Hathaway Sprague Law, PA: Lawyer Tallahassee Florida2024-03-01T06:21:58Zhttps://www.hathawaylaw.net/feed/atom/WordPressOn Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503962024-02-27T22:36:01Z2024-03-01T06:21:58ZReview your credit report
Start by obtaining a copy of your credit report from major credit bureaus. Examine it to ensure accuracy. Identify errors related to the foreclosure or any other accounts. Dispute inaccuracies to have them corrected.
Create a realistic budget
Establishing an accurate budget supports financial recovery. Analyze your income, expenses and debts to determine a feasible plan. Prioritize essential expenses and allocate funds for debt repayment to improve your credit standing.
Build an emergency fund
Prepare for unexpected expenses by building an emergency fund. Savings can prevent you from relying on credit for unforeseen costs.
Obtain a secured credit card
Secured credit cards can be valuable tools in rebuilding credit. They require a security deposit to serve as collateral. Responsible use of a secured credit card, including timely payments, can show your creditworthiness over time.
Explore credit-builder loans
With a credit-builder loan, you make regular payments into a savings account. Once you have fully repaid the loan, you receive the accumulated funds. This strategy creates a positive payment history that can improve your credit score.
Make on-time payments
Prioritize payments for all your obligations, including credit cards, loans and utility bills. Timely payments demonstrate financial responsibility, positively impacting your credit score.
Negotiate with creditors
Engage in open communication with creditors to discuss your financial situation. Some lenders may negotiate payment plans or settle for a reduced amount. Establishing agreements and fulfilling them can upgrade your credit standing. But remember, when a creditor settles with you for a reduced balance, that reduction becomes income to you and you must pay income tax on it. It's called "Cancellation of Indebtedness Income." The tax, however, is far less than the amount that is forgiven, so don't let a little tax stop you!
Florida had more foreclosures than any state but Texas and California in the first half of 2023. As you implement these strategies, educate yourself on effective credit-building strategies and changes in credit regulations. Being proactive can inform sound financial decisions and accelerate the credit-rebuilding process.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503932024-02-15T05:12:55Z2024-02-21T05:12:42ZHead of family exemption
For the head of a family, wages are exempt up to $750 per week. Alternatively, protection is available at the greater of 75% of their earnings or 30 times the federal minimum wage. This exemption applies to both paid and unpaid wages, as well as wages deposited in a bank account within the past six months. In Florida, the median household income is $67,917. This equals about $1,306 per week.
Earnings of others
Individuals who are not the head of the family also get earnings protection. Similar to the head of the family exemption, safeguards apply to 75% of their wages or 30 times the federal minimum wage, whichever is greater.
Federal government employees' pension payments
Additionally, pension payments for federal government employees, necessary for support and received within three months before filing for bankruptcy, are exempt from creditors' claims. This exemption provides protection for individuals relying on these payments to meet their basic needs.
By knowing that the law protects wages to a great extent, individuals can better navigate the bankruptcy process and ensure they retain necessary resources for their livelihood.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503892024-02-05T15:43:27Z2024-02-08T06:43:09Z1. How do I initiate probate?
To start the probate process, you need to file a petition with the appropriate court to open the probate case. This petition includes information about the deceased person, their assets and potential heirs. In a formal probate case, the "Personal Representative" (a/k/a Executor) must be represented by an attorney.
2. What happens during the probate process?
During probate, an inventory and appraisal of the deceased person's assets occurs. Creditors receive notification of the death. The estate's assets pay for any outstanding debts. Finally, the beneficiaries receive the remaining assets according to the terms of the will or Florida law.
3. How long does probate take?
The duration of probate varies depending on factors such as the complexity of the estate, disputes among beneficiaries and the efficiency of the executor. In simple cases, probate can take a few months, while more complex cases may take a year or longer. It also depends on the court's caseload. In FY 2023, Leon County Circuit Court had 2,127 new filings, 969 of which involved probate.
4. What should beneficiaries do during the probate process?
Beneficiaries should stay informed about the progress of probate and be patient, as the process can take time. It is important to work with the personal representative/executor and provide any necessary documentation or information promptly.
The probate process in Florida can seem daunting. Seeking guidance from a professional experienced in probate matters can help ensure a smoother process and avoid potential pitfalls.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503872024-01-23T09:17:26Z2024-01-26T09:49:45ZKeep communicating
Reach out to your mortgage lender as soon as you anticipate an issue with making your payment. Lenders understand that financial hardships can happen, and many have programs in place to assist borrowers facing difficulties. Explain your situation honestly and inquire about any available options, such as loan modification or temporary forbearance. Being proactive and transparent can help establish a positive rapport with your lender.
Look for assistance programs
Depending on your circumstances, you may qualify for assistance programs designed to help homeowners facing financial hardships. These programs may be available through local or federal housing agencies.
