Most Americans have some form of debt. This may include credit card debts, auto loans, the mortgage on a home, or other amounts owed to a creditor. For those who are able to make ongoing payments, debts can be troublesome but manageable. However, families who experience financial difficulties may end up with too much debt to handle, and this can lead to ongoing issues such as harassment from creditors, a lower credit score, or the foreclosure of a home. Fortunately, bankruptcy can provide relief for people who are in these situations, and it may allow for the elimination of certain debts. Debtors will need to understand what types of debts can and cannot be discharged.

Non-Dischargeable Debts

Depending on a family’s financial situation and the assets they own, Chapter 7 bankruptcy may allow for the discharge of most debts after certain assets are liquidated, or Chapter 13 bankruptcy may allow debts to be consolidated into a repayment plan, with any remaining debts being discharged after the plan has been completed. However, even after completing the bankruptcy process, a debtor may be required to repay certain debts, including:

• Student loans - Most of the time, student loans provided through a government lender such as Sallie Mae, as well as private student loans that are backed by the federal government, cannot be discharged through bankruptcy. In some cases, a person may be able to have these loans eliminated by showing that repaying them would cause undue hardship, but few people are able to meet this requirement. Those who are unable to make student loan payments may be able to negotiate affordable repayment plans with creditors.

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In today’s “gig economy,” more and more companies are working with independent contractors. This can provide a number of benefits, including allowing employers to meet certain types of temporary needs and offering workers the flexibility to decide when and how they will complete work. However, business owners should be aware of legal issues that may affect them when they use independent contractors, and by working with a business law attorney, they can protect themselves from liability and ensure they are meeting all of their legal requirements.

Classification of Workers as Employees or Independent Contractors

Employees are guaranteed certain rights that may not be available to independent contractors. These include the right to receive minimum wage and overtime pay, eligibility for workers’ compensation and unemployment benefits, and the ability to receive benefits through their employer. A business may prefer to use independent contractors for certain types of work in order to cut down on costs, but misclassifying workers as independent contractors when they should be considered employees can lead to a variety of legal issues.

In the state of Florida, a set of “common-law rules” are used to determine a worker’s classification. These rules look at:

If you have experienced financial difficulties and are struggling to pay the debts you owe while also covering your ongoing bills and expenses, it may seem like there is no end in sight to this situation. Extensive debts can be especially problematic if you are a homeowner, and if you have gotten behind on your mortgage payments, you may be facing the foreclosure of your home. However, it is important to understand that you have options that may allow you to avoid the loss of your home, including filing for bankruptcy. For many homeowners, Chapter 13 bankruptcy is the best option for debt relief, and by understanding how this process works, they can ensure that they will be able to continue to own their home.

Addressing Mortgage Payments and Other Debts in a Chapter 13 Bankruptcy

One of the key things to note about bankruptcy is that when a debtor files a bankruptcy petition, this will create an automatic stay that will require creditors to cease all collection activities. If a lender has initiated the foreclosure process, the automatic stay will put a stop to these actions, ensuring that a homeowner will not be forced out of their home. This can create “breathing room” for a debtor as they determine how to address their debts.

When a person files for Chapter 13 bankruptcy, they will propose a repayment plan in which they will pay off some of the debts they owe. This plan will last between three and five years, and once it is completed, any remaining unsecured debts that were included in the plan will be discharged, and the debtor will no longer be required to pay the amount owed.

Any homeowner who is facing foreclosure will be understandably worried about the prospect of losing their home. This issue has become a major concern during the COVID-19 crisis since many families have experienced job losses or other financial difficulties that have caused them to struggle to make their ongoing mortgage payments. While a moratorium has been placed on foreclosures for federally-backed loans, many homeowners may still face the potential loss of their homes if they cannot become current on mortgage payments once the moratorium ends. Fortunately, some homeowners may be able to avoid foreclosure by negotiating loan modifications with their lender.

