

Special Needs Trust

A special needs trust is one that is set up for a person who receives government benefits so as not to disqualify the beneficiary from such government benefits. This is completely legal and permitted under the Social Security rules provided that the disabled beneficiary cannot control the amount or the frequency of trust distributions and cannot revoke the trust. Ordinarily, when a person is receiving government benefits, an inheritance or receipt of a gift could reduce or eliminate the person’s eligibility for such benefits. By establishing a trust, which provides for luxuries or other benefits which otherwise could not be obtained by the beneficiary, the beneficiary can obtain the benefits from the trust without defeating his or her eligibility for government benefits. Usually, a special needs trust has a provision that terminates the trust in the event that it could be used to make the beneficiary ineligible for government benefits. Special needs have a specific legal definition and are defined as the requisites for maintaining the comfort and happiness of a disabled person when such requisites are not being provided by any public or private agency. Special needs can include medical and dental expenses, equipment, education, treatment, rehabilitation, eyeglasses, transportation (including vehicle purchase), maintenance, insurance (including payment of premiums of insurance on the life of the beneficiary), essential dietary needs, spending money, electronic and computer equipment, vacations, athletic contests, movies, trips, money with which to purchase gifts, payments for a companion, and other items to enhance self-esteem. The list is quite extensive. Parents of a disabled child can establish a special needs trust as part of their general estate plan and not worry that their child will be prevented from receiving benefits when they are not there to care for the child. Disabled persons who expect an inheritance or other large sum of money may establish a special needs trust themselves, provided that another person or entity is named as trustee.

Spendthrift Trust

A trust that is established for a beneficiary that does not allow the beneficiary to sell or pledge away interests in the trust is known as a spendthrift trust. It is protected from the beneficiaries’ creditors, until such time as the trust property is distributed out of the trust and given to the beneficiaries.

Tax By-Pass Trust

A tax by-pass trust is a type of trust that is created to allow one spouse to leave money to the other while limiting the amount of federal estate tax that would be payable on the death of the second spouse. While assets can pass to a spouse tax-free, when the surviving spouse dies, the remaining assets over and above the exempt limit would be taxable to the children of the couple, potentially at a rate of 55 percent. A tax by-pass trust avoids this situation and saves the children perhaps hundreds of thousands of dollars in federal taxes, depending upon the value of the estate.

Totten Trust

A Totten trust is one that is created during the lifetime of the grantor by depositing money into an account at a financial institution in his or her name as the trustee for another. This is a type of revocable trust in which the gift is not completed until the grantor’s death or an unequivocal act reflecting the gift during the grantor’s lifetime. An individual or an entity can be named as the beneficiary. Upon death, Totten trust assets avoid probate. A Totten trust is used primarily with accounts and securities in financial institutions such as savings accounts, bank accounts, and certificates of deposit. A Totten trust cannot be used with real property. It provides a safer method to pass assets on to family than using joint ownership. To create a Totten trust, the title on the account should include identifying language, such as “In Trust For,” “Payable on Death To,” “As Trustee For,” or the identifying initials for each, “IFF,” “POD,” “ATF.” If this language is not included, the beneficiary may not be identifiable. A Totten trust has been called a “poor man’s” trust because a written trust document is typically not involved and it often costs the trust maker nothing to establish.

Drawbacks of a Living Trust

A living trust does have unique problems and complications. Most people think the benefits outweigh the drawbacks, but before you make a living trust, you should be aware of them. Setting up a living trust isn’t difficult or expensive, but it requires some paperwork. The first step is to create and print out a trust document, which you should sign in front of a notary public. That’s no harder than making a will. There is, however, one more essential step to making a living trust effective: You must make sure that ownership of all the property you listed in the trust document is legally transferred to you as trustee of the trust. If an item of property doesn’t have a title (ownership) document, you can simply list it on a document called an Assignment of Property. Most books, furniture, electronics, jewelry, appliances, musical instruments and many other kinds of property can be handled this way. But if an item has a title document; real estate, stocks, mutual funds, bonds, money market accounts or vehicles, for example; you must change the title document to show that the property is held in trust. For example, if you want to put your house into your living trust, you must prepare and sign a new deed, transferring ownership to you as trustee of the trust.

