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BANKRUPTCY IS YOUR RIGHT AND PROTECTED BY THE CONSITUTION

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.

BANKRUPTCY & THE SENIOR CITIZEN

Bankruptcy is designed to help people overly burdened with debt gain a fresh start. Often the person needing relief is a senior citizen. We have a rapidly growing senior population and while many have been able to plan for the future with quality pensions and health insurance plans, many rely solely on social security.  Problems develop when these individuals are hit with demands from creditors on debts they have co-signed on, often for their children and grandchildren.

In most cases, if you are senior citizen collecting social security, you will likely travel through the bankruptcy process problem free. Even if you own your home or car outright the asset exemptions for Ohio residents is high enough that it will likely protect your home and your vehicle.  If you are elderly, you may qualify to have the filing fee waived by the court.

Social security and pension plan payments are exempt in bankruptcy. In other words, they will not be touched by the bankruptcy court.

Many seniors place undue pressure on themselves to pay debts when they are struggling to pay for food and medication. Many were raised with the view that bankruptcy is not an option and see it as indicator of failure. In reality bankruptcy is a legal option that allows seniors to focus on their own needs and not their creditors.

Contact our office today to see if bankruptcy will be able to help you or your aging parents get a fresh financial start.

Call 513-752-3900 to schedule your free consultation with an experienced attorney.  We offer a free consultation, fair fees and monthly payment plans. We are caring and knowledgeable attorneys.

Bankruptcy Chapter 7 v. Chapter 13

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!

Overwhelming Debt? Bankruptcy may be right for You.

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.

MORE INFORMATION

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!