The main reason is that the IRS uses a set formula to determine what amount they will accept as reasonable, but the wonderful part is that they have reworked the formula and the standards will be much lower. Not only will more Offers in Compromise be accepted, but the processing time should decrease dramatically, which can sometimes take up to a year but average about six months.

Here’s how the new Offer in Compromise program will work: When you complete IRS Form 433-A to accompany the offer request, you state your monthly income and expenses. The difference between your income and expenses is multiplied by 48 if you intend to pay off the offered amount in less than five months or it’s multiplied by 60 if you intend to pay it off over a longer period of time. So if your income is $4,000 per month and your “allowable” expenses (more on that later) are $3,900 per month and you intend to pay off the compromised balance immediately then the IRS, given all other qualifications have been met, will be willing to accept $4,800 plus the net “quick sale value” of your assets in which you have equity. It doesn’t matter if you owe them $100,000 or $500,000, this is what they are willing to accept.

The IRS works off a set of National Standards to determine expenses. For example, if your house payment is $2,000 per month but the National Standard for your particular area is $1,500 per month, the IRS will use the $1,500 number instead. What you may feel are your normal expenses, differ from what the IRS calculates, and the agency previously didn’t consider unsecured debt. When it comes to monthly payments to credit card companies, the IRS’ stance is “let them stand in line behind us.” That’s why it’s important to crunch your numbers with a tax pro who understands the OIC process to make sure you have a valid offer.

The IRS now has new, more relaxed National Standard tables for housing, transportation, and household expenses. The agency is willing to accept higher costs. In fact, a miscellaneous allowance will be included where a certain percentage of credit card payments can be listed as an allowable expense. Previously, student loan payments and delinquent state and local income taxes were not allowable expenses, but now those numbers will be considered in the formula.

The best news is that the multiplier is being reduced:  Instead of taking the disposable income amount and multiplying it by 48 or 60, it will be multiplied by 12 or 24, respectively.  And if you have income-producing assets in a viable on-going business, the equity in those assets will not be considered when adding the value of total assets to disposable income.

The IRS wants to work with taxpayers and in order for you to get the most out of what the IRS is offering, it is important you see a Utah tax professional. Aaron R. Tillmann is a Utah Tax Attorney, based in Salt Lake City and can assist you with your tax issue. Call to schedule an appointment.

Every time a case is filed in the bankruptcy court, it is necessary to file paperwork by certain timelines. Many of the code section relating to the deadlines actually take the power away from the Judge and require the case be dismissed. A bankruptcy attorney will carefully guide you through the labyrinth of rules to meet these bankruptcy deadlines.

It is important that you meet these deadlines, once a case is dismissed it can be difficult to reopen, and even worse, you may lose some rights under the bankruptcy code. Some of the deadlines can pass without any notification, other times the bankruptcy court may notify you.

When you hire a bankruptcy attorney, make sure they are talking to you about what is required to file. They should be giving you definite deadlines to get them the information so that they can keep your case on track with the court.

The short answer; Yes, one spouse may file independently without the other. I generally recommend against it. The reason being, is that while the spouse that files for bankruptcy relief will be relieved of any debt in that spouses name, and any jointly held debt, the non-filing spouse may find herself suddenly hounded by the creditors that extended the jointly held debt.

Lastly, another area that comes up when only a single spouse is filing, is the transfer of assets between the spouses prior to filing. The Trustee is going to investigate any such transfers and they can be invalidated, worse yet, the Court may find that such a transfer is fraudulent and then you could be facing penalties and possible jail time. There is never a good reason to defraud, mislead, or try and hide things from the bankruptcy court. Beyond being illegal, the bankruptcy rules provide a great means of starting your financial life over, now isn’t the time to be short sighted or to cut corners.

Bankruptcy filings require a large amount of preparation, Tillmann Law practices bankruptcy in the State of Utah. You may contact our office by calling (801) 984-8182. Tillmann Law is committed to providing quality legal representation to individuals and the businesses they own.