Record Keeping

After a revocable living trust is created, little day-to-day record keeping is required. No separate income tax records or returns are necessary as long as you are both the grantor and the trustee. Income from property held in the living trust is reported on your personal income tax return. You must keep written records whenever you transfer property to or from the trust, which isn’t difficult unless you transfer a lot of property in and out of the trust.

Transfer Taxes

In most states, transfers of real estate to revocable living trusts are exempt from transfer taxes that are usually imposed on real estate transfers. But in a few states, transferring real estate to your living trust could trigger a tax.

Difficulty Refinancing Trust Property

Because legal title to trust real estate is held in the name of the trustee, a few banks and title companies may balk if you want to refinance it. They should be sufficiently reassured if you show them a copy of your trust document, which specifically gives you, as trustee, the power to borrow against trust property. In the unlikely event you can’t convince an uncooperative lender to deal with you in your capacity as trustee, you’ll have to find another lender (which shouldn’t be hard) or transfer the property out of the trust and back into your name. Later, after you refinance, you can transfer it back into the living trust. Most people don’t worry that after their death, creditors will try to collect large debts from property in the estate. In most situations, the surviving relatives simply pay the valid debts, such as outstanding bills, taxes and last illness and funeral expenses. But if you are concerned about the possibility of large claims, you may want to let your property go through probate instead of a living trust. If your property goes through probate, creditors have only a certain amount of time to file claims against your estate. A creditor who was properly notified of the probate court proceeding cannot file a claim after the period — about six months, in most states expires.

Benefits of a Revocable Living Trust

A living revocable trust serves as far more than just where assets are to go upon your death and it does that in an efficient way. Here are some of the reasons a revocable trust should be part of your estate plan.
1. Revocable trusts are changeable and flexible: Revocable living trusts allow you to make amendments at your own discretion. That can prove invaluable if your circumstances change or if you just aren’t sure who you want to name as your beneficiaries. That flexibility also makes these trusts a popular option if you are starting your estate planning young.
2. Revocable trusts cover your assets before your death: As outlined above, a living trust covers grantors during three phases of life. If you become incapacitated, your trustee can take over and manage your affairs. (Don’t worry: This person has a fiduciary duty to act in your best interest.) This happens automatically. You do not need to go through court proceedings or appointed conservators. Revocable living trusts also account for guardianship. You can stipulate living situations and spending habits for minor children in the terms of your trust.
3. Revocable trusts avoid probate: If you have a will when you die, your assets will go through probate. That is a court proceeding where your assets are distributed per your stipulations. Probate is a relatively slow process that that can take up to several months. If you own property in more than one state, your beneficiaries may have to go through multiple probates. The costs of going through probate can also cut down what your beneficiaries inherit. With revocable living trusts, probate is not necessary. Your successor trustee will be able to pass your assets on to your beneficiaries without the need to wait for a court order. That usually means a quicker and more affordable process for your beneficiaries.
4. Revocable trusts incur less cost and hassle down the line: Drafting a living trust usually requires more funds and effort up front because it’s a more complex legal document than a regular trust or will. So that means you will need to spend some time and money to properly set up and maintain your trust. However, that work can save you the headache and higher expenses associated with probate. Living trusts also tend to hold up better if someone contests a provision, potentially saving more money and time.
5. Revocable trusts provide privacy: After your death, wills and their requisite transactions enter into public record. Anyone can see what stipulations are in your will, who your beneficiaries are and what each beneficiary is inheriting. Estates in a living trust are distributed in private. No one can search the public records to see where your assets went. This protects the privacy of your assets as well as your beneficiaries.
6. Assets in revocable trusts receive FDIC protection: The FDIC (Federal Deposit Insurance Corporation) typically protects money in a bank account up to $250,000. However, that coverage amount goes up with revocable living trusts. According to the FDIC, the owner of a revocable trust account receives insurance of up to $250,000 per each beneficiary. The maximum insured amount you can have is $1,250,000, equal to $250,000 for the owner and each of four beneficiaries.

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!

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

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How Long Does It Take To Rebuild Credit After Chapter 7?

How Long Does It Take To Rebuild Credit After Chapter 7?

Chapter 7 is also called straight bankruptcy or liquidation bankruptcy. It’s the type most people think about when the word “bankruptcy” comes to mind. In a nutshell, the court appoints a trustee to oversee your case. Part of the trustee’s job is to take your assets, sell them and distribute the money to the creditors who file proper claims. The trustee doesn’t take all your property. You’re allowed to keep enough “exempt” property to get a “fresh start.”

