I should have had a lawyer…

Posted on September 3, 2010 by admin

Introducing a new category: “Should have had a lawyer”.  This will be a weekly posting category, usually on Friday.

Do it yourself legal situations that did not not turn out quite right.  The lesson being the person should have retained a lawyer.  Also cases of I should have told my lawyer.

The stories and situations which will be discussed here are intended to serve as examples of legal situations that ought to have been handled by an attorney.

Perhaps you have heard the cliche “A person who represents himself…”  This is often true whether such self-representation is in the courtroom or not.  Our law firm encounters many situations in which people have drawn their own contracts, made their own wills and the like. Typically the people involved are very intelligent, but not trained in legal matters.  Attorneys are trained and experienced in the law and in detecting and preventing potential legal hazards.  In other words, an attorney has the unique ability to foresee the legal consequences and potential problems, and then determine the best way to prevent or deal with them.

Next week: The case of the self-written purchase and finance contract that went awry in more ways than one.

For all of your legal needs simple or complex contact Purple Law Firm.

Mobile Site

  • Share/Bookmark
Posted in Should have had a lawyer | Tagged , , , , , | Leave a comment

Wills and Trusts: Protecting your child’s inheritance.

Posted on September 2, 2010 by admin
Purple Law Firm attorneys write wills and trusts. We are Chattanooga lawyers experieced in estate planning

Plan for your Future and your child's future

At Purple Law Firm we often encounter clients who have a child who is not in a good position to inherit money or property without “blowing” it.  Sometimes the child is involved in drugs, criminal activity, or just not responsible with financial matters. Other times the client is concerned about an issue with their child’s spouse, or what would happen to the inheritance in the event of a divorce.

What instrument (legal document) offers the best solution to such a problem?  Is it a Last Will and Testament or a Trust?

First, lets look at a standard will:  You bequeath or devise (give) a certain amount of money or property, perhaps your entire estate to your child upon your death.  It is now your child’s money/property to do with as he/she sees fit.  Now, sometimes wills are written with a “testamentary trust” clause – which means that upon your death your Executor, the administrator of you will, is instructed by you to set up a Trust for your child.  All that child’s inheritance is then placed in Trust to be controlled by a Trustee.  This option, a testamentary trust, typically requires probate.

What would a Living Revocable Trust do to resolve this issue? A Living Revocable Trust is an agreement between the Settlors or Grantors (persons placing property into the Trust) and the Trustee of the Trust.  In the situation described above, the Trust Agreement would require that your child’s portion or share of the estate (inheritance) would remain in the Trust for a specified period of time or for the child’s lifetime, depending on the specific issues.  His / her money and property would be managed for his / her benefit by the Trustee.

The advantage to a Trust as opposed to will in this scenario is that a Trust does not require probate or court supervision of any kind. Probate is often very costly and time consuming, and your estate may be charged court costs, attorney fees, and possibly administrator fees.  When you pass, the Trust continues for the benefit of your child for the period of time you specify.  You also enjoy the other advantages of a Living Trust during your lifetime. Such as, the ability to name a person to manage your financial affairs in the event that you are no longer able to.  Another advantage is that Trusts offer a certain level of protection of your assets against judgment creditors. (Speak with an attorney about this issue)

Before you decide what plan is right for you consult with an attorney who is experienced in estate planning (both wills and trusts).

Attorney Jim Purple has been planning estates for over 27 years.

Review: How is a Will Different from a Trust

  • Share/Bookmark
Posted in Disclaimer Regarding Specialization, Estate Planning : Wills Trusts Estates | Tagged , , , , , , , , , , , | Leave a comment

Tennessee Child Support: How is it calculated?

Posted on August 31, 2010 by admin

Tennessee Child Support is calculated based upon the Child Support Guidelines which are written by the Tennessee Department of Human Services.  Tennessee child support is now a shared income model, which means that the income of both parents is used in the calculation.

A few terms: Primary Residential Parent – this is the parent with whom the child or children spend the majority of time during the year;  Alternate Residential Parent -   the parent with whom the child spends the least time.