Types of Mortgage Loan Modifications

The foreclosure process can result in financial losses for a lender. To avoid this, lenders are often open to negotiating with borrowers to find solutions that will ensure that they can continue owning their homes and making mortgage payments. The types of loan modifications available to homeowners may include:

• Forbearance - A borrower who is experiencing temporary financial hardship may ask for mortgage payments to be postponed or reduced for a certain amount of time. These payments will eventually need to be paid. In many cases, missed payments will be added to the end of the term of the loan. However, other arrangements may also be made, such as the agreement to temporarily increase the amount a person will pay each month once they resume making payments.
• Interest rate reduction or modifications - Mortgages with adjustable interest rates may sometimes cause financial hardship if the amount of a person’s monthly payments increases. A borrower may be able to convert their loan to a fixed interest rate to ensure that payments will remain at the same amount. A homeowner may also be able to negotiate a reduced interest rate, lowering the amount that they will be required to pay each month.
• Extension of the loan’s term - A re-amortization will allow a homeowner to add more years to the length of their loan. Paying off the same amount over a longer period of time will result in a reduction in the amount of monthly payments, although it will also result in more interest being paid over the full term of the loan.
• Principal reduction - The lender may agree to reduce the total amount owed in a loan, essentially forgiving a portion of the borrower’s debt. This type of modification is fairly rare, and lenders will usually prefer other options that allow them to reduce their potential financial losses.

Contact Our Fort Lauderdale Foreclosure Defense Attorney

If financial difficulties have affected your ability to make mortgage payments, or if you have defaulted on your mortgage, you will want to understand what you can do to avoid foreclosure. Elliot Legal Group can advise you of your options, and we will provide you with representation when negotiating loan modifications. We can also help you determine whether bankruptcy may allow you to avoid the loss of your home. Contact our Broward County foreclosure defense lawyer today by calling 754-332-2101.

When starting a business, there are many decisions to be made and likely a lot on your mind. Many people focus on what they are going to name the business or what their logo is going to look like and do not always think about what type of business structure they are going to use. Even though it is not the most glamorous topic to explore, it can be one of the most important. Your business structure affects the way you report income and claim taxes. For many people, a sole proprietorship is the easiest way to form their business. However, a sole proprietorship is not the right choice for everyone, which is why you should do your research before you make a decision.

Forming a Sole Proprietorship

Many people forming a business tend to lean towards sole proprietorship because it is one of the easiest ways to form a business. In fact, a sole proprietorship is formed without any formal action, unlike with other business structures. If you are the only one who owns the business, you are automatically given the sole proprietorship designation.

Benefits of a Sole Proprietorship

There are many reasons why people choose to operate as a sole proprietorship. The biggest reason is because of how easy and inexpensive it is to form. The only legal costs you obtain with a sole proprietorship are usually the costs of any licenses or permits you must obtain to do business. Another large benefit is having complete control over the company. Since you are the only owner (and many times, the only employee) you can retain power over your business and run it the way you want to. Sole proprietorships are also simple when it comes time to file taxes. Since you and your business are not separate legal entities, your business is not taxed separately from your own income. This means that when you report your profits and losses for the year, they are factored into your personal tax return.

When you or a family member is sick, the only thing on your mind is getting the help that you need to feel better. Unfortunately, in the United States, costs for medical care are exorbitant. Not only do you have to pay monthly premiums for health insurance, but then you are also typically responsible for a portion of the cost of the services you receive, in addition to any co-pays or out-of-pocket costs you may incur, such as prescription medications or other medical supplies. This can leave many people in tens of thousands of dollars in medical debt, which can be extremely difficult to pay for some families, especially on top of any other debts they may already be paying. Filing bankruptcy for medical debts is not uncommon, but there are a few things you should know before you pull the trigger:

• There is actually no such thing as a “medical bankruptcy.” Even though you can discharge medical debt through bankruptcy, there is actually no such thing as a “medical bankruptcy.” To discharge medical debt, you would have to file either a Chapter 7 or a Chapter 3 bankruptcy to have your medical debts discharged. Medical debt is considered unsecured debt, so it would be dealt with in the same way as credit card debt.
• You should explore other options before you file for bankruptcy. When it comes to medical bills, there are also other options to explore before you jump to bankruptcy. If your medical debt is the only thing causing you distress, you may want to consider setting up a payment plan through your provider. Most of the time, medical providers are willing to allow you to make payments if you cannot pay in full.
• Filing for bankruptcy would also discharge other debts. As previously mentioned, medical bankruptcy does not exist, so you would have to choose between a Chapter 7 or Chapter 13 bankruptcy to discharge medical debt. However, when you file bankruptcy, you must include all of your debts, which would then be discharged at the end of the bankruptcy. This means you would no longer be responsible for paying those debts, but it also means that you would have to give up any assets that were not included in Florida’s exemptions.