Re-evaluate your budget
Look over your budget to identify areas where you can cut back temporarily. While it may be challenging, taking a close look at your expenses can help you prioritize essential needs. Cutting back on non-essential expenses, even temporarily, can free up resources to meet your immediate financial obligations.
Additionally, explore the possibility of increasing your income through temporary or part-time work. Finding a source of extra income can provide the additional funds needed to cover your mortgage payment.
Consider refinancing
Refinancing can sometimes lead to a lower monthly payment or provide you with a more manageable repayment plan. However, carefully weigh the costs and benefits associated with refinancing to ensure it aligns with your long-term financial goals.
Remember, facing challenges with your mortgage payment is a common experience. There are resources and options available to help you overcome this and work towards a more stable financial future.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503802024-01-09T07:24:46Z2024-01-12T07:24:08Z1. Economic fallout
Businesses faced unprecedented challenges in recent years, with shutdowns, supply chain disruptions and fluctuating demand creating financial strains. Individuals also grappled with job losses, reduced income. and mounting debt. These issues amplified the financial distress that led many to seek bankruptcy protection as a means of managing overwhelming financial burdens.
2. Inflationary pressures and rising costs
There were also inflationary pressures in 2022, resulting in rising costs for goods and services. Increased costs, particularly in areas such as housing, health care and energy, placed additional strain on consumers. For many, the economic landscape became more precarious, leading to financial instability and, in some cases, the need for debt relief.
3. Accumulation of personal debt
Another factor contributing to the rise in consumer bankruptcy filings was the accumulation of personal debt. Individuals found themselves grappling with credit card debt, medical bills and other financial obligations that became hard to manage. The compounding effect of these debts pushed many to seek the protection and debt relief offered through bankruptcy.
According to Reuters, U.S. bankruptcies increased by 18% in 2022. As the economic landscape continues to evolve, the insights gained from these trends will be important for understanding the broader implications of the economic shifts seen in 2022.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503822024-01-08T18:21:58Z2024-01-12T04:11:11Zestate planning documents.
Last will and testament
The cornerstone of any estate plan, your will, contains how you want to distribute your assets after you pass away. Make sure this document defines your beneficiaries and specifies who gets what. You will also name the person you want to be in charge of your estate - the Personal Representative a/k/a Executor. This is a person who is honest, good with paperwork and efficient. Not necessarily the "oldest child." This step is not just for the wealthy—everyone should have a will.
Guardianship of children
Parents of young kids rarely want to think about something happening to them, and many parents are fearful of even thinking about it. However, life happens whether we want it to and it is critical to designate a guardian for your minor child or children if something happens to you.
Healthcare proxy and living will
If there is ever a time when you cannot make medical decisions for yourself, someone will have to make those decisions for you. The best way to have control over who will make these decisions is by designating a healthcare proxy.
A living will outline your preferences for medical treatment, which provides guidance to the person you choose as your healthcare proxy and helps both them and medical professionals understand what you want to do if certain medical issues come up.
Financial power of attorney
This document allows you to designate someone to manage your financial affairs when you cannot. It is a practical way to ensure that someone you trust pays your bills and handles your financial matters.
Letter of intent
While this is not a legally binding document, a letter of intent can be enormously helpful in understanding you and your wishes when it comes time to decide on your behalf or distribute your assets. The clearer you are about what your wishes are, the easier the process will be.
There are other important documents that you should have in your estate planning, such as beneficiary designations, trust documents, digital asset instructions, and funeral instructions. There are additional protections for both you and your loved ones, so the process is clear when you pass away.
Remember, estate planning is not just for one specific group of people. In fact, everyone who owns anything should have a will and estate planning documents.
Everyone may have preferences about how they want to handle their last days. Make sure you do not miss out and regularly review and update your estate planning documents to ensure they are always consistent with your current life circumstances.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503772023-12-26T08:30:58Z2023-12-29T08:30:14ZStart as an adult
As soon as you turn 18, consider starting your estate planning. Even if you have few assets, having basic documents like a will ensures the distribution of your personal belongings as you wish.
Update after major life events
Major life events such as getting married, divorcing, having a child or buying a home should prompt you to update or start your estate planning. These events often change your priorities and financial situation.
Begin with asset acquisition
When you start acquiring more assets, it is time to plan how to manage and protect them. Estate planning can help structure their distribution efficiently and can help prevent potential disputes after you pass away.
Plan before retirement
As retirement approaches, thorough estate planning becomes increasingly important. This is your chance to ensure your plans align with your retirement goals and consider your financial needs in later years.
When it comes to estate planning, the sooner, the better. By staying informed and keeping your estate plan updated, you can ensure peace of mind for yourself and your loved ones.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503752023-12-15T19:29:19Z2023-12-19T07:38:53ZUSCourts.gov, 381,721 people filed for bankruptcy in 2022. You may want to consider this option if you find yourself in certain financial situations.
