Posted on Mon, Feb 27, 2012 @ 05:58 PM
One of the first things I make a client do in preparation of filing a bankruptcy petition is a monthly budget showing his average household income as well as his average household expenses. The reason I do this is twofold: first, it is very eye opening for the client to sit down, put pen to paper and actually see where his money is going on a monthly basis; and, second, the Bankruptcy Code requires that I prepare a budget.
It is surprising how many more times than not a client will come into the office and not actually know where all of his money is being spent. Very often, reprioritizing line-items in a household budget will free up enough income to allow a client to keep a second vehicle, or even his home, in a bankruptcy case that would otherwise appear unaffordable to the bankruptcy Court and Trustees. Additionally, this “reprioritizing” of monthly expenses often helps a husband and wife team discuss any differences of opinion they may have as to what is truly important and worth saving through bankruptcy.
Second, believe it or not, the Bankruptcy Code actually requires that I put together a household budget for all bankruptcy clients. Essentially, the Code views it as unfair to allow someone to have their debts discharged (forgiven) if there is a good probability that they can afford to pay back some of that debt. So, in the context of a Chapter 7 or a Chapter 13, a client’s budget needs to show that they can only afford to maintain a very standard level of living according to what is reasonably necessary for the health and welfare of the debtor and their dependents or what is necessary for the production of income.
Determining what is reasonable and necessary is where a good bankruptcy attorney comes in. Clients are often times afraid that they make too much money or spend too much money in certain areas of their budget and are discouraged from meeting with a bankruptcy attorney for fear they won’t “qualify” for bankruptcy. If this situation sounds familiar, maybe it is time you called us today.
Posted on Thu, Feb 23, 2012 @ 12:02 AM
Q. When a child is born out of wedlock, which parent has legal custody of the child?
A. In Arkansas, custody of a child born out of wedlock is in the mother; the father has no rights until he files for relief with a Court and is declared the biological father; only then can the father assert his rights as a parent. If you had a child born out of wedlock and child custody has become an issue, consult an Arkansas custody attorney to help you overcome all of the procedural hurdles that stand in front of a father and his rights' to the child.
Q. Can the father assert his rights based on an acknowledgement of paternity or birth certificate identifying him as the father?
A. No. These documents are only useful to the father in Court as presumptive evidence that he is the biological father of the child. The mother would have to overcome the legal presumption if she was contesting paternity.
Q. What must a father do to obtain his rights as a father?
A. First he must petition the Court setting out the facts that show he is the father. If he has an acknowledgement of paternity or birth certificate he can attach those to the petition as exhibits. He must serve the petition upon the child’s mother and set a hearing on the matter. At the hearing, the mother may choose to admit he is the father; if so the father can agree to pay child support and ask for standard visitation. If there is a dispute as to paternity, the Court will order a paternity test to determine if the petitioner is in fact the father.
Q. After a father establishes in Court that he is the father of the child, can he then ask for custody?
A. Yes. If the father believes that the child’s mother has an issue that affects her ability to care for the child or that she is otherwise unable to provide for and care for the child, he can challenge custody. Custody is decided in the best interest of the child, not the wishes of the parties.
Posted on Wed, Feb 15, 2012 @ 10:32 PM
In a previous article, we discussed the “Hanging Paragraph” of Section 506 which provided a wonderful tool for debtor’s attorney whereby they could “cram down” a debtor’s vehicle in a chapter 13 to its current market value, regardless of what is owed, so long as the vehicle was purchased more than 910 days before the filing of the case. Another question that comes up more frequently than you would think is what about the situation whereby a debtor has owned a vehicle for more than 910 days, but has refinanced that vehicle much more recently?
Section 506 applies in situations where the secured claim is based on what is called a “purchase money security interest.” The full legal details of what this entails is beyond the scope of this article, but, essentially, it is understood that a new vehicle purchase is classified as a “PMSI” for Section 506 purposes. So, why is this important? Several court cases have established that a vehicle “refinance” is not a “PMSI” under the strictest of definitions. The reason under the law is fairly straightforward: when you refinance a piece of property you are not putting up any new collateral. Why is this important for a debtor in bankruptcy? If you purchased a vehicle more than 910 days before the filing of your petition, but refinanced said vehicle more recently to lower payments, lower interests, or to remove a former spouse you can still take advantage of the Section 506 “cramdown” to the vehicle’s current value because we trace the purchase of the vehicle back to the date of the creation of the “PMSI.”
Call Bradford Nye, an Arkansas Bankruptcy Attorney, for more information and a FREE consultation.
Posted on Wed, Feb 15, 2012 @ 04:01 AM
Traditionally, given the fact that chapter 13 bankruptcy can last three to six years, the Bankruptcy Code has allowed much flexibility and given the debtor’s attorney ample opportunity to modify confirmed chapter 13 plans to adapt to an individual debtor’s changing circumstances. One of these key flexibilities was the ability to modify the plan to lower the plan payments when a debtor has a corresponding reduction in income. The debtor’s attorney would simply file the modification and file an amended budget showing that the reduction was warranted. This was a wonderfully useful tool to get around any requirement to pay back the unsecured creditors in an “above-the-median” situation. However, a recent Court decision has thrown this technique on its head. This recent decision now says that in one of these modification situations where the debtor has had a reduction in income the debtor’s attorney may only lower the plan payment by the corresponding reduction in the debtor’s income. In other words, the Court has effectively closed a “loophole” that debtor’s attorneys have enjoyed since the passage of BAPCPA.
