Posts Tagged ‘assets’

5 Reasons You Should Make A Will

November 10th, 2010

It’s easy to put off making a will, but if you die without one your assets could be distributed according to the law rather than by your wishes. The process of “intestate” can be extremely complicated and take a long time to be resolved. No matter how many possessions or how much money you consider yourself to have, it is important to draw up a will for these reasons:

1. Legal obligations dictate how the money, property and possessions should be allocated if you die without a will. This could cause upset and distress to certain members of your family as they may not inherit what they hoped for.

2. Unmarried or cohabiting partners will have no entitlement to inherit unless there is a will in place. The death of a partner could cause significant financial problems for the remaining partner. In some circumstances assets such as the house could be taken from them with no compensation or home.

3. It is especially important to stipulate your preference of childcare in the event of your death if you have children under 18 years of age. Failure to do so could mean that the children end up living with family members that you would have not wanted or even ending up in a care or foster home.

4. It will benefit the finances of family members if you write a will. Inheritance tax is significantly less when considerations are made in advance.

5. If you have a will already you should regularly make sure that it is up-to-date. There have been cases in which an ex-wife has received all of the inheritance as they have not been removed from the will.

Writing a will can be a simple process with the help of a solicitor. The Citizens Advice Bureau can provide you with lists of local solicitors.

Walker Smith Way are collaborative lawyers who can assist with Wills Cheshire


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How To Claim Bankruptcy – What You Should Think About

September 21st, 2010

Where an individual or legal entity can no longer afford to service or repay their debts, a state of bankruptcy exists. In light of the recent economic downturn many people are looking to find out how to claim bankruptcy. Here are a few of the advantages and disadvantages of filing.

However, a bankruptcy petition is sometimes not a matter of personal choice. A creditor can file a Bankruptcy Order against a debtor, and bankruptcy proceedings will continue even if the individual against whom it has been served ignores or disputes it.

The process itself is fairly straightforward, but bankruptcy should only be entered into as a very last resort, as it’s effects are far reaching and life changing.

So what should one be aware of in filing for bankruptcy?

Not all debt can be removed – alimony payments and taxes are two things that have to be repaid, but under chapter 7 bankruptcy laws an individual will usually come out free of debt, which is why chapter 7 is the most preferred option.

There are a couple of disadvantages with this however.

The first and most difficult is the fact that virtually all your worldly goods are sold and the money disbursed amongst your creditors, leaving you with very little.

The second is that although any remaining debt is cancelled, those who you have not repaid in full will likely as not, be very reluctant to engage in any financial activity with you in the future.

This may not necessarily be the case though, as the above refers to the chapter 7 bankruptcy laws.

Anyone filing for bankruptcy now has to complete a financial means test.

Should you fail the means test, (your income is deemed sufficient to be able to repay your debts over 3-5 years), and your income is found to have been above the median for a family of your size in your state over the past 6 months, you are precluded from filing chapter 7 and have to file under chapter 13.

No personal property is liquidated under chapter 13, but all debt is repaid under a 3-5 year repayment plan.

The main disadvantage of Chapter 13 bankruptcy rules is that the repayment schedule can be pretty harsh. The means test is complex and government has it’s own definitions for “allowable expenses”, “disposable income” etc, which can often serve to make your income appear higher than it is, and making a repayment plan quite difficult.

As far as an individual’s credit score is concerned, chapter 13 stays on record for 7 years and chapter 7 for 10 years.

Should you require more free inShould you requiremation on how to claim bankruptcy and the different chapters and how they work, go to www.howtoclaimbankruptcy.net Free reprint avaialable from: How To Claim Bankruptcy – What You Should Think About.


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Protect Your Personal Property With Liability Insurance

September 20th, 2010

Your liability assets are the strongest part of your financial background. They are also your most endangered assets because they can be involved in unexpected accidents. You want to make sure you’re prepared for these accidents by protecting yourself with insurance.

Your house or car is an asset, and no matter how careful you are with them, they can be involved in unwanted accidents. These accidents can produce annoying lawsuits accusing you of negligence or reckless endangerment and demanding huge compensation and even punitive damages.

Obtaining liability insurance for your vehicle and property will act as asset protection and help you cover costs that may accrue in the event of an accident.

Alternatively when you are a small business owner you may find yourself responsible in the event that an employee were to have an accident while at work. No matter how safe your employees behave on the job there is always the chance an accident could occur. If you have not insured your business you would responsible for any payouts.

