Friday, May 18, 2018

Credit Card Debt in Bankruptcy

Credit Card Debt in Bankruptcy

In an economy where housing problems dominate the headlines, high interest credit cards still remain one of the largest issues consumers face in their fight for financial health. It should come as no surprise to learn then, that credit card debt is still one of the primary reasons consumers are forced to file for bankruptcy. When a credit card account has been delinquent for more than 180 days, banks will charge off what is owed as “bad debt” and sell the account to a debt collector who will call, harass and even sue if the past due balances are high enough. Mounting pressure from debt collectors pushes many consumers through the front door of a bankruptcy office because chapter 7 protection is widely perceived as the fastest and best way to get out from under unmanageable credit card debt. While it is true that filing for bankruptcy can help discharge credit card bills, there are some basics that every consumer needs to know before relying on bankruptcy as a debt relief measure.

In this post we will give you the basics so that you can evaluate whether bankruptcy is a good solution to your credit card problems. Please also be sure to browse the related posts section of this page for additional information.

Credit Card Debt is Dischargeable in Bankruptcy

That’s the number one rule when it comes to unsecured debts like credit cards debts and medical bills, they are dischargeable in bankruptcy. When you file for bankruptcy, all of your unsecured debts are eliminated, meaning you do not legally owe these bills any longer. Credit card companies who choose to pursue you for old, discharged debts will do so in violation of the law and will be subject to sanctions by the bankruptcy court. Furthermore, unlike debts that are forgiven through private negotiation with a lender, there is no tax liability for debts that are discharged in bankruptcy.

Your Credit Reports Should Show ZERO Balances on Your Credit Cards After Bankruptcy

This is an area where consumers get tripped up. After bankruptcy, The credit card companies are required to report discharged debt as having a ZERO balance. It is often necessary to check your credit report and confirm its accuracy after your case closes.

Fraud Will Prevent Credit Card Debt From Being Discharged

While the general rule is that credit card debt is easily eliminated by filing for bankruptcy, fraudulent activity can jeopardize your entire bankruptcy discharge. Using credit cards for luxury purchases prior to bankruptcy creates a presumption of fraud which can be difficult to overcome. Don’t use credit cards after meeting with a bankruptcy attorney unless you’ve decided not to file. The bottom line is any use of credit cards with the intention of not paying the debt back is fraudulent. The bankruptcy code protects debtors who behave in good faith and punish debtors who to try to game the system. For more information see: Using Credit Cards Before Bankruptcy is a Big No No!

Can You Keep a Credit Card Out of Your Bankruptcy?

All debts including credit card debts, must be disclosed in your bankruptcy petition. This means that you cannot keep any credit card that has a balance “out of your bankruptcy”, it must be disclosed and will be discharged along with the rest of your unsecured debts. Credit cards with zero balances do not create a debt obligation and are therefore not required to be disclosed in a bankruptcy filing. For more information see: Can I Keep a Credit Card Out of Bankruptcy?

Will I be Able to Get a Credit Card After Bankruptcy?

Believe it or not yes. Creditor companies often send debtors offers for credit cards after they filed for bankruptcy knowing that it will be 8 years before they can file for bankruptcy again. Additionally, bankruptcy will illuminate all of your unsecured debt making your debt to income ratio more attractive to lenders who see that you now have the ability to take on new debt. This is not to say that filing for bankruptcy is good for your credit, because it is not. However, consumers emerging from bankruptcy commonly receive offers for cards in the mail very soon after their bankruptcy case has closed. For more information see: Can You Keep a Credit Card After Filing for Bankruptcy?

Call a Utah Bankruptcy Attorney

The bottom line is that as long as you’re acting good faith credit card debt will be discharged in a bankruptcy filing. In fact, one of the main reasons why consumers are forced into bankruptcy is high-interest credit card debt. If you’re facing credit card bills that have spiraled out-of-control, it is never a bad idea to meet with a bankruptcy attorney to discuss your options.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Thursday, May 17, 2018

How to Determine if a Prenuptial Agreement is Right for You

Whether to enter into a prenuptial agreement or not is a very personal decision. Each individual and couple is unique. Therefore, you should base your decision on your own unique circumstances. Review the pros and cons of prenuptial agreements and then read through the steps below to help you decide if a prenuptial agreement is right for you.

