Estate Planning Lingo

It’s never too early to think about estate planning, no matter what anyone may tell you. Make your first call to a qualified estate attorney to make sure your wishes are observed later.

When it comes to estate planning, there is a lot of lingo of which many people aren’t familiar; for instance, power of attorney, living will, and last will and testament. What do these things really mean in the greater scheme of making your last wishes known?

If you speak to an estate lawyer, you will discover that these particular documents are critical to making sure your assets are properly distributed, not only according to the law, but that your legal interests are protected as well. It goes without saying that you would also like your assets apportioned the way “you” want them to be and not at the whim of another.

In general, a will is a document that outlines how you want your assets distributed when you die. It’s funny, but the number one myth many people have about wills is that you have to tell the lawyer drafting the will all your personal financial information, where it is, how to access it, and how much you have on hand. This couldn’t be further from the truth.

The only thing you need to worry about when writing a will is to whom you want your assets to go, what percentages each should receive, and the distribution of special items, e.g. a much loved painting, car, horse or home. That’s it in a nutshell, aside from the legal drama within the four corners of the document itself, meaning the legal jargon that is necessary for the will to meet the legal requirements of the state in which you live.

You will, of course, need to name an executor/executrix to handle the estate affairs once you pass on. Choose well and ask the person’s permission, as this is a very significant job in some instances. The executor figures out all the estate’s assets and liabilities, pays bills, distributes assets according to the will, and in general takes care of the hundreds of other nitpicking details to finalize an estate.

If your will calls for money to be left to a minor, you will also need to name a Trustee. Again, ask the person you want to if it’s ok with them if you do this. Your legal counsel will outline all these details for you when you are drafting your will. If you have a living will, that is another thing and relates to medical treatment, not the disposition of assets.

Primarily a living will tells your loved ones what you wish to do should you be permanently disabled with no hope of recovery. Usually this refers to a coma or a permanent vegetative state. In some states two doctors must certify there is no hope of recovery. Ask your estate lawyer which law applies in your state.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Business Bankruptcies Need Legal Counsel

Going bankrupt is not a lot of fun for anyone, personally or if you need to declare a business bankruptcy.

Before you get so far into the red with your business, you might want to think ahead and have some contingency plans in place if you face tough times down the road. The economy today is not in super condition and we are actually facing a rather serious recession.

In a recession many things happen, not the least of which is people stop buying items they view as “extras.” There isn’t much in the way of discretional funds to spend on things that people once didn’t think twice about buying. Keep that in mind if you are in business during a recession and your product or service is something people deem “nice but not really needed right now.” You may face an uphill battle to stay in business, so having an alternative plan if struggling with a serious decline in revenue only makes good sense.

If you are considering declaring bankruptcy, then the first thing you need to think about is whether you want to continue to operate your business or not, and whether it is viable to do so. Depending on your business’s situation, different kinds of bankruptcy can help you to liquidate the business or reorganize it and continue to run it.

What you really need to know is what your goals are for the future of your business, as there are several routes open to you to declare bankruptcy. This is where your bankruptcy attorney will outline the various options from which you may choose.

The route of bankruptcy you choose will largely also relate to the type of business you own, e.g. partnership, a corporation or sole proprietor. Don’t waste a moment trying to sort out what to do, as this is precisely what you hire a bankruptcy attorney for in the first place. They are there to help you through the process and will outline what you need to know to make an informed decision that is best for you in the prevailing circumstances.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Estate Planning Requires Reliable Information

Planning what to do with the assets of an estate takes a great deal of legal knowledge and the proper kind of information to ensure that the will accurately reflects the wishes of its creator.

Never try to write a will without the assistance of an attorney. There are far too many legal loopholes that may arise and cause untold havoc later. In addition, tax laws and other legal rules that affect estate planning tend to change fairly regularly. Being up-to-date and totally legal when drafting a will is for the benefit of the client who wants to ensure their assets are distributed as they wish – legally and without any hassles.

If there is a provision for a charitable trust in the will, keep in mind that charitable trusts have serious tax incentives. However, having said that, they are not just a tax shelter. They are perhaps the best way possible to make provisions for a charity of the deceased’s choice.

A trust works by primarily transferring assets from one entity to another. Although that may sound easy, there are other considerations that have to be met, e.g. the transfer must be done in an efficient and timely manner. This works by allowing the person to have a stream of income from the trust holdings.

When that person dies the remaining assets in the trust transfer directly to the named charity. While it may sound simple, it isn’t and this is only just the tip of the iceberg. This is why consulting with a well-qualified attorney like The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois, will ensure the trust is set up according to the required rules of law.

