Back to School, Stay Alert: Understanding NC Pedestrian Crossing Laws

As students head back to school, its a good time to review updated North Carolina pedestrian safety laws. Pedestrian fatalities have risen significantly over the past decade; staying alert, slowing down, and following these laws are essential to keeping everyone safe.

The 2026 updates include the following important changes:

Drivers must now yield to pedestrians crossing within a marked crosswalk or an unmarked crosswalk at or near an intersection when traffic signals are not controlling the movement. Previously, drivers could pass through an unmarked intersection without yielding to a pedestrian.

Drivers should slow down and be prepared to stop whenever a pedestrian is crossing. They should also never pass another vehicle that has stopped at a crosswalk, as the stopped vehicle may be blocking the drivers view of a pedestrian.

Drivers must come to a complete stop and remain stopped until a blind or visually impaired pedestrian has safely crossed the street. This applies when the pedestrian is using a white cane or is accompanied by a guide dog. Failing to follow this law could result in a Class 2 misdemeanor.

Understanding North Carolinas pedestrian safety laws is an important part of promoting safer roads. The National Highway Safety Administration also recommends the following tips for drivers to help protect pedestrians.

  • Slow down. Speeding puts everyone at risk—not just the driver, but everyone sharing the road, including pedestrians.
  • Watch for pedestrians everywhere and keep blind spots to a minimum. Be especially cautious at night or in bad weather, when pedestrians may be harder to see and can appear unexpectedly.
  • Yield to pedestrians in crosswalks and stop far enough back to keep them visible to approaching drivers, giving others time to stop safely as well.
  • Slow down and be ready to stop whenever youre turning or approaching a crosswalk.
  • Never pass a vehicle stopped at a crosswalk. A pedestrian may be crossing where you cant see them.
  • Follow the posted speed limit, especially in school zones, neighborhoods, and areas where pedestrians and children are present.
  • Use extra caution when backing up and always check for pedestrians before moving.

If you receive a failure-to-yield ticket or find yourself facing traffic court, Craft Law Offices can help you navigate the process and determine whether your charge, fine, or ticket may be reduced or modified. For more information, call Leslie Craft at 252-752-0297.

A Beginner’s Guide to Estate Planning

Planning your estate can feel like a daunting task, especially if you are starting from scratch. But taking this step is one of the most powerful things you can do to protect your assets and ensure they go to the people you love.

The best approach is to take it one step at a time, consult with a licensed expert, and update your plan as you experience life’s major milestones.

Read on to learn where to start and how Craft Law Offices can help you navigate decisions regarding your money, property, business, healthcare directives, and more.

The Core Elements of an Estate Plan

For most people, a complete estate plan is not just a single document. It is a customized toolkit of different legal instruments—each serving a unique purpose. Some protect you during your lifetime, while others direct what happens after you pass away.

Here are the most common documents used to build a secure foundation:

  • Last Will and Testament: The bedrock of your estate plan. It directly states who should receive your property and who will manage your estate. It is also where you name guardians for minor children and outline trusts for dependents.
  • Financial Durable Power of Attorney: Appoints a trusted person to manage your finances—like paying bills, filing taxes, and accessing bank accounts—if you ever become incapacitated.
  • Healthcare Power of Attorney: Designates a trusted person to make medical decisions on your behalf if you are unable to speak for yourself.
  • Living Will (Advance Healthcare Directive): Outlines your specific wishes for end-of-life care, such as preferences regarding life support, resuscitation, and organ donation.
  • Revocable Living Trust: A versatile tool for individuals and families of all financial backgrounds. It holds your assets during your lifetime and distributes them after your death—allowing your family to completely bypass the costly and public probate court process.
  • Beneficiary Designations: Crucial and often overlooked. These are the designations on your life insurance, 401(k)s, and IRAs. They typically override your will, making it vital to keep them updated after marriage, divorce, or having children.
  • HIPAA Authorization: Gives selected family access to your medical information. Without this, strict medical privacy laws may prevent doctors from sharing updates with you and your family during an emergency.

3 Common Estate Planning Myths—Debunked

Myth 1: “I don’t have an ‘estate’.” Reality: If you own a home, a car, a bank account, or cherished personal belongings, you have an estate. Every asset is worth protecting.

