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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.

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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!

Overwhelming Debt? Bankruptcy may be right for You.

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Are you struggling with debt?  The phone calls begin in the morning and continue all day?  The stack of new bills in the mail become confusing as creditors sell your debts to new collectors who do not identify who they are collecting for?  Does it not matter anyway, as you cannot pay them?

Many factors can lead to overwhelming debt: illness, divorce, job loss, cuts in overtime, car problems, etc.  There is HOPE! Bankruptcy may be a way to get a fresh financial start. Several hundred thousand people file in the U.S. every year.

Chapter 7 and Chapter 13 are the most common consumer bankruptcy filings.  We have consultations. Sit down with one of our experienced attorneys and discuss what option is best given your unique situation.

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For more information contact us at 513-752-3900.

Contact your Eastgate and Middletown, Ohio  bankruptcy attorney today to see if bankruptcy is the fresh start you need!

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.

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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.

Time for a fresh financial start!

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We are bankruptcy attorneys located in Eastgate and Middletown, Ohio. Since 1992, we have served the people of the Greater Cincinnati area.

Can you never get ahead and are always struggling?   Do you start to get ahead and an emergency comes along and you have to use credit cards again?  Or maybe you don’t have enough income to cover your monthly expenses and debts? If you didn’t have all of those debts, would have the funds to make it through each month?

Do you think it is time for a fresh start? Bankruptcy can provide this for you.  There is no reason to keep struggling.

If you are struggling, consider a bankruptcy filing.  Many mistakenly believe they will lose everything they own.  This is simply not true.  Hundreds of thousands of people file for bankrupt in the United States each year – it is just not something that people go around talking about.  Most of your assets will be protected under bankruptcy exemptions.

What exactly is bankruptcy?  Bankruptcy is a federal law which will allow you to discharge your debts, wipe them clean, and get a fresh financial start!.  There are two main chapters for consumers, Chapter 7 and Chapter 13.

CHAPTER 7

Chapter 7 is the most common chapter.  Under this chapter you discharge all of your unsecured debts and get a fresh financial start.  You will not have to pay any of your debts.  Once you receive your discharge the creditors cannot harass you in anyway, including sending you bills, calling you, taking you to court or garnishing your wages.

CHAPTER 13

Chapter 13 can save your home from foreclosure or prevent repossession of your vehicle.  Under this chapter you make a monthly payment to the Chapter 13 Trustee and they disburse this money monthly to your creditors.  You pay back a portion of your unsecured debts at anywhere from 1% to 100%.  After you complete your case you receive a discharge of debts and a report of all debts which were discharged through the case.

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Call 513-752-3900 to schedule your free consultation with an experienced bankruptcy lawyer. We have 2 convenient offices – Eastgate, Clermont County & Middletown, Ohio. Since 1992,  Keegan & Company Attorneys has helped thousands of people protect assets and enjoy relief from overwhelming debt.