High Stakes

Most people would rather not think about what would happen if they were to die.  We all suppose that we are somehow immortal. This is true in good times as well as unjust times. 

But, good times or unjust times, we all owe it to our family and those who care for us to ensure that when the inevitable happens, that we have taken at least the basic steps to ensure a smooth transition to the next generation.  

Even if you have little or no property, such planning is always important. In Iowa, as well as most states, there are at least four items that you should have a lawyer draft for you.  They are: (1) a will; (2) a living will and durable power of attorney for health care decisions; (3) a general power of attorney; and (4) a final disposition declaration. Depending on the nature of your estate, you may also want to consider utilizing a revocable living trust.  Although samples of these documents can be found on the internet, you should never undertake to put these into effect without at least consulting an attorney.  The stakes are simply too high to try to save a few dollars at the out set.  During my career I have seen too many cases where individuals tried to save money at the beginning only to have their family pay much more money at the end.

© Rod Powell

Keeping Shelter

Hard economic times usually means that people have to struggle to keep a roof above their heads.  Often times families must move in together as it becomes harder to pay the rent or homes go into foreclosure.  

Every time I go the the Warren County, Iowa, courthouse in Indianola, Iowa, I am struck by the increasing numbers of sheriff's sales posted on the wall.  A few years ago, the sheriff's sale notices only occupied a small portion of one large bulletin board.  Now the notices occupy over one full bulletin board.  Each of those postings represents a family that is forced to seek shelter elsewhere.  What began as inflated mortgages on overpriced homes now threatens to spiral to suck in middle class homeowners who are seeing a loss of earning power, or even the loss of their jobs.  The financial industry is realling under the pressure of an ever increasing default rate.

While the laws differ in each state, there are clear approaches that people facing foreclosure should explore:

•  Gather your mortgage documents and read them.  They are usually lengthy and often confusing to nonlawyers.  Often the loan officers who presented them to you did not understand them themselves.  Nevertheless, read them and list questions to ask a lawyer later.

•  The Iowa foreclosure statute provides that you can request a delay of sale of up to six months after an judicial decree of foreclosure is entered. You may want to request that this notice be entered on your behalf.  You never know what may come up.  One of my clients did not see any hope, but had me do this for them anyway.  Later, within that period, one of the spouses learned that an inheritance would be forthcoming and I was able to negotiate an arrangement whereby they could remain in their home and resume payments.

•  Occasionally there have been misrepresentations by the mortgage lender.  Under these circumstances it may be possible to make claims against the lender and prevent foreclosure.

Even if you are strapped for cash, it may be a good idea to at least seek the advice of an attorney who is familiar with representing homeowners in foreclosure situations.  While not having enough money is at the root of the problem, at least one consultation with the attorney may be a good idea.  Sometimes the attorney has a cut rate initial consultation fee policy.  For instance, our office only charges $95 for up to a 45 minute consultation.  During that some, if you have come properly prepared, we can usually determine a possible route for you to follow.  There are many other lawyers who have similar policies.

© Rod Powell

Domestic Discord

Hard, unjust economic times always seem to create difficulties for marriages and other domestic arrangements. The old saying that it costs more for two people to live apart than together is even more true in periods of economic downturn.  Nevertheless, it seems that unjust times have a clear effect on the divorce rate.  Fights between spouses are more common and, given the temperament and background of the parties, domestic violence can be more likely to happen.

Most states now have statutes to separate and protect spouses when one of them commits an act of domestic violence.  States, such as Iowa, have also moved to require classes for partners with minor children relating to how to be separated, but keep from putting the children in the middle of the parents' domestic disputes.

If spouses decide to go through with a divorce, it is important that each party have their own attorney, even if one only consults with an attorney and the other retains an attorney to actually do the court filings.  Critical decisions are made in a divorce action which can have an effect for many years to come.  These consist of the following:

•  Spousal support (alimony);

•  Child support;

•  Allocation of ownership of the parties' real estate;

•  Allocation of retirement accounts;

•  Allocation of bank accounts;

•  Directives relating to life and health insurance;

•  Disposition of other items of personal property; and

•  Visitation and custody of children.

© Rod Powell

Small Business, New Business, Hard Times

Many Americans have the dream of starting and running their own business. Unjust times, however, can spell the end of many of those dreams while being the inspiration for new beginnings. Everyone who starts a new business must be careful not only to ensure that it starts on a sound economic footing, but to also ensure that it has a firm legal basis. Careful attention should be paid to how the business is structured. For some, a traditional corporation may be the best approach while for others, a limited liability company may be the answer. There may be situations where a partnership or sole proprietorship may be the best answer. 

The decision of which structure should be utilized is best made in consultation with the new business owner's lawyer and financial advisor. While new businesses are often strapped for capital, new businesses should be wary of skimping on financial and legal assistance.

There are many instances in which the new small business should seek legal advice.  These include not only business formation issues, but also employer-employee relations and business contracts.  Unjust times call for vigilance and careful planning.  That should only be done with the best assistance available. 

© Rod Powell 2009

Seeking Justice in Unjust Times

As our nation enters and continues in these difficult times, most Americans will increase their contact with the legal system.  When I was an attorney for legal aid in St. Louis in the 1970's and 1980's, I learned that people who have come upon hard economic times are seven times more likely to come into contact with the courts than those who are more affluent.  Similarly, in these times in the early 21st century, not only citizens who have lost income, but those who are concerned about their futures must ensure that their legal affairs are in order so that if they do experience an economic reversal, they will not be in dire legal straits.  My experience as an attorney in private practice for over twenty years has shown me that a few dollars spent on early legal advice and planning can save thousands of dollars and many headaches later.  That will be the purpose of these postings.

© Rod Powell 2009