Myth 2: “I’m too young to worry about this.” Reality: None of us can predict the future. Establishing powers of attorney and healthcare directives early ensures you are protected if an unexpected accident or illness occurs.

Myth 3: “A will negates probate.” Reality: A will actually guides the probate process; it does not negate it. If you want to spare your family the delays and court costs of probate, you need specific tools like a Revocable Living Trust.

Probate, Taxes, and Legal Compliance

When it comes time to settle an estate, families often run into unexpected roadblocks:

  • The Drag of Probate: This court-supervised process validates your will, inventory of assets, and settles outstanding debts. It can be time-consuming and expensive, but a proactive estate plan can help your family avoid it entirely.
  • Tax Implications: Depending on the size and structure of your estate, taxes can eat into what you leave behind. Proper planning minimizes this burden.
  • Strict Legal Requirements: To be considered legally valid in North Carolina, your estate plan must meet precise statutory guidelines. A DIY online form that fails to meet state criteria can be easily invalidated or challenged in court, leaving your family unprotected.

Secure Your Legacy with Craft Law Offices

You don’t have to figure this out alone. At Craft Law Offices, Leslie Craft will help you navigate North Carolina’s specific legal requirements, keep your documents current, and ensure your wishes are crystal clear. Let us handle the legal complexities so you can enjoy true peace of mind. Ready to take the first step? Contact Craft Law Offices today at 252-752-0297 to get started.

Why Hiding Your Estate Plan is a Recipe for Disaster

From what Hollywood and movies portray, when it comes to your estate plan, it is best to keep it a secret, hidden away from your loved ones. However, this is not always the safest or smartest option. We know that every individual and family has different dynamics, and that there is no single perfect estate plan that meets everyone’s needs. Still, we can guarantee that keeping your estate plan secret or hidden may be more harmful than helpful. So, here are a few reasons why it is best to be transparent with your loved ones and executors about your estate plan.

End of Life Care

Many estate plans have documents like a living will that contain helpful information that can dictate end-of-life care, decisions, and what kind of measures you want to be taken if you are incapacitated. If your loved ones or medical providers cannot access these documents, it may mean that they are left to decide without any insight into your wishes. If you want your specific wishes met, it is crucial that your loved ones know what your wishes are and can access your living will if those decisions need to be made. And, if you are concerned that the person you choose to handle your affairs may not follow your wishes, they may not be the right choice. Either way, being open and honest is the best way to handle these kinds of conversations.

Future Heirs

If something unfortunate happened to you, and your family and heirs could not find your estate plan, your property may not be distributed the way you want it to be. Or, at the very least, it can delay the process. In some cases, if your plan is never found, the state will consider your hidden will revoked and your assets will be distributed according to the state’s laws, which prioritizes relatives and spouses. Most of the time, the person you chose to be your Executor will be replaced by a court-appointed Administrator. All of these things can cause further distress and issues for your loved ones and may result in your last wishes not being met. Either way, having a few people or even a lawyer who knows where your estate plan is may be the best way to ensure it is followed and upheld.

Peace of Mind

Unfortunately, accidents happen, and things can change in the blink of an eye. In the case that you are incapacitated or unable to make decisions for yourself, it is best to have a loved one know what your wishes are. It is also important that, if something is to happen to you, your family has peace of mind knowing your assets will be distributed with ease, without them having to deal with further issues or the court system. In a lot of cases, there is a lot of uncertainty and stress that comes with the days, weeks, months, and years after a loved one has passed. Knowing that your loved ones will be cared for even after you are gone is the best peace of mind and gift you can have.

Though every situation is different, we know there are certain cases where it may not be best for your entire family or relatives to know your wishes and official estate plan. Sometimes, this can lead to relationship issues, grievances, or worse. However, choosing a select few people or an estate planning attorney to share the location and a general overview of the estate plan will be the best option. Have conversations with those you love, ensure your estate plan is official and legal, and keep everything up to date to protect yourself and your family. Leslie Craft at Craft Law Offices has the experience and capabilities to help you create, edit, and finalize your estate plan to ensure all your wishes are met and upheld. Contact our office today to see how we can help you – 252-752-0297.