An on the job accident could be an employee who slips on some water on the floor or falls on the stairs.

When you have liability insurance you can rest assured that you are covered financially in the event of a lawsuit. Without the insurance you would be financially responsible yourself.

In addition to insuring your small business you can set the business up as an LLC (limited liability company) which helps to protect your personal assets in the event of an unforeseen accident.

Educating yourself on the options available to you is another great way to keep your assets from being taken away. Learning about the law surrounding chapter 13 bankruptcy is a great example because it could keep you from losing your assets.

Chapter 13 bankruptcy can help you keep your assets. It is possible to stop foreclosure by planning a new payment schedule against your mortgage and lowering payments over a 5 year period. This is a good example of why it is so beneficial to understand the law.

You can use chapter 13 bankruptcy as another method to insure your assets are safe.

Looking to find a qualified attorney, then visit www.changandcarlin.com to find the best advice on chapter 13 bankruptcy for you.


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Filing Chapter 7 Bankruptcy Will Give Relief From Creditors

September 20th, 2010

When you have overdue debts creditors can become quite a nightmare. If you get to a point where your bills are too overwhelming and there is no reprieve in sight then it may be time to consider chapter 7 bankruptcy.

Filing chapter 7 bankruptcy will settle your unpaid debts. Creditors are going to leave you alone during the process and before long you will be discharged of the old debt can start working towards a debt free future.

By filing chapter 7 bankruptcy, you are asking the court for help in settling all your debts. Once you qualify, the court will then appoint a trustee to handle your case.

You will place all your assets and properties in the control of this trustee whose job is to liquidate it or transform it into cash. The trustee will apply the money to your debts.

Your trustee will not leave you in the dark or on the street. A portion of the cash garnered from the sale of your things goes to paying your expenses. After you are all set creditors get their payments.

If you happen to be in a trade where you personally own a lot of tools and items necessary for you to make a living then there is a good chance that those items would be spared during liquidation. Since you will probably be working during the bankruptcy proceedings that income will also be untouchable and yours to keep.

Because there are a lot of details involved in this process you will want an attorney experienced in chapter 7 bankruptcy in your corner.

Your attorney is important to your quest in getting a discharge as he will guide you every step of the way in this complex legal process.

He will start by asking you to take the “means test”. This test determines whether or not your income is equal to or lesser than the average state income. The means test is a requirement before you are allowed to file your petition for bankruptcy.

Once the court grants your petition, the “automatic stay” comes into play. That means your creditors are then lawfully prevented from pursuing anymore collection activities targeting you. They will instead be pointed to the direction of your trustee.

Filing chapter 7 bankruptcy is your simplest and fastest way out of bankruptcy. You can get a discharge usually after 4-6 months.

Learn more about chapter 7 bankruptcy. Stop by David Chang’s site where you can find out all about bankruptcy attorneys and what they can do for you.


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Some Facts Regarding Chapter 13 Bankruptcy

July 12th, 2010

Whilst many jobs have been lost during the past year in response to the global economic crisis, many analysts now feel that the world economy is becoming more stable. However, as economies improve, the improvement in the jobs market often lags behind. It is therefore very likely that the number of people claiming bankruptcy will continue to rise.

Both businesses and private individuals file for bankruptcy, and there are a number of types of bankruptcy, called “chapters” that they can both file under. One of these is called “Chapter 13″. This is often used by a business that does not want to go into liquidation, but wants to trade its way out of its financial problems. For example, filing under a chapter 7 bankruptcy means that all the assets are sold off to pay the debtors, and any outstanding debt is then written off (there are some exceptions), allowing the business or individual a “clean slate”.

By filing under chapter 13, one’s credit rating, although severely damaged, is not as badly damaged as under a chapter 7 filing, and no personal or business assets are lost.

A business can therefore trade its way out of its financial problems, without having to sell stock or equipment.

Unlike a chapter 7 bankruptcy, chapter 13 is basically a repayment plan, worked out by the court and with the agreement of the creditors, which aims to repay outstanding debts by rescheduling them over a 3-5 year period. Conditions can seem a little harsh, but the business stays afloat and looks forward to better times after the repayment period has been completed.

As long as the repayment plan is adhered to by the individual or business, the creditors may not pester the business or individual for payment.

