Should My Mom Declare Bankruptcy?

Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding. In general, bankruptcies can be categorized into two types – “liquidations” and “reorganizations.” Among the different types of bankruptcies, Chapter 7 and Chapter 13 proceedings are the most common for individuals and businesses. Chapter 7 bankruptcies normally fall in the liquidation category, meaning your property could be sold in order to pay back your debts. Conversely, Chapter 13 bankruptcies generally fall under the reorganization category, meaning that you will probably be able to keep your property, but you must submit and stick to a plan that will allow you to repay some or all of your debts within three to five years.

Chapter 7 Bankruptcy

Both individuals and businesses are allowed to file for Chapter 7 bankruptcy. These proceedings typically last between three and six months.
Liquidation of property: In a Chapter 7 bankruptcy proceeding, some of your property may be seized and sold to pay off some or all of your debts. However, as a benefit of this type of bankruptcy proceeding, any unsecured debts (debts that are not guaranteed by collateral) will be wiped out. In addition, there are certain types of property that cannot be sold in order to pay off your debts, such as the furniture in your home, you car and your clothes.

Secured debt: Secured debts are treated differently than unsecured debts in a Chapter 7 bankruptcy proceeding. In a Chapter 7 bankruptcy proceeding, you (the debtor) have to make a choice between allowing the creditor to repossess the property that secures the debt, continuing to make payments on your debt to the creditor, or paying the creditor a sum equal to the replacement value of the property that secures the debt. In addition, some types of secured debts can be wiped out during a Chapter 7 bankruptcy proceeding.

Chapter 7 Eligibility: Before you can file for Chapter 7 bankruptcy, you must be able to show that you are eligible to file for Chapter 7. To be eligible for Chapter 7, you cannot make enough money (minus certain expenses and monthly debt payments) to be able to fund a Chapter 13 bankruptcy repayment plan. There are other requirements to be eligible to file for Chapter 7 bankruptcy. Debts that will not be wiped out by Chapter 7 bankruptcy while credit card debt, unsecured loans, and other debts can be forgiven in Chapter 7, things like child support, taxes that are due, and alimony payments cannot be wiped out. For more debts that will remain after a Chapter 7 bankruptcy proceeding, see Debts that Remain after a Chapter 7 Discharge.

Chapter 13 Bankruptcy

Also known as the “wage earner” bankruptcy proceeding, only people with a reliable source of income are allowed to file for Chapter 13 bankruptcy.
Paying off your debt: In Chapter 13 bankruptcy in federal court, you must work with the court to come up with a repayment plan, and stick with the plan over the next three to five years. The amount you will need to pay is based upon your income, how much debt you owe, and how much the creditors of your unsecured loans would have received if you had filed under Chapter 7 instead of Chapter 13.

Limits on debt: In order to be eligible to file for Chapter 13 bankruptcy, you must be able to show that your debt is under the limits for filing. As of September, 2009, the limit on secured debt was $1,010,650 and the limit on unsecured debt was $336,900. If you have more than either of these amounts, you may not be able to file for Chapter 13 bankruptcy protection.
Repaying secured debts: Chapter 13 bankruptcy may allow you to repay secured debts, even if you are behind on payments, without having the property that secures the debt be repossessed. You may be able to put your past due payments into your debt repayment plan, and pay them off over a period of years.

Other forms of Reorganization Bankruptcy

There are two other types of reorganization bankruptcy in addition to Chapter 13. These are Chapter 11 and Chapter 12.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy proceedings are normally used by struggling businesses as a way to get their affairs in order and pay off their debts. In addition, some individuals also file for Chapter 11 bankruptcy when they are not eligible for Chapter 13 bankruptcy or own large amounts of non-exempt property (like several homes). However, Chapter 11 can be much more expensive and time consuming when compared to Chapter 13.

Chapter 12 Bankruptcy

Chapter 12 bankruptcy is very much like Chapter 13 bankruptcy, except that it is only available to people that have at least 80% of their debts arising from a family farm.

Who Can File For Bankruptcy?

Generally, anyone can, however, not everyone qualifies to file for a particular kind of bankruptcy. If you are an honest person who can’t afford to pay your bills, you can qualify for bankruptcy. If you have previously filed for bankruptcy, it may affect your options. For example, if you have recently filed a chapter 7 bankruptcy, you cannot file another chapter 7 for eight years. Bankruptcy is for the honest debtor with too much debt and no real way to repay it. So, you cannot file for bankruptcy to defraud your creditors. If you are in financial trouble, you cannot intentionally run up large debts with the intention of filing for bankruptcy afterwards. There are records requirements. You must gather personal tax returns, proof of your income in the six months before filing, and a certificate of your attendance at a mandatory credit counseling class.

As layoffs, pay cuts and foreclosures pile up; debt-burdened Americans are toying with bankruptcy both personally and for their businesses. The number of filings reached 1 million in the fiscal year ending Sept. 30, 2008, leaping more than 30% from the same period a year earlier, according to the administrative office of the U.S. Courts. Chances are those numbers would be even higher but for social stigmas dating to back to 16th century Europe, when deadbeats were publicly humiliated or thrown into debtor’s prison. Shame aside, the fact is that seeking bankruptcy protection may well be the right choice. As for having to forever wear a scarlet “B” on your chest, so by no means will you remain permanently persona non grata with lenders. The fact that you filed stays on your credit report for 10 years, but you can get credit again well within that time period. Your ability to do that depends on your pre-filing payment history, current income, debt-to-income ratio and how well you’ve paid your debts after the discharge. “If you can’t pay your bills and your debt is mounting, you’re already bankrupt,” If you’re in that situation, filing may be your way out.

How to File for Bankruptcy

The first part of filing for bankruptcy is determining whether it is the right call for you. It’s a huge undertaking, so ask yourself the important questions. How long will you likely have to repay these debts for? Are you legitimately unable to make the necessary payments? Can you compile the necessary information and documents? And are you prepared to deal with any fallout that comes with filing for bankruptcy? It can do significant damage to your credit score. Does your existing debt outweigh that consequence?

• Filers will also want to look into a bankruptcy lawyer. It’s possible to file for certain bankruptcy types without one, but at a time when you’re at your most vulnerable financially, finding someone who understands how to guide you through the various intricacies of filing.

• Before one can file for bankruptcy, United States Courts require you to take credit counseling, and after you file, it requires debtor education courses. Certificates of completion are required before debts are discharged.

• With credit counseling courses completed, the next step is to fill out the petition to file for bankruptcy. This and other bankruptcy forms are available on the U.S. Courts website. A bankruptcy attorney can help determine which other relevant forms will need to be filled out, based on what type of bankruptcy the filer is filing for, and how the specific local laws affect the case.

