Author: Craft Law Firm

Healthcare and Durable Powers of Attorney for College Students

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Sending your child off to college can be scary. Make sure you and your child are covered in case of an emergency by having healthcare and durable powers of attorney in place. These two documents will allow you to make healthcare, financial, or legal decisions for your college student in the event of an emergency.

Did you know that once your child turns eighteen, they are considered an adult in the eyes of the law? What this means is that you are no longer given access to their health, financial, and educational records without having their consent. For this very reason, it is imperative for you to discuss the importance of healthcare and durable powers of attorney before they leave for college.

What is a healthcare power of attorney?

A healthcare power of attorney allows your college student to name someone else an agent to make healthcare decisions on their behalf should they be unable to. This legal document allows the designated person to access private medical records while they are acting on their behalf. The agent will be able to act on behalf of the injured/sick person, ensuring they receive the best possible care according to their wishes.

Without this document, medical providers are not allowed to release medical information to the parent. You do not want to be in this position, especially if you are in another state and are told that your child has been admitted to the hospital. A properly executed healthcare power of attorney will allow the hospital to release information about the child’s condition or care to you. You will be able to easily step in and access medical information during an emergency. This document also allows your child to include instructions relating to their healthcare, including wishes related to organ donation or wishes relating to religious or cultural practices. The student can keep these documents on file with their university or medical provider so that it can be easily accessed if needed.

What is a durable power of attorney?

A durable power of attorney allows your child to name you as their agent to make financial, legal, and business decisions on their behalf if they are unable to do so. This document allows parents to pay a child’s bills, access their bank account or education records, and/or manage their finances or legal decisions in the event of an emergency. Without a durable power of attorney, a parent cannot manage their child’s financial and legal affairs without petitioning the court to be appointed as the child’s legal guardian.

What are the benefits of these two documents?

If your college student is attending school outside the state of North Carolina and these two documents are not in place, the laws of that state will control who will be able to make decisions in case of an emergency. For example, in the state of North Carolina, if an adult (someone over eighteen years of age)  does not have a healthcare power of attorney and is unmarried, most parents will be able to make medical decisions should the child be unable to. In this situation, parents will be joint decision-makers and will have to agree on all actions taken by medical providers. However, in NC and most other states, there is no default decision maker for legal and financial decisions. In this scenario a parent would have to seek to be appointed as the child’s legal guardian by the courts. Going through this process is more stressful, time-consuming, and costly, which is why having these documents in place before they are needed is key.

If you and your child live in North Carolina but the student is attending college outside of North Carolina, these documents give you the authority to act on behalf of your child in an emergency regardless of the other state’s rules. Your North Carolina documents will be valid in any other state.

Remember, accidents happen, so having a healthcare power of attorney in place for your child allows doctors to update you on your child’s condition, as well as allowing you to make healthcare decisions for them if they are not able. As a parent, knowing your child has a power of attorney gives you peace of mind when sending your son or daughter off to college.

How do you go about getting healthcare and durable powers of attorney?

First, discuss with your child what responsibilities they want you to have and the extent of authority that healthcare and durable powers of attorney grant you. Make sure they understand that these two documents will only go into effect if a medical provider certifies that they are not capable of making their own decisions. These documents are in effect for emergency purposes only and are there for their protection.

Then, call Craft Law Firm to schedule an appointment with Leslie Craft to go over and legalize the necessary documents. Craft Law Office will make this process easy and painless. Schedule a free consultation with Leslie today to discuss your options and review the necessary information. Having these documents in place will allow you to have peace of mind while your child is off to college.

Should I use my retirement savings to pay off debt?

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If you are thinking of using your retirement savings to pay off debt, you may want to consider the risks. It may seem like an easy choice, but it could result in working longer and harder to make up for the withdrawal. Here are some reasons why you shouldn’t use your retirement savings to pay off outstanding debt, and other alternatives to consider.

You will have to pay penalty fees and taxes.