How to Determine if a Prenuptial Agreement is Right for You

Pros of a Prenuptial Agreement

Some of the benefits of a prenuptial agreement include

  • documenting each spouse’s separate property to protect it as separate property,
  • supporting your estate plan and avoiding court involvement to decide property distribution,
  • distinguishing between what is marital and what is community property,
  • documenting and detailing any special arrangements between you and your spouse,
  • avoiding extended court proceedings, which result in the time of expensive divorce attorneys,
  • reducing conflicts during a divorce,
  • establishing procedures and rules for issues that may arise in the future, and
  • assigning debt, such as credit cards, school loans, and mortgages, to the appropriate spouse to avoid both spouses sharing debt liability.

Many people fear that discussing these matters, or even bringing up the word prenuptial agreement, will cause turmoil in their relationship. Often times, just the opposite is true. One of the main irreconcilable differences leading to divorce is finances. Talking to your spouse ahead of time regarding finances, property, and marital asset management can avoid a lot of these disagreements. You both can get on the same page in the beginning so that the issue does not pop up and cause an argument later. Furthermore, discussing these issues nurtures healthy communication. Even if you and your spouse decide a prenup is not for you, discussing the mentioned issues is a very good idea.

Cons to a Prenuptial Agreement

Although nuptial agreements carry a lot of benefits, there are some downsides that you should consider before creating one.

  • It’s not romantic. If you fear that discussing a property and finance distribution and the possibility of a separation or divorce will dull your relationship in some way, then a prenup may not be right for you.
  • The timing may not be right. The beginnings of a marriage are typically a time of marital bliss, when many of the issues involved in a prenup are not even a thought. You may be at a point in your lives where you don’t yet know the answers to some of the issues in a prenup. The truth is these issues will come up eventually, whether during the marriage or if you divorce. If you think the timing of discussing these issues is bad, or you just don’t have a basis for formulating decisions or answering questions, then the timing may not be right for you.

    You can always wait until after you are married, when you may know a little more about the management of your household. An agreement made after you’re married is called a “postnup”. These are enforceable, but be sure to consult an attorney before creating one, because the legalities and enforcement of postnups do vary from prenups.

  • There may be state laws that cover all of the issues you want to address, without a prenup. Different states have laws that determine how property is distributed in the case of a separation of divorce. These laws may be perfectly ideal for you. If so, there is no need of going through the trouble of creating a prenuptial agreement. On the other hand, there may be certain issues in your situation that are not covered by the law, and would nudge you towards clarifying the issue in a prenup.
  • A prenup cannot include child support or child custody issues. The court has the final say in calculating child support. The court determines child support based on a “best interest of the child” standard, with several factors at play. A court would never uphold a provision of a prenuptial agreement that dealt with child support.
  • A court can set aside any provisions it finds to be unfair or not in the interest of justice. For example, courts have set aside provisions that do not allow a spouse any share of the other’s bank account, if the account holder contributed greatly to that bank account during the marriage. The most commonly set aside provisions are alimony agreements and alimony waivers.
  • A prenup cannot include personal preferences, such as who has what chores, where to spend the holidays, or what school the children should attend. Prenuptial agreements are designed to address financially based issues. Judges grow uncomfortable when they see private domestic matters included in a contract, and will often view the document as frivolous, striking it down.

Analyzing your specific situation

Now that you have reviewed the pros and cons, think about your specific situation to decide if a prenuptial agreement is right for you.

Take The Prenuptial Agreement Questionnaire

  • Do you own real estate?
  • Aside from real estate, do you have more than $50,000 in assets?
  • Do you earn more than $100,000 a year in earned income?
  • Do you own any part of a business?
  • Do you have more than one year’s worth of retirement benefits?
  • Do you have employment benefits such as stock options or profit sharing?
  • Do you or your partner plan to go to school for an advanced degree, while the other works?
  • Does a part of your estate name beneficiaries or heirs other than your partner?

If you or your partner answered yes to one or more of these questions a prenuptial agreement is in your best interest. If you answered no to all of them, a prenup is probably not needed, but could still be used to protect your current or future assets.