Advantages of Chapter 7 Bankruptcy

Chapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works:
• It’s relatively quick. A typical Chapter 7 bankruptcy case takes three to six months to complete.
• No payment plan. Unlike Chapter 13 bankruptcy, a filer doesn’t pay into a three- to five-year repayment plan.
• Many, but not all debts get wiped out. The person filing emerges debt-free except for particular types of debts, such as student loans, recent taxes, and unpaid child support. You can protect property. Although you can lose property in Chapter 7 bankruptcy, many filers can keep everything that they own. Bankruptcy lets you keep most necessities, and, if you don’t have much in the way of luxury goods, the chances are that you’ll be able to exempt (protect) all or most of your property.
• You can keep a house or car in some situations. You can also keep your house or car as long as you’re current on the payments, can continue making payments after the bankruptcy case, and can exempt the amount of equity you have in the property.

Who Should File for Chapter 7 Bankruptcy

Chapter 7 works very well for many people, especially those who:
• own little property
• have credit card balances, medical bills, and personal loans (these debts get wiped out in bankruptcy), and
• whose family income doesn’t exceed the state median for the same family size.

You’ll take the means test to see if your income qualifies for this chapter. If your income is below the average income for a family of the same size in your state, you’ll automatically qualify. If your income is higher than the median, you’ll have another opportunity to pass. However, if after subtracting allowed expenses, including payments for child support, tax debts, secured debts such as a mortgage or car loan, you have income left over to make a significant payment to your creditors, you won’t qualify to file for Chapter 7 bankruptcy.

Chapter 7 Bankruptcy Requirements

Some debtors cannot file for Chapter 7 bankruptcy leaving Chapter 13 bankruptcy as the only option. You cannot file for Chapter 7 bankruptcy if both of the following are true:
• Your current monthly income over the six months before your filing date is more than the median income for a household of your size in your state.
• Your disposable income, after subtracting certain expenses and monthly payments for debts you would have to repay in Chapter 13 bankruptcy, exceeds certain limits set by law. These calculations are referred to as the “means test.” They determine whether you have the means to repay a certain amount of your debt through a Chapter 13 repayment plan. If you do, you flunk the test and are ineligible for Chapter 7 bankruptcy. The means test can get fairly complex, and, to make matters worse, uses unique definitions of “disposable income,” “current monthly income,” “expenses,” and other important terms, which sometimes operate to make your income seem higher, and your living expenses lower, than they are.

Bankruptcy laws were enacted to provide you with relief from your creditors by giving you a fresh start. This fresh start usually comes with a high price, namely, a major hit to your credit. But there are ways that bankruptcy can actually help your credit in the short and long term. This will depend on your credit score, financial circumstances, and other factors. A credit score is a number that supposedly summarizes your credit history and predicts the likelihood that you’ll default on a debt. Lenders use credit scores to decide whether to grant a loan and at what interest rate.

FICO scores—the most common type of credit score—range from 300 to 850. A FICO score is based on the information in your credit report, including:
• your debt payment history
• how much debt you currently have (including your debt-to-credit ratio)
• your different types of credit
• how long you’ve had credit, and
• whether you have new credit.

A high FICO score generally means that you’re good at managing your finances, while a low FICO score usually means that you have been delinquent with credit payments, have high unpaid debt balances, gone through a foreclosure, filed for bankruptcy, or experienced other problems repaying debt.

How Bankruptcy Affects Your Credit Score

When you file bankruptcy, your credit score can be negatively impacted almost right away. In fact, many consider bankruptcy as the worst impact to your credit score, compared to foreclosure and other debt collection actions. But no one knows exactly how much damage certain events, like bankruptcy, foreclosure, a short sale, or deed in lieu of foreclosure will do to your credit. This is due to many factors, such as:
• Credit scoring systems change over time.
• Credit scoring agencies do not make their formulas public, and your score will vary based on your prior and future credit practices and those of others with whom you are compared.
• Creditors use different criteria in evaluating consumers for credit, and these also change over time.
If you have a good credit score, but file bankruptcy anyway, you will probably suffer the most. That is because the higher your pre-bankruptcy score, the bigger the drop in your score after you file bankruptcy. On the other hand, if you already have a low credit score, bankruptcy won’t hurt your score that badly. According to FICO, a person who has a credit score of 680 prior to a bankruptcy loses 130 to 150 points following a foreclosure. But a person who has a credit score of 780 prior to a bankruptcy loses 220 to 240 points. So, if you already have a low score and file for bankruptcy, this could potentially make it easier for you to improve your score post-bankruptcy.