In a typical divorce the Primary Residential Parent has the child about 285 days a year, and the spends about 80 days with the Alternate Residential Parent.

The first step in the basic calculation method is to add both parent’s incomes and find the “Basic Child Support Obligation” (BSCO) for the total combined income.  The BSCO for a certain income amount and number of children is set by the Department of Human Services.  Each parent is assigned a proportionate share of the basic support obligation.

For example: a couple who has one child and the Mother will be the Primary Residential Parent and the Father will spend 95 days withe the child per year.  Mother earns $2,000.00 per month and Father earns $3,000.00 per month, the total income is $5,000.00. Mother contributes 40% and Father contributes 60% to the total income.  Mother has 40% of the obligation and Father has 60% of the obligation.  The BSCO for a combined income of $5,000.00 and one child is $827.00 per month.  The father would be responsible to pay $493.80 per month to Mother.

The next step in the calculation is to determine the number of days the child or children spend with the Alternate Residential Parent and to calculate any parenting time adjustments (+/-) to the BSCO. The BSCO is  formulated with the “standard” parenting time between 80-90 days, so if the the child spends more than 90 days a year with the ARP there will be a credit subtracted from the support obligation.   If the child spends less than 70 days with the ARP then the child support obligation is increased.    From our example the Father would receive a credit of $13.53 per month to be subtracted from his monthly support obligation.

The next step is to determine each parent’s share of health insurance, work related daycare, or other special expenses.  The child support obligation will be increased by the payor’s share of those expenses. From our example Mother bears 40% of these expenses while Father bears 60%. Lets say that the health insurance premium is $100.00 per month for the child and the Mother carries the child on her employer’s health insurance plan.  Father would be responsible for $60.00 per month for health insurance and that amount will be added to his support obligation.

In our example the Father pays: $493.80 (60% of BSCO) – $13.53 (parenting time adjustment) + $60.00 (60% of health insurance premium) for a total monthly obligation of $540.27.

Please note that the above is a representation of basic child support calculations.  The Tennessee Child Support Guidelines are quite complex, and ought to be calculated by an attorney or the local child support office.

If you have questions about child support contact Purple Law Firm to schedule a free consultation with one of our attorneys. Mobile Web

Review: Can Child Support be Waived? Getting a divorce in Tennessee

  • Share/Bookmark
Posted in Divorce, Domestic Relations | Tagged , , , , , , , | Leave a comment

Tennessee Divorce Can child support be waived?

Posted on August 30, 2010 by admin

People often ask: Can we agree to no child support? or Can child support be waived? Of course nothing in this post can replace the advice of an attorney. (review) But, generally speaking, child support can not be waived, by agreement or otherwise.  In Tennessee as well as other states child support is determined by law.  The Tennessee Child Support Guidelines must be followed by the Court.  The Court is given the ability to deviate (or vary) from the guidelines, but this is rarely done, certainly to the extent of “waiving” child support.  The court must specifically find that a deviation or variance from the Child Support Guidelines is proper, and that for the such deviation will still provide adequate support for the child or children.

A case in point: Attorney Jim Purple, represented a client (the mother) in a divorce action.  The mother had a relatively low income in comparison to the father. The couple had a teenage child who spent about equal time with each parent, pretty much as she chose, and the parents agreed, but it was in the best interest of the child that the father be the primary residential parent.  Attorney Purple was able to negotiate a settlement in which the father was granted primary custody of the child.  Our client, the mother agreed to wait on selling the marital home, or otherwise getting her share of the equity, until the child was over eighteen and either married or out of school.  This allowed the child to remain in the home she had always known, which was suitable, and the father was financially able to adequately support the child.  The court found that child was properly financially supported and that the deviation of no support was proper, in part due to the mother’s temporary waiver of her share of the equity in the marital home.

This is a rare situation, and it illustrates the the type of situation that may allow for a deviation or waiver of the child support obligation.

If you have questions about child support, contact a lawyer.  Attorney Jim Purple and Purple Law Firm, have 27 years experience in child support and divorce matters.

