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Benefits Of Setting Up A Trust For People in Albany

Albany family trust lawyer

Protect your wealth – image 123rf.com

Some of the most common reasons for setting up a trust include tax minimisation, protecting family legacies and asset protection. The real estate boom and the rejuvenated stock market has provided a lot of wealth for people and a good way to save the wealth is by setting up a trust. Due to the benefits offered by the trust funds, these are becoming increasingly common among the average Kiwi family.

These trust funds offer one of the best ways to preserve family wealth. A trust is managed by the Trustees who are responsible for ensuring that the income and assets of the Trust are passed to the beneficiaries of the trust. The beneficiaries may include the individuals who have established a trust as well as other people specified by the trustees. Even though a trust has a beneficiary name, the property or money in the trust is usually handled by the trustee with experience in handling money. For this reason, an accountant or a trust lawyer is often chosen as a Trustee. This arrangement ensures that the beneficiary does not act recklessly with the money in the trust fund. Further, having a qualified professional as a Trustee shows the IRD that the Trust is acting correctly within the tax laws of New Zealand.

Types of trust

There are various types of trusts that can be set up. Some of the common types of trusts are revocable trust, irrevocable trust, family trust, fixed or discretionary, trading trust, charitable trust, and numerous others.

All of these set ups have their own advantages and disadvantages. For instance, some of the trusts are beneficial for saving on estate taxes when one of the spouse dies. Similarly, a revocable trust helps in transferring the assets to the beneficiaries without probate process.

If you have decided to set up a trust for a child, it is important to set up the trust in a manner that clearly states how and when the child can receive the income or distribution from the trust revenues. In one type of setup, the money from the trust is given to the beneficiary in the form of an annuity. In another form of trust, a beneficiary gets the access to all of the money in the trust fund, when he or she turns 21. There is no right or wrong way, it simply depends on how you want your child to receive the money.

Asset protection

A trust can protect assets from creditors. However, you must make sure that the trust is set-up correctly so that creditors are not unfairly deprived of their rightful payment.

Also, if there are children from a spouse’s previous marriage, you can ensure that your blood children are the beneficiaries of your estate by establishing a Family Trust.

Be clear about your objectives with a family trust

It is important to keep in mind that a trust fund is different than other financial instruments. For instance, it is very difficult to get back the money put in a trust fund. So, you need to ensure that you have thought about all of the pros and cons of setting up a trust fund for the children, before deciding on a type.

Further, you are no longer the owner of the assets so you cannot buy and sell on your own whim. You must have the agreement properly documented by the other Trustees.

Benefits of trusts

There are many other benefits of setting up a trust. Some of these benefits are:

These offer huge reduction in estate and other taxes. If you do not set up a trust, your estate may end up paying a lot of money to the government in form of taxes.

Albany trust lawyer

Albany trust lawyer

If you want to keep your assets away from the prying eyes of other people, trust funds offer you the best way to keep your wealth details private.

The trust also helps you in avoiding the delays associated with the probate process. It is especially useful in case you own some real estate in other states.

You can also set up a trust fund to support you in case you are unable to work.

If you have some family members who are reckless with their money and are unable to manage their finances, money in a trust fund with the oversight of an experienced trustee can help them.

Setting up a trust also helps in avoiding any operational disruption when there is a business succession.

Albany Lawyer For Setting-up a Trust Fund

As mentioned above, there are a lot of choices when it comes to setting up trust funds. Choosing among these options is not easy. Therefore, experts recommend hiring the services of a legal professional who has experience in setting up trust funds and is aware of the various pros and cons of each choice. One firm of Albany trust lawyers is McVeagh Fleming. They have a team of lawyers who specialise in this type of work so if you are looking for a trust lawyer in Albany. click here for more details.

 

www.mcveaghfleming.co.nz

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Finding the Best Lawyer on the North Shore

Known to be a high growth area of Auckland, the North Shore proves that while it is considered as such it can still has to deal with crimes, uphold the law and has its fair share of legal disputes. As a result the law firms in and around Albany are kept busy with many different types of legal issue covering several disciplines of law. If you need a lawyer for any legal services you may want to find the best lawyer on North Shore.

