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What Will Happen If the Cosigner of Your Loan Files Bankruptcy?

The prospect of building your credit with a cosigned car, home or personal loan is exciting. Your first big loan is a major milestone on your road to financial adulthood and can make or break your reputation in the eyes of future lenders. You may be so ginned up by the thought of finally owning something on credit that you fail to consider a problematic contingency: your cosigner's insolvency. Although lenders usually require folks who cosign a loan to have good credit, they sometimes make ill-advised exceptions to their stringent lending standards. Cosigners with poor or mediocre credit may fall through the cracks and be permitted to sign for loans that they can't possibly cover. Even if your cosigner's finances are in order when they sign for your loan, the turbulent economy offers no guarantee that they won't deteriorate over the long course of its life. After all, no amount of credit-checking or financial disclosures can uncover a problem that hasn't yet developed. The effect of your cosigner's bankruptcy on the status of your loan and your own solvency will vary according to the strength of your personal finances. Legally, your cosigner's bankruptcy filing wipes out their obligation to cover your loan in the event that you can't continue to make your payments. If they were providing you with funds to help you stay current on your loan, you may need to dig deep to remain in good standing with your lender. If you weren't relying on your cosigner for financial support and can continue to make your monthly loan payments without a problem, you'll see no practical change in your credit score or day-to-day financial health. As a rule, you should never use a cosigner as a crutch to take out a loan that you can't afford. Your cosigner exists to assuage your lender's concerns about your mediocre credit rating and modest income, not to provide you with a monthly allowance. Your cosigner's bankruptcy filing will unnerve your lender. To pacify them, send them a notarized letter that reaffirms your commitment to pay off the balance of your loan on time and in full. If possible, do this before they even learn of your cosigner's misfortune. You may also offer to put up more collateral for a secured loan. While you're under no legal obligation to do this, it may encourage your lender to lower your interest rate.

What Happens to a Passenger in a DUI Arrest?

While you should take precautions to avoid riding in vehicles driven by intoxicated individuals, it’s likely that you’ll find yourself in this situation sooner or later. If the driver is pulled over and arrested on suspicion of driving under the influence, your fate as a passenger will hinge on several important pieces of information. First, the arresting officer will assess your level of intoxication. If you’re sober, you may be asked why you hadn’t taken the wheel once it became clear that your friend was unable to drive properly. You must be able to offer a convincing answer to this question. Most likely, you’ll need to prove that you’re not currently licensed to drive, don’t know how to drive, or have a medical condition or legal restriction that prevents you from driving at certain times of the day or in certain situations. If you can’t offer a convincing defense as to why you weren’t driving, you may be arrested and charged with reckless endangerment. Your arresting officer will argue that you put yourself, the driver, and members of the public in danger by allowing your friend to drive drunk. Their case may be bolstered by the presence of other passengers in the vehicle. Certain states frown upon this interpretation of the reckless endangerment statute. As such, the arresting officer may choose to take no action and allow you to leave the scene of the accident. You’ll have several options for getting home. If you’re licensed to drive, you may be given permission to drive your friend’s vehicle home for the night. In other cases, you may be allowed to ride in the tow truck that brings the vehicle to the impound lot and then transported to your residence by a police officer. In rare cases, you may be escorted home in the back of the second police car at the scene. You’ll face a different set of consequences for: Failing a field sobriety test Blowing above the legal blood-alcohol limit If You Get a DUI In a State Other Than Where You Live, Can They Come and Get You If You Don’t Show Up In Court? In this case, most arresting officers will ask you to call a sober friend or taxi company to drive you home from the scene of the accident. If you can’t get in touch with a suitable driver, you may be arrested for public intoxication and forced to spend a night in jail. While these charges are often dropped or reduced in court, you’ll still be thoroughly inconvenienced.

How to Write a Demand Letter for Personal Injury Without Hiring a Lawyer?

Although many personal injury lawyers offer free consultations for promising cases, they’ll demand a cut of at least 30 percent of your case’s winnings should they choose to take you on as a client. Depending upon the size of your potential payout, you may not be willing to part with this kind of money. Fortunately, it’s possible to initiate many personal injury cases without the help of a lawyer using a properly-formatted “demand letter.” About 30 percent of potential defendants served with well-written demand letters opt to settle their cases before they land in court. You’ll find multiple templates for quality demand letters with a simple Google search. You don’t need to be an expert in legal parlance or even much of a writer to get your point across. What you do need is a command of the facts of your case, clear records to back up your claims, and an unwavering confidence in the rightness of your cause. Once you’ve thrown down your chips and sent out your letter, don’t involve a lawyer until it becomes clear that it won’t be effective. Otherwise, they may demand a cut of any pre-filing settlement. If your demand letter is to be addressed to a private individual or the proprietor of a small business, ensure that it is devoid of aggressive language or wild assertions about your counter-party’s motives. Instead, outline your case in polite, factual terms. Briefly review the sequence of events that led to your dispute. If your injury happened in a traffic accident, describe the driving maneuvers that caused the crash and clearly state why your counter-party is at fault. To strengthen your position, present your account of the incident as settled fact and include police reports, claims adjusters’ assessments and any medical or repair bills to back up your assertions. Next, present an ultimatum. Using the evidence that you’ve attached as your guide, demand compensation for your injury. For the purposes of your demand letter, don’t include any extra “punitive” damages that can’t be tied to specific injury-related costs. If your counter-party refuses to settle your claim out of court, you’ll be able to attach such damages to your pending case. For larger personal injury cases that make it to court, you may wish to retain a lawyer: They will earn their fee many times over by coercing your counter-party to exceed your initial request for punitive damages.

Can I Get a Corporate AmEx Card After Bankruptcy?

Although your bankruptcy filing will do away with most of your unsecured debts and allow you to begin a new chapter in your financial life, it probably won't completely eliminate your need for credit. If you have a job that requires you to book flights and hotels with regularity, you'll certainly require some type of credit facility during and after your bankruptcy process. Unfortunately, most credit card companies deny their customers' new-card applications without exception for several years following the discharge of their bankruptcy. Compared to its peer companies, American Express is known for holding its customers to especially high credit-score standards. Long-term customers rarely receive special treatment: Former cardholders routinely tell stories of decades-long relationships negated by a single bankruptcy filing. Years after their discharge, they're often still unable to secure an entry-level AmEx membership. If you're applying for one of the issuer's corporate cards, you'll find it even more difficult to maintain your relationship with American Express. These cards tend to have higher spending limits and offer more attractive perks relative to less-exclusive products. While most corporate cards are backed by their customers' employers, American Express views this backstop with some suspicion. The reason for this should be obvious: Cardholders who have demonstrated serious lapses in judgment with their finances present an unnecessary risk. After all, there are plenty of credit-hungry consumers whose credit scores aren't tarnished by a past bankruptcy filing. Cost-conscious companies may not reimburse insolvent cardholders who make dubious or extravagant charges with their corporate cards, leaving the issuer liable for payment. For similar reasons, American Express has demonstrated a reluctance to issue corporate cards even when the cardholder's employer has agreed to settle each statement directly. You'll have to wait a long time to get a corporate AmEx card after bankruptcy. A record of your filing will remain on your credit report for 10 years and all but disqualify you from consideration during that period. If you've endured other financial setbacks or experienced a long stretch of joblessness in the meantime, your credit score may reflect your bankruptcy beyond this initial decade. While there are few exceptions to this general principle, it may be possible to soften AmEx's strict standards in certain situations. This often requires a personal appeal and a negotiation for a special higher interest rate. It may also hinge on whether your bankruptcy filing affected American Express to any significant degree.

What Is a Probation Violation for a 1st Offense DUI Misdemeanor in California?

After you're convicted of a first-offense DUI in California, you'll be sentenced to a mandatory term of probation. Assuming that you pay the requisite fines, follow your sentencing judge's instructions regarding your conduct while on probation, and avoid further run-ins with the law, your probation typically will terminate within five years. However, the state of California's onerous conditions of DUI-related probation guarantee that you'll have to work hard to escape from your predicament without further legal damage. Regardless of the jurisdiction in which your DUI conviction occurred, your probation will have several universal features. First, you'll be required to enroll in an alcohol-counseling course. Unless there are extenuating circumstances in your case, you'll probably be allowed to complete a short three-month course in lieu of a more in-depth year-long seminar. You'll also be required to pay a "base fine" that may range from $400 to $1,000. Of course, the true cost of your DUI will be several times greater than this amount thanks to added court fees, the cost of your alcohol and driver-rehabilitation classes, and other miscellaneous assessments. Crucially, your driver's license will be suspended for a period of several months at the start of your probation. In practice, most first offenders can convince a judge that they don't pose a serious risk to other drivers and receive a restricted license in the interim. If you're granted a restricted license, you'll typically be able to drive during regular "commuting" and business hours between your home and school, work or other key destinations. Your probation will feature several additional restrictions on your behavior and freedom of movement. You must agree not to commit any misdemeanors or felonies or operate a vehicle after drinking any amount of alcohol. You must also agree to submit to a full battery of breath and blood tests following a suspected-DUI arrest. California's DUI probation laws are strict: If you fail to meet any of these conditions or renege on any agreements associated with your probation, you'll be found to be in violation of its terms. Unless your lawyer can negotiate an alternate arrangement, a judge may revoke your probation and sentence you a prison term of up to six months. Depending upon the circumstances under which you violated your probation, you may incur additional penalties. For example, a subsequent arrest for impaired driving will result in a year-long suspension of your driving privileges.

How Do You Report Capital Loss on Stocks from Companies That Went Bankrupt and Went Away? Like Enron?

Equities generally offer better returns than bonds, money market accounts and other low-yield, interest-bearing investment vehicles. This is because they are inherently risky. Whereas it is exceedingly unlikely that the United States Treasury will default on its debts in the near future, it is probable that one or more publicly-traded American companies will file for bankruptcy protection within the next year. If you own stock in a recently-bankrupt company, the IRS may permit you to claim the full amount of its original purchase price as a capital loss on the current year’s tax return. However, your holdings must be completely worthless and you must be unable to unload any remaining shares that you own. Unfortunately, many beaten-down equities don’t meet these two criteria simultaneously. Some bankrupt companies continue to trade as “penny stocks” for years even as their creditors slowly dismantle them. As long as a stock retains some value, the IRS views it as an active equity. Unless you can prove that it has ceased trading indefinitely and retains no nominal value, you’ll be stuck with your worthless position. With few exceptions, the equity must be de-listed by the exchange on which it trades before you can safely claim it as a capital loss. Otherwise, you’ll have to sell it for just a few pennies per share and claim a slightly smaller loss. Your ability to claim a capital loss on a now-worthless equity holding is limited in a few key ways. First, you must claim the loss during the tax year in which it occurred. Since an equity may continue to trade at dramatically-reduced valuations for years before its final de-listing, this can be difficult. You’ll have to continue paying attention to the stock’s price long after it’s in your interest to do so. If you become aware of the stock’s de-listing after filing your tax return for the year in which it occurred, you may amend that year’s return to reflect your newly-realized loss. The IRS will accept amended returns for the previous seven tax years. Beyond that, there is no facility for claiming a capital loss on a worthless stock. Also, the total value of your capital losses should not exceed that of your capital gains by more than $3,000 in a given tax year. However, you may “carry forward” losses greater than $3,000 onto future tax returns until they have been fully realized.

Can I Leave the Country If I Have a Pending Trial Date?