Living trusts are another area that Fortier uses in the estate planning process. “A living trust lets clients be remembered in the way they wish to be recalled,” explained Fortier. A living trust may go to a favorite charity or a much-loved heir.

Simply put, a living trust is a legal method of transferring assets from one entity to another. That means the person who places the funds in the trust is the trustor, the person who manages the trust is the trustee, and the person who lives on the trust is the beneficiary.

If estate planning is in the future, make sure to contact a reputable attorney such as The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier’s gift of the ability to explain complex situations to clients is superb.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Dealing with Chapter 13 Bankruptcy

Bankruptcy is looming on the horizon and Chapter 13 is beginning to look really good, but no one wants to give up the house.

Using Chapter 13 will allow those facing bankruptcy to stop foreclosure and save their homes. In fact, Chapter 13 protects equity in the home, helps balance the mortgage default, and helps get rid of other crushing debts.

Things seem to have come full circle in the mortgage industry, swinging from a once booming economy to a recession. Many people recall mortgage lenders used to offer really low adjustable rate mortgages, no money down mortgages, and 100% to 110% mortgage loans. Gone are those days.

Nowadays adjustable rate mortgages have increased from roughly 5% to over 10% depending on who the lender happens to be. Homeowners are faced with suffocating mortgage payments virtually double what they used to be. As interest rates rise, so do the mortgage payments.

Unfortunately, the real estate market is also very soft right now which means homes have not appreciated any in value, not like they used to. They also don’t give homeowners any leeway to refinance and use their equity. As this situation keeps spiraling out of control, Chapter 13 bankruptcy begins to look very attractive.

“Homeowners may file Chapter 13 that would allow them to catch up with their mortgage payments – interest free,” explained Jay Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier has extensive experience in this area and knows what homeowners are going through when they are faced with rapidly escalating mortgages payments and no extra money to pay them – even if the family works.

Chapter 13 will allow the homeowners to consolidate other financed items (other debts) and in the process, wind up actually saving some money on the interest rates. This break often means the family is able to carry their debt load with dignity and be able, in the long run, to keep up payments.

While Chapter 13 is a viable option in this day and age, the other route consumers may opt for is consolidating credit card debts, medical bills and other loans. In some instances they may wind up only paying back about 10 cents on the dollar. “It’s an attractive option, and one I explain to my clients,” added Fortier.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Bankruptcy Means Being Insolvent

Not a lot of people actually understand what happens to a company when it declares bankruptcy. It isn’t always the end of the world.

Not a day goes by that we don’t read about another company going under and declaring bankruptcy. The statistics are dismal and the numbers keep getting higher as 2009 progresses. Who really knows where it will all end, or if it will?

When a company decides that it needs to declare Chicago bankruptcy, it doesn’t always mean that they have reached a dead end. This is because bankruptcy is considered to be a legal state where a debtor is judged to be insolvent. Once this happens, their property is distributed to creditors and while they may be insolvent, they have a way to still protect themselves. This applies to corporations, as well as individuals.

In the US today there are two kinds of Chicago bankruptcy proceedings they may choose – Chapter 7 and Chapter 11. If a company is choosing to file under Chapter 7, it is deeply in debt and its assets are normally sold to satisfy creditors. For instance, if a person owned a bookstore and the debts were piling up because no one could pay them, all the assets of the store, including fixtures, would be seized and sold to pay bills.

Chapter 11 Chicago bankruptcy is a different kettle of fish, and companies that choose this route are choosing Chapter 11 bankruptcy to restructure their debt. Chapter 11 bankruptcies keep their assets/possessions, subject to court supervision. If a company has the protection of a Chapter 11 bankruptcy, they are usually also able to get loans with favorable terms. In addition, any legal proceedings against the company are put in abeyance until things are resolved in bankruptcy court.

The decision to declare Chicago bankruptcy, no matter what the circumstances, is a difficult one, and it really needs to be discussed in detail with a Chicago bankruptcy lawyer with expertise in this area. Each Chicago bankruptcy case in unique and only a good lawyer will be able to discuss the various options available.

To learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

The Family Law Expert Does Soup to Nuts

Many attorneys are seeing more divorce clients than ever before, whether the divorce is filed in the face of a tough economy is another question. Meet the all-purpose family law expert.