The span of the issues that the legal sector of the North Shore tackles extends to, commercial issues, divorce, employment, taxation, bankruptcy, and wills or estate planning.

Divorce lawyer Albany

Divorce lawyer Albany

Just as from other areas and cities, some law firms in Albany and the North Shore in general sometimes only offer a limited range of areas of expertise such as property or family law for example. But there are also law firms that have lawyers who practice in many different fields. These firms can help you with various legal matters that you might have. For example, you may have a business, a family and own property. In this situation you can draw on the knowledge of different partners or solicitors within the same firm.

Here are some of the main legal services that are offered on the North Shore:

• Commercial law – with the explosion in the number of businesses the demand for commercial and company law services has risen dramatically on the North Shore. These can range from buying or selling a business, drawing up trading contracts or dealing with disputes between two companies. The breadth of issues is enormous and grows by the month.

• Divorce – while the area enjoys great business growth this can come at a cost to marriages and long-term relationships. As a result separation and divorce and quite common on the North Shore. These are issues become more of an issue if a couple owns a business. The arguments about splitting the relationship property can be long and expensive. However, with good legal advice both parties can be protected and be able to exercise their legal rights. A couple is required by law to split matrimonial property equally unless a trust or pre-nuptial agreement might be in place.

Albany lawyer for wills

Albany lawyer for wills

• Wills and estate planning – with the growth in population, the ageing of those people both of which are allied to the extent of the business activity, the need for wills and estate planning has never been greater. Unless a will has been signed, the property of the deceased can become intestate meaning in simple terms that it passes to the State. However, even with a will, there are often disputes after the death of the person. So it is important that you understand the implications of what you are saying in your will to avoid any unpleasant and expensive recriminations after your death.

If you have any of these common issues or many others, you might want to seek help from a North Shore lawyer for their services. You can find them by searching online. You can also ask among your friends, family members or work colleagues for any personal references of lawyers on the North Shore they have used. For example, if your friend had a case which is same as what you are dealing now, you can simply ask the name of the lawyer who represented him or her and then try contacting that lawyer.

As you can see, it is not difficult to find a good lawyer on North Shore. The only thing that you needed is a little of patience and small amount of resources to find the right lawyer who can represent you best.
McVeagh Fleming

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Divorce And Separation Increase During The Holidays

 

Going through a divorce is a very difficult time for everyone involved, especially if there are children. It is the ending of your relationship, perhaps one that has been on the rocks for several months, or even several years, and people have finally had enough. Their goal of being happy may result in them finding a way to rid themselves of the person that they believe is causing them stress in their life. Although it is a difficult time, it is a way to begin anew, and for some reason this tends to happen during the holidays. This article will address why separations and divorce tend to occur around the holidays more than any other time in the world today and how a divorce lawyer can help.

 

What Is A Divorce?

Relationship property

Image artur84

Essentially, a divorce is a time where two people decide that they have had enough of each other. In most cases, one person has decided to end everything, sometimes leaving the other person devastated. It could be for a number of different reasons such as someone has cheated on the other person, or they simply feel distant to such a degree that they wonder why they are even there. However, one of the most common reasons for a divorce is that someone has lost their job, finances are strained, and the person that has lost their job is going to be divorced by the other person.

 

How People Get A Divorce

People in difficult relationship situations might wonder “How to get a divorce?” The answer is that there are two main ways to get a divorce in New Zealand. First way is easiest, but the least common, which is where the two parties agree on the terms of the separation including the fair and reasonable allocation of the assets, and then take their papers to the two sets of divorce lawyers. The law firms simply draw up the formal documentation and have them signed by the two parties.

 

Unfortunately, this is not always what occurs because there are usually hard feelings and acrimony between the husband and wife. The situation is made worse when it comes to division of the property, money, assets, and especially deciding on visitation time with children. Some people will also try to argue about payments for child-support but in New Zealand that is not a negotiable issue since there are statutory payments which are dependent upon the incomes of the two parents. The level of child support that each party has to make can be worked out using a tool on the IRD website. The money is then deducted by the IRD from the wage or salary at source along with income tax so there is no argument about non-payment. In this case, they will probably go to a mediator which will act as a third party that can help them resolve all of these problems.

