Terenzini & Lucero, LLC FindLaw IM Template2024-03-18T15:40:35Zhttps://www.bourslucerolaw.com/feed/atom/WordPress/wp-content/uploads/sites/1502035/2024/01/cropped-Site-Icon-32x32.jpgOn Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478652024-03-15T16:10:09Z2024-03-18T15:40:35ZBankruptcy filings in Maryland
According to the data in the recent news article, over 9,600 bankruptcy cases were filed in Maryland in 2023. The vast majority of the filings were under Chapter 7 – 62% of all filings. Another 37% were under Chapter 13. Chapter 11 bankruptcy filings were less than 1%.
So, why would Chapter 7 bankruptcy be the route that is most pursued? In short, it is probably the most likely route by which consumers in Maryland can get the majority of their debt discharged – as long as they meet the income requirements to fall under Chapter 7.
Our readers may know that Chapter 7 bankruptcy is often known as a liquidation. This is because under this form of bankruptcy all of the debtor’s non-exempt assets are sold off and the proceeds are applied toward outstanding debt. However, many assets are, in fact, exempt from the bankruptcy process.
If you are facing seemingly insurmountable debt burdens, you are not alone and you do have options. Chapter 7 bankruptcy is a valid means of getting your debt issues behind you and moving forward with a fresh start.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478642024-03-11T08:54:06Z2024-03-07T09:53:14ZBankruptcy basics
So, what is bankruptcy all about? The basic concept of bankruptcy is to allow debtors to get a “fresh start” and honestly deal with the accumulated debt that is burdening their financial situation. To the extent that some assets may be sold off and creditors paid, at least partially, with the proceeds of those sales, that fresh start can be realized.
For most individuals and families, Chapter 7 bankruptcy is the first bankruptcy path to consider. This form of bankruptcy, commonly referred to as “liquidation” bankruptcy, is the option whereby assets are sold off and proceeds go to creditors.
Then, if there is any remaining debt, it is discharged – although certain types of debt may be excluded under the law. And, many types of assets are exempt from the liquidation process. Additionally, there are income thresholds involved in this type of bankruptcy.
In short, if a person doesn’t qualify for Chapter 7 bankruptcy, another form of bankruptcy might be an option. In other forms of bankruptcy, debt may be restructured and paid off over time as part of a comprehensive plan.
The reality is that Maryland residents do have options for addressing debt and getting relief. That is what bankruptcy is all about. If you have what feels like a spiraling debt situation, it may be beneficial to get more information about your bankruptcy options.
]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478632024-02-15T09:43:59Z2024-02-15T09:43:59Za prenup can reinforce your trust in each other. It demonstrates a strong confidence in your relationship, as it involves talking to your partner about critical money matters and preparing for your future together. You can ensure you are on the same page. It is a sign of maturity and honesty, not distrust.
How a prenup can benefit both spouses
One of the most common misconceptions about prenuptial agreements is that they are only for wealthy individuals or those planning to divorce. However, anyone who is getting married and has assets, such as a home, investments or a business, may benefit from a prenup. Prenups can provide numerous benefits, including the following:
Protection of assets: A prenup does not just protect individual assets; it can also protect the monetary interests of both partners, fostering a sense of security and mutual respect. It allows you to support one another's financial independence and career goals, which can be especially important in marriages where both partners have established their own wealth or business interests.
Clarity and transparency: A prenup can provide clarity and transparency around each party's duties to the marriage and expectations from it. It can help prevent misunderstandings and disputes in the future.
Estate planning: A prenup can also help with estate planning in case either one of the spouses passes unexpectedly. You can ensure your surviving spouse receives your separate property.
Discussing a prenup can be a positive and affirming step for your relationship. It is an opportunity to build trust as you openly discuss your values, priorities, aspirations and the life you envision together. By addressing these important issues now, you fortify your partnership against future uncertainties.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478622024-02-01T09:25:18Z2024-02-01T09:25:18ZHow to determine if your business is marital property
Did you start or acquire your business during your marriage? If so, it may be subject to division. However, if you owned the business before tying the knot, you might have a stronger claim to keep it out of the divorce proceedings. Yet, any increase in value during the marriage could still be up for discussion.
If your business is part of your marital property, you need to understand how Maryland law affects its fate. Remember, every decision you make must align with Maryland's equitable distribution laws. Equitable does not always mean equal, but it does mean fair. And what is fair can be as unique as your business itself.