Let our local Arkansas chapter 13 bankruptcy attorney help today! Fill out our contact form or call now.
Posted on Mon, Feb 13, 2012 @ 11:24 AM
Due to the wide range of legal requirements, both clear and obscure, in today’s financial climate, hiring a business lawyer is more of an imperative now than at any other time in the past. In fact, it is an instrumental facet of managing a company; because as any successful business owner knows, you can't effectively run the manufacturing, production, or service your business provides if you’re also tasked with ensuring the proper legal documents are drafted and filed. A business lawyer, among other things, makes sure the all-important peripherals of your business are being taken care of, from tax requirements, to obtaining the proper licenses and permits. For example; something as simple as not being aware of zoning laws, which vary widely from state to state (in fact, they can change locally too; the zoning laws in Little Rock, AR might differ from those in the North Little Rock metropolitan area).
With all of these considerations, investing the money to retain a business lawyer should always have a high ROI (return on investment). Allocating disparate resources to keep track of all the things required of a business by federal, state and local laws would easily cost more, as well as be less effective and under the protection of the law. The only concern of any successful business should be turning out quality products, maintaining their top-notch personnel, and customer service; the legal aspect is an entirely different field that should act in an entirely supportive role.
Your Arkansas business lawyer can even aid you with the legal details in the selection of employees; such as the constitution of liabilities and severance packages, the composition of work agreements, and present regulations governing the particulars of everyday work-life. ID stats for the filing of income tax should be drafted by a lawyer for purposes of accuracy and comprehensiveness. Laying down the legal foundation before you structure your company will save you headache and money in the long run, make your company more profitable, and ensure that you are never experience problems with the IRS. Ultimately, the possibility of avoiding these things means that a business lawyer pays for him or herself many-fold over the lifetime of your company’s operation.
Posted on Mon, Feb 13, 2012 @ 11:24 AM
Automobile accidents are a fact of daily life. With so many vehicles on the road, crashes inevitably occur. When the worst does happen, the resulting loss of time, property and potential medical costs can be considerable. Due to these factors, if another driver's actions caused the crash they should be made to pay. The legal processes involved in litigating cases of automobile accidents are complicated and should not be attempted without professional guidance.
Clear up the Confusion
One of the main reasons that hiring a personal injury lawyer is important after a car accident is the help they can provide in clearing up what actually happened. Through research and interviews, a lawyer can determine all aspects of the accident and where the blame may likely rest. Also, from this compilation of facts the lawyer can assess the best course of action to fight for compensation.
Negotiating with Big Insurance Companies
Even the smartest of people will be left floundering if they try to take on an insurance company alone. The lawyers employed by insurance companies know their business and have experience fighting claims, so the only option is to fight fire with fire. Many personal injury lawyers have just as much experience and know the same rules and regulations as the insurance companies representatives, which levels the playing field.
Maximizing Your Settlement
The average accident victim usually will not know all the possible claims they can make to help them fully recover from the incident. Costs and repercussions from a car accident can be greater and more complex than most people would imagine, and getting everything you are due is important. A personal injury lawyer knows all the routes for making claims and can achieve higher compensation for his client.
Guiding you to a Win
Hiring a personal injury lawyer helps greatly when and if a case actually goes to court. Facing the fight alone can lead to mistakes being made and wrong things being said, which could ultimately hurt the compensation claim. A lawyer can keep their client focused and guide them through the process, helping to make sure they present themselves well and clearly. Being prepared for an attack to come from the insurance lawyers is important because they are always looking to trip up claimants.
Posted on Mon, Feb 13, 2012 @ 11:24 AM
Due to the wide range of legal requirements, both clear and obscure, in today’s financial climate, hiring a business lawyer is more of an imperative now than at any other time in the past. In fact, it is an instrumental facet of managing a company; because as any successful business owner knows, you can't effectively run the manufacturing, production, or service your business provides if you’re also tasked with ensuring the proper legal documents are drafted and filed. A business lawyer, among other things, makes sure the all-important peripherals of your business are being taken care of, from tax requirements, to obtaining the proper licenses and permits. For example; something as simple as not being aware of zoning laws, which vary widely from state to state (in fact, they can change locally too; the zoning laws in Little Rock, AR might differ from those in the North Little Rock metropolitan area).
With all of these considerations, investing the money to retain a business lawyer should always have a high ROI (return on investment). Allocating disparate resources to keep track of all the things required of a business by federal, state and local laws would easily cost more, as well as be less effective and under the protection of the law. The only concern of any successful business should be turning out quality products, maintaining their top-notch personnel, and customer service; the legal aspect is an entirely different field that should act in an entirely supportive role.