If you withdraw money from your retirement account before the age of 59 ½, you will have to pay fees of anywhere from 10% to 25% on the amount you withdraw. On top of that, your withdrawal is subject to income tax, potentially reducing your savings significantly. Withdrawing from your savings may help you pay off your debt, but it can also leave you with little to no funds when it’s time to retire.

You put your retirement fund at risk and lose growth.

It is important to separate your retirement account from your emergency funds. When you take money from your retirement account, you risk your ability to live comfortably after you finish working and are no longer on a steady income. You also lose the growth you have made over the years through annual interest. In the end, you will likely have to work longer and harder because you touched your retirement funds too early.

You have to start over rebuilding your savings.

Another downfall of using your retirement savings to pay off debt is that you will have to start over to rebuild them. This can become a problem due to the limits on how much you can contribute to your retirement each year. If you saved up for 20 years and spent it at the age of 45, you will likely have to work much longer than anticipated to rebuild your retirement funds.

Alternatives

While it is best to leave your retirement fund untouched, paying off debt can be difficult. There are other options to debt relief, including:

  1. Creating a repayment plan can give you a budget to work with, so you can allocate your income to cover expenses and work on repaying debt overtime. It could also be beneficial to discuss your options with a financial professional who can create a plan for your specific situation.
  2. Negotiating with creditors can give you the opportunity to discuss repayment plans and lower interest rates. This may not be a viable option if the interest rates continue to be so high as you may not be able to pay enough to cover the accruing interest.
  3. Finding ways to increase your income, including part-time work, selling items, or freelancing.
  4. Filing for bankruptcy can help eliminate debt and give you a fresh start. We understand that this may not be the last resort for some people, however it may be the smartest choice for eliminating debt and starting over.

If you are not sure that bankruptcy is right for you, we encourage you to speak with a bankruptcy attorney. Call Craft Law Offices to schedule your free consultation today and let Leslie Craft answer all your questions, address your concerns, and help put you on a journey to financial freedom. Contact Craft Law Offices today at 252-752-0297.

When is Bankruptcy the Right Option?

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Some people would rather struggle silently than consider filing for bankruptcy due to the negative connotation it has. But did you know that filing for bankruptcy can give you a reset on debt? Many people are unaware of the numerous benefits filing for bankruptcy can provide, or they don’t know how far in debt they have to be before filing. Craft Law Offices has the answers for you.

When is the right time to file for bankruptcy?

Filing for bankruptcy does not mean you’re a failure or are giving up. It can actually be the reason you are able to start over, with a clean slate, debt free. So, when is the right time to file for bankruptcy?

  • You have been dipping into retirement funds.
  • You are paying your bills with credit cards and/or have maxed out your cards.
  • You are only making the minimum monthly payments on credit cards with high interest rates.
  • Creditors are contacting/harassing you.
  • Your home is being foreclosed or your car is being repossessed.

If some of these apply to you and your situation, you may want to consider speaking with Leslie Craft. Instead of spending your last dollars, or exposing yourself to even more debt build-up, call our office to inquire about filing for bankruptcy. Filing could offer you a fresh start and a chance to rebuild your finances.

Sometimes it can feel like you are drowning in debt. Filing for bankruptcy may benefit you in the long run in many ways. There are numerous reasons someone might file for bankruptcy, including:

  • To end the constant debt collection efforts and lawsuits.
  • To wipe out or reduce various kinds of debt.
  • To prevent repossession or foreclosure.
  • To potentially increase credit score.

When you are struggling with your finances, the added burden of debt collectors hassling you and the thought of potential foreclosures can certainly increase the stress and concern you may feel. Filing for bankruptcy can give you the freedom to get out of the hole and start over.

If you find yourself struggling with any of these situations and you are looking for guidance, filing for bankruptcy could be the next step for you, but don’t wait too long. The sooner you file, the sooner you can protect your assets and accounts from creditors. If you have questions about filing for bankruptcy, or you are ready to take the next step, contact Craft Law Offices today to schedule a free consultation.