How Bankruptcy Can Help You Anyway

If you find yourself in a position where you must file bankruptcy, then your credit score is not as important as the reasons for having to file bankruptcy. Getting a new loan or credit card is not as pressing as, for instance, a pending wage garnishment or mortgage foreclosure. Nevertheless, after you have obtained bankruptcy relief, you may find that the bankruptcy may actually help your credit. This is so even though the bankruptcy will remain on your credit report for up to ten years.

Short-Term Positive Effects

In some cases, you might see immediate results on your credit after bankruptcy. Getting rid of “delinquent” account reports. If your credit report contained late payments and high credit balances, this is where a bankruptcy discharge can serve the greatest good. A bankruptcy will essentially wipe those debts clean. This is because debts that are discharged in bankruptcy must no longer be reported as “delinquent.” Instead, they will typically be reported as discharged or included in your bankruptcy. In some instances, this could even boost an already low credit score.
Improving your debt-to-credit ratio; the amounts you owe on accounts makes up roughly 30% of your FICO credit score.

An important factor in this analysis is the percentage of your available credit that you’re using. Bankruptcy might help improve your debt-to-credit ratio. This ratio is a comparison of your outstanding debt to your available credit balance. The lower your debt compared to your available credit, the higher your potential FICO score. If you have credit accounts with high credit limits, they are normally closed or frozen when you file bankruptcy. But if you reaffirm debts with low balances and good credit limits, or obtain new credit accounts after your discharge, this can potentially boost your FICO score. That is because you have little to no outstanding debt compared to available credit limits, which results in a favorable debt-to-credit ratio.

Long-Term Positive Effects

By wiping your debt history clean, bankruptcy gives you the opportunity to start over. You have another chance to get your finances right. If you budget properly and are disciplined with your money, you can lay the foundation for building good credit history. Following the bankruptcy, it’s a good idea to start re-establishing your credit as soon as possible. By not being burdened with the outstanding debt that you discharged in the bankruptcy, you should have more disposable income to make credit payments on time. If you establish a good track record of paying your new, post-bankruptcy debts on time, you can increase your credit score over time. This might happen as early as six months to a year after bankruptcy.

Budgeting After Chapter 7 Bankruptcy

Many people file for bankruptcy due to no fault of their own after experiencing an unexpected event, such as an illness, job loss, or divorce. Even so, everyone can benefit from cutting unnecessary costs and building a nest egg to fall back on; not just those who filed for bankruptcy to wipe out credit card balances. Reviewing your spending habits and making a comfortable budget is a commonsense place to start. Avoid buying items on credit that you can’t afford to pay for in cash. If you take out new credit cards, pay off most, if not all, of your account balance each month so that you don’t accrue interest.

Credit Scores After Chapter 7 Bankruptcy

Filing for bankruptcy comes with a downside; it can hurt your credit initially. Although a Chapter 7 bankruptcy will usually stay on your credit report for ten years, the impact goes down with time. Your bankruptcy won’t prohibit you from obtaining new credit and moving on with your life. If you’re like most, your case will move through the process in about four months, and you’ll be able to begin rebuilding your credit after receiving your bankruptcy discharge. In fact, most debtors start receiving new credit card offers shortly after they receive their discharge. Credit card companies realize that your discharge will free up money for other bills, so you’re more likely to pay back your debts after bankruptcy. Plus, you won’t be able to wipe out debt again using the bankruptcy process for several years.

Rebuilding Credit After Chapter 7 Bankruptcy

Keeping your available credit high is a factor that drives up your credit score, along with maintaining a mix of credit types, such as a home loan, car loan, and credit card accounts. So when you begin using credit again, you’ll want to keep balances below 30%. You will typically begin to receive new offers for credit after bankruptcy. However, be aware that many new credit card offers will have low limits, high-interest rates, and high annual fees. Reviewing the offer terms carefully before signing up for a new credit card after bankruptcy is essential. The goal is to accept a credit card with the highest possible limit because credit reporting agencies rate you based on your total available credit. Not only can lower limits can harm your score, but you’ll want to pay off the majority of your balance each month. If you don’t qualify for a typical, unsecured credit card, you might want to start rebuilding your credit by getting a secured credit card from your bank. You’ll deposit a certain amount of money in the bank as collateral for the card. In exchange, you have a line of credit equal to the amount in the account. A secured credit card rebuilds credit because the creditor typically reports payments on your credit report—you’ll want to be sure that will happen.