 

In previous times, people would argue over their “fair share” of assets. However these days in NZ this has again been taken care of by legislation. All matrimonial property that has not been included in a pre-nuptial agreement is to be shared equally. This does not mean that each asset has to be split down the middle but that the total estate is split equally. So one side may get shares and cash while the other gets the home. The problems can arise when people have different views on the value of each asset. In this situation the best thing, and the lawyers on both sides will suggest this is to get market valuations. For a house this is relatively easy and will cost a few hundred dollars. If there is a business involved that can get more complicated but accountants should be able to reach some form of agreement.

Once both parties and the divorce lawyers have agreed the allocation of assets, then they will draw up a Section 21 Relationship Custody Agreement and the Separation Agreement. Both sides sign the documents and then the transfer of assets can take place.

 

Why Does This Happen During The Holidays?

This tends to happen during the holidays because this is usually when people either need the most money or because they are spending a lot more time together in a cramped environment. If they can’t buy presents for themselves, or their children, and the other person is out of work, they will find the financial stress unbearable. They may already be behind on their mortgage, making their electricity payment, or they cannot pay their car payment on time. When they have their children staring at them, wondering what they are going to get for Christmas, this is when everything goes south. All of these pressures build up plus the physical and temporal proximity to each other resulting in an outpouring of emotion and the decision to split forever.

 

Divorce lawyer Albany

Image stockimages

If you are in a similar situation or know someone who is, then you should talk to a divorce lawyer to get legal advice. While the laws in New Zealand are fair and explicit, it is often the case that one party will try to force the other into an agreement that the law says they need to comply with. Your lawyer will guide and advise you on your rights. They can also negotiate on your behalf with the other side’s legal representatives to bring about a fair and equitable situation.

 

If you are using a law firm such as McVeagh Fleming in Albany, not only are they North Shore divorce lawyers, but they also have a property department which can take care of the transfer of the house and mortgage to whichever party will be taking it over.

 

For more information on how a divorce lawyer can help, go here more…..

 

http://www.mcveaghfleming.co.nz/

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Commercial Real Estate Lawyer Helping People To Buy Or Sell Property In Albany

Commercial real estate generally performs one of two functions. It is either bought to be occupied by the operator of the business in residence or it is purchased as an investment. In either case the buyer needs to be clear about exactly what they are buying for their money, the process they need to follow to complete the deal and most importantly, the means by which they will fund the purchase of the property. As with any form of investment, commercial real estate has both successes as well as failures. The points in the article below will show people how an Albany commercial real estate lawyer can help people who want to buy or sell property on the North Shore.

Investing in Albany warehouse - image photoraidz

Investing in Albany warehouse – image photoraidz

The most common way to find pieces of property, whether commercial or residential, is to talk to a commercial real estate agent They will know the different types of property in their area. They should also have a good understanding of the commercial value of a building be it a warehouse, office, retail outlet or a production plant. Their knowledge should include not just the probable price range but they will also be able to talk about the rental income a particular premise could generate. They should also be able to talk with confidence about the ease of letting or sub-letting that building. In short, they out to be able to have an informed conversation with any prospective buyer of the real estate in question so that the buyer can go away and work out the viability of it for their purpose, whether occupying it or leasing it.

It is important to remember that, however helpful the real estate agent might be, their loyalty lies with the seller of the property. The agent is also paid by means of commission which is a percentage of the final selling price. Therefore the agent is motivated to get the highest price possible for both the client and their own income. So while the agent may be very accommodating with your requests and questions, their intention is to sell to the highest bidder or the person who can close the deal fastest.  So do not be fooled into thinking that they are on your side in the transaction.

How do you assess if a commercial property is a good investment?

This is a business transaction and as with all businesses, the best measure is the net profit that it can generate. The Net Operating Income gives the net income after subtracting the operating expenses from the rental income of a property. Remember to take GST into account. People often forget that they have to pay GST on the rental income and can have a nasty surprise when they have a sizeable tax bill to pay suddenly.

