Why You Should Hire a Business Attorney When Changing a Business Entity

Like other aspects of life, businesses change and grow. If your business is evolving and you are considering changing your business entity, it is essential to understand the procedural requirements, tax implications, and liability considerations of each type. A corporate business attorney can evaluate your circumstances and advise you on which option will best meet your needs and protect your interests.

Why Change Your Business Structure?

For many small business owners, a sole proprietorship or informal partnership is appropriate when first starting out. Although these structures can be effective for a company with one or two people, if a business starts to grow, hires employees, or wishes to woo investors, an LLC, partnership, or corporation provides protections and benefits that make more sense.

Considerations for Choosing a Business Entity

Before changing your business structure, it is vital to consider several elements, including:

• Taxation
• Liability
• Forms and fees
• Investment needs
• Operational continuity

All of these components should be taken into account when creating a business succession plan as well. Seeking the advice of an experienced business lawyer can help to ensure that important details are addressed so you do not choose a structure that could end up affecting your business negatively.

In rare cases, a business owner may decide to go from a more complex business structure to a simpler one, which can be challenging. An attorney can help you understand the common taxation, liability, and legal issues that may arise, depending on your specific situation.

A Lawyer Can Help with Paperwork and Procedures

If you are changing to a more complex structure like a corporation or LLC, you must register it with the state in which you do business. You may also need to update your Employer Identification Number (EIN) and file a DBA (doing business as) form. An attorney can help you complete this paperwork and send it to the proper government agencies.

In addition, LLCs and LLPs require formal operating agreements. These agreements outline the rights and responsibilities of the owners of the company.  It is important to make sure these agreements are sound and all your legal bases are covered. A business lawyer in West Chester will know what is required by state and federal authorities like the IRS and can help you draft an agreement that includes all relevant information.

Changing to a Corporation

If you’re switching to a corporation, there are certain legal requirements that must be met. You must file articles of incorporation with the state and appoint officers of the company, such as a president and secretary. You will also need to choose a board of directors. Corporate bylaws, which lay the ground rules for operating your corporation, should also be prepared. Stock may be issued and a shareholders agreement must be created. Having an attorney help you draft this vital document ensures that the rights and responsibilities of the owners and other important information are clearly stated in the shareholder agreement.

Regardless of which type of entity you choose, the seasoned business attorneys at Carosella & Associates can help you get it right and provide the legal guidance you need throughout the process.

This blog was originally posted at https://carosella.com/blog/why-you-should-hire-a-business-attorney-when-changing-a-business-entity/

How to Settle Contract Disputes Out of Court

Contract disputes are very common in almost all business sectors. Most contract disputes are settled out of court, as litigation is time-consuming and costly. Whether you are facing an issue with a commercial lease, non-disclosure agreement, or another type of contract, it is important to know the options available to help you get it resolved. Contract attorneys can assess your situation, determine possible ways to settle the dispute, and provide legal representation that protects your interests.

Informal Negotiations

The first step most business lawyers take when dealing with a contract dispute is to contact the party and try to work out a resolution. Sending a letter or having discussions can often be enough to settle a dispute. If you do negotiate a settlement both parties agree to, it is critical to have an attorney prepare a formal agreement that outlines the terms. That way, if one party does not hold up their end of the bargain, the other may pursue a legal remedy.

Mediation

Mediation is a popular alternative dispute resolution (ADR) method that helps parties in conflict resolve issues. In mediation, a third party facilitates and guides the process to help you reach a mutually agreeable outcome. However, a mediator does not make a decision about the dispute. Their job is to help you address specific matters and facilitate civil communication.

Mediation is often a good choice for resolving disputes, as it is much faster and less expensive than suing someone in court. Because the results are determined by the parties involved, not a judge, it can also help them feel like they have more control over the situation. If you decide to pursue mediation to settle a contract dispute, it is vital to have an experienced lawyer assist you throughout the process. For example, if you are dealing with a dispute involving the sale of a property, you should have a real estate attorney by your side in mediation.

Arbitration

Arbitration is a method of ADR that enables you to bring a contract dispute in front of a private arbitrator to decide your case. One advantage of both mediation and arbitration is that they are private, which allows parties to keep details confidential.

The arbitration may involve one arbitrator or a panel of three. Although the process is less formal than court proceedings, parties may present evidence and question witnesses. After all, evidence is presented and witness testimony is heard, the arbitrator makes a decision, much as a judge would.