Also, it’s essential to examine your credit report for mistakes after your discharge. If you notice an error, correct it promptly so that it doesn’t derail your efforts to rebuild your credit. You can check your credit report for free using annualcreditreport.com (use the official site, not a lookalike). You’re entitled to one free copy per year from each of the three reporting agencies. Requesting a report from one of the three agencies every four months is an excellent way to keep track of changes. Also, all of the three reporting agencies allow you to file a dispute online. Your payment history, on-time payments, and recent credit reporting can all affect how lenders work with you. Once you file bankruptcy and businesses see your credit report’s negative information, you may have concerns about:
• Getting a car loan
• Buying a house or renting an apartment
• High-interest rates on financing
• Low credit limits on unsecured credit cards
• Student loan repayment schedules
• Penalties for late payments
• Credit utilization for anything but necessities
• Getting large cash deposits
• Getting loans without a qualified co-signer
• Adding authorized users to some credit cards
• Security deposits and returns of safety deposits

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!

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews

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Utah Boating Accident Attorneys

Utah Boating Accident Attorneys

Millions of people every year enjoy boating, jet skiing, and other forms of watercraft. Unfortunately, one wrong move can lead to a motor boat accident. Depending on the conditions and severity of the accident, a motor boat injury could be sustained as a result. Boating accidents result from inexperience, intoxication, equipment failure, poor weather conditions, and simple driver error. The law requires boat operators to exercise a great deal of care and caution when out on the water. When failure to do so leads to injury or wrongful death, they can be held responsible for the aftermath.

Some of the most common types of Utah boating accidents include:
• Drug and alcohol accidents
• Wakeboarding, tubing, or waterskiing accidents
• Parasailing accidents
• Boat collisions
• Commercial fishing boat accidents

Boat accident lawyers can help with all these cases. If you’ve been injured as the result of a boating accident, you may deserve compensation for your compromised health. Almost any Utah boat accident lawyer will tell a client that it is far better to aim for a settlement than a trial. Trials are expensive, lengthy, and have uncertain outcomes.

While you may not get as high of compensation through a settlement as you would have in a trial, the money will come quicker, and the risk will be removed. Because every boating accident is unique, it’s difficult to pinpoint how much money you can settle for. There are two ways to go about arriving at a settlement. The first is to negotiate directly with the person at fault or their insurance company. If the circumstances of the accident are fairly straightforward and show the driver was in neglect, the insurance company will be eager to settle the case. The wiser choice is to seek the advice of a boat accident attorney before moving forward with settlement negotiations. A Utah motor boat injury attorney with experience and expertise in the field will be able to evaluate the case and determine if the potential is there for greater compensation. The boat accident lawyer will be able to argue on your behalf and likely raise the settlement amount.

Legal Fees

Most boat accident attorneys structure their fees on a contingency basis. In other words, their fee comes from the eventual settlement or award. It costs nothing out of pocket for the client. Many of these attorneys will also waive their initial consultation fee, meaning it costs nothing for you to bring your case to them. Seek the advice of at least two or three lawyers before you decide to seek your settlement directly. If you have a strong connection with an attorney during your meeting, hire them. Let them deal with the stressful process.

Compensation

Should your case prove successful, the opposing party may be required to compensate you in several arenas. Here are the most common areas of compensation:
• Medical Bills: Getting treatment after a boating accident can be expensive. Even if you’re properly insured, deductibles and coverage limits could force you to spend much of your own money. Every year, thousands of people are forced to declare bankruptcy from hospital bills alone. Compensation can be used to cover these medical bills, rehabilitation costs, and other expenses related to treatment. If you’ve been injured in a boat accident, these costs may be exorbitant.
• Lost Income: If the boating accident has left you unable to perform your job duties or forced you to take time off from work, the opposing party may have to compensate you for lost income. If a doctor can attest that your injuries are directly responsible for the missed work, it may be incumbent upon the defendant to pay for the lost time. If the accident left you permanently disabled, the compensation may have to be great enough to cover future lost wages as well. This takes away the financial stress of having to miss work.
• Pain and Suffering: Many states have done away with punitive damages in these personal injury cases, but pain and suffering can still be a factor when a jury considers their verdict. A traumatic boating accident could lead not just too physical pain but to emotional anguish as well. Professional therapy is sometimes needed to find ways to cope with this mental pain. Compensation can be used to pay for this treatment.

