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Struggling with Debt? What You Should Know to Avoid Making Things Worse…

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Good people find themselves deep in debt for a lot of reasons:  Job loss, health issues, and divorce are common reasons for debt problems.  We see people try all kinds of ways to try to stay ahead.  Here are some things that you should NEVER do:

Do not take out a second home mortgage to pay debts.  This transfers unsecured debts to secured debt attached to your home. If you cannot make payments your creditor will foreclose on your home. It is possible to protect your home in bankruptcy.

Do not pay debts using your retirement savings account.  Retirement accounts are protected through a bankruptcy filing.

Do not max out your credit cards to stay afloat.  Recently incurred charges may not be able to be discharged through a bankruptcy filing.

Do not transfer your home to another person to avoid having a lien placed on your property.  Call us first to discuss any such transfers.

Bankruptcy is not the end of the world.  There are hundreds of thousands of bankruptcy filings in the United States each and every year.

Here are some thoughts of things to do when filing for bankruptcy.

Do consider this decision very carefully.  Under Chapter 7 you will only be able to receive a discharge every 8 years.  There are other options if you have filed within the last 8 years and are struggling.  Contact us for a free consultation.

Do follow the advice of your attorney.  At our office we have over 55 years of combined experience and will be able to guide you to make sure your bankruptcy is as painless as possible.

Do be honest in all of your answers on the petition.  Be sure to list all assets and not leave anything out. We can usually protect your assets with full disclosure and some pre-planning.

Do be sure to list all of your creditors on your petition.

Do close any bank accounts with which you have credit lines or credit cards.  This will prevent the account from being seized by the creditor.

Bankruptcy is a serious decision and should not be taken lightly.  Contact our office for your free consultation to discuss your individual situation to see if bankruptcy is the right decision for you.

 

 

BANKRUPTCY AND YOUR RETIREMENT ACCOUNT

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SHOULD I CASH IN MY RETIREMENT TO PAY MY DEBT?

The answer is NO!  Almost always s bad idea!  You have worked hard and saved for retirement.  Your retirement is just for that, your retirement.  Most likely your current employer provides funds for retirement.  If you are already retired then you need these funds now, do not cash them in to pay debts.

Bankruptcy may be available for you.   Under  Bankruptcy  law your retirement funds are protected.  You can file bankruptcy and keep your retirement accounts for when they will be needed – when you retire.

WHAT IS BANKRUPTCY?

A federal law set up which will allow you to discharge all of your unsecured debts.  Once a discharge is issued creditors can no longer collect on debts included in the bankruptcy.  You do not have to pay any of these debts and you do not need to report the filing to the IRS as income.  There are two main chapters filed by most consumers – Chapter 7 and Chapter 13.

CHAPTER 7 

Chapter 7 is the most common bankruptcy filing.  It goes by many names, Chapter 7, straight bankruptcy, simple bankruptcy, liquidation bankruptcy and so forth.  In a Chapter 7 you wipe-out all of your unsecured debts.  If you have secured items you would like to keep such as a home or vehicle you will be able to reaffirm on these debts through your case.

CHAPTER 13

Chapter 13 is designed for those who are over income for Chapter 7 or who are behind on their homes or vehicles.  Chapter 13 is a repayment plan.  Under Chapter 13 you will have 3 to 5 years to make up payments on your home or vehicle.   You will pay back a percentage of your debts to your unsecured creditors.  You will receive a discharge at the end of your case.

MORE INFORMATION

For more information call us at 513-752-3900 to schedule a no obligation, free consultation with an experienced attorney.  Since 1992,  Keegan and Company Attorneys has helped thousands of people of the Cincinnati area get well deserved financial relief and asset protection. We are here and available to help you!

BANKRUPTCY & GARNISHMENTS

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OUR OFFICE CAN STOP WAGE GARNISHMENTS. CALL 513-752-3900 TO SCHEDULE YOUR FREE CONSULTATION

Once a creditor obtains a judgement against you they can garnish your wages. In the state of Ohio a garnishment can take 25% of your pay BEFORE TAXES.

You can stop a garnishment by filing bankruptcy.  Once you file for bankruptcy an “automatic stay” goes into effect which prohibits further and stops all current collection efforts by creditors.  If the garnishment continues after the case is filed all funds must be returned to you.  Once you receive your bankruptcy discharge the debt is wiped clean and cannot be collected upon.

The “automatic stay” does not apply to domestic support obligations, such as child support or alimony.  These are considered priority debts that are unaffected by the automatic stay and cannot be discharged through bankruptcy.

When you file bankruptcy you are required to list all your creditors so they can be notified of the bankruptcy.  However, there is a chance that creditors may not be alerted in time to put a stop on the garnishment after they case is filed. In this case, any funds that are garnished after the bankruptcy filing will be returned to you.

If you are struggling with debt or a wage garnishment you should immediately contact our office for a free consultation.  At Keegan & Company, you meet with an experienced attorney (not a paralegal or secretary) to discuss your individual situation.  We have free consultations, fair fees and monthly payment plans.

Contact Keegan & Company Attorneys for help today.

BANKRUPTCY IS YOUR RIGHT AND PROTECTED BY THE CONSITUTION

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The office of Keegan & Company Attorneys has been in practice for over 30 years.

Bankruptcy is specifically set forth in the United States Constitution.  The United States Constitution states “The Congress shall have Power to establish….uniform laws on the subject of bankruptcies through out the United States.”  Bankruptcy is a constitutional right.

Our founders wanted to ensure that there would be a uniform system of bankruptcy so that one state would not put someone in debtor’s prison for a debt that was discharged in another state. James Madison, in Federalist Paper No. 42, wrote about how important uniform bankruptcy laws would be for the regulation of commerce in the United States.  In this article the power to pass and regulate bankruptcy was mentioned in the same paragraph as the power to issue currency and regulate the use of foreign currency.

The United States Congress passed the first bankruptcy law in 1800. That law lasted until 1803.  The next bankruptcy law was not passed until 1841, which also had a short life, lasting only until 1843.  After the civil war, Congress passed a bankruptcy act with a little more longevity, lasting from 1867 to 1878.  Congress finally passed a permanent bankruptcy law in 1898, which remained in place for the next eighty years.  The current structure of bankruptcy laws was enacted in 1978. In 1984, 1986, 1994 and 2005, the bankruptcy act was revised, but the basic structure remained in effect.  The 2005 act added the means test, limits on restructuring vehicle loans and a credit counseling requirement.

Bankruptcy can help you get a fresh financial start.  It is designed to discharge all of your unsecured debts.

At our office we offer a free consultation  with one of our attorneys to discuss your individual situation.

Call us at 513-752-3900 to schedule your free consultation. We offer 2 convenient locations: Eastgate & Middletown. Easy Parking. Fair Fees. Caring and Knowledgeable Attorneys.