short sale attorney danbury brookfield naugatuck waterbury

Short Sale Impact On Homeowners Credit Score

The Impact of Short Sale on the Credit Score of the Homeowner

What is the impact of short sale on the credit score of the homeowner?

When a homeowner cannot make their mortgage payments, for whatever their personal reason is, and they have no equity in the property they have two options: foreclosure, short sale, or bankruptcy. While losing your home may be stressful, most clients are more worried about the future: when will they be able to buy a home again?

Sadly, all three of the above options will have a negative impact on the homeowner’s credit score. Let’s take a look at the options:

  1. Foreclosure – By the time the lender files for foreclosure, you have missed two, four, six, maybe more payments. The foreclosure process can last a year or more, by which time you have missed 12 or more additional payments. When the judgment of foreclosure is entered, you may be responsible for additional costs, or in extreme cases the difference between the foreclosure sale price of the property and the amount of the mortgage. Then a foreclosure is added to your credit report and your credit score drops further.
  2. Bankruptcy – May allow you to keep some of your property, maybe even your home if you have enough other assets, but it will essentially strip you of everything you are worth to pay off your creditors. A bankruptcy is also one of the most devastating negative marks you can get on your credit report.
  3. Short Sale – By entering into a short sale agreement, you can stop the negative impact of missed payments as soon as you know a problem exists. You can even file for short sale without missing any payments – something most lenders won’t tell you! While some lenders may report short sales to credit bureaus, the credit score impact of a short sale is for less than that of a foreclosure or bankruptcy.

Since Short Sale has a smaller impact on your credit score, and can save the additional missed payments that come with foreclosure or bankruptcy, the overall impact on credit is much lower. Therefore, credit scores will recover much faster after a short sale. Short Sale is not always the better choice, but all things being equal, it is almost always the lesser of three evils.

The option of short sale is available to homeowners at almost any time! If you owe more than your house is worth, it may be the right option for you.

Get Rid of an IRS Tax Lien – Withdrawal or Release?

Have you ever wondered if it is possible to get rid of an IRS Tax Lien? Several options are available to deal with a Federal Tax Lien. Read more below.

IRS Tax Liens Can Be Disruptive.

Federal Tax liens are not only  imposing because they tell the world you ran into trouble with the IRS. Not only will an IRS tax lien lead to the eventual barrage of letters and faux “notices” from Tax Resolution “Experts,” but tax liens also hurt your credit, tax liens hurt your reputation, and tax liens make it hard to sell certain property that the lien is filed against.

The truth is that – as soon as a liability is finally assessed – the IRS has a “secret lien” on all of a taxpayer’s assets. This simply means that in certain circumstances, even without an actual public filing, the IRS will have a secured, priority, interest in the tangible property and real property of a taxpayer. (But that’s a boring legal discussion we won’t get in to here.)

When people discuss “getting rid of a tax lien” they are generally talking about getting rid of the public notice of their tax problems, or at least mitigating the damage called by that public notice.

There are several different options for dealing with a federal tax lien, and best strategy depends on each taxpayer’s particular situation and desired outcome.

Obtaining a Release of Federal Tax Lien

Obtaining a release of a federal tax lien is one way to “get rid of” an IRS lien but that might not be the best result. Why is that? When a tax lien is “released” the record of the original tax lien will stay on a taxpayer’s credit report for several years. Simply obtaining a lien release will not fully mitigate the damage to your credit, because the evidence that the lien existed will still be out there.

Despite its short-comings, a lien release is often the only option available when dealing with an IRS lien. Payment in full of a liability or an accepted Offer in Compromise will result in the release of a tax lien. Tax liens are also generally “self-releasing” after the Statute of Limitations of Collection has expired. The IRS will also consider releasing a tax lien if you or your representative can show that the release will actually increase your ability to pay the IRS. However – don’t expect the IRS to release a lien on a mere promise to pay, the IRS will need more than your assurances to issue a lien release when the tax liability has not been paid in full and the debt is still enforceable.

“Erasing” a IRS Lien via a Lien Withdrawal.