Alternatives to selling your business
Even though your business is marital property, selling it is not your only option. You could opt for a buy-out, where you purchase your spouse's share of the business. Alternatively, co-ownership might work if you both agree to keep professional ties post-divorce. You could also negotiate by trading other assets in exchange for full ownership of your business. Regardless of the path you choose, an accurate valuation of your business is essential.
Divorce is a challenging chapter, but it does not have to spell the end for your business dreams. Making informed and strategic decisions can help ensure that your business thrives, even as you close the chapter on your marriage.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478592024-01-25T15:17:09Z2024-01-25T15:17:09ZJoint property ownership
Deciding to continue owning the property together is the least common option. However, couples in a variety of scenarios may negotiate contracts for shared future ownership of their marital home. Perhaps they decide to work on the property to improve its value before listing it for sale at some point in the future. Maybe they decide to rent it out as a source of income that both spouses can share.
Those with children sometimes agree to a birdnesting custody arrangement. They maintain joint ownership of the marital home to preserve the stability of their children as much as possible. The parents then stay in the home during their parenting time and elsewhere when they do not have time with the children.
Sole ownership for one spouse
Sometimes, one spouse has more of an interest in the property than the other, possibly because they purchased it prior to marriage or inherited it from family members. Other times, it could be custody arrangements for minor children that lead to one person having a stronger reason to stay in the marital home than the other.
It's common for one person to retain ownership and possession of the marital home after a Maryland divorce. Typically, they either need to withdraw home equity when refinancing to compensate their spouse or agree to other property division terms that account for the equity accrued during the marriage.
The sale of the home
There are scenarios in which neither spouse can afford the home after a Maryland divorce. There are also many couples who agree that neither spouse wants to live in the same home after a divorce. They may agree to sell the home and share in the income derived from that transaction. When spouses sell the marital home, each may receive funds that can help them establish an independent lifestyle after the divorce.
Considering different solutions for valuable marital property may help people better plan for the future during a Maryland divorce.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478582024-01-22T14:35:38Z2024-01-22T14:35:38ZThis arrangement involves a third party to oversee visits between children and their non-custodial parents. The third party can be a trained professional who can help keep the child safe and ensure the visit follows restrictions in the court order. Supervised visitation can be necessary in the following scenarios:
The case involves incidents of domestic abuse, neglect, violence and substance abuse.
The non-custodial parent has mental health issues or illnesses.
The child has been alienated or apart from the non-custodial parent for a long time.
The court can consider other factors that can pose harm, such as the possibility of the non-custodial parent fleeing with the child.
These arrangements can include various features, such as monitoring exchanges or enforcing no-contact restrictions. The rules exist to allow the child to develop connections with their non-custodial parents while prioritizing safety.
Determining visitation requirements
Regarding visitation, its details can significantly hinge on the case and the family's situation. Some cases may involve little to no disputes, potentially resulting in simple setups without having to enter supervision programs. Other times, the children can face high-risk scenarios, especially if the case involves severe disputes that can impact the entire family. In these instances, it is best to get legal counsel and allow the court to determine the most appropriate visitation type that puts the child's best interests first.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478572024-01-11T16:24:01Z2024-01-11T16:24:01ZBenefits of Chapter 7 bankruptcy
Chapter 7 bankruptcy, known as liquidation bankruptcy, is a common solution for individuals who struggle to make regular payments to their debts. It involves liquidating assets to pay off creditors.
Its primary advantage is the discharge of qualified debts, meaning you would no longer need to pay those debts. Among them are medical bills, credit card bills and unsecured personal loans. Processing is often quick, and discharge can take four to six months to complete. Additionally, because it includes a court order called an automatic stay, it helps stop creditors from harassing you immediately.
Limitations of Chapter 7 bankruptcy
Not everyone can apply for Chapter 7 bankruptcy. One major requirement to be eligible is to pass the means test. In other words, your income must fall below the state’s median income to qualify. Typically, this type of bankruptcy is best for people without disposable or steady, regular income.
Declaring bankruptcy requires careful consideration. Although it can give you a fresh start, it does not erase all your problems. Chapter 7 can impact your credit score, making it difficult for you to make major purchases. There are also debts that may not be discharged, such as taxes, student loans, alimony or child support. Additionally, you might have to sacrifice certain assets during the process.
