Some Kentucky residents at a certain unfortunate period in their lives may find themselves in a position in which they must consider the option of going into bankruptcy. If these people happen to be homeowners, then it often may be the case that they can no longer afford their primary residence, and thus find themselves facing foreclosure as well. If you or a loved one are in this position, then you may want to know all the options available to you, specifically whether it would be beneficial for you to file for bankruptcy to stop foreclosure.
Bankruptcy and Foreclosure
Black’s Law dictionary defines Bankruptcy as being in the condition of not having enough money to pay back what one owes. When you purchase a home through a mortgage, you possess a lien. A lien is a legal right for the lender to maintain possession of the property until the mortgagee pays the entire debt. If you find yourself in a state of bankruptcy and are no longer able to repay the debt you owe on a mortgaged property, the lender (the bank in many cases) may take possession of the property. The action of repossession by the lender, by means of a legal proceeding to terminate the mortgagor’s interest in the property, is known as a foreclosure. The purpose of the proceeding is so that the lender can recover the balance of the loan from the borrower by forcing the sale of the property. The purpose of the forced sale is to recuperate the balance owed to the lender.
The Commonwealth of Kentucky and the State of Ohio are two of the twenty-two states which require the lender to gain permission from the courts in order to proceed with a foreclosure action. Foreclosure, by this means is known as judicial foreclosure. In Kentucky the respondent has 20 days to reply to the foreclosures notice. In Ohio the borrower has 28 days to respond to the summons and complaint. Failing to respond, or responding late, may result in a default judgment against the borrower. If your home is worth more than the balance that you owe on your mortgage, then your home is considered to have equity. Your home equity among other things will determine whether you should file for either Chapter 7 or Chapter 13 bankruptcy.
The U.S. bankruptcy code court outlines five types of bankruptcy. The two types that are most relevant to this topic are Chapter 7 and Chapter 13 bankruptcy. The courts refer to Chapter 13 bankruptcy as the wage earners plan. The wage earners plan enables individuals to settle their debts in full or in partial. One of the advantages is that an individual who files for Chapter 13 may save their properties from foreclosure. As of the time of this writing, an individual is eligible for Chapter 13 so as long as his or her unsecured debts are less than $394,725 and their secured debts are less than $1,184,200. Chapter 7 Bankruptcy in contrast is essentially a petition for the liquidation of the individual’s assets, or a sale of the assets of the debtor in order to fulfill his or her obligations to creditors. The option of Chapter 7 is available to individuals, partnerships, corporations or business entities.
Three to Five-Year Installment Plan
Under Chapter 13, the debtor may pay his creditors in installment plans that can range from three to five years. The length of the payment plan is determined by the debtor’s monthly income in relation to the median income of their state of residence. For instance, if the debtor makes more than the state median then the plan is generally for five years. During this five-year installment plan the federal law forbids creditors from starting or continuing collection efforts.
Kentucky State and Federal Income Tax Discharge, Interest, and Penalties
Another benefit of filing for bankruptcy is that it can assist the petitioner with income tax debts. After filing for Chapter 13, the debtor can discharge any of his income tax debt if he or she meets two deadline conditions: 1) More than three years have passed since the tax return for the tax was due; and 2) more than two years have passed since the tax return was filed with the IRS and or the state. Under Chapter 13, however, you are shielded from the IRS and State during the period in which you are paying off the tax debt. Additionally if your salary is below the state median and you file for chapter 13 bankruptcy, in most cases your income on all unsecured debt is dischargeable. In some cases, penalties and interest can be erased as well. Kentucky petitioners find that the most advantageous of the provisions they are granted is the automatic stay. An automatic stay is when the enforcement of a debt, judgement, lien or claim against you is temporarily suspended.
[One of the advantages of debt cancellation through Chapter 13 is that the petitioner is not required to file an IRS form 1099c, also known as a cancellation of debt form. If a debt is forgiven, the 1099c form requires the debtor to report the forgiven debt as income. This income is in turn then taxable by the IRS. The reason that the forgiven debt is reportable as income is because it is a prior loan obligation that you are no longer obligated to pay.
However, a debt that is erased by bankruptcy is not forgiven. Rather, the operation of law cancels the debtor’s legal liability to pay for the debt. The debt still exists, and the creditor would still like to be paid. But the bankruptcy court’s discharge prevents the creditor from making any attempts to collect. Since the debt is not forgiven, and in fact still exists, there nothing that the IRS can tax. Bankruptcy is perhaps the only methods of erasing a debt that works this way, so the tax advantage is unique.]*
A specialized attorney will best assist you in determining your particular circumstances so do not hesitate to contact one as soon as possible.
Lawrence & Associates has been helping Northern Kentucky residents save their homes for more than ten years, and we are now one of the largest bankruptcy firms in the state! Give us a call to schedule a FREE consultation with an attorney, by phone or in-person! We’re Working Hard for the Working Class, and we want to help you!
*Note to the reader: The law student that assisted with writing this article did not provide this section at the time this article went to press. Therefore, the bracketed section has been filled in by management.
Posted on Thursday, February 1st, 2018 at 10:05 am
Divorce can be an unfortunate situation for a married couple in endless ways and will almost always have a detrimental effect on the parties’ financial situations. Frequently, one or both individuals seeks relief from United States Bankruptcy Court for a Chapter 7 case after the conclusion of the divorce. Although the immediate stressors of the marriage and divorce lessen, the financial strain can be worse. By considering a joint Chapter 7 bankruptcy prior to the divorce, a couple can receive unexpected benefits that offer at least some small relief to an otherwise difficult situation.
The following pros and cons should be considered by individuals who find themselves facing financial hardships and potential divorce.
Cost and Time
With most attorneys, the cost of filing a bankruptcy is the same for an individual or married couple. By filing the bankruptcy jointly, a divorcing couple cuts the cost in half as well as the time and preparation involved. There will be one filing fee, one fee for attorney work time, one set of documents, one court hearing, etc.
Cooperation. Filing a joint Chapter 7 will require the divorcing couple to work together to ensure their attorney has all the necessary documents and will require that they attend at least a couple meetings and court hearings together.
Probably one of greatest benefits to filing a Chapter 7 case prior to divorcing is that all debt liability is wiped away for both Debtors on all applicable debts. Should the parties file after the conclusion of the divorce, the property settlement will typically trump a subsequent bankruptcy and could leave one of the individuals liable for the ex-spouse’s debts. For example, if the family court orders the husband to pay the wife’s credit card debt, he cannot avoid doing so by filing a Chapter 7 Bankruptcy after the fact. If the couple files a joint bankruptcy prior to the divorce, neither party has any such debt.