Depending upon the seriousness of your offense and the existing workload of the court in which your case will be tried, your criminal pending trial date may not begin for months or years after your arraignment date. During that period, the conditions of your bail may circumscribe your financial decisions and geographical movements. Regardless of the reason for your planned trip, your ability to leave the country will hinge on the type of crime with which you have been charged, the laws governing bail in your jurisdiction, and the personal proclivities of the judge assigned to your case. Courts tend to view individuals charged with certain crimes as “flight risks” which can reasonably be expected to flee the jurisdiction they are charged with. Such crimes may include financial transgressions like embezzlement or violent crimes like: In the first case, the charged individual may have ample offshore assets and find it relatively easy to skip town forever. In the second case, the crime’s seriousness alters the accused’s risk-reward calculations and makes flight significantly more likely. Can I change my plea at pre-trial? If your presiding judge deems you to be a flight risk, he or she will impose travel restrictions as a condition of your bail. These may vary from case to case, ranging from full house arrest in extreme instances to relatively lenient restrictions on international travel in others. In some cases, you may be asked to surrender your passport to the court until the conclusion of your trial. If you are not deemed a flight risk, you won’t be held to specific travel restrictions. However, you won’t be completely free to roam the planet. You’ll likely have several scheduled hearings between the date of your arraignment and the tentative start date of your trial. You’ll also need to meet with your probation officer or bail supervisor from time to time. They may even show up at your business or residence unannounced. If you’re absent from any of these meetings or drop-ins, your bail may be revoked, and you may face flight charges. It’s easy to avoid this nightmare scenario. Through your lawyer, tell your presiding judge of your intention to leave the country and make a persuasive case as to why you should be allowed to do so. If you can prove that you have family members or business interests overseas, he or she should permit you to leave.

How Long After Bankruptcy Discharge Can One Stay In Home?

Although your bankruptcy filing likely came as a welcome relief after years of struggling to make ends meet, the ongoing process has exposed you to some hard truths. Despite your best efforts, there's a good chance that you'll lose your home after your bankruptcy is discharged. There are only a few general exceptions to this rule. In many jurisdictions, the recent foreclosure crisis has created a perennial backlog of foreclosures and short sales. Whereas mortgage companies once had little trouble wrapping up foreclosure proceedings in just a few weeks, the process takes far longer today. Depending upon where you live, you may be able to remain in your home for six months or more after your Chapter 7 bankruptcy has been finalized. Once your bankruptcy is discharged, you will need to find another place to live. However, you may not need to leave your house immediately. While you can't track the progress of your foreclosure proceedings in real time, most jurisdictions maintain an online list of pending home auctions. Check your home county's website on a regular basis to monitor any changes in the status of your home. In most states, local authorities are required to give homeowners at least two weeks' advance notice of an impending auction. If you haven't been checking your county's website, you'll receive an auction notice from your county's housing authority or sheriff's department informing you of the exact date of the event. As this date is non-negotiable, you should vacate the premises soon after receiving this notice. If you fail to do so, you'll be forcibly evicted on or before the auction date. Since you're no longer under any obligation to make your monthly mortgage payments, you have a financial stake in remaining in your home for as long as possible after your bankruptcy is discharged. You'll save thousands of dollars in rent or mortgage costs by remaining where you are while the foreclosure process unfolds. Don't worry about your ongoing homeowners' association fees: They're likely to be less dear than rent on a new apartment that's big enough to hold your family. Of course, you will eventually have to leave your home. To prepare for the next stage of your life, start saving a healthy portion of your paycheck as soon as your bankruptcy has been discharged. After a few months, you may have enough to cover the cost of next year's rent.

Can My Mom Cosign My Student Loans If She Filed for Bankruptcy?

Your lender may require a cosigner on your student loans for one of several reasons. Most commonly, they'll ask a parent, relative or beneficiary to step in and guarantee your loans because your current income as a student is insufficient to cover any theoretical repayments. If you're just graduating from high school, you may also lack the credit necessary to secure a loan on your own. There will be no immediate ramifications if your cosigner files for bankruptcy after your loans have been issued. Your lender probably won't begin demanding repayment until after you graduate. Even then, you'll have no problems as long as you can make your monthly payments in a timely fashion. However, your mom's bankruptcy likely will render her incapable of providing financial support in the future. Once you fall behind on your payments, you'll find yourself facing off against a suddenly-aggressive lender alone. If the bankruptcy is already part of her credit history, your lender may not permit your mom to cosign for your loan. Bankruptcies linger for years, crippling borrowers' and cosigners' credit reports for a decade or more. Depending upon the state in which you live and the time elapsed since her bankruptcy filing, your mom's financial situation may disqualify her from backing your loan for the duration of your college career. Private lenders tend to be especially stingy with their funds. If your mom's bankruptcy filing precludes her from cosigning for a private loan that would cover the bulk of your tuition, you may have some public and non-traditional options at your disposal. Borrowing guidelines for federal PLUS Loans tend to be less stringent than those for private loans. While there are no fixed borrowing limits for PLUS loans, these products demand that their users meet certain income and credit-history requirements. With your mom's financial woes, it's possible that your PLUS Loan application will be denied on the basis of her credit history. However, a low combined household income figure might work in your favor. Absent PLUS Loan funding, Stafford Loans and Pell Grants can provide a valuable backstop. Awarded to undergraduate students solely on the basis of need, these products come with annual award caps of $20,500 and $5,500, respectively. Whereas Stafford Loans accrue interest at a low fixed rate and must be repaid after graduation, Pell Grants come with few strings attached and do not need to be repaid.

If You Get a DUI In a State Other Than Where You Live, Can They Come and Get You If You Don’t Show Up In Court?

Since the statutes governing DUI crimes are remarkably consistent across the country, DUI suspects generally face the same basic penalties no matter where their offense occurrs. Of course, they must deal with plenty of additional hurdles after an out-of-state arrest. At first blush, these hurdles may appear serious enough to warrant flight. Every year, thousands of out-of-state drivers who can post bail after a DUI arrest flee the arresting jurisdictions and head home. Folks who make this risky decision essentially wager that they can avoid any further run-ins with the law. Driving under the influence is a felony, and most DUI suspects who flee the state in which they were arrested are eventually caught. In fact, flight may deepen a DUI suspect’s legal woes: Once he or she fails to show up for the initial arraignment hearing, the local court usually issues an arrest warrant. Since most state police departments routinely share such information, this document will quickly circulate around the country. State and local authorities are too busy to look for escaped DUI suspects on an active basis, but the arrest warrants that they issue generally remain in force indefinitely. As such, a single traffic stop in their home jurisdiction may be all it takes to bring a suspect to justice for a prior DUI offense. Once it’s been determined that a re-arrested suspect has an out-of-state DUI warrant on their record, the arresting authorities will initiate extradition proceedings against them in a local court. This tends to be a formality: For serious offenses like DUIs, extradition requests are granted almost without exception. Once extradited to the jurisdiction in which their DUI arrest occurred, the suspect will answer to the original charge as well as any additional charges related to their decision to flee. While nearly all extraditions are approved, there may be mitigating factors that encourage the jurisdiction in which the DUI occurred to waive its right to press charges in a local court. Geography is the biggest of these: As the physical distance between the two jurisdictions increases, it becomes more expensive and time-consuming to send out a law enforcement team to retrieve the suspect. In this case, the suspect’s home state may simply suspend their driver’s license as if the offense had occurred there. However, the suspect would almost certainly be jailed upon their return to the state in which the offense actually took place.

Could I Get My Security Clearance Revoked If I Have a DUI and Recently Arrested for Domestic Violence?

Any type of government-issued security clearance is an implicit bond of trust between the issuing organization and the individual to whom it is issued. Depending upon the nature of the underlying offense, criminal convictions may undermine this trust. If you’ve recently been convicted of a DUI and are awaiting trial on a domestic violence charge, your security clearance may be in serious jeopardy. Since there are so many different types of security clearances and multiple issuing organizations, there are no hard-and-fast rules for security clearance holders convicted of serious crimes. For most agencies, a single alcohol-related incident is not grounds for revocation. If your initial offense is minor enough, the issuing agency may wait until you have demonstrated a troublesome pattern of alcohol abuse to consider suspending or revoking your clearance. Likewise, you’ll probably be able to keep your clearance after a single DUI conviction. There are exceptions to this general rule: For obvious reasons, intelligence agencies like the CIA and NSA frown upon excessive alcohol use. If you work for an intelligence service, your security clearance may be revoked after a single incidence of public drunkenness. If you were on assignment when the incident occurred, you may be discharged and find yourself subjected to further disciplinary action. If you’re a new clearance holder or you were convicted of a DUI or other alcohol-related offense before applying for your security clearance, your employer may be even less lenient. In these cases, a single conviction may convince the issuing agency to revoke your clearance. Absent a conviction, your interim clearance may still be revoked after you enroll in an alcohol-treatment program or disclose that you have done so in the recent past. Conversely, once you’ve made it through your trial period, you’ll be more likely to retain your security clearance after completing a rehabilitation or treatment program. Your domestic violence charge may complicate matters. If you’re arrested while your security clearance is active, most agencies will take a wait-and-see approach to your case. If you’re eventually convicted, you may lose your security clearance. If you’re exonerated, you will likely keep your clearance but may have to face internal disciplinary measures. Regardless of the outcome of your case, you must immediately report your arrest and subsequent conviction or acquittal. If you fail to report your domestic violence conviction, your clearance will be revoked and you will lose your job.

Can You Request a Reduction In Your Probation to Join the Military?

Your ability to join the military is conditional upon many factors, including your medical history, family status, educational attainment, and others. Some of these are static and may permanently disqualify you from service. While your legal status is not, it is generally settled that no branch of the military will accept your application while you remain on probation. If you wish to request a reduction in your probation to join the military, you must either:   After your probation has expired, your ability to join the military may be dependent upon the nature of the crime for which you were convicted. If it was a felony or a serious misdemeanor, it may disqualify you from service for as long as it remains on your criminal record. You’ll need to speak with a qualified lawyer or a recruiter for case-specific information on this rule. Filing Bankruptcy Before Enlisting in the Military? The military forbids its recruiters from providing legal advice to potential recruits. It also bars them from acting as intermediaries between said recruits and their probation officers or the judges presiding over their cases. The military enforces this rule on a zero-tolerance basis: Any recruiter found to be helping a recruit reduce the length of his or her probation is subject to termination. Arguably, the penalties for recruits involved in such a situation are even worse. To protect their own jobs, recruiters are obligated to report such recruit requests to their commanding officers. With few exceptions, recruits who broach the subject of probation reduction with their recruiting officer are permanently disqualified from military service. If waiting for your probation to end naturally is not an option, you’ll need to approach the judge presiding over your case. You may do this directly using written correspondence or through a lawyer who is well-versed in military recruiting issues. There is no guarantee that the judge will grant your request or even hear you out. In order to secure a reduction in your probation, you’ll likely have to submit to a drug screening and provide proof of residence, gainful employment, and other metrics that demonstrate that you’ve “learned your lesson.” There is a riskier way around the no-reductions rule: At his or her discretion, your judge may cite “good behavior” or some other misleading reason for reducing your probation.