Before you make the decision to file for Chapter 7, it is advisable to weigh the advantages versus the drawbacks. A bankruptcy attorney may provide you with legal advice based on your unique financial situation.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478192023-12-29T12:27:57Z2023-12-29T12:27:57ZIdeally, divorcing couples can collaborate to make arrangements that suit their family's needs. However, the court has the final say, especially if the parents have conflicting preferences regarding child custody. Each child custody arrangement has their pros and cons, but the court considers various factors before granting joint custody, including the following:
The capacity of each parent to collaborate and make decisions together
Each parent's custody-related preferences
Each parent's overall health
The child's relationship with each parent
The child's preferences
Any adjustments that may disrupt the child's life at home, school and community
Logistics that may impact the custody arrangement, such as the location of each parent's residence and their work schedules
Other considerations can apply, such as other children in the household and each parent's financial capacities. A judge can also evaluate further details surrounding the family situation to determine what setup will be most beneficial to the child.
Deciding on a case-to-case basis
There is no one-size-fits-all arrangement when it comes to child custody. Sometimes, the divorcing couple is on good terms, making joint custody a viable option. Meanwhile, other cases can have details posing risks to the child, causing the judge to take various precautions to prioritize safety and security.
In these instances, having accurate and adequate information is crucial to the judge, who must finalize the decision. Thoroughly assessing the situation can help ensure the setup prioritizes the child's best interests.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478172023-12-14T15:44:59Z2023-12-14T15:44:59ZYou may still be able to modify the agreement
In Maryland, the law allows for post-divorce modifications. However, this is only if there has been a substantial shift in your circumstances. This can include a wide range of events, such as changes to:
Your income or employment status
The value of your assets or debts
Needs of the parties or your children
Custody or living arrangements of your children
Your request for modification must also be fair and reasonable. This means that in addition to the changes in your situation, you must also prove that your request for modification is necessary to ensure your fair and reasonable share of the marital assets.
How do you modify a property division agreement?
If you are seeking a post-divorce modification in Maryland, you will need to follow the following steps:
Meet the legal grounds for modification: You will need to show that there has been a substantial change in circumstances and that the modification is fair and reasonable.
File a petition for modification: You will need to file a petition for modification with the court, stating the grounds for the modification and the relief you are seeking.
Serve your spouse: You will need to serve your spouse with the petition and a summons, giving them notice of the modification proceedings.
Attend a hearing: Both you and your spouse will need to attend a hearing in court, where you will present evidence and arguments in support of your requested modification.
Obtain a court order: If the court grants your petition, it will issue a new order modifying the property division agreement.
To ensure a fair and reasonable outcome, it would be wise to consult an attorney who can advocate for your rights.
Post-divorce property division modifications can be complex and emotionally challenging, but they can also provide a way to address unexpected circumstance in your life. Whether you are dealing with a change in income, a job loss or other unforeseen twist of fate, seeking a modification to your property division can help you adapt to these changes.]]>On Behalf of Terenzini & Lucero, LLChttps://www.bourslucerolaw.com/?p=478162023-12-03T17:58:38Z2023-12-03T17:58:38ZTop reasons for bankruptcy
Personal bankruptcy in the United States can occur for various reasons, and some of the most common causes include the following concerns:
Medical expenses: High healthcare costs, unexpected medical emergencies or inadequate health insurance coverage can lead you into financial distress. If you are accidentally injured or become severely ill, you will probably get the medical treatment and focus on your health more than the cost. But that bill will eventually come due, whether you really had a choice in the matter or not.
Job loss or reduced income: Sudden unemployment, reduced work hours or loss of a primary income source can make it difficult to meet financial obligations. But this job loss may not be your fault; perhaps the company had to downsize because of an economic recession, even though you were doing your job perfectly.
Unexpected expenses: Natural disasters, home repairs, car accidents or other unforeseen events that require significant financial outlays can strain finances. Many people live paycheck to paycheck. If you do, your budget may work perfectly as long as things go according to plan, but one unexpected cost can upset the balance.
As you can see, there are plenty of ways in which bankruptcy can happen even though adults have been financially responsible prior to needing help.
Are you considering bankruptcy?
It's crucial to note that bankruptcy is a relatively complex process. If you’re thinking about utilizing it to give yourself a fresh start financially, make sure that you are well aware of the legal steps you’ll need to take. You have to consider the different types of bankruptcy – such as Chapter 7 vs Chapter 13 – to determine what you qualify for and what will help you achieve optimal results in your unique situation. Seeking legal guidance can help you to get started.]]>