Other Articles of Interest: Divorce and alimony About Divorce in Tennessee

  • Share/Bookmark
Posted in Divorce, Domestic Relations | Tagged , , , , , , | 1 Comment

Follow “The Law and You” on Facebook

Posted on August 29, 2010 by admin

You can follow “The Law and You” and Purple Law Firm on Facebook.

Just another way that the attorneys of Purple Law Firm are reaching out to the community of Tennessee.

You can also follow this blog on RSS Feed

  • Share/Bookmark
Posted in Announcements | Leave a comment

Bankruptcy Judge refuses to set aside sale

Posted on August 29, 2010 by admin

Bankruptcy Court Judge, Shelley Rucker,  has declined to set aside the controversial sale of a 15-acre tract by I-75 that bankrupt millionaire Toby McKenzie maintains is worth as much as $2 million – not the $2,500 that was paid for it.

However, Judge  Rucker did modify the terms of the sale. In a 20-page opinion, she said the wording “free and clear of the liens of Citizens Bank” should be removed from the document.

Richard Banks, attorney for Mr. McKenzie, had argued that Trustee Kenneth Still made a mistake when he allowed the sale to auto dealer Nelson Bowers to proceed. He said Mr. McKenzie would be willing to pay $100,000 for it, instead of the $2,500 price paid by Mr. Bowers.   (Courtesy of chattanoogan.com) Read More

According to Judge Rucker Mr. McKenzie, the Debtor, failed to object to the sale in a timely manner.  She said, “The court finds that debtor’s medical condition in the fall of 2009 was not an excuse for failing to object to the sale motion or to seek reconsideration of the sale order.”

The judge did modify the sale be removing the language that made the sale free and clear of the mortgage, which means the debtor may have to repay that loan in his Chapter 13 Bankruptcy.

This case is a prime example of the complexities involved in bankruptcy.

If you have questions about bankruptcy contact an experienced bankruptcy attorney

Review Previous Bankruptcy Posts

  • Share/Bookmark
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankrupcty | Tagged , , | Leave a comment

Incorporating a non profit in Tennessee

Posted on August 28, 2010 by admin

You have an idea for a ministry or public service organization.  Or perhaps you are already running an organization.  The question naturally arises, Should we incorporate?  The answer in most cases is: Yes.  Consult with an attorney who is experienced in the area of non-profit corporations, contact Attorney Jim Purple.

What does it mean to incorporate, or form a corporation?

When you incorporate you create a separate entity, kind of an artificial person.  From that point forward everything is done in the name of the corporation by officers, directors, employees, members who are acting on behalf of the corporation, a separate entity.

Why should you incorporate?

There are several reasons to incorporate your non-profit organization. Perhaps the most important reason is liability.  When your incorporate you create a level of protection from the liability of other persons. This is commonly referred to a “corporate veil”.

For example, you are a public service organization that works with children.  One of you volunteers fails to keep a good watch on one of the children, and the child gets hurt.  If you are incorporated it is the corporation (and maybe the volunteer) that bears the liability, or financial responsibility, not you.  (Be sure to seek the advice and counsel of an attorney about the issue of liability)

Many times non-profit organizations want to be recognized officially by the Internal Revenue Service.  In most cases this requires recognition as a “501(c)3″ organization.  This designation comes from the section of the Internal Revenue Code, and is the official non-profit, tax exempt designation.  To obtain this designation you must complete a rather intensive and detailed application and submit it to the IRS for approval along with a fee.

At Purple Law Firm, our attorneys are experienced in the formation of non-profit organizations and successful completion of the 501(c)3 process.  Attorney Jim Purple has formed numerous non-profit corporations, including ministries, and service organizations, as well as churches.

For Example: Dental Angel Fund Foundation Network 7 Media Center, Inc.

Contact a lawyer who is experienced in the area of non-profit organizations, contact attorney Jim Purple.