• If the petition gets accepted, the case is usually given to a trustee, a party not employed by the courts who can help oversee the case. The trustees will comb through documents to make sure all assets have been accurately collected and that no fraud has been committed. They will also set up a meeting with the creditors wherein the party who filed for bankruptcy must testify under oath.

Why Do People File for Bankruptcy?

The amount of debt the average American has continues to rise exponentially each year. There’s now over $1.5 trillion in outstanding student loan debt alone in the country. With such astronomical debt hanging over so many American households, people look to drastic measures. Emergency medical situations have put many Americans in tens of thousands, if not hundreds of thousands of dollars in medical debt. Medical debt and student loan debt can be a toxic combination for someone’s bank account, especially if they are also dealing with a loss of their job. A combo of these three is an extreme, but many feel bankruptcy is still the “extreme” option, a last resort. Filing for bankruptcy can wreck a person’s credit score and take years to recover; for someone to declare bankruptcy, taking the time to build their credit score back up would have to outweigh the difficulties of living under their existing financial struggles and debt.

What Factors Lead to Personal Bankruptcy Filings?

Because filing a bankruptcy case can be a huge decision with long-lasting consequences positive and negative people who are contemplating filing bankruptcy often want to know if their reasons for filing are typical, reasonable, or sound. A 2005 study reported that 46 percent of bankruptcies were related to medical debt. This conclusion has been borne out by other studies as well. This doesn’t mean that medical debt is the sole reason. There are lots of contributing factors and contributing debts. In addition to medical debt, leading factors that contribute to bankruptcy filings include unemployment and domestic issues like divorce. Note that most of these factors involve circumstances the filer could not control. According to this report, only 15% of filers report having to file because of actions they took and decisions they made that led to excessive credit card debt, large mortgages, or high car payments.

• The average filer is married, has a high school education, and makes less than $30,000 a year.
• In 2007, those younger than 25 made up less than 2 percent of filers. About 20 percent of filers are 55 years or older. The median age is about 45.
• Women are slightly more likely to file than men: 52.4 percent vs. 47.6 percent. Women make up 51% of the US population.
• People ages 65 and older make up about 8% of filers. Those ages 34 and younger make up about 19% of filers.
According to the Institute for Financial Literacy,
• 73% of filers have a job or are self-employed
• 27% make more than $30,000 a year
• 94% graduated from high school
• About 58% have at least some college
• 5% have a graduate college degree
• 30% are 34-44 years old
• 14% make $50,000 or more a year
Bankruptcy affects all age groups and all socioeconomic classes. In fact, it’s easy to argue that there is no one “average” or typical bankruptcy filer. But if we were to build one, she would likely be a middle-aged woman, married, Caucasian, with some college, who makes less than $30,000 per year. Even so, the statistics bear out that outside circumstances more so than age, income, or educational level play a huge role in decisions to file or not file.

Declare Bankruptcy In Utah Free Consultation

When you need legal help with filing bankruptcy in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

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ATV Accident Lawyer Midvale Utah

Over the years, the history of Fort Union has been lost somewhere in Utah’s peripheral vision. It’s a safe bet to say that most Utah natives have no idea how the 10-acre area in Midvale got its name Marion Cox, a 93-year-old Utah, hopes to change that. In 1948 Marion’s great-grandparents, Jehu and Sara Cox, moved to Utah from Missouri and set up their 40-acre farm in present-day Midvale. Due to a perceived threat from the native Ute tribe, the Cox family donated 10 acres of their land to construct a fort protecting 26 homes.

Legend has it that a local school teacher wanted to name the area “Union” due to its variety of ethnic backgrounds, and the fort was thereby dubbed “Fort Union.” Lack of historical preservation and the modern-day development of the Family Center have left no trace of the fort or its homes today. Though a replica of the original Cox cabin has been built and relocated behind the Family Center, Marion Cox has been on a mission to raise $80,000 to have the city build a monument to honor his great-grandparents. No stranger to the Fort Union area, Cox was named “Honorary Mayor” of the area from 1991 until 1993 by unanimous vote. “If this is possible, it might be the only time anything historic will be there,” he says. After meeting with the Salt Lake County Council 14 times, the members finally granted Cox approval for the statue in September 2013. Over the last year, Cox has faced the daunting task of raising the $80,000 on his own by September, 2015. The eastern part of Midvale was formed by agricultural neighborhoods, and the western areas formed by a mining and milling settlement. Each relied on the other for sustenance, protection, social interaction and commerce. The Union Fort area of Midvale City began as a center of agriculture. The Old Town area of Midvale City began as a center of mining and industry. Pioneer families began arriving in 1851 to start the settlement, which blossomed in the 1870s as a result of mining in Bingham Canyon and the coming of the railroad. The area was then known as Bingham Junction, and was an important midpoint along the rail between mining in Little Cottonwood Canyon to the east and Bingham Canyon to the west. With the discovery of silver in Little Cottonwood Canyon and in Bingham Canyon, new people rushed to be a part of the growing business and industry located in the middle valley in Midvale City. Along with industry came the hotels, boarding houses, saloons, schools, and the people who made Midvale City’s Old Town a center of the community. Midvale City has a nonpartisan mayor-council form of government. The Mayor and five Council members are elected to four-year terms. The current mayor of Midvale is Robert Hale. Current City Council members include Quinn Sperry, Paul Glover, Paul Hunt, Bryant Brown, and Dustin Gettel. Midvale Fire and Police are furnished by arrangement with the Unified Police and Fire of Salt Lake County. Consequently, Midvale no longer fields its own police or fire departments. The current head of the Midvale Unified Police is Capt. Randy Thomas and the Midvale Unified Fire Department is headed by Marshal Brad Larson.

Lawyer in Midvale Utah

• Free Grants Community: Win your part of the billions of dollars awarded in grants, aid, assistance and scholarships every year. Our free information will connect you with money you can use for business, home, school, and more. Grants are money given by grant makers to grant receivers. They can be governments, businesses, nonprofits, and individuals. Most grants require a careful eye for where to look and an application to apply. Our free money newsletter is full of timely help. Check for new grant opportunities published every day. Since 2010, the Free Grants Community has reported on thousands of opportunities for grants in the United States. Most of the help falls into roughly three categories: grants for home, grants for business, and grants for school. Literally billions of dollars are awarded to individuals, nonprofits, and businesses every year. We work to foster a Community that supports one another with helpful information. Together, we can ask questions and get answers. Join our community now.
• Grants for Home: The largest portion of the U.S. economy at more than 10% is based on real estate. Support for real estate in the form of Home Grants, comes in a variety of ways. Whether it’s purchasing a new home, keeping up an existing home, repairing your home or affording home improvements, there’s a lot of support out there for housing help. The Home Affordability Refinancing Program (HARP) was introduced in 2009. It was meant to help people whose homes had plummeted in value. The HARP eligibility requirements have decreased over the years. You can receive Assistance for HARP Eligibility by answering just seven questions. You may be eligible for HARP even if you’ve been turned down before. The government loves to encourage home ownership. There’s plenty of news and promises about Government Grants to Purchase a Home – are they for real? Government agencies like Housing and Urban Development (HUD) and the Federal Housing Authority (FHA) have many resources to help you buy a home. The latest is a program that lets you get into a new house with just 3% down and some organizations will even contribute to that amount! You may be a first-time home buyer even if you’ve owned a home before. For example, the IRS defines a first-time home buyer as anyone who has not owned a home for two years. Numerous programs and help are available as Grants for First Time Home Buyers. For Millenials to Boomers, these programs provide down payment assistance and mortgage loan help.