In binding arbitration, the arbitrator’s decision is final. You must abide by the result just like you would if you stood before a judge. However, unlike court decisions, rulings in binding arbitration typically cannot be appealed.

In non-binding arbitration, the arbitrator’s determination is advisory. However, it is an effective, practical way to resolve many types of disputes. Even if a decision is rejected by one party, it can give you insight into how a case may play out in court.

Do you have a business matter or contract dispute that needs to be settled? Our business lawyers in West Chester are skilled negotiators who work to achieve the best possible outcomes for our clients.

This blog was originally posted at https://carosella.com/blog/how-to-settle-contract-disputes-out-of-court/

Does My Estate Have to Pay My Debts After I Pass Away?

If you hold considerable amounts of debt, you may wonder whether your spouse or other family members will be responsible for paying it after you are gone. Even if you have a substantial estate and little debt, it is beneficial to understand how it may affect the assets you leave to your loved ones. An experienced estate planning attorney can help you address these issues and create an effective plan that protects your family’s financial interests.

How Debts are Paid After Someone Dies

When someone dies, both their assets and debts pass to their estate. This means that generally, the deceased person’s estate must take care of any unpaid debts. If there is not enough property or money, debts may go unpaid. In Pennsylvania, most assets must go through probate unless they are held in a trust. Accounts payable on death and funds from life insurance policies can also skip probate.

One of the first steps an executor or administrator must take is to notify creditors of the person’s death. The executor or personal representative must advertise the decedent’s death in two newspapers in the county where they resided for three weeks. Creditors have one year to submit their claims against the estate to receive payment for any unpaid debts. A lawyer can explain the probate process so the executor and beneficiaries understand how it works.

The executor or personal representative must pay inheritance taxes, medical bills, funeral expenses, court costs, and any other outstanding debts that may be left behind. If necessary, the executor may liquidate and sell assets to cover all debts of the deceased person. Once all debts are paid, any remaining assets will be distributed to beneficiaries according to the will or the laws of intestacy.

However, if the funds are distributed to beneficiaries and the estate does not have enough funds to cover other claims brought within the one-year period, the personal representative or executor can be held personally liable for paying these creditors.

What is an Insolvent Estate?

If an estate does not have enough assets to pay off debts, it is considered insolvent. In Pennsylvania, certain debts and expenses must be paid and prioritized in the following order:

1. The costs of estate administration, such as attorney fees, court costs, and the personal representative’s fees

2. The family exemption, which provides $3,500.00 for each family member who lived with the person at the time of their death

3. Funeral and burial costs, medical expenses, Medicaid costs, and any services performed by employees within the last six months

4. Cost of the grave marker

5. Rent for the deceased person’s home for the six months preceding their death and any claims by the Commonwealth of Pennsylvania

6. All other claims, such as medical bills and rent owed previous to the last six months of the person’s life

While some creditors of an insolvent estate may be paid, some may only receive a portion of what is owned or nothing at all.

Could I Be Held Personally Responsible for a Loved One’s Debt?

Generally, individuals are not required to pay the debts of someone who dies. However, there are rare exceptions to this rule, such as:

• You were a joint account owner with the deceased
• You were a co-signer on a loan
• In certain community property states, a spouse may be responsible for paying their deceased spouse’s debt that was acquired during the marriage.

Even if you were an authorized user on a credit card that belonged to the person who died, you are not responsible for paying their credit card debt. If creditors contact you about someone else’s debt, a family wills and trusts lawyer can advise you on whether you are legally obligated to repay it.

It is important to consider how your debts may affect the distribution of your estate when you pass away. The experienced estate attorneys at our law firm in West Chester can help you create a plan that keeps your loved one’s interests in mind.

This blog was originally posted at https://carosella.com/blog/does-my-estate-have-to-pay-my-debts-after-i-pass-away/

Steps to Take When an Employee Sues Your Business

Any business can run the risk of getting sued by an employee. A lawsuit can do serious damage to your company, so it is critical to consult a corporate business attorney as soon as you receive notice that you are being sued. These steps can help you protect your reputation and finances and put you on the right track for dealing with a lawsuit.