Brainstorm Important Property Issues

Once you have decided that a prenuptial agreement is right for you, you need to decide what to include in your prenup. Your partner and you should each separately brainstorm and write down all of the property issues you want to include in your prenuptial agreement. Here is a list of some common prenup topics to help you:

  • Estate planning issues, for example, conveying family property or providing for children from previous marriages (not child support)
  • Separate business
  • Retirement benefits
  • Distinguishing separate and joint property
  • Holding yourself not responsible for your partner’s debts
  • Distribution in the event of divorce, including alimony
  • Income, deductions, and claims for filing your tax returns
  • Management of household bills
  • Management of joint bank accounts, if any
  • Arrangement regarding investing in certain purchases or projects, like a house or business
  • Management of credit card spending and payments
  • Savings contributions
  • Arranging putting one or the other through school
  • Property distribution to the survivor, including life insurance, in the event of death
  • Settlement of potential disagreements, such as using mediation or arbitration

Evaluate your comfort level

Once you have thought about whether you need a prenuptial agreement and what issues should be covered in your prenup, evaluate how comfortable you are with the idea of having a prenup. Familiarizing yourself with the laws of your state might also be helpful, especially if you question how a prenup affects your rights verses your given legal rights without a prenup.

Many people fear discussing the idea of a prenuptial agreement with their partner might upset or offend their partner. The fact is that the issues covered in a prenup will have to be discussed with or without a prenup. Perhaps practicing discussing difficult topics can start with the topic of a prenuptial agreement. Be upfront and honest with your partner. Tell him or her that it is a difficult topic, but that these issues do have to be discussed and decided on and can be done so in a respectful manner. Some people even use a third party professional, like a counselor, to help them sort through these issues in a loving way.

On the flip side, if you don’t want a prenup, but your partner does, use this opportunity to practice discussing difficult topics that are important to the relationship in a loving and nonthreatening manner. Whether you decide on a prenup or not, it will be a great communication tool and will teach each of you what the other needs and wants.

After considering all of this, evaluate your comfort level on a scale of one to ten. If you rated your comfort level at a six or above, you are ready to discuss the details of your prenup with your partner. Even with that much confidence, remember that your partner may not be as comfortable as you are. Be sympathetic to that. Also, remember that you two will disagree on some things, but that this is okay. Talk it out. Give yourselves plenty of time and be willing to seek help if you need it.

If you rated your comfort level at a four or five, you may still want to talk to your partner to see where he or she stands. Doing this may help you decide more or less on whether a prenuptial agreement is the right thing for you and your relationship.

Free Initial Consultation with a Lawyer in Utah

If you’ve decided you need a prenup, be sure to call a prenuptial agreement attorney so you don’t have mistakes and errors in the document that you can’t fix later. Call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Wednesday, May 16, 2018

What Is Malicious Mother Syndrome?

Divorce and custody proceedings are often high-stress, contentious events that can cause extreme behavior on the part of those involved. Some cases have resulted in situations tied to what is often called “Malicious Mother Syndrome” or “Malicious Parent Syndrome.” This syndrome was first theorized by Dr. Ira Turkat (who is a psychologist) to describe a pattern of abnormal behavior during divorce.

It is important to note that Malicious Mother or Malicious Parent Syndrome is not currently recognized as a mental disorder by the medical profession. Rather, the syndrome describes a type of behavior at issue in some court cases and has lead proponents to call for further study and research.

What Is Malicious Mother Syndrome

When this syndrome occurs, a divorced or divorcing parent seeks to punish the other parent, sometimes going far enough as to harm or deprive their children in order to make the other parent look bad. Though most commonly called Malicious Mother Syndrome, both mothers and fathers can be capable of such actions.

Characteristics of Malicious Parent Syndrome

In his initial discussion of Malicious Mother Syndrome, Dr. Turkat sought to identify and describe a condition where one parent acts purposefully and vengefully towards the other during or following divorce.

Malicious Parent Syndrome is characterized by four major criteria. Someone suffering from the syndrome:

  1. Attempts to punish the divorcing parent though alienating their children from the other parent and involving others or the courts in actions to separate parent and child;
  2. Seeks to deny children visitation and communication with the other parent and involvement in the child’s school or extra-curricular activities;
  3. Lies to their children and others repeatedly and may engage in violations of law;
  4. Doesn’t suffer any other mental disorder which would explain these actions.

Examples of Malicious Parents

The idea of identifying a syndrome or mental disorder to explain the actions of extreme malicious behavior by parents during divorce arose from examples of vindictive parents in clinical and legal cases. Some of these behaviors include burning down the house of an ex-spouse, falsely accusing the other parent of abuse, or purposely interfering with planned parenting time.