• Grants for Small Business: Traditional bank loans are harder to get than lenders might make them sound. And not every funding method is right for every business. That’s okay! There are Small Business Loans available if you know the right way to apply. Some simple steps can increase your chances of getting that loan. Finding money for a small business can be frustrating. We can’t all take a company public or receive millions in funding from Venture Capitalists. Money is out there but it’s in places you might not expect. Small Business Financing Opportunities describes all these as well as legislation that helps you. Small businesses employ more than half of the people working in the U.S. today. Most of those small businesses are individuals operating as either sole proprietors or partnerships. As an important part of the economy, you’ll find Grants for Small Business from local, state, and national organizations.
• Grants for School: If you need to pay for college then pursuing grants and scholarships should be at the top of your list. Grants for College are real “free money:” they never need to be repaid. You will work for it but that’s a good thing to get used to – you’ll need to work for that college degree too. Pell Grants (formerly called Basic Educational Opportunity Grants (BEOGs)) are an increasing source of funding for college students. In fact, the amount increases almost every year. Pell Grants are awarded on a needs-basis. You can determine your eligibility in two minutes to see if you qualify for a Pell Grant. There’s no competition for pell grants but funds are first come, first serve. If you qualify, as much as $6,095 is awarded for the 2018-2019 school year. Every year current and prospective students should complete the Free Application for Federal Student Aid (FAFSA). Completing this free application is one of the required steps to receive a pell grant. Though it gets a bit personal, the benefits are well worth it.
• Grants for Home Repair: Whether through a disaster or simply maintenance, home repair is an inevitable burden for every home owner. You can receive Home Repair Help from FEMA, insurance companies, and some lenders, but more support is hard to find. We give you the best options, which sometimes come from surprising places. Did your home recently sustain damages in a natural disaster? Whether or not, every home needs continuous upgrades and repairs. Grants for Home Repair can come from federal agencies (like the USDA), state programs, public utilities, private foundations, and nonprofit agencies.
Some home improvements may be optional, like a second bathroom or new patio. Others are more necessary, like a wheelchair ramp to your front door. Whatever the case, home improvement projects can be a big headache. But their benefits usually outweigh the hassles. Home improvements by definition increase the value of your home. But that increased value doesn’t come for free! Consider Home Improvement Grants for options to finance your home improvements. Home loans are the largest and most popular type of loans in the United States. Sometimes your need for home repairs will extend beyond the support of local, state, and federal programs. Fortunately, Home Repair Loans are one of the best supported options for borrowing from both public and private institutions.
• Grants for Business: Do you have a great idea and a passion to turn it into a business? We applaud you! Starting and running a business is as much (or more) a part of the American Dream as is home ownership. These days both can be particularly challenging – but not impossible. Have you heard that the U.S. Government does not give out grants to individuals to start a for-profit business? That’s true – but it does not mean the government offers no help. Grants to Start a Business are one of the best sources of funding though you may need to get creative to maximize the potential. Up until 2007, black-owned businesses steadily grew. But the great recession hurt everyone and black-owned businesses in cities like Detroit, Houston, Chicago and New York suffered more than many. While minorities still find it harder to get funding there are many Black Business Resources available. Small business is so important that in 1953, a new agency, the Small Business Administration (SBA.gov), was developed to support entrepreneurs and small business. The administration has a budget of over half a billion dollars and focuses on capital, contracts, and counseling. Many people know what they need but don’t have the money to get it. If only there were Free Money to get you from point A to point B. As the saying goes, there’s no free lunch. But with exciting experiments like Universal Basic Income, opportunities are on the rise. Many people are looking for “free grants” and the term is often confused with other phrases that mean financial aid. Always remember that a grant, by its very definition, is free. Free Grants are available from thousands of different government agencies, businesses, nonprofits and schools. You must apply for a grant but some applications are simply a short online questionnaire. Personal Loans are loans that are made without any sort of collateral. Collateral is something the bank could take from you if you failed to make payment on your loan. Often these loans are offered at large interest rates though there may be a period before the interest applies.

• Government Grants: In recent years, the number of people classified as disabled has risen dramatically, as have Workers Compensation and SSDI benefit payments. While government programs help, most disabled people need more than what the Social Security Disability program provides. In response to the need, more and more Disability Grants – public and private – are available. The U.S. federal government spends upward of $1 trillion annually – or more than 2.5% of its Gross Domestic Product – on Government Benefits. These include programs for relief, unemployment compensation, and support for low income individuals and families, health care services and Medicaid. Any prisoner trying to reintegrate into society faces many obstacles. Grants for Felons provide resources to assist released inmates. Although there is no standard, national system, many states have options to reduce recidivism rates. You may qualify to receive a smart phone or job from the government. If you’re in pain because you need dental work you can’t afford then don’t despair. And please don’t feel ashamed. Though few are covered by dental insurance, there is help available – even Free Dental Care. Sadly, more than 8000 in the U.S. die of dental and oral related issues each year. In 2014 an extensive study done by the Urban Institute examined the impact of different kinds of aid. It concluded that affordable cars are critical to helping people survive and thrive without public aid. In fact 82% if families who received Money for a Car were able to get off welfare and other types of assistance. Many nonprofits, and now, even the federal government, offer micro-loans to small businesses. The trend of Micro financing Opportunities is one we’ve seen continue to grow over the last decade. Many micro-lenders are mission focused so if you are doing something positive for your community, you will have an easier time getting funds from them than from more traditional lenders. The original movement known as micro financing began as an effort to fund small business ventures without having to use traditional bank loans. Crowd funding uses the internet to connect people looking for funding with those who wish to invest. Though it began as a tool for funding new businesses, it now can be used for personal funding needs.

Midvale Utah Personal Injury Lawyer and Accident Lawyer

If you or a loved one have been injured in a ATV accident, pedestrian accident, slip and fall, dog bite or other injury and need a lawyer to represent you in your claim, you can count on the attorneys to handle the legal complications of getting your bills paid for and getting you the compensation you deserve while you concentrate on healing and getting your life back.

Midvale Utah ATV Accident And Injury Attorney

When you need legal help recovering for your injuries caused by an ATV Accident in Midvale Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews

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Is Divorce In Utah Easy?