Our Broward County Bankruptcy Attorney is Here to Help

Bankruptcy can be a breath of relief for many people, especially if they are drowning in debt. However, bankruptcy can also affect areas of your life, which is why you speak with an experienced Ft. Lauderdale, FL bankruptcy lawyer. The Elliot Legal Group has helped a multitude of clients through the bankruptcy process for both Chapter 7 and Chapter 13 bankruptcies. To schedule a consultation to discuss your situation, call our office today at 754-332-2101.

If you are in the business field, you know how important it is to read your documents before you sign them, but many people simply skim the text before signing. In some cases, this may be OK, but when there is a possibility that you could get into trouble because of that document, the stakes can be high. In certain contracts, there are often clauses imposing restrictions on what actions an employee or business can take. These are called restrictive covenants and are a common part of many contracts, especially business and employment contracts. Understanding what these restrictive covenants entail is essential before you sign the document.

Non-Compete Agreements

Most of the time, non-compete agreements are found in employment contracts and sometimes in business sales agreements. If an employee’s contract contains a non-compete section, the employee is typically barred from working in a similar business or line of work after their employment with the business has ended. In these agreements, a period of time during which the agreement is in effect must be specified, as well as a specified radius from the location of the business in which the agreement is in effect.

Non-Solicitation Agreements

If you sign a non-solicitation agreement or a contract that has a non-solicitation clause in it, you may be subject to two different types of restrictions. A non-solicitation clause could include restrictions on recruiting customers or employees from your employer once you are no longer an employee of that business. This means you would not be able to employ any former coworkers or encourage former customers to come to your business if you were to start one.

When you buy your first home, you likely see the rest of your life right in front of you—the family meals you will make in your kitchen, the time you will spend decorating each room, and the memories you will make with your family each year. While you are imagining all of these happy times, the thought of financial difficulties and the possibility of foreclosure is probably the last thing on your mind. Buying and owning a home is exciting, but making mortgage payments during a financial recession can be terrifying. If you are struggling to make ends meet, it is important to understand what the foreclosure process entails so that you can avoid losing your home.

A Florida Foreclosure

The foreclosure process is hardly immediate and you do have options to avoid foreclosure if you take the appropriate steps. If, however, you wait to take action, you can find yourself losing everything. In order to avoid waiting too long and diminishing your home-saving options, it is important to know the timeline and steps of the foreclosure process.

• First month missed payment - Your lender will immediately begin to contact you after you miss your first monthly mortgage payment. This contact will be over the phone or through a letter, explaining that your payment is missing.
• Second month missed payment - After two months have passed, your lender will take more direct action to get in contact with you to ask about why you have been missing your mortgage payments. While you may wish to avoid these phone calls, it is important to take initiative and explain why the payments have been missed. If you show that you are trying to resolve the situation, your lender may be more likely to give some leniency, such as allowing you to provide one month’s payment at the time and create a new payment plan.
• Third month missed payment - Three months of missing payments will result in an official letter from your lender stating the amount that you owe and providing a 30-day deadline to provide the money. Known as a “Demand Letter” or “Notice to Accelerate,” this letter will require a certain amount to be paid, typically the mortgage amount in full, or the lender will begin the foreclosure proceedings. If you promptly respond to this letter, you are likely still able to work something out with your lender, such as paying a minimum or creating a payment plan.
• Fourth month missed payment - At this point, the 30 days will have expired from the Demand Letter or Notice to Accelerate that you received last month. If you have not paid the required amount in full, you will be referred to your lender’s attorneys to begin the foreclosure process. You will also be required to pay these attorney fees as part of the foreclosure.
• Public trustee’s sale - The attorney involved in your foreclosure will schedule a public sale of your property. You will be notified of the date by mail and the sale will be advertised in your local paper. Once you receive this notice, you have until the date of the sale to make payment arrangements with your lender. After this deadline, the foreclosure will be completed and you will be required to move out of your home and find alternative living arrangements.