How To Become A Lawyer Without Going To Law School

As surprising as it might sound there are several states in our Union that allow a person to become a lawyer without having to go the law school.  Seven states are currently known to allow this situation to occur: Vermont, New York, Washington, Virginia, California, Maine, and Wyoming.  The American Bar Association (ABA) frowns extremely heavily upon this but it is not illegal.  Most states still prohibit out-of-state licenses to practice in their courts so that the ramification of a person who obtains a license to practice law without formal schooling stays essentially within that state. Although one can obtain said license getting that licenses still requires great determination and effort on the part of the lawyer-in-training (LIT).  The phrase is apt as the “no school required” states do require four years of daily, hourly study under the tutelage on a practicing lawyer and learning on the job!  Also, the LIT must pass the state’s bar exam(s).  As expected each state has its own rules and regulations around the LIT situation to insure that the person involved does know the state’s law sufficiently to provide the proper service to his or her clients. One of the striking benefits of the no-school approach falls out of the starkest benefits of this approach.  With no school involved the LIT does not incur the breathe-taking expense that typically results from going through law school.  Numbers like $132,000 and up are spared the no-school or “law office study” (LOS) LIT (LOSLIT).  The striking benefit that comes out of this is the ability to take a lower paying position rather than having to get top dollar to pay off the surreal debt.  Also, the LOSLIT has a number of years of actual experience in a law office (at least four), with a practicing lawyer, having done “lawyer things” day in and day out.  Still, LOS is a tough row to hoe.  Metrics on bar exams shows that over 73% of schooled lawyers pass while LOS LITs only pass 43% of the time.  In most of the LOS states there is no provision for those who did not pass to retake the bar exam again. It is important to note that the ABA was not incorporated until 1878.  There was very little formal schooling for lawyers before that.  There is, however, a litany of great Americans who were lawyers before the ABA came to be and many of them had no opportunity to attend law school; some of them had no formal schooling at all.  Yet, they became lawyers (not sure if they had to be licensed) and practiced law successfully. Another benefit of the no-school approach is that those who could not afford to attend law school can become lawyers in the allowing states.  Not having to face the previously mentioned costs opens the field to those who are very able lawyers yet very financially challenged.  Some people noted that even in this modern age, a number of LOSLIT lawyers have achieved height in their profession, some even to their respective state supreme courts.  That is rather impressive for not being schooled.

What Is EEGTL Tax?

EEGTL Tax Overview EEGTL tax is paid by each individual member of an employer-sponsored group term life insurance plan. Like IRA, 401(k) or medical plan contributions, it is typically deducted from each plan member’s paycheck. If each individual member’s coverage remains under $50,000, federal law allows employees to make tax-free contributions to their employer’s group term life insurance plan. However, some group term life insurance plans now carry individual death benefits in excess of that amount. EEGTL tax applies to the portion of each employee’s contribution that covers death benefits beyond the $50,000 limit. It also applies to contributions to plans that provide coverage for members’ dependents in excess of $2,000. Group term life insurance carries a fair market value that is tax-preferred but not tax-exempt. This value is calculated according to the IRS’s Uniform Premium Table I and may vary slightly relative to the plan’s premiums. While it is not exempt from federal income tax, it is not subject to withholding. However, FICA and Medicare payments are withheld from each employee’s fair-value contributions. As such, EEGTL tax accrues at a slightly lower rate than regular-income tax. EEGTL Tax: What You Need to Know EEGTL tax applies to any employer-sponsored group term life insurance contributions on coverages in excess of $50,000. Employees can avoid paying EEGTL tax on policies with sub-$50,000 coverages thanks to Section 125 of the IRS code. Known as “cafeteria plans,” employer-sponsored benefit arrangements set up under this statute are not required to withhold federal income, Medicare, FICA and FUTA taxes from employee contributions. Typical benefits provided in a Section 125 cafeteria plan include health insurance, dental insurance, special supplementary coverages like accidental death and dismemberment, and group term life insurance. Within the Section 125 framework, group term life insurance is an outlier: It is the only “fringe benefit” subject to a cap on tax-free employer contributions. For an employer-provided life insurance to be considered part of a “group plan,” it must meet several requirements. First, it must be provided to more than 10 full-time employees. Even if a business has more than 10 employees, it may not achieve the “10 employee rule” if it requires its employees to pay for coverage that extends more than one year beyond their termination date. Provided that they provide group life benefits for all of their full-time employees, the IRS will exempt businesses with fewer than 10 employees from this requirement. Under Section 125, group term life insurance benefits must be distributed more or less equally among eligible employees. If certain “key” employees receive benefits valued at 125 percent or more of “non-key” employees’ benefits, the “key” employees must report them as taxable income and the $50,000 benefit exemption does not apply. In this case, EEGTL tax is assessed on the entire fair value of the plan. Former employees who elect to continue receiving group term life insurance benefits in excess of $50,000 are responsible for paying their own EEGTL tax.

What Is an Underlying Mortgage?

Underlying Mortgage Overview An underlying mortgage is an original loan taken out by a housing cooperative to finance the purchase of the land or building that it occupies. This term may also be known as a “blanket loan,” “blanket mortgage” or “blanket debt.” Although it may also be used to describe both the initial loan in a wraparound mortgage agreement and one of the pieces of debt that comprise mortgage-backed security, it is most commonly used in relation to the housing-cooperative market. A cooperative’s underlying mortgage payments may swallow a substantial amount of its members’ monthly fees. Although co-op arrangements vary widely, members often subsidize the cost of their association’s underlying mortgage even when they are responsible for a separate mortgage on their individual unit. Once the obligation has been paid off, their membership duties may drop significantly. In fact, underlying mortgages represent a principal source of income for struggling housing cooperatives. In recent years, a robust secondary market for these products has made it increasingly easy to refinance them. Co-ops may also refinance their underlying mortgages to pay for major expansion or upkeep projects and to take advantage of lower interest rates. Mortgage Law: Judicial vs. Non-Judicial Foreclosure Underlying mortgages can be sourced through one of two principal sources: While co-ops have traditionally turned to primary lenders for support, the secondary market has become increasingly viable thanks to persistently low rates and lax financial regulations. Since co-ops tend to have access to deeper pools of funding, underlying mortgages with terms as short as five to seven years are not uncommon. They become especially prevalent when interest rates fall. A building association that elects to secure short-term financing for its property may pass this cost onto its members. However, to prevent dues from becoming prohibitive, it may spread the full cost of the mortgage over a longer period of time. This has the added effect of reducing the financial burden on charter members and affording new members a stake in the property. In addition to the advantages associated with their refinancing, underlying mortgages may provide co-op residents with a surprising tax benefit. If they can prove that their monthly dues are used to cover payments on the co-op’s land or building, they can use the interest on the mortgage-related portion of those dues as a tax write-off. On the other hand, underlying mortgages pose significant risks to co-op members. If the association’s board elects to take out an adjustable rate or a balloon mortgage, it may set up the co-op for disaster in the event of an unexpected interest-rate spike. In addition to losing their equity share in the underlying property, shareholders evicted from their co-op due to bank foreclosure or a bankruptcy filing on the part of the association will remain responsible for paying off the secondary mortgage on their former unit.

What Is an ALPLN Loan?

ALPLN Loan Overview An ALPLN loan is a type of private student loan. The terms “private” and “alternative” may be used interchangeably to describe this student credit facility. They tend to carry higher rates of interest than government-issued products like PLUS, Stafford, or Perkins loans. As such, most experts recommend using them only to supplement federally-backed loans and scholarships. Since ALPLN typically comes with higher loan limits than their federal counterparts, they are often used to cover the cost of tuition at expensive private institutions. Graduate students who do not qualify for financial aid may also utilize ALPLN loans. The base rates of interest on these products vary according to the proclivities of their issuers and the credit ratings of their borrowers. Once issued, most ALPLN loans adopt variable interest rates that closely track the LIBOR benchmark and change quarterly. Some lenders may offer low “teaser” rates for a specified period at the outset of the loan’s term, making alternative loans an attractive option for families who can afford to pay back a significant portion of their balance in short order. As a Sole Proprietor, Can I Write Off My Student Loan Payments? Since they are not backed by the full faith and credit of the U.S. government, ALPLN loans may require borrowers to find a co-signer. This is especially common for young borrowers and older students attending college for the first time. In fact, many lenders have taken to requiring a co-signer for their ALPLN loans regardless of the circumstances. In order to remain eligible to receive disbursements, borrowers generally must take enough school credits to be considered a half-time student. Once a student drops below half-time status, they must begin repaying their loan immediately and may forfeit future disbursements. Most lenders require students who wish to renew their full-time status to reapply for their loans. The repayment term on a standard ALPLN loan may range from 10 to 25 years. Any fees associated with the loan’s origination are added to the balance to be repaid. Most lenders offer three basic repayment options: Borrowers must begin repaying student loans specified as “immediate repayment” vehicles as soon as the loan is granted. Doing so may be challenging for a full-time student with limited employment opportunities. However, it can benefit students whose parents have chosen to assume the cost of the loan: If their parents can pay off most or all of the loan before its low teaser rate expires, they may save considerable amounts of money. Alternatively, members of the workforce who attend graduate school on a half-time basis may elect to use this method for the same reason. While they’re attending school, “interest-only” borrowers must repay the interest on their loan’s principal as it accumulates. Once they graduate, they will be held responsible for repaying its full principal and any additional accumulations of interest. “Full deferral” ALPLN loans must be repaid after a pre-determined grace period that may last as long as 12 months after graduation.

A Felon Taking the Bar Exam

— Going to Law School — Taking the Bar Exam — Becoming a Licensed Lawyer — Allowed to Practice Law Each of the above bulleted points is a step a person needs to take to become an experienced practicing attorney in that person’s resident state.  Each state’s rules for becoming a practicing lawyer in that state differ somewhat from each other state but each of the states have essentially the same types of rules.  Also, there are differences in each state for the licensing of lawyers and restrictions for becoming a lawyer in a particular discipline or business.  What becomes a little odd, what seems to be odd, is that some states have rules that make it very difficult to attend law school in that state if the person has a prior felony.  A felony is not an automatic bar, but ….  It is a question on most law school applications in almost every state.  It is something that the school apparently can take into account when reviewing the application for acceptance or rejection.  The same goes for taking the bar exam.  Each state handles it the way it wants and some states, such as Florida, will not allow a felon to take the bar exam.  Nearly every state has a rule about getting the license to practice.  The person to be licensed must have objective evidence that he or she is a person of good moral character, complete rehabilitation, and a member of the community.  Each state seems to express it in some different way, however.   According to many experts several states will not license a lawyer who is a felon.  Some states require at least five years having past following completion of sentence before considering an attorney license to a former felon.  Some states just have the morals and character and fitness criteria.  In most states the state supreme court and the state bar association are the ones that set the rules and conduct review for licensing approval or rejection.  Rejection can be due to having poor financial capability – it makes a lawyer potentially subject to temptations of money or favors.  States do not want to have these types of people as lawyers.  One of the criteria is moral turpitude.  Lying, cheating, and stealing are all crimes of moral turpitude.  This is another type of person that states do not want becoming lawyers.  A state review board called the “Character and Fitness” review board has the accountability to investigate these exact attributes in each and every attorney candidate seeking a license.  They go very deep into each candidate’s background to make a learned decision based on this due diligence.  State review boards are one’s that get hammered by the press and community when a bad apple turns up in the barrel of lawyers.  Everyone expects perfection from this discipline and its licensing boards.  It becomes the candidate’s challenge, especially with a felony in the candidate’s past, to convince the Character and Fitness board of one’s character and fitness to practice law in that state.  Experienced people state that the board show very, very little leniency in these areas.  Not impossible, it is a tough hill to climb.

