WHAT IS THE BANKRUPTCY PROCESS?

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Filing bankruptcy is an important decision. Bankruptcy is designed to give you a fresh start by eliminating overwhelming, harmful debt so you can begin anew financially.

All in all, the process usually takes around three months from beginning to end. Your first step is to schedule a free consultation with one of our attorneys. If you can, bring along your financial information and bills for our attorney to review. Eventually, in order to file your case, we will need a complete list of your assets and debts.

During your consultation, your attorney will discuss exemptions that will allow you to keep equity in your home, cars, retirement accounts and other items.

Then, once we have all your documentation, your case is signed, and your costs and fees are paid, we file your case. A meeting with the United States Trustee is scheduled about 30 days after filing. These meetings are currently being held in our Eastgate office by telephone. You and your attorney will to meet together with the trustee.  The meeting typically takes 10 -15 minutes.

Although a good majority do, not every one qualifies for a Chapter 7. Whether you qualify is based on your income, family size, debts and other financial information. If you do not qualify for a Chapter 7 case you may file a Chapter 13 bankruptcy which is a repayment plan that protects wages and assets from attachment and interest from accruing while completing the plan. A Chapter 13 may be necessary to save a house or car from repossession.  A Chapter 13 case can be converted to a Chapter 7 in many circumstances. We are with you throughout the process to modify your case as necessary over the months or years as your circumstances change.

In a Chapter 13 case, clients pay a percentage of unsecured debts. Depending upon your situation,  the amount repaid can be as low as 1%. We will need your income for the last six months to formally evaluate whether you should do a Chapter 7 or Chapter 13 case.

Our office does not charge for the initial consultation. Your attorney will quote you a flat rate after evaluating your case. The more detailed income and debt information you provide at the initial consultation, the better we can properly advise you of your legal rights. Call 513-752-3900 to schedule an appointment at either our Eastgate or Middletown locations.

 

Can I Rebuild My Credit after Bankruptcy? Yes You Can!

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Can I Rebuild My Credit after Bankruptcy? The Answer is Yes!

Bad credit records such as delinquencies, too much outstanding credit, slow pays, etc are all negative marks that will remain on your credit record for up to 10 years. In most cases, although the creditor may not be actively pursuing your debt, the debt remains valid and open to collection through wage garnishment or bank account seizure. Bankruptcy solves this problem because it eliminates your debt. After bankruptcy, your financial situation will be far better as you will no longer be shuffling funds in an attempt to cover all the bills. After bankruptcy, our clients are excited to create a new budget… that includes savings!

Usually within a year of filing bankruptcy, your credit record will improve substantially. You will become a better credit risk than you were prior to the bankruptcy. For many, bankruptcy is the first step toward better credit, financial freedom and saving for the future.

Once you complete your case and your debts are discharged your old debt is eliminated. You will have a Fresh Start! Most creditors will see this fresh start and lack of other debt as a positive. One Caveat—creditors now want evidence that you can handle credit going forward. For this reason, after you file bankruptcy it will be extremely important that you control your use of credit.

Initially, bankruptcy will be a hit on your credit score but in the long run, the notation “discharged in bankruptcy” is much better than having your accounts reported as delinquent and open. We recommend that soon after your bankruptcy discharge you get a copy of your credit report. Review this report carefully, check to make sure that the debts you included in your bankruptcy are reported to be DISCHARGED with a ZERO balance. Dispute any accounts that have not been updated.

Depending on when you file Chapter 7 or 13, a bankruptcy will stay on your credit for 7-10 years. Despite this, you will soon have the opportunity to rebuild your credit. Some companies cater to those who have filed bankruptcy by offering secured credit cards with low credit lines and high interest rates. If you use this credit wisely and make all your payments on time you will prove that you have become a good credit risk.

What Factors Will Affect My Ability to get Credit?

Factors that are considered: Income,  Job History,  Credit Score,  Debt-to-Income Ratio.

After Bankruptcy We Encourage our Clients To:

Periodically monitor your credit record and dispute errors.

Make “on time” payments.

Maintain a stable job history.

Deliberately and thoughtfully apply for new credit. 

Use no more than 10-30% of your available credit.

Are You Ready for a New Start? We Want to Help!