If one spouse chooses to file an individual bankruptcy prior to the divorce, the other spouse could be left liable for all the debt. This could be financially devastating and ultimately push that spouse to a bankruptcy anyway.
Filing a joint bankruptcy prior to divorce allows a couple to double the exemption limits. In a bankruptcy, a couple can have a certain amount of value in assets. Equity in a car or house can sometimes exceed the allowed exemption. By filing jointly and using a double exemption, the couple can better protect their assets through the bankruptcy.
The couple will ultimately still have to agree on the division of any such equity in their subsequent property settlement!
Filing a bankruptcy prior to the divorce will protect each individual’s divorce attorney from being listed as a creditor subject to discharge in a subsequent case. This is a pro for both attorneys and Debtors. Divorce attorneys are given the reassurance that they will be compensated for the work they do and Debtors will benefit from an attorney who is more willing to offer lower retainer fees and payment plans.
In applicable situations, family law attorneys would be wise to refer their clients to a local bankruptcy attorney for a consultation prior to the initiation of the divorce proceedings. Taking such action can offer tremendous benefits to the couple, can simplify the divorce case, and can provide protection for future legal work on the divorce case.
In contrast, individuals considering a Chapter 13 bankruptcy should seek to finalize their divorce first. A Chapter 13 typically lasts 3 – 5 years and is based heavily on household income, expenses, and secured debts that need to be paid. Couples who are in a Chapter 13 together prior to divorcing typically incur additional attorney fees to bifurcate the original case and put them in their own Chapter 13 cases.
Taxation is something few think about during most of the year, absent the occasional article in the paper or segment on the news concerning the potential for tax reform. However, during the latter portion of the year, particularly between the New Year Holiday and April 15, otherwise known as “Tax Day,” taxes are a topic that come to the forefront of most working Americans’ minds. Although most do not look forward to the prospect of “filing taxes,” many can expect a refund for the amount they have overpaid through the year. For those in the midst of bankruptcy, or considering filing for bankruptcy, a natural concern that arises is what may happen to their tax refund. Although everyone’s circumstances vary, and those that find themselves in this position should seek out legal counsel, this blog post aims to provide a general answer to that question.
Can One’s Tax Refund Be Protected During Bankruptcy, Or Is It Subject To Seizure?
When an individual files for bankruptcy in Northern Kentucky, the vast majority of that person’s assets (the “non-exempt” assets) become part of what is referred to as the “bankruptcy estate.” The “bankruptcy estate” is defined by the U.S. Bankruptcy Code in 11 U.S.C. § 541. Section 541 defines the estate in sweeping terms, and, under most circumstances, one’s tax refund will be considered part of the bankruptcy estate. Whether one’s tax refund becomes part of the bankruptcy estate depends on a variety of factors, including the timing of the filing of bankruptcy, the year in which the income for which the refund is given was earned, and under what Chapter of bankruptcy one files, as well as how one chooses to utilize their “exemptions.”
The best way by which to illustrate the above is by way of example. Hypothetically, if a “debtor” were to file Chapter 7 bankruptcy in January of 2017, and were to subsequently receive a refund for the 2016 tax year, then that money will become part of the bankruptcy estate. Many may find this result somewhat confusing, since the tax refund is received after filing for bankruptcy. The underlying reasoning is grounded upon the period of time in which the money was earned and paid to the IRS; since the money was earned, and taxes on that income were to paid to the IRS, prior to bankruptcy, then the money one receives in the form of a tax refund as the result of any overpayment in taxes is viewed as though it was received throughout the previous tax year, as opposed to after filing for bankruptcy. As one source puts it, the way in which the law views this scenario is somewhat analogous to a savings account – the money overpaid in taxes for the 2016 tax year is “saved” by the IRS, just as one would place funds in savings, and the subsequent tax refund is similar to a “withdrawal.” Thus, under this hypothetical situation, although the debtor does not, in reality, receive the funds until after filing for bankruptcy, the money was earned and taxes paid prior to the filing, and will therefore likely be swept into the bankruptcy estate.
Another example arises when one files for bankruptcy and receives a tax refund for the same year. The following facts are illustrious of this hypothetical scenario: debtor files for bankruptcy in June of 2017, and subsequently receives a tax refund for the 2017 tax year in April of 2018. The question arises: does the tax refund get swept into the bankruptcy estate, as was the result under the immediately preceding set of facts? The answer is “yes” and “no.”
Here, the tax refund will be divided into two separate and distinct groups, the first being that portion of the refund attributable to income earned prior to filing for bankruptcy, and the second being that portion attributable to money made after the filing. The first group (that portion of the tax refund that is based on income earned before filing) is subject to being swept into the bankruptcy estate, while the second group (that portion of the tax refund that is based on income earned subsequent to filing) will likely escape the clutches of the estate. In other words, the amount of the tax refund that is calculated based on income earned prior to June of 2017 will become part of the estate, while the amount attributable to income earned subsequent to June of 2017 may be protected.
Another example provides some clarity with respect to a third, commonly seen situation. Assume debtor files for bankruptcy in December of 2016, and later receives a tax refund for the 2017 tax year. The concern that immediately comes to mind is whether the 2017 tax refund will be protected, or whether it will be subject to seizure. Here, the debtor will most likely get to retain the full amount of the tax refund, because all the income upon which the taxes were assessed was earned subsequent to filing for bankruptcy. In other words, the entire amount of taxes overpaid for the 2017 tax year were paid after filing for bankruptcy, and would thus generally escape being swept into the bankruptcy estate.