Impact of Out-of-State DUI

Consider the scenario where a person is out of state and is arrested for DUI.  What impact does this event have on that person back in the person’s state of residence?  While each state is sovereign and has its own laws and penalties around DUI the states do essentially the same things and are fairly close on its penalties and relationships with other states.  Many but not all states currently use a national information system that share conviction details.  The system is now in place and is known as the Interstate Compact.  It is a multi-state agreement among participating states.  These states share information and reciprocate actions against violators.  Currently Wisconsin, Tennessee, Georgia, Massachusetts (MA), and Michigan are all Non-compact states and do not share DUI conviction information through the system.  MA will notify a person’s resident state directly and provide the details of an arrest, BAC testing, and any other pertinent information.  MA will also treat an out-of-state DUI just as if the DUI occurred in MA.  Another system, the National Drivers Registry, is a central repository of driver events allowing other states to review an out-of-state (OOS) driver’s record in the event of a stop or subsequent arrest.  Most state act in some way as does MA with a MA resident arrested for an OOS DUI.  This means that the resident will have his or her license suspended, likely for one year.  If the resident ignores the OOS hearing, the resident can expect a bench warrant for that resident’s arrest.  It is unlikely that this warrant will lead to the extradition of the resident to the arresting state.  The experts state that no state will have a resident stand trial under the resident’s state law for something like a DUI that occurred in another state.  The arresting state can and will hold the OOS offender for a hearing and or trial if the circumstances warrant it.  If there are fees and fines, the OOS offender will likely have to pay them before being allowed to leave the arresting state.  The arresting state apparently gets what is can from the situation, such as it is.  It is as if the state knows that it will not likely see the OOS offender again, but the bench warrant is a way of getting the offender if he or she is identified while again in the arresting state.  Several people experienced such an event, traveling through a state with an outstanding warrant for an unresolved DUI, then being stopped, identified, arrested, and jailed.  What fun if on a trip with family.  It is recommended by experts to not ignore the summons to a hearing even if out of state.  The arresting state does not really care about the hardship of returning to the state for the hearing.  As many people comment the accused should have considered that before drinking and driving.  It often sounds a bit self-righteous, but it is the correct way of viewing the situation.  Too many people have just a few beers or glasses of wine at dinner and somehow get into a police stop and arrested.  It is simply the law being applied whether one likes it or not.

Bankruptcy Protection from a Civil Suit

When a person files for bankruptcy and the filing is accepted by the court, the person who now becomes a debtor receives immediate protection from any and all forms of collection and litigation due to financial liability.   Assuming that a civil suit was being initiated due to past due monies being owed a creditor, that civil suit is stopped in its proceedings.  It cannot go forward until after the bankruptcy discharge and will only be a worthwhile civil suit if the debt the debtor owes that particular creditor somehow survives the discharge.  If the debt is wiped out, the civil suit goes with it.  The creditor and his or her civil suit are bound by the automatic stay as soon as the court clerk stamps or time punches the filing that now becomes a petition.  No one has to necessarily notify the creditor of the filing.  However, once known the creditor must cease collection efforts or face contempt charges.  The debtor’s petition has to undergo scrutiny by the court and an assigned bankruptcy trustee, and survive this scrutiny.  This is the typical situation.  But, that does not make the wiping out of the debt a guarantee. The creditor is not simply brushed aside in bankruptcy cases.  The creditor has the right to be present during the “341” hearing, the interview session by the trustee of the debtor as required by Section 341 of the Federal Bankruptcy Law (FBL).  The debtor is under oath and bound by this regardless of who is asking the questions.  One of the underlying purposes of this hearing is clarify any information filed with the petition that needs clarification, and to determine that what the debtor filed under oath holds up under scrutiny.  Creditors are often allowed to also ask questions of the debtor.  The reason a creditor would ask the debtor questions would be try and establish either fraud or intentional misconduct.  “Intentional misconduct” has a legal definition that can be applied.  The term “intentional misconduct” legally means “… conduct by a person with knowledge (at the time of the conduct) that the conduct is harmful to the health or well-being of another person [42 USCS § 1791 (b) (8)].”  To paraphrase the situation, if the debtor’s lack of payment to the creditor willfully put someone else into harm’s way, the trustee and or the bankruptcy court judge could exclude that liability from discharge, keeping the debt in existence, keeping the civil suit in a viable state.  Also, if the debtor came by the debt in a fraudulent manner, say by lying to the creditor to obtain a credit line, then running out the credit, refusing to pay the creditor and using the bankruptcy Chapter 7 to wipe it out, again, the trustee and or the judge could exclude the debt from discharge.  A creditor who wishes to challenge the discharge must do so within sixty days after the discharge is issued.  The challenge will be showing that the debtor obtained the credit by lying, not lying about things after receiving the credit.  It is an essential point in the drive to retain the debt.

Jail Time Awaiting Extradition on Old Out-of-State Felony Warrant

A person who has an outstanding arrest warrant for an out-of-state felony is found out, arrested and jailed while awaiting extradition.  The question that comes to roost is how long the resident state can hold the accused while the felony state gets around to extraditing. Most experts agree that the typically amount of time one state gives another for extradition is about one month, 30 days.  This waiting time of one month includes the notification to the felony state that the resident state has the accused in jail, through to the point where the felony state comes and picks up the accused to stand trial, or to decide that the felony state does not want to prosecute, regardless of the reason.  There is always the situation where the felony state might request an extended time allowance to get its preparation and or decisions completed.  The resident state might not feel like extending the time for whatever reason.  The US Supreme Court has upheld a state’s right to refuse extradition.  Only Missouri and South Carolina do not participate in the Uniform Criminal Extradition Act (UCEA).  The UCEA provides the right of the state, even a citizen, to arrest fugitives in the resident state accused of a crime in the felony state if the penalty for that felony in the felony state is at least one year in jail.  While Missouri and South Carolina have not accepted the UCEA, it does not prevent those states from having their own extradition laws and using them to the fullest. Just an odd thought … There is no evidence any the resident state would consider having the accused stand trial in the resident state for the felony done in another state.  From experienced individuals to experts in this area, if a felony state either decides to not extradite or fails to decide in the allotted 30 days, the resident state will simply allow the accused to go free.  There are instances, however, where one state feels that the accused could not get a fair trial because of media coverage corruption of the available jury pool, and moving to another state to gain an unbiased (at least a less biased) jury for the trial.  The defense attorney cannot simply make the state move the trial elsewhere.  Motions and hearings for this “change in venue” would need to be filed and processed before such an event would be approved.  The logistics for such a happening must be somewhat chaotic.  Apparently this type of change would only have legal basis if the case is a federal case rather than a state felony.  State sovereignty over its laws, procedures, magistrates, judges, and courts makes the state to state change in venue improbable.   But what if one state brought its own judges to the other state …?   Not allowed, again due to the sovereignty of each state. Unfortunately, many people who experienced this situation simply waited out the extradition, knowing that most states and out-of-state jurisdictions are so overworked that the states and jurisdictions prioritize the crimes they want to take to trial and simply leave the rest untried.  It is a sorry state of affairs.

Impact: Buying a House Right after Bankruptcy

The only constraint to a person’s ability to buy a house right after emerging from a bankruptcy by discharge is finding someone who will give that person a loan to buy that house.  Knowing that mortgage providers use a formula involving income, liabilities, credit rating(s), family size, and some other criteria, the emerging debtor may or may not know the financial picture that the debtor now has, may or may not realize what his or her financial picture means.  A typical scenario for a person who becomes a bankruptcy debtor is that before filing for bankruptcy, the person filing has likely been going through some rather difficult financial and credit situations.  Depending on the number of creditors involved and the length of time the difficulties have been going on, the person who will file has likely had his or her credit rating in a steady decline.  Creditors typically file their information to the credit bureaus every month to three months.  While creditors must halt collection action while the debtor is in bankruptcy, the creditors can and likely will continue to report the account as being delinquent, continuing to negatively impact the debtor’s credit score.  Consider the fact that a Chapter 13 bankruptcy will continue for 36 to 60 months before discharge, but you also have that time to prepare for coming out of bankruptcy.  While many people have stated their experience of losing 100 to 200 points from their credit score following bankruptcy discharge, some have stated that they experienced 300 to 600 lost points.  It is hard to express anything reasonable in facing a 600 point loss on a credit score.  Brutal does not seem adequate in any way to describe that outcome.  Those experienced with reclaiming credit and obtaining credit after a discharge related that improvements can begin to be felt within six months.  Most general lenders want to see two years of problem free on-time payments before considering making a loan.  Those lenders who are willing to provide loans sooner are very likely to demand higher interest rates and adjustable rates.  While a higher rate is possibly doable, an adjustable rate can quickly drive the person back into a financial struggle.  Most recommended staying away from the adjustables. One specific lender that a person fresh out of bankruptcy should consult with is the Federal Housing Administration (FHA).  The interesting and rather good news about the FHA is that they do not use FICO® credit scoring to make a loan decision.  If this is actually accurate, then the constraining criteria end up being rather simple.  Except for the necessary waiting periods stated, almost anyone in need should be capable of applying for an FHA mortgage. To qualify for an FHA loan you need: — to wait 24 months after your Chapter 7 discharge Or have both — a discharged Chapter 13 and –12 months of on-time Chapter 13 payments if you’re still paying your trustee as well as trustee approval to obtain the loan while under bankruptcy control. Also, most FHA loans have upper limits for different property areas. One needs to check and know what the loan limit is and that the mortgage being sought does not exceed the loan limit for that area. Once one knows what the area loan limit is one only has to contact an FHA mortgage lender and inquire about applying and being pre-approved.

Expunging DUI in California

The reasons for having a California DUI expunged are to: This can occur with a successful request to the Court for review of a DUI in California or conviction related to driving drunk.  The Court will initially review and determine: The Court then may allow the requester to withdraw his or her plea or guilty finding or no contest, and subsequently orders the case dismissed.  A legal withdrawal of a plea, any not guilty entry, and a court dismissal of a California DUI being granted, the requester is released from every penalty and punishment due from the DUI conviction.  The Expungement law (Penal Code Section 1203.4) provides in part: “[Requester shall]…be permitted by the court to withdraw his or her plea of guilty or plea of nolo contendere and enter a plea of not guilty; or, if he or she has been convicted after a plea of not guilty, the court shall set aside the verdict of guilty; and, in either case, the court shall thereupon dismiss the accusations or information against the defendant and except as noted below, he or she shall thereafter be released from all penalties and disabilities resulting from the offense of which he or she has been convicted, except…” However … The expungement does not allow the person to ignore the obligation to disclose the expunged  conviction in response to any direct question contained in any questionnaire or application for public offense, for licensure by an state or local agency, or for contracting with the California State Lottery. Also … The expungement does not allow the person to own, hold, or have custody or control of any firearm capable of being concealed by the person, and it does not prevent conviction of the accused under California Penal Code section 12021. If any employers ask about being convicted of a crime, the person can usually answer “no”.   Since every question can be different it is advised to contact an attorney before answering any specific question. On questions by government agencies or government licensing applications the person must disclose the expunged case. A dismissed DUI conviction can and will be used as the basis for repeat DUI and likely add to penalty and punishment in future DUI cases. The offense is “priorable”.  It can be used put the offender in jail or increase the length of a DMV suspension. An expungement alters the disposition of the case to reflect this dismissal under 1203.4 of the Penal Code. This means that the Court file, the California DOJ, and the FBI must alter their files to show that this case has been ordered dismissed by the Court.