The lawyers of Keegan & Co. Attorneys have over 55 years combined experience helping people just like you resolve debt issues. Our attorneys have handled several thousand bankruptcy cases from the simple to the most complex. In all likelihood, we’ve seen your situation or type of problem dozens of times before. We can almost always help, even if it’s just advice on how to avoid bankruptcy.

Many are surprised to learn just how quick and painless the bankruptcy process is. You will need to provide us with certain documents and it is required that you take two short online credit counseling classes. Our attorneys will handle the rest. You and your attorney are required to appear for just one hearing. These hearings are held at our office.

Consultations are free and at Keegan & Co Attorneys and will always be with an experienced attorney, never with a paralegal or secretary. Call 513-752-3900 to schedule your personal consultation. We look forward to meeting you!

STRUGGLING WITH DEBT? BANKRUPTCY MAY BE AN OPTION.

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STRUGGLING WITH DEBT?

You have tried but the struggle is never ending.  It seems as soon as you start to get ahead something else comes up and gets you behind.  Bankruptcy may be the answer to your financial troubles. Bankruptcy gets rid of debts and sets you on the path to a fresh financial start.

Chapter 7 and Chapter 13 are the most common cases.  Each chapter has its own rules.  To find out more,  meet with one of our attorneys who will advise which path is best for you.

CHAPTER 7 BANKRUPTCY

Chapter 7 Bankruptcy is also referred to as straight bankruptcy.  This chapter is available for most consumers.  Under Chapter 7 Bankruptcy protection you discharge all unsecured debts.  A discharge is a document issued by the federal court which deems your debt satisfied and non-collectable by creditors.  Once you file Chapter 7 all collection practices by creditors must stop by court order.  This includes, but is not limited to phone calls, mail harassment, court proceedings and garnishments.

Chapter 7 is sometimes referred to as a liquidation bankruptcy because the Chapter 7 Trustee may take some of your assets and sell them to pay your debts.  However, our clients can protect and keep most assets (usually all) through exemptions provided by the bankruptcy code and careful pre-planning.  Call our office today for your free consultation to discuss your individual situation.

In Chapter 7 Bankruptcy you are able to keep your home and vehicle.  You must however, be current or able to catch up on your payments if you wish to keep the asset.  The creditor will have a reaffirmation agreement for you to sign and this will deem the debt non-discharged through the bankruptcy.  This reaffirmation agreement also ensures that the creditor will continue to report your payment history to the credit reporting agencies, thus rebuilding your credit after the bankruptcy filing.

CHAPTER 13 BANKRUPTCY

Chapter 13 bankruptcy is designed for those who are over the income limit for Chapter 7 or are behind on their home or vehicle and want to keep these assets. Chapter 13 is a re-payment plan in which you pay between 1% to 100% of your debts (depending on your individual circumstances).  An unsecured creditor cannot charge you interest during a Chapter 13. Once you complete your case all of your debts will be discharged.

Chapter 13 bankruptcy, also referred to as “a wage earner plan”, allows you to retain ownership and possession of assets that you wish to keep.  You may also choose to surrender assets through Chapter 13.  To qualify for a Chapter 13 Bankruptcy you must have income to support the case as you will be making monthly payments to the Chapter 13 Trustee who will then disburse these funds to pay your creditors.

Chapter 13 can stop a foreclosure. If you are in foreclosure and want to save your home you can file a Chapter 13 to stop the foreclosure.  Your mortgage holder cannot object to your bankruptcy filing.  Chapter 13 generally lasts for a three to five year period.  During this time you make up all your missed payments and the Trustee will disburse your regular house payment.   At the end of your case the Trustee will file a notice with the Court that all payments are current and deem that your mortgage holder cannot come back on you for additional fees incurred while you were under bankruptcy protection.

If you are behind on your vehicle, Chapter 13 can also stop repossession and give you time to make up the missed payments over a three to five year period.

AFTER DISCHARGE  AND ON THE PATH TO A FRESH FINANCIAL START

Once you receive your discharge creditors can no longer collect on these old debts. They cannot send you a bill, they cannot call you, they cannot take you to court, they cannot garnish your wages.  You will be free and clear from these debts and on the road to a fresh financial start!  As a result, you can re-build your credit and move forward.  Most importantly, you should make all payments for debts on which you reaffirmed on time and seriously consider your budget before taking on future debt.  Your credit rating will improve in no time.