A final wrinkle that may be a concern for some is what happens to their tax refund in the context of a Chapter 13, as opposed to a Chapter 7, bankruptcy. The answer is largely grounded in the legal ramifications associated with filing for one type of bankruptcy over the other. When a debtor files bankruptcy under Chapter 7, the bankruptcy trustee takes possession of all of the debtor’s non-exempt property and/or assets, liquidates them (hence the term often used to refer to Chapter 7 bankruptcies, “Chapter 7 Liquidation”), and distributes the cash to the debtor’s creditors. Generally speaking, after the liquidation and subsequent distribution occurs, the debtor is “discharged” of all debts incurred prior to the bankruptcy filing. Under Chapter 13, on the other hand, a debtor repays their debts through utilization of their income, and may retain some of their assets. The period of time in which a debtor makes payments toward their debts is often referred to as a “repayment plan,” and typically lasts three to five years. Once the repayment plan is completed, the debtor’s debts are “discharged.” However, the critical difference between Chapter 7 and Chapter 13 bankruptcies in the context of retention of one’s tax refunds is centered around what is called “disposable income.” To put it in very general, broad terms, under a Chapter 13 plan, one’s “necessary and reasonable” expenses (i.e., generally, those expenses required to live, including, but not necessarily limited to, food, clothing, shelter, etc.) are subtracted from their regular income, and the resulting figure is known as the debtor’s “disposable income.” Most often, when a debtor files a Chapter 13 bankruptcy, and files a repayment plan with the court, tax refunds are not considered in the debtor’s income, and is thus not utilized in calculating the debtor’s necessary and reasonable expenses and disposable income. Thus, when a Chapter 13 debtor receives a tax refund, the amount received is most often considered “disposable income,” since the repayment plan accounts for the debtor’s regular income, regular expenses, etc., but does not factor in the additional funds a debtor will receive when given a tax refund. To put it more simply, the tax refund is, in a way, considered “extra money,” money that the debtor does not need to pay for their “necessary and reasonable” expenses; therefore, it is considered “disposable income,” and will be used to pay the debtor’s debts during the course of the repayment plan. Generally speaking, unless there is some “necessary and reasonable” expense that has not been taken into account by the repayment plan, then the chances of a debtor retaining their tax refund throughout the repayment plan period in a Chapter 13 bankruptcy is slim.
Are There Other Ways One Can Protect Their Tax Refund In The Midst Of Bankruptcy? Can Tax Refunds Be Utilized For The Payment Of Legal Fees Rendered In Filing Bankruptcy?
Although options are varied, many facing bankruptcy may think of paying legal fees through utilization of one’s tax refund as a means of protecting their refund during bankruptcy. For those considering such an option, it should be noted that others have pursued the same means of protecting their tax refund in the past. To determine the feasibility of this option, the following case law will be discussed.
In In re Hunter, the United States Bankruptcy Court for the District of Kansas was faced with the question of whether the assignment of a debtor’s tax refunds to their attorney as a method by which to pay legal fees would be protected, or swept into the bankruptcy estate. The particular circumstances are as follows: the debtors executed an assignment, operation of which allowed for their attorney to receive the pre-petition portion of their tax refunds as a flat-fee retainer in exchange for legal services rendered in filing for Chapter 7 bankruptcy. The bankruptcy trustees moved the court for an order forcing the pre-petition portion of the debtors’ tax refunds into the bankruptcy estate.
In support of their motion, the trustees made three primary arguments. The first argument the trustees set forth was predicated on 11 U.S.C. § 544(a), which, generally, provides for the avoidance of “any transfer of property of the debtor or any obligation incurred” under certain circumstances. Those particular circumstances in this case, and from the point of view of the trustees, was that the debtors could not “assign what [was] an essentially undivided and unliquidated expectant interest based upon a notional ‘accrual’ date.” Secondly, the trustees argued that the “debtors [were] required to marshal away from that part of the refund to which the estate [was] entitled.” Finally, the trustees were of the view that assign that portion of their tax refund attributable to pre-petition earnings “‘burden[ed]’ the creditors by effectively forcing them to pay the debtor’s attorneys’ fees and that this burdensome effect render[ed] the assignments fraudulent transfers done for the purpose of hindering or delaying the debtors’ creditors.” The debtors, on the other hand, made one simple argument: “an assignment of pre-petition tax refunds for payment of a flat fee is no different than a debtor paying an attorney a flat fee in cash; the result in either event is that the payment does not become property of the estate,” they argued.
The court largely agreed with the debtors. The court looked to statutory and case law in reaching its conclusion, drawing upon 11 U.S.C. § 330(a)(1), United States Trustee v. Lamie, In re Wagers, and In re Carson. Drawing upon all the previously identified law, the court determined that a “flat-fee retainer assigned for work done incident to filing a chapter 7 does not become property of the estate”; rather, “the assignment of an anticipated tax refund as part of or all of a flat-fee retainer is enforceable against the estate, at least to the extent of the amount of the flat fee.” The court finally concluded: “the benefits . . . to the debtors and to their creditors of having chapter 7 debtors well represented to outweigh the relatively small detriment that these assignments may work on the creditors. The assignments of these debtors’ expectancy interests in their tax refunds, limited as they are by the amount of the flat fees owed and by the amount of the refund that would be determined attributable to the estate are valid and enforceable. They do not significantly differ from a cash retainer payment that depletes the debtor’s resources before she files a case. So long as the fees are not fraudulent or excessive, there is no basis for the Trustees to recover them.”
It is important to keep in mind that different courts are held and bound to differing rules of law, depending on the jurisdiction. Although the results reached in In re Hunter may seem encouraging, the results reached there are not necessarily applicable in other jurisdictions. As always, it is important to speak to counsel regarding one’s own personal circumstances before coming to any determinations on how best to proceed.
Editor’s note: In the Covington Division of the Eastern District of Kentucky Federal Court, where all Northern Kentucky bankruptcies are heard, the Court and Trustees regularly allow debtors to use their tax refunds to pay for the bankruptcy attorney’s fees.
Depending on a variety of factors, some of which have been discussed above, a debtor facing the possibility of filing bankruptcy may have some options when it comes to possible retention of their anticipated tax refunds. However, there are a wide array of considerations that must be kept in mind when discussing bankruptcy. Although this post has focused primarily on what many consider to be the most common types of individual, consumer bankruptcies (that is, Chapter 7 and Chapter 13), one may consider Chapter 11 under certain circumstances, as well. Another consideration that was not addressed here involves whether one even qualifies for Chapter 7, or would be pushed into a Chapter 13. Such a determination is based on many factors, one of which is referred to in the bankruptcy arena as the “Means Test.” These considerations are briefly mentioned here to illustrate that the general overview provided above is by no means exhaustive or authoritative, to simply demonstrate that everyone’s circumstances vary, and, depending upon those circumstances, one option may be more appealing than another. Ultimately, however, certain debtors may feel somewhat more comfortable traversing the obstacles of bankruptcy with the knowledge that they may be able to, in one way or another, protect an anticipated tax refund.
If you’re considering using your tax refund to file a bankruptcy, call Lawrence & Associates! We’ve been helping people in Northern Kentucky keep their tax refunds for more than a decade. We’re Working Hard for the Working Class, and we want to help you!
The following post is part of our Law Student Blog Writing Project, and is authored by Thomas Rovito, who is pursuing his Juris Doctorate at the Ohio State University.