In one particular example that could be called an instance of malicious parent syndrome, a mother told her children they could not afford food because their father had wasted all their money. In another, a parent repeatedly misinformed the other parent about school activities, so that the parent could not participate in the child’s school life. In all of these actions, the intent is to harm the other parent.

Psychological Consequences of Malicious Acts

When one parent goes out of his or her way to hurt the other, great strain can be put on both the harmed parent and their relationship with the child. In some cases, a parent who is repeatedly subjected to malicious acts by their ex-spouse may withdraw from their child’s life in order to avoid further conflict. A malicious parent may also successfully manipulate a child, resulting in them disliking and wanting to spend less time with the other parent.

Legal Consequences of Malicious Acts

Many of the behaviors associated with malicious parent syndrome can have legal consequences and may constitute civil and criminal law violations.

Some actions related to Malicious Parent Syndrome can be easily understood as criminal acts, such as attacking the other parent or damaging their property. Depriving children of food or money, in order to make the other parent look bad, could constitute a form of child abuse, which can violate both family and criminal laws. Similarly, should a malicious parent lie under oath, he or she may be charged with the crime of perjury.

Other acts related to Malicious Parent Syndrome may be violations of civil law. For example, denying a parent their court-ordered visitation rights can constitute illegal parent time interference and can result in fines, court-ordered counseling, and adjustments to custody and visitation plans. Lying about the acts of the other parent in a way which harms his or her reputation and results in actual injury can constitute defamation.

Malicious behavior by a parent can also impact parenting plans and custody arrangements. If a parent has been involved in alienating, cruel or illegal behavior, this conduct can be considered a factor in any proceeding to gain or adjust custody.

If You’ve Been the Victim of a Malicious Parent

If you or your children have been the victim of an ex-spouse’s vengeful behavior which may be a result of Malicious Mother or Malicious Parent Syndrome, you’re not without recourse. You may be able to:

  • have custody and support agreements modified,
  • seek court-ordered counseling for the malicious parent or
  • obtain supervised visitation.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Tuesday, May 15, 2018

Divorce and Estate Planning

Divorce has become an everyday reality in the United States. If you’re planning to get a divorce, you should pay close attention to your short and long-term tax exposure before you divide marital assets. Read on to learn about the effects a divorce can have on your tax liability and estate plans.

Divorce and Estate Planning

Transfer of Assets Between Spouses

The IRS generally doesn’t consider the transfer of assets between divorcing spouses a taxable event. As long as you can demonstrate that divorce was the reason for the asset transfer, you can transfer cash and assets between you and your divorcing spouse tax free.

If you and your spouse have accumulated assets such as mutual funds, stocks, bonds, or artwork, you can be subject to a large capital gains tax bill when you attempt to divide them. For example, when you buy stock shares from your spouse the cost of that stock (for you) has risen. However, you will still be taxed based on the capital gain earned between the time you and your spouse purchased the stock at the original price and when you sell. Meanwhile, your ex-spouse does not need to pay taxes on the money you paid to buy the stock from him or her.

Sale of the Home

For most couples, their home is their most valuable jointly-owned asset. Typically, upon divorce you have three options:

  • Sell the home and split the proceeds immediately.
  • Sell the home and split the proceeds sometime in the future.
  • Allow one spouse to buy out the other’s interest in the property.

You can avoid paying capital gains taxes on the profits from your home sale if you reinvest the home sale proceeds within two years after the sale of your home. The home must be your principal residence, meaning you have lived in the home at least three years out of the last five. Divorced spouses can have a difficult time meeting this requirement when the divorce settlement allows one spouse to remain in the home for more than two years before it is sold. The ex-spouse not residing in the home can lose his or her eligibility to avoid the capital gains tax.

Retirement Funds

Retirement funds can be treated as marital property during a divorce settlement, so you may have to share retirement funds with your spouse. If your spouse has a right to a portion of your retirement funds, you must adhere to the applicable tax laws when you make distributions. You are not allowed to “alienate” or “assign” your qualified pension plan distributions to anyone else.

