Is Bankruptcy the Answer?

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We are bankruptcy attorneys located in Eastgate and Middletown, Ohio. For over 30 years, we have have helped people of greater Cincinnati solve their debt issues, protect assets and move on toward a healthy financial future.

WHAT IS BANKRUPTCY?

It is a legal procedure which gives debtors federal protection from creditors.  Under the federal code your debts will be discharged and give you a fresh financial start.

HOW CAN BANKRUPTCY HELP ME?

Filing bankruptcy could wipe out credit card debt and other unsecured debts. Once filed, no creditor can collect of those debts.

Filing will stop creditor phone calls and harassing letters and will stop repossession of your car or foreclosure of your home. You may still retain your home even if a foreclosure has already been filed.

Medical debt is discharged through bankruptcy. Overall, medical debt is the main reason in the U.S. for filing for bankruptcy. Hospitals and ER services cannot refuse you service in the future, if you were to file.

You will not lose everything you own! Sometimes in a chapter 7, the trustee may take assets and sell them to pay on your debts, however, our clients are relieved to learn they will keep most, usually all,  of their assets through bankruptcy exemptions. We can also help you pre-plan making the most of your bankruptcy exemptions.

WHICH BANKRUPTCY OPTION BEST FITS MY SITUATION?

The most common filings for bankruptcy are chapter 7 and chapter 13. Chapter 7 will wipe out all your unsecured debt (credit cards, medical debts, utilities, etc.). You can also keep your house and vehicle in chapter 7, as long as your current on payments. Chapter 7 is a straight bankruptcy, referred to as a liquidation bankruptcy. This will stop all collection proceedings including phone calls, mailings, garnishments and court proceedings. Over 65% of consumer bankruptcy filings in the U.S. are chapter 7.

Chapter 13 is a repayment plan. It is referred to as a wage earner plan. You must have a reliable source of income so that you can repay all or a portion of your debt. Chapter 13 will stop a foreclosure or repossession as well. It is designed to help you retain your home or vehicle if your behind. You will repay from 1% to 100% of your debt, depending on your individual situation. This will last a minimum of three years and max of five years. During this time it will be up to the creditors to file their claim in order to be paid during the case. Many do not and their debt is wiped out regardless.

WHAT DEBTS WILL NOT BE DISCHARGED?

Most of your debts can be discharged. Some debts cannot be discharged.

Student Loans – Most student loan debt is not dischargeable. In some situations a debtor can claim that student loan debt causes an extreme hardship and obtain a discharge, but it is very difficult to persuade a Bankruptcy Court to discharge a student loan debt. But we have done it successfully a number of times in the right circumstances.

Taxes – Some income tax debt can be discharged in bankruptcy, but this varies, and you should make an appointment for your free consultation to discuss your individual situation. A lot of tax debt is dischargeable and it takes a thorough analysis to determine.

Alimony and Child Support – Back payments or arrearages for child support and for alimony are non-dischargeable. Orders to pay attorney fees in child support and child custody cases are usually non-dischargeable.

Fines and Penalties – Most fines that are imposed by a court and most penalties that are assessed by a government agency are non-dischargeable. License reinstatement fee are dischargeable.

WHAT HAPPENS AFTER BANKRUPTCY?

 You can improve your credit after filing and the close of your case. Continue making your payments on assets that you keep.  Make all of your payments on time with no slow pays and keep your     accounts out of collection.  Follow these rules and your credit will rebuild rapidly.

Bankruptcy Chapter 7 v. Chapter 13

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For most once they decide to file bankruptcy the decision comes down to which Chapter they will be filing.  Both chapters are beneficial in their own way.  Many factors play into which chapter you will file.  Your income and assets are the main considerations.  Your attorney will discuss with you the process and your best option.

BANKRUPTCY TIMELINE

In Ohio a typical Chapter 7 bankruptcy lasts about six months from the day you see us until you receive your discharge.  Your  meeting date which is called a “341 Meeting” will be four to five weeks from your filing date. These are currently held by phone at our office.  In Chapter 13 expect to be in the case for a period of three to five years as this time period is mandated by federal law.  Once your complete your Chapter 13 you will receive your discharge.

