Bankruptcy Archives

The Ins and Outs of Estate Planning

Estate planning isn’t exclusively for the wealthy. The sooner you start planning for reallocation of your assets, the better. Estate planning ensures that your chosen assets get delegated to the proper people. Otherwise, if you were to pass away, your hard-earned assets, distribution of your property and money are determined by state laws. If you are living yet unable to manage your affairs, estate planning can also provide reassurance that your financial matters are taken care of according to your terms. Creating an estate plan is a step you can take towards controlling your financial affairs if something unexpected happens to you.

Life events can be unpredictable. While we don’t have complete control over events that happen, we can control who inherits our assets and prized possessions through a completed estate plan. Consider talking to an estate planning attorney who can discuss your best options.

Do I Need a Will?

A Last Will and Testament is a document intended to outline the chosen people who will inherit your assets after you pass away. If you have an estate plan, the choice of your heirs is entirely up to you! You have complete control over where your lifelong assets go. In addition, this document can also state who will take care of your children if they’re under 18-years-old. You can rest assured knowing that your children will be taken care of by your chosen guardian if you pass away.

Without this document, any decisions regarding your assets including property, bank accounts, tangible personal items and more, will be made by the state of law. A Last Will and Testament only become actionable after you die.

A Living Will takes into effect if you become incapacitated. This document outlines the type of medical care you wish to receive. It only becomes valid when a doctor determines that you are unable to make these decisions for yourself.

Importance of a Having a Durable Power of Attorney

Choosing a durable power of attorney is an aspect of an estate plan that takes effect today while you’re living. Regardless of age, power of attorney documents is an essential piece of an estate plan. Appointing a durable power of attorney will ensure that your healthcare decisions and finances become handled by your chosen people if you are living yet unable to manage them yourself. If you are alive and become unable to make your own decisions, your chosen durable power of attorney can make those decisions for you.

Understanding the Types of Durable Power of Attorneys

There are two main types of durable power of attorneys. A durable health care power of attorney can make health-based decisions for you. You can appoint more than one person to act as your health care power of attorney. For example, if you have three children over the age of 18, all three can be eligible as your chosen health care power of attorney. This document is the only way to appoint a person(s) who will make health care decisions on your behalf.

A durable power of attorney for financial services is a document outlining the designated person(s) to handle your financial affairs. If you undergo an accident or diagnosis that leaves you incapable of making sound decisions about your finances, this power of attorney will take care of everything for you. You can rest assured knowing your bills, mortgage, and general finances will be taken care of by the person(s) you elect.

Choosing your power of attorney is an integral part of any estate plan. You might be wondering: how do I identify the right people? We recommend choosing someone responsible, trustworthy and who has your best interest in mind.

Contact Stephanie Krane-Boehmer, an experienced estate planning lawyer who will work with you to create a customized estate plan.

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Benefits of Completing an Estate Plan Sooner Rather Than Later

Bankruptcy, Estate Planning, Family Law

An estate plan ensures that if you pass away or become disabled, your assets are inherited by the person(s) that you’ve chosen. Your estate plan can also outline chosen guardians to take care of your children (if they are under the age of 18) in the event of a parent’s death or disability.

Without an estate plan, state laws determine who will manage your assets. This means that family members could incur the fees associated with probate court fees, attorney fees and taxes after death in an attempt to maintain your assets.

As a wills and estates lawyer in Rochester Hills, serving Utica, Troy and surrounding areas, I advise designating heirs to your assets through an estate plan, so that this can all be avoided.

Do I Need an Estate Plan?

Many people don’t realize that once you acquire assets such as a house, bank accounts, investments, vehicles etc. you should have an estate plan. If the past year has taught us anything, it’s that life is unpredictable. Having an estate plan will ensure that your assets are left to your loved ones according to your own wishes in the event of your death or disability.

