Why do you need a will

Why Do I Need a Will in Ohio?

Unless you have the name of your family members on your assets as co-owners, you will need a will in order to ensure that your loved ones will receive your assets after you die. It is also important to consider preparing a will if there is a change in your situation, such as a change in your financial situation, an addition to your family, or if you acquire new assets or a business. In Ohio, if you die without a will, your property will be passed in accordance with the state inheritance laws, which give your property to your closest relatives, beginning with your spouse and children. If you do not have a spouse or children, your grandchildren or your parents, if they survive you, will get your property. If there are no grandchildren or parents, then it will go to other relatives, including siblings, aunts, uncles, cousins and your spouse’s relatives. If the court exhausts this list to find that you do not have any living relatives by blood or marriage, the state will take your property.

Living Wills and Health Care Power of Attorney (Durable Power of Attorney)

You should also consider preparing a health care power of attorney (or durable power of attorney for health care).  This is a legal document that authorizes another person (your agent) to obtain your health information and to make decisions regarding your health care. The health care power of attorney is only used in the event you are not able to make health care decisions for yourself. There are limitations on the decisions your agent can make for certain life-sustaining decisions.  The health care power of attorney is usually sufficient to avoid the need for a guardian. The health care power of attorney cannot be used to address financial affairs of another person. You must prepare a separate power of attorney to allow another person to take care of your financial matters.

The within statements are general in nature and this information is not intended as a substitute for legal advice regarding your specific case, nor is an attorney-client relationship established between Mina Nami Khorrami, LLC and any person reading this information. Mina Nami Khorrami is an experienced bankruptcy and debt attorney based in Columbus, Ohio.

Non-Compete and Non-Soliciation

Non-compete and non-solicitation agreements in Ohio  

Many employers, both large and small companies, are seeking to protect their business against competition by seeking employees to sign non-competition and non-solicitation agreements.

In general, Ohio courts have enforced reasonable non-compete agreements as long as: the restriction is no greater than is required to protect the employer, it does not impose an undue hardship on the employee, and it

Non-Compete Agreements

Non-compete agreements          

In today’s economy, employees are highly mobile and most employees do not want this mobility to be disturbed by courts under non-compete agreements. Most employers want to protect their business and investment against unfair competition. The Courts in Ohio have to balance between the competing interests of employers and employees.

Generally, a non-compete agreement is a contract between an employer and employee where the employee agrees no to compete with the employer after the employment ends. Ohio courts consider non-compete agreements to be valid and enforceable to protect employer’s economic interests as long as the non-compete agreement is reasonable.  In general a non-compete is reasonable as long as the restriction

  1.  is not greater than what is required to protect a legitimate interest of the employer;
  2. it does not impose an undue hardship on the employee; and,
  3. it is not injurious to the public.

In determining the reasonableness of a non-compete agreement, the courts look at many factors including the length of time and the scope of the restriction, the contact between the employee and customers of the business, whether the employee developed his skills during the employment, and whether an employee had access to confidential information or trade secrets of employer during his employment.

Non-compete can be executed at the beginning of an employment or during the employment as long as there is sufficient consideration for requiring that existing employees execute a non-compete. In some cases, continued employment might be sufficient consideration.

The courts in Ohio have the right to strike down a broad non-compete agreement,  so careful drafting of a non-compete agreement is recommended. There are many considerations to be given in drafting an  agreement. Careful consideration must be given to the language of a non-compete agreement.

The within statements are general in nature and this information is not intended as a substitute for legal advice regarding your specific case, nor is an attorney-client relationship established between Mina Nami Khorrami, LLC and any person reading this information. Mina Nami Khorrami is an experienced bankruptcy and debt attorney based in Columbus, Ohio.

Dissolving a corporation

Voluntary Dissolution of a corporation

When a business is incorporated, the corporation is registered with the Ohio Secretary of State and other agencies. To formally end the existence of a corporation in Ohio, certain formal steps must be followed in order to dissolve the corporation effectively. This article deals with the voluntary process of dissolving a corporation by its shareholders or, in the case of a limited liability corporation, by its members.

