16 May
Posted by Hayley Crosby as Credit Score
With the US Housing Market as Bad as it is, How Will Potential Homebuyers Know When it is Safe to Invest in a Home?
Though Arizona’s housing market is recovering faster than most states in the nation, prices for homes are still high and inflation remains to be a concern for many potential homebuyers. Houses are like any other functional consumer good, and their prices are affected by short-term supply and demand as well as long-term inflation.
When deciding whether or not it’s a good time to purchase a home, potential homebuyers should consider a variety of factors including: the housing trends in your local market, house inventories, rent yields, and foreclosure rates. There are numerous techniques to predict future housing prices, but their accuracy is speculative. Each
06 May
Posted by Hayley Crosby as Credit Score
One of my clients told me he wants to create a two member LLC to operate his business. He understands that he needs more than one member for asset protection, but he has no business partners and he is unmarried. So, he proposes to have the LLC manager (him) cause the LLC to form an irrevocable trust for the client’s benefit with discretionary distributions and a spendthrift clause. The LLC would be the grantor; my client would be the trustee and beneficiary. The trust would own 10% of the new LLC. He asks if this arrangement would protect his interests in the LLC.
The clients beneficial interest in a discretionary spendthrift trust would be protected so long as someone else created the trust for his benefit. The qu
13 Apr
Posted by Hayley Crosby as Credit Score
Often times, when people consider filing for bankruptcy, they think theyve reached their worst case scenario. However, in reality, people have many options when filing for bankruptcy. The length of the bankruptcy as well as the amount written off can vary according to what chapter you file. The benefits of filing a Chapter 13 are so numerous that it becomes difficult to list and explain them in just one blog post. The next few blogs are devoted to highlighting some of the benefits and resources in a Chapter 13 to outline the options available to you if you are considering filing bankruptcy in Arizona.
One of the benefits of a Chapter 13 bankruptcy is that it enables a debtor to retain some assets that would otherwise be liquidated by a bankruptcy trustee under Chapter 7. In
06 Apr
Posted by Hayley Crosby as Credit Score
I’ve said before that I have learned about some of the cleverest asset protection tools from my clients. An new asset protection client owned a very successful internet based business. The business generated revenues of over $ 1 million each month- that’s $12 million or more annually. Because the business was entirely online, revenue is entirely credit card payments. the bank processing credit card payments “holds back” a cash reserve against disputed charges. The hold-back money belongs to the client and eventually would be paid to him if he discontinues his relationship with the bank processing his credit card receipts.
This client is threatened by potentially large civil claim. He is conc Read full post…
A benefit of fling a Chapter 13 is that it comes with the ability to strip a 2nd mortgage or home equity line of credit. If you are “upside down” on your home (meaning that you owe more on home loans than what your home is worth), a lien strip could be the most powerful tool to protect you from creditors. Since the recession began, millions of Americans found the value of their homes decrease in value and now owe more than the appraised value of their home. And if you are a homeowner with a second mortgage, owing more than your home is worth can be a major financial burden.
According to the Bankruptcy Code, Section 506, a lien is a secured claim if there is value in the asset to which it attaches. If the claim exceeds the value of the collateral, that portion of the claim is unsecured. Wit
Basically, an adversary proceeding is when one party files against another party (in the context of a bankruptcy case). There are only three parties that can file such a proceeding: the creditor, the trustee, and the debtor. The proceeding goes to court and a bankruptcy judge determines who wins the case, much like a traditional court trial.
A creditor can file an adversary against the debtor. Generally, the creditor is trying to argue that the debt owed to them shouldn’t be discharged. In most cases they are trying to argue that the debt falls under a discharge exception, because it was created through fraud, willful or malicious injury, or a personal injury case caused by drunk driving. Alternatively, the creditor may believe that the bankruptcy case was done in bad faith. Ho