Does Social Media Negatively Affect Your Bankruptcy?

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You might not think that your social media accounts and posts could be used against you in a lawsuit, but attorneys can actually use them to collect evidence in cases.

Social media gives people the opportunity to connect with family and friends. Many people share a lot of personal information on social media, maybe too much information. So, remember this, social media platforms are public, and you need to assume that a bankruptcy trustee may look at your accounts to see if you are being honest.

With a quick search, you can find out plenty of information about someone using platforms such as Facebook, Instagram, and Twitter. Keep in mind that whatever you post on social media is there forever and can be used against you by trustees or creditors involved in your case.

When you make the decision to file for personal bankruptcy, you are required to truthfully share all your financials, including income, expenses, assets, and debts. If you leave things out, like a newly purchased boat, but share a photo of the boat on your social media, attorneys can use this against you. Or maybe you forgot to include your part-time job of refereeing rec league games when listing your income.  Whatever the case may be, if your financial disclosures are not accurate, it can harm your bankruptcy case.

When you file Chapter 7 or 13, what you purchase while your case is pending is extremely important, and there are rules and guidelines to follow. That is, you cannot spend money on irrelevant things while also not fully paying your creditors. Furthermore, purchasing expensive items or vacations and then posting about them can lead to problems.

Typically, trustees are not using social media platforms to investigate you and see what you are posting, but resentful creditors may try this tactic. Therefore, the best practice is to be truthful about your financials so that your bankruptcy filing goes smoothly.

If you are considering filing for bankruptcy protection, Craft Law Offices can help. With over 30 years of experience, we are prepared to handle your case efficiently and effectively. We will make sure your petition is complete and accurate at filing. Schedule your FREE consultation today, https://craftlawoffice.com/schedule-appt/

The Truth About Bankruptcy

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At Craft Law Offices our clients are often afraid of filing for bankruptcy because they are worried about the consequences. They have heard so many negative things about bankruptcy and they are confused with what they should do. The truth is bankruptcy may be the only way that they can stop repossessions, foreclosure, calls from creditors and legal action being taken against them.

Filing for bankruptcy may allow for some debts to be erased or possibly lower, more manageable monthly payments. The actual outcome will depend on the client’s overall situation, such as assets, debts, income, and expenses. But bankruptcy could actually help them start to rebuild their life and their credit.

Debt counseling programs do not come close. The best a debt counseling program can do is lower interest rates on your credit cards. If they are promising you more than that, they are not being truthful, and it could be a scam.

We do want to say that bankruptcy is not right for everyone. But when you have tried everything else it could be just the thing to help you get out of debt and back on your feet.

To make the bankruptcy process a little easier to understand, here are four bankruptcy facts we think you should know if you are considering filing for Chapter 7 or Chapter 13 bankruptcy.

Fact 1: You will not lose everything.

Many think that when you file for bankruptcy you have to give up your car, home and other assets. The truth of the matter is that you are likely to keep most of your possessions.

Fact 2: You will have most of your debts relieved.

Both Chapter 7 and 13 provide clients with relief from many forms of debt, but there are some exceptions that will not be relieved. In most situations, you cannot have debts that you are personally responsible for discharged or forgiven. Some examples of this include child support, taxes, and student loans. Normally you will be able to discharge your credit card, medical bill and personal loan debts. If you are considering bankruptcy, contact our office and bankruptcy attorney Leslie Craft can help you understand which debts will and will not be affected with a filing.

Fact 3: You are not a personal failure if you file bankruptcy.

Most people think that if they file for bankruptcy, they are a failure. This is simply not true. Did you know that over 60% of bankruptcies are caused directly by medical expenses? And over the past decade the cost of medical deductibles has grown seven times faster than average wages? What this means is that many bankruptcies are likely the result of wages versus poor fiscal management.

Fact 4: Your financial future is not ruined if you file for bankruptcy.

If you file for bankruptcy, you can anticipate paying higher interest rates and having limited access to credit for the seven to ten years that a bankruptcy appears on your credit report. However, shortly after you file for bankruptcy, your credit score could actually rebound by the time your bankruptcy is finalized.