Contact a Broward County Foreclosure Attorney

Whether you are about to miss your first mortgage payment or have had months pass without paying your mortgage, it is important that you turn to a foreclosure attorney for help. By working with a reputable real estate lawyer, you can determine the most financially beneficial way to save your home. Our firm is dedicated to helping those who are facing financial difficulties come out of foreclosure and get started on the right foot. If foreclosure is on the horizon, contact our Fort Lauderdale real estate lawyer at 754-332-2101 today.

It is no secret that the COVID-19 pandemic left many Americans struggling to make ends meet. Many employees saw pay cuts, a number of workers were furloughed, and some lost their jobs altogether. With economic conditions at an all-time low, many families were battening down the hatches and just trying to get by. Now that the COVID-19 vaccine is circulating the country, with more and more people getting the shot each day, things are beginning to open back up, including Americans’ desire to move on to the next chapter of their lives. For some, this involves buying their first home. Being a first-time homebuyer is an exciting experience -- you begin to imagine your life unfolding in a place that you can call your own. While every home buyer may be looking for something a bit different, it is important that the following questions are considered before finalizing your purchase.

1. How Much Can I Afford? Buying a home is a long-term investment so it is important to budget appropriately for your monthly mortgage payments; after all, they will last for years to come. Begin by looking at your personal finances, such as your income, monthly expenses, and debt payments. Add up your typical monthly expenditures, including food, transportation, utilities, phone bill, insurance premiums, and more. Calculating these costs will help you determine how much you have remaining to dedicate towards your mortgage.
2. How Much Can I Spend on My Down Payment? The more that you spend on your down payment, the less you will need to borrow and pay back later. If you have a larger down payment, you will have smaller monthly payments. It is important to find the down payment level that you can afford without taking up too much of your savings.
3. How Much Will I Owe For Property Taxes? If you are interested in living in a certain area or have a desire to own a significant amount of land, you should first determine how much the property taxes will cost with what you are looking for. First-time homebuyers are often shocked when they realize how much additional money they will need to spend on property taxes. These required costs should be included in your monthly budget calculations.
4. What Do the Closing Costs Include? Aside from your down payment, you will also owe a pretty penny when it comes to closing costs. These will be paid at the close of your real estate transaction and can include your realtor fees, home inspection, title search, appraisal, home warranty, and more. This is another cost on top of the down payment that will need to be paid upfront.
5. What are the Additional Costs of Owning a Home? Unlike a renter, you will be solely responsible for the upkeep and management of your home. This can often come unexpectedly and can take a hit to your wallet from time to time. Be sure to have a thorough inspection completed before purchasing your home. If the inspector notices immediate improvements that need to be made, you may be able to get the previous owner to fix them before purchasing. Additionally, if your new home is a part of a homeowners association (HOA), you will need to pay a monthly fee to the HOA.

Contact a Broward County Real Estate Attorney

Buying your first home can be an overwhelming process without a professional providing you with a step-by-step guide. At Elliot Legal Group, we help first-time homebuyers enter into the purchasing process with the reassurance that the terms of their agreement are feasible in the long term, taking away the stress from the purchase and allowing them to focus on the exciting aspects of being a homeowner. If you are interested in purchasing a home, contact our Fort Lauderdale real estate lawyer at 754-332-2101 today.

As a young business professional or recent business owner, your retirement likely seems years or decades away. Work can quickly become your main priority, especially if you are the owner of a business. Even if you are young and retirement is far in the future, it is important to have legal documents put in place that outlines what will happen with your business if you are no longer in charge. Do you want the business to be sold? Would you like your business passed down to another family member? With the help of a reputable business attorney, you can ensure that your vision for your company is met.

What is a Business Succession Plan?

In order to outline the future of your business, you should build a business succession plan in the early years of your business. A business succession plan is a legal document that guides your company through a change of ownership in the instance that you are unable to continue running things. This may be a result of retirement, death, or disability. Similar to a will, a business succession plan allows you to plan for the unexpected with the comfort of knowing that your business is in good hands. If you are passing your business down to one of your children or other close family members, the succession plan will name this individual as the new owner and list any necessary steps for this transfer of ownership. If a purchase is involved, the plan will include the sale price and purchase terms.

