Among the Scenarios in Which a Bankruptcy Lawyer Can Help

People have financial difficulties for all kinds of reasons. However, there are some common scenarios in which bankruptcy can be the most effective solution to start over with a clean financial slate. If you find yourself in one of the following situations, consulting an attorney at a bankruptcy law firm can help you understand your options and give you tools to move toward financial stability.

Unmanageable Credit Card Debt

Credit card debt is one of the most common reasons people file for bankruptcy in the United States. Although credit card companies gladly extend liberal amounts of credit, if you’re unable to make at least the monthly minimum payment, they will not hesitate to take action to collect what they are owed. Consequences vary, but failing to pay your credit card bills can result in extra fees being added, higher interest rates, collection actions, and even lawsuits. It can also put a serious ding on your credit score, which can keep you from qualifying for a car loan, mortgage, and other credit cards.

Chapter 7 bankruptcy is often the most effective solution for wiping out credit card debt and other unsecured debts. Individuals and certain types of businesses may file for Chapter 7. If you file for Chapter 13 bankruptcy, you will have to pay back a portion of your credit card debt through your repayment plan, but it will likely be much less than what you owed before you filed for bankruptcy.

If you are thinking of filing bankruptcy for business debts, it is important to keep in mind that in Chapter 7 bankruptcy, your business assets will be liquidated to pay your debts. If you want to remain in business and avoid liquidation, Chapter 11 bankruptcy is probably a better solution. Before making this critical decision, it is crucial to seek the advice of  an experienced business lawyer in West Chester.

Mortgage Debt and Risk of Foreclosure

Circumstances in life change, and unfortunately a job loss or other financial woes can keep you from being able to afford mortgage payments. Although many people believe that they will lose their home if they file Chapter 7 bankruptcy, this is not always the case. Federal and state bankruptcy exemptions can help you retain some or most of your assets when filing Chapter 7 bankruptcy.  The equity you have built in your home and whether or not you are able to catch up on payments are factors to consider when deciding  which type of bankruptcy to file.

However, if you’re significantly behind or payments or your home is already in foreclosure, filing Chapter 13 may be a better solution if you want to keep it, as it allows you to catch up on payments through your repayment plan of 3-5 years.

Regardless of which type of bankruptcy you choose, an automatic stay is put on your debts as soon as you file. The automatic stay halts most forms of collection activity, including foreclosure, repossession, wage garnishment, and collection calls and correspondence. A bankruptcy lawyer and attorney for contract review can take a look at the terms of your mortgage and advise you of your options.

Overwhelming Medical Bills

Unfortunately, exorbitant medical debt is a serious problem for many Americans. As unsecured debt, medical bills are completely wiped out in Chapter 7, although some of your assets may be sold to pay a portion or all of it. In Chapter 13, your medical debt is included in your repayment plan. In most cases, medical debt can be significantly reduced or eliminated depending on how much you can pay off by the time your repayment plan is completed.

If  you’re facing financial hardship, Carosella & Associates can help you find solutions to get back on track. Our experienced team of business succession planning attorneys, lawyers for wills and trusts, and bankruptcy attorneys provides large firm firepower with personalized small firm service.

This blog was originally posted at https://carosella.com/blog/among-the-scenarios-in-which-a-bankruptcy-lawyer-can-help/

Hiring a Real Estate Lawyer: 3 Things to Look For

Whether you are buying or selling property, finding qualified lawyers for real estate transactions and legal issues is a must. If you have never used an attorney for these services before, you may not know what to look for. These tips can help you find a skilled attorney who keeps your best interests at the forefront.

1. Experience

Knowledge and experience are of the utmost importance when choosing an attorney. A lawyer with a more generalized practice may not have a lot of experience in a specific area like real estate. Look for a Pennsylvania real estate lawyer who specializes in handling property issues and transactions. Asking for references from other clients can help confirm that you’re selecting a competent lawyer with a good reputation. If a lawyer refuses to provide references, move on and keep looking.  You can also ask friends or loved ones if they have worked with a real estate attorney they would recommend.