If you enter into marriage under the age of 20 and/or have an income of less than 25,000, your risk of divorce skyrockets. Throw in a spouse losing their job or a surprise pregnancy, and your marriage may be doomed before it begins. Here in Utah, we have a tendency to marry quite young. The median age of marriage in the United States is 27 for women and 29 for men. Now compare that to the average age of marriage in Utah, which is 24 for women and 26 for men.

Divorce Has Declined Nearly Everywhere Except Utah

Utah’s divorce rates run slightly higher than the national average. Statistics often attribute this to Utah having larger families than the national average, citing more than 5% of families have 7+ family members compared to the 3.25 national average (2013).

Utah Requires Divorcing Couples to Attend a Divorce Education Class
Utah legislators have created a mandatory divorce orientation course that couples must complete. Your divorce cannot be finalized until both you and your significant other have completed the course. You are only required to take the divorce education class if there are minor children involved. The one-time class reviews resources for custody and child support issues, clarifies the divorce process, and consequences of divorce. More information about Utah Divorce class requirements and fees can be found here.

People May Judge You and Ask Why

The news that you are getting divorced has spread through your church, neighborhood, and/or workplace, and we are a curious species. Don’t be surprised when people you barely know ask you why you the nitty-gritty on why you are getting divorced. Insensitive comments such as, “did she leave you for someone younger?” and other flagrant comments are to be expected. For the sake of your children, you may not wish to respond in detail.
While you are preparing your financials for your divorce, be sure to take some time to handle the emotional side as well. People may even tell you that they haven’t liked your ex since before you got married. They are not usually trying to make you feel bad; quite the opposite, they are usually trying to tell you that they agree with your decision and are trying to make you feel better. My point – PREPARE YOURSELF for these comments.
Friends and family members may also take sides or disappear completely. You may be the spouse who was cheated on, and people may still not take your side. Divorce is a distressing topic, and people may want to distance themselves from the perceived drama. Just remember to stay true to yourself, cut out the negative people, and create a foundation of support. Divorce gets easier as time goes on, and surrounding yourself with those that will help you weather the storm helps the process move faster.

You May Feel Terrible About Getting a Divorce – It’s OK

There is much guilt and regret present in nearly every divorce. You may easily blame yourself because you run through all the things you could have done differently, because your children blame you, or you may feel guilty simply because you were the one who filed the divorce papers. This is normal!! Make a choice to move forward, and take care of yourself. Throughout the divorce process you will have good days and bad days. Feeling guilty or overwhelmed does not mean that you should give the other spouse everything. Doing so will probably not lessen the grief on either side, and you are still entitled to half of everything.

Additionally, people may want to tell you their divorce horror stories. Please remember that every situation is different, and you shouldn’t let someone else’s negative experience stress you out. When you are feeling stressed, rely on professional advice from your family law attorney, mental health counselor, or financial advisor as they are qualified to give you answers pertaining to your specific situation.

Parenting After Divorce May Become More Difficult

There will be many disagreements – maybe not fair or logical ones. There may be pain when you refer to your ex as “mommy” to your kids, however that is her name to them, and you need to be the adult about it. No matter what are your kids are, please practice HIGH levels of self-control and not bad mouth the other parent in front of your children. You may think with the other spouse out of the picture, that you can make all parenting decisions by yourself. If you’re granted sole legal custody, then you can make major decision about the kid(s) by yourself. Having sole physical custody simply means that you are the parent the kid(s) live with. Make a choice to try to co-parent as best you can. If you can’t get along, you may need to have separate birthdays, and the more times in your kids’ lives you are going to miss out on. Just because you are divorced, doesn’t mean that you have to be enemies.

If the Utah Divorce Decree is Violated, There Can be Serious Consequences.
Once the court has ruled and the papers have been signed, both parties are bound to the terms set forth in the divorce decree. Violating any part of the agreement may put the violator in contempt of court, and your family law attorney can help you file a contempt motion. The most common divorce violations are non-payment of child support, not complying with the visitation schedule, withholding visitation, and non-payment of alimony. If your ex does not bring the kids back at the time set forth in the divorce decree, the police will not help you bring them back unless there is an immediate threat to them. What the police will do is come to your house and make a record of “visitation interference,” which your family law attorney can use as evidence in a contempt hearing. In your court hearing you must be able to state what areas of the decree have been violated, and the burden of proof always lies with the accuser. If you are found in contempt, the violator may be given a period of time to correct the issue or they may face jail time until the matter is resolved.

If you ex is not paying alimony or child support due to unemployment, you can’t make your spouse pay if they do not bring in an income, however, past due child support will accrue. Your family law attorney will likely recommend that you contact the Utah Office of Recovery Services (ORS). The ORS makes sure that Utah parents are responsible for their children’s support, and can help you collect a judgment. Click here for more information on the Office of Recovery Services.

Salt Lake City Divorce Attorney

I understand that a Utah Divorce is emotionally exhausting, even outside of the legal realm. We are a family-owned law firm specializing in handling many difficult circumstances when it comes to Salt Lake City family law situations. We specialize on father’s rights in Utah and are equally skilled in representing a mother’s position as well. Whether you are dealing with divorce, separation, alimony, child support, custody, paternity, domestic violence, or visitation issues, Wall & Wall Attorneys at Law can help. We offer legal representation that is cost-efficient and trustworthy. Call us to take advantage of our free divorce consultation.

Do-It-Yourself Divorce (DIY Divorce)

For uncontested divorces, our most popular service offered is our Do-It-Yourself Divorce. Doing your own divorce through Utah Legal Clinic is easy and economical. The process will save you substantial money and allows you to end a marriage with minimum involvement by lawyers and the legal system. We have been helping people in Utah do their own divorces since 1973. To qualify for a Do-It-Yourself Divorce, your divorce must be completely uncontested. This means you and your spouse must be in full agreement as to all terms. Many times, Utah Legal Clinic can determine quickly over the phone if you qualify for the Do-It-Yourself Divorce service. In most cases, no court hearing is required for uncontested divorces.

We recommend that you come in and visit us and stay away from do it yourself divorce stuff. You wouldn’t do your own dental work. You would do your own open heart surgery. Don’t do your own divorce.
• Intake appointment with a Paralegal and/or Attorney to determine that you qualify for a Do-It-Yourself Divorce;
• Preparation of all necessary documents;
• Notary for all your signatures requiring a notary on the divorce paperwork;
• Detailed step-by-step instructions for filing your own papers and getting all necessary signatures from your spouse;
• Copies of all executed documents for you;
• Copies of all executed documents for your spouse;
• Assistance throughout the steps of your “Do-It-Yourself Divorce,” if needed.

Who Is Eligible?