1. Persistent overwhelming debt
One clear sign that bankruptcy may be necessary is when you find yourself trapped in a cycle of unmanageable debt. If your debts, such as credit cards, medical bills or loans, continue to accumulate despite your efforts to pay them off, it might be time to evaluate your financial situation.
2. Threat of legal actions
Facing legal action due to unpaid debts is a serious matter. If creditors are taking legal action against you, such as filing lawsuits or garnishing your wages, it is a strong indicator that your financial situation requires immediate attention. Bankruptcy can provide a legal shield against these actions and give you a chance to regain control of your finances.
3. Inability to cover basic living expenses
Struggling to cover basic living expenses like housing, utilities and food is another warning sign. If your income falls short of meeting these fundamental needs, bankruptcy may offer a fresh start by eliminating or restructuring debts, allowing you to rebuild your financial stability.
4. Decreased credit score
A declining credit score is often a consequence of missed payments and growing debt. While bankruptcy itself will impact your credit score, it can also serve as a reset button, enabling you to rebuild your credit over time. If your credit score is already significantly compromised, bankruptcy might be a strategic move to pave the way for a more secure financial future.
5. No realistic repayment plan
If you have diligently explored other debt relief options without finding a realistic repayment plan, bankruptcy might be the necessary step. Without a clear path to settle your debts, the cycle of financial instability may persist, making bankruptcy a viable solution.
Recognizing the signs that it is time to file for bankruptcy can be a proactive step toward regaining control of your financial well-being. Understanding when the time is right can provide a fresh start and pave the way for a more secure financial future.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503712023-11-28T05:38:58Z2023-12-02T05:37:38ZAssessing credit impact
Foreclosure typically leads to a significant dip in credit scores. The extent of this decline determines the path forward. You may be unable to qualify for an affordable interest rate in the months after the foreclosure.
Reviewing loan options
Federal Housing Administration loans have a shorter post-foreclosure waiting period than for conventional loans. You may be eligible for an FHA loan after three years. You must meet the necessary credit requirements and show financial stability during that period.
On the other hand, you may have to wait up to seven years after foreclosure to get a conventional mortgage. These home loans often have stricter financial and credit criteria as well.
Federal USDA and VA loans offer tailored options for those with a history of foreclosure. These programs typically have looser credit requirements and may not require a down payment. Eligibility criteria and waiting periods vary, but you may become eligible sooner than for a conventional loan.
While these are general guidelines, individual lenders may have their own policies. Some companies may consider borrowers on a case-by-case basis. They sometimes account for factors beyond credit scores, such as employment history, income stability and overall financial health.
Rebuilding credit
Regardless of the type of loan individuals pursue, rebuilding credit is a crucial component of the process. Taking proactive steps to improve credit scores, such as making timely payments, reducing outstanding debts and managing finances responsibly, can expedite the journey back to homeownership.
Embarking on the path to homeownership after foreclosure requires strategic financial planning. Individuals should focus on budgeting, saving for a down payment and addressing any outstanding debts.
Florida reported more foreclosures than any other state in the second quarter of 2023. Understanding the timelines for buying a home after foreclosure is the first step in the rebuilding process.]]>On Behalf of Hathaway Sprague Law, P.A.https://www.hathawaylaw.net/?p=503352023-11-09T09:17:13Z2023-11-14T09:16:56ZChapter 7 bankruptcy
Chapter 7 bankruptcy is a "liquidation" or "straight bankruptcy” and is available to qualifying individuals who have limited income and unsecured debts that they cannot repay. In Chapter 7, you may need to turn over non-exempt assets to pay off your creditors. However, certain property exemptions protect some of your assets, like your primary residence, personal items and essentials.
Once you sell your non-exempt assets, the remaining eligible debts undergo discharge, meaning you no longer have a legal obligation to repay them. This includes credit card debt, medical bills and personal loans. Chapter 7 bankruptcy is usually a relatively fast process, taking between about three and six months to complete.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is available to individuals with regular income who want to create a manageable plan for repaying their debts. In Chapter 13, you work with the court to create a three-to-five-year repayment plan outlining how you will pay back your creditors. This plan includes secured debts like mortgages and car loans, as well as unsecured debts.
Unlike Chapter 7, Chapter 13 does not involve selling your assets. You can keep your property as long as you follow the repayment plan. Chapter 13 also does not have an income threshold for eligibility. It is open to individuals with regular income, even if it exceeds the state's median income.
While both Chapter 7 and Chapter 13 bankruptcy filings help consumers find relief from overwhelming debt, the Motley Fool notes that 70% of people who file for bankruptcy file for Chapter 7. Ultimately, the choice of which consumer filing to use depends on your financial situation and your goals for managing your debt.]]>