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Bankruptcy Lawyer Advice: 5 Tips to Manage Holiday Spending

Bankruptcy

Manage holiday spending

You don’t have to be searching for a bankruptcy lawyer to want to control your holiday spending. It’s amazing that no matter how carefully you plan, your holiday budget can spin out of control. So, what can you do to manage holiday spending?

Tip 1: Budget in Advance and Set Aside Money Each Month

If you’re reading this in December, it’s too late for this year. So let’s get started next year! Make a list of everyone you are buying for this holiday. What you bought and how much you spent.

And I mean every gift. Even small gifts for teachers, those gifts of wine, cake or flowers you give during holiday visits. Extra tips you give out to your hairstylist or barber. Add the money you spend on holiday entertaining, or even buying a dress for the holiday party. These little bits add up and burn a hole in your wallet faster than you imagine.

Now take a close look at the list. Was it reasonable, or did you overspend? If you overspent, by how much? Make a reasonable budget for next holiday season, divide by 12, and start putting money aside in a holiday giving fund.

Tip 2: Be Realistic with Your Giving, and Communicate your Intention

Not everyone wants or needs gifts. Sure, we feel great giving a gift, but too often gift giving comes with a feeling of obligation on the part of the receiver. They get you a gift in anticipation of you giving them a gift. And vice-versa. It becomes a never-ending cycle.

How many gifts end up in the back of the closet? How many do you re-give? Young families might not have enough money to give a lot of gifts. Older parents may not have much they need.

With all this in mind, take a look your list and consider two factors:

  1. Do you really need to buy this person a gift? If the answer is no, strike them off your list.
  2. Would you be worried that they may feel they need to return the favor and may not have the money? If the answer is yes, put a question mark beside them.

Let these people know you are planning on cutting down on spending. You’ll be surprised at how many will understand – and support you.

If you are going through a bankruptcy, and you don’t want it known, you don’t have to tell people you are working with a bankruptcy lawyer. Many people simply want to make the holidays less commercial, and will assume you feel the same.

Tip 3: Stick to Your Decisions

Now comes the hard part. Sticking to it. If you have communicated in advance, and someone still buys you a present, accept it graciously. And don’t feel like you have to return the favor.

This is very difficult, but it’s necessary. If you are already working with a bankruptcy lawyer, or even if money is tight, you need to be strong and stick to your plan. Especially if you need to rebuild your credit.

Buying a gift without expecting one in return is everyone’s right. Expecting a gift in return is not. If you communicated your intention to not buy gifts before the holidays, you have done your part.

Tip 4: Use Only Cash or a Pre-loaded Credit Card

Control your spending by using cash, or a pre-loaded credit card. When the money is gone, it’s gone. Again, this one is hard, but any change can be challenging. If you want to succeed, you need to be honest with yourself and stick to your plans.

Tip 5: Give the Gift of Time

Baking, volunteering, crafts and DIY gifts – all these are great alternatives to store-bought gifts. Even better, the time you spend on them will keep you out of the stores, and away from impulse purchases.

Providing a loved one with something you have put your passion into can make that gift even more special and memorable.

In the end, isn’t that what the holidays are all about?

Stephanie Krane-Boehmer is a bankruptcy lawyer and divorce lawyer located in Rochester Hills, Michigan. If you are considering credit counseling, debt settlement or filing for bankruptcy, Stephanie can help you get back on the road to financial health.

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Bankruptcy and Death – What happens to an Inheritance

Bankruptcy, Separation and Divorce

Bankruptcy and death

Bankruptcy and death – two things most of us would rather not think about. Similar to our blog on Bankruptcy and Divorce. It’s not pretty, but it does happen. So, here’s what you need to know.

An estate planning lawyer can help with many things, like preparing your will, helping you make sure you communicate your end-of-life decisions. Most importantly, an estate planning lawyer can help make sure your assets transfer to the person(s) you wish to receive those items after your death.

But what happens if a death also involves bankruptcy?

Situation: You have declared bankruptcy, then get an inheritance

An inheritance after you’ve declared bankruptcy can seem to be a saving grace. But as with bankruptcy and divorce, timing is everything.

