Pawn Shop Loans In Belize

Meet Janet. Janet is a 34 year old employed, single mother of two toddlers – Tyler, 5, and Alex, 3, earning a modest salary of $1,200 a month. Unfortunately, Tyler is suffering from appendicitis and needs surgery to have his appendix removed right away. Janet’s salary isn’t enough to cover her current monthly expenses as well as the medical expenses incurred due to Tyler’s condition; so she decides to pawn her vehicle to get the extra money she needs for her son.

Janet visits a Belize City pawn shop and pawns out her 2006 Ford Escape, which is valued at $16,000 on her insurance policy. She settled for the $3,000 maximum that the pawn shop offers for vehicle pawns which must be paid back within a month at a 25% interest rate. The pawn shop also made Janet aware that there is a two-month grace period before she is served by the police to repossess the vehicle.

Tyler is now recovering well after surgery. But after paying all his medical bills, Janet didn’t have enough to cover her total pawn repayment within the two-month period. Now, the pawn shop is taking her vehicle away. What can she do to get her vehicle back?

Legal Advice by Estevan Perera – Attorney-at-Law

According to the Belize lawyer, Janet should challenge the Pawn Shop at the Magistrate Court based on the following grounds:

1. The loan agreement appears to violate section 26(1) of the Money Lenders Act and, as such, can be challenged in the Magistrate’s Court.

Section 26(1) of the Money Lenders Act states that the lender cannot charge interest in excess of 48% annually (4% monthly). Because Janet’s agreement states that the monthly interest is 25%, the Magistrate may deem the loan agreement illegal or the Magistrate may reduce the interest rate considerably so that it becomes compliant with the Act.

2. Section 24 of the Money Lenders Act states that if the borrower should go to court with evidence that proves the interest charges in respect to the amount of the loan are excessive, or if the penalties are harsh and unconscionable, the court may relieve the borrower of any excess payments.

Since the Pawn Shop wants to keep Janet’s vehicle, she needs to inform them that she is aware of her rights as a borrower and does not permit them to sell her vehicle because of non-payment. It is illegal for the Pawn Shop to keep a vehicle valued at $16,000 in exchange for a $3,000 loan. They would be unjustly enriching themselves. The proper procedure for the Pawn Shop to be able to get back their payments from the borrower would be to auction the vehicle for its true market value and then take the money owed to them (including interest) and return the balance to Janet.

There are several provisions made in the Money Lenders Act that protects lenders from these Pawn Shops and Small Money Lending businesses. You can read more about them here.

Estate Planning has a bad reputation as being a hassling task to complete. But hiring an attorney to help will make the process a whole lot quicker and easier. Belize Probate Lawyers can assist with drafting your will, formalizing the documents, and ensuring that your final wishes are carried through as planned.

Here are some reasons why you should create a will.

Secure your kids’ future

It’s very careless, though commonplace, to assume that your parents or other close family member will pick up the slack and take responsibility of raising your kids after you’ve passed. If you want a specific family member or friend to take care of your children, that’s not your next of kin, you need to explicitly state that in your formal will.

Keep your family happy

A lot of people tend to make a major beneficiary of their will the estate’s executor. Decisions like these can blur the lines of fairness causing tension and conflict within the family. Its best to choose someone outside the family, like your attorney or a close friend that’s not a beneficiary of the will, to be your estate’s executor.

Don’t let the government distribute your estate

It is common for the government to step in and distribute assets that’s left in one’s estate if there wasn’t a will prepared before the person’s passing. In most cases this shouldn’t matter, because the assets would go to the deceased’s next of kin. However, there are families with a very unique structure comprising of members completely unrelated by blood. If your family falls within this category and you want to leave something for a non-blood relative or close friend, ensure that it’s stated clearly in your will otherwise they could be left out.

Let a Belize lawyer help you

Belize lawyers specializing in Probate and Succession are easy to find. They can assist in the preparation of a will, application for grant of probate, application of administration, challenges to will, estate planning advice and the republication of a will. Call a lawyer in Belize today and ensure your family is well provided for with a will.

A huge misconception with small business owners is that they don’t need to do things “on the record” like hug incorporations. However, this theory can – and will – land small businesses in a lot of trouble. So if you think you don’t think you need a corporate lawyer, think again!