The face of family law in America has begun to change from the “expected” divorce, custody and other family issues most people associate with a family lawyer to a legal practice that deals with adoption, trust funds, estate planning, annulments, prenuptial agreements, spousal abuse or writing a will. “In other words, many family law attorneys are finding themselves answering the call of multiple other disciplines in order to serve their client base well,” explained Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

Family lawyers have even been known to handle real estate legal issues as well. Divorce law, while certainly one area that a family law attorney handles, is no longer the major focus of what drives the firm’s expertise. “In fact, given the tough economic times, when tensions are high and people want out of their marriages, they are dealing with more cases of trial separations,” said Fortier.

Many people locked into a marital situation that seems to be a dead end are opting to try trial separation, which is relatively inexpensive, rather than initiate expensive divorce proceedings.

This isn’t to say that a divorce may not be the ultimate resolution of the separation, but in the meantime, the separation agreement still needs to be drafted. “It would include things such as division of material assets, all financial information, pensions, who will get custody of the children and for how long, child support and spousal maintenance, etc,” explained Fortier.

If the divorce appears to be uncontested, the family law attorney will advise the couple that their divorce, should they choose to proceed now, will likely go quickly. The reason for that would be that the agreements have already been drawn up relating to the major issues of a potential marital split. “If the couple does decide to proceed with an uncontested divorce at a later date, using one family law expert may save money,” added Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

To learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

The Tip of the Iceberg – Medical Bankruptcy

More and more people these days in our great nation are going bankrupt due to medical bills. Chicago bankruptcy is at an all time high.

You might well have a job and even have medical insurance, but found yourself in a situation where you have a severe injury or illness and the bills just got right out of hand. Chicago bankruptcy is not such a far-fetched scenario either. The cost of medical care these days would make anyone think twice about seeking out medical assistance. The reality though is that people have to get medical help when they need it. The nightmare starts when the bills arrive.

Think this talk about Chicago bankruptcy and similar scenarios nationwide might be off the wall and not in the least bit true? Consider this then. Being ill and dealing with high medical bills was directly linked to roughly 62% of all personal bankruptcies in 2007 alone.

Two years later, the numbers have changed, but they certainly have not gone down. In fact, if you do some rough figuring, based on how many current bankruptcies there are now, medical bankruptcies may touch the lives close to 2.3 million Americans or one person every 15 seconds. Chilling thought, isn’t it? Chicago bankruptcy may be just around the corner.

Here is another statistic that will disturb you as well, considering we were mentioning that medical bankruptcies happened to people who had a job and health insurance. Most of the medical bankruptcies were smack dab in the middle class before the bills hit. Many were college graduates and/or had previously owned a home or two.

The scariest figures are the ones showing prior to a serious illness that led to bankruptcy, close to 78% had health insurance, and 60% had private insurance. Many had health coverage at the time they were forced to declare bankruptcy.

It should come as no surprise that if people are forced into choosing Chicago bankruptcy due to medical bills, then they also face a very real risk of losing their home. No home in some cases means homelessness. Not too much of a stretch to get there these days either.

In situations like this, you really need to speak to an experienced Chicago bankruptcy lawyer to get a thorough understanding of what your options are and how to handle your situation.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

When the Creditors Quit Calling

There are pros and cons to declaring personal bankruptcy, so think things through carefully before you make your decision.

There are some plus points you need to know about making the tough decision to declare personal bankruptcy and contact a Chicago bankruptcy lawyer. For instance, it certainly deals with the stress caused by creditors that harass you incessantly for payment. When creditors learn you have declared bankruptcy, they can no longer call you; instead they would be dealing with a third party who will take care of all debts.

The other very attractive result of declaring personal bankruptcy with the assistance of a Chicago bankruptcy lawyer is the fact that you will be paying less once the process is started, as the third party administrator will set the terms of payment. While the creditors might not like the terms of payment, they have to follow them.

Often it’s best if they reconcile themselves with the point of view that it’s better to have some money, than none at all. Once you have discharged your bankruptcy, creditors can’t chase any of your debts that have been written off.

The down side to making this decision is that items like student loans and company loans may be excluded. This is one of the reasons why you need to talk to a highly qualified Chicago bankruptcy lawyer to find out the specifics of declaring personal bankruptcy in your particular situation. If loans are excluded, then you have to pay for them even when your bankruptcy is discharged.

Unless the bankruptcy is Chapter 13, once you declare bankruptcy, you may lose control over your house, other assets, and your business (yes, there are some exclusions, so discuss this with an expert Chicago bankruptcy lawyer). In many instances, a trustee would take over everything, sell it and convert it to cash to pay off creditors. Again, every case is different, and you really need to consult with a skilled bankruptcy lawyer to find out how your case would be handled.