Unsecured debt has been advanced to you without any collateral, only your personal promise to repay the loan. Most often unsecured debt is credit card debt although there are other forms such as student loans and installment loans. A creditor with unsecured debt has no recourse other than to sue you when you default and obtain a judgment against you. 

If you decide to file for a liquidation bankruptcy, also known as a Chapter 7, it is imperative to take advantage of your exemptions. Careful preparation is the best way to proceed.

Preparation for filing

When you do sign the papers that will be used to support your bankruptcy filing, you will be making an oath that everything that you have listed is a truthful listing of your property. While you could lie about your assets, having given all of you personal property to your brother for safekeeping, courts have this thing about people lying to them. Its called perjury, and you will be found out and the consequences are not worth the risk.

In all bankruptcy filings, you will have certain exemptions for property that cannot be taken to satisfy your creditors. The types and amounts of exemptions will vary from state to state, but you can expect to be left with enough assets to be able to have a fresh start. You should also avoid a rapid usage of credit cards immediately leading up to you filing; the court will frown upon this activity, considering it akin to theft.

The exemptions discussed above play into your pre-bankruptcy planning. While you are not allowed to hide and transfer assets, you may be able to sell certain items and use those funds to pay down some of the debt on your exempt property.

For example you may decide to use liquid assets to pay toward the equity of a home. This will also play into the individual homestead exemption of the state in which you reside. 

You will need to remember that everything you do for the previous year leading up to your filing is going to be scrutinized. If you mysteriously start to do things that are completely out of character, it will raise red flags. If you do anything that can be found to be a purposeful effort on your part to perpetuate fraud against any of your creditors, you can get into big trouble. Your possessions, while important to you, are not worth the repercussions of fraud.

Some of the most commonly utilized transaction that many use prior to filing are making your annual IRA contribution or other exempt pension plans, utilizing liquid assets to pay off debts that can not be discharged, such as taxes or student loans. Many people will pay down their home loan, but in Utah with the primary residence exemption at $20,000 it may not be available, and lastly make sure to have a life insurance policy in place.

Inheritance rights are an important issue to understand in relation to estate planning and probate matters. When there is no will or a will is determined to be invalid, inheritance rights will be of the utmost importance as the probate court determines how to distribute assets and property. Each state has different rules that apply here and different ways that inheritance rights may affect your particular situation.

If you would like to find out more about your inheritance rights in relation to your loved one’s estate, contact us today. As experienced probate and estate planning attorneys, we understand how to address your particular concerns and determine what your rights are in this situation so you are able to recover your portion of the estate. Whether the validity of a will has come into question, or if there is no will – or even if there is a valid will – an attorney at our firm can discuss your options and your rights with you.

At the Tillmann Law, we offer a free initial case evaluation to help you get started. We represent clients throughout all of Utah.

Your Right to Inherit

Inheritance rights can be complex. Depending upon the particular situation and the state, there are cases where close relatives of a decedent are able to override a will and enforce their rights to inherit specific property or a certain percentage of assets. However, this will vary depending upon which state you reside in, as well as your particular situation.

To help ensure that the probate process goes smoothly and that your interests are protected, consider working with a Tillmann Law as soon as possible. We have the experience, the knowledge and the resources to effectively represent your interests.

It’s no secret to personal injury lawyers that pharmaceutical companies prefer to downplay the drug injury risks of their products.

That’s the reason why so many advertisements for pharmaceutical products have an announcer intoning a list of side effects and risks associated with the product, while pleasing visual images flicker across the screen, and even more pleasant music plays in the background.  The Food and Drug Administration has finally decided to get wise to these sneaky tactics that lull consumers into a false sense of safety.

In many ads by pharmaceutical companies, there is a distinct and direct contrast between the visual images being played on the screen, and the audio by the announcer.  As a marketing guy will tell you, this is a trick designed to sell the product, by prodding the consumer to focus on the pleasing visual images, and not the side effects that are being announced.