When you file for bankruptcy, a bankruptcy estate is created with a trustee to administer your assets. The inheritance can be added to those assets if you are in bankruptcy when your friend or relative passes away.

  • Under Chapter 7 bankruptcy, any cash you inherit is added to your total assets to help pay down debt. Property like cars or houses, unless exempt, will be liquidated and added to your estate.

However, any inheritance received more than 180 days after filing will remain your property. Note that the court uses the date of death as the inheritance date, not the date the inheritance is received.

  • Under Chapter 13 bankruptcy, the timing of the inheritance may not matter as much. The judge can choose to add your inheritance into your total income, increasing the amounts of your repayments.

Situation: You receive an inheritance from someone who has declared bankruptcy

When a person dies, they can pass their possessions along, but not necessarily their debt. But the inheritance may not end up coming to you if it is required to pay down the deceased’s debt.

  • Under Chapter 7 bankruptcy, the deceased’s assets are already under the care of the trustee. Debts will be paid off until the bankruptcy is discharged. Any non-empty remaining property is then passed to the heirs.

An Estate Planning Lawyer or Michigan Bankruptcy Attorney Can Help

If you are in one of the situations described above, an estate planning lawyer or bankruptcy attorney can help you navigate the courts and your options.

We can work with you to discharge your debt or help ensure you receive the inheritance you deserve.

You can also consult with an estate planning lawyer to set up a living trust for your property. In some cases, property in a trust will not be considered part of the bankruptcy estate. Property isn’t just a home or car. It can include family heirlooms and even cash.

Although a trust sounds like something only a very wealthy person might consider, almost anyone can set up a trust to save their heirs from dealing with probate or the additional challenges of bankruptcy after death.

Need help? Contact Michigan Bankruptcy Attorney Stephanie Krane-Boehmer

Stephanie Krane-Boehmer is an expert Michigan bankruptcy attorney and estate planning, lawyer. Stephanie is happy to help you with all your estate planning questions. Although dealing with legal matters can be intimidating, she will put you at ease with her experience, expertise and down-to-earth approach.

We are located in Rochester Hills and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties. We are here to support you through all aspects of your legal proceedings.

Keep in touch with Stephanie Krane-Boehmer on Facebook.

Approaching a Divorce: Parenting Plan Examples

Bankruptcy, Separation and Divorce

Parenting planning examples

If you are parents who are not living together, are seeking separation, or going through a divorce, you may be looking for parenting plan examples.

A parenting plan outlines how parents who do not live together will make important decisions regarding the care of their children.

An Emotional Process

Dealing with custody issues can be emotionally draining, and parents want to protect their children during negotiations as much as possible. Your Michigan divorce attorney or family law attorney can provide advice on how to discuss the divorce with your children, and how to create a parenting plan that focuses on your children’s needs.

While custody seems to be simply a matter of where your children will live, there are many other factors that need to be agreed upon.

Although agreeing on a parenting plan arrangement might not come as easily as you would hope, the Law Office of Stephanie Krane-Boehmer can help you understand the child custody process and make it go a little more smoothly.

Parenting Plan Examples Online

A search for “parenting plan examples” can bring up many valuable results to help guide your decisions; however, a decision should never be made without an attorney. Make sure the results are relevant to the laws in your area and look carefully at the source. Good parenting plan examples should cover:

    • Communication
      What is the critical information you will need to communicate, how often and how (e.g., by email or face-to-face only). How do you communicate in an emergency? Are children allowed to communicate with you when they are with the other parent? Is a communication schedule needed?
    • Parenting time
      Where will the children live? If you’re splitting time, how will it work, and what are the transportation arrangements?  What about daycare / after school care and babysitting – are there any concerns, and who is responsible for the costs?
    • Extra-curricular activities
      How will you manage the child’s social life (e.g., sports, school outings, summer camp, friends’ birthdays) – who is responsible for managing the activities and arranging payments?
    • Visits with extended family
      Does your plan need to address visits with uncles/aunts/grandparents?
    • Vacations & Holidays
      How will you arrange holiday time, especially traditional family holidays like Thanksgiving?
    • Notifications for Travel / Moving
      Good parenting plan examples should include guidance on stipulations around travel, especially travel outside the country, or moving anywhere that will make it difficult for the other parent to visit.
    • Education
      How will you make arrangements around choices of schools to attend? Who will receive school reports and notifications? Who attends school teacher conferences, who is informed of any issues at school, and who is allowed to take the child out of school?
    • Medical
      Look for parenting plan examples that also detail medical needs, like who will be responsible for medical decisions/insurance and who will be responsible to make emergency medical decisions.