Be Proactive

Although you treat your employees well and offer great pay, benefits, and a positive work environment, there is always a chance a worker may feel they have been wronged in some way. If a current or former employee makes a complaint or you are aware that they may be disgruntled, talk to your lawyer to get your lawyer’s thoughts on the matter. If you have an HR specialist, keep them in the loop and make a plan for how to move forward.

Contact an Attorney If You Receive Notice of a Complaint or Lawsuit

Before a lawsuit is filed against your business, you will likely receive a demand letter from the employee, their attorney, or another organization such as the EEOC. This letter may ask your company to take corrective steps and threaten to sue if these recommended measures go ignored. It is normal to be frustrated and angry if you or your company is accused of wrongdoing, but do not contact the employee or respond to the letter in any way to avoid risking further legal peril.

Instead, stay calm and seek the counsel of a business lawyer who is well-versed in handling employee claims. Whether your company is faced with an employment lawsuit, personal injury claim, or another matter, an experienced attorney can assess the situation, advise you of possible outcomes, and determine a course of action to protect your personal and professional interests and your company.

Protect Your Finances

Depending on the type of lawsuit, you may already have insurance that can help safeguard your finances. For example, if an employee is suing you due to an injury your employee sustained at work, your worker’s compensation or your general liability insurance company may cover it if a claim is submitted. Employment Practices Liability Insurance (EPLI) insurance is specifically designed to provide coverage against claims related to workplace-related issues such as discrimination, harassment, wrongful termination, and retaliation.

Regardless of what the lawsuit is about, do not automatically assume that your insurance will cover a claim, as the circumstances surrounding the lawsuit may make it a non-coverable event. If you receive a legal demand letter or notice of a lawsuit, contact your insurance company as soon as possible.

Safeguard Yourself Against Future Lawsuits

Unfortunately, the lawsuit you are dealing with may not be the last. Creating a risk mitigation plan, having a business contract attorney draft or review any employee agreements, and providing a comprehensive employee handbook outlining policies, rules, and guidelines can prevent problems before they start. Whether you run an office or a factory, keeping up with employment and labor laws and OSHA safety standards can help you avoid litigation as well.

Our experienced business lawyers in West Chester handle all aspects of business law, including succession planning, employment issues, business entity formation, litigation, and more.

This blog was originally posted at https://carosella.com/steps-to-take-when-an-employee-sues-your-business/

What is a Letter of Instruction and Why Do You Need it?

A letter of instruction can help your loved ones tie up loose ends and give them peace of mind after your passing. Although it is an informal document, lawyers who specialize in wills often encourage clients to create one as part of their estate plan. A letter of instruction enables you to clarify your wishes and address matters that may not be in your will and gives you the freedom to offer personal messages to your family and friends.

What is in a Letter of Instruction?

Also known as a letter of intent, a letter of instruction may include everything from social media passwords to specifics about your wishes for funeral arrangements. It can also provide an easy-to-follow guide for the executor or personal representative in charge of settling your estate. Your estate planning attorneys can help you write up a letter of intent and ensure it covers everything you wish to address.

A comprehensive letter of instruction may include:

• A list of all your assets
• Information about where any tangible assets are located
• A list of bank, brokerage, investment, and retirement accounts
• Names and contact information for any financial professionals who handle your assets
• Usernames and passwords for accounts, social media, email, and websites or apps
• Specifics about how to disperse personal items like jewelry, family heirlooms, photos, etc.
• The location of financial and legal documents such as wills, trusts, insurance policies, bank statements, tax returns, birth certificates, and titles or deeds for real estate, and vehicles
• A list of beneficiaries and their contact information
• Locations of safe deposit boxes and keys
• Information about any debts, such as credit cards, loans, and mortgages, and contact information for debtors
• Details and contact information for all insurance policies, especially life insurance
• Instructions for the care of any pets
• Instructions for final arrangements
• Your preferred charities for donations if applicable
• Any personal messages you’d like to convey to loved ones

A Letter of Instruction Eases Your Loved Ones’ Burden

Having all of this information in one place can make it much more convenient and less stressful for your executor and loved ones. Discussing these matters can be challenging, and a letter of instruction enables them to know exactly what you would have wanted.

A letter of instruction can cut down on conflict, provide comfort, and give family and friends more time and energy to support each other after a loss. Make sure to review and update your letter of intent with your estate planning lawyers every so often to ensure the information in it is up to date.

Our experienced team of attorneys and legal professionals offer comprehensive estate planning services that protect your interests and the legacy you wish to leave behind.

