A Chapter 13 bankruptcy is usually used by those who either do not pass the Means Test due to
their income or have additional non-exempt assets that they would lose in a Chapter 7 bankruptcy.
In a Chapter 13 bankruptcy we are able to tackle bigger financial burdens such a tax debt,
foreclosures, and business debts. A plan is created specifically based on your income, expenses,
assets, debts and ability to pay each month. These plan payments are managed by your bankruptcy
trustee for a period lasting no more than 5 years. Chapter 13 bankruptcy is a great tool for those
who have more complex income and assets but still need to seek financial relief.
But is it worth it? This is a tough situation if you and your spouse both have jobs and massive
debt and cannot qualify for Chapter 7 bankruptcy. Although It may be extremely embarrassing to
file for any type of bankruptcy, sometimes it is absolutely necessary. So, when I began to fall in
the deep well of credit card debt, I knew I would need an attorney who could show me what was
going on all the while being understanding and non-judgemental. Basically, I wanted to be as
comfortable as I could when it came to filing for bankruptcy. I think finding the right attorney
was the key to this comfort.
So, how did I find the right attorney, you ask? I read somewhere that the best way to get an
attorney is to ask your friends and family if they know any bankruptcy attorneys. This way, it
would be easier for me to trust the lawyer and feel more comfortable.
My comfort was also strongly dependent on the price and payment plans, as money was my main
reason for being in this situation. I needed an attorney that could be informative, understanding,
and cheap!
I know, I know what you're thinking! "Dream on!" Right? Well, actually I found an attorney I
really trusted and could afford. He helped me out of my jam and now I am slowly paying off my debt
with an affordable monthly fee.
To me it was a big weight off of my shoulders after filing for Chapter 13 bankruptcy. At first it
was scary and embarrassing, but once you get an attorney you are really comfortable with to help
you through this pit fall, it's not so bad!
If you are really considering filing for bankruptcy, just start looking for a law firm and asking
questions. A lot of law firms offer free consultations.
----------------------------------------------------
Andrew Clifford is a long time client of a Chandler Law Firm at http://www.brown-associates.net
and has done extensive research on the differences of Chapter 7 and Chapter 13 bankruptcy.
Posted by Randall Frier
http://leesburgbankruptcyattorney.net/
Sunday, February 9, 2014
Tuesday, February 4, 2014
Mortgage Assumption And What It Really Means
If you are looking for ways to stop foreclosure, one way to solve the issue is by mortgage
assumption. Not all mortgage loans can be assumed, however, but here are a few things to consider
before going through the paperwork.
What Is A Mortgage Assumption?
A mortgage assumption is when someone takes over the payments on the loan, based on the same terms
as the original loan. A loan like this has been transferred from one buyer to the other one. The
new owner will be responsible for making the payment after the mortgage assumption has been
completed.
What Type of Mortgages are Assumable?
As stated earlier, not all mortgage loans are assumable since it depends on the type of loan, the
state laws, and the situation.
For most states if it does not specifically say that the mortgage is assumable or not, it is
typically considered assumable. Many homes do have, what is called, a 'due on sale' clause. A
due on sale clause is something that if a new owner is to have the property through its sale,
then the loan is due when the transactions actually take place. In a case like this, because the
entirety of the loan is repaid, the mortgage cannot be assumed because the new owner is not able
to take over where the last owner left off.
There are exceptions to the "due on sale" clause, depending on who is involved, that allow for a
mortgage assumption even when such a clause is in place. Such exceptions have been mandated by the
federal Garn-St. Germain Depository Institutions Act of 1982. It allows for certain family members
to transfer ownership of the home by mortgage assumption. This includes an ownership transfer
from: parent to child, a dead borrower to a relative, spouse to spouse, and legal separation and
divorce.
It is also up to the discretion of the lender if they want to actually use the due on sale clause.
Sometimes lenders will see the new owner as financially stable, and in cases like this, they will
be willing to transfer the property in hopes of clearing up the debt. If a lender approves a
mortgage assumption it is likely that the new owner will go through the same process that you did
during your qualification process. The lender will verify employment, income, and credit.
What if the Mortgage is for a Distressed Property?