According to the researchers, these tactics are effective, which is why so many pharmaceutical companies use these tactics in their advertising campaigns.  No one listens to all the negative side effects and complications associated with a product, when the accompanying visual images on the screen are designed to distract, soothe and comfort.

The United States Food and Drug Administration has finally begun to take notice of these tactics, and has begun to take some steps to prevent such tactics.  The agency recently proposed a new rule that television ads refrain from including distracting representations that take away attention from the statement of truth.

According to the Food and Drug Administration, there is some reason to believe that visual images of pleasant scenes during critical moments of the ad, like when the announcer is listing out all the potential side effects, risks and complications, possibly detract from the information that is presented.  The Food and Drug Administration proposed the rule in March 2010, and is still seeking public comments.  A final rule is yet to be announced.

The Food and Drug Administration in 2011 asked a panel of experts to study this issue.  The experts studied how consumers are influenced by direct-to-consumer advertising, including images, words on the screen, and music that is presented at the same time as audio information.  They conducted a study of a fake product, by creating two fake television ads for the product.  The first ad had a voiceover announcing the risks and negative side effects of the product, while the visual was one of people looking at pictures in an art gallery.  In the second ad, the risks and complications were listed out, and the accompanying visuals featured children playing with cute little puppies.  The panel found that ads that came with the most pleasing and positive visuals generated the most positive feelings about the product.

Chapter 7 is commonly filed and it is usually completed in around four to six months.  This option allows qualifying debt such as medical bills, credit cards and unsecured debt to be discharged or eliminated.  This chapter is usually filed by those with limited income and fewer assets.  When you file, you provide a list of all debts and creditors.  A meeting is scheduled after your petition is filed with the bankruptcy trustee to review your case.  Unless any creditors object to your filing or there are any issues, the bankruptcy can be completed within a few months.

Chapter 13 gives debtors an opportunity to restructure their debt with a repayment plan which can last from three to five years.  This chapter gives working individuals debt relief through a payment plan based on their income but on a set schedule.  The debtor works with their bankruptcy trustee to develop a plan to organize debt.  When the plan is approved by the court, the debtor begins making payments according to the schedule.  This option has helped many consumers pay down outstanding debt, retain personal property and even discharge qualifying debt at the end of the payment period.

What does Utah require?

This is really broken down into a few categories, injury per person, injury per accident and injury to property. Currently the state of Utah only mandates that drivers maintain a policy of $25,000 per person in bodily injury liability, $65,000 for bodily injury per accident, and $15,000 in property damage (expressed by the auto insurance industry as 25/65/15).

If you’re in an accident that means that your insurance coverage will cover you for whatever amounts you have purchased. As economic times have continued to decline since 2007, most families have found that they could save a few dollars by cutting their insurance policy in order to save on premiums. Thus, many families in Utah have just the minimum required by statute.

The minimum works fine for most fender benders and small collisions, but if you have ever been involved with a serious accident the dollar amounts can be astronomical. As you drive around today you will notice as well that many of these larger SUV’s start at $50,000 and increase upwards of $100,000, and this is to say nothing of sports or luxury vehicles.

Thus, what this results in is once your insurance carrier has covered all that the policy requires your left in the financial wind to cover the rest. Typically, an individual only carrying the minimum required coverage had little or no other liquid assets and typically the other auto insured’s carrier on finding this, will leave well enough alone. But times have changed, and with families cutting the costs but having savings, home equity, and other valuable assets, insurance carriers are beginning to sue to recover those costs.

How can it be Prevented?

When analyzing the situation from an asset protection perspective, I always advice clients to purchase as much insurance as 1) they can afford; 2) as much as the insurance carrier will sell them. I find when working with insurance that increasing the coverage, the premiums don’t usually rise as high as expected.

The greatest asset protection tool one can use before Trusts, Family Limited Partnerships, Business Entities, and the like, is insurance. This isn’t to say you shouldn’t be planning with those tools in mind, it is to say that once an estate plan with proper asset protection is in place, the cheapest defense is something handled at the insurance level rather then through attorney’s and courts.