The future potential value of commercial property is of course another way that people look at valuing a building. This means they assume the increasing value of that premises but they key word here is “potential”. It is up to the buyer to make that assumption as no agent or property lawyer will give a binding opinion on any future value. An agent might suggest reasons that any building will increase in capital value but again, bear in mind that they are trying to get you to buy that building. Further that value can only be realised when the real estate is sold. So in the short-term, the net income is the best measure of the value of any investment property.

Often people wanting to invest in or buy commercial property in Albany know their intended financial outcome but need help in locating the right property to accomplish this. This is why a real estate agent adds value to a transaction since they should have plenty of local knowledge. It is possible to engage the agent on your behalf and pay them a finder’s fee. In this situation they would give you a tour of the most likely properties available in their locality. They would also be able to make contact with the owner of property to initiate a possible deal.

Most contracts for real estate in the Albany area, in fact for all of Auckland, use a standard agreement. This is handy since the main parts of the contract are well understood by any commercial real estate lawyer in Albany. However, your lawyer can recommend adding additional clauses to meet certain conditions to benefit you. This can include the payment method, time span and any remedial maintenance work that you might want carried out before you complete the deal.

Another advantage of using a broker is that you, the buyer, does not have to talk directly with the seller. This can be particularly useful if you want to negotiate hard on the price or additional conditions. The agent will want the deal to be completed so they get paid and so can explain to the seller why your demands are reasonable. The agent has plenty of experience in this type of negotiation so use their skill.

Commercial real estate lawyer Albany

Commercial real estate lawyer Albany

The Albany area is very active and attractive in the commercial real estate market. So you need to act quickly but at the same time you must also carry out your due diligence on any potential piece of real estate you might be considering buying. Once you have run through the numbers, or better still, have your accountant carry out some profit and cash-flow forecasts, then you need to talk to your lawyer. They will have to read through the contract to make sure there are no additional clauses which disadvantage you. They will also need to understand the leases that might be in operation as these will have to be transferred to your controlling entity.

There is a lot of work for a commercial lawyer in any transaction and often they need to act with speed so you can close the deal before another buyer. If you need an Albany commercial real estate lawyer then one of the biggest and most experienced is McVeagh Fleming. They have a team of specialist commercial property lawyers and know the Albany area thoroughly. They will also be able to give advice on how your deal compares to other similar ones in the locality.

http://www.mcveaghfleming.co.nz

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Property Lawyer’s Role in Buying A House in Albany

When a person decides to buy a house, it is important to hire a lawyer to clearly represent their interests. It is also a good idea to look for a lawyer that knows the area where you are buying your home. They may know of some impending actions or activities which may positively or adversely affect your interest. This is why, if you are on the North Shore of Auckland, it is recommended to search in advance for an Albany property lawyer that is familiar with all the real-estate local laws and regulations.

 

lawyer for Albany property

Buying a house — image Simon Howden

Before getting into any details when planning on buying a house, the lawyer must inform his client about the legal procedures that have to be followed. One of the most important aspects when it comes to signing the purchasing contract is that a lawyer must read it in advance and give his opinion about the clauses stipulated in the contract. For the most part real estate transactions in the Auckland region use a standard contract from the Auckland Law Society. It is imperative that the details are correct because once it is signed, it becomes legal.

 

Once everything related to the legal aspect is cleared, the next thing to take care off is the financial part. It is unlikely that you have all the money to pay in advance, so the most common method is getting a mortgage loan from a bank or via mortgage broker. Once this is obtained, your lawyer will handle a train of legal documentation to ensure that everyone’s interest are correctly recorded and that the money is transferred to the seller’s lawyer at the appropriate time.

 

Having a lawyer is extremely useful as they also has to take care of other important documents such as title search, mortgage documents, the deed and many other forms of legal paperwork.

Attention to detail

 

Attention to details is the most important aspect, and a lawyer knows what to look for, whether we are talking about compliances, codes or any other documents related to the property purchase. Before signing any document, the lawyer must examine the deed, because even a misspelled name written in a signed and legal contract will end up costing a lot of money to have it changed.