If the property is distressed, lenders will want the new owner to correct the debt and bring the
loan current again. There are strict rules as to how such mortgage assumption is done by the
Federal Home Affordable Modification Program (HAMP) which gives loan providers terms as to how a
home should be transferred.
If the loan was done by a government loan program, such as Fannie Mae, then the lender has to look
at several different options like HAMP, standard modification terms, and a short sale.
Is the Original Buyer Liable?
When the new owner assumes the mortgage and the ownership of the property during mortgage
assumption, they also assume the distressed debt correction and the monthly mortgage payments of
the loan. However, if the new owner also fails to make monthly payments and falls behind as well,
then the lender may have the right to go after the original owner of the loan in order to correct
the debt. Whether the original buyer is held responsible for the new owner's default is dependent
upon the terms of the mortgage assumption and state law.
Summary
If you are thinking of selling your home to a friend or relative to clear the debt, mortgage
assumption can be one of the ways to stop foreclosure.
----------------------------------------------------
Keep in mind even if you are on the verge of a foreclosure you do have options. Most of these
options you probably don't even know are out there. Check out our blog to find out how you can
avoid foreclosure and do so in the fastest time possible.
http://www.homebuyersofcalifornia.com/tag/selling-a-property/
Posted by Randy Frier
http://tallahasseebankruptcyattorney.net/
assumption. Not all mortgage loans can be assumed, however, but here are a few things to consider
before going through the paperwork.
What Is A Mortgage Assumption?
A mortgage assumption is when someone takes over the payments on the loan, based on the same terms
as the original loan. A loan like this has been transferred from one buyer to the other one. The
new owner will be responsible for making the payment after the mortgage assumption has been
completed.
What Type of Mortgages are Assumable?
As stated earlier, not all mortgage loans are assumable since it depends on the type of loan, the
state laws, and the situation.
For most states if it does not specifically say that the mortgage is assumable or not, it is
typically considered assumable. Many homes do have, what is called, a 'due on sale' clause. A
due on sale clause is something that if a new owner is to have the property through its sale,
then the loan is due when the transactions actually take place. In a case like this, because the
entirety of the loan is repaid, the mortgage cannot be assumed because the new owner is not able
to take over where the last owner left off.
There are exceptions to the "due on sale" clause, depending on who is involved, that allow for a
mortgage assumption even when such a clause is in place. Such exceptions have been mandated by the
federal Garn-St. Germain Depository Institutions Act of 1982. It allows for certain family members
to transfer ownership of the home by mortgage assumption. This includes an ownership transfer
from: parent to child, a dead borrower to a relative, spouse to spouse, and legal separation and
divorce.
It is also up to the discretion of the lender if they want to actually use the due on sale clause.
Sometimes lenders will see the new owner as financially stable, and in cases like this, they will
be willing to transfer the property in hopes of clearing up the debt. If a lender approves a
mortgage assumption it is likely that the new owner will go through the same process that you did
during your qualification process. The lender will verify employment, income, and credit.
What if the Mortgage is for a Distressed Property?
If the property is distressed, lenders will want the new owner to correct the debt and bring the
loan current again. There are strict rules as to how such mortgage assumption is done by the
Federal Home Affordable Modification Program (HAMP) which gives loan providers terms as to how a
home should be transferred.
If the loan was done by a government loan program, such as Fannie Mae, then the lender has to look
at several different options like HAMP, standard modification terms, and a short sale.
Is the Original Buyer Liable?
When the new owner assumes the mortgage and the ownership of the property during mortgage
assumption, they also assume the distressed debt correction and the monthly mortgage payments of
the loan. However, if the new owner also fails to make monthly payments and falls behind as well,
then the lender may have the right to go after the original owner of the loan in order to correct
the debt. Whether the original buyer is held responsible for the new owner's default is dependent
upon the terms of the mortgage assumption and state law.
Summary
If you are thinking of selling your home to a friend or relative to clear the debt, mortgage
assumption can be one of the ways to stop foreclosure.