First, the corporate bylaws, articles of incorporation, or operating agreements (for a limited liability company) must be reviewed for any special procedures dealing with the dissolution of the corporation. Generally, the dissolution must be approved by at least a majority of shareholders or members, depending on the requirements of the bylaws, articles of incorporation or operating agreement. There has to be corporate resolution authorizing the dissolution. A formal meeting of shareholders or members must be held and all shareholders or members must have the opportunity to vote on the dissolution of the corporation.

Once the dissolution is authorized by the shareholders or members, then a certificate of dissolution must be filed with the Ohio Secretary of State. The information to be disclosed on the certificate of dissolution will vary depending on the corporate type, but generally the name of the corporation and the effective date of dissolution have to be disclosed and the certificate has to be signed by an authorized officer or representative of the corporation.

For a domestic for profit corporation to be dissolved, it must first obtain a Certificate of Tax Clearance from the Ohio Department of Taxation in order to voluntarily dissolve, and it must file a Certificate of Dissolution, Form 561, with the Secretary of State. To obtain the Certificate of Tax Clearance, the corporation must submit Form D5 – Notification of Dissolution or Surrender – to the Department after all applicable final returns are filed. The Department of Tax will then review all business tax accounts associated with the corporation to determine if there are any outstanding tax liabilities or filings. All outstanding tax liabilities or filings need to be filed and/or paid before a Certificate of Tax Clearance will be issued.

A Certificate of Tax Clearance is not required before dissolving a limited liability corporation. However, the Ohio Department of Tax requires the filing of various other forms by a limited liability corporation. Specifically, final sales tax returns must be filed if goods are sold and there is a vendor’s license issued to the business. Form D-5 – Notification of Dissolution or Surrender- must be filed after filing and payment of the final corporation franchise tax return if the limited liability company is classified as a corporation for tax purposes. For federal tax purposes, the taxpayer must check the “final return” box on the IRS From 1065 when the final federal tax return is filed. Filing of other forms might be required depending on the type of business.

The business affairs of the business must be wound up once the vote to dissolve the corporation or limited liability company is entered. Depending on the type of corporation, different rules apply, but in general the corporation or company must wind up the final affairs of the business, such as collecting the assets of the business, selling the assets of business or distributing assets that cannot be sold, and after the satisfaction of the business obligations, distributing any remaining assets of the business to the shareholders or members.

You should consult with an attorney if you want to dissolve your business, as a careful review of the business, type of corporation and applicable rules is necessary. Contact Mina Nami Khorrami for a free initial consultation.

The within statements are general in nature and this information is not intended as a substitute for legal advice regarding your specific case, nor is an attorney-client relationship established between Mina Nami Khorrami, LLC and any person reading this information. Mina Nami Khorrami is an experienced bankruptcy and debt attorney based in Columbus, Ohio.

Garnishment – How Exemptions Help

Garnishments – How Exemption Helps Without Bankruptcy

                If the filing of your bankruptcy has to be delayed for certain reasons, such as allowing a statutory time limitation to expire, waiting for taxes to become dischargeable, pendency of tax refunds, or other valid  reasons, there are ways to avoid, delay or minimize garnishments.  The first thing you need to do is to talk to your creditors and make payment arrangements to avoid a lawsuit from being filed against you. In most cases, creditors must first file suit against you, serve you with a summons and complaint, obtain a judgment against you before they can garnish your wages. There are certain exceptions when the creditor does not have to file suit, including certain governmental tax creditors, domestic support obligations, court ordered child support, child support arrears and student loans which are in default.  These creditors can proceed with garnishment of your wages without first having to obtain a judgment against you.

                Exemptions can help when a garnishment is pending. Every state has exemption laws.  The state legislature passes a law that protects certain assets of its citizens from the reach of their creditors, even when a judgment is obtained.  For example, Ohio exemption law allows you to keep $475.00 (this amount is adjusted periodically) of cash, your unemployment benefits, Social Security, certain retirement plans and individual retirement accounts, and the equity in your home, your car, and your household goods, up to certain dollar limits.  There are several other applicable exemptions.