How Holiday Credit Card Debt Could Impact Your Kentucky Bankruptcy
The consumer advocate news outlet NerdWallet estimates that the average American will spend $660 for holiday gift transactions. Two other statistics to note include that the number of Americans in credit card debt after the holiday season has been increasing, from 48% of shoppers in 2015 to 56% of shoppers in 2016, and that 27% of Americans did not have a holiday shopping budget in 2016; of those who did have a budget, 24% exceeded it. These statistics beg the question on what would happen if a shopper stocks up on Christmas presents using his credit card, and then subsequently files for bankruptcy. Will those retail store creditors turn into the Grinch and seek the return of gifts from family and friends, or would something else happen?
The answer is in the Bankruptcy Code. But before jumping headlong into the primary source material, secondary sources can provide guidance on this topic. For instance, the Administrative Office of the United States Courts has provided an overview of Bankruptcy Basics to introduce lay people to the topic. The Ohio State Bar Association and the Kentucky Bar Association both have pamphlets on bankruptcy. In addition, third-party sites, such as Findlaw and Nolo, have easy-to-use resources.
While the Bankruptcy Code is full of legal terms of art and abstract legal concepts, they can be broken down to individual and applicable ideas. For instance, there are six different forms of bankruptcy, but in most cases only Chapter 7Liquidation or Chapter 13Adjustment of Debts of an Individual with Regular Income would apply to individual consumers with credit card debt. In Chapter 7 bankruptcy, which is means-tested to prevent abuse, a trustee liquidates the debtor’s assets for cash to pay creditors, unless the specific piece of property is exempt, to give the debtor a fresh start. In Chapter 13 bankruptcy, a debtor may retain valuable assets, such as his home or vehicle, and structure payments to creditors in accordance with his income. Chapter 7 bankruptcy is typically quicker, taking about four months to obtain discharge, to Chapter 13’s duration of three to five years. All Northern Kentucky bankruptcies are filed in federal court in Covington, Kentucky.
The objective of the debtor should be to obtain a discharge, which “releases the debtor from personal liability for certain specified types of debts.” But not all debts are created equal. There is also a material difference between secured debt (“[d]ebt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default,”) and unsecured debt (“debt for which a creditor holds no special assurance of payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor’s assessment of the debtor’s future ability to pay”). For more information on this distinction, please refer to 11 U.S.C. § 506. While most credit card debt is unsecured, it is important to note that some credit card companies and department store cards retain a security interest, or purchase money security interest, within their contracting agreement with the consumer, often in the fine print of the bottom of the credit card agreement. This security interest would act like collateral on outstanding transactions, and would give the credit card company or department store the right to repossess the property if it was not paid in full. While most credit card debt is unsecured, larger luxury purchases such as televisions, are likely covered by a security interest, and can be repossessed.
So how do these concepts apply to a consumer who builds up debt during the holidays? First, the consumer should look at the distinction between secured and unsecured debt. If the consumer has secured debt, or debt with collateral, then potential creditors could attach the property (like a home, car, or improvements on a vehicle) in the event of default. On the other hand, If the consumer has unsecured debt, which is the category of most consumer credit card purchases, then the creditor cannot attach the assets in event of default; however, the creditor may use a debt collector to compel payment, report the failure to credit agencies–reducing the debtor’s credit score and increasing the cost of future loans, or go to court to garnish the wages of the debtor. In addition, the ultimate disposition of the debtor’s credit card issues would also depend on whether the credit card company or department store retained a security interest in the property; if so, there is the possibility the property could be repossessed.
There is a matter of timing for debts to be considered dischargeable. Under 11 U.S.C. § 523(a)(2)(C), “debts owed to a single creditor and aggregating more than $675 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable.” In plain English, this means that debts to a single company that add up to more than $675 for goods not necessary for the support of the debtor (for example, food, water, shelter), are presumed to allow the creditor to collect against the debtor. Thus, if you exceed more than $675 in holiday credit card debt on luxuries, and not essentials, it may impact future bankruptcy proceedings.
In addition, it is important to note that the bankruptcy court may deny discharge in a case if there are fraudulent conveyances, or an attempt to shift assets from the debtor to third-parties for the purpose of avoiding paying creditors. To learn more about this topic, please see 11 U.S.C. § 727; Fed. R. Bankr. P. 4005. In addition, the trustee of the estate or a creditor may petition the bankruptcy court to revoke a discharge “if the discharge was obtained through fraud by the debtor.” See 11 U.S.C. § 727(d).
Ultimately, a decision to file for bankruptcy is serious, as it may place your assets in jeopardy and drastically impact your credit rating. On the other hand, if it is structured correctly, bankruptcy can provide you with relief from creditors, especially after the holidays with consumer credit card debt, while preserving your most precious assets, such as your home or car. It is important to note the distinction between secured debt (secured by collateral) and unsecured debt (that is not secured by collateral) before engaging in holiday transactions, in addition to determining whether your credit card company retains any security interest in your transactions by reading the fine print of the credit card agreement. This information, when coupled with sound budgeting, fiscal discipline, and adequate financial disclosure, can make the difference between jingle bells or jingle blues this holiday season.
Lawrence & Associates has offices in West Chester, Ohio and Fort Mitchell, Kentucky. We’re Working Hard for the Working Class, and we want to help you!
There are a lot of reasons to file a bankruptcy, and there are even more reasons to not want your spouse involved. From our Northern Kentucky office, Lawrence & Associates has filed thousands of bankruptcies and seen hundreds of scenarios where it would benefit the people in debt to have only one spouse file for bankruptcy. While we’ve discussed the effect on a non-filing husband or wife when their spouse needs to file bankruptcy before, there are many angles to this question that appear in multiple blog posts rather than all in the same place. This post will consolidate that information.
How Do You Decide Whether Both Husband and Wife Need to File Bankruptcy Together?
The most important consideration here is determining which debts are driving you toward bankruptcy, and whose name the debts are in. Debts that were obtained in both spouses’ names will make each spouse jointly and severally liable for payment of that debt. For example, if you are behind on your credit card payments and afraid of getting sued, a Chapter 7 bankruptcy is one way to get out from under that high interest rate debt. But who signed the credit card agreement and whose name is the account in? If only the husband or only the wife signed, then only that spouse will need to file bankruptcy. But if both spouses signed the agreement or have cards in their names, then both spouses MUST file bankruptcy to wipe out the debt. If only one spouse files, then the credit card company can still sue the non-filing spouse.