Completing your Parenting Plan

While you may find good parenting plan examples online to help guide your decisions, it is recommended to either have a qualified family law attorney or mediator review your plan, or draft your final plan before submitting it to the court.

Family law attorneys have a lot of experience working on parenting plans and will be able to think of things you may not have found in the parenting plan examples you used.

Once your parenting plan is complete, it can be presented to your case manager, custody manager, or judge. If both parents agree on the plan, the judge can be asked to make it a court order as part of the settlement to ensure the parenting plan is legally enforceable.

Parenting Plan: The Best Interests of the Child

The Michigan Family Court system makes final custody decisions based on the best interests of the child.

A good parenting plan – especially one agreed on by both parents – can help the judge make determinations on what is best to take care of the child’s emotional, medical and educational needs.

Looking for a divorce attorney in Rochester Hills?

If you’re looking to create a parenting plan, you need a divorce attorney that you can trust and feel comfortable with. Contact the law office of Stephanie Krane-Boehmer in Rochester Hills Michigan for help with navigating divorce matters. Stephanie will support you through mediation, litigation, parenting arrangements, child support, and division of property.

We are located in Rochester Hills and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties.

Keep in touch with Stephanie Krane-Boehmer on Facebook.

Take Control – Credit Counseling & Bankruptcy

Bankruptcy

Credit counseling

Debt can be overwhelming. Especially in these times of uncertainty. There are many reasons you may be experiencing financial issues. Illness and health care expenses, job loss, divorce, or accidents. No matter the reason your debt has increased, you’re likely feeling stressed, and a credit counseling agency may help.

The good news? You CAN take control.

Take Control – Talk to an Expert

Your first step is to talk to an expert who understands your situation. That could be someone from an approved credit counseling agency in your area, or a qualified bankruptcy lawyer. They can provide lots of information to help you understand your options.

While ultimately you may need to file for bankruptcy, you might be able to manage your financial challenges with a debt management plan. You could consolidate your debts into a lower interest loan to help manage your payments. Or you may want to look into a debt settlement plan, and work with a settlement service company who will negotiate lower payments to the individuals or businesses to whom you owe money.

Facing debt can be difficult…especially when you don’t know where to turn. When you find qualified help, you’ll find your situation easier to face.

And you’ll find you’re not alone.

Credit Counseling is Required for Bankruptcy

One thing you may not know is that you are required to complete a credit counseling course before you can file for bankruptcy.

If you file for bankruptcy and you haven’t completed the required credit counseling, your case will be dismissed, and you will need to re-file (and pay another filing fee).

The good news is that credit counseling only takes at most a half hour of your time, and it can be done over the phone or online. You’ll be asked questions about your finances and your debt situation to help the counselors better understand your circumstances.

There are many qualified non-profit organizations that offer great credit counseling services to meet the unique needs of each individual seeking their help. Many even offer free workshops and education materials. A reputable counselor will work with you to review your financial situation and assist you to build an action plan to manage your debt and budget.

You should be aware, though, that “non-profit” doesn’t mean free. You will typically be charged a fee for credit counseling services, and the fee varies by provider.

When do you need to complete a credit counseling course?

Credit counseling must be completed within 6 months (180 days) before you file for bankruptcy. When you finish your course, you will receive a certificate of counseling. The certificate must be filed within 14 days of your petition for bankruptcy.

Steer Clear of Scams

It’s easy to find credit counseling agencies and credit counseling courses on the internet. The challenge is to find one that you can trust. Credit counseling scams are widespread, so you should be cautious about providing any personal or financial information if you are nervous or unsure of the company.