Plus, there are many ways you can restore your credit after bankruptcy. There will be limitations , but if you make smart financial choices after your bankruptcy is finalized, you will be on the right path for a brighter financial future.

What is next?

We hope we’ve given you a little more information about what will and will not happen in the bankruptcy process. If you are still considering bankruptcy, contact our office and let Leslie Craft answer any other questions you may have.

At the Craft Law Office, no matter what your reason is for considering bankruptcy, we would like you to look at it as a tool that can help you take control of your finances. Bankruptcy is a tool that can help alleviate financial stress and provide you peace of mind.

Reasons People File for Bankruptcy

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Life is full of unexpected events, and some of these events create hardships. A great deal of the hardships created are financial, which forces individuals to consider filing for bankruptcy. If you find yourself facing any of these financial circumstances, and you’re not sure if bankruptcy is right for you, we encourage you to contact our office and schedule an appointment with Leslie Craft.

1. Harassment

For those of us who are paying off debts and loans, getting behind on your payments may result in harassment from creditors. Filing for bankruptcy can keep those pesky creditors at bay and allow you to get back on your feet without all the badgering.

2. Medical Bills and Unexpected Expenses

Medical emergencies are definitely unexpected. They come out of nowhere and they usually come with unexpected expenses and the ability not to work. The bills can add up quickly and become difficult to pay. Filing for bankruptcy can allow you to start over and get out of debt.

3. Job Loss

Losing your job is also a common reason to file for bankruptcy. Losing a job typically means losing all of your income, and it can be impossible to pay off any remaining debts. Deciding to file for bankruptcy could give you some time to get back to normal and find a new job without struggling with debt burdens.

4. Credit Card Debt

Credit cards can be a resource that very quickly turns into a stressful debt. Though credit cards are typically used responsibly, interest rates and fees along with paying off your monthly balance can easily result in overwhelming bills. Bankruptcy can be an alternative that allows you to wipe out your credit card debt and start fresh with a clean slate.

5. Divorce

The toll a divorce takes on you can cause you to feel extremely stressed and defeated. Add on the financial cost of lawyers, fees, and child support – and it can feel like you are sinking. Bankruptcy can allow you to catch your breath, lessen your stress, and settle your debts, allowing you to focus on other situations.

6. Student Loans

Student loan debt is a continuing problem that many are struggling with. Rules have been altered recently that make it possible for student loans to be cleared by filing for bankruptcy, making it easier to get back on your feet.

There are many reasons someone may choose to file for bankruptcy, but whatever the reason, it is extremely beneficial to have a bankruptcy lawyer by your side to guide you through this complicated and stressful time. Leslie Craft has over 35 years of experience handling bankruptcy cases and is prepared to handle yours with understanding and kindness. Contact Craft Law Office today to schedule your free consultation and get your financial future back on track.

Healthcare Power of Attorney vs. Durable Power of Attorney

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Craft Law Offices can help you get through complicated processes, including the procedures and paperwork of appointing a power of attorney. These documents help determine the distribution of your assets, as well as the amount/type of medical care you receive – but they can be complicated and confusing.

A Healthcare Power of Attorney gives you, the principal, the ability to choose and name a person that will be responsible for making any and all healthcare decisions if you are unable to do so. Typically, your Health Care POA document will detail exactly who will be able to make decisions for your care, and to what extent. To become a Health Care POA, you must be able to make health care decisions and be 18 or older.

A Durable Power of Attorney is a document that allows you to give another person the responsibility to make decisions regarding your finances and personal life, including paying your bills, and renting or selling your property. If you become unable to make your own decisions, a Durable POA will be able to make choices on your behalf.

The biggest difference between the two is that a Durable POA has a broader scope of the types of decisions they can make. Another difference is that a Healthcare POA only becomes activated when you are unable to make your own decisions. A Durable POA can be activated at any time, and this person can make choices on your behalf even when you are able to do so yourself.