Qualified Domestic Relations Orders (QDROs)

If you have retirement funds you must share with your spouse upon divorce, it is highly advisable that you obtain a QDRO. A QDRO is a court order detailing the proper procedure for distribution of your retirement benefits in the future. The QDRO allows your benefits plan administrator to proceed with distributions as if you are still married to your ex-spouse, ensuring that neither spouse fails to receive his or her rightful benefits. The QDRO also resolves any issues that may arise if you or your ex-spouse remarry – current and ex-spouses each receive a proportionate share of the plan distributions.

Individual Retirement Accounts (IRAs)

Upon divorce, IRAs are generally considered the sole property of the original owner. However, if you make contributions to your IRA from your earnings during the course of your marriage, your spouse will be entitled to a proportionate amount of IRA assets. The exact distribution amount is subject to state laws.

IRA funds can be transferred tax-free from one spouse to another by a written divorce decree, but if you are the recipient of IRA funds you can be held responsible for a 20 percent federal income tax unless you ask your IRA trustee to roll the transferred funds into your own IRA.

Income Taxes

For married couples, filing separate tax returns is incredibly costly, so if you and your spouse can agree to continue to file jointly until the divorce is final, you will save yourself a lot of money. However, be cautious because if your spouse incurs tax liabilities and penalties, you will be jointly liable.

Dependency Exemption for Children

Unless there’s a court decree stipulating otherwise, the custodial parent is entitled to the dependency exemption. However, the custodial parent can release the exemption by filing IRS Form 8332. Only the custodial parent may take the child care credit, but both parents may able to deduct medical expenses, regardless of custody.

Your Estate Plan

In some states, statutes provide for automatic revocation of any estate plan provisions that mention your former spouse. Be sure to check the applicable laws in your state and make any necessary changes or you may find yourself unintentionally leaving property and assets to your former spouse or call our office for your free consultation.

Free Consultation with Divorce and Estate Planning Lawyer in Utah

If you have a question about divorce law or estate planning and administration in Utah call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Monday, May 14, 2018

How Does Bankruptcy Impact My Credit?

When you’re in debt and trying to decide what action to take, you may be concerned about how to protect your credit score. That’s often one of the last barriers to deciding to file for bankruptcy – so how much does bankruptcy affect your score? The answer may surprise you. Bankruptcy certainly does have an effect on your credit score, but it’s not nearly as bad as you might expect.

How Does Bankruptcy Impact My Credit

Credit Score and Bankruptcy

Each of the three major credit reporting agencies maintains a credit score for every person who uses credit. These scores run from 300 up to 850. All three scores are based on the FICO score system. “FICO” is an abbreviation of “Fair, Isaac and Co.,” the California company that invented the system. That is why you will sometimes see the credit score referred to as a FICO score.

This post will consider three possible actions and their effect on your credit score: filing bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code, debt consolidation, and debt settlement.

Chapter 7 and Chapter 13 Bankruptcy

Both Chapter 7 and Chapter 13 are common forms of consumer bankruptcy. Under Chapter 7, the debtor generally does not pay anything bank to his or her creditors. Under Chapter 13 the debtor pays some or all of the debts back; Chapter 13 filers can pay anywhere from 1 percent up to and including 100 percent of the debts. The amount being paid back depends of the debtor’s income and other factors. Because most Chapter 7 filers pay nothing to creditors, most people prefer to file under Chapter 7. However, not everyone qualifies for Chapter 7 protection. If your income is above a certain level, you may be required to file under Chapter 13 and pay something back.

Both Chapter 7 and Chapter 13 are going to affect your credit score in similar ways. Most filers end up with a score in the mid-500s. Higher starting scores take a bigger hit than lower ones. For example, a high credit score of 780 will probably go down to around 540, a drop of 240 points. A lower score, such as 680, will go down to around 530, a drop of only 150 points. In any case, most people land in that mid-500 range. Before you write off bankruptcy as an option because of the effect on your credit, consider that your score already takes a hit whenever you miss a payment. Most people considering bankruptcy already have lower scores.

After bankruptcy, you can immediately start to rebuild your credit. You may want to take out a secured credit card or a store credit card (these are easier to get than standard credit cards) and use them regularly to make small purchases. Pay off your account in full, on time, every month. Your credit will build up quickly. However, keep in mind that a bankruptcy will remain on your credit report for 7-10 years, so lenders and other financial institutions will take it into account when extending you credit.