If you don’t know whether you might be liable for your husband or wife’s debt, the answer depends on where you live. We covered Kentucky’s equitable division rules previously in this blog, but only at the state level. At the county level, even in an area as small as Northern Kentucky’s seven counties, there is wide variation depending on the judges involved. Boone and Gallatin Counties have one family law judge; Kenton and Campbell counties each have their own family law judge; Pendleton and Robertson Counties share a family law judge with other counties outside the Northern Kentucky area, and; Grant, Bracken, and Mason Counties don’t have a family law judge at all! This wide variation creates a great deal of variability, but usually both spouses will be liable for debt even if only one spouse took out the debt. However, Lawrence & Associates’ attorneys are skilled at finding exceptions to the general rule, so ask before you assume this will apply to you.
Map of Boone, Kenton, Campbell, Gallatin, Grant, Pendleton, Mason, Bracken, and Robertson Counties in Northern Kentucky
One thing to bear in mind is that leaving one spouse’s name off of the bankruptcy will not affect what kind of bankruptcy you can file. High income earners must file a Chapter 13 bankruptcy, because federal law will not allow anyone to file a Chapter 7 if they are making more than median income for their state. However, that median income is the income of the household, not the person filing. So, for example, assume a Northern Kentucky family makes above median income because the wife is a highly paid doctor, while the husband is disabled. Even if only the husband has debt and only the husband needs to file bankruptcy, the husband will be forced into a Chapter 13 bankruptcy because the wife’s income raises the total household income above median. Leaving the doctor off the bankruptcy will protect her credit, but will not change the husband’s bankruptcy from a 13 to a 7.
Will Filing Bankruptcy Affect My Spouse’s Credit?
In general, credit is linked to a social security number, and only the bankruptcy filer’s social security number appears on the bankruptcy filing. Each person has a separate credit file for credit reporting purposes. Your debts, if the debts are truly yours alone, are not supposed to show in your spouse’s credit report. Similarly, your bankruptcy should not show in your spouse’s file if you have no joint debts.
Will My Spouse Have to Come to Court or Be Involved?
Your spouse will certainly know a bankruptcy has been filed – the court and your attorney will mail things to your home – but your spouse should not have to attend any hearings or meetings with an attorney in the vast majority of cases.
Will Anyone Notify My Spouse’s Employer?
It is illegal for a creditor to notify your employer or your spouse’s employer, or any family members, landlords, etc. in an attempt to collect a debt. Further, the bankruptcy court only sends notices to people listed on the bankruptcy, including the debtors, the creditors, and any co-signers. As long as your husband’s or wife’s employer doesn’t fall into those categories, there is no reason the employer should find out about the bankruptcy.
One exception to this rule would occur if you choose to have your Chapter 13 bankruptcy payment (which goes to the Chapter 13 Trustee) pulled directly from your spouse’s paycheck. A paycheck garnishment is the most common way to make this payment, and the filing spouse sometimes between jobs, or has some other circumstance that makes pulling the payment from the non-filing husband or wife’s paycheck the most attractive option.
If you have any other questions about this topic, please call our Fort Mitchell, Kentucky office at 859-371-5997. We are one of the largest bankruptcy filers in Northern Kentucky and helped over 3,000 clients. We’re Working Hard for the Working Class, and we want to help you!
The following post is part of our Law Student Blog Writing Project, and is authored by Thomas Rovito, who is pursuing his Juris Doctorate at the Ohio State University.
The Social Security Administration (SSA), which has local offices in Cincinnati, Ohio and Florence, Kentucky, publicized in its report Disability Benefits that “a 20-year-old worker has a 1-in-4 chance of becoming disabled before reaching full retirement age.” This imperative displays the need to demystify the byzantine process of the calculation of benefits from past wages after the finding of disability through the SSDI formula from 42 U.S.C. § 415. This article details SSA and third-party resources on calculating SSDI benefits, as well as the fundamentals of calculating SSDI benefits.
But for those wanting to explore the process further into the actuary tables and formulas from the Social Security Handbook, this guide is designed to provide an overview on the fundamentals of the SSA benefit calculation process for SSDI. Please note that this article concerns the Title II SSDI program (for workers who have paid into Social Security over the course of their career), and not the Title XVI Supplemental Security Income (SSI) program (for disabled persons with limited assets).
Much like a high school algebra problem, the SSDI program calculation requires several steps, and can be best illustrated through hypothetical problems. The first step is to multiply the beneficiary’s nominal earnings by the yearly index factors to determine the beneficiary’s indexed earnings. The index factor settles at the flat rate of 1.0000 when the beneficiary is eligible for benefits, with the same rate applying to the two years before the beneficiary claimed eligibility. To find the index factor for previous years, divide the Average Wage Indexing Series (AWI – or the average wage for the year) when the beneficiary turned sixty by the AWI of the year of employment. The beneficiary would then multiple his nominal earnings by the index series to obtain his yearly indexed earnings.
Social Security Administration, Average Wage Indexing Series Graph
These concepts can be vividly illustrated through a hypothetical question (similar to two hypothetical illustrations by the SSA). Beneficiary (B) is eligible for SSDI benefits in 2018 at age sixty-two; thus, a flat rate of 1.0000 would apply as his index factor for 2017 and 2016. For previous years of employment, he would take the AWI from when he turned sixty by the AWI for his year of employment. B would then multiply his nominal earnings by the index factor for each year to determine his indexed earnings.
B’s Earnings from 2017-2012 (with Subsequent Years Omitted) Formula: Nominal Earnings x Index Factor = Index Earnings Index Factor = AWI of B at 60 / AWI of Year of Employment
The next step would be to calculate the “average indexed monthly earnings” (AIME). This amount is computed from the top thirty-five years of indexed earnings added together, and then divided by the number of months within the thirty-five years, or four hundred and twenty months. If the beneficiary worked for more than thirty-five years, only the thirty-five largest indexed earnings would count, and the other years would drop off from the calculation.
Returning to B in the hypothetical, let’s say he worked for forty-five years before suffering his disability. Only the largest thirty-five years of indexed income would apply. The largest thirty-five indexed income rates would be summed. This amount would then be divided by four hundred and twenty to yield the AIME.
Formula: (Largest 35 Index Earning Summed) / 420 = AIME 420 came from 12 (months) x 35 (years)
The third step is to use the AIME figure to assess the beneficiary’s primary insurance amount (PIA). The PIA formula is a function of the AIME, which is contingent on the year of first eligibility. The PIA formula will consist of bend points. The amounts for 2018 are:
90 percent of the first $895 of his/her average indexed monthly earnings, plus
32 percent of his/her average indexed monthly earnings over $895 and through $5,397, plus
15 percent of his/her average indexed monthly earnings over $5,397.