Get help from Belize Lawyers

No matter the size, every company should solicit the help of a corporate lawyer to ensure that all legalities concerning the business is taken care of. Luckily, there are expert corporate lawyers in Belize that can ensure your business is fully covered against any legal liabilities. Here are some scenarios where your small business will definitely need a corporate lawyer.

Partnership Agreement

This is an integral element of your business that needs to be solidified with a formal contract. Most times small business partnerships are formed between very familiar parties that may not explicitly express their role in detail. Similarly, verbal agreements may be made that are never put into writing. It is best to get a corporate lawyer on board that can prepare a Partnership Agreement that specifically states each partner’s role, rights and obligations in the business as well as an asset and ownership split.

Negotiations

A constant part of owning a business is engaging in negotiations with other businesses or customers. For example, on any given day you could be negotiating your lease with your landlord, corresponding with other businesses that you contract services from, or you could be entering an agreement to expand your business. All these scenarios require a thorough knowledge of the legalities involved as well as due diligence and impeccable attention to detail. This is where a corporate lawyer can help. In the case of dealing with your landlord, a corporate lawyer would ensure that you are well aware of any provision that may be unfavorable to you like common space utilities, lease renewal terms, or any increases in rent. Similarly with contracting services or growing your business, corporate lawyers will make you aware of any unfavorable terms or “fine prints” that may deter your business’ success.

Drafting Contracts

Contracts serve as the instruction manual to how your business operates as a structure, with its employees, with its customers, and any other entity it associates with. As such, a contract is a very integral instrument in ensuring that every operation runs smoothly within the business and that its best interests are maintained. So it doesn’t help that contracts are written in a jargon so difficult to understand that people need go to school well into adulthood to fully comprehend. Lawyers are formally trained to create and analyze contracts. Don’t risk undertaking any liabilities because you didn’t understand what the agreement stated. Get a lawyer to verify the legitimacy and benefits of every agreement you enter into.

Litigation

Handling litigations is the area that lawyers are probably most needed (and appreciated). You will never have a 100% customer satisfaction rate. Your customers will find faults; some will even go so far as to make legal claims against you because of their dissatisfaction. This is where lawyers shine! In situations like this, it is your lawyers job to deal with any disgruntled customers whether it be advising you to settle with the customer or not, or convincing the customer to drop the lawsuit.

Confidentiality

It’s very hard to find complete honesty and trust within any business, be it big or small. When information gets shared that was meant to remain only between parties of a private discussion, the business looks bad and may incur liabilities because of that leak. Having a corporate lawyer can quickly remedy this situation via an injunction. The entire situation could be prevented also by having a corporate lawyer to create a Confidentiality Agreement and ensure its implementation.

Other ways corporate lawyers can help your small business is through the development of effective Terms & Conditions and Privacy Policy for your business website, protection of your Intellectual Property, taxation, finance, and more. Never discount the benefits of having a corporate lawyer in Belize assist you with the day-to-day transactions of your small business.

For a Belize lawyer visit https://www.attorneybelize.com or contact Steve Perera at +501-610-4444 or email [email protected].

Belize trust formations are a great way to secure your hard earn money and make even more by earning profits on your investment. There are many reasons why the formation of these offshore Belize Trusts is beneficial. We’ll look over a few reasons how you can benefit from them as well as where you can go to effectively form Belize Trusts.

Benefits of Belize trusts

1. Provides shield from creditors

Forming a Belize trust is an excellent way to protect your assets. Creditors cannot access or cease your funds once they are invested in a trust. Once the Belize trust is formed before any legal grievances are levied against you, your investments will remain secure and cannot be incorporated into any legal settlement that intends to seize your assets.

2. Avoid probate and estate taxes

Probate is the process in which a judge certifies a will’s validity. This process can be expensive and time consuming. An offshore trust in Belize allows you to bypass the probate process, giving your beneficiaries instant access to their assets.

3. Familiarity of laws and language

Belize Trusts are prepared in English and conform to the laws of England which is almost identical to the law of Belize.

4. Tax planning

Trusts can afford grantors huge savings when it comes to tax planning since trust assets are not considered property of the grantor, and all profits and capital gains earned by the trust would be taxable based on the laws of the country where the trust was established. Belize trusts are exempted from all income and corporate taxes based on the Belize Trust Act. There is neither any estate, inheritance, succession or gift tax on assets that are attained by a trust nor is there any stamp duty imposed.