Mobile Web

A look ahead: For Profit Corporations, Types of Corporate Entities

  • Share/Bookmark
Posted in Corporations | Tagged , , , , , , , , | Leave a comment

Tennessee Divorce What about alimony?

Posted on August 26, 2010 by admin

There are several types of alimony and the numerous factors that a divorce court must weigh in order to determine if alimony is appropriate and if so, the type and amount to be awarded. Alimony is quite complicated, and involves many factual based elements, so be sure to consult with an experienced  divorce lawyer to explore if alimony may be an issue in your case.

In general, alimony is spousal support which is typically awarded to the economically disadvantaged spouse.  The court will first determine if alimony is appropriate under the circumstances by weighing several factors, like duration or length of the marriage, relative earning capacity of each spouse, division of marital property, etc.  Then the court will determine the amount and type of alimony.  The basic goal of alimony is to prevent, if possible,  a massive loss of standard of living to one spouse while the other spouse maintains a relatively stable standard of living.

This article will focus on the different types of alimony  available under Tennessee law.

1.  Periodic Alimony also called alimony in futuro:

This is the traditional type of alimony.  The Court weighs all of the relevant factors and determines the amount per month that should be paid to the recipient spouse.  Typically periodic alimony is long term or permanent.

2.  Rehabilitative  Alimony

This is a separate class of spousal support.  Rehabilitative alimony as it name implies, is designed to rehabilitate the disadvantaged spouse.  This type of alimony is temporary in nature and is designed to provide for the disadvantaged spouse until a reasonable earning capacity is achieved.  Again the goal here is stabilize the standard of living and, if possible.

3.  Alimony in solido, or lump sum alimony

A one time payment of a certain sum to the disadvantaged spouse.  This may be used as a substitute for other forms of alimony or in addition.  This type of alimony is commonly used to equalize and/or supplement the division of marital property.

4.  Transitional Alimony:

Another form of short term alimony, typically used when the need for “rehabilitation” is not necessary but a time of adjustment is needed.

5.  Alimony pendente lite or alimony pending litigation of the divorce:

A temporary form of spousal support which is awarded during the pendency of the divorce action.  Typically the court only looks at the financial need of the requesting spouse and the ability of the other spouse to pay.

Again, alimony is a very complex issue which requires a thorough review of the particular facts of your situation.  To determine if you may be able to get alimony or may have to pay alimony,  consult with an experienced family law attorney.

Review: Getting a Divorce

A Look Ahead: Case examples of each type of alimony.

Attorney Jim Purple has over 27 years experience in domestic relations and divorce. Contact him to schedule a free consultation.

Mobile Web: Contact

  • Share/Bookmark
Posted in Divorce, Domestic Relations | Tagged , , , , , | Leave a comment

Do it yourself legal forms

Posted on August 24, 2010 by admin

In this information age, the internet is the first place many people go to get news, information, find a store, product, or service, including legal services.  Today, many people are even searching for and finding do-it-yourself legal forms.

Lawyer in a box. Do-it-yourself legal forms. Caution no attorneys used to prepare the forms.

Use with extreme CAUTION!

Do it yourself divorce? According to Google there are over 4 million monthly searches for “dissolution of marriage forms”

In addition there are over 200,000 monthly searches for power of attorney forms, and thousands of searches for making your own will, do you own will, last will and testament forms, etc.

That is a lot of people trying to do their own legal work without an attorney.  But, is this practice wise?  Sure, it saves you money, or does it?  Who prepared these forms, are they even approved by an attorney licensed to practice law in Tennessee? Most of the time what you find on the internet is not written or approved by an attorney, certainly not a licensed Tennessee attorney.

The above examples  very rarely involve simple issues that should be reduced to a fill in the blank form.

