Thinking about Bankruptcy??

We are bankruptcy attorneys located in Eastgate, OH. We specialize in Chapter 7 bankruptcy and Chapter 13 bankruptcy.

HOW DOES BANKRUPTCY WORK?

While most court cases are heard in either civil or criminal court, bankruptcy has a dedicated system of courts. Each judicial district in the U.S. has its own bankruptcy court. United States bankruptcy judges have the authority to make binding decisions in bankruptcy cases, such as eligibility issues or whether to grant a debt discharge. However, most aspects of the bankruptcy process are done outside of the court. For example, an appointed trustee carries out the administrative duties of Chapter 7, Chapter 13, and other types of bankruptcy cases.

The debtor actually has very little interaction with the bankruptcy judge. Chapter 7 applicants don't even set foot in court and only see the judge if there are objections to the bankruptcy plan. Chapter 13 debtors typically appear in court just once, at the bankruptcy plan confirmation hearing. The informal meeting of the creditors (also called a "341 meeting," based on Section 341 of the Code) is typically held at the trustee's office.

BANKRUPTCY GOAL

Federal bankruptcy laws are intended to allow debtors a way out of particular debts, giving consumers and businesses a fresh start where all other options have failed. A 1934 U.S. Supreme Court decision described bankruptcy's role as giving the unfortunate debtor a new opportunity and a clear field for the future. The bankruptcy discharge, a court order releasing the debtor from personal liability for certain debts, is the main way this is accomplished. The discharge also prohibits creditors or collections agencies from communicating with debtors.

To get more information contact our office today at 513-752-3900, or visit us at www.keeganandrade.com.

DIFFERENT TYPES OF BANKRUPTCY

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:

Chapter 7 bankruptcy is titled "Liquidation" in the Code, since most of the debtor's assets are sold for cash or liquidated and used to pay creditors. However, there are certain limits to which assets may be liquidated. Chapter 7 filings where there is very little nonexempt property, if any, are called "no-asset cases." Creditors holding unsecured claims (such as credit card issuers) typically do not receive proceeds unless it is an asset case and the creditor has filed a proof of claim with the court.

Chapter 13 Bankruptcy is titled "Adjustment of Debts of an Individual with Regular Income." Unlike Chapter 7, Chapter 13 is best suited to debtors with regular income. Those who file under Chapter 13 typically are able to hold onto valuable assets, such as a house and car. Instead of liquidating assets, Chapter 13 debtors work out a plan to repay creditors over a longer period of time, usually three to five years. The court either approves or rejects the repayment plan at a confirmation hearing. A Chapter 13 debtor typically remains in possession of property and makes payments to creditors through the trustee. The plan is based on the debtor's projected income over the life of the bankruptcy plan. The debtor does not receive an immediate debt discharge upon approval, but must complete payments first. While the plan is in effect, the debtor is protected from wage garnishments, lawsuits, and other creditor or collections actions. Additionally, debtors may be able to eliminate more debts under the Chapter 13 discharges.

SOME PRO'S FOR FILING BANKRUPTCY

Although a bankruptcy stays on your record for certain amount of years, the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about 3-6 months. So, the trade-off is freedom from debt. Declaring bankruptcy now can get you started sooner on rebuilding your credit. You will lose all your credit cards. Your credit cards probably got you in this mess to start with, so it's hard to see that as a bad thing. Bankruptcy has become an effective tool for wiping out credit card debt. Collection efforts must stop as soon as you file for bankruptcy under Chapter 7 or Chapter 13. As soon as your petition is filed, there is by law an automatic stay, which prohibits most collection activity. If a creditor continues to try to collect the debt, the creditor may be cited for contempt of court or ordered to pay damages.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com

FREE CONSULTATION

Contact our office today in Eastgate, Ohio for your free consultation to see if bankruptcy will give you the financial relief you are looking fo

Need help with harassing phone calls from creditors?

We are bankruptcy attorneys located in Eastgate, OH. We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.

GET RELIEF

After you file your bankruptcy petition with the Court, you should not receive anymore harassing calls or mail. You usually receive immediate protection from creditors through a court order known as a bankruptcy automatic stay. This means creditors must stop collection efforts. The automatic stay in bankruptcy was designed to stop foreclosures, stop repossessions, stop phone calls and mailings, stop wage garnishments and stop many lawsuits. Creditors can face consequences for contempt, because the automatic stay is a court order. The court can order fines, attorney’s fees and damages if you continue to receive calls. Punitive damages aren't available for contempt.

WHAT IS AN AUTOMATIC STAY?

In United States bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, the stay begins at the moment the bankruptcy petition is filed.

WHAT WILL AN AUTOMATIC STAY HELP WITH?