----------------------------------------------------
Keep in mind even if you are on the verge of a foreclosure you do have options. Most of these
options you probably don't even know are out there. Check out our blog to find out how you can
avoid foreclosure and do so in the fastest time possible.
http://www.homebuyersofcalifornia.com/tag/selling-a-property/
Posted by Randy Frier
http://tallahasseebankruptcyattorney.net/
Monday, December 30, 2013
How Does The Foreclosure Process Work?
Foreclosure is the process of a mortgage company taking possession of a property because of a
failure of the mortgagor to maintain positive payments. It's a sad truth that, though most home
owner's wish to avoid foreclosure, foreclosures still happen. Despite a home owner's best efforts
they can still end up having to foreclose on a home, potentially losing all their equity and
damaging their credit while having to find a new place to live.
For investors, the property can usually be bought at a better price than if processed through a
traditional sale. During the foreclosure process, time and certainty of a sale are much more
important since the seller is looking to recoup as much from their unmanageable property as
possible. As difficult as it can be for the seller, it can prove to be a mutually beneficial sale
if an investor comes along during the right stage of the foreclosure.
The three stages of foreclosure are: pre-foreclosure, foreclosure, and post-foreclosure.
Pre-Foreclosure Phase
The pre-foreclosure phase is when an investor is able to do the most good for a distressed
home-owner. In this stage, if an investor is able to quickly reach a price that is agreeable,
then the house can be sold with most of the distressed home-owner's credit rating intact. Ideally
if an investor is buying a home during this phase they needn't involve the lender, just interact
directly with the home owner. An investor's best chance to find property in this stage is through
real estate agents, accountants, attorneys or through basic word of mouth such as colleagues and
friends who may know the homeowner.
Foreclosure Phase
This is the actual foreclosure itself. This is the best time for investors to strike but does not
allow for as much help to the home owner. Most of these types of properties will be found through
the County Clerk's office. This is where the investors can look up recent notice of defaults so
they are aware of any pending foreclosures in the area. You can also sometimes be placed on a
notice list to inform you of any pending defaults as they happen.
Depending on the state the foreclosure process is different. A judicial foreclosure can take much
longer then a non-judicial foreclosure which is usually ready to go to auction after two to four
months. No matter how they get there once they are finished processing they will be sold at the
auction to whoever is the highest bidder.
Post Foreclosure
You can attempt to buy a house when it is in the post-foreclosure process. You will be able to
look up the new owner and how much they paid for the foreclosure notice. This is when the
property has either been sold to an investor at auction or it is being held by the lender, which
is known as a REO (Real Estate Owned). An investor will usually be a tougher buy when they bought
during the foreclosure part of the process but they might still be willing to sell so they can
have a quick property sale. If the house is lender owned you are usually able to negotiate more
because they would just rather recoup their losses and get the house off of their balance sheets.
Hopefully knowing these distinctions will allow you to better understand the steps to selling a
house or investing through foreclosure. It can be a tricky process at first, but if handled with
care the foreclosure process can present a unique opportunity to either make a profit as well as
help out distressed home owners.
----------------------------------------------------
Let us help you if you are in a tough spot and need to sell your home quickly. We can buy all
types of homes and we might be interested in buying your home. Skip the headaches of a tradtional
home sale and let us buy your house.
http://www.sellmyhousenowseattle.com/tag/how-to-sell-a-house-in-seattle/
Posted by Randall Frier http://jrandallfrier.com/
failure of the mortgagor to maintain positive payments. It's a sad truth that, though most home
owner's wish to avoid foreclosure, foreclosures still happen. Despite a home owner's best efforts
they can still end up having to foreclose on a home, potentially losing all their equity and
damaging their credit while having to find a new place to live.
For investors, the property can usually be bought at a better price than if processed through a
traditional sale. During the foreclosure process, time and certainty of a sale are much more
important since the seller is looking to recoup as much from their unmanageable property as
possible. As difficult as it can be for the seller, it can prove to be a mutually beneficial sale
if an investor comes along during the right stage of the foreclosure.
The three stages of foreclosure are: pre-foreclosure, foreclosure, and post-foreclosure.