What You Need to Know About Repeat Bankruptcy Filings

Facing financial setbacks after bankruptcy can be discouraging, but it’s not uncommon. If you’re considering filing for bankruptcy again, it’s important to understand the legal rules around repeat filings. The requirements and waiting periods for filing a second bankruptcy depend on whether you’re filing under the same chapter as before or switching to a different chapter.

No Restrictions on Filing—But Limits on Discharge

While you can technically file for bankruptcy at any time, there are limits on how often you can have your debts wiped out (discharged). Most people only want to file when they’re eligible for a discharge, but there are some exceptions.

Filing Again Under the Same Chapter

If you previously filed for Chapter 7 bankruptcy, you must wait eight years from your last filing to receive another Chapter 7 discharge. For Chapter 13, you generally need to wait two years before filing for a second discharge under Chapter 13.

Switching Chapters for a New Filing

If your last bankruptcy was Chapter 7, you may qualify for a Chapter 13 discharge after four years. If your previous case was Chapter 13, you typically have to wait six years before seeking a Chapter 7 discharge, unless you paid all unsecured debts in full or made your best effort to pay at least 70% of those debts in the earlier case.

What If You Didn’t Receive a Discharge?

If you didn’t get a discharge in your first bankruptcy, you can usually file again at any time. However, if you file multiple cases close together, you may lose the benefit of the automatic stay that protects you from creditors. If your previous case was dismissed, you can often refile right away, except in certain scenarios where a 180-day waiting period applies (for example, if you didn’t follow court orders or voluntarily dismissed after a creditor tried to lift the automatic stay). If your discharge was denied, you likely can’t get those debts discharged in a future case.

Automatic Stay Considerations

If your most recent bankruptcy case was dismissed within the last year, the automatic stay only lasts 30 days in your new case. If you’ve had two or more bankruptcy cases dismissed in the last year, there’s no automatic stay unless you ask the court to impose or extend it.

Filing Without Seeking a Discharge

Sometimes, people file for bankruptcy—not to wipe out debts—but to buy more time to pay them off. For example, filing Chapter 13 after a Chapter 7 discharge (sometimes called a “Chapter 20” bankruptcy) can help you manage payments on remaining debts, like catching up on mortgage or car payments. While you won’t receive a discharge in the Chapter 13 this time, you gain more manageable payment terms and can address debts that weren’t eliminated in Chapter 7. In some cases, you may even be able to remove second or third mortgages through this process.

Given the complexities and nuances of repeat bankruptcy filings, it’s wise to consult a bankruptcy attorney. Leslie Craft at Craft Law Offices can review your past cases, explain your options, and help you strategize the best way forward for your financial recovery, give her a call today, 252-752-0297.

Estate Planning After Divorce

Estate planning is a great tool for managing how you want your assets divided in the event that something happens to you. The great thing about estate planning is that you can always change or make edits to your plan. So, if you are working through a divorce or just out of a marriage, now is the time to reevaluate your estate plan and make updates to reflect your recent life changes. Keep reading to find out more about the types of changes you may need to make, and how Craft Law Offices can help!

Retract Your Will

Immediately following a divorce, you should revisit your will and make any necessary changes. Because a will is the legal document that determines all of your final wishes for your property and assets, you will want to make these changes as soon as possible. If you do not make changes and something happens to you, your assets may not go to the person you want to receive them. Everyone should have a will, no matter how many assets you have. When life happens, having an updated and accurate will can protect your family and loved ones. As soon as your divorce is final, you should make any necessary changes to your will to avoid any issues down the line.

Update Beneficiaries and Power of Attorney

When updating your will, you should be sure to review all of your policies and accounts and confirm who you have designated as your beneficiary and power of attorney. If your ex-spouse is listed as either, you should change those to someone new that you trust. For financial accounts, whoever is the beneficiary would receive those assets if something happened to you. You should also replace your ex-spouse if they are listed as your healthcare or financial power of attorney, and give that role to someone else. An experienced estate planning attorney can help you cover every base to ensure all the correct documents have been updated to avoid confusion and inaccuracy.