As part of the IRS’s recent (but no longer new) Fresh Start Program, tax lien withdrawals are now more common than they were previously. Although the IRS does provide some forms and guidance on irs.gov, the process can trip up the uninitiated. (For one, it might require several conversations with IRS employees and unbearably long hold times.) The major benefit to a Tax Lien Withdrawal by the IRS is that – as far as credit reporting agencies are concerned – it is as if the lien never existed. If you want that IRS lien off your credit, that might be possible. If you think that you can pay your liability quickly, or even if you need some time to pay your tax liability off, you should speak with a tax professional about the possibility of a lien withdrawal before you attempt to settle up with the IRS on your own. Simply paying you tax bill will result in a lien release and as discussed above – the tax lien filing may stay on your credit history.

 

If you are having financial troubles caused by a notice of federal tax lien filing, you should speak with a tax professional. Consider speaking with a real tax attorney. Feel free to schedule a 20-minute phone call with our tax attorney or call us at 203-740-1400 for more information.

 

LLC for physicians

Forming a Limited Liability Company for Medical Professionals in Connecticut

Which Medical Professionals Can Form a Limited Liability Company In Connecticut?

Forming a CT LLC for the Purposes of Rendering Medical Services

In Connecticut, the Limited Liability Company Act governs the way in which an LLC is formed and for which purposes an LLC may be formed. In most ways, forming an LLC for the purposes of rendering professional services, or services for which a State issued license is needed, is identical to forming an LLC for any other business purpose.

However, an LLC may be formed to render professional services ONLY IF each member (co-owner) of the LLC is licensed or authorized as a member of that profession, the LLC will only render those specific kinds of professional services and those services ancillary to that purpose, and only licensed professionals shall render those professional services.

There Are Exceptions

The Limited Liability Company Act allows for certain medical professionals to form LLC’s together even though they hold different licenses.

  • Psychologists, martial and family therapists, social workers, nurses and psychiatrists can form LLC’s together;
  • Physicians and Surgeons, occupational therapists, social workers and alcohol and drug counselors can form LLC’s together;
  • Physicians and Surgeons, and Chiropractors can form LLC’s together;

Medical Professionals can also form LLC’s together regardless of their licensing status if the LLC is not providing medical services.

What are the Consequences of Forming an “Illegal LLC”

Forming an “illegal llc”, or one that is not in compliance with the laws of the State of Connecticut, can lead to many issues, starting with forced dissolution and/or treatment as a general partnership for tax or liability purposes. This means that if you form an illegal LLC you will not be afforded the liability limiting protections had you properly formed the LLC to begin with.

If you are just forming your medical practice in Connecticut and are considering using a Limited Liability Company for your organizational structure, you should hire a Connecticut business attorney to assist in the drafting of your documents and filing of your LLC. Doing things correctly from the beginning can save business owners a lot of time, money and stress and will add to the overall health and success of the business. If you have already formed your LLC but are not sure if you are compliant with the laws of the state of Connecticut, you should contact a Connecticut business lawyer immediately to review your documents and resolve any flaws before they become problems.

nonadversarial divorce process

The Shortcut to Divorce – New Connecticut Law Creates Nonadversarial Divorce Process – Connecticut Public Act 15-7

The Shortcut to Divorce in Connecticut

Public Act 15-7 Creates Nonadversarial Divorce Process

Coming into effect this past October 1st, Public Act No. 15-7, An Act Concerning a Nonadversarial Dissolution of Marriage, creates a shortcut to divorce in nonadversarial divorces that meet certain criteria. While the goal was to offer the public a faster and far less intense divorce process, the qualification requirements are rather restrictive.

Qualification Requirements for Nonadversarial Dissolution of Marriage

ALL of the following conditions must be satisfied, and both parties must swear to them under oath in order to qualify for nonadversarial divorce:

  1. The marriage has broken down irretrievably;
  2. The parties were married fewer than 8 years;
  3. Neither party to the action is pregnant;
  4. No children were born to or adopted by the parties before or during marriage;
  5. Neither party owns real estate property, in whole or jointly with others;
  6. The total value of all property owned by both parties does not exceed $35,000 (excluding encumbrances);
  7. Neither party has a benefit pension plan;
  8. Neither party has a pending petition for relief in Bankruptcy court;
  9. Neither party is applying for or receiving Title 19 Social Security benefits;
  10. No other action relating to the marriage is pending anywhere else;
  11. There are no restraining orders or protective orders in effect between the parties; and
  12. residency requirements are satisfied.