Pre-Foreclosure Phase
The pre-foreclosure phase is when an investor is able to do the most good for a distressed
home-owner. In this stage, if an investor is able to quickly reach a price that is agreeable,
then the house can be sold with most of the distressed home-owner's credit rating intact. Ideally
if an investor is buying a home during this phase they needn't involve the lender, just interact
directly with the home owner. An investor's best chance to find property in this stage is through
real estate agents, accountants, attorneys or through basic word of mouth such as colleagues and
friends who may know the homeowner.
Foreclosure Phase
This is the actual foreclosure itself. This is the best time for investors to strike but does not
allow for as much help to the home owner. Most of these types of properties will be found through
the County Clerk's office. This is where the investors can look up recent notice of defaults so
they are aware of any pending foreclosures in the area. You can also sometimes be placed on a
notice list to inform you of any pending defaults as they happen.
Depending on the state the foreclosure process is different. A judicial foreclosure can take much
longer then a non-judicial foreclosure which is usually ready to go to auction after two to four
months. No matter how they get there once they are finished processing they will be sold at the
auction to whoever is the highest bidder.
Post Foreclosure
You can attempt to buy a house when it is in the post-foreclosure process. You will be able to
look up the new owner and how much they paid for the foreclosure notice. This is when the
property has either been sold to an investor at auction or it is being held by the lender, which
is known as a REO (Real Estate Owned). An investor will usually be a tougher buy when they bought
during the foreclosure part of the process but they might still be willing to sell so they can
have a quick property sale. If the house is lender owned you are usually able to negotiate more
because they would just rather recoup their losses and get the house off of their balance sheets.
Hopefully knowing these distinctions will allow you to better understand the steps to selling a
house or investing through foreclosure. It can be a tricky process at first, but if handled with
care the foreclosure process can present a unique opportunity to either make a profit as well as
help out distressed home owners.
----------------------------------------------------
Let us help you if you are in a tough spot and need to sell your home quickly. We can buy all
types of homes and we might be interested in buying your home. Skip the headaches of a tradtional
home sale and let us buy your house.
http://www.sellmyhousenowseattle.com/tag/how-to-sell-a-house-in-seattle/
Posted by Randall Frier http://jrandallfrier.com/
Thursday, December 26, 2013
Chapter 11 Bankruptcy Can Breathe New Life Into Your Business
Copyright (c) 2013 Eli Gali
Just the word bankruptcy can give a business owner chills and bring on anxiety and stress.
However, in Chapter 11 bankruptcy a corporation, LLC, and even sole proprietor can have a second
chance with a business restructuring. Huge corporations have entered into Chapter 11 and come out
being stronger and more viable. There are news articles almost daily about one giant or another
that has met the plan and is going full board ahead.
The key to making the decision that Chapter 11 Business Restructuring is the right move for any
business, large or small, is to consult with a seasoned Corporate Reorganization Lawyer. This
specialized attorney will review every aspect of the business from the ground up. Some of the
answers sought are to questions like did the current fiscal conditions arise out of mismanagement?
If so, what steps have been taken to alleviate this issue?
There are many benefits for a struggling company to opt for Business Restructuring. It could be
that the debts that are currently owed are settled for pennies on the dollar freeing capital to
work in real time. There is also the possibility that if the Corporate Reorganization Lawyer
proposes a workable plan to the courts, they may agree to allow current management to run the
day-to-day operations as status quo. Even if some members of the Committee vote down the plan,
there are steps that can be taken to over-ride the decision. However, in either case the court
will keep a close eye on how things are being run.
If there are any negative features of Chapter 11 they are that the company cannot enter into any
additional long-term debt, expand beyond its current boundaries or take off in a new direction.
However, these all make good common sense.
It is incumbent upon the management of a company researching the benefits of seeking Chapter 11
protection to find the best Corporate Reorganization Lawyer available. The entire process is
intricate, tedious and rift with special laws, rules and regulations. If the company in question
appears in court with an attorney who is ill-prepared, the case may be dismissed altogether. This
is a very precise legal specialty.
In the discovery process, the business wanting to restructure should query the attorney on how
many cases have been personally handled and out of those how many cases were ruled in favor of the
petitioner? Another detail to include is whether or not the attorney has worked both sides of the
fence. Does he know the 'tricks of the trade' that attorneys for the creditors will pull at court?
Does he know how to overcome their objections?
Business restructuring via Chapter 11 can be a virtual life-saver for many companies who could
proceed in business if it weren't for a heavy burden of debt. Everyone deserves a second chance,
and for a corporation or any size business, this could be it.
----------------------------------------------------
Law Law Firm provides high caliber business related legal services in a broad range of areas
regarding corporate bankruptcy, general counsel and debtor and creditor rights. Eric Terry is a
lawyer that serves many clients in San Antonio, Austin, Houston and Dallas, Texas.
http://ericterrylaw.com
Posted by Randy Frier http://jrandallfrier.com/
Just the word bankruptcy can give a business owner chills and bring on anxiety and stress.
However, in Chapter 11 bankruptcy a corporation, LLC, and even sole proprietor can have a second
chance with a business restructuring. Huge corporations have entered into Chapter 11 and come out
being stronger and more viable. There are news articles almost daily about one giant or another
that has met the plan and is going full board ahead.
The key to making the decision that Chapter 11 Business Restructuring is the right move for any
business, large or small, is to consult with a seasoned Corporate Reorganization Lawyer. This
specialized attorney will review every aspect of the business from the ground up. Some of the
answers sought are to questions like did the current fiscal conditions arise out of mismanagement?
If so, what steps have been taken to alleviate this issue?
There are many benefits for a struggling company to opt for Business Restructuring. It could be
that the debts that are currently owed are settled for pennies on the dollar freeing capital to
work in real time. There is also the possibility that if the Corporate Reorganization Lawyer
proposes a workable plan to the courts, they may agree to allow current management to run the
day-to-day operations as status quo. Even if some members of the Committee vote down the plan,
there are steps that can be taken to over-ride the decision. However, in either case the court
will keep a close eye on how things are being run.
If there are any negative features of Chapter 11 they are that the company cannot enter into any
additional long-term debt, expand beyond its current boundaries or take off in a new direction.
However, these all make good common sense.
It is incumbent upon the management of a company researching the benefits of seeking Chapter 11
protection to find the best Corporate Reorganization Lawyer available. The entire process is
intricate, tedious and rift with special laws, rules and regulations. If the company in question
appears in court with an attorney who is ill-prepared, the case may be dismissed altogether. This
is a very precise legal specialty.
In the discovery process, the business wanting to restructure should query the attorney on how
many cases have been personally handled and out of those how many cases were ruled in favor of the
petitioner? Another detail to include is whether or not the attorney has worked both sides of the
fence. Does he know the 'tricks of the trade' that attorneys for the creditors will pull at court?
Does he know how to overcome their objections?
Business restructuring via Chapter 11 can be a virtual life-saver for many companies who could
proceed in business if it weren't for a heavy burden of debt. Everyone deserves a second chance,
and for a corporation or any size business, this could be it.
----------------------------------------------------
Law Law Firm provides high caliber business related legal services in a broad range of areas
regarding corporate bankruptcy, general counsel and debtor and creditor rights. Eric Terry is a
lawyer that serves many clients in San Antonio, Austin, Houston and Dallas, Texas.
http://ericterrylaw.com
Posted by Randy Frier http://jrandallfrier.com/
Thursday, December 12, 2013
The New Bankruptcy Law - Its Impact on Bankruptcies
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, more commonly called the 2005
Bankruptcy Act or New Bankruptcy Law, made significant reforms to the current US Bankruptcy code.
Its purpose is to prevent perceived abuse by customers especially those individuals who file for
bankruptcy just to avoid paying for unwanted debts. An example of these changes is that before
individuals are eligible to file for bankruptcy relief, they must go through a mandatory credit
counseling program for six months. After that individual has filed for bankruptcy, a financial
management course must also be completed.
An individual's eligibility to file for Chapter 7 and Chapter 13 bankruptcy has also been changed
under the New Bankruptcy law. To determine which chapter you are eligible to file for, the
bankruptcy court uses the means test. This means that it compares the your state's median income
to your average income over the preceding six months. You can only file for Chapter 7 Bankruptcy
if your income falls below that median. If not, however, further measures in the means test will
help you understand whether you need to file Chapter 7 or Chapter 13,
Therefore, before you file, it's more important than ever to know the full extent of your
circumstances. Your current income sources, debts, monthly living expenses, the deeds to any real
estate or other major property that you own, records of any large financial transactions for the
last two years, and tax returns should be properly recorded, filed and cataloged to make the
process easier and to avoid any penalties or even disqualification. You'll need the guidance of an
attorney to review your assets because not all property is exempt from being seized as part of the
bankruptcy process. Don't forget to secure the necessary forms to be used as well as to file a
petition. Because any other information brought forth by your creditors could jeopardize the
success of your bankruptcy, it's very important that you are detailed and truthful on this
petition.
If you're filing for Chapter 13, you must also create and submit a repayment plan. Your leftover
money after your living expenses and how that will be divided with your creditors should also be
considered and planned carefully. You must be prepared to pay back child support and taxes in full
while your unsecured debts (like medical bills and credit card debt) are partially paid.
An automatic stay is granted to all your debts when you file for bankruptcy. Once you have
officially filed, any foreclosure proceedings currently in the works at the time of filing and all
communications from creditors will be stopped. However, this temporary relief comes at a price.
The court will appoint a trustee to manage your case and all of your property that are not
protected by the exemptions. Although the New Bankruptcy Law allows for a more merit-based, albeit
confusing, bankruptcy filing, it is still in your best interest to speak with an attorney to
clarify some questions and to guide you correctly through the entire process.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
Bankruptcy Act or New Bankruptcy Law, made significant reforms to the current US Bankruptcy code.
Its purpose is to prevent perceived abuse by customers especially those individuals who file for
bankruptcy just to avoid paying for unwanted debts. An example of these changes is that before
individuals are eligible to file for bankruptcy relief, they must go through a mandatory credit
counseling program for six months. After that individual has filed for bankruptcy, a financial
management course must also be completed.
An individual's eligibility to file for Chapter 7 and Chapter 13 bankruptcy has also been changed
under the New Bankruptcy law. To determine which chapter you are eligible to file for, the
bankruptcy court uses the means test. This means that it compares the your state's median income
to your average income over the preceding six months. You can only file for Chapter 7 Bankruptcy
if your income falls below that median. If not, however, further measures in the means test will
help you understand whether you need to file Chapter 7 or Chapter 13,
Therefore, before you file, it's more important than ever to know the full extent of your
circumstances. Your current income sources, debts, monthly living expenses, the deeds to any real
estate or other major property that you own, records of any large financial transactions for the
last two years, and tax returns should be properly recorded, filed and cataloged to make the
process easier and to avoid any penalties or even disqualification. You'll need the guidance of an
attorney to review your assets because not all property is exempt from being seized as part of the
bankruptcy process. Don't forget to secure the necessary forms to be used as well as to file a
petition. Because any other information brought forth by your creditors could jeopardize the
success of your bankruptcy, it's very important that you are detailed and truthful on this
petition.
If you're filing for Chapter 13, you must also create and submit a repayment plan. Your leftover
money after your living expenses and how that will be divided with your creditors should also be
considered and planned carefully. You must be prepared to pay back child support and taxes in full
while your unsecured debts (like medical bills and credit card debt) are partially paid.
An automatic stay is granted to all your debts when you file for bankruptcy. Once you have
officially filed, any foreclosure proceedings currently in the works at the time of filing and all
communications from creditors will be stopped. However, this temporary relief comes at a price.
The court will appoint a trustee to manage your case and all of your property that are not
protected by the exemptions. Although the New Bankruptcy Law allows for a more merit-based, albeit
confusing, bankruptcy filing, it is still in your best interest to speak with an attorney to
clarify some questions and to guide you correctly through the entire process.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
Wednesday, November 20, 2013
Mediation in Business Disputes
Mediation is a form of alternative dispute resolution that involves parties in conflict sitting
down with a trained mediator to address and resolve the critical issues at hand. Mediation is
growing as a way to address disputes in many different fields, including ADA and EEOC complaints,
employment issues, contract disputes, and union negotiations.
The settlement process in mediation is managed by a neutral third party trained in mediation. The
goal of this process is to bring the parties together to identify vital issues and to communicate
together to generate solutions. In the business world, mediation is an informal way to clear up
issues without having to engage in complex litigation.
For commercial businesses and parties in disputes, mediation offers many benefits. Compared to
litigation, mediation provides a forum that tends to resolve disputes much more quickly. As a
result, it is less expensive for both parties since less time is required to meet and discuss the
pertinent issues. Scheduling is also much easier since the meetings can be set up around the
availability of the disputing parties and the mediator. Parties can work together to discuss and
create their own solutions, providing more flexibility when compared with traditional litigation
where a judge makes a final determination. This working together can limit further hostility and
may even set the tone for a positive and civil relationship post-dispute.
A business dispute mediator needs to communicate with the parties before they meet together in
order to understand the dispute. What the mediator learns will influence how to conduct the
mediation. It may be counterproductive to have counsel expound the positions of the parties with
everyone in the room. At least the parties should all meet in order to execute a confidentiality
agreement and to enable both sides to confirm that representatives with authority to decide on a
resolution are in attendance or at worst available by telephone.
After the initial joint meeting, the mediator will meet with the parties separately to explore how
resolution might be reached. Confidentiality of the communications in mediation is an essential
part of the process. It protects the parties and enables them to speak frankly about their
interests as distinguished from their legal position if the dispute must be resolved by a judge or
an arbitrator.
Not all disputes can be resolved in mediation, but the involvement of a skilled mediator will
improve the prospects for a peaceful and efficient resolution.
----------------------------------------------------
Met Wilson is a seasoned mediator and arbitrator practicing in Portland, Oregon on a wide variety
of cases including commercial disputes, claims against broker-dealers, consumer claims, real
property disputes, franchise disputes, employee claims, construction claims, contract claims,
insurance coverage disputes and business torts. For expert assistance in any of these areas,
please call Met Wilson at 503-972-5090 or visit http://wilsonadr.com/
Posted by J. Randall Frier http://jrandallfrier.com/
down with a trained mediator to address and resolve the critical issues at hand. Mediation is
growing as a way to address disputes in many different fields, including ADA and EEOC complaints,
employment issues, contract disputes, and union negotiations.
The settlement process in mediation is managed by a neutral third party trained in mediation. The
goal of this process is to bring the parties together to identify vital issues and to communicate
together to generate solutions. In the business world, mediation is an informal way to clear up
issues without having to engage in complex litigation.
For commercial businesses and parties in disputes, mediation offers many benefits. Compared to
litigation, mediation provides a forum that tends to resolve disputes much more quickly. As a
result, it is less expensive for both parties since less time is required to meet and discuss the
pertinent issues. Scheduling is also much easier since the meetings can be set up around the
availability of the disputing parties and the mediator. Parties can work together to discuss and
create their own solutions, providing more flexibility when compared with traditional litigation
where a judge makes a final determination. This working together can limit further hostility and
may even set the tone for a positive and civil relationship post-dispute.
A business dispute mediator needs to communicate with the parties before they meet together in
order to understand the dispute. What the mediator learns will influence how to conduct the
mediation. It may be counterproductive to have counsel expound the positions of the parties with
everyone in the room. At least the parties should all meet in order to execute a confidentiality
agreement and to enable both sides to confirm that representatives with authority to decide on a
resolution are in attendance or at worst available by telephone.
After the initial joint meeting, the mediator will meet with the parties separately to explore how
resolution might be reached. Confidentiality of the communications in mediation is an essential
part of the process. It protects the parties and enables them to speak frankly about their
interests as distinguished from their legal position if the dispute must be resolved by a judge or
an arbitrator.
Not all disputes can be resolved in mediation, but the involvement of a skilled mediator will
improve the prospects for a peaceful and efficient resolution.
----------------------------------------------------
Met Wilson is a seasoned mediator and arbitrator practicing in Portland, Oregon on a wide variety
of cases including commercial disputes, claims against broker-dealers, consumer claims, real
property disputes, franchise disputes, employee claims, construction claims, contract claims,
insurance coverage disputes and business torts. For expert assistance in any of these areas,
please call Met Wilson at 503-972-5090 or visit http://wilsonadr.com/
Posted by J. Randall Frier http://jrandallfrier.com/
Tuesday, November 19, 2013
Chapter 11's Unexpected Silver Lining
When people contemplate filing for bankruptcy, "Chapter 11" is almost always considered a last
resort. Its reputation as the bringer of an awful fate has solidified its near mythical status on
how most people think. Bankruptcy experts and other finance professionals have done minimally in
reducing this stigma. They have historically endorsed Chapter 11 as a refuge you seek when there
are simply no other answers. It's no secret that undesirable results await entities - especially
individuals - who file for it. The most obvious ones are loss of assets, loss of control over your
finances, and a reduction on your quality of life. These reasons alone are enough to scare people
and businesses into avoiding Chapter 11 until they are certain that they have no other option.
As a result, many people are unaware that on the right circumstances, Chapter 11 proves to be
beneficial, especially when employed sooner rather than later. The optimum situation for a
business to file for Chapter 11 is when the business still has flexibility and credit that would
normally allow it to put off bankruptcy or avoid it altogether.
When a business is seeking to sell itself or is planning to merge with another business, most
Chapter 11 advocates agree that this is a scenario worthy of Chapter 11 consideration. In most of
these situations, the prospective partner is interested in a particular asset of the first
business. This can range from real or intellectual assets to a thriving customer base. Whatever
the interest is, it is a fact that if the first business has obtained a large amount of debt, the
acquiring entity could be put off by it. If a company suffers through this dilemma, the smartest
strategy it can implement is declaring Chapter 11, even if its financial status is not dire enough
to require it.
The rationale behind this clever business maneuver is to free up cash and cover operating costs
more efficiently by restructuring the company's debt and payment plans; thus, making it more
attractive to the acquiring or partnering entity. This technique helps in asserting the first
business' ability to service its debt while still functioning as a business. The process does not
merit further business scrutiny because the debt was always there and known to the potential
partner. Instead of making the first business look worse, a preemptive Chapter 11 filing improves
its outlook and makes it more attractive.
When dealing with any legal or financial mechanism, especially with negatively-viewed strategies,
one-dimensional thinking should be avoided because most of them have an unexpected silver lining
that could potentially save your business.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
resort. Its reputation as the bringer of an awful fate has solidified its near mythical status on
how most people think. Bankruptcy experts and other finance professionals have done minimally in
reducing this stigma. They have historically endorsed Chapter 11 as a refuge you seek when there
are simply no other answers. It's no secret that undesirable results await entities - especially
individuals - who file for it. The most obvious ones are loss of assets, loss of control over your
finances, and a reduction on your quality of life. These reasons alone are enough to scare people
and businesses into avoiding Chapter 11 until they are certain that they have no other option.
As a result, many people are unaware that on the right circumstances, Chapter 11 proves to be
beneficial, especially when employed sooner rather than later. The optimum situation for a
business to file for Chapter 11 is when the business still has flexibility and credit that would
normally allow it to put off bankruptcy or avoid it altogether.
When a business is seeking to sell itself or is planning to merge with another business, most
Chapter 11 advocates agree that this is a scenario worthy of Chapter 11 consideration. In most of
these situations, the prospective partner is interested in a particular asset of the first
business. This can range from real or intellectual assets to a thriving customer base. Whatever
the interest is, it is a fact that if the first business has obtained a large amount of debt, the
acquiring entity could be put off by it. If a company suffers through this dilemma, the smartest
strategy it can implement is declaring Chapter 11, even if its financial status is not dire enough
to require it.
The rationale behind this clever business maneuver is to free up cash and cover operating costs
more efficiently by restructuring the company's debt and payment plans; thus, making it more
attractive to the acquiring or partnering entity. This technique helps in asserting the first
business' ability to service its debt while still functioning as a business. The process does not
merit further business scrutiny because the debt was always there and known to the potential
partner. Instead of making the first business look worse, a preemptive Chapter 11 filing improves
its outlook and makes it more attractive.
When dealing with any legal or financial mechanism, especially with negatively-viewed strategies,
one-dimensional thinking should be avoided because most of them have an unexpected silver lining
that could potentially save your business.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
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