In order to represent yourself, that is for you to do your own Do-It-Yourself Divorce, both you and your spouse must agree upon all terms of the divorce such as debt division, property division, and child custody.
In order to complete a Do-It-Yourself Divorce, your divorce must be simple. Parties that have been separated for a long time, who have few debts, and who have already physically divided all of their property can easily proceed with a Do-It-Yourself Divorce. We encourage you to have already mutually agreed with your spouse as to all terms of the divorce before you come in for your appointment. You should prepare a complete list of all items that have been resolved, how debts and property should be divided, etc. Our office can help you determine if your divorce is considered simple. Representing yourself in a divorce involving complicated terms or extensive debts and property is discouraged.

Filing Fees

The filing fee for a divorce in Utah is $318. That fee is paid directly to the Court when you file your divorce papers. In some circumstances the filing fee may be waived. For more information on waivers, you can visit the Court’s website.

Utah’s waiting period and other requirements

In Utah, you can expect your divorce to take at least one month. Utah Code Ann. §30-3-18 provides that couples must wait 30 days after filing their divorce petition before a final order can be entered.
Prior to 2019, there was a 90-day waiting period was required in divorce cases. The waiting period could also be waived for any good cause set forth in the divorce papers.
In 2012, the Utah legislature amended Utah Code Ann. §30-3-18 to prevent parties from waiving the 90-day waiting period unless they can establish extraordinary circumstances. While it remains, unclear what may qualify as extraordinary circumstances, it is clear that the legislature wanted to make it more difficult for couples to get a speedy divorce. Under the prior version of the statute, couples needed only to assert that they had been unsuccessful in their attempts to reconciliation and that they were certain any further attempts to save the marriage would be futile. Now, couples will need to show that there is some other pressing reason, such as a new marriage or extraordinary financial situations, in order to obtain a waiver of the mandatory waiting period.
Even under the best set of circumstances, it will likely take at least 90 days after you file your Utah Petition for Divorce to obtain a final order. If the divorce is contested or the required papers are not filed, the divorce may take much longer. There are numerous affidavits, information sheets and other documents which must be filed with the court before the judge will enter the Decree of Divorce.

With contested divorce cases, it may take years to obtain a Decree of Divorce. Couples are required to fully disclose all financial assets through a lengthy discovery process. It may be necessary to retain other professional to assist in the division of property, such as forensic accountants, home appraisers and tax experts. Couples with children frequently retain guardian ad litem attorneys to interview the children or psychologists to complete a thorough custody evaluation.
Hopefully, Utah lawmakers will eventually realize the need for a faster and simpler divorce process. The current Utah belief seems to be that the courts can save marriages by slowing down the divorce process. When a couple decides that their marriage is so irretrievably broken that they need to divorce, it is generally not in anyone’s best interests to try to keep that couple together. Nobody knows whether a marriage can be saved better than the two individuals who are living in that marriage. If a couple is able to work out a divorce resolution without court intervention, Utah should let them be divorced.

The family law team at Ascent Law LLC understands the need to have divorce cases handled as quickly and efficiently as possible. Family law attorney Hailey Black can guide you through a contested divorce or work with you to ensure all required papers for your uncontested divorce are in order. During your initial consultation, we will advise you on your options and provide you with an approximate timeline for resolving your divorce case.

With Children

If you have minor children from your marriage, you and your spouse are required to attend a mandatory one-hour Divorce Orientation and a two-hour Divorce Education Class. Information about both classes can be found at Utah Courts. The cost for the Divorce Orientation is $20 per parent, and the cost for the Divorce Education Class is $35 per parent, for a total per-parent cost of $55. The costs to attend those required Courses are the responsibility of each parent. Proof of attendance for both you and your spouse must be filed with the Court prior to your divorce being entered. You should plan on attending the orientation and parenting class as soon as possible after you have filed your initial papers and received your case number. You do not have to attend that class with your spouse.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

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Loan Modifications

A loan modification is a complete re-structuring of your home mortgage. A loan modification is an agreement between a past due homeowner and a mortgage lender, which change the terms of a mortgage loan and usually cures any past due balances. There are federal loan Modification programs, such as H.A.M.P. (Home Affordable Modification Program), and private loan modification programs available directly through many lenders. Although you can apply for a loan modification yourself you may need or want to retain the assistance of an attorney to help you. Utah Bankruptcy Professionals has assisted hundreds of individuals obtain loan modifications in all the ways discussed above (reduction in amount of mortgage payment and interest rate, adding arrears to end of loan, reducing principal balance, etc.). To succeed, it is important to present yourself and your financial picture in the most favourable and accurate light possible to increase the likelihood the Lender will approve your application for modification. It is also important to demonstrate that the loan modification benefits both you and the Lender. Utah Bankruptcy Professionals has assisted many individuals in preparing, organizing and evaluating documentation requested in applications for loan modifications. Utah Bankruptcy has helped numerous individuals strategize means of increasing income to their households to qualify for a loan modification. The Lenders are very demanding in their requirements that all requested documents are submitted with the application for loan modification. There are often multiple additional requests for documentation.

Loan modifications are either approved or denied by the lender who owns your loan and its designated servicer. The lender’s designated servicer reviews the submitted paperwork and renders a decision based on the loan owners’ guidelines. To clarify, most mortgages today are owned by pension funds and investment groups, and serviced by banks and loan servicing companies. Many consumers falsely believe that major banks such as Wells Fargo and Bank of America own all the mortgage loans they service. The truth is that while they do own some of the loans, they act as a servicer for most loans. As a result, they are instructed by the owner of the note on what guidelines are to be used to determine whether a loan application is approved or denied. However, lenders have been pressured by the government to modify mortgages to assist homeowners and in cases where the mortgage is owned by a government sponsored entity the lenders are directed to modify a mortgage payment equal to 32% of gross income, if reasonable. However, the government left the means to the Lender for determining income was left to the lender along with the definition of “if reasonable”, no timeline was given under which they had to review the modification documentation, and the 32% of gross income to mortgage payment was vague as they were not required to modify to the percentage, only asked to when reasonable. Homeowners who are interested in obtaining a loan modification should be careful and only work with a licensed Utah attorney.

Loan modification scams and foreclosure avoidance fraud are commonplace and too many homeowners have lost their money and even their homes to criminals and con artists. Although ostensibly intended to assist borrowers who are experiencing financial problems, loan modifications have been getting a lot of bad publicity recently, thanks to lawsuits brought by consumers alleging that their lender misled them. Common complaints include allegations that the mortgage company recommended or encouraged borrowers to default on their mortgage to qualify for assistance, only to demand a huge sum of money afterwards. For loan modifications, this can be problematic because lenders never actually sign these documents. They simply send out the paperwork and express willingness to honour the modification until they suddenly and unilaterally terminate it – which they can, because they never signed it. In the meantime, unwary consumers have come to rely on the modification and change their payment habits accordingly, only to be struck with an unexpected notice of default. A loan modification is a change to the original terms of your mortgage, typically due to financial hardship. The goal is to reduce your monthly payment and this can be achieved in a variety of ways. Your lender will calculate a new monthly payment based on amendments made to your initial mortgage contract.