 

Let’s take, for example, a couple that decided to sell their 10 acre lot, by dividing it into 2 parts. They wanted to sell the vacant part and refinance the second one, where their house was built. While they were preparing the sale, they discovered that the lender created a confusion between the legal descriptions of the 2 parts, thus becoming impossible to sell or refinance. This is a great demonstration of what a good lawyer would have solved in case his services were required.

 

A modern problem for house buyers

 

It is highly recommended that you carefully check in advance who were the previous owners and what was the purpose of the house to see if there were any drugs involved. A common problem that many people encounter is the fact that after they buy their dream home, they discover that it previously belonged to a person that distributed drugs or even had a methamphetamine lab. This article in the NZ Herald gives more details. This is a very serious issue as cleaning up a former meth lab can cost $50,000. So be sure that your lawyer looks into the history of ownership of the property. Although your real estate agent should tell you if they know this is the case, it would be better to do your own verification. Ask your lawyer to do this, as he has a lot of relations and even access to different databases.

 

There are laws that may oblige a new home owner to decontaminate the house before moving in, an action that will make him pay many thousands of dollars. In case a buyer hires a lawyer that does a few background checks, this situation may be solved before signing any contract, and the seller will pay for all these issues.

 

Summary

 

Reading and learning about these different stories, make us understand that we definitely need legal advice. There have been many cases in which the description of the house made the wife imagine herself inside the house, and the husband, adoring the gorgeous backyard that is perfect for parties and bbqs. Unfortunately, even a small mistake added to the description, and the lack of interest in doing a little background check for the neighbourhood or the house, may end up costing the new owners a significant amount of money.

 

Albany property lawyer

Albany property lawyer

Once a person decides to buy a house, there are countless issues that must be dealt with, many of them being legal aspects. In case a misspelling slips in a legal contract, in the future, it will become extremely costly to modify it. Without the help of an experienced property lawyer, you may end up signing something that has mistakes.

 

One of the biggest North Shore property lawyers is called McVeagh Fleming and Co operating out of Albany. They have a number of highly experienced real estate solicitors for commercial and residential property transactions. Be sure to contact them via their website for more information.

 

Without a doubt, buying a house is one of the most important purchases in a person’s life. This is why it is important to make sure that everything is perfect, and if this means that you need to hire an Albany property lawyer so you can rest assured that everything will go smoothly.

 

http://www.mcveaghfleming.co.nz

 

 

 

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How You Can Utilise North Shore Commercial Real Estate to Earn More Money

There are numerous benefits to looking at commercial real estate investment, as there are far fewer investors than in residential property investing. With that being said, to completely utilise this area of investment and the many benefits it may garner, you will need some great real estate knowledge beforehand. Luckily this article will show you a few of the many secrets when it comes to North Shore commercial real estate investment.

Video about Commercial Real Estate

One of the biggest mistakes that men and women make in commercial real estate is not taking the time necessary to get the detailed information they need. The information we are talking about includes such things as financial reports and professional forecasts about the future value of the area the property is located in. Lenders are very cautious these days, so it should be your utmost priority to prove to them that you are able to make the investment as profitable as possible. The better your case is researched and prepared, the more likely you are to gain a commercial mortgage.

Many people fall into the trap of believing that real estate is an ever green investment opportunity. This is certainly not true. You may have heard stories of men and women investing in commercial property and losing a large amount of money.

Investing in Commercial Real Estate Albany commercial property lawyerWhen a commercial building is rented out it can be a great source of income. However in difficult economic times when it is difficult to rent out buildings, the costs remain the same but the income can crash leaving you with a massive mortgage to service. Make sure you understand the risks when it comes to investing in real estate, and as said above, do the necessary research beforehand.

You will have to match the type of commercial property you are looking at with a suitable loan type from a bank. A great tip when it comes to loans is to take larger loans to bigger banks and to take smaller loans to smaller banks.