Another problem that sometimes raises its ugly head is that once you’ve been declared bankrupt you may have problems getting a new current account. In addition, all the fees associated with going this route – court fees, insolvency fees and other related expenses – are taken out of your assets.

Sadly, despite the circumstances of your personal bankruptcy, you may find it very difficult to get credit in the future, unless you deal with lenders who specialize in prior-bankrupt credit. It’s a fact of discharged or undischarged bankruptcy life that makes gaps in your credit record, and whether or not they actually are due to a bankruptcy, they are assumed to be bankruptcy.

There are others disadvantages to declaring personal bankruptcy and if you choose the right Chicago bankruptcy lawyer, they will outline all of them so that you are able to make an informed decision. It’s a gut wrenching decision and not one to be taken lightly, that’s why you need a lawyer who won’t pull any punches with you and will tell you like it is.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Bankruptcy & Credit Ratings

There is no question that a bankruptcy does affect your credit rating, and in fact tends to remain on your credit history file for about ten years.

Just because there is a bankruptcy in a person’s credit history does not ultimately mean that they will never be able to buy a home after a lender does a credit check. While a bankruptcy notation does stay in a file for about ten years, it doesn’t mean that some form of credit isn’t available to people in this situation.

“In fact, and this is interesting,” said Chicago bankruptcy lawyer Jay F. Fortier, P.C.,” there are various creditors who deliberately search out people who have been through a bankruptcy simply because they now have a clean financial slate, and that would mean it would be easier to make monthly payments.”

While this may seem a bit perverse, offering more credit to someone who has just gone through bankruptcy because they were unable to handle their debt load in the first place, evidently creditors are having a certain level of success extending them more credit. This may come in handy if that credit happens to apply to purchasing a home. “The interest rates will be higher, due to the bankruptcy on file, but a loan is still likely available through some lenders,” added Fortier.

Even if the interest rates are higher to begin with, if the payments are met consistently over the period of the loan, this will greatly improve the credit rating over time. Any time a person is able to demonstrate that their bankruptcy is in the distant past and there have been no problems paying loans or bills since then, credit ratings are upgraded.

“One of the best ways to restore a credit rating after bankruptcy is to actually buy a house, and then maintain regular payments,” outlined Fortier. So while going bankrupt will create some problems with a person’s credit history, it is entirely possible to restore that history to a healthier one. It’s a matter of personal choices. The choices to make the payments consistently, refrain from irresponsible spending, and keeping current with other financial responsibilities.

While restoring a tarnished financial history is possible, it won’t be accomplished without some glitches along the way. These problems, as well as how to decide if bankruptcy is the right solution, are subjects to discuss with a highly trained bankruptcy lawyer such as Jay F. Fortier, P.C., in Chicago, Illinois.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Adultery Will Do It

If a divorce is in the cards in Illinois, adultery will do as a reason for the end of the marriage. This needs to be proven in order to go to court, and it isn’t always easy to get evidence in flagrante delicto.

The bottom line in any case of someone considering a divorce is that they need to know what they are doing, as each state has its own set of divorce laws. With different divorce laws come different legal requirements. So, before deciding to do the deed, make sure a qualified Illinois divorce lawyer is consulted, such as Jay F. Fortier, P.C., in Chicago.

“While adultery is the most common ground for divorce in Illinois, there are other reasons as well — including abandonment, mental or physical abuse, and irreconcilable differences,” explained Fortier. Out of this shopping list of grounds, the one that is usually the easiest to use is irreconcilable differences. This basically means that the spouses are unable to speak civilly to one another in a peaceful manner or they both want something different.

“In other instances, our office has dealt with substance abuse cases (drugs and alcohol) that are affecting a marriage,” stated Fortier. “In these cases the person filing for divorce must prove the abuse has been happening for at least two years.”

Other grounds that may be used to obtain an Illinois divorce deal are impotence and the transmission of a venereal disease. When dealing with impotence, it must happen at the time of the marriage and continue at the time of the filing for the divorce. “Conviction on a felony charge or other crime may also be grounds for filing a divorce,” added Fortier.

A skilled divorce lawyer such as Jay F. Fortier, P.C., of Chicago, Illinois, will be able to advise their client of all the grounds for divorce and also discuss the alternative of legal separation as well. There is a hard way and an easier way to get a divorce in Illinois, and when faced with a choice, many people wish to opt for the quickest, easiest, and least expensive route possible. In some cases, if they qualify, they can go the no fault route as well.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.