The Federal Trade Commission (FTC) website offers great advice to help you if you are looking for reliable credit counseling:

A reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If a firm doesn’t do that, consider it a red flag and go elsewhere for help.

Be sure to check out the FTC website for more tips on choosing a credit counseling agency you can trust.

When a Qualified Bankruptcy Attorney Can Help

Bankruptcy is designed to provide financial relief to honest people who need a fresh start. If you decide to file for bankruptcy, you’re going to want to have an experienced, helpful attorney to ensure you come out of the process with the best possible outcome for your new beginning.

There are many reasons to consult a lawyer about your debt situation before you file for bankruptcy.

If you’re worried about getting sued by creditors, if your house has been foreclosed but you still have a balance due on the property or if you are being harassed by calls from creditors or bill collectors, your attorney can help take the pressure off, and start to guide you through the process of credit counseling and beyond.

Contact the Law Office of Stephanie Krane-Boehmer for all your bankruptcy matters. We are located in Rochester Hills, and serve Oakland, Macomb, Genesee, Lapeer, Waye, and Livingston Counties. We are here to support you through all aspects of your bankruptcy filings, mediation, litigation, parenting arrangements and division of property.

Although dealing with legal matters can be intimidating, we will put you at ease with our experience, expertise and down-to-earth approach. We are a debt relief agency. We help people file for bankruptcy under the bankruptcy code. Our mission is to achieve the best results for you as you work through the many challenges of your debt situation.

Keep in touch with Stephanie Krane-Boehmer on Facebook

Bankruptcy and Divorce – How Do You Manage Two Challenges at Once?

Bankruptcy, Separation and Divorce

Bankruptcy and divorce

Going through bankruptcy and divorce can be a complicated and emotional process. It’s not easy for anyone. Unfortunately, on top of the emotional considerations of ending a marriage, and the financial factors of dividing assets, at times a divorce can also land one or both spouses in the position of needing to file for bankruptcy.

In addition to having significant impacts on the outcome of a divorce, adding bankruptcy in Michigan on top of divorce adds complications and stress. Look for help where you can, and be sure to choose a lawyer with a solid understanding of both aspects of your case.

Different proceedings, different courts…what is the best way to handle your bankruptcy and divorce?

While divorce proceedings in Michigan are handled in the state court system, bankruptcy is always filed in the Federal United States Bankruptcy Court. Two different courts in two different systems. Two different systems that don’t always communicate easily with each other.

A key part of your lawyer’s work will be to ensure the right documents are filed in the right courts at the right time. And while that may seem simple, there are many factors to consider.

Timing of your bankruptcy and divorce is one important factor. Do you file before, during or after your divorce?

In short, it depends on your situation, and your lawyer can be a valuable resource to help you decide what is best for you.

When is the best time to file for bankruptcy when divorcing?

Filing for bankruptcy before your divorce can make the divorce proceedings go smoother. If it’s beneficial to both spouses, you can file for a joint bankruptcy and share the associated fees and costs to save yourselves time and money. There are also exemptions that you can use to your advantage when you file jointly.

Filing for bankruptcy during your divorce proceedings can complicate your divorce. Why? Because a filing in a federal court takes priority over a divorce in the state courts. As a result, filing for bankruptcy during a divorce triggers an “automatic stay” (or halt) to the divorce proceedings until the bankruptcy is settled. Your assets will be tied up as property can’t be transferred until the bankruptcy is settled.

Filing after a divorce can also have advantages as long as your Judgment of Divorce contains language that contemplates the filing of a bankruptcy.

What about Alimony, Support Payments and Debts?

Despite the difficulty of handling both legal issues at one time, life goes on. The court system has made allowances for some important aspects of divorce during process.