Your Arkansas business lawyer can even aid you with the legal details in the selection of employees; such as the constitution of liabilities and severance packages, the composition of work agreements, and present regulations governing the particulars of everyday work-life. ID stats for the filing of income tax should be drafted by a lawyer for purposes of accuracy and comprehensiveness. Laying down the legal foundation before you structure your company will save you headache and money in the long run, make your company more profitable, and ensure that you are never experience problems with the IRS. Ultimately, the possibility of avoiding these things means that a business lawyer pays for him or herself many-fold over the lifetime of your company’s operation.
Posted on Mon, Feb 13, 2012 @ 11:24 AM
Automobile accidents are a fact of daily life. With so many vehicles on the road, crashes inevitably occur. When the worst does happen, the resulting loss of time, property and potential medical costs can be considerable. Due to these factors, if another driver's actions caused the crash they should be made to pay. The legal processes involved in litigating cases of automobile accidents are complicated and should not be attempted without professional guidance.
Clear up the Confusion
One of the main reasons that hiring a personal injury lawyer is important after a car accident is the help they can provide in clearing up what actually happened. Through research and interviews, a lawyer can determine all aspects of the accident and where the blame may likely rest. Also, from this compilation of facts the lawyer can assess the best course of action to fight for compensation.
Negotiating with Big Insurance Companies
Even the smartest of people will be left floundering if they try to take on an insurance company alone. The lawyers employed by insurance companies know their business and have experience fighting claims, so the only option is to fight fire with fire. Many personal injury lawyers have just as much experience and know the same rules and regulations as the insurance companies representatives, which levels the playing field.
Maximizing Your Settlement
The average accident victim usually will not know all the possible claims they can make to help them fully recover from the incident. Costs and repercussions from a car accident can be greater and more complex than most people would imagine, and getting everything you are due is important. A personal injury lawyer knows all the routes for making claims and can achieve higher compensation for his client.
Guiding you to a Win
Hiring a personal injury lawyer helps greatly when and if a case actually goes to court. Facing the fight alone can lead to mistakes being made and wrong things being said, which could ultimately hurt the compensation claim. A lawyer can keep their client focused and guide them through the process, helping to make sure they present themselves well and clearly. Being prepared for an attack to come from the insurance lawyers is important because they are always looking to trip up claimants.
Posted on Thu, Feb 09, 2012 @ 04:01 PM
Arkansas, in plain terms, is a “landlord friendly” state. As it turns out, Arkansas has a long standing tradition of adhering to the common law doctrine of "caveat lessee" (let the tenant beware).
When you rent a house or apartment, you usually agree to take it "as is". This means that the landlord does not have to provide additional maintenance to the dwelling. Typically, landlords only have to make sure that the dwelling complies with city building codes.
The best way to understand the obligations between the landlord and the tenant is to enter into a written lease. A lease is a contract and is binding on both parties. In Arkansas, a landlord has no obligation to renew a lease, and in certain situations may terminate the lease and evict the tenant. Failure to pay rent or to pay rent on time, for any reason, is grounds for eviction.
There are two types of eviction procedures a landlord can use to get you to move: "unlawful detainer" (a civil eviction) and "failure to vacate" (a criminal eviction).
If a landlord uses the "unlawful detainer" method of eviction, he must give the tenant three (3) days written notice to vacate. If the tenant doesn’t vacate the premises, the landlord has grounds to file a lawsuit against the tenant. After the tenant receives a summons and notice of unlawful detainer, he has five (5) days excluding weekends and holidays to object in writing to the eviction. If the tenant does not file an objection, he can be removed from the dwelling by the Sheriff. If the tenant does object, a hearing will be scheduled to determine whether the tenant has any right to possession of the property. This method may seem more expensive because the landlord will incur legal fees and costs, however the process achieves its goal much quicker than the “failure to vacate” thereby actually saving the landlord money. A good Arkansas attorney can sometimes get a tenant ejected within weeks!
If a landlord uses the "failure to vacate" method of eviction, he must give the tenant ten (10) days written notice. This method of eviction applies only to non-payment of rent. If the tenant does not leave the premises within ten (10) days, he can be charged with a misdemeanor. The tenant would then be required to appear in court where he could be fined up to $25.00 for each day the tenant remained in the dwelling after being served with the ten (10) day notice to vacate. This method is typically not preferred by landlords, because the process can take several months during which the landlord continues to lose rental income. The other huge problem with this method is that the criminal penalty for not vacating is a fine NOT eviction.
A landlord is not permitted to exercise “self-help” methods to evict a tenant. The landlord may not change the locks on the tenant’s doors, move the tenant’s furniture out, turn off the tenant’s utilities or use any other form of harassment to persuade the tenant to move out.
Additionally, Arkansas landlord/tenant law states that upon the voluntary or involuntary termination of any lease agreement, all property left in the dwelling by the tenant will be considered abandoned, and may be disposed of by the landlord as the landlord sees fit and without recourse by the tenant. All property left on the premises by the tenant is subjected to a lien in favor of the landlord for the payment of all sums agreed to be paid by the tenant.
Posted on Wed, Feb 08, 2012 @ 09:32 AM
Although we are a consumer law firm, we have dedicated lawyers who can assist you with almost every legal situation you may face. Please check back with our website often to review the latest articles and blog posts.