DIvorce and property deeds

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Deeds and Divorce:

If you are recently divorced or in the process of getting divorced and the agreement calls for a real property transfer by quit claim deed, do not delay this task. If your future ex-spouse has agreed to sign a quit claim deed to the house, do it now. If you wait until you need to sell or refinance the house, your ex may not be cooperative, or creditors or the IRS may have intervened.

Many divorce attorneys will craft a divorce settlement agreement that simply states that spouse “A” shall relinquish his or her rights in the marital home. Although this provision if agreed upon becomes binding on the parties, if the actual deed of transfer is not drafted and signed, the person that was to release his or her interest still maintains an interest. The divorce agreement is not binding on the creditors of the releasing spouse.

Why you should not delay having your ex-spouse execute a quit claim deed to the house you received in the divorce: If the deed has not been signed and recorded, and your ex gets sued and a judgment is entered against him or her, the judgment will attach to the property. Then, even though the divorce says you get the house, you will have to pay the judgment before you can sell or refinance the property. If your ex-spouse does not pay the IRS, the IRS will attach a lien on the property. Again, even though you have a divorce decree that states you get the house, and that your ex has relinquished all interest, if the deed was not executed and recorded prior to the IRS lien, you will have to deal with the IRS before you can sell or refinance the property.

For attorney drafted property deeds visit LegalCreation.com. Kevin J. Pratt

Collect a debt

If someone owes you money, you have a right to collect it.  If you don’t actively pursue the collection of the debt, the debtor has little or no incentive to pay you until after they pay everyone else.   Even if the person or business that owes you money is struggling, and you want them to stay in business and be a future customer, it is important that the debt to you or your company be one of the first debts paid.  The first debt collector in line often gets the larges piece of the pie.  The last creditor in line may not even get crumbs.   

 

            When your company is owed money, you have a duty to collect as much of the money owed as possible.  The stockholders, even if it is only you, are entitled to expect that the managers and officers will do everything in their power to maximize revenue.  Even if that means using a debt collection law firm to threaten or initiate a lawsuit to collect a debt.

 

            Would you like to be first in line when the person or company that owes you money pays their bills?  To get first in line you need an aggressive collection law firm to put your debt in the must pay now pile.  At Kevin J. Pratt, PC, we understand you want to collect your accounts receivable.  Cash flow is important if not crucial to the success of your business. We also know from experience that debtors will pay the pressing creditors before they pay the quiet ones. 

 

            www.Legalcreation.com   “because your rights are worth protecting!!” 

Bankruptcy as an option

Bankruptcy as an Option

 

In times of current economic hardship, many of us have hit the wall and we feel as though we are out of options.  No matter how hard we work and how hard we push ourselves to strive and succeed, things beyond our control throw us into an economic downward spiral.  Unexpected loss of employment, illness, or business failure may have you considering Bankruptcy.    If you feel you have gotten in over your head, filing a Chapter 7 Bankruptcy may be a great option. 

 

If you are a debtor faced with financial trouble and you are not able to pay off debt you have incurred, you should consider filing a Chapter 7.  Contrary to popular belief, you do not lose everything you have acquired.  Under Chapter 7, the debtor may claim exemptions. By proper use of the exemptions most people can keep all of their paid off personal property.  Although it is not the typical situation, if you do have a lots of valuable personal property the trustee can sell the excess property and apply the proceeds to your debt.  The good news is that even in the extreme situations, you have some control over what assets are liquated.   

 

Georgia’s Exemption Statute, O.C.G.A. §44-13-100, provides for the following interests to be exempt.  You may exempt $10,000.00 to $20,000.00 interest in real property, $3,500.00 in motor vehicles, $5,000.00 in household furnishings, household goods, wearing apparel, appliances, books, animals and other items that are held primarily for the person, family or household use or a dependent of the debtor.  In addition, you may exempt $500.00 in jewelry, $1,500.00 in “tools of the trade”, unmatured life insurance, and other items.  In most cases there is also a “wildcard” exemption of $5,000.00 that you may claim against other non-exempt property.    

 

Although the actual decision to file bankruptcy may be difficult, most people agree that once the decision is made, the feeling or relief is immeasurable.  Moreover, once your case is in the hands of a qualified attorney the process of actually filing for Bankruptcy is relatively easy.  If you find your debt rising faster than you can keep up, do not prolong the decision.  The law allows you to get a fresh start.    www.Legalcreation.com

Should I file bankruptcy?

SHOULD I FILE BANKRUPTCY

 

“Should I file bankruptcy” is a very common question.  Although Americas bankruptcy laws date back to the 1800’s, deciding to file is much more common today than at anytime in the history of our country.   In responding to the question, I have often used a simple rule to evaluate whether filing bankruptcy appeared to be a good financial decision.  If the person owed more than half of their annual income to unsecured creditors, filing bankruptcy was a sound financial decision.   In such a situation the person would almost never be able to get out of debt. 

 

Putting the economics aside, the decision to file Bankruptcy is a purely personal decision.  In this Country, with few exceptions, we do not put people in jail because they did not or cannot pay their debts.  Therefore, if you have no assets and no steady income, the creditor can not get anything from you.  In that situation a person is commonly called judgment proof.  A judgment proof person may still want to file bankruptcy to get a fresh start.  It is easier to get motivated to get a better job and acquire assets when you do not have to worry about having it taken away by a creditor. 

 

Whether to file bankruptcy may depend on the consideration of how the decision will change the quality of your life.  If the creditors are not calling and you’re not receiving letters threaten to sue than the fact that you owe the money may have no effect on the quality of your life.  If you are receiving calls and letters, and you are struggling to pay some of the creditors to keep them at bay, or more importantly, if you are borrowing from one creditor to pay another, you likely have serious quality of life issues that need to be addressed.  In such a situation the elimination of your debt seems more like a necessity than a choice.  

 

During the Bankruptcy process, many negative emotions may go through a debtor’s mind. One common tendency is for a debtor to feel as if they are giving up or they are taking the easy way out.  For those with these concerns I simply remind them that for most people the majority of the debt you seek to eliminate is the money owed to credit card companies.  Then remember that these companies raised your rates when you fell a little behind virtually assuring you would ultimately not be able to pay the debt.   www.Legalcreation.com