Take a Chance: Plead Guilty to DUI without a Lawyer

Every state, every jurisdiction has laws against drinking and driving.  Be it driving under the influence (DUI) or some other acronym or name, it is the same thing.  Every state and jurisdiction has its own penalties and fines and uncomfortable results for a person who is arrested and convicted of such a crime.  The penalties and fines and uncomfortable results get worse if the person is a repeat offender.  The person arrested, the accused, likely does not know the law, the courts, the judges, the magistrates, the district and prosecuting attorneys and the police officer(s) involved in this case.  The accused does not likely know what is going to happen when, essentially going along for the ride that will end up in court, most likely.  The accused does not likely know what to say when, what not to say, how to leverage actions or events that come up along the way to the court hearing to his or her benefit.   The accused likely does not know how to negotiate when applicable, does have any relationship with any of the trial personnel or the law enforcement personnel to leverage in the proceedings. But, the accused has the option of pleading guilty to the charges and essentially throwing one’s self on the “mercy” or subjectivity of the court.  What can occur, one might ask.  Well, the answer starts off with the opportunity for the accused to a trial and judgment by a jury of the accused’s peer will no longer be an option.  The penalties, fines, fees, jail time, and whatever will be dictated by the subjective though focused opinion of the judge.  The answer could be the worst results possible in terms of penalty, jail time, fines, fees and whatever else the legal system can devise.  Or, the answer could be the least with the accused essentially getting off with only whatever is mandated by the state’s or jurisdiction’s laws.  Or, it could be something in between.  All of this can and will happen in some shape or form, when an accused takes on the legal system on his or her self.  No, it does not seem to a smart approach to the situation.  But, it is the right of the accused to not have representation or to represent one’s self.  Of course, the accused could feel such remorse about the situation, feel so much guilt having committed this crime that the accused perceives the only solution is to allow the court to punish the accused as severely as the court deems proper. With a lawyer, even one that is assigned by the courts, the accused has the opportunity and options to change if not at least lessen the outcome of this case.  The accused’s lawyer will use his or her knowledge and relationships of the court and people to bring about a better outcome.  The attorney knows the law, knows how to argue for and against what is said, what might be inferred, knows how to negotiate towards that better outcome.  A lawyer can cost money, but that is what the accused pays for – a person who knows how to make the best out of a not so good situation.

Weighing Choices: File Bankruptcy or Let Car Be Repossessed

Most people with experience in this or with an opinion recommended leaving bankruptcy as the very last option, mainly because what a bankruptcy discharge does to one’s credit score.  Typically, a debtor can expect at least a 100 point downturn and as much as a 200 point downturn on his or her credit score.  That is an event that is difficult to turn around.  With that in mind, the focus comes to the vehicle that is the debtor’s concern.  A loan that uses the asset being purchased as the security for the loan of that asset the loan is a called a secured loan.  This asset has worth when it is purchased and its worth will typically increase or decrease over time.  With a car the asset worth often decreases.  As most people know the worth decreases more quickly if the car is need of repair and or not taken care of very well.  When a car owner has a loan on the care and that loan is in arrears, the chances of repossession increase as the arrears’ term lengthens.  When a car is repossessed, the (previous) car owner can be faced with a discrepancy judgment.  This judgment is given to an asset repossessor, the judgment requester that can show that the asset is worth less than the amount owed on the loan.  The judgment can also contain any additional cost and fees that the repossessor incurred due to the repossession.  Repossession appears on a credit report.  A court judgment will also appear on the debtor’s credit report.  Even the debt owed after repossession and before judgment is reported against one’s credit score.  At least one expert stated that repossession itself will impact a person’s credit score from 50 to 150 points.  That is almost or as bad as a Chapter 7 discharge’s range.  Then comes the unpaid amount; then the judgment.  One person related that an unpaid judgment continued on a credit report for twenty years.  Typically, its seven years, like repossession.  A discharge stays on a credit report for 10 years. Now, the comparison … Credit score:  chapter 7 discharge is 100 to 200 points while the repossession is 50 to 100 points. But, the additional credit score entries for unpaid balance and judgment might simply balance them out. Amount to pay:  a Chapter 7 discharge wipes out the car and its debt while the repossession is a circus of stress, phone calls, irritation.  Chapter 7 would appear to weigh better in this balance.  Also consider that Chapter 7 may leave the debtor with the car if it has little liquidation value.  The debtor might be able to at least sell the car for parts or a tax write-off, or even get some money for it in a “trade-in” if the debtor can find someone to sell the debtor another car on loan. Have a car:  Chapter 7 may leave the debtor with the car that cannot go while the repossession will definitely take the car and leave a judgment or worse. A bankruptcy will (very well should) incur lawyer fees.  Not sure on a repossession …  Debtor’s choice.

Quitclaim Deed Impact: Ownership, Mortgage, and Bankruptcy

A quitclaim deed is a very simple conveyance vehicle.  It holds the statement that the person named and whose signature the vehicle bears (grantor) has quit, the legal word is remise, any ownership to the property named and conveys it to the person who holds this quitclaim (grantee).  There is no guarantee or warranty connected to this quitclaim.  The trick is that a person who owns absolutely no ownership of a property can file a quitclaim to that property.  Why might someone do so, one might ask.  To perpetrate fraud, sell someone zero ownership to a property, is a very likely reason.  The problem with a quitclaim deed is that it does not have a legal remedy if the claim is wrong, bad, not there.  The one who holds the quitclaim is left holding the bag.  Nice. Before discussing the impact of a quitclaim on a mortgage, it is best to insure knowing what it means to a co-signer on a mortgage.  As a co-signor on a mortgage means that the co-signor’s financial position was used, along with the financial positions of the other co-signors, to obtain the mortgage.  As a co-signor on the mortgage, each co-signor can be legally held solely accountable for the remaining amount of the mortgaged loan.  “Solely accountable” means exact what is says.   For example, if three co-signors were sending money to co-signor #4, and that person took off for parts unknown, the mortgage company would come after the remaining three for its money.  This is bad business.  If one co-signor was left, that co-signor would be stuck with whatever the problem now is.  This is very bad business, indeed. Now, it is on to bankruptcy.   The situation above is very indicative of what a bankruptcy does to a co-signor left with the responsibility of the mortgage after the debtor co-signor has had his or her responsibility for the mortgage discharged.  The non-filing co-signors must be listed on the assets and liabilities list containing the mortgage.  The non-filing co-signors may even be notified and invited to the debtor’s 341 hearing.  At that time, they may even be able to ask, “Hey, Joe.  What did you do with last three months of mortgage payments?”  If “Joe” cannot account for it, or has hidden it, the bankruptcy could be dismissed and “Joe” could be charged and tried for contempt of court and bankruptcy fraud. So, what is the impact of a quitclaim deed on a mortgage?  True answer is that it has no impact.  A mortgage is based on ownership.  Co-signors co-own the property.  When one of the co-signors quitclaims the property, it leaves the remaining co-signor(s) with the rights, and liability, to the property.  However, a quitclaim has no impact on the accountability for the loan.  The co-signor who quitclaimed still owes that share and still has financial obligation for the loan.  If that quitclaim co-signor now goes to bankruptcy court, the quitclaim still has no impact because bankruptcy is all about finances and financial accountability and nothing about a quitclaim.  In fact, it makes little sense to have filed a quitclaim in the first place.

Activities and Events that Occur at a Pretrial Hearing

After a person is arrested and or charged with some particular illegal activity, a pretrial hearing is often scheduled.  A pretrial hearing is a session with the judge that occurs before trial.  There is a number of reasons for a pretrial hearing.   The pretrial hearing is an accused person’s last court appearance for a criminal charge before the case goes to trial. At this hearing, the various participants, mainly the district attorney and the defense lawyer, generally have acquired whatever information they believe that they need to fully negotiate and navigate the case, including information from the crime victim and witnesses. To negotiate the case, the prosecuting attorney will have gathered and considered the following points:   What Does Disposed Mean In A Court Case? If the parties are unable to resolve the case by negotiation, the pretrial occurs, and a trial date will be set. Negotiation between the prosecutor and the defense can continue pending trial and often continue during the trial.  The process of the pretrial hearing begins with an agenda, the reasons for having the pretrial.  Most cases are brought to the court because of a conflict in a process of a legal event, like a divorce or a settlement over seemingly basic issues and these can often be solved without a formal trial.  Both parties and their respective lawyers must be present to be near the judge who needs to mediate this discussion. If one wants an experienced lawyer present in the local process who may know the judge involved and one abides in a particular city or jurisdiction, then a good idea is to have a local legal action or criminal attorney who will most certainly see that the client has the legal power to help if one needs it.  Most trial cases of criminal activities in which the accused usually expresses a plea occur in the pretrial hearing, always outside the court trial.  Many things can be discussed during this hearing, which can be later used in the court if required. A client needs to understand the details of a pretrial hearing, explained by their criminal attorney primarily because a judge is present. The judge often lays down some basic rules before the trial actually starts.  It is purposeful for the attorney to manage any discussions that occur without damaging the situation of the client. Experts explain that there have been situations where the pretrial hearing has even solved the case without a trial.  For this simple reason, a pretrial hearing is preferred by many people. An accused person will not necessarily be facing jail time at the pretrial hearing.  The Judge must make sure the accused understands the charges, explain the rights the accused has in the particular situation the accused is in, explain the type of sentence and penalty the accused faces, and will discuss bail, release, or custody with the accused.  

Obtaining a Real-Estate License after Filing for Bankruptcy

Federal Bankruptcy Law (FBL) has a section, 525a that prohibits any government agency from causing a person to be denied a professional job license based solely on having filed for bankruptcy.  Whereas real estate licenses are granted by the sovereign states of the United States, federal bankruptcy law applies to these real estate licenses.  Section 525a rules also hold the same for license renewals.  Bankruptcy itself cannot impact obtaining or renewal of a real estate license when someone applies for a job at a federal agency.  Federal law, however, also prohibits such bias by the real estate companies themselves.  Companies set their own criteria for these types of situations and cannot have that bias in their hiring practices.  Section 525a again rears its powerful influence. There is a law against it.  That being said, many people experienced in this, seeking a job in real estate but also having suffered a bankruptcy, have felt that there was a bias in the real estate agency.  Several experts stated to not hide the fact of a currently filing or previously being in bankruptcy.  It is all about the hiring company wondering about the integrity of this candidate.  Up-front admission removes doubt about integrity later.  If there is a hiring bias, better to know early and go elsewhere if necessary. To take this a bit further, section 525a prohibits any government agency from causing a person to be denied any professional job license based solely on having filed for bankruptcy.   This includes lawyer, doctor, engineer, any discipline that demands licensing or certification.  It is easy to see that anyone hiring a current or former debtor can concoct a reason for not hiring such a person.  In some states additional laws and rules expand the prohibition to state agencies, and in some cases to vendors and suppliers who work with and or for state agencies.  Federal and state laws view this bias as discriminatory, and have made it illegal to do so.  Proving any wrongdoing, however, can and often is a very difficult thing to accomplish.  Experts and many people list any of a large number of federal and state statutes that prevent bias and or discrimination for any number of situations, attributes, conditions, or themes.  While each hiring company is required to know and follow anti-bias and anti-discrimination laws, it is well known that bias and discrimination still exist. Several experts and some people who successfully overcame what they thought was a bias said that a candidate in the making needs to practice what he or she might state when writing a cover letter or in an interview.  It is fair to ask the interviewer if a bankruptcy raises a question of integrity in the company.  The answer should come back as no, giving the candidate an opportunity to specify (for no longer that five minutes) why a bankruptcy has no impact on the candidate’s integrity or future financial dealings.  