This blog was originally posted at https://carosella.com/what-is-a-letter-of-instruction-and-why-do-you-need-it/

Hiring a Real Estate Lawyer: Things to Look For

Finding a good real estate lawyer is critical to ensuring your interests are protected in a property transaction or when legal issues arise. Although it can be tempting to simply choose someone with the best reviews on the internet, there are multiple factors to consider before hiring an attorney.  These tips can help you understand what to look for in a real estate lawyer and find the one who is right for you.

Experience

Real estate is a specialized, complex area of the law. You want to make sure you choose an attorney who has experience handling myriad aspects of real estate and who is familiar with local, state, and federal law. Regulations vary by jurisdiction, so it is important to find a real property lawyer familiar with local laws, processes, regulations, and courts. Another thing to consider is the type of real estate transaction or legal matter you are tackling. For example, if you are purchasing a commercial property, finding an attorney who has handled transactions similar to yours is critical.

A few questions to ask include:

• Have you successfully handled cases similar to mine?
• Is real estate law your primary focus?
• Are you a member of any local or national real estate law organizations?

Reputation

In addition to checking out reviews on the internet, ask an attorney whether they have won any awards or accolades in their area of law. It is also good to ask family or friends if they have worked with a lawyer they would recommend. Do not hesitate to request references from a lawyer’s former clients as well. Some questions to ask clients include:

• Did the attorney answer your questions?
• How responsive were they?
• Were you pleased with how they handled your case?
• Did they resolve any problems you may have encountered?
• Would you hire them again?

Talking to an attorney’s clients can help you narrow down your list and get a feel for who may be the best fit for your circumstances and personality.

Services

Transactions and legal issues involving real estate come with a lot of paperwork and procedures. While a contract attorney may be fine for drafting a simple purchase agreement, make sure a lawyer offers the specific services you need. An experienced real estate lawyer may be able to help you with:

• Negotiating deals on your behalf
• Drafting and reviewing contracts
• Title searches and insurance
• Lien searches
• Transfer of deeds and titles
• Mortgages and financing
• Escrow
• Closings
• Zoning issues
• Building regulations
• Easements
• Environmental considerations

Personality and Communication Style

Keeping lines of communication open with your real estate attorney is vital, and not everyone’s personalities or styles are compatible. Pay attention to how a lawyer speaks to you, answers questions, and whether they can think on their feet. Do you feel comfortable asking them questions? Do they explain legal concepts in terms that are easy to understand? Will they be available when you need assistance or check in on how things are going? Attorney-client relationships are built on trust, so it is important to choose someone you are confident will look out for your best interests.

Our West Chester real estate lawyers handle all aspects of residential and commercial real estate law. We are dedicated to finding innovative solutions and working toward the best possible outcomes for clients.

This blog was originally posted at https://carosella.com/hiring-a-real-estate-lawyer-things-to-look-for/

Things to Include in a Living Will

A living will enables you to specify which types of life-sustaining and end-of-life care you want when you cannot speak for yourself. Sometimes called an advance directive, a living will is usually combined with a health care power of attorney, which allows you to name an agent who can make decisions about your medical treatment should you become incapacitated. Both of these vital documents can give you and your family peace of mind. Having a wills and trusts lawyer help you draft them helps to ensure all important details are included.

Creating Your Living Will

Before drafting a living will, consider the circumstances in which you would want to forego life-sustaining care. Would you want treatment that extends or saves your life in any situation? Are there specific situations in which you would not want care such as CPR, a ventilator, or a feeding tube? Some of the most common end-of-life options include:

Cardiopulmonary resuscitation (CPR) – This procedure restarts your heart if it has stopped beating. It may be done manually or by using an electrical device that stimulates the heart.

Mechanical ventilation – Think about whether you would want to be placed on a mechanical ventilator if you are unable to breathe on your own. If so, for how long?

Feeding tube – If you’re unable to eat and drink, a feeding tube provides fluids and nutrients through an IV or tube in the stomach. Would you want to receive nutrition and fluid in this manner? For how long?

Dialysis – If your kidneys cease to function, dialysis manages fluid levels in your body and removes waste from your blood.  Again decide whether you would want this treatment and for how long.