Updating Trusts

A trust is a bit different from a will – it allows someone else to manage your assets on behalf of the beneficiaries, is put into effect immediately, and avoids probate. Basically, a trust is a way to hold on to assets and property during life, after death, or in the event of incapacity. Speak to a professional estate planning lawyer and consider creating a trust – this allows you to direct your funds without anyone else interfering.

Review Guardianship

Now that you are divorced, or almost divorced, you may also want to revisit who you have listed as your child’s legal guardian in case of emergency. You may want to consider listing a family member or loved one if you have struggled with custody issues in your divorce. If your children are young, it is important to consider who will be responsible for them if something were to happen to you. Make your wishes for your children clear and specific so there is no question if the time comes.

Life Insurance and Retirement Accounts

Don’t forget to update any life insurance policies and retirement accounts to reflect your divorce and to replace your ex-spouse as the beneficiary. Make these changes quickly to prevent any overlap. Your will does not usually direct your retirement accounts, so make sure you update every document to ensure your assets go where you intend them to. A licensed estate planning attorney like Leslie Craft can help make sure every necessary document has been updated to reflect your wishes and prevent any issues with your ex-spouse.

Make it Simple

Protect yourself and your children by simplifying the process and making it manageable. Hire Leslie Craft from Craft Law Offices to walk you through each question, decision, and document with ease and support. This will ensure that nothing slips through the cracks and that your assets are covered and distributed in the way you want. Life changes, and the Craft Law Offices team is here to help you manage those changes with compassion and care. Schedule a free consultation with us today to see how we can help make your situation easier – 252-752-0297.

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Bankruptcy & Tax Filing: What You Need to Know

Bankruptcy can provide a fresh financial start by allowing individuals or businesses to eliminate or repay debts through a legal process overseen by the federal bankruptcy court. However, filing for bankruptcy can significantly affect your taxes. Understanding the connection between taxes and bankruptcy is essential to avoid unexpected complications. This article outlines key information about bankruptcy and tax filings, explains how the two processes interact, and offers steps to help you avoid costly surprises. Whether you are considering bankruptcy or are already in the process, staying informed about tax consequences is crucial.

Tax Debt Impact

Many people hope bankruptcy will clear their tax debts, but not all tax obligations are automatically discharged. To have your tax debt discharged, you must meet specific requirements set by the Bankruptcy Code. For example, the tax debt generally must be for income taxes (not payroll or fraud penalties), must be at least three years old, and the tax return must have been filed at least two years before the bankruptcy filing. In addition, the IRS must have assessed the tax at least 240 days before you file. These rules can be complex, and not all tax debts will qualify for discharge. The type of bankruptcy you file also matters. Under Chapter 7, you may be able to discharge qualifying income tax debts if you meet the requirements. Chapter 13, on the other hand, usually does not erase tax debt, but it can help you set up a repayment plan to pay off non-dischargeable taxes over time, often with reduced penalties and interest. Consulting with a knowledgeable bankruptcy attorney can help you determine whether your tax debt might be dischargeable.

Where Does the Refund Go?

Whether you receive your tax refund after filing for bankruptcy depends on the timing of your filing and the type of bankruptcy. If you file for Chapter 7 before receiving your refund, the refund may become part of your bankruptcy estate and be used to pay creditors. If you receive the refund before filing, you may keep it, but the court may review its use, particularly for large purchases or debt payments. In Chapter 13, refunds are usually protected, but significant refunds may be applied to your repayment plan. Discuss your tax refund situation with your attorney before filing to plan accordingly and avoid unexpected loss of your refund.

Filing for Bankruptcy Before Taxes?

Regardless of whether you file Chapter 7 or Chapter 13, you must continue to file your taxes on time each year. Bankruptcy does not remove your obligation to file federal and state tax returns. Failing to do so can jeopardize your bankruptcy case and may result in dismissal. Report your income, credits, and deductions accurately, and keep copies of your tax returns. For Chapter 13 filers, up-to-date tax filings are essential, as your repayment plan requires proof of timely filing and payment. Staying current on your taxes is also important for rebuilding your financial life after bankruptcy.

