“We have been excited about getting such a good URL that explains what our law firm represents for a website” says Utah bankruptcy attorney Jeff Butler.

In April 2012, PEARSON BUTLER again filed over 36 salt lake city bankruptcy cases in the United States Bankruptcy Court for the District of Utah.  But over the past 12 years, its bankruptcy team has collectively filed over 3,500 bankruptcy cases, including Chapter 7 and Chapter 13 bankruptcies.

“Despite our extensive bankruptcy numbers, our legal team has also represented over 1,000 estate plan clients, personal injury clients, and various other clients’ legal needs.  So the www.lawyerinutah.com URL is catered to emphasize our various legal services,” adds Salt Lake City, UT lawyer Jeff Butler

So, how does all this work?

1. We will set up your Self Directed IRA LLC in the state of your choice, prepare the Operating Agreement and obtain the EIN from the IRS.

2. You will need to transfer funds (IRA, 401K, or SEP-IRA) from your Current Custodian (if they do not allow truly Self Directed IRA’s) or 401K Plan Administrator to a  New Custodian that allows truly Self Directed IRA investments.  We are happy to provide you with information regarding an IRS approved custodian that allows truly self directed IRA’s.

3. You will open a local bank account for the LLC at a local bank of your choice. We will provide you with the documentation (Articles of Organization, EIN, Operating Agreement) necessary to open the account.

4. You will then direct the Custodian to transfer your retirement  funds to your new Self Directed IRA LLC bank account.

5. You will issue a membership certificate to the Custodian who will hold the the membership interest on behalf of your IRA.  We will assist you with the preparation of the membership certificate.  The LLC is owned by your IRA.

6. You as the Manager of the Self Directed IRA LLC will select a suitable Investment for your Self Directed IRA LLC.

7. You as Manager of the Self Directed IRA LLC write a check from the LLC bank account to purchase theInvestment.

8. The Investment is purchased in the name of your Self Directed IRA LLC. All income from the investment is paid to the LLC bank account. All expenses of the investment are paid from the LLC bank account

8. You as manager of the LLC have full control of the Self Directed IRA LLC funds and investments.

While this sounds straight-forward, there is specific language your Operating Agreement will need in order to operate and maintain both your liability shield and your tax benefits.  Contact us today to discuss what we can do to help you build this.

Answer:  Yes, but there are some types of assets that cannot be acquired.

Question:  Is it super expensive to form an LLC owned by an IRA (“IRA LLC”)?

Answer:  No, we typically form IRA LLCs for less than $2,000.00.

Question:  Is this a new law?

Answer: No. It has been allowed for many years. Few people seemed to know about this option – or even care – until the stock market began to decline. Financial institutions, meanwhile, had little incentive to recommend something other than stocks, bonds or mutual funds, since these provided a source for their fees.
Question: How do I know this is legal?

Answer: Discuss this strategy with your tax advisor. If he is unfamiliar with it have him consult resources such as The Journal of Taxation, the Journal of New York CPA’s and Trust and Estates magazine and other resources used by tax attorneys and CPAs.

Question: Can my LLC purchase real estate I already own?

Answer:No, not without filing for an exemption. Property that you or a disqualified person has ever owned is not eligible to be purchased by your LLC since this would be a prohibited transaction.

Question: Can I co-invest with the IRA of my spouse or other investors?

Answer: Yes, both IRAs can be owners of the LLC, in fact so can other individuals and entities as long as the other owners are not disqualified persons. This is very useful for large investments.

Question: Can I buy vacation property?

Answer: Yes, but you can not personally use it. Neither you nor any other disqualified person can have any personal use or benefit of the property while it is held in your retirement account. The property must be purchased for investment purposes only. However upon reaching retirement age you could take the property as a distribution.

These are just a few of the most common questions we face on the question of IRA LLCs.  For more information, please contact us to schedule a free consultation.

THE FAIR DEBT COLLECTION PRACTICES ACT

The federal Fair Debt Collection Practices Act, or FDCPA (15 U.S.C. § 1692 and following), prohibits debt collectors from engaging in abusive behavior.

The FDCPA covers debt collectors who work for collection agencies. It does not cover debt collectors that are employed by the original creditor (the business or person who first extended you credit or loaned you money).

If a debt collector that works for a collection agency breaks the law, you can take steps to make sure it doesn’t happen again.

WHAT DEBT COLLECTORS CAN’T DO

Debt collectors from collection agencies cannot do any of the following:

• Call you repeatedly or contact you at an unreasonable time (the law presumes that before 8 a.m. or after 9 p.m. is unreasonable).
• Place telephone calls to you without identifying themselves as bill collectors.
• Contact you at work if your employer prohibits it.
• Use obscene or profane language.
• Use or threaten to use violence.
• Claim you owe more than you do.
• Claim to be attorneys if they’re not.
• Claim that you’ll be imprisoned or your property will be seized.
• Send you a paper that resembles a legal document.
• Add unauthorized interest, fees, or charges.
• Contact third parties, other than your attorney, a credit reporting bureau, or the original creditor, except for the limited purpose of finding information about your whereabouts. Unless you have asked collectors in writing to stop contacting you, they can also contact your spouse, your parents (if you are a minor), and your codebtors.