What Should Be Included in My Succession Plan?

Every succession plan is unique to the business’ circumstances. While there is no one-size-fits-all format, every succession plan should outline the following:

If you are struggling financially, you may be wondering whether or not filing for bankruptcy is the right solution for your situation. While you are considering that option, there are steps you can take to help protect your assets from creditors. The following is a brief overview of those steps. For more specific information about your situation, consider speaking with a Fort Lauderdale bankruptcy attorney from Elliot Legal Group.

Bank Accounts and Credit Cards

Many of our clients find that debt can be a vicious cycle. Borrowing money creates debt and then situations arise that force people to have to borrow more money to try to get ahead of the debt. The more you borrow (or charge on credit cards), the worse your financial situation gets, and creditors are now calling on a weekly basis looking for their money.

If you are at the point where you are seriously thinking about bankruptcy, you want to stop borrowing money, whether through lines of credit or credit cards. Do not purchase any large ticket items – such as a car or jewelry – or otherwise try to run up credit cards any more than they are right now.

While it is true that bankruptcy may not be for everyone, the two types of consumer bankruptcy do allow for plenty of options within them. People who cannot afford a payment plan for a Chapter 13 bankruptcy are usually afraid to file a Chapter 7 bankruptcy because they worry that foreclosure might result if they own a house. However, depending on your circumstances, you might be able to get the clean slate of a Chapter 7 bankruptcy without losing your home to foreclosure. In Florida, it is possible to keep your house even if you file for a Chapter 7 discharge of all consumer debts. 

Chapter 7 Versus Chapter 13: Keeping Your House

Most bankruptcy attorneys will advise you to file for Chapter 13 bankruptcy if you meet the following criteria:

As a business owner, you are undoubtedly protective of the company that you have built and maintain a certain level of privacy when it comes to your business. Every business is bound to have secrets that only the owner, management, and your business lawyer are privy to. While the inner workings of your company should remain confidential to a certain extent, it is important to avoid being completely insular. Building your network and collaborating with other business owners is a simple way to grow your business and make it more successful. In fact, there are a number of benefits that business collaboration has to offer.

New Inspiration

The best way to discover new ideas is by seeing how other successful businesses are doing things. Ideas can quickly come to a standstill in a workplace that never looks outside of its current way of doing business. While maintaining a routine is important in any workplace, never straying from this routine can make you miss out on new opportunities, techniques, or tools that can help you be more efficient both in time and money. Seeing how other businesses use certain techniques can also act as a “test drive” before you take on this new strategy.

Years ago when you and your partner started your business, you were likely both on the same page. Perhaps you are family, best friends, or simply co-workers who came up with a brilliant business idea together. Whatever your outside relationship may be, when it comes to running a business, you must maintain a sense of professionalism, especially when arguments arise. Rarely do business partners agree on every decision being made, but some disagreements can become more contentious than others. There are four ways in which you and your business partner can settle a dispute, some of which can be done on your own while others require outside help.

1. Referring to Your Management Agreement

Those going into business together should always plan for future disagreements that are inevitable when it comes to business partnerships. It is impossible for you and your partner to completely agree on every detail of your work, which is why business partners are advised to create a management agreement before going into business together. If you have both been in business together for years, you likely created a management agreement and may not remember the exact details. Before taking steps forward, refer to your management agreement to see how you and your partner should be handling things. Perhaps you included a clause that required you to go to mediation or maybe one partner has veto power over the other. If you have a management agreement, this should be your first place to turn. If you do not have one, you can choose any of the following options.

If you have recently had a change in your financial circumstances--perhaps you lost your job, received a pay cut, or have taken on additional costs--the mortgage that has been affordable over the past decade may no longer be feasible. You may be concerned that because your mortgage exceeds your income, you will soon be on the path to losing your home. Without taking any additional action, foreclosure could soon be on the horizon. However, there are a number of actions that you can take before getting to this point, including refinancing your home.

What Is Refinancing?

