Getting out of Debt, Bankruptcy is Best

We are bankruptcy attorneys we have offices located in Eastgate, Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 Bankruptcy filings.

Are you struggling with debt?  Many Americans struggle with debt every year. Looking for the best way out of debt can be exhausting and time consuming.  The most common ways out of debt are debt consolidation, debt management, debt settlement, do it yourself and bankruptcy.  It is best to determine the best way out of debt for yourself.  But be careful, believe it or not there are many unreliable and even predatory companies out there that will take advantage of you if you're not careful.

In this blog we will cover these basic ways out of debt and I will show you why bankruptcy is the best way out of debt.

DEBT CONSOLIDATION

Debt consolidation is when you get a new loan to pay off your existing debts. The term "consolidate" means to group several things together into one, which makes sense since debt consolidation groups all of your existing debts into a new loan.  Doing this may lower your monthly payment and possibly your interest rate.

The problem with debt consolidation is you have not reduced your amount of debt, you have simply lumped all of your debt into one loan with one payment.  You are still accruing interest on this high balance and it will take years to pay off this single loan.

Entering into a Chapter 13 bankruptcy will also lump all of your debts into one low monthly payment.  However, in chapter 13 no interest will incur and you will only pay back a percentage of the debt you owe.

DEBT MANAGEMENT

A debt management plan is a program offered by companies or non-profit groups that say they will help you negotiate a new payment plan with your current creditors.  The debt management company will negotiate your debts with your creditors and you will make a monthly payment to the debt management company directly, while they will pay your creditors for you.

There are several problems with the debt management plan.  First and foremost an honest debt management company is hard to find.  Unfortunately not all of these companies are honest in what they are selling you and how they distribute your funds.  We have had more than one client say they paid to one of these companies without ever seeing their balances go down.

Bankruptcy is held in a federal court.  All bankruptcy attorneys are governed by their state bar association, which means we are legit and will not take your money and run per say.

DEBT SETTLEMENT

Debt settlement is when you work directly with your creditors and they will accept a lower amount of money than what you owe them.  You must have the full amount to immediately pay.  This is not too bad of a way out of debt, if you have the funds to do so.

Even if you do have the funds to do debt settlement, not all of your creditors may be willing to work with you and give you a reduction in the amount you owe, so you would not get anywhere in the process with these creditors.  Also, creditors who do settle with you will send you a 1099 at the end of the year and you will need to claim the amount that the creditor wrote off as income on your next tax return.  You will most likely end up owing the IRS and that is just not pretty and there is not quick way out of owing debt to the IRS.

If you file for bankruptcy even in Chapter 7 where you will wipe out all of your debt and not have to pay back a dime, you will not receive any type of tax documentation.  You do not have to list a bankruptcy on your tax return.

DO IT ON YOUR OWN

Aren't you already trying to do this?  Paying each month what you can afford to pay, but not really getting ahead.  It really depends on the amount of debt that you have if you will ever be able to get out of debt on your own.  If you don't have much debt, then this will be a great option for you.  Unfortunately, the average american household has $15,000.00 in credit card debt, not to mention medical debt.  This is really no small amount to pull yourself out of.

BANKRUPTCY REALLY IS THE BEST OPTION

Bankruptcy gets a bad rap in the minds of many.  Many think you have to be a deadbeat or scum of the earth to end up filing for bankruptcy protection.  This is not true, there are thousands of bankruptcies filed in the US each day.  Most are filed by families trying to get by, just like you.  Just because you file for bankruptcy does not mean that you are a bad person, just a regular person in a bad financial situation.

This is the fastest and easiest way to get out debt.  True, the bankruptcy filing will stay on your credit report for up to 10 years, but all of the options above will affect you for about the same amount of time.  The key to bankruptcy is afterwards paying all of your bills on time and not having debts go into collections.  You will be able to get new credit rather quickly if that is what you desire.  Under federal bankruptcy protection you can wipe out all of your debts and get a fresh financial start, without much penalty.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com.

Call today for your free consultation to see if bankruptcy is your best way out of debt, we offer fair fees and monthly payment plans.

Bankruptcy: Chapter 7 vs. Chapter 13

We are bankruptcy attorneys  we have offices located in Eastgate, Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

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.  Many prefer to qualify for Chapter 7 but may not qualify.

BANKRUPTCY TIMELINE

In Ohio a typical Chapter 7 bankruptcy lasts about six months from the day you file until you receive your discharge.  Your actual court date which is call a 341 Meeting of Creditors will be four to six weeks out from your filing date.  For Chapter 13 you will also have a 341 Meeting of Creditors about four to six weeks after your filing date.  Once you file for 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.

PAY BACK OF DEBTS

In bankruptcy different debts are classified in basically two groups.  Your unsecured debts (credit cards, medical debts, loans) and your 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.  If you file for Chapter 7 you will be able to discharge all of your unsecured debts and not have to pay anything back.  Most unsecured debts can be discharged, student loans and most taxes will survive the case.  Any secure debts that you would want to keep (such as your home or vehicle) you would continue to make your payments on 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 payment the trustee may make your regular house payment.  If you have any back payments on your home they would also make this payment for you.  If there is a vehicle payment involved this will also be made by 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 and your utilities to pay during the duration of the case.

ASSETS

One big benefit of Chapter 13 is you will not have to worry about losing any of your assets in the case.  You keep all of your assets that you wish to keep.  In a Chapter 7 which is also referred to as a liquidation bankruptcy as the trustee may take some of your assets and liquidate them to gain funds to pay your creditors.  Most people do not have to worry about this though because in Ohio the exemptions are very high and most assets can be protected.

As to your home if you want to qualify for a Chapter 7 you must be current on your mortgage payment to keep your home.  If you file Chapter 7 and 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 they can begin the process of foreclosure.  However, if you are current on your home Chapter 7 is no problem, just continue to make your payments and you may reaffirm the debt in the case is you wish.

Chapter 13 is designed to help you save your home if you are behind on your payments.  Under Chapter 13 you will have the three to five year period to make up your missed payments through the case.  The trustee will also make your regular house payment and at the end of the case the trustee will certify that all payments are current.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com.

Call today for your free consultation to find out which bankruptcy chapter is best for you.

Bankruptcy & Divorce

We are bankruptcy attorneys we have offices located in Eastgate, Ohio and Middletown, Ohio. We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.

It's not uncommon for someone to file for bankruptcy after a divorce. You or your ex-spouse may not be able to keep up with payments on credit cards and other debts on a single salary. It happens, and it's a legitimate reason to look for relief through bankruptcy.

Money is a big stress factor in many relationships. Sometimes a couple that has money problems will think that the answer to their problems is divorce. Each spouse is likely to believe that the other is mostly responsible for the couple's money problems. This belief may or may not be true. One thing is true, you can divorce your spouse, but you can't divorce the debts incurred during your marriage.

When either party contemplates bankruptcy, one consideration is the timing of the filing and whether the parties should file a joint bankruptcy before or during the divorce, or an individual bankruptcy before, during, or after the divorce. Your creditors are not part of the divorce, and the family court cannot alter, modify or revise the contract between debtors and their creditors.  Any joint debt discharged by one party will leave the other party solely liable, exposed to collection efforts and law suits, and will often force the other spouse to repay or file bankruptcy.

Both spouses are responsible for the debts incurred during the time of the marriage. Your divorce settlement will divide up the debts, assigning responsibility for some to one spouse and some to the other. But that divorce settlement is between you and your ex-spouse. It doesn't bind the creditor, who can collect the debt from either one of you. This means if your ex-spouse doesn't pay his or her share of the debts, the creditor can come after you for payment.

HOW CAN I GET STARTED?

Call our office today and set up your free consultation with our Attorney’s. Here you will discuss which chapter of bankruptcy is best for you.

Bankruptcy can mean different things to different debtors. There are several types of bankruptcy chapters provided under the U.S. Bankruptcy Code, each with its own rules and procedures.

The most common filings for bankruptcy are chapter 7 and chapter 13. Chapter 7 will wipe out all your unsecured debt (credit cards, medical fees, 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. As many as 65% of consumer bankruptcy filings in the U.S. are chapter 7. Under a Chapter 7, any debt incurred to a spouse or former spouse that is incurred during a divorce by agreement, decree or court order is not dischargable.  If any assets are recovered, these debts are paid before most of the other debts.

Chapter 13 is a repayment plan. It is referred to as a wage earner. 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 1% to 100% of your unsecured debt, depending on the individuals situation. This will last a minimum of three years and maximum of five years. During this time it will be up to the creditors to file claim in order to be paid during the case.  Under a Chapter 13, the debtor may receive a discharge from obligations incurred as part of the divorce if certain conditions are met.

HOW CAN I GET BACK ON TRACK?

Once you have fully discharged, rebuilding can sometimes seem like an overwhelming task. But it’s important to realize that there is life after bankruptcy. Repaying your existing bills as agreed will be one of the single, most powerful things you can do to restore your finances and your credit. You will be surprised at the credit offers you will receive once you have finished the bankruptcy process

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com.

FREE CONSULTATION

Contact our office today for your free consultation to see if bankruptcy will give you the financial relief you are looking for.

Bankruptcy Options

We are bankruptcy attorneys we have offices located in Eastgate, Ohio, Middletown, Ohio and Centerville/Dayton, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

Have you gotten in over your head with debt?  Many out of your control circumstances can lead to this.  Job loss, divorce and medical emergency.  You are not alone, millions of Americans struggle with debt every month.  At our office we can help you get out of debt by helping you file for bankruptcy protection.  Sometimes debt can get out of our control but we can regain control and not just be a leaf blowing in the wind.  Bankruptcy is not for everyone but many it is the best way out of debt.

There are two chapters of bankruptcy for the consumer, Chapter 7 and Chapter 13.  What are the differences between Chapter 7 and Chapter 13?

CHAPTER 7

Under Chapter 7 you will be able to discharge (wipe out, erase, get rid of) all of your unsecured debt and not have to pay anything back.  Once you file for Chapter 7 all collection actions must stop, this includes phone calls, mailings, court proceedings and current garnishments must stop.  Even if you already have a garnishment on your pay check it will have to stop once your Chapter 7 is filed.  Any funds that might be taken after the case filing will be returned to you by the creditor.  Under Chapter 7 the trustee may sell some of your assets, but in most cases this is not the case because of the exemptions which will protect your assets.  Most people who consider filing for bankruptcy want to file under this chapter as it is the quickest way for you to get out of debt and get a fresh financial start.

CHAPTER 13

Chapter 13 is designed for people who make too much to qualify for a Chapter 7.  Under Chapter 13 the same goes as under 7 that all collection actions must stop, including phone calls, mailing court, proceedings and current garnishments.  Chapter 13 can also stop a foreclosure and allow you to save your home.  You will be able to do this by making your missed payments over the next three to five years.  Under Chapter 13 you will make one lump sum payment to the Chapter 13 Trustee and they will disburse your funds to your creditors.  Your regular house payment may also be included in the payment.  This is a good practice as at the end of your case the Trustee will file documentation with the court deeming that you are current on your payments.  This prevents the creditor from coming back on you after discharge and stating that you still have outstanding fees.  You will not pay back 100% of your unsecured debts.  You will pay a percentage of your unsecured debts from 1% to 100%.  In order for the creditor to be paid they must file a proof of claim with the court, if they fail to file this documentation once you are discharged these debts will also be deemed discharged.

OUR OFFICE

At our office we will offer you a free consultation.  At this consultation you will be able to sit down with one of our attorney and discuss your individual situation.  He would quote you a fee at the free consultation.  If you decide to move forward with bankruptcy a small retainer fee will get things started, once you retain our office you will be able to forward your creditors to us until your fees are paid in full and your case is filed.

Do not continue to blow around like a leaf out of control.  You do have control over your circumstances and there is something you can do to change it.

For more information see our website at www.keeganandrade.com, www.middletown-bankruptcy.com or www.centervilleohiobankruptcy.com.

Contact your Southern Ohio bankruptcy attorney today!

Chapter 13 Basics

We are bankruptcy attorneys we have offices located in Eastgate, Ohio, Middletown, Ohio and Centerville/Dayton, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

In this blog, however, we will be focusing on Chapter 13.

WHAT IS CHAPTER 13 BANKRUPTCY

Chapter 13 is designed for people who are behind on their mortgage payments who would like to save their home or their income is too high to qualify for Chapter 7.  Chapter 13 involves paying your disposable income to creditors over a three to five year period.  During this time you will be able to make up any missed mortgage or vehicle payments.  Your unsecured creditors will be paid a percentage of what you owe them, once you complete your case and receive your discharge the remaining balance will be deemed discharged through the case.  This means that creditors will not be able to collect on these debts in any way or form.  They will not be allowed to contact you by phone, mail or any other means.

WHAT IS DISPOSABLE INCOME?

To determine your disposable income we will need to know your income for the last six months.  If you have had a pay cut or loss of overtime hours we can reduce your current income for these situations, same if you are making more money at the time we would have to increase your current income.  We would then need to subtract your expenses from your income.  This includes all of your expenses required to take care of your family such as food, rent or mortgage,vehicle payments, utilities and other such needs.  Then we consider things that you know you will be spending such as car repairs, home maintenance or medical expenses.  Then we need to look at things you may not be spending money on but it would be in your best interest to do so such as health insurance, life insurance or maybe a retirement savings account.  If you have expenses not mentioned that doesn't mean we can't count it as long as it is reasonable and necessary.  Once all of these expenses are counted they get deducted from your income and the remainder is an idea of your disposable income.

WE WILL BE THERE FOR YOU

It is not a good idea to try to file a Chapter 13 on your own at your court hearing the trustee will evaluate the reasonableness of your expenses and will try to cut them down so that there is extra money to pay your creditors.  Our job as your attorney is to protect the money that is necessary for you to take care of yourself and your family.  This is why we sit down with you and go over your unique situation and expenses with you thoroughly before the case is filed.

HOW MUCH WILL MY CHAPTER 13 PAYMENT BE?

Your Chapter 13 payments must be enough to cover certain required payments.  Your plan payment must be enough to pay for your mortgage arrears over the next five years, your current mortgage payment (as the 13 office would make your regular mortgage payment through the case), if you have a vehicle payment this will be included and a small amount for your unsecured creditors.

FREE CONSULATION

Every situation is unique.  We offer a free consultation where you will be able to sit down with one of our attorney and discuss your situation.  The attorney will be able to give you an approximate amount of what your Chapter 13 payment would be at this free consultation.  They would also quote you a fee.  If you decided to move forward a small retainer would get things started and then we would take payments, once paid your case will be filed.

For more information see our website at www.keeganandrade.com, www.middletown-bankruptcy.com or www.centervillohiobankruptcy.com.

Contact your Southern Ohio bankruptcy attorney today for your free consultation.

Bankruptcy Myths

We are bankruptcy attorneys we have offices located in located in Eastgate, Ohio, Middletown, Ohio and Centerville/Dayton, Ohio.  We specialize in bankruptcy filings.

Most have preconceived ideas about bankruptcy, but the most common stereotype of bankruptcy does not stir up a lot of sympathy for most of us.  We picture a young, reckless American adult, privileged and unschooled in smart spending and saving, who has racked up credit card debt through frivolous living (picture:  vacations, fancy cars, a mortgage they can't afford) who is suddenly reduced to eating Ramon noodles, pawning valuables, and asking friends to foot the bill at restaurants.  We see their demise and think, well, that serves you right.

But the truth is only a handful of bankruptcy actually look like this.  Surprised?  Don't be.  The past decade has involved plenty of ups and downs in the U.S. economy, making Americans seasick as they struggle to get a hold of their finances in turbulent times.  As a result, the fact of bankruptcy has changed quite a bit.  While it's true that the stereotype of the "irresponsible spender" characterized the bankruptcy field, let's get one thing straight:  more factors than irresponsible spending drive people to bankruptcy.

There are quite a few myths reinforced by years of media and movies in the American mind that simply, are not true, especially now that bankruptcy is shifting in America.

 Myth #1 - Only irresponsible spenders file bankruptcy

As I just pointed out, times are changing, and the economy has forced the hands of unlikely profiles to declare bankruptcy.  Nowadays, bankruptcy hits normal families with normal spending habits just as often as it hits reckless spenders among us.  For many people, filing bankruptcy is a desperate reach for a lifesaver at the mercy of expensive healthcare costs due to illness or injury, student debt, divorce proceedings, or just the rising cost of life:  food, housing, education, etc.  Job loss, too, plays a roll in bankruptcy.

Myth #2 - It's nearly impossible to recovery financially from bankruptcy

Bankruptcy is our nation's way of protecting the debtor and providing a route to financial freedom.  It is the path to recovery.  Of course, the way out is through sound and smart habits:  using credit cards wisely, ensuring that your credit is being reported back to the credit bureau, saving and paying bills on time.  Even in a tough financial climate, it is possible to regain a footing and get out of the nightmare of debt.