Using the numbers from the another SSA hypothetical, B, who was eligible and retired in 2018, has a AIME of $4,059, with the 2018 first PIA bend point of $895, and the PIA second bend point of $5,397. Cost of Living Allowance (COLA) does not apply.
.9 (First PIA bend point of eligible year) + .32 (AIME – First PIA bend point of eligible year) = Gross Monthly SSDI Calculation (truncated to the next lowest dime) .9 (895) + .32 (4059 – 895) = $1,817.90 (truncated from $1,817.98)
On the other hand (again, using the numbers from another SSA hypothetical, B2, who was eligible in 2014, but did not take until 2018, would have access to COLA adjustments from 2014 through 2018. In addition, if B2 had an AIME of $9,144, the first 2014 PIA bend point of $816, and the second 2014 PIA bend point of $4,917, the respective calculation would be:
9 (First PIA bend point of eligible year) + .32 (Second PIA bend point of eligible year – First PIA bend point) + .15 (AIME – Third PIA bend point of eligible year) = Gross Monthly SSDI Calculation (truncated to the next lowest dime) .9 (816) + .32 (4,917 – 816) + .15 (9,144 – 4,917) = $2,680.70 (truncated from $2,680.77). The COLAs of 2014 through 2017 apply (1.7%. 0.0%, 0.3%, and 2.0%), which yield $2,788.90. COLA x Gross Monthly SSDI Calculation = Modified Monthly SSDI Calculation .04 x 2,680.70 = 107.28 107.28 + 2,680.70 = $2,787.90 (truncated from $2,787.93)
While this calculation yields the Gross Monthly SSDI Calculation, several other factors may impact this determination. For instance, there will be a deduction is the beneficiary is disabled before the Full Retirement Age (FRA) to the Gross Monthly SSDI Calculation. If the beneficiary has dependents, the Maximum Family Benefit (MFB) may trigger. According to the SSA, the MFB is “is the maximum monthly amount that can be paid on a worker’s earnings record.” This amount may not exceed:
150 percent of the first $1,144 of the worker’s PIA, plus
272 percent of the worker’s PIA over $1,144 through $1,651, plus
134 percent of the worker’s PIA over $1,651 through $2,154, plus
175 percent of the worker’s PIA over $2,154.
In addition to the fourth step of adjusting for these extraneous factors, it also important to consider the broader implications of claiming SSDI, including its impact on the beneficiary’s federal taxes, and the ability of the beneficiary to claim Medicare or Medicaid coverage. Moreover, SSDI benefits may become modified if the beneficiary returns to work, leaves the United States, has a change in marital status, has additional dependents, is convicted of a crime, or has a material change in income.
While the SSDI calculation may appear to be complex on its face, it may be analyzed as several step-by-step formulas. While the SSA does provide online statements and a benefits calculator, knowing the nuances of the formula, such as what constitutes the indexed income, AIME, and PIA, can empower you, and your attorney at Lawrence & Associates to make an informed and personally tailored decision about your SSDI benefits.
Lawrence & Associates has offices in West Chester, Ohio and Fort Mitchell, Kentucky. We’re Working Hard for the Working Class, and we want to help you!
In the Cincinnati Hearing Office, Does Getting VA Disability Guarantee Success with Social Security Disability?
The short answer is no. The common misperception among many, is that being granted VA Disability automatically renders you eligible for Social Security Disability. This misconception likely has its origins in the fact that in how the two disability processes were related in the past. In the past, attainment of full disability from the Veterans Administration weighed heavily in the favor of the applicant who applied for Social Security Disability. However, this is no longer the case, and many decisions from the Cincinnati hearing office have confirmed that no weight will be given to the VA Disability decision.
Social Security and Veterans disability are both forms of government based disability payout programs. However they are operated by two separate and independent governmental departments. Each department has established its own criteria for determining who is eligible for disability payments, what qualifies as a disability, and how much each recipient may receive.
To understand why veteran benefits no longer have such a meaningful effect of the outcome of your Social Security Disability, it is important to explain a short background about each agency and an explanation about how each individual agency determines the disability of the applicant.
While many different iterations of Veterans Benefits programs have existed since the time of the Civil War. The Veterans Bureau, the precursor to the Veterans Affairs Administration, was established by an act of Congress in 1919. While Social Security Disability Insurance, or SSDI, came into law in 1959. SSDI is available to all workers because it is funded by a payroll tax. This program, which is federally insured, is designed to provide income supplements for people who have been prevented from working due to a physical impairment.
What Is Veterans Administration disability?
VA disability is a monthly tax-free benefit paid to veterans who are at least 10% disabled due to injuries or illness incurred during active duty service. Active duty service includes active duty training. These injuries can be either physical such as a knee or back injury, or psychological such as Post Traumatic Stress Disorder. The VA measures disability on a percentage system and it is recorded in increments of 10% up to 100%. Those who have a compensation rate of P&T are considered 100% disabled.
P & T means permanently and totally “disabled”, which essentially means that the VA has considered the injury to be reasonably certain to continue throughout the life of the disabled veteran.
38 U.S.C.A. § 3501 (West)
How Do Cincinnati and Northern Kentucky People Get Social Security Disability?
As opposed to Veterans Disability, the majority of Americans who have worked for the past ten years – whether or not they are or have been military veterans – will qualify for Social Security Disability Insurance.
The official name of Social Security Disability is called Social Security Disability Insurance, or SSDI. You are eligible for disability benefits from Social Security only if you have been working for at least five of the last ten years. Unlike VA disability, SSDI is primarily concerned with “work credits,” i.e. how long you paid out into the system. The amount that you receive is calculated based upon your earnings history in your civilian occupation, as well as your military occupation if applicable.
The standard for receiving disability under the Social Security administration is:
The applicant is unable to do substantial work due to one or more medical condition(s);
The applicant’s medical condition is expected to last more than a year.
Social Security Disability is a monthly cash benefit which is granted to federal employees that have a disability that meets the Social Security Administrations definition of disability. There are 14 different general categories of disabilities that fall under the Social Security administrations definition of disability. These disabilities range from muscular skeletal disorder to auto immune disorders. The Social Security Administration calculates your monthly benefit payments by reviewing your previous income in your civilian and military jobs, as well as the date that your served. The maximum SSDI payment is $2639 per month in 2016.
In order to qualify for Social Security disability, you must have be working with a severe disability that lasts for more than a year, or a disability that can lead to death, or a disability that prevents you from working. If the recipient goes back the work the benefits will be terminated.