WHAT TO DO IF DEBT COLLECTORS BREAK THE LAW

Here’s what you can do if debt collectors engage in illegal activity:

1. TELL THEM TO STOP

Under the FDCPA, you have the right to tell a collection agency employee to stop contacting you. Simply send a letter stating that you want the collection agency to cease all communications with you. All agency employees are then prohibited from contacting you, except to tell you that collection efforts have ended or that the collection agency or original creditor intends to sue you or take advantage of some other legal remedy.

Don’t hide from debt collectors. You can tell a collector to stop calling even if the collector is not breaking the law. However, many debt counselors feel that, unless you’re judgment proof (that is, broke for the foreseeable future) or truly plan to file for bankruptcy, the best overall advice is not to ignore the debt or try and hide from the debt collector. Usually, the longer you put off resolving the issue, the worse the situation and the consequences will become. Whether you negotiate directly with the collector or obtain a lawyer’s assistance, many counselors feel the best strategy almost always is to speak to the collector.

2. DOCUMENT ILLEGAL BEHAVIOR

If a debt collector breaks the law, document the violation as soon as it happens. Start a log and write down what happened, when it happened, and who witnessed it. Then, try to have another person present (or on the phone) during all future communications with the collector.

3. FILE A COMPLAINT

File a complaint with the FTC. File an official complaint with the Federal Trade Commission (FTC), the federal agency that oversees collection agencies. Contact the Federal Trade Commission at 6th and Pennsylvania Ave. NW, Washington, DC 20580 or at www.ftccomplaintassistant.gov. In your complaint:

• include the collection agency’s name and address, the name of the collector, the dates and times of the conversations, and the names of any witnesses, and
• attach copies of all offending materials you received and a copy of any tape you made.

Send the complaint to state agencies. Send a copy of your complaint to the state agency that regulates collection agencies for the state where the agency is located. To find the agency, call information in that state’s capital city or check the state’s website.

Send the complaint to the creditor and collection agency. Finally, send a copy of the FTC complaint to the original creditor and the collection agency. The original creditor may be concerned about its own liability and offer to cancel the debt.

Once your complaint is filed, don’t expect immediate results. The FTC may take steps to sanction the agency if it has other complaints on record. The state agency may move more quickly to sue the collection agency or shut it down for egregious violations. Your best hope is that the creditor will offer to cancel the debt.

4. SUE THE DEBT COLLECTOR

If you’ve been subject to repeated abusive behavior and can document it, consider suing the collection agency. But if the illegal behavior was merely annoying, don’t bother. For example, if the collector called three times in one day but never again, you probably don’t have a case.

To sue the debt collector, you can represent yourself in small claims court or hire a lawyer and go to regular court. (The other side may have to pay your attorneys’ fees and court costs if you win.)

Money damages. If you win in court, you are entitled to recover:

• the amount of any actual financial losses you suffered — for example, your therapy fees, if you suffered extreme anxiety as a result of the collector’s actions, or the amount you paid to switch to an unlisted number to avoid harassment, and
• an additional amount (unrelated to actual losses) up to $1,000 for any violation of the FDCPA.

The company has over $850 million in debt and employs almost 19,000 workers.  The tight money supplies and high labor costs are large factors for considering filing for bankruptcy protection.  It filed Chapter 11 in 2004 in an attempt to reduce debt and lower costs.   The company hopes that the Chapter 11 bankruptcy filing will enable them to renegotiate labor contracts, reduce benefit costs, and raise additional capital to update production and distribution.

The Chapter 11 attorneys at Pearson, Butler, Carson & Cook, PLLC consult with business owners throughout Utah whose business operations are likewise struggling.  If your Utah business is struggling and you want to know what restructuring options are available, feel free to call our office at #801-495-4104.

Our Tooele, Utah bankruptcy attorneys have already assisted several Tooele residents file bankruptcy.  In the past, however, the Tooele residents would travel to our South Jordan and Layton offices in order to file bankruptcy.

Jeff Butler, one of the partners at Pearson, Butler, Carson & Cook had the following comments: “We have had such a positive experience helping our clients from Tooele that we have chose to open an office to provide a more convenience for people looking to get relief from their debts.”

If you need assistance filing bankruptcy and would like a free consultation with a bankruptcy lawyer or attorney in Tooele, please contact us at #801-495-4104 to schedule a consultation.

The franchise attorneys at Pearson, Butler, Carson & Cook, PLLC helps business owners grow their businesses by franchising.  Our franchise attorneys draft disclosure documents and franchise agreements, register franchises, and assist with franchise compliance.   Our franchise lawyers represent franchisors, franchisees, companies developing franchises throughout Utah, including Salt Lake City, South Jordan, Layton, and Tooele.

Call a Utah franchise attorney for a free consultation a (801) 495-4104.

The Chapter 11 bankruptcy provides debt relief for all types of businesses and becoming more common place as the business sector attempts to recover from this lated recession. 

Feel free to talk with a Chapter 11 bankruptcy attorney at PEARSON, BUTLER, CARSON, & COOK, PLLC at (801) 495-4104 for a free consultation.