Some types of modification are better than others, and your lender might not offer all of them, although it might have additional options. Options include:
• Principal reduction: Your lender can eliminate a portion of your debt, allowing you to repay less than you originally borrowed. It will recalculate your monthly payments based on this decreased balance, so they should be smaller. Lenders are typically reluctant to reduce the principal on loans, however. They’re more eager to change other features which can result in more of a profit for them—not a loss. If you’re fortunate enough to get approved for a principal reduction, discuss the implications with a tax advisor before moving forward because you might find that owe taxes on the forgiven debt. This type of modification is usually the most difficult to qualify for.
• Lower interest rate: Your lender can also reduce your interest rates, which will reduce your required monthly payments. Sometimes these rate reductions are temporary, however, so read through the details carefully and prepare yourself for the day when your payments might increase again.
• Extended term: You’ll have more years to repay your debt with a longer-term loan, and this, too, will result in lower monthly payments. This option is commonly referred to as “re-amortization.” But longer repayment periods usually result in higher interest costs overall because you’re paying interest across more months. You could end up paying more for your loan than you were originally going to pay.
• Convert to a fixed rate: You can prevent problems by switching to a fixed-rate loan if your adjustable-rate mortgage is threatening to become unaffordable.
• Postpone payments: You might be able to skip a few loan payments. This can be a good solution if you’re between jobs but you know you have a pay check out there on the horizon somewhere, or if you have surprise medical expenses that will be paid off eventually. This type of modification is often referred to as a “forbearance agreement.” You’ll have to make up those missed payments at some point, however. Your lender will add them to the end of your loan so it will take a few extra months to pay off the debt.

Depending on the type of loan you have, it might be easier to qualify for a loan modification. Government programs like FHA loans, VA loans, and USDA loans offer relief, and some federal and state agencies can also help. Speak with your loan servicer or a HUD-approved counsellor for details. For other loans, try the Fannie Mae Mortgage Help Network. The federal government offered the Home Affordable Modification Program (HAMP) beginning in 2009, but that expired on Dec. 31, 2016. The Home Affordable Refinance Program (HARP) expired two years later at the end of 2018. But HARP has been replaced by Freddie Mac’s Enhanced Relief Refinance Program and by Fannie Mae’s High Loan-to-Value Refinance Option, so these might be a good place to start for assistance. Modification is an alternative to foreclosure or a short sale. It’s easier for homeowners and it tends to be less expensive for lenders than other legal options. You get to stay in your home, and your credit suffers less from modification than it would after a foreclosure. In some states, they’re not legally permitted to charge a fee in advance to negotiate with your lender, and in other states, they’re not allowed to negotiate for you regardless of when you pay them. Of course, don’t count on them telling you this. A loan modification is a permanent restructuring of the mortgage where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment. Many different loan modification programs are available, including proprietary (in-house) loan modifications, as well as the Fannie Mae and Freddie Mac Flex Modification program. If you’re currently unable to afford your mortgage payment, and won’t be able to in the near future, a loan modification might be the ideal option to help you avoid foreclosure.

While a loan modification agreement is a permanent solution to unaffordable monthly payments, a forbearance agreement provides short-term relief for borrowers. With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period. In exchange, the borrower must resume the full payment at the end of the forbearance period, plus pay an additional amount to get current on the missed payments, including principal, interest, taxes, and insurance. The specific terms of a forbearance agreement will vary from lender to lender. If a temporary hardship causes you to fall behind in your mortgage payments, a forbearance agreement might allow you to avoid foreclosure until your situation gets better. In some cases, the lender might be able to extend the forbearance period if your hardship is not resolved by the end of the forbearance period to accommodate your situation. In forbearance agreement, unlike a repayment plan, the lender agrees in advance for you to miss or reduce your payments for a set period of time. A loan modification company, also known as a mortgage modification company, is a business that helps homeowners modify the terms of their home loans or mortgages.

When a mortgage is modified, the original terms of the home loan contract between a lender and a borrower are renegotiated and then altered, usually in the favour of the borrower. Many homeowners choose to obtain modifications to their home loans when they are struggling to pay their mortgages or hope to avoid foreclosure. In order to expedite the loan modification process, homeowners may rely upon the services of a local loan modification company. By working with company that handles loan modifications, homeowners “receive the advice, resources and services they need to obtain the best terms possible for their modification while avoiding scams, which are prevalent in the loan modification industry.” Additionally, homeowners who are facing foreclosure may be able to remain in possession of their homes if they work with their lenders to modify their mortgage. Loan modification can also make homeowners’ monthly loan payments more affordable. Loan modification programs are offered by loan modification companies and can be very helpful to homeowners who are struggling with their mortgages. Many of these programs enable homeowners to pay zero advance fees, reduce monthly mortgage payments and stop foreclosure. Loan modification companies can also inform homeowners of federal programs, which may be advantageous. Loan Modification Company Software: Software built for existing companies to help process paperwork and do analysis. These range from Customer Relationship Manager (CRMs), to online portals and also internal analysis.

Loan modification is the systematic alteration of mortgage loan agreements that help those having problems making the payments by reducing interest rates, monthly payments or principal balances. Lending institutions could make one or more of these changes to relieve financial pressure on borrowers to prevent the condition of foreclosure. Modifications were a fix to the crash as litigation has ensued as the lenders reorganized and renamed the lending institutions and government agencies are to closely monitor them. Prior to modifications loan holders that experiences crisis would use Loan assumptions and Loan transfers to keep the note in the 1930s. During the Great Depression, loan transfers, loan assumption, and loan bailout programs took place at the state level in an effort to reduce levels of loan foreclosures while the Federal Bureau of Investigation, Federal Trade Commission, Comptroller, the United States Government and State Government responded to lending institution violations of law in these arenas by setting public court records that are legal precedence of such illegal actions. The legal precedents and reporting agencies were created to address the violations of laws to consumers while the Modifications were created to assist the consumers that are victims of predatory lending practices. During the so-called “Great Recession” of the early 21st century, loan modification became a matter of national policy, with various actions taken to alter mortgage loan terms to prevent further economic destabilization. Due to absorbent personal profits nothing has been done to educate Homeowners or Creditors that this money from equity, escrow is truly theirs the Loan Note Holder and it is their monetary rights as the real prize and reason for the Housing Crash was the profit n obtaining the mortgage holders Escrow?