What Are the Differences in Social Security and Veterans Administration Disability Benefit Calculations?
Veterans Affairs calculates the applicants benefit payments based on the severity of the applicants’ disability. SSDI follows no such scheme. Another difference is that VA grants disabilities based on a percentage ratings system. Veterans who are partially disabled may receive VA benefits in proportion to their disability percentage rating. SSDI, on the other hand, will only grant an applicant benefits if they are fully disabled and unable to work as classified by either:
The VA, in the that the applicant is a veteran; or
By a professional from an SSDI review board in the case that the applicant is a civilian who is not a veteran.
How the Cincinnati Hearing Office Changes Priority Status
Even though receiving VA disability has no bearing on the outcome of your Social Security disability claim, the good news for Veterans is that as of March 17, 2017, being granted 100% P&T disability by the Veterans affairs Administration qualifies you to have your application for disability expedited by the Social Security Administration.
If you are 100% P&T then your application is considered high priority by the Social Security administration, and the application will be expedited.
Some veterans must wait as long as 125 days in order to receive a response from the VA to determine whether they are eligible to received disability. In addition to the long wait times, navigating the Veterans Affairs Disability process may prove to be a long and tedious process for many. Thus, is beneficial to seek the assistance of an experienced attorney when handling such cases. The waiting period for a Social Security Disability claim is even longer, and thus it makes sense to get an experienced attorney for these claims as well.
Posted on Wednesday, November 29th, 2017 at 1:02 pm
By now, everyone is familiar with the tragic accident that took the lives of Rodney Pollitt, Samantha Malohn, and their three children. Because this firm represented Mr. Pollitt and several members of Ms. Malohn’s family in the past, the news hit us especially hard. When lawyers are at their best, they seek justice. In one way, justice is already coming for the man that caused this tragedy. Kenton County Commonwealth Attorney Rob Sanders will charge the other driver with five counts of murder for his role in the collision. That is criminal justice, but Lawrence & Associates is in the business of civil justice.
The civil justice system is the process of suing for money. That can be a lawsuit over injuries or deaths, such as what happened to the Pollitt family, or business suing each other over contracts, or many other things. There are a few forms of civil justice that might apply to the tragic deaths of the Pollitt family. First and most obvious, the driver of the other vehicle probably had automobile insurance that would cover the accident, although that might be as small as $25,000.00, the state minimum limit. Second, the Pollitt family’s car insurance should provide coverage, in the form of Uninsured Motorist Coverage if the other driver didn’t have insurance, or Underinsured Motorist Coverage if the other driver just didn’t have enough insurance. Third, and less obvious, a qualified law firm would do a complete background check of the other driver to find out whether he had any other insurance coverage that would cover the collision. For example, many people with high paying jobs or lots of assets will get an “Umbrella” policy that will provide another million dollars of coverage (or more) in the event of tragic losses. Uninsured, underinsured, and umbrella policies are where many people make mistakes when they try to handle their own insurance claims. If the family is too quick to sign off on the first $25,000.00 in coverage, they may accidentally waive their right to any additional insurance coverage.
In addition to the insurance for the at-fault driver and the deceased family, a good law firm needs to look into a Dram Shop claim against the golf course where the at-fault driver was allegedly drinking before the collision. A dram shop claim arises whenever a bar or similar business sells alcohol to a visibly intoxicated person, or to a minor. At this time, news reports have not covered this possibility, and so we don’t know whether the golf course might be liable under the dram shop laws. But given the scope of this tragedy, the possibility should be investigated.
Finally, an accident investigator should pull the black box from the at-fault driver’s car and inspect all the major mechanical systems. Almost all newer model cars now have a (black box [https://www.merriam-webster.com/dictionary/black%20box]), which records all the driving data up to the point of a collision. It will tell speed, whether the brakes were hit, how the steering wheel was turned, etc. There is always an outside chance that the at-fault driver’s car had some malfunction that prevented him from steering or braking. If so, that doesn’t necessarily absolve the at-fault driver from liability, but it could lead to additional liability for the car manufacturer, or anyone that had recently worked on the mechanical system that failed.
Both criminal and civil justice are important, and Lawrence & Associates hopes the surviving members of the Pollitt family get full justice through the American Courts of Law.
A disabling injury or medical condition can strike anyone at any time. While rehabilitation and regaining one’s health is limited by the realities of modern medical science, maintaining economic security during these trying times is possible. Depending upon one’s personal circumstances, eligibility under a state’s workers’ compensation program or the federal government’s Social Security Disability Insurance program may provide the financial security blanket needed to guarantee one’s solvency, allowing one to remain focused on what matters most: healing.
Requirements for Eligibility Under Workers’ Comp Programs
Since workers’ compensation programs are administered by individual states, the specific requirements that must be fulfilled in order to be eligible for benefits of the program vary. As a general proposition, any injury or illness for which one seeks workers’ compensation must have been sustained on the job, or must have arisen out of work-related activities.
Additionally, an individual attempting to obtain workers’ compensation benefits must be classified as an “employee.” Some states also distinguish eligibility based upon the type of work that an employee performs. Finally, one’s employer must carry workers’ compensation insurance, or, alternatively, be required to do so by law.
As alluded to earlier, the above requirements are not universal, and may differ from state by state. Generally speaking, however, these requirements are common throughout the United States. It is important to note that there is a laundry list of exceptions to the general rules that may render an otherwise eligible “employee” ineligible. In order to get a better sense of individual states’ quirks, a brief review of some of the eligibility requirements of Kentucky and Ohio follow.
According to the National Federation of Independent Business (“NFIB”), in Kentucky, all employers that (employ one or more employees are required to carry workers’ compensation insurance. That said, sole proprietors, “qualified” partners of a partnership, and “qualified” members of a limited liability companies are excluded from workers’ compensation coverage. Officers of corporations, on the other hand, are considered “employees” by statute, and, thus, workers’ compensation insurance is required for such individuals.
Like Kentucky, Ohio requires all employers with one or more employees to carry workers’ compensation insurance coverage, according to the NFIB. Under Ohio workers’ compensation law, workers’ compensation coverage for sole proprietors, partners of a partnership, individuals that have incorporated themselves as a corporation, and others, is optional. In addition, and unlike Kentucky, the only option for most employers to obtain workers’ compensation coverage in Ohio is via Ohio state’s own program (as opposed to obtaining or maintaining coverage through a private or commercial insurer).