Myth #3 - You can discharge your entire debt load through bankruptcy

Certain types of debt cannot be discharged under the U.S. Bankruptcy Code.  If you think about it, we'd all be declaring bankruptcy if we could get rid of all of our debt so easily, and you can imagine how this federal protection would quickly become abused.  In 2005, the Bankruptcy Above Prevention and Consumer Protection Act (BAPCPA) prohibited student loans from being discharged through bankruptcy.  Debts incurred through improper behavior are not discharged, such as through fraud, malicious injury to a person, personal injury to another person, or injury caused by the debtor's operation of a motor vehicle while intoxicated.  In addition, certain types of tax claims, debt for spouse or child support, and debts to the government are typically not discharged.  However, there are numerous amounts of debts which can be discharged through a bankruptcy.  To discuss your individual situation contact us today for your free consultation.

Myth #4 - Your credit is ruined forever if you file for bankruptcy

A bankruptcy will stay on your credit report for anywhere from 7 to 10 years, depending on the chapter you file.  However, you will be able to regain credit. The secret is to pay the bills you have on time and don't have any debts go into collection.  Keep your credit clean and you will re-gain good credit again before you know it.

Myth #5 - College educated people with successful jobs rarely file bankruptcy

The institute for Financial Literacy reported in 2011 that "college education doesn't appear to ward off bankruptcy as the rate of decree holders filing bankruptcy increased by 20%" in the five years prior to the report.  In addition, during those five years, bankruptcy filers with incomes above $60,000.00 increased their rate of filing by over 66%.

If you've gone to college, had a fairly successful life, and feel shame at the thought of declaring bankruptcy, understand that the numbers are shifting.  It's normal to cringe at the thought of filing for bankruptcy, but the reality is that more and more educated, successful professionals have accepted this as the route to regain their feet under them when debt piles too high.

Bankruptcy does happen to good people.

More Information

For more information visit our website at www.keeganandrade.com, www.middletown-bankruptcy.com or www.centervilleohiobankruptcy.com.

Contact your Southern Ohio bankruptcy attorney for your free consultation today.  We offer fair fees and monthly payment plans.

Bankruptcy

We are bankruptcy attorneys we have offices located in Eastgate, Ohio, MIddletown, Ohio and Centerville/Dayton, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

Job loss, divorce, a medical emergency or other catastrophic event can make it hard to keep on top of debt.  Millions of people have used U.S. bankruptcy laws to get a fresh start.  There are several myths about bankruptcy that just are not true.

BANKRUPTCY WILL RUIN MY CREDIT FOREVER

It is true that bankruptcy stays on your credit reports for up to 10 years, but once the slate is essentially clean after a successful bankruptcy filing, people can instantly start re-building their credit.  In fact, many people even gain stronger credit scores after filing and their old debt is gone and they can start a fresh start.  Think about it, your credit probably isn't that great to begin with. Bankruptcy is designed to clear debt and give people a fresh financial start, once a bankruptcy is filed credit card and car company offers will replace the collection letters once received in your mailbox, so if additional credit is what you desire, you will be surprised at the amount of credit card offers you will receive after your bankruptcy filing.  Creditors know that you cannot file again and that you are debt free, so they are wiling to extend credit to you once again.

I WILL BE LOOKED DOWN UPON

Everyday people just like you decide to file for bankruptcy.  With the economy, bankruptcy does not hold that old stigma it may have a decade ago.  Most of us are struggling with debt, and many have lost jobs, making bankruptcy more common than most realize.  Your neighbor or best friend may have filed.  Bankruptcy filings do not get published in your local newspaper it will not be common knowledge that you filed for protection.  The only people who will know will be you and your attorney, there is no reason to tell others.  Creditors will give you a second chance, the important thing will be to try to pay anything you keep on time and try not to have any debts go into collection.  Bankruptcy has helped millions of Americans get out of debt and can help you to.

BANKRUPTCY IS EXPENSIVE

Many people believe that bankruptcy will be too expensive for them to file.  Bankruptcy is not free of course, but the fee is small compared to the amount of debt you will be discharging.  We offer a free consultation, where you will be able to sit down with an experienced attorney and discuss your situation.  The attorney will go over all of your options and quote you a fee.  If you decide to move forward a small retainer will get things started and then you can make monthly payments on your case.  Your monthly payment can be what you can afford, we just wont file your case until your fees are paid in full.

MORE INFORMATION

Fore more information check out our website at www.keeganandrade.com, www.middletown-bankruptcy.com or www.centervilleohiobankruptcy.com.

Call today for your free consultation with your Southern Ohio bankruptcy firm.