A divorce or dissolution of marriage typically involves property rights and creditor issues, often times a divorce involves custody of children and child support.  Are these issues really something that you want to deal with without the benefit of sound legal advice and counsel?  What happens if you don’t prepare the documents correctly or don’t think about an issue until after the divorce is granted and final?  Then you’ll have to retain a lawyer to straighten out the problem.  What if a debt is not properly dealt with and the creditor sues you after the divorce?  Or what if child custody issues were not properly resolved?  Did you know that in order to modify a final child custody decree you have to prove a substantial and material change in circumstances?  Review: Getting a divorce

A power of attorney is perhaps the most powerful legal document which has ever been created.  It grants a person the absolute authority to act as if that person were, in fact, you.  Should you really execute a power of attorney form without the counsel of an attorney who can advise you?   Is a power of attorney what you really need? Perhaps there is a better  solution to your issue. Review: What is a Durable Power of Attorney

Making your own will, is it really as simple as filling in the blanks with a pen, or completing the downloaded questionnaire?  Our law firm receives many calls from clients who “need a simple will”, however most of the time that “simple” will is much more complicated than the person realized.  We have also encountered a number of do-it-yourself wills that were not properly written and could not be probated.  Of course the person that wrote it was deceased.  Review: How to make a will

Most legal issues are not as simple as they might appear.  It is always best to consult an attorney in any legal situation.  Doing it yourself may save money in the short run, but often times costs more in the long term.    Attorneys are trained and experienced in dealing with legal matters much like surgeons. Think about it: Would a person get a book on do-it-yourself surgery?

Remember this: the internet, and even this blog, is not a substitute for good face to face legal advice from a lawyer.  Contact an attorney today.

  • Share/Bookmark
Posted in Divorce, Domestic Relations, Estate Planning : Wills Trusts Estates, General Legal Issues | Tagged , , , , , , , | Leave a comment

Short Sale and Bankruptcy Options when facing foreclosure.

Posted on August 23, 2010 by admin

Chattanooga attorney Jim Purple believes in justice and a just result for you

Lady Justice and Attorney Jim Purple are here for you

Part 4 of of the Facing Foreclosure Series.

What is a short sale and can it resolve a mortgage crisis?

A short sale is a sale of real estate, your home for instance, for an amount less than what you owe on it.  In a typical short sale, you and the lender (bank or mortgage company) have agreed in advance to allow the house to be sold at a certain price which is less than the balance of the mortgage.  So why would a lender agree to such a proposition?  In a foreclosure the lender incurs fees like attorney fees, publication fees, real estate or auction fees.  If the property doesn’t sell then the lender has vacant property to maintain until it is sold sometime in the future.

In a short sale you, not the bank, would be responsible for finding a buyer. You would also be responsible for any real estate agent fees or other fees associated with the selling of the home.

The benefit to you in a short sale arrangement is that you can usually remain in the home until it is sold, and have adequate time to move.  Typically (but not always) you also avoid payment of any deficiency amount.  (Deficiency: bank’s selling price minus mortgage balance) . 

Remember, however, that the lender stands to lose money in a short sale. You also would lose any equity or potential equity you may have in the property.  So before you decide that this is the solution you’ve been waiting for, investigate other possible solutions.  Explore this and other other options by consulting with an experienced lawyer, and perhaps retain an attorney to negotiate with  lender to attempt a short sale agreement.  Contact Purple Law Firm

Are there any similar options in bankruptcy?

In a Chapter 13 bankruptcy it may be possible to sell the house as a part of your Chapter 13 Plan. Remember of course that a Chapter 13 Plan must be approved by the Chapter 13 Trustee and the Court.

Review:  Bankruptcy- keeping your home Chapter 13 bankruptcy

You may be able to surrender the house in Chapter 13 and have any deficiency amounts discharged under the Chapter 13 “super discharge” provision.  Ask your bankruptcy attorney if you qualify for a super discharge in chapter 13.

Chapter 7 bankruptcy, if you qualify, would allow you to surrender the house and discharge any deficiency as well as discharge all of your unsecured debts.

Review: What I must do to File bankruptcy Chapter 7 Bankruptcy

Mobile Web: Chapter 13 Chapter 7

“Facing Foreclosure”  Series: Part 1 Part 2 Part 3

  • Share/Bookmark
Posted in Bankruptcy, Chapter 13 Bankruptcy | Tagged , , , , , , , | Leave a comment