Making Plans for After Bankruptcy

After bankruptcy, it is important to develop a clear plan for managing your taxes and finances. Create a budget and track expenses to avoid falling behind on bills or tax payments. Timely payments are essential for rebuilding credit and demonstrating financial responsibility. Use all available tax deductions and credits, and keep organized records of income, expenses, and tax filings. If your financial situation changes, consult a tax professional to stay compliant with IRS requirements. Good record-keeping helps prevent future tax issues and prepares you for audits or questions about your tax history. If you need guidance on bankruptcy and taxes, our office is available to assist you.

Filing for bankruptcy can affect your taxes, credit score, and ability to buy a home, but with the right guidance, the process can be manageable. Bankruptcy is a significant decision, and it is normal to feel overwhelmed by its potential effects. At Craft Law Offices, we understand the challenges involved in bankruptcy and tax matters. Whether you need assistance with filing, post-bankruptcy tax management, or IRS compliance, our experienced team is here to support you. We provide personalized advice to help you avoid pitfalls, rebuild your credit, and regain financial stability. Contact us at 252-752-0297 to schedule a consultation and begin your path to a fresh start.

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Debunking the Shame of Filing for Bankruptcy

Financial struggles are not uncommon, and many people can find themselves drowning in debt. Believe it or not, filing for bankruptcy can be the way out of devastating bills, but many people don’t consider it because of the stigma around it. If you are struggling with managing your debt, but are ashamed even to consider bankruptcy, then this is the blog for you. We’re debunking the shame of filing for bankruptcy – keep reading to see how Craft Law Offices can help!

Myth 1: You’ll Lose Your Possessions

You may have heard that filing for bankruptcy means you will lose possessions, such as your car or home. The idea of losing these things can scare people away from even considering bankruptcy, but filing for bankruptcy can actually help protect your possessions. Depending on the type of bankruptcy you file, you can either stop a foreclosure or repossession to catch up on payments or file and continue making payments. Filing for bankruptcy is a tool that can help you regain control of your payments and finances without the fear of losing what you own. Bankruptcy can even help you to maintain control over a business and give you time to reorganize. With the help of Craft Law Offices, bankruptcy can be the next step to financial freedom for you.

Myth 2: Your Credit Will be Ruined

If you are worried that filing for bankruptcy will destroy your credit score and you will be unable to access loans, mortgages, and credit cards, think again! Though bankruptcy filings can stay on your record for years, it does not mean that your credit and credit score will suffer. In fact, many people who consider bankruptcy already have late payments that are affecting their credit. When you file for bankruptcy, it can wipe out your debts and give you a fresh start. With the right plan in place to manage your finances and make payments promptly, you can build your credit back one step at a time. With years of experience in a variety of bankruptcy cases, Craft Law Offices is here to offer you advice and support to help you overcome debt.

Myth 3: Everyone Will Know You Filed

Though bankruptcy filings are public record, your records will not be as easily accessible as you might think. And your friends and neighbors are unlikely to be searching through the federal court system in their spare time. Typically, the only people who will have access to your case and filing are creditors, bankruptcy trustees, and anyone who may be listed as a co-debtor. In most cases, your employer will not be notified, but if you are applying for a new job, bankruptcy filings may appear on a background check. The bottom line is that your bankruptcy should be a private situation, and the Craft Law Offices team can help walk you through your rights, discuss your options, and get you through the bankruptcy process.

Myth 4: Only Irresponsible People File for Bankruptcy

Unfortunately, most people believe that those who file for bankruptcy are irresponsible. In reality, bankruptcy can affect anyone at any time. In fact, many people may find themselves considering bankruptcy after an unfortunate event, like getting laid off from a job, having a major medical issue, going through a divorce, or having to support a parent or relative in need. Any of these events can turn bills that were once easy to manage into overwhelming debts quickly. Without much warning, anyone can find themselves in an unbearable financial situation, and filing for bankruptcy could be the way out. Even some of the most famous brands, companies, and celebrities have filed for bankruptcy to get out of debt. If you are considering bankruptcy, reach out to Craft Law Offices today to see if filing could benefit you.

The experienced team at Craft Law Offices is here for you. We will help you weigh your options, determine if filing for bankruptcy is right for your situation, and walk you through the steps of the federal bankruptcy process. Bankruptcy can be confusing to navigate, which is why we strive to make the process as simple as possible to help you get on a path to financial freedom. To learn more about your options, schedule a consultation with us today – 252-752-0297.

