The Law Offices of William T. PeckhamAustin Real Estate Law Attorney | Bankruptcy Law2023-11-24T06:45:03Zhttps://www.peckhamlawaustin.com/feed/atom/WordPress/wp-content/uploads/sites/1402786/2020/01/apple-touch-icon-75x75.pngOn Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=484002023-11-21T06:45:19Z2023-11-24T06:45:03ZCourt approval
With a probate sale, you need approval from multiple parties, most notably the judge who oversees the probate case. After submitting an offer, you must wait for a particular court date, usually 30 to 45 days away. At that time, the court will hold an auction, and the highest bidder will end up with the property.
Due to court involvement, you probably cannot make the purchase contingent on selling your current home or securing financing. Also, backing out if you disagree with the home inspection results is likely impossible since probate sales are nearly always as-is.
Family input
As part of a probate sale, the executor must notify the family members of the decedent about the proposed sale price and terms. This provides the relatives with a chance to comment on these terms so they may express approval or concerns. Depending on their remarks, a judge might decide not to accept your offer.
Executor decisions
Additionally, the estate executor can accept a higher offer even if you held the original winning bid. The executor has a duty to maximize the financial outcome for the estate, not necessarily honor the first adequate bid. Another buyer could submit a larger offer that the executor accepts instead. You may need to increase your bid to secure the property.
A survey by the National Association of Realtors found that probate houses generally sell within 12 months, so you should act on a probate property as soon as possible if one catches your eye. Probate sales are not for everyone, but knowing what to expect will help you navigate the process if a probate house matches your goals.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=483982023-10-24T15:16:47Z2023-10-24T15:16:47ZCredit counseling
Before starting the bankruptcy filing process for Chapter 7 or Chapter 13, you must work with a nonprofit credit counseling agency to go through credit counseling and education. The counselor will go over your current debts, income and expenses while helping you figure out other potential options besides bankruptcy that could work for you. They may provide you with an informal repayment plan and tips to manage your debt better or confirm that no feasible options exist other than bankruptcy.
You must complete the course at most 180 days before you file for bankruptcy. When you finish the counseling, you will receive a completion certificate. Upon completing the bankruptcy filing, you will need this certificate to prove that you have completed the counseling before the court can approve a discharge of your debts.
Debtor education
After filing for personal bankruptcy, you must complete a debtor education course designed to help you understand how to manage your money and make more informed financial decisions in the future. The course teaches such skills as creating a budget, rebuilding credit and ways to manage debt so that you can have a fresh start on your financial journey after bankruptcy. You must complete the course to get a bankruptcy certificate and prove that you completed the coursework so that you can move forward with your personal bankruptcy filing.
Who issues bankruptcy certificates?
Only approved providers issue bankruptcy certificates. In most states, you can obtain valid certificates by completing credit counseling and debtor education courses through agencies approved by the U.S. Trustee Program. Individuals residing in Alabama and North Carolina must choose services approved by their state's bankruptcy administrator. If you file a joint bankruptcy with a partner, you can complete the courses together but both of you will receive individual certificates for your completed counseling and coursework.
Some providers may file the certificates of completion with the bankruptcy court on your behalf, while others may provide the certificates to you for filing with the court.
Filing for bankruptcy can be an emotional and challenging decision. However, it can also relieve individuals from overwhelming debt and create a fresh start for a better financial future.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=483942023-08-29T13:33:22Z2023-08-29T13:33:22ZDispute causes
To minimize or resolve conflicts, it is essential to understand and identify the factors that underlie construction disputes. Issues often come up with contracts, behaviors and uncertainty regarding the project. Recognizing these primary triggers helps formulate effective strategies to anticipate and resolve disputes quickly to keep the work moving forward.
Common dispute topics
Construction projects are structured in ways that can lead to a variety of disputes. These types of projects involve many phases and details, and knowing the typical conflicts can help you take proactive measures to prevent disputes before they happen.
Disputes often occur regarding project delays, changes in finish dates or errors in design. Additionally, arguments may arise over the quality of materials used, conflicting goals and timelines among subcontractors and overall project complexities.
Resolution methods
Various resolution methods have worked to get past disagreements. Parties often start with negotiations as an initial step to reaching a workable agreement. If this step fails, parties can turn to the mediation process, where a neutral third party works with both sides to facilitate a resolution. Many contractors prefer arbitration, which involves a neutral third party but produces a binding decision. In some scenarios, litigation may become necessary, but this is the most expensive and time-consuming resolution.
Preventing disputes
It is easier to prevent disputes than try to resolve them after they arise. Some prevention methods include open communication throughout the project, clear payment terms and milestones, and detailed, meticulous record-keeping. Additionally, understanding the contract terms and adhering to them helps both parties prevent issues.
Construction disputes are common, but you can manage them effectively with communication, clarity and a proactive approach. Understanding and minimizing disputes can maintain project momentum and protect your rights throughout construction.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481882023-06-15T04:47:59Z2023-06-21T04:47:04ZThe purpose of a mechanic’s lien
A mechanic’s lien protects subcontractors and suppliers who have provided work or materials to improve your property. The liens give them a legal way to seek payment if the general contractor has not paid them. Since you own the property, they can hold you directly responsible for payment, even if you have already paid the general contractor for the work or materials.