Obtaining Passport with Recent Felony DUI

Federal law specifies reasons a US citizen must be denied and could be denied a passport.  Most, if not all convicted felons will have no issues getting a US passport. A person’s passport holds no information about the person’s criminal record and does not provide a person any statement of character. One’s passport simply identities the person stating that this person is a citizenship to a particular country. Again, every US citizen is eligible to apply for and to obtain a passport.  Unless the person is an enemy of the US or preached sedition and treason, save a few federal caveats: Federal law prohibits a US citizen from obtaining a passport if … Federal Agencies have the power and discretion to prohibit obtaining a passport if … The person can be denied a passport by the U.S. Secretary of State if the person is identified as a serious threat to national security or to U.S. foreign policy, in the states or out of the country. If the person is a convicted felon that already holds a U.S. passport, that passport can be revoked or have limited travel restrictions put upon it if the person is in one of above bulleted situations.  If the person lied to get the passport originally or if the passport has been altered, or use under false pretense, meaning fraud the passport can be revoke or taken from the person’s possession. Use of a passport can be invalidated for travel through countries with who the United States has formally declared war. Also if there is a severe danger to any US citizen.  The Secretary of State has this power over passports.  One can check the Federal Register for applicable information. A bigger problem than a passport is finding a country that will accept a convicted US felon, even if it is “only” a DUI.  Canada will refuse a US DUI misdemeanor, never mind a felon, Mexico, likewise, will refuse.  If a US felon travels to Canada or Mexico by ship, the US felon will not be allowed to disembark onto foreign soil.  So, a passport can be obtained but one may have nowhere to go.

Timeline for a District Attorney to Bring Criminal Charges against an Accused

This is another one of those situations where the individual states having varying statutes of limitations on various crimes, types, levels, and if it is a repeat offense.  Many experts from various states noted that the district attorney has up to one year in most states and up to two years in a number in remaining states.  This is one year – two-year limitation is for first-time offenses, usually misdemeanors.  As crimes become more serious, as is a felony, or a more serious class or level of offense, or if this is a repeat offense, the limitation value often increases.  In serious crimes, the accused may be jailed until an arraignment, but it is unlikely that the courts would allow that long jail time without charges to occur. The amount of time taken by a district attorney to bring criminal charges can be simply due to workload.  Most courts and district attorneys want to bring the more serious charges to court sooner.  Sometimes a court is simply overwhelmed by the number of cases and workload it has.  Other times it is the amount of time needed to investigate the crime(s) involved.  Interviewing witnesses, forensics, and the like, all add time to such an investigation.  Sometimes it is simply trying to find time for an arraignment in the court’s very busy schedules. The DA has to be very organized, filing papers for charges with the court, arranging whatever needs to be arranged.  In the meantime, a person who is likely to be accused can have his or her lawyer active and seeking to have whatever chargeable situation dismissed, or delayed with appropriate defense filings.  As a point of process, a number of lawyers noted that the district attorney’s office will send a letter to inform a person that the DA is moving ahead and filing charges against that person. The letter will most likely also be a notice of a hearing to be held for the bringing of these charges to court, requiring that person to appear.  If the person fails to appear, the court will issue what is known as a bench warrant.  Many people who have been on the wrong end of a bench warrant will swear that the warrant is served at the most embarrassing and inconvenient time.  It is the person being served who has the responsibility for being on top of what is occurring. How To Get Criminal Charges Expunged From Your Record It was noted that the person’s address on file with the state DMV is typically the source for a mailing, such as a court notice.  It is the person being accused who has the responsibility for ensuring that the address that is on file is correct so that the notice is delivered as expected in a timely manner by snail mail.  It was also noted by the experts and lawyers that the courts have no obligation of giving notice that no charges will be filed or that an arrest has been dismissed.  It is expected, again, that the accused and the accused’s lawyer are keeping track of what is going on and keeping themselves aware.

Canada, and Other countries, Can Refusee Entry due to Reckless Driving, Misdemeanor DUI.

Most people believe without any question or doubt that Canada has “open borders’, allowing almost everyone in the country. This is definitely not true. The Canadian Customs and Immigration Officers have an ultimate authority by law to allow and refuse anyone entry to Canada.  Nobody, no one, has an unquestionable right to enter Canada. Most people, however, if they do not have any criminal record are allowed entry.  This is another long term penalty that a person can suffer after having been convicted of some wrong doing in one the United States; refusal by a country to allow that person to enter into its territory is a right of every sovereign nation.  Even if the criminal act is only at a misdemeanor charge level, Canada, which shares the largest border with the United States, routinely refuses entry across its borders to anyone Canada determines is an undesirable.  Canada makes few exceptions, be it for relatives or business, for an hour.  Canada and many other countries view criminal activities somewhat differently than do any of the sovereign states that comprise the United States.  One very significant example is that a DUI misdemeanor in most, if not all of the states in the Union, is considered to be a felony in Canada.  The United States routinely refuses entry to the US by anyone who is a convicted felon in his or her own country.  While Canada can, does, and will deny entry to almost all with a DUI on their record, there are methods one can follow to be given permission for entry into Canada even with a DUI.  A person does have access to these methods if that person is willing to apply well before his or her trip or on the spot at border. It is heavily advised to make this application well in advance.  Google “Canada DUI Temporary Resident Permit Approval of Rehabilitation” for more information. The Canadian border customs agent does not have to ask a person if that person has any previous criminal conviction.  This includes misdemeanors. Anyone coming into the country is required by Canadian law to declare the conviction to the customs agent whether asked or not. If a person does not make such a declaration and then are discovered or questioned after entry, that person can be charged for illegally entering the country, which is far more serious. A person can be blacklisted and banned from entering Canada ever again. This will had a far more serious effect on you as it could also prohibit you from entering other countries.  It is advised to always know your responsibilities.  This requirement is clearly stated in any travel document that a person must proactively declare any prior arrests and or convictions. Since 2003 Canadian police and federal agencies use CPIC, the Canadian Police Information Center, which is a database maintained by the Royal Canadian Mounted Police (RCMP).  CPIC communicates with the United States National Crime Information Center (US NCIC), National Law Enforcement Telecommunications System (NLETS), Interpol and other international agencies.

DUI Probation Violation – What is likely to happen

It is often a struggle to try and figure out what part of probation do probation violators not understand. Brilliant move, it is.  It is also often a struggle to figure out why probation violators are so surprised by the fact that quite a bit of bad is likely to happen for being momentarily short on upholding the trust given by the courts and violating probation, especially in the wonderful state of California.  Probation is a statement of trust with which the judge allows the convicted person to not do jail time in trade for the convicted person’s agreement to obey the law during the period of probation and following other rules, like reporting in to the assigned parole officer.  It is expected by the court that the convicted person will respect these expectations of the judge and court and uphold that given trust.  A probation officer is assigned to the case and this is the person to whom the probated person now reports, providing evidence of meeting the court’s expectations.  Then, this DUI probation is violated.  A second DUI occurs and an arrest occurs for being on probation and violating the law again.  Experts say that it is likely that any penalties that the judge went lenient on from the first DUI may be re-applied now.  That includes jail time.  It especially includes jail time.  The mandated penalties from the second infraction can be, and will likely be applied in addition to the first occurrence’s penalties.  See where this is going?  The probation from the first occurrence will likely be revoked.  The parole officer or the court could issue a bench warrant for the violator’s arrest because of the breech of probation.  The result of this bench warrant could be immediate jail time.  Some experts recommend turning oneself in to the police voluntarily for the probation violation to save the embarrassment of being arrested at work, or while doing chores, or even at home in front of family.  A few people with experience from bench warrants said to immediate contact a lawyer who will tell the police the violators schedule and that the violator will voluntarily surrender when the bench warrant is issue.  Notice that is was “when”, not “if”.  Essentially every violator that related his or her experience stated that violating probation was even more wrong a move that doing the initial DUI, fully due to the results of that reappearance in court.  They all said (paraphrased) that it gave a new meaning to feel bad, mad and stupid about oneself, a real sense of hopelessness, inflicted on one’s own self.  Another bit of reality that occurs in the violation hearing is that the violator’s lawyer has little to use to try to lessen the impact.  The trust is gone, the characterizations are useless, little circumstantial will have any effect, because the judge will simply not want to hear it.  The court tried it once with probation and now here we are.  It will not work the second time.  In fact, no one related the experience of having successfully gained probation on a second DUI where it violated probation on a first DUI.

Joining the Army with a 1st DUI misdemeanor and a wavier

Many legal experts stated that the military takes DUI convictions very seriously, regardless of what and how the military is often portrayed in the media.  Coupled with other background information on the recruit, a DUI conviction can often be a reason for rejection.  Most non-experts said “yes”.  All of those who were in this situation when they joined said, “Yes.”  The stated cautions and qualifications, though, were many.  Everyone with the bad experience stated that the applicant had to be fully done with the court – fines, jail time, hearings, classes, and community service, whatever the obligations were that the court penalized the accused.  Otherwise, none of the services would even consider the applicant.  Following completion all of the court stuff, some said that only the Army would consider the applicant because of the recentness of the court actions.  Each one did say to at least talk with one or more recruiters for the service the applicant favored.  If the applicant was hoping for a shot at Officer Candidate School (OCS), even the experts, some service recruiters themselves, said that there was very little chance of getting into OCS.  No one implied or stated that there would be any needed “wait time” before the Army or other service would consider the candidate for regular ranks other than OCS.  Some recruiters recommended joining the regular Army, serving for three years, then, if wanted, seeking OCS.  Some recruiters implied that the circumstances around the applicant’s DUI and how that person conducted his or her self during the proceedings and throughout the working off of the penalties would be strongly considered in the applicant’s evaluation.  A person who was willing to accept the responsibility and took care of things quickly and efficiently is the type of person the military was willing to take in.  That person had integrity, a highly desired trait.  However, the recruiters also stated that an applicant that the Army accepted under that person’s recent situation would have to be on best behavior because the military did not want to harbor undesirable personnel that would only be a long history of trouble.  This likely meant that the Army would discharge the unwanted recruit if it deemed it best for the service. Some legal experts with military experienced said the same thing about how a potential military candidate conducted his or her self through this bad time would speak loudly during military recruitment.  These experts also stated that comments by the judge, verbally or written, if possible, would also have heavy weight for or against the recruit. But, here is something that was subtle, only pointed out by a few experts and people who experienced it.  If there is probation, the recruit will not be accepted until that probation is completed.  Also, if this probation is reduced so that the person can be recruited by the service sooner, it automatically disqualifies that person from being recruited.  Apparently, in some instances, an arrangement can be worked out between the military and the person’s parole officer, but there was no clear information on this, just that some people had experienced this.