If all of the above are true, an action for nonadversarial dissolution of marriage can be started by filing a duely signed and notarized joint petition in a judicial district in which one of the parties to the nonadversarial divorce lives. The joint petition must include the following:

  1. Date and place of marriage;
  2. Current residential address of each party;
  3. Financial Affidavits;
  4. Notarized certification signed by both parties that they agree to proceed by consent and wive service of process, neither is acting under duress or coercion, and each is waiving the right to trial, alimony, spousal support, or appeal.

If the parties wish to submit a settlement agreement or request to restore birth name or former name, these must also be included with the joint petition at filing.

Timeframe of Nonadversarial Divorce

Thirty or more days after the joint petition is filed the court will schedule a disposition date. During this thirty day period, either party can file a notice of revocation, turning the nonadversarial divorce into a standard one.

Assuming no issues arise and both parties agree on everything, the Court may enter a decree of dissolution of marriage (judgment of divorce) as early as the disposition date or within 5 days of that date. The parties are then notified by mail of the divorce and given the status of unmarried person. No court hearing is required.

Issues That Can Arise

The new law points out two specific reasons for why the Court can choose not to enter the decree of dissolution. If the court spots an issue, it will schedule a hearing within the next thirty days so that the parties can be heard. If the court is still not satisfied that the nonadversarial divorce process is proper under the circumstances, it will turn the nonadversarial divorce into a standard family docket divorce.

  • The Settlement Agreement proposed by the parties is not Fair and Equitable; and
  • Failure to comply with the 12 criteria for qualifying.

However, from reviewing the statute, there are some other reasons that could likely cause a joint petition for nonadversarial divorce to fail.

  • Jurisdictional issues with the Court where the joint petition was filed;
  • Failure to notarize the joint petition, certifications and affidavits;
  • Failure to notify the Court of a change concerning criteria for qualifying in a timely manner;
  • Failure to provide financial affidavits or use the proper form;
  • Failure to provide required certifications; or
  • There is evidence of duress or coercion.

Why You Need To Be Very Careful With Nonadversarial Dissolution of Marriage

When the Court enters a decree for the dissolution of marriage in a nonadversarial divorce, that decree is the “final adjudication of the rights and obligations of the parties with respect to the status of the marriage and the property rights of the parties.” You waive any right to a trial, alimony, spousal support or any appeals. 

The final judgment may only be set aside for fraud, duress, accident, mistake or other grounds recognized at law or in equity.

 

 

who is liable for child injuries at daycare

Seeking Compensation for Child Injuries at Daycare

Child Daycare Injuries

Seeking Compensation for Child Injuries at Daycare

At G&G Law, LLC, we understand the emotional and psychological toll that child injuries can have on a family. We have previously written articles on child injuries that happen on school buses. In this article, we will take a look at child injuries at daycare.

Why are child injuries at daycare important?

For many families, the ability of the parents to provide for their children is dependant on the parents leaving their children in the care of another person so that they can go to work. When you entrust your children to the care of another, you expect that their number one priority is the safety of your child.

The leading cause of child fatalities in the US and Connecticut is unintentional injury, or accidents. Between the years 2000 and 2004, accidental injury caused the deaths of 8,539 children between the ages of 1 and 4, and 6,072 deaths of children between the ages of 5 and 9. Between 2000 and 2004, Connecticut had 49 children ages 1 to 4 and 35 children ages 5 to 9 that died from accidental injuries. In Connecticut, accidents are responsible for 25% of all deaths for children ages 1 to 14.

Between the years 1985 and 2003, there were a total of 1,362 child deaths that happened at daycare.

How are daycare providers responsible for child injuries?

Depending on the circumstances, a daycare provider can be held liable for both accidental or intentional child injuries at daycare.

Unintentional Injuries

How can a daycare provider be responsible for accidental injuries? Even when accidents happen, that does not necessarily mean that nobody is to blame. If the accident was caused by the negligence or recklessness of the daycare operator, they can be held liable for the resulting injuries. A daycare operator is negligent when they create a risk of injury that they are not aware they created. Recklessness, a higher level of fault, happens when a daycare operator knows of a risk to injury but does nothing to correct it.