The lien process
As your jurisdiction's real estate laws define, subcontractors and suppliers must follow a specific process to obtain a mechanic’s lien. Steps can include giving the homeowner notice within a specific timeframe and filing a “claim of mechanic’s lien” with the county office for your property.
Reduce the risk of a mechanic’s lien
You can mitigate the risk of liens by paying your contractor with joint checks. By making the check payable to both your general contractor and the supplier or subcontractor, you can ensure that each relevant party endorses your check before the bank pays them.
You can also include a lien waiver provision in the contract for your construction project. The waiver will relieve you from the obligation to pay subcontractors and suppliers directly, making the general contractor responsible for paying them.
As a last option, you can pay your subcontractors and suppliers directly and deduct the amounts from payments to your general contractor. However, this approach comes with other risks, such as the Internal Revenue Service (IRS) deciding that you are the employer. You would then have a requirement to withhold payroll taxes and other employee-related obligations, which makes this a much less preferable option.
Keep good records and monitor payments
Keep detailed documentation of all your receipts and other paperwork from the general contractor, subcontractors and suppliers. Consider following up directly with subcontractors and suppliers before the project draws close to ensure they have received payment. You can also request a waiver from each to provide assurance of their paid status and protect against potential mechanic’s liens.
You can protect your property by understanding mechanic’s liens and proactively avoiding them. You can also keep your financial rights intact and minimize the risk of financial complications that could interfere with your construction or remodeling project.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481852023-04-06T09:51:52Z2023-04-11T09:51:17ZObtaining credit reports
The first thing you should do if you want to remove errors from your credit report is obtain the information from the three credit reporting agencies. Experian, Equifax and TransUnion will all send you a copy of your report for free, or you could visit annualcreditreport.com and order all three at once. This is the only website authorized by the federal government to provide all three credit reports, so you should not go anywhere else. Once you have obtained your credit reports, you should check them thoroughly for any mistakes.
Disputing errors on credit reports
Each credit bureau has a dispute page on its website that allows consumers to challenge errors. You can also contact them by phone or by mail. You should bear in mind that only mistakes will be removed, and the credit bureaus will only remove them when they are presented with documents that show a mistake was made. Avoid dealing with companies that offer to remove negative items from credit reports even if they are accurate because this is a notorious scam. If your credit reports contain negative items and no mistakes were made, filing for bankruptcy could give you the chance to put your financial past behind you and make a fresh start.
Bankruptcy and credit
A personal bankruptcy will remain on a credit report for several years, but it may actually increase the borrower’s score. This is because a bankruptcy closes delinquent accounts, which can improve a borrower’s income-to-debt ratio. Bankruptcy also provides a starting point from which credit can be rebuilt when repair is not an option.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481822023-02-28T15:07:38Z2023-02-24T08:41:56ZCommercial lease mediation
When disputes are settled by a jury, only one party leaves the courtroom happy. This is because court proceedings are adversarial in nature, but mediation is different. A judge maintains order in the courtroom and ensures that attorneys follow the law, but they leave the final decision up to the jury. Mediators have a different role. They focus on bringing disputing parties together, encouraging cooperation and finding common ground.
Advantages of mediation
Mediation clauses are usually included in business leases to avoid the costs of commercial real estate lawsuits, but that is not the only benefit they provide. Mediation sessions take place behind closed doors, which encourages frank and open communication and helps disputing parties to find creative solutions to complex problems. This nurtures empathy and understanding, which can strengthen relationships that once appeared irreparably damaged. Parties that emerge from mediation often have renewed respect for one another, which could be enough to prevent disagreements from turning into disputes in the future.
Avoiding disputes
Mediation offers commercial landlords and their tenants a faster, less expensive and private alternative to litigation. Lawsuits can take months or years to resolve, but mediation sessions rarely last for more than a few hours even when the matters being discussed are complex. While mediation has many advantages, it does not offer as many benefits as avoiding commercial lease disputes in the first place. To reduce the chances of becoming involved in such a dispute, landlords and commercial tenants should consider the future before they enter into agreements. Landlords should draft leases that are basically fair, and commercial tenants should not sign lease agreements until they understand the implications of all of their provisions.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481672022-12-07T09:23:36Z2022-12-12T19:32:13ZWhat is a mechanic's lien?
A mechanic's lien is a legal tool that can help contractors, subcontractors and suppliers get the payment they're owed for work completed on real estate projects. It is essentially a security interest in real estate. This allows them to collect their payment from the real property owner or their lender if there is no other way to receive compensation. This prevents prolonged and costly real estate disputes.
How does a mechanic's lien work?
A mechanic's lien gets filed in the real property records of the county where the real estate project got completed. This puts all parties connected to the real estate on notice that someone else has an interest in the property until payment is made. If payment is not made, then a real estate foreclosure action may get filed, allowing the lien-holder to collect their payment.
What if a mechanic's lien is not properly filed?
If a mechanic's lien is not properly filed in the real property records of the county where the real estate project got completed, then it will not be effective. It is important to make sure the lien is properly filed and all required paperwork gets completed in order for it to be valid.