Clearly, the state-administered workers’ compensation programs are unique and can differ greatly between states. While the eligibility requirements and laws governing workers’ compensation can vary wildly throughout the nation, the federally administered Social Security Disability Insurance program applies universally. A brief overview of the eligibility requirements of the Social Security Disability Program follows.
Requirements for Eligibility Under the Social Security Disability Program
So long as the basic requirements are met, employees are eligible for workers’ compensation from their very first day of employment. While not a requirement per se, it is nevertheless important to note that, unlike workers’ compensation programs, Social Security Disability benefits are only available to those that have worked for a longer period of time. As a general rule, in order to qualify for Social Security Disability, one must have accumulated forty “credits,” twenty of which were earned in the past ten years. The number of credits required is determined by the claimant’s age at the time of disability. A younger individual will require less work credits than an older individual. One “credit,” according to the Social Security Administration, is earned for every $1,300 of wages an employee earns. An employee may earn only four credits per year; thus, once an individual earns $5,200 for the year, that individual has earned their maximum four credits for that year.
In addition to earning the requisite number of credits, a person must meet the Social Security Administration’s definition of “disabled” in order to qualify for disability benefits. “Disability” means that a person “cannot do work that [they] did before,” one’s “disability has lasted or is expected to last for at least a year or to result in death,” and the Social Security Administration determines that the one seeking benefits “cannot adjust to other work because of [their] medical condition(s).” If these three definitional elements are met by an applicant, they will be considered disabled, and will thus have satisfied one of the requirements to be eligible for disability benefits.
In addition to the above requirements, one must have “worked in jobs covered by social security.” The individual’s affliction must result in “long-term impairment” that “preclude[s] any gainful work.” Finally, the affliction must be so severe that the social security disability applicant is unable to perform their previous work; further, the applicant must be unable to engage in “any other type of substantial gainful work.”
While the above list of requirements is by no means exhaustive, it is illustrative of what an applicant would be required to do and show in order to qualify for Social Security Disability benefits. Clearly, the eligibility criteria for workers’ compensation programs differ substantially from disability benefits. Nonetheless, under some circumstances, one may qualify for both workers’ compensation benefits and Social Security Disability benefits. When such a situation arises, the issue of offsetting becomes a concern.
The Offsetting Effect of Workers’ Compensation on Social Security Disability Insurance
The Social Security Disability Insurance program requires that, when an individual is eligible for both workers’ compensation benefits and disability benefits, said individual’s disability benefits be reduced. This reduction must result in the combined benefits from the two separate programs being less than or equal to eighty percent of the individual’s “average current earnings.” “Average current earnings,” according to the Social Security Administration’s website, is defined as “the highest of the average monthly wage on which the unindexed disability primary insurance amount is based, the average monthly earnings from covered employment and self-employment during the highest five consecutive years after 1950, or the average monthly earnings in the calendar year of highest earnings from covered employment during the five years ending with the year in which disability began.”
The receipt of workers’ compensation benefits may have an offsetting effect on disability benefits under other circumstances, as well. For example, when a particular state’s workers’ compensation program allows for the possibility of a lump-sum payment being made to the recipient, thereby discharging the obligations of the insurer and/or employer, but simultaneously permits the payment of benefits in a more structured, periodic nature, said settlement is affected by the offset. More specifically, the lump-sum payment is “prorated to reflect the monthly rate that would have been paid had the lump-sum award not been made.”
There are a multitude of exclusions that apply to the offsetting rules. For instance, certain sums expended for medical purposes “in connection with” workers’ compensation are subject to exclusion in figuring the amount of the offset. Likewise, legal fees incurred by an individual “in connection with” workers’ compensation may be subject to exclusion. Finally, many other government benefits may be excluded from the offset, as well, including VA benefits and needs-based benefits, to mention a few.
What Should You Do If You Are Eligible for Workers’ Compensation and Social Security Disability?
When faced with a disabling medical condition or health-related emergency, many may find themselves in dire straits, financially speaking. Luckily, certain government programs, such as the state-administered workers’ compensation programs and the federally administered Social Security Disability Insurance program, exist and may be able to help those in need. While the eligibility requirements may change from jurisdiction to jurisdiction depending upon the program, and can oftentimes be strict, those that qualify may receive the financial security they need to get through some of the most difficult times in their lives.
If you have any further questions, call one of the attorneys at Lawrence & Associates for a free consultation. Lawrence & Associates has handled thousands of claims for injured and disabled men, women, and children. We’re Working Hard for the Working Class, and we want to help you!
By Karley G. Michels
It’s that time of year again! All of the little ghosts, goblins (or ninja turtles) of the neighborhood will be at your doorstep asking for a sweet treat tonight. According to The Globe and Mail, most parents consider letting their kids trick-or-treat by themselves on Halloween night around the ages of 9 and 10. Allowing them to take off by themselves (in the dark) can generate a great deal of worry for a parent on Halloween night. And let’s face it, the adults want to have fun too, so here are 10 tricks (pun intended) that can help you worry less about your little creatures on Halloween night.
Have them wear (or carry) something reflective – Especially if they insist on wearing an all-black costume. Get creative: use reflective tape from the hardware store to stick across their candy bags or buckets. Wearing or carrying something reflective is a great way to keep your little one in sight of neighborhood-intruding vehicles. Bright costumes are always a good idea.
Give them glow sticks! – Who doesn’t like a good glow stick? They’re cheap and keep your child visible in the dark.
Have your child carry a flashlight – Put it to use after it gets dark! This can be great for locating objects on the ground that can cause them to trip and fall.
Eat no treats until an adult checks them – Check all of your child’s candy before allowing them to eat it. Throw out all candy with torn or open packages. If it looks suspicious, don’t eat it!
Don’t eat homemade treats – Unless you absolutely know and trust the person handing them out, don’t chance it!
Check ingredients on candy wrappers – If your child has a dye or nut allergy, it is important to check the ingredients before they eat the candy.
Masks block vision! – Consider non-toxic face paint in place of a mask.
Walk on sidewalks – Keep your kids safe by teaching them to walk on the sidewalk as far away from the street as possible and to always look both ways before crossing the street.
Keep your little ones close by – If you think your child should not be able to walk the neighborhood by themselves, keep them close.
Use the Buddy System – If your kids are old enough to walk without an adult, make sure they have a friend to walk with. Tell them to watch out for each other and stay safe!
Halloween night should be a fun and exciting night for kids of all ages. This doesn’t mean that you can’t take every precautious measure there is in the book to make sure your child is safe during the event. Happy Halloween from Lawrence & Associates!
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