Straight Talking on The Law

Successfully Negotiating An Amicable Divorce

By: Robert Harris, Portland Divorce Attorney

I was going to title this article: Divorce in Oregon: Good Cop, Bad Cop.

I often tell my clients, let me be the bad guy. The naysayer, the person that brings up the issues that need to be addressed. Everyone thinks lawyers are difficult anyway.

You can be the good cop. The conciliator, the person who puts the kids interest above all else and just wants to be fair.

A successful negotiation of an amicable end of a marriage doesn't mean you give up all your rights, or have to be treated unfairly. It can mean however, letting your lawyer be the person who raises issues in your defense.

I just read an article about mistakes people make when trying to reach an amicable divorce settlement. And it's true. Most people feel bad about divorce. Especially when there are kids involved. They want to be fair, and sometimes they bend over backwards to demands from their spouse that are unreasonable but deeply emotionally held, and end up putting themselves in a real bad situation.

Distressed Property Consultations Now On Line Strategic Default? Foreclosure? Short Sale?

By: Robert Harris, Oregon Real Estate Attorney

If your home is underwater you can find plenty of information about Oregon foreclosure laws and strategic default options online. Some good, some not so good. But even if you figure out the law you still have to apply that to your specific situation.  

Because of the growing demand for consultations and document review from people considering alternatives to paying for a home that is underwater, we've set up an expedited flat fee process for distressed property owners so they can  get straight answers from an experienced Oregon Real Estate Attorney.

By using our law firm's advantages of excellent technology and experienced attorneys, Harris Law Firm is leading the way in assisting clients throughout the state of Oregon efficiently and effectively.

Here's how our distressed property review works:

Don't Pay for Oregon Family Law Forms That You Can Get For Free

By: Amy Velazquez,

Family Law Lawyer

Your most important asset isn't your car or your home. It's your family. You want to keep them safe and secure and healthy. That's why it's important for you to retain a qualified family law attorney whenever you have the misfortune to be involved in a dispute regarding Child Custody, Parenting Time, Legal Separation in Oregon, Alimony , or any other serious Oregon Family Law issue.

That being said, we understand that some people can't afford an attorney. In those cases, we suggest a non profit  firm that accepts clients on a sliding scale. You can also call the Oregon State Bar and ask about the modest means program for limited income clients. 

If you do chose to represent yourself, for whatever reason, you should think twice before you purchase legal forms from a "big box" store, or from some person who calls themselves a paralegal on craigslist, or from some generic website you found on the internet.

Mortgage Forgiveness Tax Treatment

By: Robert Harris, Attorney at Law, Harris Law Firm, Hillsboro, Oregon

People considering a short sale or a deed in lieu of foreclosure or a strategic default need to consider how the IRS will treat the debt that is forgiven. Because the IRS typically treates debt that is forgiven as "income" A short sale particularly can result in the mortgage company sending the homeowner a 1099 form stating that the homeowner received "income". However, due to mortgage crisis, the federal government has passed legislative relief for most homeowners.

There is a great blog article from Hertsel Shadian, Attorney at Law, LLC, we found that succinctly sets out the tax issues encountered by all the homeowners that are considering a short sale, deed in lieu or strategic defaulting on their home.

If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Here are 10 facts you should know about Mortgage Debt Forgiveness.

New Estate Tax Laws

By: Robert Harris

 Recently there has been congressional movement on the issue of the estate tax. The "Responsible Estate Tax Act, Senate Bill 3533." Has been introduced to the Senate.  In the United States House of Representatives, the "Responsible Estate Tax Act, House Bill 5764.", identical to the Senate bill, was introduced. The bills, in their present form, would provide a $3.5 million exemption per individual, with a progressive rate structure. The top rate would be 55 percent, and there would be a 10 percent surtax on billionaires. Here’s the bullet point press release from the sponsors. They say these bills would

•Exempt the first $3.5 million of an estate from federal taxation ($7 million for couples). This represents the same exemption that existed in 2009. This would mean that 99.75 percent of all estates would be exempted from the federal estate tax in 2011 alone.

Strategic Mortgage Default

   By: Robert Harris

With the local housing market still in a downward mode, more homeowners are calling me about strategic defaults on their home loan. A strategic default is where the borrower has the ability to pay the loan but decides not to because the home is worth less than the amount of the loan.