Debt Consolidation or Bankruptcy

When you consolidate your debts, you lump them all together so that you only have to make one manageable payment every month. Unlike in bankruptcy, you’re going to pay all your debts back. In typical debt consolidation arrangements, a debt consolidation company will intercede for you with your creditors and arrange for a manageable payment for you to make each month on your debt. You’ll make your payment to the debt consolidation company and they’ll send the appropriate portions along to your creditors. Debt consolidation plans may be useful when you fell behind because of a crisis and can’t get back on track because the creditors demand that you make up the missed payments all at once.

These plan only work if you have enough income to pay all of your debts back. It will take several years to complete the plan, during which time you will have no use of your credit cards. This type of arrangement will affect your credit score because you technically won’t be in compliance with your obligations to the creditors. After you finish the struggle to pay off your debts, the effects will stick with your credit score for years to come.

Debt consolidation usually has a more severe effect on your credit than bankruptcy, especially in the long term. With bankruptcy, you can start rebuilding your score right away. With debt consolidation, your score is going to stay low for a long time.

Debt Settlement instead of Bankruptcy

Debt settlement is sort of like a middle road between bankruptcy and debt consolidation. You won’t get all the legal protections and rights of bankruptcy, but you won’t have to pay off all of your debt. In a standard debt settlement situation, you make a monthly payment to a debt settlement company. That company puts your money in a separate account, sometimes called a “war chest.” That money will stay in that account, building up every month. When your war chest is big enough, the debt settlement company will write to your creditors. In that letter, the debt settlement company usually informs creditors that it’s handling your debts and that you’re willing to pay off those debts, but only with a steep discount. The debt settlement company will usually aim for payment of 30-40% of the total debt.

The creditors will not quickly agree to such terms, but as time goes by, some may eventually agree to take 50 percent or less, forgiving you of the remainder of the amount due. The debt is then settled and you owe that creditor no more. The debt settlement company has to try and do this with each of your creditors, and it can take many months or even a couple of years.

Remember that creditors are not under any legal obligation to work with the debt settlement company or settle your debt. Some creditors will absolutely refuse to work out such settlements and will continue collection activity, including eventually suing you. There are also scam debt settlement companies preying on debtors; they’ll charge you big fees and take your war chest payments and then disappear, leaving you far worse off than you were before.

Debt settlement is not only difficult to pull off, it’s extremely hard on your credit score. You’re paying into your war chest every month rather than making payments on your debt, meaning that your credit score is taking continual hits because your file shows missed payments every month. If your debt settlement attempt fails, you’re stuck with an even lower credit score than before. If your attempt succeeds, your credit report will show that you paid those debts for less than full value. That has a serious impact on your credit score because it’s treated as if you didn’t pay at all.

Bankruptcy and Your Credit

If you’re struggling with debt and considering your options, don’t avoid bankruptcy because you’re afraid of its effect on your credit score. Once you start missing payments, your score is already suffering. The sooner you get help with your debt, the sooner you can start to rebuild your score. In many cases, bankruptcy is actually easier on your score than debt consolidation, which takes years during which your credit will continue to drop, or debt settlement, which will knock down your score without any sort of guarantee that your debt will actually be settled. Bankruptcy exists to help you get your financial life back on track with the protection of the law. Before you make any decisions about how to deal with your debt, speak to an experienced debt counselor or bankruptcy attorney about your financial situation. They’ll help you determine the best option given your situation and your financial goals.

Free Consultation with a Utah Bankruptcy and Credit Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in for your free initial consultation today.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Custody Problems

Custody Problems

Sometimes, a marriage or relationship ends badly. If children are involved, however, the former spouses must still communicate and cooperate to some degree, but child custody arrangements don’t always go according to plan. Custodial interference by a parent is one of the major problems that may arise after divorce or breakup, or in some non-divorce situations involving children. Here you will find tips on what to do if the other parent doesn’t fulfill his or her obligations under your parenting agreement or violates a court order related to custody or visitation. This section also includes information on out-of-state moves in child custody situations, parental abduction, and more.

Interference with Custody or Visitation

One of the biggest child custody problems is interference. This occurs when one or both of the parents intentionally disobeys the visitation schedule, fails to take custody of the children at the agreed-upon dates, or otherwise fails to live up to the parenting agreement. Sometimes this is done in order to retaliate against the other parent or simply to extend (or limit) one’s time with the children. Since a parenting agreement carries the force of law as a court order, failure to follow its directions can lead to criminal sanctions.