We prioritize planning for events that are important to us such as a vacation or buying a new house. Planning for life if something happens to you should be equally as important. Planning who will inherit your assets after you’re gone allows you to make arrangements for the future wellbeing of your family. Think of estate planning as a way to ensure that you’re able to take care of your family beyond the years that you’re with them.

Remember, estate plans aren’t just limited to very wealthy people. The most important aspect of estate planning is the reassurance that your assets will be properly managed by the heirs you choose rather than being decided in court.

Still wondering if you need an estate plan? Take a look at some questions you can ask yourself to determine whether or not a plan is right for you. The biggest question being: “Do you want to have a say where your possessions go after you pass away?”

Having a Plan Provides Reassurance

Since it can be an unexpected event, it’s normal to not feel the need to plan or prepare for who receives your assets and personal items if something happens to you. However, your assets are a reflection of your hard work and accomplishments and deciding who receives them when you can no longer enjoy them is not a process that should be intimidating. Rather, it’s a process that will provide you and your loved ones with reassurance and relief in the event that an estate plan needs to be revealed.

The Benefits of Delegating Your Assets

If you’re fortunate enough to live a long life, your assets are often tangible items you can designate to loved ones as ways for them to remember you. Perhaps you had a special watch that your great-grandfather gave to you. Even items like these can be designated to your chosen heir in the event of your passing or disability. Putting some thought into who should receive what might seem like a daunting task. However, the effort that you put into creating a plan is going to eliminate the reality of loved ones having to pay hundreds of dollars trying to gain possession of your assets in court.

Ultimately, assets that are passed over to your heirs act as reminders of your hard work and reflect both your love and commitment to your family.

Where Do I Start with an Estate Plan?

If you’re ready to begin completing your estate plan, you’ll need to find an attorney that prepares Wills and Trusts to start the process. Stephanie Krane-Boehmer is an attorney in Rochester Hills, Michigan. You can book a free consultation to identify which estate plan makes sense for you!

Choosing the Right Family Law Attorney

Bankruptcy, Estate Planning, Family Law

Since there are many aspects of family law, researching to find an experienced attorney can help you with the process. For instance, dealing with family law matters such as a divorce can be a life-changing experience. However, choosing the right attorney to support you through all aspects of your divorce can help with the process. The right lawyer can support you through mediation, litigation, parenting arrangements, child support, and division of property.

Once you’ve identified the family law topics you’re seeking guidance on, you can begin your research. Consider the following tips when choosing a family law attorney.

Inquire if Friends And Family Can Refer an Attorney

You’ll want to determine that the lawyer you choose can help with your specific legal concerns. A great way to gather information about a potential attorney is through a referral that you can trust. For example, gather insight into friends and family’s knowledge of lawyers that they’ve worked with previously or are current clients. If you can typically trust the referrals of your friends, this is an efficient way to discover a possible attorney. However, keep in mind that a recommended lawyer might not practice the law suited to your legal needs. Be sure to do additional research outside of a friend’s referral to ensure that the lawyer is an expert in your required fields.

Review Online Testimonials

While researching a potential family law attorney, read the testimonials that their website offers. These are honest interactions shared by the attorney’s current or past clients. If you’re searching for a family lawyer and read a testimonial discussing how smooth it was to work with the attorney, you’ll likely inquire to learn more. Positive testimonials are shared by choice, based on the experience clients had with the attorney. These testimonials can outline the attorney’s character traits and the process of working with them. Consider these factors when you’re entrusting your legal needs to your chosen family law attorney.

Research Their Experience And Expertise

Now that you’ve asked for referrals and reviewed testimonials on the web, allocate some time for looking into the attorney’s experience and expertise. For example, ask yourself: is it necessary that your attorney has years of experience dealing with your family law matter? If so, you’ll want to research the number of years that the potential attorney has been practicing law. Are you seeking guidance on a few topics including, divorce, child custody and child support? Be sure to identify that the lawyer you choose is an expert in those particular fields to meet your legal needs.