Antibiotics and antiviral medications – Sometimes, people who are very ill need antibiotics or antivirals to treat the infection. Would you want to receive these medications or would you prefer to let an infection run its course? Make sure to specify this in your living will and health care power of attorney.

Palliative care – Also known as comfort care, palliative care is used to manage pain and keep a patient comfortable. In addition to specifying whether you would want pain medications, you can state whether you prefer to pass away at home and avoid invasive tests or treatments.

Organ donation – You can also specify whether you wish to donate any organs or tissues for donation after you die. If you opt to donate your organs, you will need to receive life-sustaining treatment until the donation procedure is complete. Stating that you understand that this temporary intervention is necessary can help your healthcare agent and loved ones avoid confusion.

Scientific study – If you want your body to be donated for scientific study, you can specify this in your living will. If you have a specific organization or program in mind, make sure to name it.

Your Estate Planning Attorney Ensures your Living Will is Legally Sound

Lawyers for wills and trusts are well-versed in creating living wills and ensure that all legal requirements are met to adhere to the law. Our local lawyers for wills provide comprehensive estate planning services in West Chester, PA, and can help you create a plan that protects your interests and ensures your wishes are clearly stated.

This blog was originally posted at https://carosella.com/blog/things-to-include-in-a-living-will/

Drafting a Purchase Agreement for Commercial Properties

Purchasing or selling commercial real estate can be complicated. Having an experienced real estate lawyer in PA help you draft a purchase agreement can protect everyone’s interests and help avoid costly errors. Although each circumstance is different, there are a few vital elements that should be included in commercial real estate contracts to make the agreement clear and enforceable.

Purchase Price, Financing Terms, and Closing

In addition to specifying the price of the property, commercial real estate purchase contracts typically include how it will be paid for as well. SBA loans, commercial mortgages, private investors, and short-term bridge loans are common sources of financing in commercial real estate transactions.

The purchase agreement should include specifics about the type of financing being used to purchase the property, the name of the financial institution and/or investor providing financing, and the total amount. It must also outline closing costs, who is responsible for paying them, and the projected closing date.

A Detailed Description of the Property and Contents

A description of the building and any additional property included in the purchase should be detailed in the contract. Equipment, furniture, appliances, fixtures, inventory, and any other items to be included in the sale should be listed individually. An attorney for contract review will make sure all of these small details are covered, which can help you avoid many potential pitfalls and common mistakes.

Expected Condition of the Property

To ensure all parties are on the same page when it comes to the condition of the property, the purchase agreement must spell out the condition that can be expected. Although commercial properties are often sold as is, this needs to be explicitly stated in the contract.

Inspection Terms

Most real estate purchase agreements include an inspection contingency, which gives the buyer the right to have the property inspected in a certain amount of time. Depending on the industry, the contract may need to state which specific types of inspections must be conducted. The contract should also state the date by which the inspection should be completed and how long the buyer has to terminate the agreement post-inspection. Information about what will happen to a purchaser’s deposit if they opt to terminate the contract based on inspection results should be included as well.

Remedies in Event of a Breach

Seasoned real estate attorneys know that it is quite common for contract breaches to happen during the real estate transaction process. That is why they include remedies in the event that either party fails to abide by the contract. An indemnification clause outlines each party’s responsibilities if the contract is breached. For example, if the buyer backs out of the sale after a certain date, they may owe the seller a specified amount of money. This is meant to compensate the other party for the time and resources they invested in a deal that is no longer taking place.

These are just a few of the most important elements to include in a commercial real estate purchase agreement. Real property lawyers can address matters specific to your case and help your commercial real estate transaction run smoothly.

Do you need assistance with a commercial real estate transaction? Our business lawyers and real estate attorneys in West Chester, PA can help.

This blog was originally posted at https://carosella.com/blog/drafting-a-purchase-agreement-for-commercial-properties/

Can Bankruptcy be a Solution for Saving Your Small Business?

Unfortunately, the COVID-19 pandemic took a serious toll on small businesses and has left many struggling to pay their bills, let alone turn a profit. Filing bankruptcy can be a viable solution to save your business, but it is vital to ensure that it is the right option for your circumstances. Before making such a big decision, consulting local bankruptcy attorneys who are well-versed in commercial bankruptcy law can help you make informed decisions.