Refinancing your home means replacing your current home loan with a new one. There are a number of benefits that refinancing has to offer, such as reducing your interest rate, cutting monthly payments, or tapping into your home’s equity when needed. Refinancing can also allow you to pay off your loan quicker or switch from an adjustable-rate to a fixed-rate loan. Refinancing your home may seem like the perfect solution to your financial difficulties; however, there are certain requirements that must be met in order to qualify.

Starting a business is an exciting endeavor. You have likely spent years considering a business idea in your head and are finally in the process of getting things off the ground. Having a good business idea is only the first step in creating a successful company. While this may be the foundation of your work, there are other things that are required during these initial stages. One of the most important aspects of building a business is choosing the right legal structure, also known as a business entity. This single decision impacts how your business will be run moving forward. But how do you know the difference between your options and determine which is the right one for you?

Choosing a Business Entity

There are four types of business entities that one can choose from: sole proprietorship, partnership, corporation, and limited liability company (LLC). It is best to consult with a business attorney to fully understand the differences between these options, but be sure to keep the following considerations in mind when choosing one business entity over another.

Buying a home is likely the most expensive purchase that you will make in your lifetime. The moment you receive your keys may give you a surge of pride, but the path to get there can sometimes give you a headache. Without a professional guiding you through the process, it can quickly become overwhelming and you may feel as if you are paying for unnecessary additions, such as title insurance. This type of insurance incurs a one-time charge included in your closing costs and it protects the lender. But what about owner’s title insurance? Should you spend the extra money for the additional protection in Florida?

What Is Title Insurance?

Before your home closes, your mortgage lender will require a title search, which searches public records for any title defects related to your home. For instance, the title search may bring the following issues to light:

The thought of filing for bankruptcy typically only comes to mind when it is your only option. Rarely do people fully understand what filing for bankruptcy entails and what this financial decision can actually do for you. Filing for bankruptcy is much more common than you think, and contrary to popular belief, it does not leave you financially destitute. Before you make a decision regarding your financial situation, it is important to have a true understanding of what this legal process will do for you and be aware of the common misconceptions associated with bankruptcy.

The Types of Bankruptcy

You have two different options when filing for bankruptcy, known as Chapter 7 and Chapter 13, and depending on your financial situation, you will qualify for one or the other. Chapter 7 bankruptcy is also known as “liquidation bankruptcy” because some of the filer’s assets can be sold to repay their outstanding debts. Once this is complete, the remaining debts will be discharged. This form of bankruptcy is reserved for those who earn less than the median income for the state of Florida. Those above this financial level will file for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, the filer will propose a repayment plan to pay off their debts within a three- to five-year period. It is always advisable to turn to a bankruptcy attorney before beginning the filing process to ensure that you do indeed qualify for that particular chapter.

Most business owners may hold off on hiring a business attorney until they have a legal problem arise. This is especially true for small business owners. When starting your business, it can be easy to get caught up in all of the decisions that need to be made. As your business grows, the busyness of your daily workday can keep you from taking the time to find an attorney, and before you know it, you have a legal problem arise with no one at your disposal to help you navigate the legal process. Whether you are in the early stages of starting a business or have yet to hire general counsel, there is no time like the present to get your business on solid footing by finding the right attorney for you.

1. Understand Why You Need an Attorney

Understanding why you need a business attorney, either now or in the future, is an important first step in selecting the right lawyer. Startups and small businesses may need a business attorney for a number of reasons including choosing a business entity, raising money through venture capital and selling equity to investors, drafting founder agreements, reviewing contracts, and handling employment issues. These issues can pop up at any time so it is important to have an attorney on hand before the problems arise.

Running a small business and running a large business are two separate beasts. Some may think that managing a small company is a much easier endeavor, and in some ways it is, but it is important that your business upholds a certain standard of professionalism regardless of its size. Small business owners often have a more personal relationship with their employees since they work in closer proximity to all of their hired employees. While this can create a more comfortable, personalized work environment, it can also blur the lines between professional relationships and friendships. In order to avoid this gray area, you should consider creating employment contracts to ensure that both you and your employees are maintaining your duties within your position.

What Should Employment Contracts Include?

If you are considering creating an employment contract, it is a good idea to work with a business lawyer who can help you outline the details and contingencies. Employment contracts are unique to your business circumstances, though they typically include the following information: