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Estate planning clients often give much thought to avoiding probate (see related article). Wynn at Law LLC helps jog your memory to make certain you haven’t ‘forgotten’ an asset that would trigger probate. A common one forgotten, as an example, is the safe deposit box. Yes, banks still have them in the vault. In fact, it’s a common storage place for the Last Will and Testament. Why not? It’s safer than a home safe, and someone always has a key. But what else is in there?

 
Wisconsin allows an ‘interested party’ to access the safe deposit box to retrieve the Will. On the death of a sole owner of a safe deposit box, a safe deposit box company (bank) allows ‘limited’ access to the box by the spouse or next of kin of the deceased lessee, a court clerk, or other interested person for the only purpose of looking for a Will. The assets also in the box are not to be touched. While that interested party is in the box, he or she is supervised to make sure that doesn’t happen. If the Will itself doesn’t name anyone to the receive the safe deposit box assets, probate may be necessary.
A strategy to consider is naming an adult child or family member or friend as a joint owner of the safe deposit box, with a key. This alleviates the problem of having a sole owner of a box pass away. Then the Will can be retrieved and so can the assets without going through probate. (Note: There could be tax considerations when the joint owner takes possession, it only avoids probate because the joint owner of the box is considered joint owner of the asset.)
By the way, if there is a sole owner, whomever is the ‘interested party’ is may have to furnish proof of death as it deems necessary (e.g., the death certificate of the owner). That could delay things as well. With a joint owner who is a keyholder, they have access anytime. This could be a time-saver in the case of a loved one’s passing. Just remember, that joint owner will also have access to the safe deposit box contents while the loved one is living, too.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.  
Photo by Arman Zhenikeyev, used with permission.
The post Remember the safe deposit box appeared first on Wynn at Law, LLC.

Chapter 11 is a form of bankruptcy that, though occasionally used by individuals, is more commonly filed by corporations, partnerships, or limited liability companies (LLCs) in California. The major benefit of Chapter 11 over Chapter 7, which can also be filed by business entities, is that Chapter 11 allows the company to continue operating while the bankruptcy case is in progress. Chapter 11 bankruptcy will have major financial impacts on the company, affecting its employees, its investors, its bondholders, and – as our Sacramento bankruptcy attorneys will focus on in this article – its shareholders. Continue reading to learn about how shareholders are affected by Chapter 11, and how the company’s stocks are impacted.

What Happens to Stock in Chapter 11 Bankruptcy?
According to the U.S. Bankruptcy Court for the Eastern District of California, more than 30 companies filed for Chapter 11 bankruptcy in the Sacramento Division during 2016 alone. In 2015, the total was slightly higher at 40 companies filing for Chapter 11 in the Sacramento Division.
If you’re a California business owner who is thinking about filing Chapter 11, you are not alone. With care and diligence, filing Chapter 11 could be the action that transforms your failing business into a successful franchise or establishment. However, before you make such an impactful decision, it is necessary to educate yourself about how your company will be affected, such as effects on your shareholders and stocks.
Unlike Chapter 7, which involves liquidation of the business’ assets, Chapter 11 allows the company to continue operating because the Chapter 11 process centers around a debt restructuring (“reorganization”) plan. This plan must be negotiated with a committee of creditors.
The purpose of the plan is to delineate when, how, and to what extent various debts will be repaid, potentially including provisions for shareholders to receive financial compensation. In most instances, however, shareholders receive only a small amount of compensation, if any. For example, one study, which culled bankruptcy data from 2009 and 2010, revealed that less than 10% of the Chapter 11 cases analyzed resulted in “substantial” compensation for equity holders, including shareholders. Typically, shareholders receive little or nothing unless the company’s creditors are paid in full. Rather than being paid simultaneously, some creditors receive higher priority than others, starting with secured creditors, followed by unsecured or general creditors, followed – where possible – by shareholders. The Chapter 11 trustee may ask shareholders to return stocks, which can then be replaced with shares – though not necessarily as many – in the reorganized business.
Be advised that the Chapter 11 committee may reject your initial proposal for a reorganization plan. However, even in such a scenario, the bankruptcy court may nonetheless decide to approve your proposed plan.
You should also be prepared for stock trading – and, crucially, the value of your stocks – to be affected by the bankruptcy. Even though your company will continue to operate during the bankruptcy (though approval on major financial decisions, particularly those that would result in the company taking on more debt, may require approval from the bankruptcy court), the stock will be “delisted,” or taken off the pertinent stock exchange, such as the New York Stock Exchange or the Nasdaq. However, over-the-counter trading may proceed after the stock is delisted. A letter “Q” designation, which indicates bankruptcy, will appear at the end of the ticker symbol that identifies your business.
As to the bankruptcy’s impact upon stock value, there is both good news and bad news. The good news is that the stock will retain some of its value, but the bad news is that the value is likely to decline significantly. The bottom line is that, while Chapter 11 bankruptcy generally results in financial losses for stockholders, the process can be of immense benefit to struggling businesses. If Chapter 11 bankruptcy is executed with thoughtful planning and meticulous attention to detail, it can save an unprofitable company from collapse.

CA Bankruptcy Attorneys for Businesses in Sacramento, Roseville, and Folsom
While no type of bankruptcy can truly be called “simple,” certain chapters present greater challenges than others. Chapter 11 is one of the most complicated and technical forms of bankruptcy. It is all but impossible for business owners to effectively manage their own Chapter 11 cases, especially while they are occupied by the constant tasks of managing a business. If you are a business owner who is thinking about declaring bankruptcy in California, it is in your best interests to work with a Sacramento Chapter 11 attorney, like those of The Bankruptcy Group.
At The Bankruptcy Group, our Folsom Chapter 11 lawyers have many years of experience assisting S corporations, C corporations, limited liability companies, general partnerships, limited partnerships, and limited liability partnerships with the California bankruptcy process. For a free legal consultation as to whether Chapter 11 could be a suitable course of action for your business, contact The Bankruptcy Group right away at (800) 920-5351.
The post How Does Chapter 11 Affect Shareholders in California? appeared first on The Bankruptcy Group, P.C..

This new report, titled “Innovation Highlights: Emerging Student Loan Repayment Assistance Programs,” is available at: http://files.consumerfinance.gov/f/documents/cfpb_innovation-highlights_emerging-student-loan-repayment-assistance-programs.pdf 
The CFPB provides a Repay Student Debt tool, which helps borrowers get unbiased tips on how to navigate student loan repayment, along with other sample letters they can send to their student loan servicers. More information is available at: consumerfinance.gov/students. 

The post Tool to Help Navigate Student Loan Repayment Programs appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

Touring builders’ model homes can be intoxicating. They’re so flawless with very feature you’ve imagined into your dream home. Wynn at Law LLC knows the exhilaration because we’ve been on the same tours of spec properties. Before you rush into the builder’s agreement – which undoubtedly will reflect their best interests first – here are some areas you want to make sure are developed to your liking in the contract.

 
·         The building: Permits are required. Labor has to be furnished. Maybe pieces are subcontracted out. Obviously materials and plans are parts of the construction. Make certain the contract specifies the work that needs to be executed from the lot up to the last closet hinge. Remember lien waivers, too… see our previous article on them.
·         The timeline: Disputes with builders usually heat up over the deadline. Your move-in date means the world to you and your lender. What matters to the builder is accommodating inspections (delays), weather (delays), employee issues (delays) and arrival of materials (delays). A firm contract specifies a start date, move-in date, and provisions for reasonable extensions.
·         The payment terms: Another potential source of disputes (delays) is the payment. Typically there is a down payment and payments at regular intervals. A clear contract specifies the dates, amounts, and the form of payment they’ll accept as well as where they’ll accept it.
·         The warranties: In a sale of an existing home, defects are identified outright. In a new home construction, builders instead offer a warranty. That warranty usually spells out what is NOT covered (exclusions) rather than what IS covered (inclusions). Wynn at Law LLC reviews the home warranty promise and helps you get the most of it.
If you make the decision to build, rather than buy, your dream home, hiring a real estate attorney will ensure a contract favors your family, not the developer, and protects your investment. Usually, a builder presents a standard contract for your approval. If the contract appears overly simple or unnecessarily complex, there’s an excellent chance that the contract does not serve your best interests. Don’t be afraid to let us negotiate! Your home is on the line.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.  
Photo by Andrea De Martin, used with permission.
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