S-Corp Company Officer has Personal Guarantee Company Debt and Goes Bankrupt

An S-corporation (S-corp) is one that is owned by its shareholders.  All profit or loss passes to the shareholders.  These shareholders must report this income, profit or loss, on their individual federal taxes.  An S-corp does not pay federal income taxes, electing to be taxed under the Internal Revenue Service’s (IRS) code: Subchapter S of Chapter 1.  So, what do S-Corp officers do or own?  S-Corp officers are usually shareholders, but do not have to be.  As a corporation, it has a board whose directors elect officers who run the company.  Every corporation is supposed to have by-laws that state which officer is authorized to do what actions, as well as which officers can direct which lower officers to do what actions.  It is not clear what the bylaws state, whether or not the vice-president was authorized to obtain loans, issue credit cards, and make personal guarantees for the S-corp. As to the bankruptcy filed by the vice-president, the personal guarantees made by the vice-president are likely to be dismissed at discharge because the loan and credit are unsecured.  This is standard Chapter 7 bankruptcy law.  The debt owed, however, still exists.  Credit law states that if a personal guarantor fails to pay, or has his or her guarantee dismissed by bankruptcy, the other people involved in the debt are still liable for that debt.  This would mean that the debt now falls back onto the S-corp itself … and its owners.  By definition, it would appear that the S-corp itself can file bankruptcy, have its assets liquidated to pay off the creditors.  However, whatever debt is leftover following the discharge of the S-corp bankruptcy, the shareholders of the S-corp are now individually liable for the debt.  The creditor(s) will not care who pays the debt and will likely go after each shareholder individually for the entire payment.  It sounds silly when it is written out or one says it, but that is exactly how the system works.  Of course, each of the shareholders can file bankruptcy, but the initial filers are likely to be hit the worst as the debt is higher at first.  The creditors still do not care who pays them off.  The bankruptcy court can force a re-organization, foreclosure, insolvency contingency, or other legal actions available to the court. One point as yet unexplored is “what if the vice-president was not authorized to obtain loans and issue credit cards?”  In this case the vice-president could be guilty of “forgery” by unauthorized signature, and therefore be criminally liable for the loan amount and credit card charges.  It is a situation that would have to be unraveled by the police or other pertinent agencies to some conclusion, and possible fraud conviction for the vice-president.  In some bylaws, as stated before, one officer can have authorization to authorize another, lower officer to do some action, such as obtain loans and issue credit cards, and use personal guarantees.  It would be prudent if the vice-president has that authorization in writing.  What one can prove or not prove typically makes the difference in this type of situation.

The Worth of Writing a letter to the Judge for a DUI charge

On one point, the non-expert people seem split on writing a letter to a judge or having others write character witness letters to the judge.  Some say definitely do it as it will help, some say do not as it will not make a difference, and some say why not, it cannot hurt the cause.   No experts were found overtly saying to do it, but some experts did have templates and suggestions on letters, personal to the judge and witness letters to the judge.  Sincerity, honesty, willingness to prove one’s sincerity, all to obtain a lesser penalty as to lessen the impact of the guilt on one’s life, is the goal.  A judge has seen and heard way too much in the way of “sorry” because the person does not want to be accountable.  Showing a willingness to be accountable, in words, is the challenge. On a second point, the grave concern that a conviction will doom the person’s application to medical school needs further exploration.  Many suggest asking a lawyer to inquire at the person’s school(s) of choice to mask the applicant.  The question to ask appears to be what impact a DUI misdemeanor will have if within the past year, or two.  Also, ask the same question if the DUI conviction is a felony conviction. On a third point, many where frankly amazed that the person was facing a DUI felony for what is assumed to be a first offense.  This included experts as well as experienced people.  On this point each state has its own statute on what criteria makes a DUI a felony versus a misdemeanor.  Most often the statute identifies the criteria for a felony, and everything else that is not yet at the level of a felony is considered to be a misdemeanor.  Every state varies, but every state allegedly makes it clear what rises to the level of a felony. Back to the DUI case itself and the petitioning of the judge.  In most states the current approach to DUI law and rulings is to remove the subjectivity around categorization and penalties.  States, being strongly and relentlessly pressured by anti-drinking groups, are moving towards stricter, mandated penalties.  This gives a judge less and lessening leeway when it comes to categorizing a DUI, as well as applying penalties.  The categorizing of the DUI is becoming stricter, with the move towards lessening the criteria for a DUI to be categorized as a felony.  Currently, most states reserve felony to repeat offenders, or initial cases with severe impairment, severe damage, obvious disregard for life or property, or death.  It is a cruel lesson to learn as a DUI conviction, even if “only” a misdemeanor, it will mess up a person’s life, at least in the relative short term of up to five years.  Part of the messing up is a person’s job, or career, or plans for school and a career.  Great is a person survives the experience, even better if no one was hurt and no damage was caused.  But, the consequences are rarely ones that an individual can absorb easily.  The conviction exists on criminal records, for the most part, “forever”.  Even if expunged, a “hard inquiry” will find it.

Dropping DUI offenses if the officer does not appear at hearing

Criminal conviction has many differing requirements and criteria that must be met before a conviction can be applied to a case.  In the past decade, several national, state-wide, even local jurisdictions have been awash with advocacy groups against the seemingly ease that DUI arrests are dismissed or discharged. Each state has its own rules for defining what that state considers to be a crime, what needs to be proven to convict a person of a crime, and what punishment will likely be applied if a conviction does occur.  Also, each state defines what type of hearing, criminal or non-criminal hearing will be held for different DUI arrests and situations. As a part of these hearings, the state will define what is necessary for the proceedings of these hearings, who must be present, and for what reasons.  Some states do require that an arresting police officer or state trooper be at the hearing.  That the arresting officer being absent from the hearing is an automatic reason to drop an arrest charge is an entirely different story.  These days there are an increasing number of tools that are available to the law enforcement officer and that the officers willing employ in the line of duty.  For a possible DUI, the officers have the breathalyzer, can have a videotaping, usually have some audio taping over their duty microphones, and sometimes an oft-chance eyewitnesses other than the officer.  Unless it is a requirement for conviction, that the arresting officer be present at the hearing or trial, if other means of evidence are available, the accused will have less than an easy time trying to have the accusations set aside. As in any accusation, the State involved must prove that the arresting officer had sufficient reason to stop the vehicle in the first place.  Secondly, the State must prove that the arresting officer had sufficient reason to consider the driver as unsafe behind the wheel after stopping the vehicle and asking the driver to come out of the vehicle.  This become rather difficult without the arresting officer at the hearing or trial unless the other evidence gathered is in itself substantial and sufficient to not need the evidence and testimony of the arresting officer.  If there is video of the driver being unable to stand upright or walk in a straight line, if there is audio of the driver being unable to speak coherently or clearly answer the officer’s questions, if the breathalyzer has a reading that is beyond any reasonable doubt or challenge by contrary experts, if might be wise for the accused to consider his or her challenge.  Of course, the only way a person can be guaranteed to be found guilty of such an accusation is to plead guilty. Most experts advise not pleading guilty as there is always a chance that something will turn out wrong for the State and its evidence during the proceedings.  With the climbing rates of occurrence of DUI arrests, most jurisdictions give the arresting officers work time allotments for the time spent at a hearing or trial, this to also increase the likelihood of a DUI conviction.

How Far Back Are Bank Records Checked When Filing for Bankruptcy?

When one files for bankruptcy, that person knows or should know, that the court will be looking at the debtor’s life very closely and the debtor’s bills and payment records even closer. Under normal conditions, a Chapter 7 bankruptcy trustee or a Chapter 13 court official will want to review your bank account records and your credit loans and card account records, and your tax filings, and other financial dealings. What the inquirers are looking for are hard cash and saleable assets that can be seized to pay the debt. They will also be looking for evidence of any income or assets that are by law are exempt. Just like the debtor, the court-appointed people and the creditors are bound by both federal and state laws. Having your records available and organized tells the court and its officials that you are ready to cooperate. Although it is a difficult situation, having a good attitude and showing a willingness to work with the court officials often work in your favor when discussing hardships, seizures, and exemptions. Several people have noted a “favorable” result from being forthright and open. For taxes, many people and some experts started to expect to be asked for two years prior filings. For the rest, it appears that about three months of prior records are what is likely to be requested. Again, this is typical. Of very special note, everyone stated to remember that in all dealings with the court, judges, appointed officials, you are under oath. When you file for bankruptcy and deliver requested documents, you file them while you are under oath. This means two things: The penalty for deceit, not just an honest mistake, is possible fraud and perjury charges. The courts and their officials may start asking for many more months of documentation to determine fraud and its extent. Several people had some good experiences as advice, but also had one oddity that struck a chord that needed mentioning. Depending on whom your circle of friends and business dealings are, consider if you have had any financial conflicts or bad feelings around financial dealings. After Filing for Bankruptcy Can You Keep Your Checking Account? The reason is that an unfriendly acquaintance that knows something about your finances that you might not be forthcoming about with the courts might come forth and tattletale on you. This might put you into the fraud and perjury situation mentioned previously. Also, some experts warned that, like the IRS, when fraud is suspected, the agency or court will go as far back as it wants or can to prove the charges. As stated before, three months of records seem to be a norm in most of the state jurisdictions. Some people noted that some states automatically request more records. One person stated that Kentucky requests six months of prior records. A decent source for information about bankruptcy and what goes on exists online. Several experienced by people who filed repeated the same mantra, that different states have different rules beyond the federal rules and, as always, that a good lawyer is worth the money paid.

Do DUIs Carry Over Into Different States?

Short answer is: “Not automatically, but very likely”. There are several reasons for that answer. One reason is that there is now a consortium for sharing “driving under the influence” (DUI) convictions and most of our fair fifty states in our union are members of this DUI information consortium. One person lists the states that are members and not members. One particular point to make about this list is that it lists only DUI convictions, not arrests. A second reason for the short answer is that most of the member states will use the fact that the offender in front of them, having DUI convictions in other states treats the offender as if the prior convictions had occurred in their state. One can see where this is going. A tidal wave of bad result is rushing in fast. A third reason for the answer is that, as one can expect, even the member states handle DUIs that occur out of state differently. As an example, we will look at California. Several contributors related that the state of California will investigate out of state DUIs to determine if the reasons and criteria for the convictions are in line with the reasons and criteria for DUI convictions in California. If so, the out of state convictions will be counted like a California DUI. But, if not in line, the CA courts will ignore the out of state convictions. Realize that this is California and not all states think like this state does. Several states will take out of state DUI convictions just as if the DUI occurred in their jurisdiction, regardless of the criteria. A fourth reason is that once the state in which the latest DUI occurred gets done with you, you may have to face repercussions in your own state. A jurisdiction other than the state that issued your license cannot take away that license. However, it can revoke a person’s right to drive in the offended jurisdiction. It can impose jail time. Then, when the offender arrives back in the home state, license loss, revocation of a suspended sentence if the DUI breaks some accord you had with the courts, suspended jail time becomes reinstated are just some of the things that can await that offender back at home. Several people made several statements that provided interesting, diverse news around DUIs. Also came up with a probation officer’s site. This officer explains what is likely to happen following an arrest for DUI out of state. In some states, the offender can negotiate to serve penalties in his / her home state. Different states have different rules with different leniencies. Again, there is some interesting and possibly worthwhile reading online. As always, the first thing to do when faced with a DUI charge is to consult with a DUI lawyer in whatever jurisdiction the DUI occurred. Also, attend out of state court hearings. Skip a hearing and a bench warrant will be issued. Some states will extradite if requested.