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Co-signing Loans and Bankruptcy

Bankruptcy can be a scary but necessary next step toward financial freedom and starting over with a clean slate. But how does it affect someone who has cosigned on your loan? The best way to navigate this decision is to contact an experienced bankruptcy attorney who can help you make the best decision for you and your co-signer. Keep reading to learn all you need about loans, co-signers, and bankruptcy.

When Do You Need a Co-signer

A co-signer is a family member or close friend who agrees to pay your loan if you fail to do so. Those who do not have credit or don’t meet income requirements may require a co-signer for their loan. The most common example is when a parent cosigns a lease for their child, promising to pay rent if their child cannot. In some instances, having a co-signer can help reduce loan rates. Anyone applying for student loans, a car loan, or even a mortgage may require or benefit from a co-signer.

How Bankruptcy Affects Co-signers

Filing for bankruptcy can drastically affect a co-signer and their financials, depending on the type of bankruptcy filed. Under Chapter 7 bankruptcy, the co-signer may still be responsible for paying off the full debt, even if the borrower is absolved from their obligations. If the loan is not repaid on time, the co-signers’ credit score could be affected. Under Chapter 13, the borrower creates a repayment plan over 3 -5 years, and co-signers are protected by the “co-debtor stay”. This prevents creditors from contacting the co-signer for repayment. If the borrower does not adhere to their repayment plan, creditors can contact the co-signer. The “co-debtor stay” may not cover some types of debt, including student loans.

How to Protect Co-signers

To protect your co-signer on a loan, it is important to have an open and honest conversation about your financial situation ahead of time. This way, your co-signer knows exactly what to expect, and can prepare for the next steps. We also encourage you to discuss with your attorney how bankruptcy will affect your co-signer, and how to protect them when filing. If possible, consolidating your loans under your name alone will protect your co-signer from any future financial issues.

When to Contact an Attorney

When you can no longer repay your loan, it may be time to contact a professional. A bankruptcy attorney can help determine if filing for bankruptcy is right for you. They can review your options, offer advice, and assist you with the next steps.

Contact Craft Law Office today for a free consultation to review your situation with a professional. Leslie Craft has over 30 years of experience assisting clients with financial and legal issues. Trust that your case will be met with transparency and dedication to help you get a fresh financial start.

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Blended Families and Estate Planning

In general, planning your estate can be complicated and confusing. When you are part of a blended family, the process can be even more difficult. It may require a customized plan to meet the needs of all family members, including biological children, stepchildren, and parental figures. To create an estate plan that addresses this type of family dynamic, it is important to consult a professional estate planning lawyer. So, what do you need to know about blended families and estate planning? Keep reading to find out more about how Craft Law Offices can make your estate planning process simple!

Unique Dynamics

Many blended families have unique dynamics, and when it comes to estate planning, most people benefit from more non-traditional plans and approaches. Blended families are more dynamic and require more careful consideration to ensure your estate plan includes each family member, primarily biological and stepchildren. It’s important to consider the impact of prior relationships or marriages, as well as obligations such as child support, when planning your estate. When working on your estate plan, it is highly beneficial to consult a professional estate planning lawyer to ensure all family members are protected and that the principal’s wishes are met.

Legal Tools

When completing your estate plan, there are many tools you can use to ensure your assets are distributed correctly and that your family is fully protected. There are multiple options for planning an estate for a blended family, whether you use trusts or wills. These tools allow you to specifically allocate assets and ensure each family member receives their inheritance. Using both wills and trusts enables you to protect your unique and blended family with tailored protection. Speak with a knowledgeable estate lawyer at Craft Law Offices to ensure your needs are met, review the different types of legal tools that are available to you, and understand precisely how your assets will be distributed.

Including Blended Family Members

With a blended family, it can be more challenging to plan your estate, because there are more relationships to account for. When planning your estate, it is important to have open and honest conversations about expectations. This will help to avoid any confusion and ensure that each family member is included and accounted for. When you give each member of your family a voice, you can be sure that your estate plan reflects your entire family’s values and wishes. Take time to have considerate, thoughtful conversations so that everyone is aware of the estate plan. This way, the needs of the entire family are addressed. Estate planning does not have to be scary, and it can be made stress-free with the help of a professional estate planning attorney.

