FDIC CHANGES FOR LAWYER TRUST ACCOUNTS (IOLTA)
Washington State Bar Association Reports:
With Congress failing to take action to extend unlimited coverage, as of Jan. 1, 2013, FDIC insurance available to IOLTA accounts is limited to the standard amount of $250,000 per owner of the funds (client), per financial institution, assuming that the account is properly designated as a trust account and proper accounting of each client’s funds is maintained.
Since November 2008, a series of temporary federal laws have operated to provide unlimited FDIC deposit insurance coverage for most IOLTA accounts. For the past two years, IOLTA and non-interest-bearing accounts enjoyed unlimited FDIC insurance coverage under Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That provision was effective for two years with a sunset date of Dec. 31, 2012.
Now, funds deposited in IOLTAs are no longer insured under the Dodd-Frank Deposit provision. Because IOLTAs are fiduciary accounts, they generally qualify for up to $250,000 in “pass-through” coverage (the insurance coverage passes through the fiduciary-depositor to the client-owner’s funds) on a per-client basis.
Read the entire article at Washington State Bar Association
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The Journal of Business Reports:
County released from casino agreement …
The city of Airway Heights announced that it has agreed to release Spokane County from a contract that prevented the county commissioners from taking a position with the Bureau of Indian Affairs or the Washington state governor’s office on the Spokane Tribe’s proposed West Plains casino.
Spokane County commissioners had asked to be released from the three-year-old contract. Two new commissioners have been elected to the county board since the agreement took effect.
Airway Heights Mayor Patrick Rushing said in a press release, “The city of Airway Heights believes in open government, and we encourage Spokane County to voice its concerns about the project proposed by the Spokane Tribe so we, as a community, can gain a better understanding of their position.”
The BIA currently is reviewing the Spokane Tribe’s proposal, which would require approval from Washington state Gov. Jay Inslee as well.
To read the complete article visit the Spokane Journal.
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“They make laws as they are needed; a new law for each emergency. They are unfettered by precedent in the administration of justice. Customs have been handed down by ages of repetition, but the punishment for ignoring a custom is a matter for individual treatment by a jury of the culprit’s peers, and I may say that justice seldom misses fire, but seems rather to rule in inverse ratio to the ascendency of law. In one respect at least the Martians are a happy people; they have no lawyers.” A Princess of Mars (John Carter) Edgar Rice Burroughs (Check in weekly for more Law Quotes brought to you by Murphy, Bantz & Bury)
Do-It-Yourself Bankruptcy, is it the best choice for you?
Now days DIY (do-it-yourself) projects are becoming increasingly popular, with our economic status and the need to save money, it may seem like a good idea, but is a DIY bankruptcy your best choice? For the latter of Americans, a DIY bankruptcy could end up costing you more than it will save you. Bankruptcy attorneys have the experience to properly prepare your bankruptcy filings in order to benefit you.
Most Common Disadvantages of do-it-yourself Bankruptcies:
1) Bankruptcy is a complicated process. You will spend hours trying to educate yourself on the procedures of a bankruptcy case where a bankruptcy attorney will already know what needs to be done. It is much safer using an attorney who already knows the system to avoid any complications or mistakes that could occur if you try to prepare and file on your own.
2) Bankruptcy hearings and meetings require your presence. Judges and Trustees may present questions or concerns regarding your bankruptcy, you may not know the answers to, where an attorney will know the general issues that cause concern and the way to settle those concerns. Often times Debtors give too much information or say too much while in the presence of the judge or trustee. For example, questions that may be asked of you in a meeting of creditors are extremely limited; you will not know what questions you don’t have to answer.
3) There is always a greater chance of making a mistake when you are preparing a bankruptcy yourself. Once again bankruptcy attorneys prepare and file bankruptcies daily; they know the system and the way to properly prepare your bankruptcy in the best interest of you, the Debtor. Non lawyer bankruptcy form preparers are allowed only to assist in filling out forms and may not give legal advice. They must not instruct you what to do to get the best result; a lawyer is obligated to do just that.
4) Some errors in bankruptcy, such as not reporting property, pre-bankruptcy transfers, or certain creditors, may violate Federal Criminal Law. Debtors violating such laws may face jail time.
These are just some of the disadvantages you may face when filing a bankruptcy yourself. As a law firm we would advise you to seek the advice of an attorney before attempting to file Bankruptcy on your own.