  • Alimony & Support Payments – child support and alimony payments are considered priority debts, and cannot be discharged during a Chapter 7 bankruptcy. While some may want to use that to avoid these payments, a qualified Michigan family law attorney who also specializes in bankruptcy law will be aware of the rules, and take steps to stop these types of motions in their tracks.
  • Joint Debt – a key part of a divorce is to divide assets…and debt. This means the type and amount of debt that is discharged through your bankruptcy proceedings will depend on the state of your divorce proceedings and the type of bankruptcy you choose.
  • Assets and Property – the automatic stay when you file for bankruptcy freezes your assets and property. This means you won’t be able to touch your assets until your process is complete. For this reason, many choose a Chapter 7 (if eligible) so they can pay off debts and complete their divorce more quickly.

Sounds a little confusing? It can be. That’s why a qualified attorney familiar with both bankruptcy and divorce proceedings can be a huge support as you navigate the many decisions to be made when you are facing both bankruptcy and divorce.

Need some help? Contact the Law Office of Stephanie Krane-Boehmer for your separation, bankruptcy and divorce matters. We are located in Rochester Hills, and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties. We are here to support you through all aspects of your filings, mediation, litigation, parenting arrangements and division of property.

Although dealing with legal matters can be intimidating, we will put you at ease with our experience, expertise and down-to-earth approach.  Our mission is to achieve the best results for you as you work through the many challenges of bankruptcy and divorce.

Keep in touch with Stephanie Krane-Boehmer on Facebook

Understanding Wage Garnishments and How Bankruptcy Can Help

Bankruptcy, Estate Planning, Family Law

Wage garnishments

Due to the financial implications of Covid-19, the state of Michigan had paused collections including wage garnishments. However, this is no longer the case, and creditors have resumed garnishing wages.

Read on to learn about wage garnishments and how filing for bankruptcy can prevent them from happening.

What is a Wage Garnishment?

Wage garnishment is when your employer receives notice from the court to withhold a portion of your paycheck to pay outstanding debt. This process doesn’t happen immediately, however, as there are several steps a creditor must take. First, a collector is required to file a collection lawsuit in court. If they win, they will receive a money judgement. This judgement includes a written piece of paper issued by the court that authorizes that the creditor can collect a specific amount of outstanding funds owed.

Do All Creditors Need to File a Collection Lawsuit?

Not all creditors need to undergo this process and receive court judgement. For example, some specific creditors like the Internal Revenue Service do not require a court order to proceed with wage garnishment. In addition, the following types of outstanding payments do not require a lawsuit to proceed with wage garnishment:

  • Outstanding income tax
  • Child support ordered by the court
  • Student loan payments

Understanding the Process of Wage Garnishment

If a debt collector has been calling your home and work and you’ve failed to pay your outstanding debt, they may proceed to attempt to garnish your wages. This event is often the result if no effort has been made to pay back any portion of the debt. The creditor, however, is only eligible to receive a percentage of your paycheck according to Federal law applicable in Michigan. For example, creditors can garnish 25% of your earnings (after taxes) or your overall earnings that are 30 times greater than the federal minimum wage. It is important to note that the percentage that creditors can garnish differs according to the debt.

Prevent Wage Garnishment

There are a few ways to avoid wage garnishment! You work hard for your money, and it makes sense to want to protect it. If you pay off the debt within 21 days of receiving the judgement, the creditor will not be able to proceed with wage garnishment. You can also try to contact your creditor directly to negotiate a payment plan.

Filing For Bankruptcy

Another option to prevent wage garnishment is to file for bankruptcy. Bankruptcy provides honest people with a second chance and the opportunity to regain their financial freedom. Filing for bankruptcy will prevent all wage garnishments if a creditor has a money judgement. In addition, bankruptcy can help eliminate other debts as well. When you initially file for bankruptcy, a court order called an “automatic stay” begins. This act limits creditors from garnishment and ends those countless phone calls. Ultimately, the automatic stay stops any foreclosures, evictions and creditors. In addition, this action begins as soon as you file for Chapter 7 or Chapter 13 bankruptcy. However, if you’ve filed for Chapter 7, child support debt does not apply to the automatic stay. In other words, if you file for Chapter 7, you will still be responsible for the payment of your child support debt.

To learn more about how bankruptcy can help with a wage garnishment, contact the law office of Stephanie Krane-Boehmer today.

Keep in touch with Stephanie Krane-Boehmer on Facebook

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