If you’re behind on a utility bill the automatic stay will prevent the disconnection for a period of time. If your home mortgage is being foreclosed on, the automatic stay temporarily stops the proceedings, but the creditor will often be able to proceed with the foreclosure sooner or later. Filing for bankruptcy stops wage garnishments. You also may be able to discharge the debt in the bankruptcy.

These are just some of the ways filing bankruptcy could help you.

WHAT WILL AN AUTOMATIC STAY NOT PREVENT?

The IRS can still audit you and demand a tax return. Despite the automatic stay, money can be withheld from your income to repay a loan from certain types of pensions. If you had a bankruptcy case pending during the previous year, then the stay will automatically terminate after 30 days unless you, the trustee, the U.S. Trustee, or a creditor asks for the stay to continue and proves that the current case was filed in good faith. A lawsuit against you seeking to collect child support or alimony isn’t stopped by your filing for bankruptcy.

These are just some of the issues an automatic stay won’t prevent. Speak with our bankruptcy attorney’s for more details.

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. There are two main bankruptcy chapters that are normally filed with the Court, chapter 7 and chapter 13. Chapter 7 is designed to wipe out all your unsecured debt. Chapter 13 is designed as a repayment plan, it allows you to make payments over a period of three to five years.

Both are very common in today’s economy.

CAN I KEEP MY HOUSE OR VEHICLE?

If there are secured items you wish to keep (home or vehicle) you would sign a reaffirmation agreement for these items.

A reaffirmation agreement is a bankruptcy document that would be signed to reaffirm debts that you do not discharge through your case. These items will report to the credit agencies and help rebuild your credit.

In a chapter 7, you can keep your home and vehicle as long as you are current on payments. Chapter 13 is designed for you to keep your home or vehicle if your behind. Chapter 13 also will stop a foreclosure, it will allow you to make the payments back over a period of time. Chapter 13 will also stop a vehicle from being repossessed, also allowing repayment. If the vehicle has already been repossessed and you want it back, the only way is a chapter 13, as long as it hasn’t been sold yet. If it has been repossessed and you don’t want it back, once sold you would carry a deficiency balance.

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

FREE CONSULTATION

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

Can bankruptcy help me?

We are bankruptcy attorneys located in Eastgate, OH and Middletown, OH.  We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.

WHAT IS BANKRUPTCY?

This is the legal proceeding which relieves debtors from responsibility of debt payments who cannot meet them and also provides protection while attempting to repay the debts.

HOW CAN BANKRUPTCY HELP ME?

Filing bankruptcy could wipe out credit card debt and other unsecured debts. If filed, no creditor can legally collect of those debts.

Bankruptcy can stop creditor harassment, as in phone calls and harassing letters and could stop repossession of your car or foreclosure of your mortgage. You could still retain your home even if a foreclosure has already been filed.

Medical debt is discharged through bankruptcy. Overall, health care is the main reason in the U.S. for filing bankruptcy. Hospitals and ER services cannot refuse you service in the future, if you were to file.

You do NOT lose everything you own. Sometimes in a chapter 7, the trustee may take items and sell them to pay on your debts.

These are just some of the ways that a bankruptcy could help you.

WHICH BANKRUPTCY OPTION BEST FITS MY SITUATION?

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.

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 debt, depending on the individuals situation. This will last a minimum of three years and max of five years. During this time it will be up to the creditors to file claim in order to be paid during the case.

WHAT DEBTS WILL A BANKRUPTCY NOT ERASE?

Most of your debts can be discharged in a bankruptcy. Some debts are not dischargeable. They cannot be wiped out in a chapter 7 or at the end of a chapter 13. Some kinds of debt can never be discharged.

Student Loans - Most student loan debt is not dischargeable. In some situations a debtor can claim that student loan debt causes an extreme hardship and can obtain a discharge, but it is very difficult to persuade a Bankruptcy Court to discharge a student loan debt.

Taxes - Some income tax debt can be discharged in bankruptcy, but only if you filed your required tax returns at least two years before you file your bankruptcy petition, and only if the tax debt is more than three years old. If your tax returns are found to be fraudulent or if you evaded your taxes, your tax debt cannot be discharged.

Alimony and Child Support - Back payments or arrearages for child support and for alimony are nondischargeable. Orders to pay attorney fees in child support and child custody cases are usually nondischargeable.

Fines and Penalties - Most fines that are imposed by a court and most penalties that are assessed by a government agency are nondischargeable.

These are just some of the nondischargeable debts.

WHAT HAPPENS AFTER BANKRUPTCY?

If you want to have credit, you will be surprised at the amount of credit offers you will receive once you file for bankruptcy protection. You can improve your credit after filing and being discharged. This gives people the opportunity to rebuild their credit because it eliminates the old debt.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com

FREE CONSULTATION

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