2. Knowledge of Local Real Estate Law

Real estate laws, zoning regulations, building codes, and other property-related matters vary by area, so it is also critical to find someone who has knowledge of local laws and procedures in your city or township. These issues can be quite complex, and if real estate litigation seems to be on the horizon, you want a lawyer who is well-versed in state and local law. If an attorney has worked in the area for a long time, they should also have connections with real estate agents, city and county building regulators, zoning boards, insurance agents, title companies, and other professionals.

Even if you are involved in a fairly simple transaction like buying or selling a home, the best contract lawyers recommend that you have an experienced local attorney draft or review your real estate sales agreement to ensure it is legally sound.

3. Communication Skills

Although it is important to hire someone with knowledge and skills, it is also essential to choose a lawyer you are comfortable with. You will likely have questions and concerns about your case, and your attorney should be responsive and willing to explain complex issues in terms you can understand. If you call to schedule a consultation with a real estate attorney and their office does not respond within a couple of days, it could be a sign of what’s to come if you hire them.

Questions to Ask a Real Estate Lawyer

• How long have you practiced real estate law?
• Which types of transactions and legal issues have you handled?
• What issues could arise in my case?
• Who will be working on my case and can I have their contact information?

If you are a real estate investor or a business owner, it is also good to ask if an attorney has handled commercial property issues and transactions. Real estate lawyers often work in concert with business liability lawyers to help clients safeguard their investments and livelihoods.

If you need assistance with a real estate transaction or another legal matter, our full-service law firm can help. Our team of real estate attorneys, business lawyers, and living will attorneys provide responsive service and legal representation you can trust.

This blog was originally posted at https://carosella.com/blog/hiring-a-real-estate-lawyer-3-things-to-look-for/

4 Ways a Lawyer Can Help Protect Your Real Estate Investment

If you are a real estate investor, it is important to be proactive about protecting your assets. Although investing in real estate can be lucrative, a lawsuit or financial issue can put your investments and your personal assets at risk. Pennsylvania real estate lawyers recommend some of the following asset protection strategies that help safeguard you from judgments and creditors.

1. Choose the Right Insurance

It should go without saying that it is critical to have liability insurance policies that cover all your properties, but it can be confusing to know which type and how much insurance you need to ensure your interests are fully protected. For example, you may want to purchase landlord or rental property insurance, which may include insurance for liability, hazard, and loss of income. Which types you choose will depend on the value and function of your specific properties. Most lawyers for real estate have relationships with insurance agents who can take a look at your real estate portfolio and advise you on which types of insurance and what policy amounts will best protect your interests.

2. Create an LLC

Business liability lawyers often help real estate investors form limited liability companies (LLCs) to shield their businesses and personal assets from claims and creditors. LLCs are business entities that hold the property and pay its mortgage and expenses. If you own multiple properties, creating a separate LLC for each one provides an extra layer of protection.

For example, if you own four investment properties worth $300,000 each and you are sued, $1,200,000 may be at risk. If each property is placed in a separate LLC the potential risk would be limited to $300,000. It is critical to ensure any business entities are properly set up and work to your benefit. If you have partners or co-investors, it is also a good idea to bring in the best contract lawyers you can find so everyone’s interests are protected.

3. Consider an Anonymous Land Trust

A real estate attorney can also advise you on how to set up an anonymous land trust. A trust is a legal entity that involves a grantor, trustee, and beneficiary. Living will attorneys often use them in estate planning to help clients protect their assets and their loved ones’ interests.

When real estate is held in the name of a trust, it may be more difficult for creditors or someone who wants to bring a lawsuit to discover who the owner of the property is. An anonymous land trust also provides protection if there are multiple owners of a property. If one of the owners has a judgment against them, assets in the trust cannot be touched.

4. Use Debt Strategically

Debt is another way to help protect real estate investments. If you own a $100,000 building free and clear, the full amount that it is worth could become a target in a lawsuit. However, if you strip the equity out of it and maintain a loan-to-value (LTV) ratio of 75%, the amount of cash that is potentially at risk decreases to $25,000. This can deter creditors or litigants from pursuing a claim, as it simply is not worth the time or expense.

Do you need assistance with asset protection planning? Our experienced team of business attorneys and real estate lawyers can help.

This blog was originally posted at https://carosella.com/blog/4-ways-a-lawyer-can-help-protect-your-real-estate-investment/