Healthcare POA is useful in situations including medical emergencies, surgeries, and lifetime/long-term diseases. Appointing a Healthcare POA puts someone you trust in the position to make potential life-changing decisions for you, instead of leaving it up to a doctor. A Durable POA can be responsible in the same situations, plus more.

Limitations to Durable POA:

  • Power cannot be transferred.
  • Power to make decisions is only applicable while the principal is alive.
  • Power cannot go outside of what is outlined in the POA.

Limitations to Healthcare POA:

  • Only effective when the principal cannot make decisions for themselves.
  • Must adhere to the principal’s wishes.
  • Power to make decisions is only applicable while the principal is alive.

Whether you choose a Healthcare or Durable POA, you should choose someone that you trust to make decisions that you would be happy with. Whichever POA you decide to go with, Leslie Craft can help. With over 35 years of legal experience, Leslie will explain the process to you in a simple and clear manner you will understand. To schedule your free consultation, contact Craft Law Offices at 252-752-0297.

Do I REALLY Need to Hire an Attorney for a Traffic Ticket?

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A traffic ticket may seem like something that won’t take up a bunch of your time and will be easily rectified. However, most times, it causes a lot more inconvenience than you would think. Here are five reasons you should hire an attorney to help you with your traffic ticket!

1. Time

Hiring a seasoned attorney like Leslie Craft will save you valuable time. You will not have to call out and miss work, important meetings, classes, or games. Communicating with the court system can be difficult, and rescheduling because you can’t get off work could result in delayed cases or other issues. Hire an attorney to appear on your behalf and represent you, so you can continue your every-day routine.

2. Save Money

Even though prices vary depending on the traffic violation you committed, it is likely that the cost of an attorney will be cheaper than what you could end up paying if you are representing yourself. Comparing the fees of a lawyer to the court costs, fines, and other fees, the amount you save is astounding. Hiring a lawyer could keep you from paying additional fines AND getting your charges dismissed.

3. Increased Insurance

For many, the most expensive part about getting a traffic ticket is the increased cost of your insurance. Every time you get a traffic ticket, you run the risk of getting points added to your license, which result in your insurance becoming more expensive. Hiring a lawyer to defend your case in court can result in the possibility of getting your case dismissed, meaning your insurance rates will not change, and you will not have any points added to your license.

4. Driver’s License Points

Every time you are convicted of a traffic violation, “points” are added to your license. The worse the violation is, the more points you receive, and the harsher the consequences you will face. If you receive multiple traffic tickets in a certain amount of time and are convicted, you have the potential of getting your license suspended. Hiring an attorney could prevent you have having points added to your license, which affects the cost of your card insurance.

5. Expertise

Aside from all the saving you will do, consulting a lawyer for a traffic ticket is a great idea for the expertise and knowledge that lawyers have in this area. An attorney like Leslie Craft knows the best practices of defending a traffic ticket, such as interviewing witnesses, accessing traffic cam footage, and providing additional evidence that you alone may not have the ability to find. An attorney also knows how the court system works and knows what facts to argue to attempt to get you reduced consequences.

Leslie Craft has the experience and knowledge you need to face your traffic violation. Still not sure if you are ready to hire an attorney? Craft Law Office offers a free initial consultation. Give us a call at 252-752-0297 to schedule yours today!

Signs it is Time to File for Bankruptcy

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Having financial struggles is something that many people deal with every day. Many times, people put together budgets and cut out expenses to dig themselves out of a financial hole. However, sometimes these options are not enough to help. Here are five signs it may be time to file for bankruptcy.

  1. You have considered taking money out of your retirement fund.

If you are struggling with paying off your debts, and have considered dipping into your retirement fund, it may be time to consider filing for bankruptcy. For many 401ks and retirement funds, there is a huge penalty to pay if you take money out before a certain age. You will also no longer have this money for the future when you are ready to retire. Overall, there are more benefits to filing for bankruptcy than withdrawing from your retirement account. Leslie Craft has years of experience assisting people with filing for bankruptcy and is ready to answer any questions with compassion and understanding.