Make sure that during inspection of a commercial property that you take due note of the structure of the interior and the exterior. Choosing a property that has faulty structure is a bad call for investment. Do not think you can rectify this and make a big capital gain. Major renovations on big commercial buildings need deep pockets. Make sure such things as roofing, water heating and things of this category are all in good check. If you don’t do this, you will find yourself paying up the roof in repair costs.

Do further inspections before you consider going into purchase a commercial investment property. Look into things that are often neglected such as environmental records and the simply history of the property you are looking at. You can easily get these types of records upon request, and knowing such things can make sure investment choice much easier than expected. For example was there any storage of noxious chemicals? If so, then you may be faced with huge costs to clean the contamination from the area.

Your commercial property lawyer will do the necessary research before you agree to the purchase. If they find there are contamination issues you will need to get the current owner to organize the clean-up process. A big tip; do not negotiate t price reduction so you can carry out the work. You do not know how much it will cost in the end so have the current owner take care of the total bill before you sign on the dotted line.

A highly experienced commercial property law firm in Albany is McVeagh Fleming and Co. Give them a call or visit their website.

Once you have made the investment, and are ready to go out and lease the property, be very careful with who you rent the property to. Make sure you do a background check and make sure that the potential leaser has a steady job and will be able to pay off the lease accordingly. Failing to do so can make things very messy as you try and get people to pay for your rent.

In the end, you want a commercial property that will be able to withstand fluctuations in price over time. There will always be peaks and troughs when it comes to the value of your investment property. You can make sure you come out on top by choosing an investment property that doesn’t require extensive repairs throughout the year.

Ultimately, it is about getting the best commercial real estate investment you possibly can. Thankfully, all of the information stated in this article will give you a great chance of getting into North Shore commercial real estate investment and making lots of good money.

 

 

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Dismissing An Employee Lawfully in Albany, Auckland

If you are planning to dismiss an employee, it must be done lawfully and under specific conditions. In order for this dismissal to be lawful it must be substantively justified and it needs to be done in a procedurally fair way. Failure to do so can leave the employer exposed to legal action. Always seek qualified legal advice.

Employment lawyers Albany

You are sacked – image stockimages

There must be a valid reason for a dismissal. It must be done in a fair manner and it will be dependent upon the circumstances. Example: If the employer dismisses the employee without a warning it must fall within specific parameters that are fully detailed out and understood at the time of hire.

If the employer has given a warning or has dismissed an employee unlawfully, the employee can file a personal grievance claim to the Employment Relations Authority (a part of the NZ Dept of Labour). Employees can be given lost wages as well as distress damages as compensation upon a successful outcome of such a procedure for the employee.

How to defend an employer from a personal grievance that has been brought by an employee.

Employment Relations can give the necessary information and mediation services in order to help assist the employment problem. You can reach them at 0800 800 863. For a claim to be justified, the employer must have a valid reason for dismissal. This valid reason should always be in writing and copies kept in the employee file as well as in the employer file. These requirements will vary depending upon the specific circumstances. If the employee is dismissed without warning it may only be done under a specific set of parameters and guidelines.

A summary dismissal must be for serious misconduct and justified. An employee may be dismissed without warning as long as these parameters are followed. Here is a list of some of those parameters.

Theft

Act of Dishonesty

Fighting

Assault of another employee

Assault of employer

Breach of conduct

Disobeying a law

Disobeying instruction directly from the employer

Possession of illegal substances while at work

Even if the employee is dismissed for such reasons, they are still entitled to their outstanding wages. This includes holiday pay as entitled under their contract.

Poor Work Performance or Less Serious Misconduct

The grounds for this action are poor work performance or a less serious form of misconduct. Without previous warnings, the employer does not have the right to dismiss the employee. The typical procedure is to give an oral warning and then to give a written formal warning. After a final third written formal warning then the employee may be let go without further discussion should the employee again fall short of their duties within the company.

General Rules of Fair Procedures in Dismissing an Employee

Employers are required to take the following measures to make sure that the dismissal is fair. These apply no matter which type of dismissal is being made.

Carry out full investigation into the behaviour that is alleged of the employee including all details and witnesses.