The Escrow and Equity that is accursed form the Note Holders payments various staff through the United States claimed as recorded and cashed by all staff in real-estate from local residential Tax Assessing Staff, Real Estate Staff, Ordinance Staff, Police Staff, Brokers, attorneys, lending institutional staff but typically Attorneys who are also typically the owners or Rental properties that are trained through Bankruptcies’ Mediation is usually a great way for a plaintiff and defendant to sit down with a neutral arbiter to hash out their differences and come to a resolution that is usually better than continued litigation. Mediation is successful in all types of disputes including personal injury cases, contract disputes and even divorces. However, in these cases, circuit court judges will readily punish a party who fails to attend mediation or who attends but fails to comply with the mediation order. The Home Affordable Modification Program (HAMP) was established on February 18, 2009 to help up from 7 to 8 million struggling homeowners at risk of foreclosure by working with their lenders to lower monthly mortgage payments. The Program is part of the Making Home Affordable Program which was created by the Financial Stability Act of 2009]. The program was built as collaboration with banks, services, credit unions, the FHA, the VA, the USDA and the Federal Housing Finance Agency, to create standard loan modification guidelines for lenders to take into consideration when evaluating a borrower for a potential loan modification. Over 110 major lenders have already signed onto the program. The Program is now looked upon as the industry standard practice for lenders to analyze potential modification applicants. Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money or their home. Scammers make promises that they cannot keep, such as guarantees to “save” your home or lower your mortgage, often for a fee. Scammers may pretend that they have direct contact with your mortgage servicer when they do note. Even amongst reputable refinance organizations, the fundamental education of the house owner is not stressed. Some may even request struggling homeowners to pledge their time to become politically active.

The controversy exists between personal integrity and the concept of a ‘right to homeownership’. Many euphemisms are used to implicitly stress the concept that homeownership is not the result of a lifetime of effort but a government-given right. These euphemisms like “HOPE, relief and Save-the-Dream” as used above in naming or implementing the loan modification programs. The origins of the word ‘mortgage’ are a death pledge—a concept that perhaps even exceeds the common view of personal integrity. At the foundation of homeownership should be a personal long-term commitment to pay the terms of the mortgage. On the banker’s side of the contract, their business model is regulated by the ‘social good’ which are implemented by government by chartering banks. If the banks implement policies that lead to financial bubbles and panics, a democratic government is equipped with the tools to unchartered and redistribute banks assets.

Loan Modifications In Utah Free Consultation

When you need legal help with a loan modification in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

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Can I Dispute A Contract?

A contract is a legally binding agreement between two parties, which obligates those parties to perform specific acts. In order for the contract to be enforceable, each party must exchange something of value, or “consideration.” Additionally, all involved parties need to have a solid understanding of every term of the contract; and, they must be in mutual agreement on the terms. Therefore, a contract dispute occurs when any party involved in a contract has a disagreement regarding any of the contract terms or definitions. In contract law, a contract dispute is generally considered a breach of contract. A breach of contract is when the agreement is not kept due to one party failing to fulfill their obligation according to the terms of the contract.

two main types of breach of contract

• Material Breach of Contract: A material breach of contract is a breach in which the agreement is considered “irreparably broken” due to the breach being so crucial and deep that it renders the purpose of making the contract totally useless. This is sometimes referred to as a total breach. The non-breaching party does not have to perform their end of the contract, and they can sue the breaching party in return for any damages caused by the breach; and
• Minor Breach: A minor breach is sometimes referred to as a partial breach, and occurs when the breach does not affect the heart of the contract. Both parties are required to still carry out their obligations, but the non-breaching party may still sue for damages.
In order for a contract to be valid and legal, the following elements must be met:
• There must be a valid offer;
• An acceptance of that offer; and
• Some form of consideration for the goods or services at issue
Contract disputes may occur during any of the elements mentioned above. Commonly, contract disputes are due to:
• Issues with drafting and reviewing a contract, such as during the discussion regarding terms and conditions;
• Offer and acceptance disputes;
• Mistakes and errors made concerning the terms of the contract;
• Disagreements as to the meaning or definition of a technical term included in the contract; or
• Fraud or coercion, such as a party being forced or tricked into signing the contract.
Even if a contract is properly formed, there may be disputes, such as disputes regarding the performance of contract duties. Further, if a party fails to perform their agreed upon obligations, there may be grounds for a legal dispute. For example, if a seller fails to deliver the goods or services that were purchased by the buyer, then the buyer may seek out various legal remedies for non-performance of the sales contract.

remedies for contract disputes

• Legal Remedies: Types of damages available for a breach of contract include compensatory damages (the breaching party pays the promised party what was promised elsewhere in the contract), restitution (the breaching party is required to pay the other party back), and liquidated damages (agreed upon damages that the parties agree to pay in the event of a contract breach); or

• Equitable Remedies: Equitable remedies are legal remedies that allow the non-breaching party to recover monetary damages. Equitable remedies are actions that the court prescribes for the purpose of resolving the breach of dispute. Usually, this entails the parties taking certain actions to correct errors or perform their contract duties.

How Can Contract Disputes Be Avoided?

The best way to avoid contract disputes is to be clear on the contract terms. Also, in some instances, it can come down to one single word or definition contained within the contract. Being very clear in the duties of the parties in the contract is extremely important. Defining highly technical words or trade terms can help you avoid contract mistakes and misunderstandings. Continually documenting negotiations through writings is important, and you should document negotiations of the contract at each step of the way. This means you should keep track of the history of offers, amount of product, prices, and other important terms will help minimize any later disputes related to forgetting some of the terms of the contract. The final contract should also, obviously, be in writing. There will be some estimating and negotiating, so all finalized amounts should be stated specifically during contract drafting. Be especially careful in cases where you are working with a new negotiator, or when a product changes. Checking for personnel credentials, as well as doubles checking the terms to avoid contract fraud, is essential to avoiding contract disputes and breaches. Additionally, knowing the goal of the contract before entering an agreement is vital to avoiding disputes. You should be able to state each negotiating point very clearly, such as selling price, product quality, etc.

How to Handle Contractual Disputes

Yet it is worth emphasizing that many contractual disputes can be avoided if the parties take the time to work out essential details ahead of time. Once again, it is highly advisable to work with legal counsel when negotiating major contracts, and or to have an attorney work with you in preparing a form contract that you may use with your customers. Such steps may minimize your risks and ensure that you are in the best possible position should a dispute arise.

Are There Grounds to Rescind the Contract?

A contract requires a “meeting of the minds” as to key terms of an agreement. So in some special cases there may be grounds to ask a court to for rescission of a contract. For example, one might be wise to talk to legal counsel about their options if they believe they were fraudulently induced into signing the contract based on false representations. But contracts are generally presumed binding and parties are assumed to be aware of all terms in a written contract. Moreover, courts will not usually allow extrinsic evidence that the parties meant for the contract to include terms that were not included in a written agreement.