Book an Appointment

Once you’ve decided to reach out to an attorney, many offer flexible booking options such as phone calls, zoom meetings or in-person options. A formal appointment is your opportunity to tell your story and initiate this process. Based on the family law advice you’re seeking, the attorney will work to answer any questions you have and understand your situation better. Use this appointment as a chance to get to know your potential lawyer! Are they honest and compassionate? For instance, if you’re going through a divorce, you’ll most likely want to choose an attorney whose understanding and whose expert support will make this situation a smoother process.

Finding the right family lawyer doesn’t have to be an overwhelming process! Are you in the Rochester Hills area, seeking a family lawyer? Book an appointment with Stephanie Krane-Boehmer, who specializes in family law. Stephanie supports family law needs in Oakland, Macomb, Genesee, Lapeer and Livingston Counties. Curious to learn more? Be sure to check out the multiple testimonials available on her website.

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The Basics of Bankruptcy Filing

Bankruptcy

Getting into trouble with debts that far exceed your income and no foreseeable way to reduce them can be a frightening reality caused by all kinds of circumstances. Filing for bankruptcy is one of several options to get back on track to financial stability. There are consequences to filing for bankruptcy, so it is not a decision to be made lightly, and there is a social stigma attached to it. However, bankruptcy should not be viewed as a negative. It is intended to give an opportunity for honest people to have a second chance and a clean slate.

Bankruptcy is not a free pass to walk away from your debts, and it doesn’t necessarily mean that you will lose your home or all of your possessions. Bankruptcy is a complicated process, and you should hire an experienced lawyer to help you navigate it and decide which option is best for you.

The very first step before filing for bankruptcy is to complete an accredited credit counselling course. Your bankruptcy lawyer can help you locate an agency that provides credit counselling and ensure that it fulfils the requirements to allow you to proceed with the filing. The next step is to assess your current financial situation and determine which bankruptcy process, chapter 7 or chapter 13, is most appropriate for your situation.

The Basics of Chapter 7 Bankruptcy

When most people think of personal bankruptcy, chapter 7 bankruptcy is what they have in mind. It is considered a ‘Fresh Start’ type of bankruptcy. In chapter 7 bankruptcy, some of your assets may be liquidated to pay off your creditors – but only those that cannot be protected. The assets can include your home, your vehicle and some of your personal belongings. A bankruptcy trustee is put in charge of the liquidation and distributing the proceeds to creditors. At the end of chapter 7 bankruptcy, many of your unsecured debts are discharged, but not necessarily all of them. For example, child support or alimony payment, student loans, and tax debts will remain and will need to be repaid in the future.

In order to qualify to file for chapter 7 bankruptcy, you must not have filed for bankruptcy within the last eight years, and you must meet income and debt level criteria. Your income must be less than the median income for similar households.

Even if you don’t qualify for chapter 7 bankruptcy because your income is too high, you may still be able to apply for chapter 13 bankruptcy.

Hire a Bankruptcy Lawyer

Take the important first step of hiring an experienced bankruptcy lawyer who can help you decide on the most appropriate course of action. No one chooses to let debt get out of control. If it happens to you, contact bankruptcy lawyer Stephaine Krane-Boehmer. Stephanie takes a hands-on approach with each client by listening to your unique circumstances, helping you understand the process, providing the expertise to get to a suitable resolution as quickly and comfortably as possible. The important thing for you to know is that there are options open to you and that no situation is hopeless. Call for a consultation to get started today.

5 Steps to Rebuilding Your Credit After Bankruptcy

Bankruptcy

Filing for bankruptcy doesn’t mean you’ll never qualify for credit again, though it may feel that way. With hard work and responsible spending, you can rebuild your credit rating to a lever that once again allows you to obtain credit. The first two years after bankruptcy are the most difficult to obtain credit with decent interest rates. However, with each positive mark on your report, your credit score begins to rise. You’ll be eligible for new credit, loans and mortgages with better rates and terms. Here are nine steps you can take to help rebuild your credit after bankruptcy.