PAYMENT OF DEBTS

In bankruptcy debts are classified into basically two groups – unsecured debts (credit cards, medical debts, loans) and secured debts (houses, cars, anything secured by collateral). There is also a sub-category of unsecured loans which are called priority debts. Student loans and tax debts fall into this category.  In Chapter 7 you will be able to discharge all of your unsecured debts and not have to pay anything back. Student loans and most taxes will likely survive the case.  As to secured debts that you want to keep (such as your home or vehicle) you continue to make your payments and sign a reaffirmation agreement within the case.

Chapter 13 is a re-payment plan.  Under this re-payment plan you will pay all of your debts with a single payment to the Chapter 13 Trustee once a month.  Out of this monthly payment the trustee may make your regular house payment.  Home payments in arrears are caught up through your Chapter 13 payment.  Vehicle payments will also be paid through the trustee. You will pay back a percentage of your unsecured debts.  This percentage is based on several factors and can range from 1 percent to 100 percent.  The debts will be paid in order of priority.  So basically in a Chapter 13 you have one payment a month to the Chapter 13 office.

ASSETS

In Chapter 7 if you are not current on your home the lien holder will require that you get current or they may file for Relief from Stay which, once granted, will allow them to foreclosure.   However, if you are current on your home Chapter 7 is not a problem, just continue to make your payments and you may reaffirm the debt. An single individual has a home equity exemption from creditors and the bankruptcy court of $145,425 ($290,650 for a married couple).

Chapter 13 is designed to help you save your home if you are behind on your payments.  Under Chapter 13 you will have three years to make up your missed payments.  Delinquent car payments may also be made up in a Chapter 13.

MORE INFORMATION

Call today to set up your free consultation to find out which bankruptcy chapter is best for you. We have represented 1000’s of clients over 30 years. We’ll make the bankruptcy law work for you!

Bankruptcy & Foreclosure

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FACING FORECLOSURE? WE CAN HELP!

Job loss, a medical emergency or any number of other issues can cause you to fall behind on your mortgage payments. A mortgage company usually will not start a forclosure until you get about 3 to 4 months behind on your mortgage.  Once a foreclosure is started it will take approximately 6 months for it to complete.  In foreclosure your home will be auctioned and transferred out of your name.  But you can stop this process.

The problem that caused you to get behind may now be resolved but you may still be behind on your mortgage.  Your mortgage lender will almost want all delinquent funds paid in a lump sum before stopping the foreclosure.  Most people are not able to come up with this large sum of money. A chapter 13 will stop the foreclosure and force your mortgage holder to accept back payments over a three year period.

If you are considering withdrawing retirement savings to save your home STOP! This could be a very costly mistake. First, schedule a free consultation with one of our attorneys to discuss your options.

CHAPTER 13 BANKRUPTCY CAN HELP

Once you are behind on your mortgage almost all lenders want all the back payments paid at once.  Few people have these funds available.  This is when you need to consult with a bankruptcy attorney.  Chapter 13 bankruptcy is available.  Chapter 13 can save your home. Once you are under the protection of Chapter 13 your mortgage company must stop all foreclosure proceedings.  Through your bankruptcy case you will have 3 years to pay back the arrears to your mortgage lender.  Your mortgage company must comply with these rules and must stop the foreclosure.

As to your unsecured debts, Chapter 13 can help you with that too. You will be only paying back a percentage of your unsecured debt and at no interest.

MORE INFORMATION

If you are struggling with your mortgage or other debts call us today.  We offer a free consultation, fair fees and monthly payment plans.  We can help you get out of debt and save your home.

Credit After Bankruptcy

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BUILDING CREDIT AFTER FILING FOR BANKRUPTCY

It will not be difficult to re-build your credit after a bankruptcy filing.  Any debt that you keep through a bankruptcy (such as a home or vehicle) will automatically report on your credit report and start to re-build your credit score.  The important thing is to pay all debts on time after bankruptcy.  You may even qualify to buy a home two years after bankruptcy with a clean credit report after filing.  After you file, you may be surprised at the amount of credit card offers you will receive after bankruptcy.  Some creditors know that you can’t file again for some time and are therefore willing to extend credit. Be careful with this!

We will walk you through the process and make it as easy as possible.  Our attorneys have a combined experience of over 55 years and the goal of our office is to make filing for bankruptcy protection as simple and stress free as possible. After bankruptcy, our clients are usually excited to create a new budget that includes saving for the future!

HOW TO GET STARTED

Call 513-752-3900 to set up your free consultation to sit down and discuss your unique situation with an experienced attorney.  Our attorneys will advise whether bankruptcy is your best option. Fees are quoted based on your individual case.