What happens when a mechanic's lien is satisfied?
Once payment is made in full, the real property owner or their lender can file a release of mechanic's lien with the real property records office. This will release the real estate from the mechanic's lien and allow the real property owner or their lender to move forward with any real estate transactions. Lastly, if there is a dispute over the amount owed, then a court order may be necessary to settle the matter.
So, whether you are a real estate contractor, subcontractor or supplier, it is important to understand how a mechanic's lien works. Knowing how and when to use this legal tool can help ensure that you get your fair compensation.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481632022-10-10T06:59:16Z2022-10-13T06:58:31ZUnderstanding real estate purchase and sale agreement
A real estate purchase and sale agreement is a legally binding contract between a buyer and seller that outlines the terms of a transaction. They are usually prepared by the seller's agent or attorney and countersigned by the buyer.
The agreement covers all the major terms of the deal, such as purchase price, earnest money deposit, financing contingencies, inspections, seller disclosures, closing date and more. It's essential for both the buyer and seller to review the agreement carefully before signing to make sure they understand and accept all the terms.
How the contract works
In Texas, real estate purchase and sale agreements are typically "as-is" contracts, meaning the property is sold in its current condition with no warranties from the seller. This is different from many other states, where sellers must provide disclosures about the property's condition and any known defects.
As-is contracts can be beneficial to both buyers and sellers. For buyers, it means they can do their due diligence on the property before signing the contract and know for sure what they're getting into. For sellers, it protects them from having to make repairs or offer compensation after the transaction if problems are found later on.
It's important to keep in mind that an as-is contract does not relieve a seller of their duty to disclose known defects. If the seller is aware of any problems with the property, they must disclose them to the buyer before entering into a contract.
Before signing the agreement, it may be helpful to ensure you understand all the contract terms and that you agree to them. If there's anything you're not sure about, have your agent or attorney explain it to you. Also, pay attention to the contingencies in the contract, as these can impact your ability to back out or get your earnest money deposit back if something goes wrong. Lastly, get everything in writing. If the seller verbally agrees to make repairs or offer compensation, be sure to have it added to the contract before you sign.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=481592022-08-17T10:24:08Z2022-08-22T10:23:52ZImmediately after filing for bankruptcy
The moment you legally file for bankruptcy in Texas, your creditors will stop all collection attempts. This includes wage garnishments, lawsuits, and any other type of harassing contact. This is because the bankruptcy court will place an "automatic stay" on your debts, giving you temporary protection from creditors while your bankruptcy case is pending.
The bankruptcy court will then assign a trustee to your case. The trustee's job is to administer your estate and ensure that your creditors are paid as much as possible. You will also have to attend a 341 meeting, where your creditors can ask you questions about your bankruptcy petition and asset list.
After that meeting, the court will require you to partake in a credit counseling course to learn more about money management and the steps you can take after bankruptcy to avoid getting into debt again. It takes around 60 days, and you'll get a certificate of completion that you must file with the court.
After your bankruptcy case is closed
Once your case is closed, the court will wipe some of your dischargeable debts, including credit card debt, medical bills, personal loans, and most types of unsecured debt. But, there are debts that you must pay regardless of your circumstances. They include student loans, child support, alimony, and most taxes.
Your credit score
The main reason bankruptcy gets a bad rap in Texas is because of the negative impact that it has on credit scores. It also stays on your record for up to 10 years. This could make it challenging to get approved for a loan, credit card, or apartment. However, you can rebuild it again by making on-time payments, keeping balances low, and using credit responsibly. Over time, you may be able to qualify for new lines of credit and improve your financial standing.
Filing for bankruptcy can give you a fresh start and help you get back on your feet financially. But, you may need to weigh its pros and cons before filing.]]>On Behalf of The Law Offices of William T. Peckhamhttps://www.peckhamlawaustin.com/?p=480662022-07-22T19:09:33Z2022-07-27T13:54:35ZWhat happens when you don't leave a will
Business law provides for a number of scenarios to play out when the owner of a company dies. If you are operating under the guise of a sole proprietor, the business will generally cease to exist when you do. If you were part of an LLC, your share will usually now be represented by your estate.
But if you do not leave a will, the future of your heirs can be thrown into confusion. If there is no authoritative document, the remaining assets related to your ownership of the company will usually be distributed according to state law. This is a situation that can lead to a lot of financial and legal discord.
Leaving a will helps avoid future issues
Drawing up a will is one of the best things that a business owner can do to protect the financial future of their heirs. This is a document by which you can help them quickly resolve such issues as ownership, responsibility for debt, and many others. It's the master plan that you leave behind for your heirs to prosper under.
If you are unable to leave clear instructions to your remaining partners regarding the distribution of your assets, the state will step in to do it. It's better to draw up a plan where your heirs can elect to be part of the business going forward. If they choose not to, they can then be bought out at a profit.
Additionally, not having a will would likely cost you thousands in the probate process.
With a will, you have the power to have a say in how the company goes forward after you pass. Without one, you leave your heirs struggling to make hard decisions that they may end up regretting.]]>