How Long Does it Take a DUI to Fall Off Your Driving Record

The very short answer is 10 years, at a minimum. Research came up with Florida retaining the mark on your driving record for 75 years. Tennessee retains it for life. In the case of the Florida retention, given a DUI offender is likely to be over 15, this means an offender will have to live deep into the 90s in age before the offense comes off the record. It has the same effect as Tennessee. In the fairly recent past, many states have had shorter durations, and even insurance companies had various durations, depending on the state where the offender held a driving license. But now, every state holds a minimum 10 year duration for a DUI on your driving record. That being said, there are a number of online sites touting your ability to get post-conviction relief in various ways to various levels, even to getting the conviction set aside, as if it was a “not guilty” judgment. You allegedly can do some things in some states using various methods, which they will sell to you for a few dollars more. One very low pressure site, [http://www.myduiattorney.org/what-happens-after-a-dui-conviction/how-do-i-get-this-dwi-dui-off-my-record.html] is by an attorney who goes through quite a bit of information as to what the possibilities are, in general. Good advice is given with the words to consult a DUI attorney in the conviction state. But, this attorney also has what seems to be a relatively inexpensive document one can purchase on things to consider and that you can do. Be aware, as is usual, that state rules on a DUI conviction are different depending on the state. Some states simply do not allow any reduction or change or “lessening” of the effects of a DUI conviction – the mark on your driving record stays for the entire duration. In those states, contributors say to also simply save your money, as an attorney will be unable to assist you in any way. But, a free consultation never hurts. Research found several insurance companies in various states that will work with a DUI offender to provide reasonable insurance at a reasonable cost. “Reasonable” is always relative. Another possibly useful site is [http://search.dmv.org/dmv/out-of-state-dui]. This site has links and limited information about out of state DUI convictions, impact, insurance, and the like. It is essential serving as a portal to other sites and information, mainly by state (due to the varieties). The site also has some more general DMV links and information, so it is broader than just DUI. As a note, more than a few sites and contributors wanted readers to be aware that there is also a criminal record that the state has and that this is different that the driving record. Just an FYI …. Handling and dealing with the criminal record is a whole other situation, again, varying by state. Consult a lawyer in this case. One last item found. A site, [http://www.duivsdwi.org/], goes through a discussion that some states have a clear distinction between DUI and DWI, “driving while intoxicated”. DWI is often treated as a lesser offense. DUI can sometimes be reduced to DWI.

How Much Is The Settlement From a Lower Back Injury?

There are a number of factors that have to enter into what will become a somewhat complicated calculation. Some of the readily available factors are: Who is accountable for the situation, accident, and/or injury? Is it a car accident or personal injury, or both? Is the damage from the injury temporary or permanent? Is it temporary now, but turn into a permanent damage? What work can the injured person do and what the person not do as a result of this injury? Will the person’s ability to work degrade as time goes on due to the injury? What changes to the injured person’s quality of life have occurred due to this injury? What will occur over time? Age is a factor. Family situation is a factor. The state, whose laws preside over this injury, is a factor. One contributor stated the American Medical Association publishes guidelines for rating permanent injuries. It is currently in its sixth edition, and an available guide (not the actual content) is online. The actual AMA document cost some decently dollars to buy. But, even the guide itself has some interesting reading. Several contributors stated that a baseline is often established by using the costs of current treatments and extrapolating that cost out over how many years the injured person might live, using age as a factor. On top of this, other factors contribute to the calculation that will ultimately lead to the settlement. When it comes to settlements, and lawyers are involved, remember that lawyers often see the dollar signs, not the timeline that you the injured party has. A lawyer wants to maximize the settlement, not just for the injured party. A distinct difference is made in the AMA guide between soft tissue and structure / bone damage. For the most part, soft tissue is expected to heal over time, making it typically a temporary injury, unless it is pointed out definitively by a medical professional. One of the biggest factors is the state that has jurisdiction over the injury. As is typical, different states have different exemptions, definitions, references, limitations and so on, ad nauseam. In most cases it would be wise, as always, to discuss your condition and situation with your own lawyer. As a radio ad tells us, workman’s comp companies are not in the business of making payouts. The injured person is not the workman’s comp company’s client. The injured person’s company is the client. This now brings up the eternal struggle between actual injuries and faked or exaggerated injuries. So many people file for compensation that it burdens the system. We all too often read about faked injuries in the news. What is truly horrifying is that people in positions of trust and high accountability are found to be the offenders. It has force compensation insurance companies demand a greater and every growing stack of proof. Even doctors have been found involved in schemes to defraud. So, to summarize, with all of the various factors involved, it is essential impossible to estimate a settlement here. But, with a good lawyer and solid documentation, it is likely that you will do well.

Can Banks Seize Your Assets if you Default on your Mortgage?

In general, “yes”, a financial institution holding a mortgage can sue for full repayment of the loan amount outstanding on a mortgage where the debtor has defaulted. When a house is foreclosed, and sold, and the sale does not raise enough money to pay off the loan, the institution can then file for a deficiency judgment to seize other debtor assets to obtain full pay off, plus expenses. The liability of expenses being put back on to the debtor is an unexpected and new point learned here. A deficiency judgment is an expensive way to go for a mortgage holder. You, the debtor, may be held liable for fees and cost around the foreclosure and the judgment. However, the laws of each different state around these events also differ. So, as always, it is best to contact and engage an attorney who knows the rules in the state where your home and mortgage are. While the Internet will give us all types of scenarios and all kinds of results, one must try to wade through this quagmire alone. An attorney is essential. Some of the more sensible information coming from scenarios from online contributors does center on trying to prevent your situation from getting to the default point … and beyond. When difficulty arises, discuss the situation with the holder of your mortgage. Try to work out some way to modify and continue the relationship. This does not necessarily need attorney involvement. Otherwise, at least make the “return” of the house to the bank something less than a court battle. This might be a situation that does necessarily need attorney involvement. Another contributor had the experience where a bank wrote off the mortgage balance. The twist was that the bank then sent the debtor a 1099-MISC tax form, which is a notice of income statement, on which you will owe state, local and federal taxes, social security, and so on, and most likely, the Federal demand will be at the taxable bonus rate of 30-36 percent. Here, you would do well to consult a tax advisor before getting hit, if this is the law in your state. Other aspect of asset seizing is the seizing of bank accounts, other assets like a car or worthwhile collectibles, and the like. Some states allow the garnishing of wages, while some states prohibit it. Another idea put forth was to try a short sale or put up your property for sale for at least the amount you owe. As the contributor noted, the debtor will only get some small satisfaction from being out of debt, but that it will at least leave the debtor with a lot less stress. A default on a mortgage also hits the debtor in his or her credit rating. An alert gets put on by the mortgage holder. This prevents the debtor from using the property as leverage or collateral for any other type of credit transaction. So, to summarize some of this, if you are going to default, try to get away with something, discuss it with your mortgage holder, or sell the property to pay off the mortgage and get something out of it. At least, talk with a lawyer. A consultation is usually free.

Can a Foreclosure Happen After Bankruptcy Discharged the Debt?

This is a very difficult concept for many people to understand. Several lawyer site profess having trouble getting clients to see the difference between a debt and its lien on an asset. As always, the best recommendation when dealing with foreclosures and / or bankruptcy is to discuss your situation with a lawyer in your state of residence. Bankruptcy and credit consumer protection laws and foreclosure laws can vary widely from state to state. Chapter 7 bankruptcy typically wipes out unsecured debt, any debt that is not a loan against a tangible asset, as in a car or house. In general, however, you still have to deal with secured debt as a part of a Chapter 7 bankruptcy. A secured debt typically has a lien on the asset, in this case a residence. In some way you must satisfy the first mortgage and any junior mortgages or lien holders before you can sell the home. A “home equity line of credit” or “HELOC”, is a junior or subordinate mortgage and lien to a primary. That means it has secondary or lesser priority than the first mortgage, but, it is still tied to the property. The Chapter 7 bankruptcy terminates your liability on the primary and the HELOC. However, it does not remove the lien that was posted against the property when the loan was given. A lien is a credit mark alert that a security interest by a lender was posted against the property to ensure loan payment and to insure any title check on asset transfer will show that a loan is still pending. The lien is recorded at the county recorder’s office in the town or region where the property is located. You cannot clean off a lien in a Chapter 7 bankruptcy. The only thing Chapter 7 does for you is to prevent the HELOC lender or other subordinate lien holders from suing you or pursuing you to pay on the loans. However, and this is the crux of this article, the junior lien holder retains its legal right to foreclose on the property. While Chapter 7 protects you personally from a lawsuit after filing for bankruptcy, your property has no protection from foreclosure in the future. This is what most people do not understand. Even if the lender is unlikely to foreclose when there is no equity in the property, the lien prevents you from selling without the lien holder knowing about it. To illustrate the situation, say your house is worth $220,000, but you have a first mortgage of $260,000 and a second mortgage of $60,000. The second mortgage lender could force you to sell the house. But you get only $220,000, and have to give that to the first mortgage lender. This leaves nothing left over. That would be an ill-advised business decision. So, the junior mortgage can simply wait for the market to improve and for equity to accumulate in the asset. Foreclosure continues to loom in your future. At this point, you likely have to negotiate with this junior lien holder. This lender knows that there is no equity in the house. You could try to work out a deal that would give the junior lien holder a reason to allow you to sell the property, and settle this debt.

Can VA Disability Benefits Be Used as Income in Chapter 7 or 13 Bankruptcy?

There is a lot of information on this. US Code 38&5301(a) state that VA Disability is not considered income. Bankruptcy Code (BC) 11 USC 522 (d)(10)(b) states that VA Disability is exempt the same way that Social Security Disability benefits are exempt. . But, is it considered to be income? Essentially, it is income. But, a veteran does not have to pay taxes, nor is it part of income for bankruptcy. It is exempt there. A very interesting, top-search-return is this pdf: [http://www.iurillolaw.com/docs/Keep-in-Mind_that_There_are_Exceptions-for-Veterans-in-the_B.pdf] This is a lawyer’s presentation for veterans in the situation where one is in or facing bankruptcy. In this content, it specifies that Section 522(b)(2) of the Bankruptcy Code states that a veteran who is a debtor has the right to receive veterans’ benefit, and that it is exempt in a bankruptcy case. This means that the debtor’s veterans’ benefit will not be part of a debtor’s estate in a bankruptcy that is already in place, or if that veteran decides to file for bankruptcy. [Refer to 11 U.S.C. 522(d)(10)(B)]. However, the state of Florida tries to get around this in section 222.20 of the Florida Statutes. Here, Florida has chosen to not follow these federal exemptions. Regardless, section 222.201 of the Florida Statutes specifies allowed personal property exemptions in Florida, and included in that list are … veteran benefits. [Refer to Fla. Stat. § 222.201.] So, when a veteran files bankruptcy, Florida’s exemption law is applicable. Any veteran benefits that the debtor receives will remain as the debtor’s property and can not be included in the property listed as a part of the bankruptcy estate. This pdf source has another interesting part of this story. It also says that credit counseling is a strict, mandated requirement under the new bankruptcy laws for every debtor. In fact, Section 109(h)(1) of the Bankruptcy Code states that an individual may not file bankruptcy unless that individual has received credit counseling within 180 days preceding the bankruptcy filing date. [Refer to 11 U.S.C. § 109(h)(1)]. Yes, you read that correctly. A person must be counseled at least 180 days (6 months) before that person is allowed to file. The Bankruptcy Code goes on to strictly limit allowed exceptions to this required credit counseling. , The bankruptcy court may decide that after the notice and hearing occur this credit counseling requirement will not apply to a debtor unable to complete counseling due to “incapacity, disability, or active military duty in a military combat zone.” [Refer to 11 U.S.C. § 109(h)(4).] Note Well: while the Bankruptcy Code does identify participants on active military duty in a combat zone as an exception, it does not list “veterans” as an exception to the required credit counseling. Last part of this story is that “means testing” can lead to a veteran’s exception, required in a Chapter 7 bankruptcy case. The debtor’s bankruptcy petition must contain a specific completed form: “Statement of Current Monthly Income and Means-Test Calculation.” Referring to Section 707(b)(1) of the Bankruptcy Code, a Chapter 7debtor’s bankruptcy case may be converted, even dismissed, to a Chapter 11 or 13 case if any financial abuse is found during the hearing. The bankruptcy court Evaluates the debtor’s current monthly income, the “means testing”, and decides if abuse occurred.