Building Credit After Bankruptcy: 5 Smart Tips

Let’s look at some of the best ways to rebuild credit after bankruptcy.

1. Keep Up Payments on Remaining Debt

After you file bankruptcy, determine which debts you still retain and know the payment schedules. Bankruptcy cancels much of your debt, but some may remain, such as student loans and some vehicle loans. If you have debt relating to a credit union credit card, it may also remain after the bankruptcy is settled. Making regular payments – on time – on these debts is imperative and one of the most important steps you can take to start rebuilding your credit score.

2. Apply for New Credit

It seems counterintuitive, but applying for new credit to improve your credit score is a good idea. After a Chapter 7 bankruptcy, it can be more challenging to get low-interest rates and fees, and your approval may not be automatic. But it is vital to slowly begin to obtain new credit and keep it in good standing to show lenders that you are a responsible borrower.

Building up a new history of on-time payments gives your credit score the boost it needs to start moving it in the right direction. With any new credit you obtain, make sure the company reports to the three major credit bureaus: Experian, TransUnion and Equifax to get the most benefit.

Here are some examples of credit you can apply for after bankruptcy.

Apply for a secured credit card: Secured credit cards are require a cash security deposit (e.g., $1,000 deposit = $1,000 credit limit). By making the payments regularly and on time, you can rebuild your creditworthiness. Eventually, the credit card issuer may increase your credit limit or offer you a regular, unsecured credit card product.
Retail and gas cards: Retail credit cards typically have less stringent qualifications than other unsecured cards. Once you’re accepted, make small purchases, like a tank of gas here and there, and be sure to pay the balance every time, on time.
Open a small loan: Managing a loan with fixed payments, like an auto loan or home equity loan, shows creditors that you can borrow responsibly. The interest rates offered to you will likely be higher after bankruptcy, but the cost may be worth it to help rebuild your credit.

3. Consider a Cosigner or Becoming an Authorized User

Having a co-signer on a loan or rental agreement can help your chances of approval after bankruptcy. A co-signer acts as a legal, financial backer in case you don’t make payments. Auto loans, mortgages and even rental agreements often accept co-signers. With a co-signer, you’re approved for credit under your name. Successful payments boost your creditworthiness and your credit score. But be careful! If you fail to make the payments on-time, it will not only affect your credit score but could also affect your co-signer’s credit score as well!

Another possible option is to become an authorized user on someone else’s credit card. If a family member or friend agrees to add you to their credit card account, you can work to improve your scrid score. Payments appear on your credit report, provided the credit card issuer has a process for providing them to the credit bureaus.

4. Be Smart About Where You Apply

Every credit application results in an inquiry on your credit report, also known as a hard inquiry. Too many hard inquiries in a short time throws up flags for the lenders and hurts your credit score because it is viewed as risky behaviour. So, if you’ve been denied a new credit card, the requirements may just be a little too high for your current credit profile. Keep an eye on your credit, and be aware of the issuer’s underwriting standards so that you can apply for credit more wisely.

5. Keep Up Payments with New Credit Cards

Your payment history is the most important factor that impacts your credit score. It’s crucial, especially after bankruptcy, to make timely payments on any remaining and new credit. There are several things you can do to make it easier to stay on top of payments:

Enrol in autopay plans when available.
Make payments immediately after you make a purchase or multiple times a month.
Set calendar reminders to make payments in advance of the due date.
Arrange your personal finances to help you pay off the entire balance each month.

Get The Support You Need As You Rebuild Credit After Bankruptcy

When recovering from bankruptcy, it can seem impossible to get your credit score back into better shape. It may not be quick, but with some diligence and patience, you can do it. Have questions about bankruptcy or wondering if it is the right solution for you? Contact Stephanie Krane-Boehmer at 248-293-0048 to learn more.

Our office is located in Rochester Hills, and we serve Oakland, Macomb, Genesee, Lapeer, Livingston, and Wayne Counties.