  1. You only use your credit card to pay for things.

Finding yourself paying for everything with your credit cards? Filing for bankruptcy may be the next step to start fresh and get out of debt. Credit cards can be useful when used correctly, but many people often find themselves swiping their credit cards for every purchase and paying back the minimum. Filing for bankruptcy could give you a clean slate so you can start over and get your credit back on track.

  1. Your cards are maxed out.

Using your credit cards to pay for everything you buy, and your credit cards are maxed out – now what? You may start putting off important purchases like doctors’ appointments, car maintenance, or home necessities. Putting off these necessary purchases because you cannot afford them could be an indication that it is time to file for bankruptcy. Do not let debt build-up keep you from buying things you need. Contact Leslie Craft for assistance and next steps on filing for bankruptcy.

  1. After paying your bills, you have no money left over.

Once you pay your rent and bills, buy gas for your car, and pick up your groceries for the week, do you end up having any money left over? If the answer is no, filing for bankruptcy could be the next move for you. In this day and age, things are growing increasingly expensive, and it can be normal to not be able to buy a trip or a new pair of shoes. However, having no money for fun activities or items each time you pay your bills could mean you are overspending in other areas. This could also be an issue if you have new bills to pay for, like student loans or car payments.

  1. Creditors have reached out to you.

If creditors have been pestering you because they have not been paid, it may be time to discuss personal bankruptcy with an experienced bankruptcy attorney. Creditors can be extremely persistent when they are trying to reach you regarding your debts. Filing for bankruptcy can put an end to the constant calls.

Filing for bankruptcy can be a scary decision, and having a professional and experienced lawyer like Leslie Craft can help ease stress and pressure. Ready to get your financial situation back on track? Contact Craft Law Offices at 252-752-0297 and schedule your free consultation with us today.

Myths about Estate Planning

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There are many reasons you should have an estate plan. There are also many myths about estate planning that could prevent you from having one in place, but having a plan can help your loved ones once you are gone. Here are some of the myths we most often hear.

Myth 1: Estate planning is only for ‘rich’ people.

Many people think that only wealthy people need to have an estate plan. Estate planning is for everyone, and gives you peace of mind regarding your finances, decisions about your health, and your relatives. For the average family, estate planning can make it easier for family members when it comes time to split up assets, property, and heirlooms.

Myth 2: I am not old enough to start estate planning.

A common misconception is that only older people need to have an estate plan. In today’s world, life can change in a second and it is important to be prepared for the unknown. Craft Law Office can help you decide when to start and where to begin. Some may feel like they are ‘planning for their death,’ but getting your wishes and affairs in order and on paper is just a starting point. Accidents occur all the time, and Leslie Craft knows that this process could be an emotional and serious time. At the Craft Law Office, we are prepared to help you reach the best decision for you and your family.

Myth 3: You do not need a lawyer to help you.

Some may think estate planning can be done without a lawyer or legal assistance; this is true, but not recommended. There are so many documents and processes to cover, and it can be extremely helpful to have an expert there to answer questions, give advice, and come up with a plan that will benefit you and those you love. At Craft Law Office, Leslie has over 30 years of experience with estate planning, so you and your family can trust that your estate plan meets all your needs.

Myth 4: Estate planning is expensive.

Estate planning does not have to cost you an arm and a leg. Though planning your estate may seem like a trivial process to pay for, it is important to have it done correctly. There are many free ‘do-it-yourself’ versions of estate planning, but they often lead to mistakes, making an already-difficult time for your family even harder. With the help of a qualified lawyer, your estate planning will be error-free.

As you can see there are misconceptions about estate planning. The topic can be complex, and it is constantly changing, However, knowing the truth about these myths could help you avoid mistakes. If have questions about estate planning, or are ready to start the process, give the Craft Law Office a call at 252-752-0297. Schedule your free consultation with Leslie and let her help you through the process!