With the U.S. economy showing only slow signs of growth, consumer debt continues to be a significant issue for many people.

Legal Issue Insights:

Legal Issue Insights

The Florida Legislature recently passed a bill drastically changing the existing durable power of attorney statute. Governor Rick Scott has yet to sign the bill but it is expected to become law shortly. When it becomes law, it will affect powers of attorney executed on or after October 1, 2011.

The new statute makes a great number of changes to the old law, clarifies some previously existing “gray” legal areas and greatly expands the previously existing statute. Some key provisions include:

•Powers of attorney must now be notarized as well as have two (2) witnesses for valid execution;

• Powers of attorney executed in other states are valid in Florida if validly executed in their state of origin;

• Special rules are provided for co-attorneys-in-fact;
• “Springing” Powers of attorney are eliminated after the effective date, although Springing powers executed before the effective date are still valid;
• Certain powers contained in the document must be initialed in order for the attorney-in-fact to perform such actions;
• Only qualified people can get paid to serve as the attorney-in-fact; and
• Much more specific standards of conduct must be followed by the attorney-in-fact.

You can view the contents of this bill here.

The net effect of this bill will provide for drastic changes to your average power of attorney. At DeLoach & Hofstra, we continuously work to improve and update our powers of attorney. This is another opportunity to make our documents even better and help our clients as best we can.

Local concert promoter Frank Giglio has filed for bankruptcy petition citing more than $300,000 in debts with $2,000 declared as assets. One of the creditors listed in the bankruptcy petition is the agency representing popular 80’s band Air Supply who are among a list of 28 creditors named in the petition. According to an article in the St. Pete Times, “Air Supply’s talent agency, the Los Angeles-based Agency for the Performing Arts, filed a lawsuit in Hillsborough Circuit Court earlier this month to recover $25,000 from Giglio.”

At DeLoach and Hofstra, our goal is help our clients and get their legal work done as efficiently and effectively as possible. We want our clients to understand their work product, what we are doing and why we are doing it. Estate Planning and other matters can be very complicated, but our goal is to make sure that your estate plan actually works upon your death or incapacity. Many estate plans fail because the client did not understand the implications of their will, the importance of funding their trust, or recognize the law of unintended consequences. An estate plan is more than a set of documents, it really is a plan for your death or incapacity.

Doing the right thing by our clients was instilled in me by my father. He has set the tone for creating a community law practice while giving the best quality legal care available. Being part of our community, we have a friendly law office. We do not screen our phone calls. We do not charge costs for faxes, copies or letters. Our fees are reasonable and we work with clients in paying for our services. We work every day of the week, return phone calls on time and will come in early and stay late to get your work done. When our clients are in need, we will do our best to help them – that is all there is to it.

Perhaps one of the country’s best known upscale furniture stores has filed for Chapter 11 bankruptcy protection in federal court. The Fort Myers-based company has been in business for 96 years but faltered when the housing market took a tumble in 2006.

In spite of the bankruptcy filing, company executives hope to make a rebound as the economy strengthens. In its bankruptcy filing, the company told the court that it was $57 million in debt and needed bankruptcy relief. Seeking comment on the bankruptcy, the News Press published these thoughts by a Florida business consultant:

“Orlando-based retailing consultant C. Britt Beemer said Robb & Stucky is a highly regarded, innovative company, but that when the housing crash hit in 2006, it hurt upscale furniture sales much more than furnishings at the lower end of the market.

“You look at a Robb & Stucky and some other high-end guys around the country, 50 to 60 percent of their business is directly or indirectly tied to new home sales,” he said. “When you lose that pace, it’s a slow death.”

It used to be that banks would foreclose on homes and condos when owners became delinquent with their mortgage payments. Now, that’s changed. Condo owners who’ve fallen behind their mortgages or their association dues may be facing foreclosure by the condo association. Banks don’t want to do it because then they are responsible for the association fees. So, with the advent of a new law, condo associations

According to the article in the St. Pete Times today, “HOAs are seizing more and more property as owners stop paying their monthly assessments. Some are going a step further — renting out the seized properties to recoup the lost dues. And thanks to a new law, they don’t even have to foreclose to collect rent in some circumstances.”

Tough economic circumstances have led to such a drastic change. “A Florida law enacted on July 1, 2010, allows homeowner and condominium associations to seize rent from tenants who rent from delinquent owners — even before foreclosing.”