5. Inheritance planning

Trusts are a great instrument in planning how you will manage your inheritance. For example if you are leaving real estate or a car to be shared between multiple beneficiaries, you can then include stipulations within the trust details to specify who all has access to the asset, how it should be shared, if it can be sold, who can sell it, and the manner in which the proceeds of selling the asset should be disbursed.

6. Confidentiality

Trusts provide more privacy than wills because they do not undergo the probate process. This means that there will be no public record of the trust and its details of neither assets nor beneficiaries.

7. Flexible Distribution

Trusts allow the grantor to dictate how they want the assets distributed to the beneficiary. For instance, if money is being disbursed, the grantor may choose for it to be issued by annuity payments instead of a large sum. They can also specify how they want the beneficiary to use the assets. Using the same instance above, the grantor can specify that the money is used to pay rent or medical expenses.

If you’re ready to secure your investments with an offshore trust, visit the Belize Corporate Services’ website for full Belize trust formation specifications. Belize Corporate Services specializes in the formation of Belize IBCs, Belize Trusts and Belize Foundations with supplementary services in offshore banking, virtual office services and more. You can also get assistance from trusted Belize lawyers.

Belize Corporate Services Ltd. (BCS) is the leading offshore provider in Belize specializing in Belize IBC, Belize Trust and Belize Foundation formations. BCS has a global network of clients and professional intermediaries that benefit from their international financial services. Some such services include Belize IBC formations as well as other international company formations in BVI, Nevis, Panama, Hong Kong among several others; trustee and trust agent services; opening offshore bank accounts; opening online and offline securities brokerage accounts; visa credit, debit and prepaid cards; virtual office services; and bookkeeping services.

Belize Corporate Services is a full-service Belize offshore provider that can guide you through the entire process of Belize IBC, Belize Trust and Belize Foundation formations.

Belize IBC (International Business Company)

Invest in Belize and enjoy all the perks of conducting business in a tax haven. In 1990, Belize passed its International Business Companies Act which is based heavily on that of the British Virgin Islands and allows for the formation of Belize IBCs.

An International Business Company or IBC is an untaxed offshore business that is formed under the laws of another jurisdiction. IBCs are a convenient, private and tax efficient way of conducting offshore transactions and provides asset protection.

Belize IBCs (International Business Companies) are normally exempt from all local corporate taxes and can issue shares from the business to a set of shareholders from anywhere in the world except Belize. The IBCs directors and employees can also be from anywhere around the world and not necessarily be working from within Belize. Although it is not necessary to have the business physically located in Belize, there can be a local registered agent in the country if the business owner(s) desire. Because the Belize IBC is exempt from corporate taxes, they are not permitted to conduct business with other companies in the country.

Belize IBCs are a great means of achieving profitable offshore investments but there are some limitations to how these International Business Companies can conduct business in Belize. They are restricted from conducting any business in Belize using the IBC name which includes owning real estate in Belize, holding shares in a local company or having Belizean shareholders in the IBC.

Belize IBC formations are fast and easy to create, especially with the help of Belize Corporate services who specialize in Belize IBC, foundation and trust formations. Here are some benefits of creating a Belize IBC.

• Tax-freeExempt from all forms of taxes in Belize including stamp duty
• No currency barriersThere are no foreign exchange controls as Belize IBCs are free to open and maintain any currency account
• FlexibleBelize IBCs provide flexibility. IBCs can have only one director. Shareholder meetings do not have to take place in Belize. IBC’s are free to migrate in and out of Belize and can be incorporated in any language.
• Speedy RegistrationThere is a fast registration process of Belize IBCs as they are normally incorporated within 24 hours of the submission of the constitutive documents and fees.
• AffordableBelize IBCs are affordable with an incorporation and annual license fee at USD $100.
• ConfidentialBecause only the memorandum and articles of association along with the name of registered agent and the address of the registered location are necessary when filing for an IBC, the owners are guaranteed the highest privacy and confidentiality when conducting business.
• Small marketThere is no need to worry about your company name being taken since Belize has a very small market of IBC’s currently registered.

Visit Belize Corporate Services for more information on Belize IBC formations. If you need legal help, select a reputable lawyer from our list.

Download your own copy of the Belize IBC Act.