What to Do When Someone Threatens to Breach the Contract

Major problems can arise if one party is threatening to walk away from the contract. Or perhaps they may proceed with providing certain services, but are threatening to repudiate other responsibilities under the agreement or refusing to satisfy certain conditions. For that matter, innumerable problems might arise from your contractor using a lower grade material than you wanted, to simply performing shoddy work. Or maybe your landlord is trying to tell you that you cannot use part of the property that you have leased. In these cases, you may be able to resolve matters through negotiation. Of course another option if things are serious may be to ask an attorney to write a letter. To be sure, a strongly written letter from an attorney can go a long way toward bringing people to their senses, or the negotiating table. Of course that may also add unnecessary strain if you trying to maintain a friendly working relationship. Yet that is not to say that you should shy away from consulting legal counsel behind the scenes as disputes arise. On the contrary, it is important to consult with legal counsel early for reasons that we will explain. And of course, in some cases it may be acceptable to overlook issues for the sake of maintaining a healthy relationship although it is probably always a good idea to have open communication about your mutual expectations. For example, suppose that you’ve contracted to have “top-rate” produce delivered every other morning at 5AM. Perhaps the company with whom you have contracted occasionally delivers less than stellar produce, or is a bit late in these deliveries. In these cases you might reasonably seek negotiate a discount, and or you might simply remind them of their obligations. But supposing that this becomes a continued pattern, you might have to take a more serious tone. One options is to seek a formal “assurance,” that the other party will live up to its contractual obligation to deliver “top-rate” produce on the previously agreed upon schedule. The idea is that the party seeking an “assurance” is (theoretically) allowed to stop performance of his or her end of the bargain unless and until the allegedly breaching (or soon to be breaching) party provides adequate assurances that the contract will be performed as originally contemplated. However, this is not to be done lightly. You are only justified in withholding performance of a contract if you have an objectively reasonable ground for believing that the other party intends to breach the contract. And the risk is that a court might hold that you are in the wrong which would make you the breaching party. But of course, it is generally advisable to consult with an attorney before taking such action.

Can I Breach My Contract?

It is usually possible to breach a contract. But it is rarely advisable. There will almost always be a cost for doing so including reputational costs. For one, the other party may be entitled to damages at law. To be sure, when you enter into a binding contract, you are entitled to the value of your bargain. Thus while it may be efficient (and even rationale) to breach a contract under certain conditions, you may very well end up having to pay something to the other party. Of course the prospect of paying money damages will almost always counsel against breaching a contract because it will eat away from whatever cost-savings you are hoping to achieve by walking away from your original agreement. And that is to say nothing of the exorbitant costs that you may have to pay in legal fees if litigation ensues. For that matter, you may also be on the hook to pay their attorney’s fees in such a case. (Conversely, an effective way to discourage breach of contract is to include contractual terms requiring a breaching party to cover attorney’s fees as may be necessary to collect on payments or to force performance). Moreover, in some cases, a court might still require you to perform your side of the bargain. This remedy is available in cases where monetary damages will not suffice to make a contracting party whole.

Negotiations and Settlement

Depending on the circumstances, it may be reasonable to allow a minor breach especially where you want to preserve a long-term relationship. In those cases it may be best simply to make clear your future expectations, and or to warn that you will not tolerate breaches in the future. More often, in these cases the dispute can be resolved through negotiations. To be sure, the vast majority of contractual disputes resolve in settlement of some sort. And for many reasons it is often best to try to find a compromise. As noted above, you might accept a shipment of less than perfect produce if the other party agrees to give you a discount for that delivery. But especially with high dollar controversies, it may be necessary to work out a more formal agreement to resolve disputes. Since a settlement is in itself a contract, it is generally advisable to work with legal counsel. And, once again, it is important to realize that tensions ratchet up when you begin threatening litigation. But that may be necessary in certain cases. Once again, a well written letter from an attorney can go a long way in resolving a dispute in many cases. But if that fails, it may be time to either consider working with a mediator, or bringing a lawsuit.

Bringing Legal Action

You are within your rights to sue over a material breach. But litigation should be an option of last-resort. Indeed, lawsuits are expensive and the parties to the suit will almost never leave on good terms. So before filing suit, you should consider:
• The amount of money in controversy relative to the cost of litigation;
• your ongoing business relationships,
• what you ultimately hope to accomplish, and
• whether your contract includes provisions concerning potential payment of attorneys’ fees in cases of breach, or otherwise. You should absolutely consult an attorney. But at the end of the day, you must make a judgment call as to whether it is worth pursuing a lawsuit—bearing in mind that most lawsuits end in settlement.
You should also remember that lawsuits can be long and drawn-out affairs. So when consulting with an attorney, you should seek candid advice about “best potential outcomes.” And remember, there is usually a risk. An honest attorney will almost always speak in terms of probable outcomes (i.e., this is a strong or weak case).

Do I Have Any Duties to the Breaching Party?

While you are within your legal rights to seek enforcement of a contract, it is important to bear in mind that you generally have a duty to mitigate your damages. This means that you need to find a way to lower or offset the amount of damages you are seeking to recover from the other party. For example, suppose you have entered into a commercial lease with a tenant who is now seeking to break the lease. Technically the tenant is on the hook to cover the agreed upon rent through the entire term of the agreement; however, your duty to mitigate damages requires that you actively seek out another tenant. Thus you might minimize damages by finding someone else to take over the lease. The tenant will owe you something, but his or her liability is capped once you find a replacement tenant.

What Happens after a Contract is Breached?

When a breach of contract occurs or is alleged, one or both of the parties may wish to have the contract enforced on its terms, or may try to recover for any financial harm caused by the alleged breach. If a dispute over a contract arises and informal attempts at resolution fail, the most common next step is a lawsuit. If the amount at issue is below a certain dollar figure (usually $3,000 to $7,500 depending on the state), the parties may be able to resolve the issue in small claims court. Courts and formal lawsuits are not the only option for people and businesses involved in contract disputes. The parties can agree to have a mediator review a contract dispute, or may agree to binding arbitration of a contract dispute. These out-of-court options are two methods of “alternative dispute resolution.”

Remedies for a Breach of Contract

When an individual or business breaches a contract, the other party to the agreement is entitled to relief (or a “remedy”) under the law. The main remedies for a breach of contract are:
• Damages,
• Specific Performance, or
• Cancellation and Restitution

Contract Damages

The payment of damages — payment in one form or another — is the most common remedy for a breach of contract. There are many kinds of damages, including the following:
• Compensatory damages aim to put the non-breaching party in the position that they had been if the breach had not occurred.
• Punitive damages are payments that the breaching party must make, above and beyond the point that would fully compensate the non-breaching party. Punitive damages are meant to punish a wrongful party for particularly wrongful acts, and are rarely awarded in the business contracts setting.
• Nominal damages are token damages awarded when a breach occurred, but no actual money loss to the non-breaching party was proven.
• Liquidated damages are specific damages that were previously identified by the parties in the contract itself, in the event that the contract is breached. Liquidated damages should be a reasonable estimate of actual damages that might result from a breach.

Contract Attorneys Free Consultation

When you need legal help with a contract in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews

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