Deciding Whether to File For Bankruptcy

It is important to keep in mind that there may be other options to keep your business solvent and turn things around before filing bankruptcy. Doing a thorough assessment of your financial circumstances and thinking about your goals is critical. If you are considering bankruptcy, first ask yourself the following questions:

• Do you want to keep your business open or are you ready to close it?
• What type of business structure is your company: sole proprietorship, partnership, corporation, or limited liability company?
• If it is a partnership or corporation, are you personally liable for any business debts?

You should also look at the types and amounts of debt you owe. Compiling this information and bringing it to your consultation with bankruptcy lawyers can help them evaluate your circumstances and determine which type of bankruptcy may work best for you.

Small Business Bankruptcy Options

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a liquidation bankruptcy that is available to both individuals and businesses. Business dissolution lawyers may recommend filing Chapter 7 for small business owners who want to close up shop and get out from under debt.  Typically, a person who is the sole proprietor of a small business can file for Chapter 7 in their name.

Chapter 7 can provide significant benefits, as it eliminates certain types of business and personal debt and can give you a clean financial slate in a matter of months. In addition, if you have more business debt than personal debt, you will not be required to take the means test and can file Chapter 7 even if you have significant personal income.

Filing Chapter 7 as an LLC, partnership, or corporation allows for an orderly liquidation of the business assets but does not discharge your debts for which you are personally responsible. If you were a personal guarantor of any business debt, you may still be liable for it.

Chapter 13 Bankruptcy

Chapter 13 is a reorganization bankruptcy that may be filed by someone who operates their business as a sole proprietorship. If you want to stay in business, it can enable you to avoid asset liquidation and reorganize your debt, which is paid back over a period of 3-5 years.

As of June 2022, you may have up to $2.75 million of secured and unsecured debt to qualify for Chapter 13 bankruptcy. If your debts exceed the limit and you want to keep your business open, Chapter 11 may be the right choice for you.

Chapter 11 Bankruptcy

Typically used by corporations and partnerships, Chapter 11 is a business reorganization bankruptcy that allows you to retain possession of your business assets and to continue to operate under the oversight of creditors and the court. Much like Chapter 13, a Chapter 11 reorganization enables you to repay your debts over time. In Chapter 11, your business must file a plan that shows how creditors will be repaid.

The traditional Chapter 11 process can be complex, lengthy, and costly, so it was not a practical option for many small businesses in the past. However, recent changes in the bankruptcy code have created a faster, more economical process that makes Chapter 11 accessible to more small businesses.

The Small Business Reorganization Act (SBRA)

Passed by the U.S. Congress in 2019, the SBRA can offer a lifeline for small businesses that are struggling. It may work well for those that can meet ongoing expenses but need time to address past due obligations such as rent and loan payments.

For example, because bankruptcy puts an automatic stay on debts like past due rent, it can stave off the eviction process and allow you to continue operations in your location while you catch up through your Chapter 11 repayment plan. In both Chapter 11 and Chapter 13, you may only have to pay a portion of your debts, and once your repayment plan is finished, remaining debts are discharged.

Our West Chester bankruptcy lawyers understand that it can be overwhelming to decide what to do when your business is in trouble. We can take some of the weight off your shoulders and guide you through all your options.

This blog was originally posted at https://carosella.com/blog/can-bankruptcy-be-a-solution-for-saving-your-small-business/

How a Bankruptcy Lawyer Can Help You Clean Up a Financial Mess

Financial troubles can take a serious toll on your overall well-being, relationships, and other aspects of your life. Struggling with overwhelming debt can seem like a lost cause, but there are solutions to help you get your finances back on track. Finding the best bankruptcy attorney to evaluate your financial circumstances can help you understand your options and give you peace of mind.

Giving Advice on How to Move Forward

It can be challenging to know if filing bankruptcy is your best option for debt relief. It’s a serious decision that will impact your credit standing for years. Depending on the circumstances, a local bankruptcy lawyer may recommend debt consolidation or negotiating with creditors to repay a portion of your debt instead.

For example, if you have mostly non-dischargeable debts like domestic support obligations, student loans, or certain types of tax debt, filing for bankruptcy may not be appropriate. A skilled attorney will figure out which options may work best to protect your assets and give you a fresh financial start.

Determining Which Type of Bankruptcy to File

If you and your attorney come to the conclusion that filing for bankruptcy is the most effective solution to improve your financial stability, you also need to decide which type of bankruptcy to file. Chapter 7 is a bankruptcy that enables you to wipe out unsecured debts like credit cards and medical bills. However, if you have enough income to repay a portion of your debt, you may not be eligible for Chapter 7.