Mistakes to Avoid

Estate plans are a great way to ensure your assets are distributed according to your wishes; however, without proper guidance, many mistakes can be made when planning your estate. One of the most expensive mistakes you can make is forgetting to update the beneficiaries on all of your accounts. Take time each year to review your plan and accounts to ensure everything is up to date and your wishes are met. You should also consider having a plan in place should you become incapacitated. This plan is different and allows you to appoint someone to make decisions for you if you are unable to. In any estate plan, the most important thing is to discuss each decision with your family so everyone is on the same page. An estate plan attorney can help to lead these conversations and ensure that every need is met and every question is answered.

Estate planning is essential, and when your family is blended, it can be challenging to determine how to distribute your assets. Craft Law Offices can make this process pain-free from start to finish. And with estate plans, it is important to review them every year and make adjustments as necessary. Trust Craft Law Offices to create an estate plan that fits your family and ensures that everyone’s wishes are taken into account. Ready to get started? Contact our office today at 252-752-0297.

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How Holiday Spending Can Impact a Bankruptcy Case

The holiday season is filled with cheer, generosity, and — let’s face it — extra expenses. Between gifts, travel, decorations, and festivities, it’s easy for spending to spiral beyond your budget. But if you’re considering filing for bankruptcy (or already in the process), holiday spending can have serious financial and legal consequences.

Craft Law Offices would like to help you understand how these purchases can affect your case, which is key to protecting yourself and making smart financial decisions this holiday season.

1. Bankruptcy Courts Look Closely at Recent Purchases

When you file for bankruptcy, your financial activity leading up to the filing date doesn’t disappear — it’s carefully reviewed. The court and your bankruptcy trustee will examine your recent spending habits, including credit card charges, cash advances, and large purchases made in the 90 days before filing. If those purchases appear excessive or unnecessary, they could raise red flags and potentially be labeled as “fraudulent spending.”

2. Luxury Purchases Can Be Problematic

Under bankruptcy law, luxury spending before filing can be challenged. For example, the Bankruptcy Code presumes that certain debts are not dischargeable if they were incurred shortly before filing:

  • Luxury goods or services over a certain dollar amount (around $800–$900, depending on the year) within 90 days before filing.
  • Cash advances over roughly $1,100 within 70 days before filing.

What counts as “luxury”? Anything not reasonably necessary for your support or maintenance is considered a luxury, including expensive gifts, jewelry, travel, or high-end electronics. If you rack up these kinds of charges, your creditors may object, and you could end up still responsible for paying those debts even after bankruptcy.

3. Intent Matters

One key factor is intent. If you used credit knowing you planned to file for bankruptcy, the court may consider that an attempt to defraud your creditors. On the other hand, if you made reasonable, necessary purchases (like groceries or winter clothes for your family) without any intention of avoiding payment, those are typically not considered fraudulent. Still, perception matters — and even innocent spending can complicate your case.

4. Timing Is Everything

If you’ve already done some holiday shopping and are thinking about filing, timing your bankruptcy filing carefully can make a big difference. Waiting a few months may help demonstrate that your purchases were made in good faith and not in anticipation of bankruptcy.

A qualified bankruptcy attorney can review your situation and help you decide the best time to file.

5. How to Handle the Holidays if Bankruptcy Is on the Horizon

If you know bankruptcy might be in your future, here are some tips to keep your holiday finances under control:

  • Avoid new credit card debt. Stick to cash or debit if possible.
  • Create a realistic holiday budget — and stick to it.
  • Focus on meaningful, low-cost celebrations instead of expensive gifts.
  • Consult your bankruptcy attorney before making any large purchases or financial moves.

A little restraint now can save you from major headaches later.

Bankruptcy is designed to give you a fresh start — but how you manage your finances leading up to your filing matters. Holiday overspending or last-minute luxury purchases can delay your case, create extra scrutiny, or even leave you responsible for debts you hoped to discharge.

Before making big holiday purchases, take a step back and think about the bigger picture. If bankruptcy might be in your near future, talk to an attorney first. Call Leslie Craft with Craft Law Offices and let her help you navigate the process wisely. She can help you and protect your financial future long after the holiday lights come down. Call today, 252-752-0297.

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