Inform the employee of the nature of the allegations and when appropriate, of the possibility of dismissal due to the disciplinary procedure.

The employee should have the benefit of being heard.

Employees have the right to have a support person or employment lawyer present at the time of the hearing.

Unless the offense is a summary dismissal, the employee has to be warned and requested to stop said behaviour and given appropriate time to improve upon their behaviour before such dismissal. Employee should have assistance as required to change said behavior. If training is required it shall be given. After an oral warning, a formal warning in writing and final formal written warning, employee may be dismissed as the fourth and final warning.

Employment lawyer Albany

Lawyer for dimissing staff – image imagerymajestic

The employee should have the reasons laid out clearly regarding the decisions for dismissal so that they can understand why and recognise that they did indeed have time to change the outcome.

This should be done prior to the dismissal. An employee should have 60 days before dismissal to change their behaviour. They may also require a written statement of reasons and it shall be given within 14 days of the request.

All dismissals shall be done in writing.

Employees may be suspended with full pay pending the results of such an investigation and disciplinary process.

A word of warning about dismissing an employee

Employment law is very complex and needs to be followed exactly as the law states. If there is any deviation, even with the best of intention, then the employer can be liable for wrongful dismissal. So before you undertake any action to dismiss an employee, you are strongly advised to talk to an employment lawyer first.

For employers on the North Shore, McVeagh Fleming is one of the biggest employment lawyers in Albany. They have lots of experience in this regard. Talk to them or visit their website for details.

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Using A Lawyer for Your Bad Debt Collection Problems

Debt collection lawyer

Stressed because people won’t pay? – image David Castillo Dominici

When people you owe money for anything or a service that you have provided to them, they have an obligation to pay for it. Many sellers offer credit or easy payment terms in order to attract clients to build their turnover but they are still entitled to be paid. However, credit does come with costs, not just the lost interest from your having the money on your account but often the collection costs can be painful and expensive. Often the quickest way to get your money is to contact a lawyer to help with bad debt collection problems.

Debt collection protocols

Debt collection is a matter that is governed by a number of regulations and laws in each country, and it is incumbent on the debt collector or agency to adhere to these laws. The laws are generally there to act as protection for consumers while recognising their obligation to pay their bill. Debt collectors cannot use obscene or abusive language while dealing with the people who owe money. They have to ensure that they do not harass them with repeated calls, or make calls before 8 am and after 9 pm unless the person agrees to such calls. Calls, or visits to places of work are also not allowed nor are visits to the person’s home. The debt collector has to be correct in the figures being claimed, and threats to sue are frowned upon by the law. They cannot talk about this debt to other than the person who owes the money or his or her lawyer. Wages cannot be garnished, and if property is to be seized it does require a legal sanction. At no stage must a debt collector claim to be other than what he is. Some debt collection agencies try to intimidate people by claiming to be representing a credit bureau, or a law enforcement official.

How to collect debt

Most large companies have separate departments or personnel, or sometimes it is the duty of the sales staff, to constantly follow up with customers in order to ensure that they make payments. If you are a solo operator, then you may be wondering how to collect debt since you have the unpleasant task of following up with your clients. It is not something many people enjoy as they feel it will sour their relationship with their client. As a result they outsource the recovery process to collection agents, who work for a percentage of the owed amount.

Some companies also sell their invoices to a type of finance company which offers an invoice discounting service. This is a version of factoring which many people have heard of. This means the service provider is paid by the finance company for a discount of the total invoice value, getting immediate cash-flow and the finance service will collect from the buyer.

North Shore lawyers for bad debt collection

Even though you may have given extended credit and made numerous requests to a company to pay their bills, you still do not receive your cash. For example, if you contact a lawyer in your area, they can work on your behalf to recover the debt. You may think that the last thing you want to d from there is to spend more money on the situation but often just a small outlay can make all the difference.

The first thing a debt recovery lawyer can do is to write to your debtor requesting immediate settlement. It is surprising how quickly companies respond to a letter from a law firm. Businesses do not want the costs not hassle of having to get embroiled in legal action. For a start, if they refer the claim to their own lawyer, that will incur costs for them from the start. Further, their lawyer will probably advise them to settle as the company has consumed the product or service that was provided. All of this is obvious to the company so why would they create further costs for themselves? So ask your own law firm to send a letter to the company that owes you money and see if that produces the outcome you are looking for.