Claim Process

To successfully bring a boating accident case to fruition, there are some steps you should follow. The first step is to file a boating accident report with the correct law enforcement body. The faster you can get a legal record of the incident in the system; the better off you’ll be when it comes time to talk compensation. Next, gather as many names and phone numbers of witnesses that you can. Take photographs of the accident, your injuries, and any property damage that occurred as the result of the boat crash. Seek medical attention for your injuries. This may be the first step if your injuries are severe. Always worry about your health first. Lastly, take copious notes about what you remember. Memories are unreliable and can change over time. If you have notes to look back on, it will prevent you from misremembering later. Boat accidents come in all stripes, sizes, and types. Whether you’ve been injured at sea or simply want to keep yourself abreast of the hazards, it can be instructive to know something about common forms of boat injury.

The three primary boat accident categories are those that occur due to:
• An error on the driver’s part
• Equipment failure
• Environmental factors

Of the three, operator error accounts for the biggest slice of the pie. Boating injuries can result from incompetence, inexperience, alcohol and drugs, rule violations, and other forms of negligence. It is also worth noting that not all accidents have a single point of blame. In many cases, two or more factors may come into play. If this is the case in your accident, don’t let that stop you from seeking compensation. A good boat accident attorney can make a case for you even if you share in some of the blame. Leave it to a judge, jury, or impartial panel to decide who most at fault in the accident was.

Prevent Boat Accidents: Follow Boating Safety Guidelines

Boating should be a fun and safe experience for everyone. Here are some standard guidelines to further prevent boating accidents:
• Remain Sober: By consuming drugs or alcohol while boating, you significantly increase your chances of being involved in a boat accident. Statistically 35% of boating accidents that resulted in a fatality involved drugs and/or alcohol, and 20% of all boating accidents have reported to involve drugs or alcohol.
• Regularly maintain and safety equipment: Standard boating safety equipment includes life jackets, fire extinguishers, first aid kits, lights, flotation devices, an anchor, and emergency supplies.
• Learn standard boating safety: Regularly check exhaust. Carbon monoxide exposure is deadly and can lead to a boating accident. Maintain and test carbon monoxide detectors on each voyage. Regularly inspect your boat for damage, cracks, or leaks.
• Make necessary safety preparations: Always tell someone where you are going if you are leaving on a boat trip. Do not overload your boat because excessive weight can affect the boats performance and potentially cause a boating accident. Follow proper boat launching etiquette to ensure your safety and the safety of others.
• Wear a life jacket: In almost all fatal boating accidents, the victim was not wearing their life jacket. If you become injured and are unable to swim a life jacket can save your life.
• Follow standard navigation and boating rules: This can help avoid accidents with other boats or boating accidents involving stationary objects such as buoys, rocks, ramps, etc.
• Stay Observant: Keeping a watchful eye can help avoid boat accidents and keep you and your passengers safe from injury. Weather and water conditions and the locations of other boats must be paid attention to at all time, negligence of these things are often responsible for boat accidents.

Boat Accidents and Injuries: Laws

Boating laws vary from Utah to the east coast, but there are some general rules regarding negligence that tend to stay somewhat uniform. Before you purchase or rent any watercraft, know the law for your safety and the safety of others. If you’ve been injured as the result of someone else’s negligence, the law states that you have the right to seek reasonable compensation. In a case like this, evidence should point to carelessness or malicious intent on the part of the driver at fault. In order to reach an agreeable settlement, the plaintiff must show that monetary damages occurred as the result of the accident. With the assistance of a good boating accident lawyer, you can fight for your rightful compensation.

Reporting and Documenting

Federal law requires that if you have been involved in a boating accident which resulted in an injury or damage exceeding 2,000 dollars that you must file a report with your state boating authority and local law enforcement. Here are the precise requirements to report a boating accident within 48 hrs:

If a person dies due to the boat accident

• Any person needs medical attention outside of standard first aid
• A person has disappeared as a result of the boat accident
If no one was harmed during your boat accident, you are required to file a boating accident report within 10 days if there is damage to the involved boats or someone’s property.