Anyone who applies for a chapter 7 bankruptcy has to undergo a means test. This is to make certain that they do not have sufficient income to repay their debts in full over time. If they do, then they are forced into a chapter 13 bankruptcy, in order to repay their debt over time.

Before claiming any sort of bankruptcy however, proper financial advice should be sought to try and avoid this drastic step.

Before declaring yourself bankrupt, it’s vital that you consult with professional adviser regarding your financial position. This is because declaring yourself bankrupt has serious implications for you credit score and general financial position in later years.


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Feeling the Financial Squeeze? How to Claim Bankruptcy

May 11th, 2010

Filing for bankruptcy should be a last resort.

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act brought in legislation making it compulsory for an individual to obtain credit counselling within 180 days of filing for bankruptcy.

By having counselling, an individual is made aware of the alternatives to bankruptcy, which may be suitable in their case.

There are a number of bankruptcy types (called “chapters”), but Chapters 7 and 13 are the most common.

Chapter 7 is often regarded as being the best option. The downside is that most all personal assets have to be sold, including any familly home.

However, after all relevant assets have been liquidated, any outstanding debt (there are exceptions, such as tax), is cancelled, allowing a totally fresh start.

If an individual does not want to be forced to sell all their assets, chapter 13 bankruptcy removes this need altogether, by putting in place a repayment plan, debts being paid in full over a 3 – 5 year period.

Some individuals file for chapter 7, despite having sufficient income to enter into a chapter 13 repayment plan. To ensure that repayment is made when ever possible, the legislation introduced in 2005 requires all applicants for chapter 7 to complete a means test

Not hiring a lawyer is a false economy. You will need help to fill in your details for the BAPCPA’s means test and a lawyer will help decide the most advantageous form of bankruptcy to file under.

Appointing a lawyer instantly triggers what is called “automatic stay” and is a form of protection from creditors in that they can thereafter no longer pursue you directly for payment of debts – they have to deal directly with your lawyer.

Your lawyer will reuire you to make lists of both money you owe, and assets you own, which are later reviewed at a creditor’s meeting at which time the veracity of your financial position is examined and you are recorded answering questions on oath.

In a chapter 7 case, the court decides whether there are assets that can be sold to pay creditors. Once these assets are sold and the money distributed amongst the creditors, any outstanding debts are wiped out.

In a chapter 13 case, a repayment plan is made, paying all creditors in full over 3 to 5 years, based on your actual ability to pay according to the means test.

Under chapter 13, the notice of discharge is served 30-60 days after the repayment plan has been completed and fulfilled. Under chapter 7, creditors can legally challenge the discharge on the 60th day after the meeting of Creditors. If no representations are made, notice of discharge is issued a few days later.

If you are thinking about how to claim bankruptcy, I recommend have a look at www.howtoclaimbankruptcy.net for more free information, including advice on how to restore your credit score after bankruptcy has been completed. Get a totally unique version of this article from our article submission service


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Why Should I Have A Will

March 22nd, 2010

It is not the law to have a will but if you don’t have a valid, signed and witnessed will, your property, money and personal effects will be relocated by the government. Dying without a Will is considered dying ‘Intestate’, meaning that when you die, the government will get some if not all of your estate.

You will need a correctly authored and witnessed Will to guarantee your estate is spread as you wish. Doing this should reduce the burden of inheritance tax, and ensure that suitable guardianships and care arrangements are made for children.

The common misconception is that only the super rich will be affected by inheritance tax but the fact is that anything above the value of 325,000 is taxable at 40% with no regard to the income of the inheritor. The tax subtracted is given directly to the Inland Revenue.

Roughly 10 million people in the UK could be suffer the wrath of huge inheritance tax bills, by planning a will you could avoid the frustration of inheritance tax and decide how your assets are disposed of. Around 67% of the UK population does not have a will and the benefits are benefits are vastly underestimated. Writing a Will is the first and most important part of any estate planning.

The general misunderstanding is that without a will your assets will fall to their next of kin or children by default. Regrettably, legislation will see some or all of your entire estate going directly to the government.

Before writing a will you need consider a variety of issues such as the total value of your assets, do you have a plan if you and your spouse die at the same time? Who will take care of your children or you if you become mentally incapacitated? Most lawyers will be able to help answer those questions and manage your will; you need to choose carefully as those people will become legally responsible for the distribution of your assets in the event of your death.

If you are looking for a qualityCheshire solicitor then talk to Oneill Morgan for advice on Wills and Probate.


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