Further steps in collecting your bad debts

Debt collection problems Albany

Debt collection problems Albany

If your debtor does not settle your account within the time stipulated by your lawyer’s letter, then you will need to consider further legal action. Here again your solicitor will advise you of the best course of action.

The debtor may come back with a payment plan proposal. You can discuss this with your legal advisor and possibly your accountant to see if it is a reasonable proposal. Remember, you are in business to make money and not to provide a cheap banking service to customers. So the payment plan must be a sensible option for you and your business.

If you want to talk to a bad debt collection lawyer in Albany, McVeagh Fleming & Co is among the largest law firms on the North Shore. They will be able to help you.

Small business debt collection

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Shareholder Agreements in Place before Starting a Business Gives Clear Guidelines in Its Operations

Most businesses start out in a very congenial atmosphere with the founders having a shared interest in combining their talents for mutual benefit and profit from their company. They all bring their own different talents, expertise, qualifications and quite often their finances on to a common platform, and hope to profit from their efforts. This honeymoon takes them over the start-

Shareholder agreement lawyer

When someone says No

up phase, but once the business is set up, differences do crop up and disputes can lead to problems. This can be avoided by having clear shareholder agreements in place, before you put your business plans into action.

When no such agreements are in place, any disputes or course of action will have to be decided by the legal provisions that govern the firm whether it is partnership, a limited liability company or some other entity. In such a case, the law will prevail and none of the stockholders can have any say in the matter. The matter also comes into the public domain and negates any privacy. Clearly this will not be a good impression to customers or investors. But when shareholders agreements are in place, the course of action in the case of changing conditions within a business can be guided by the provisions made in the agreements. In such case, there is complete privacy, while the agreement ensures that there are no disputes.

There are number of situations that can arise during the operations of a company that involve shareholder interests, which can be guided by the provisions in a well-drafted and agreed shareholder agreement. These can be:

  • The death or bankruptcy of one of the shareholders
  • A shareholder wanting to terminate his or her interests in the business
  • The exit of a minority stakeholder
  • A demand by a shareholder to vote on a business decision in spite of not being on the board of directors
  • A deadlock that is affecting the business

Definite actions can be drafted in to shareholder agreements that deal with action to be taken in such cases, and as these agreements will have been agreed to by each of them, the clauses in it are legally enforceable.

Mechanisms can be laid down in these agreements that allow a shareholder to exit, and the terms of valuation in such cases and the desirability or viability of accepting third parties. Provisions can be laid down that allow the other shareholders to take up the stake at an agreed price. In case third parties are acceptable, they may ask for positions on the board and the agreements will have to clearly state the conditions under which this is acceptable. There must also be complete clarity on how board members are appointed, and the powers that will be vested in them. It is also possible to impose restrictions on key shareholders through non-compete provisions, by entering into such agreements before starting a business. A clear mandate needs to be in place that decides on what happens to the shares of a person who dies, or is incapacitated. Some businesses favor trustees or heirs to take over the shares, while others may require them to be sold.

Shareholder agreements ensure that a business is never brought to a standstill in the case of disputes. It provides all shareholders a peace of mind, knowing well that all eventualities have been taken into consideration and the provisions of the agreement or Articles of Association can be used to regulate shareholders, while running the business or deciding on any bones of contention. There is no definite legal requirement in the drafting of such shareholder agreements, except that they must include provisions that follow the principles of natural justice. The clauses in the agreements must suit the shareholders in question and must be agreed to by all of them before they come into existence. When you have such agreements in place, before the business is started, potential disruptions are avoided and the business can run smoothly.

For people starting a business around Albany or a company lawyer on the North Shore is McVeagh Fleming lawyers. They have a number of partners and experienced solicitors who specialise in providing advice on commercial law and company ownership issues. You can get some background on their website here.

http://www.mcveaghfleming.co.nz