If the garnishment is against your wages, there are certain limitations on the amount that can be garnished. The garnishment of your wages cannot exceed 25% of your disposable earnings (after deduction of taxes), or the amount by which your disposable earnings exceeds thirty times the maximum hourly wages.

                If a creditor tries to take your property or wages, you can request a hearing.  At the hearing you can claim that your property is exempt.  If the creditor garnishes your bank account, and your Social Security or unemployment checks are deposited in your bank account, you can take your bank statements to the hearing and show the Court where the money came from and obtain the proper exemptions.

                Call Mina Nami Khorrami, LLC to discuss your exemption rights in more detail and how the exemption laws apply to your situation. 

The within statements are general in nature and this information is not intended as a substitute for legal advice regarding your specific case, nor is an attorney-client relationship established between Mina Nami Khorrami, LLC and any person reading this information. Mina Nami Khorrami is an experienced bankruptcy and debt attorney based in Columbus, Ohio.

Gap Insurance

Gap Insurance and Bankruptcy

Gap insurance is usually offered on a car loan and it is intended to cover the difference between what you owe on your car and how much the car is worth. Do you need gap insurance?

In most cases, an auto insurance policy is sufficient protection to cover the cost of repairs or replacement. However, if the value of your car is lower than the amount you owe on your loan, the gap insurance will cover the difference. Gap insurance is offered in car purchases and leases. Gap insurance is used mostly in situations where you have a negative loan balance from a car you traded in when you purchased or leased your new car.

You do not need gap insurance if you will not owe more than your car is worth during the terms of your loan or lease. You can determine the value of your car by looking at the value of the last year’s model of car you are buying. You can look at Kelley Blue Book valuation online at www.kbb.com. If you decide to buy gap insurance, shop around and choose the best coverage for you. In most cases, gap insurance has no real value and should not be purchased.

If you are purchasing a car while you are in Ch. 13 bankruptcy, you must first obtain bankruptcy court and trustee approval. Most trustees do not approve a car loan if there is gap insurance on a car loan.

If you file bankruptcy, depending on the date you purchased your car, you might be able to modify the terms of your car loan. If you purchased your car within 910 days prior to the filing of your bankruptcy, the refinancing might be limited to the interest and the length of repayment, however, if you had purchased the car longer than 910 days prior to the date you filed your bankruptcy, then there are more flexibility in refinancing your car loan based on the value of the car, the terms and balance of your car loan.

                Call our office today to schedule a consultation to discuss your situation, including any issues regarding an IRA, with Attorney Mina Nami Khorrami.

The within statements are general in nature and this information is not intended as a substitute for legal advice regarding your specific case, nor is an attorney-client relationship established between Mina Nami Khorrami, LLC and any person reading this information. Mina Nami Khorrami is an experienced bankruptcy and debt attorney based in Columbus, Ohio.

Financial resolutions for 2019

It’s that time of year again: A new year, a chance for a fresh start and a time to make financial resolutions.

If 2019 is the year for you to set some new financial resolutions and work toward eliminating debt, then you are in luck.

The first of the year is the best time to start resolving to get your house in order and make some financial resolutions. So where to start? Read on:

Emergency fund

One of the best things you can do is to start saving toward an emergency fund. While a lot of financial gurus say to have 6-12 months salary in reserve, that just isn’t feasible for a lot of folks. It can seem daunting and impossible, so some people just never start.

However, starting to save enough cash so you can weather life’s inevitable storms (like car trouble) can go a long way.

So in 2019, set a financial resolution to save a bit each month, so you’ll have a small cushion of cash in 2020!

Pay bills on time

This might seem like a no brainer, but by not racking up late fees and interest each month after not paying your bills on time, you can save a tidy sum. Those fees really add up and can damage your credit and prevent you from doing the first financial resolution of saving an emergency fund. So set up a system so you don’t miss deadlines and get those bills paid – on time.

Household budget

Everyone knows they need to do a household budget, but who really takes the time? You, if you want to set a financial resolution that can help you save more and spend less. There are free apps for your smart phone that can help and the library also has books on how to set – and stick to – a budget. You don’t need a pricey financial advisor. One way to start? Track your monthly spending and see if there are areas you could trim.