Chapter 13 allows you to reorganize your debts and pay them back over a period of 3-5 years. It’s usually effective for debtors with non-exempt assets they want to keep, such as real estate facing foreclosure.

While there are federal exemptions that exclude some assets from bankruptcy, each state has its own specific exemptions as well. Having an attorney who is well-versed in both federal and state bankruptcy laws is critical to safeguarding any assets you may own.

Your bankruptcy attorney will assess your finances and discuss your financial goals to help you choose the option that best meets your needs and protects your interests.

Figuring Out What’s Best for Your Business

If you’re a business owner whose company is struggling and you’re ready to call it quits, a business dissolution lawyer may recommend filing Chapter 7 to liquidate your assets and pay off debts. On the other hand, if you want to get your company back into shape and continue doing business, they may recommend filing for Chapter 11 bankruptcy, which is a business reorganization similar to Chapter 13.

Assisting You with Filing for Bankruptcy

It is critical to be meticulous and forthright about what to include in your bankruptcy petition. Your attorney ensures that it is filed without any errors and that all qualified debts are included. If you fail to include debts that could have been discharged or included in your repayment plan, you may still be on the hook for them.

Alleviating Stress and Providing Support

Being in over your head financially is stressful and overwhelming. As soon as your bankruptcy petition is filed, an automatic stay will be put on your debts. This means that creditors must cease collection efforts, including phone calls, letters, foreclosures, repossession, and wage garnishment. This can take a huge weight off your shoulders and allow you to focus on rebuilding a solid financial foundation.

If you’re facing financial difficulties, our experienced and compassionate local bankruptcy attorneys can help.

This blog was originally posted at https://carosella.com/blog/how-a-bankruptcy-lawyer-can-help-you-clean-up-a-financial-mess/

How Real Estate Lawyers Can Help When Buying a Short Sale Property

Whether you’re buying your first home or you are a seasoned real estate investor, finding a property at a great price is exciting. However, navigating a short sale transaction can be time consuming and stressful, especially if you are new to it. A real estate lawyer in PA can help you understand your rights, protect your interests, and assist you throughout the process.

What Is a Short Sale?

Typically, a short sale happens when a property is sold at a price that is less than what the current owner owes on their mortgage. It can be an option when a homeowner has fallen behind on payments and is trying to avoid foreclosure. In a short sale transaction, you negotiate with the mortgage lender, which is much different from dealing with a real estate agent or homeowner. Buying a short-sale property can be risky, so finding a firm that offers real estate lawyer services can help to ensure you have a staunch advocate looking out for you throughout the process.

Short Sales can Be Tricky

Buying a short-sale property involves much more than negotiating and coming to an agreeable price. Before the process begins, the mortgage lender must approve the short sale. The process can take many months or even more than a year, which requires a lot of patience. Unlike foreclosure, the owner can stay in the home during the short sale process.

If the bank decides that foreclosure is a more lucrative option, they may reject the short sale and move ahead with foreclosure instead. A lawyer for real estate can also help you purchase a property in foreclosure, but the process is different.

Why Hire a Real Estate Lawyer?

In addition to helping you negotiate the price and conditions of the deal, a real estate attorney can help you handle any pitfalls that may arise. If there are multiple mortgages or liens on the property, all lienholders may be involved in negotiations because their permission is needed for the sale. If the primary mortgage lender is unwilling to agree to a satisfactory portion being paid on junior liens like home equity loans, these lienholders may refuse the sale and allow a foreclosure to proceed.

The advertised price may not be anywhere near the final purchase price. Lenders often list short sales at a low price to rouse interest. When the real estate market is strong, lenders will want more money. It can be difficult to secure financing for a short-sale property, and you may also have to pay all closing costs. Short-sale homes are also sold as-is, which means price concessions for repairs are usually not on the table.

Understanding the details and nuances of a short sale is challenging. That is why it is essential to have a seasoned attorney review any proposals or contracts and assist you with negotiations. Our West Chester real estate lawyers have extensive experience handling all types of property transactions. We can help you understand the pros and cons of buying a short sale and advise you of your options.

This blog was originally posted at https://carosella.com/blog/how-real-estate-lawyers-can-help-when-buying-a-short-sale-property/