For example, failure to adequately train their employees (leaving a gap in one part of the training) is likely to be seen as negligent, while failure to train their employees at all could be reckless. Failure to supervise a specific child at a specific moment would likely be deemed negligent, while having no caregivers present at all would likely be reckless. Allowing an unsafe condition to develop on the premises is usually seen as negligence, while known of an unsafe defect on the premises (say a loose stair) and doing nothing to repair it, is likely to arise to recklessness.

In order to win a case for child injuries at daycare based on negligence, a duty of care must be shown to exist; which is sometimes difficult to do. One of the easier ways to go about proving negligence is to employ the legal doctrine of negligence “per se”, or negligence “in itself”. When an action violates a law or regulation and the person injured is the person the law was meant to protect, it is negligent per se.

Connecticut has very strict guidelines for the licensing and operation of daycare centers, specifically for the purpose of keeping the children safe. Since the legislature has expressed its intent to protect children from injury via these regulations, any failure to comply with such a law that causes child injuries at daycare is negligent per se! Therefore, any time a child is injured at daycare and the parent wants to see if the daycare center acted negligently, the best place to start is by looking at whether or not the daycare provider is compliant with state law and regulations. Here are some regulatory requirements to review:

  1. Is the daycare center properly licensed by the State? Are the licenses up-to-date?
  2. Are all teachers qualified to oversee children?
  3. Was the caregiver to child ratio adequate?
    • Center-based daycare must maintain caregiver to child ratios of 1:4 for infants and toddlers, 1:10 for children over 3 years old and older, and must also maintain a 1:4 ratio for mixed age groups.
    • Home-based daycare must maintain a ratio of 1:6 for children not in school full time and can have a maximum of 2 infants per caregiver.
  4. Failure to provide employees with a policy manual on how to handle emergencies.
  5. Failure to follow doctor’s orders or administer medication.
  6. Failure to properly screen employees (negligence employment).
  7. Was a child left unattended, especially during meal time?
  8. Failure to maintain a first aide kit.
  9. Failure to comply with Building codes, Fire Safety code, Public Health codes, or any other local regulation.

Intentional Injuries

Intentional injuries are those that were caused by actions specifically meant to injure a child. These are the ones you usually hear about in the news. Usually, intentional child injuries at daycare are connected with crimes such as assault, battery, or even homicide.

Since criminal liability has to be proven beyond a reasonable doubt, and civil liability on requires a preponderance of the evidence (a lower legal standard), if a daycare caregiver or daycare operator is found guilty of a crime that caused injury to a child, they will almost certainly be found liable for the injuries. The doctrine of negligence per se may also apply in these situations.

An employer can also be held liable, through negligence or recklessness, for the injuries caused by intentional actions of their employees. Since Connecticut puts a background check requirement on daycare employees and puts the burden of performing and reviewing such background checks on the owner of the daycare business, a failure to perform the background check, or ignoring the results of the background check, would almost certainly create daycare owner civil liability for the criminal acts of an employee; especially where the criminal act was performed during the performance of the employee’s job.

How do parents seek compensation for injuries to their child or children?

Most daycare owners have the business insured. If your child is injured at daycare you would likely begin by filing a claim with their insurance company. The insurance company will have adjusters and attorneys working for them with the sole purpose of paying as little as possible for your child’s injuries. They will try to get recorded statements that downplay your child’s injuries, or try to place some of the blame for the injury on the child or the parent. If their liability and coverage are clear, the insurance company will try to settle. But how do you know if the settlement offer they are making is a good one?

You will want the help of a child injury attorney. Child injuries are different from adult injuries, and may have implications that are unique to children. A child injury lawyer can help you file a claim, collect the proper documentation, and negotiate a potential settlement on your behalf (one that is fair). Once hired, the attorney can make sure that the insurance company and the daycare owner no longer contact you directly. If a settlement cannot be reached, you will need to file a lawsuit. A child injury attorney will know who to sue, what to see them for, and how to properly serve them.