A caveat: We know that for many people, it can be hard to feel like you aren’t barely hanging on financially and so some of these resolutions might seem impossible. But, no matter your income, you can do the best you can with the resources you have so you can work toward a more orderly financial system.

Mina Nami Khorrami LLC

If you have questions or concerns about bankruptcy or foreclosure, the legal experts at Mina Nami Khorrami LLC can help. Contact us today at 614-857-9590. 

Ask the foreclosure attorney: Four things you need to know before applying for a mortgage loan modification

 If you are having trouble making your mortgage payments, you might be considering filing for a mortgage loan modification. While you don’t need a foreclosure attorney, you probably have questions.

There are four things a foreclosure attorney would likely tell you if you are considering a mortgage loan modification. If you have questions, we have answers. Read on:

Government mandates

Although the government’s Home Affordable Modification Program ended, its guidelines may still be used by some mortgage lenders. It is up to your mortgage lender to determine your eligibility for a loan modification of your mortgage note.

That’s why it’s a good idea to talk to a seasoned foreclosure attorney.

Extending your loan

One thing you can do if you are considering a mortgage loan modification is to ask your lender to extend the term of your loan, putting the delinquent balance on the end. It’s probably a good idea to look at the many modification calculators available on the Internet as well. You must show financial hardship; options are available!

Temporary modifications

Many homeowners in financial straits can get a temporary loan modification of three months. At the end of that term, you can be considered for a permanent loan modification by your mortgage lender.

Keep excellent records

If you are considering a mortgage loan modification, the best advice a foreclosure attorney could give is to keep excellent records. You might have to resubmit the same documents more than once, so keeping them all organized and together will save you headaches down the road. Also, sometimes lenders can lose or misplace your documents. Keeping track of it all is the best advice.

Mina Nami Khorrami LLC

If you or someone you know is considering mortgage loan modifications, consider an experienced foreclosure attorney from Mina Nami Khorrami LLC. Call us today. 

 

 

Get your house in order: Financial resolutions for 2018

It’s a new year and that means many people are setting goals and resolutions for 2018, hoping to start fresh. One of the best things you can do is to make some financial resolutions for 2018.

Talking about money – saving it, spending it, budgeting it – isn’t always an easy conversation. But setting financial resolutions should be an annual goal for every household. Whether you struggle to pay your bills or live a comfortable life, you should always keep track of your money and set goals annually.

Financial resolutions are one of the best things you can do to maintain or improve your situation so here are our best tips. Read on:

Save, save, save

Yes, we know this one isn’t easy – or popular. But setting financial resolutions should always include a goal for savings. We think you should aim to save 20% of your net income. So, what is net income? It’s the money that you have left after all deductions are removed from your pay, like taxes, contributions and garnishments. A part of your deductions should be a contribution to your retirement. We recommend saving for retirement as early as possible.

It can be difficult to adjust your lifestyle to save more, but it will pay off. And don’t beat yourself up if life happens and you can’t save as much one month. Just restart saving next month.

Monitor your credit reports

Make sure you are in good standing with the different credit report agencies and monitor the activity, making sure there’s no fraud.

Pay your bills immediately

This is a good habit to start in 2018 if you do not already do this. Right after you get paid, make sure all your bills are paid before you buy any extras. Stick to your budget and really drill down on the difference between “wants” and “needs.” Need help with budgeting? Try an app for your smartphone.

Pay off debt

Make 2018 the year you work to trim your debt – aggressively. When setting financial resolutions, paying off debt should be on your list annually. The quicker you get out of debt, the better your financial outlook will be. Bonus? You can save more for retirement!

Spend less

Yes, we know this one isn’t fun. But spending less can really pay off in the long run by allowing you to save more, pay off your debt faster and set aggressive financial goals that will benefit you in the years to come.

Consider a “no spend” month where all you buy are necessities like food, gas and paying your mortgage. Skip the trip to Target and go for a brisk walk instead. Make a list and stick to it at Costco.

Mina Nami Khorrami LLC

The legal experts at Mina Nami Khorrami LLC wish you and your family a happy, healthy and financially sound 2018!