Common Types of Boating Accidents

• Commercial Boating Accidents: When you make your living on the water, every day presents unique dangers. Careless operations, equipment failures, and deck fires are just a few of the ways in which seamen can suffer life-changing injuries. Whether you work on a tanker, barge, tugboat, or any other commercial vessel, a serious injury can keep you laid up and out of work for a long time.
• Jet Ski Accidents: Jet skis and other personal watercraft can be fun and exhilarating. But a combination of speed, water conditions, and a lack of experience or instruction can lead to tragic consequences. So too can operating such craft under the influence of alcohol or drugs or while disregarding basic safety rules. Being so close to the surface and fully exposed with minimal if any protective gear, Jet Ski operators are particularly vulnerable to serious injuries or death.
• Yacht Accidents: Money may be able to buy you a beautiful yacht, but it doesn’t necessarily buy owners or operators of yachts the proper training and experience to safely operate such large and hard to maneuver vessels. This, along with many other factors such as speeding, ignoring safety rules, failing to maintain the vessel, and failing to follow navigational rules, can lead to injuries to passengers as well as those on other boats. No matter the cause or nature of injuries caused in a yacht accident, a good lawyer can help victims of boater negligence get compensation for their injuries.
• Shrimping and Fishing Boat Accidents: Boat owners owe their crewmen a duty to provide a safe working environment, which includes maintaining and operating the boat properly. If fishing or shrimping boat crewman is injured through negligence, he may claim damages for lost wages, lost earning capacity, pain and suffering, disability, disfigurement, and medical expenses.
• Pontoon Boat Accidents: Among the types of boating accidents to consider, one type relates to pontoon boats. Pontoon boats are perfect for a relaxing afternoon on the water, but the fact that they aren’t built for speed like other types of boats doesn’t mean they are free from danger. In fact, passengers on pontoon boats may be even more at risk for injuries. More people die in pontoon boat accidents every year than in Jet Ski accidents, for example. That can be due to conduct such as “bow riding,” or sitting outside railings on the edge of the boat, dangling feet over the side. This can lead to drowning, propeller accidents, and run-over accidents. Poor training, alcohol use, and failure to follow safety rules can all contribute to pontoon boat injuries or deaths. Operators of the boat as well as concessionaires who rent pontoon boats can be held accountable for their negligence.
• Marina and Dock Accidents: Not all boating accidents happen away from shore. Dockworkers, longshoremen, and others who work or are present on marinas or docks can be injured when boats or other equipment are operated or maintained negligently. Workers may have remedies under the Jones Act and other federal law, and we have the experience and knowledge of dock operations to effectively obtain compensation for our injured clients.
• Party Boat Accidents: It’s no surprise that alcohol can be the culprit in many party boat accidents, whether it is an intoxicated operator who causes a collision, or a drunk passenger who falls overboard. But other factors may lead to serious injuries as well, and when those injuries are the result of negligence on the part of the owner, operator, or others responsible for the boat, we fight to hold those parties responsible.
• Waterskiing and Towing Accidents: Being pulled behind a boat at high speed can result in horrific injuries when vulnerable and unprotected individuals crash into the water, other boats, or other objects such as docks and wharfs. If the driver of the boat acts recklessly or in violation of safety rules, they can be held accountable for the injuries they inflict on those who put their trust in them.

Types of Boating Injuries

This includes obtaining compensation for those injured in:
• Propeller Accidents – serious lacerations, dismemberment, and internal injuries are just a few of the impacts that the sharp, rapidly spinning blades of a propeller can inflict on those in the water as well as those on the boat.
• Run-over Accidents: Swimmers or passengers who fall overboard can suffer traumatic brain injuries, spinal injuries, disfigurement, and death when run-over by a boat.
• Overboard Accidents: When passengers or workers fall overboard, the impact can not only seriously injure them but can also render them unconscious. This, along with rough water conditions or an inability to swim, can lead to drowning.
• Drowning Accidents: Any time spent on a boat can lead to time spent in the water unexpectedly. Dangerous conditions, lack of life jackets or ability to swim, and injuries which interfere with a person’s ability to stay above water can cause drowning accidents.
• Slip and Falls on a Vessel: As do owners of property on land, boat owners and operators must keep their decks and other surfaces free from slip and fall dangers which can lead to serious injury.
• Crew Member Accidents: The nature of the work and equipment used on commercial vessels present constant dangers to crew members.

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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!

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