Interference can happen with custody or visitation, by the custodial or noncustodial parent. But not all interference is considered a violation of the court order. For example, protecting a child from danger; being late because of bad road conditions or other such circumstances; or honoring previous agreements that deviate from the parenting plan (such as a summer trip) are generally okay.

Types of Custodial Interference

There are countless examples of custodial interference, but here are some of the more common ways in which it may occur:

  • Refusing to hand off child to the other parent for a scheduled visitation
  • Limiting child’s telephone or online contact with the other parent
  • Intentionally failing to return the child at the predetermined time
  • Visiting the child during the other parent’s scheduled time with the child

Child Custody and Relocation

It’s sometimes necessary for one or both parents to move out of the area after a divorce, often for work or for more affordable housing, but this presents a problem for child custody arrangements. Relocation is okay as long as the parents have signed a relocation agreement and subsequent change in the parenting plan. But if there is a dispute over the move, the court may step in decide whether the relocation is in the best interests of the child.

Often, the original child custody arrangement and parenting plan will stipulate whether relocation is allowed. Some states require the custodial parent to provide advance written notice of an intended move to the noncustodial parent. States have different ways of determining whether relocation is appropriate in child custody cases and the terms for doing so; talk to an attorney for more details.

Virtual Visitation

Actual, physical time spent with parents cannot be replaced. But family courts are increasingly offering “virtual visitation” as the next-best thing under certain circumstances. A virtual visitation is one that uses video conferencing (such as Skype) or other such methods to provide the noncustodial parent and child a chance to connect. In fact, virtual visitation is one way to help children stay connected to noncustodial parents who either live far away, are traveling, or otherwise unable to meet the child in person.

Free Consultation with a Utah Custody Lawyer

If you have a question about child custody question or if you need help with custodial interference, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Sunday, May 13, 2018

Parental Liability

Parental liability is the term used to refer to a parent’s obligation to pay for damage caused by negligent, intentional, or criminal acts committed by the parent’s child. Parental liability usually ends when the child reaches the age of majority and doesn’t begin until the child reaches 8 to 10 years old. Today, most states have laws relating to parental liability in various applications.

Parental Liability

Children’s offenses can be civil or criminal in nature. Civil cases are lawsuits brought by a person for money damages. Criminal cases, on the other hand, are brought by the government for violations of criminal law. Many acts can trigger both civil and criminal legal repercussions.

Civil Parental Liability

In most states, parents are responsible for all malicious or willful property damage done by their children. This is called civil parental liability because it’s non-criminal. The parent is obligated only to financially compensate the party harmed by his or her child’s actions.

Laws vary by state regarding the monetary limits on damages that can be collected, the age limits of the child, and the inclusion of personal injury in the tort claim. Hawaii’s parental liability law remains one of the most broadly applied as it doesn’t limit the financial recovery and imposes liability for both negligent and intentional torts by the minor child.

Criminal Parental Liability

Laws making parents criminally responsible for the delinquent acts of their children followed the civil liability statutes. In 1903, Colorado was the first state to enact a law against “contributing to the delinquency of a minor.” At least 42 other states and DC now have laws against contributing to the delinquency of a minor.

Other examples of criminal liability include firearm access and Internet crime related laws. Twenty-eight states and DC have child firearm access prevention laws that, generally, make it illegal for a parent to leave a firearm within reach of his or her child. Modernly, in some Internet access and computer hacking laws cases, a parent can be responsible for their child’s online crimes.

Minors and the Law

Parental liability only applies to your minor or underage children. The age of majority is the age at which a minor, in the eyes of the state law, becomes an adult. This age is 18 in most states. In a few other states, the age of majority is 19 or 21. You may want to check your state’s legal age of majority laws.

A minor is considered a resident of the same state as the minor’s custodial parent or guardian. If your minor child spends time with two parents in two different states, each parent is responsible for the child’s actions while in their care.

Insurance Coverage

Since homeowners or renters insurance includes both property and liability coverage, wrongful acts of children or negligent supervision claims may be covered even if the act took place away from a policyholder’s home. These policies typically cover legal liability in the event that anyone suffers an injury while on the insured property, even if the injury was committed by another household member or the result of negligence on the part of the policyholder.

Free Consultation with a Family Law Lawyer

If you have a question about parental liability in Utah, divorce, custody or other family law matters, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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