Businesses have engaged in strategic defaults forever. If a business can't pay its debts. It closes its doors, or tells its bank that it must reduce the loan, or they will walk.

For homeowners however, strategic default is a new option. Since home prices seemed to have historically either risen consistently, or at least stayed constant, there was little need for considering the a strategic default. However, with home prices having dived by 20% - 35%, there are a lot of homes that are worth much less than is owed on them. 

It's been estimated that as many as 20% of the current defaults on home loans are strategic defaults. And, studies show that when the home value sinks to 75% of the amount owed, people are more likely than not willing to consider a strategic default.

The federal government has very recently enacted a new program that appears to be directed right at people who are considering a strategic default. This program is as much, or more, to benefit creditors as it is homeowners, since the last thing a lender wants is a foreclosed home. Because if an owner does quit making payments, they can continue to live in the home until the foreclosure is complete, which can be as long as one year, and make no payments.

Before you consider a strategic default, you need to consider the benefits and the detriments. Yes, you can live "payment free" in your home during the foreclosure. Yes you can substantially reduce your overall debt. But a foreclosure will harm your credit score.

However, for someone who is $100,000 underwater in their home, it could be a good business decision to consider a strategic default. Many people would be willing to take a hit on their credit score if they could save $100,000.

U-Visa: Immigration Relief for Crime Victims

 

By: Susan Jost, Immmigration Attorney

Undocumented victims of crime present a particular problem for law enforcement. They are afraid to report crimes, are leery of dealing with law enforcement, and are often times afraid to go to court. In response to this reluctance, and to encourage victims of crime to come forward, the government has wisely decided that in some cases, public safety should trump immigration immigration violations.

The U Visa is a nonimmigrant visa, made available to non-citizen victims of certain crimes.  The U Visa is given for a maximum period of four years and is not renewable unless law enforcement officials certify that the victim’s presence is necessary to assist in the investigation or prosecution of criminal activity.  There is a limit of 10,000 U Visas issued each year.  After three years, a U Visa holder may apply for adjustment of status, which means they may apply for a green card without leaving the United States.  

 

Cashing out Retirement to Pay Debts? - Good Idea?

  By: Ryan Hackett

Bankruptcy is a last resort for most people. As a bankruptcy attorney I have met several debtors who have tried almost everything to pay off their debts before they realize they need help.  One of the most unfortunate circumstances that I come across is people who have cashed-out or borrowed large sums against their retirement accounts in an attempt to pay off their creditors. Many times, they aren’t able to get enough funds to pay off everyone and still end up in bankruptcy. Even if you have enough in your retirement accounts to pay off your creditors, it could be disastrous to cash-out retirement funds to do so.  Nearly all retirement funds are protected from creditors. The most common forms of retirement funds that I see are held in 401(k)’s, IRA’s, PERS and 403(b) accounts.  All of these accounts are safe from creditors if you file bankruptcy. 

Short Sales Information

By: Robert Harris

I Had coffee with an experienced realtor last week. (At my favorite coffee bar Insomnia Coffee in Hillsboro Oregon) We talked about the housing market (pretty good for homes under $275,000, but not so good for those more luxurious homes), foreclosures and short sales.

After our meeting he gave me what I think is some concise, valuable literature on short sales and foreclosures. If you're a homeowner, and in a situation where a short sale or foreclosure appears to be an option, you'll want to read these.

And, if you're looking to buy a short sale property, this information will educate you to the process and the hurdles that you may face.

Who is filing for Bankrutpcy?

 

By: Ryan Hacket,

      Attorney at Hackett and Harris, LLC.

What types of people file for Bankruptcy?

In 2008 over 1 Million Americans filed for bankruptcy protection.  I recently came across this interesting and colorful chart that broke down the demographics of these filers.

As you can see from the chart there is a broad spectrum of people who file bankruptcy.  When I tell my friends and family members that I am a bankruptcy attorney they always seem to assume that I help people who have nothing and are unemployed.  I always tell them that quite the opposite is true. Nearly all of my clients have jobs and many have assets, such as cars, homes, or other valuable items.  As the chart shows, only 13% of people who filed bankruptcy in 2008 were unemployed.