Bankruptcy Basics

We are a bankruptcy firm located in Eastgate, Ohio.

What is bankruptcy? Bankruptcy is a process in which consumers and businesses can eliminate or re-pay some or all of their debts under the federal protection of the bankruptcy code. Basically there are two types of bankruptcy available for the consumer; Chapter 7 and Chapter 13.

CHAPTER 7 BANKRUPTCY

Chapter 7 is designed to clear off or discharge all of your unsecured debt. This will give you a fresh financial start. Creditors can no longer collect on debts by mail, telephone calls or court proceedings. If there were secured items that you wish to keep such as your home or vehicle you would re-sign on these items under a reaffirmation agreement.

A reaffirmation agreement is a bankruptcy document that you would sign to reaffirm debts that you do not want to discharge through your case. The debts that are re-signed on will report to the credit reporting agencies and help to re-build your credit.

Chapter 7 is also referred to as a "liquidation bankruptcy" because the  trustee may take and sell or liquidate some of your property to pay back some of your debt. However, you will be able to keep most if not all of your property due to the protection of the bankruptcy exemptions. These include such things as your home, vehicle, cash on hand, jewelry, household items, retirement plans, and most other assets. The exemptions vary so you should contact our Eastgate, Ohio bankruptcy firm for further details.

Are you eligible for a Chapter 7. Not everyone can qualify for Chapter 7, there are several factors to consider, but most can qualify. Contact our office today for your free consultation to see if you qualify for Chapter 7.

CHAPTER 13 BANKRUPTCY

Chapter 13 Bankruptcy is also referred to as a "wage earner" plan because in order to file for Chapter 13 protection you must have a reliable source of income so that you can repay all or a portion of your debt,

In Chapter 13 you will pay back a percentage of your unsecured debts, this can range from 1% to 100% depending on your individual situation. Chapter 13  can also stop a foreclosure action and a vehicle repossession and allow you to make up your missed payments through the chapter 13 plan.

If you file for Chapter 13 be prepared to be in the case for a minimum of 3 years and a maximum of 5 years. It will be up to the creditors to file a claim in order to be paid during this case. During this time period you will repay a percentage of your unsecured debts, your secured debts and any missed payments you had on your house or vehicle. At the end you will receive a discharge as to all remaining debt.

Chapter 13 can stop a foreclosure or a repossession of a vehicle.  Once your file for protection under the bankruptcy stay all court proceedings must stop, including foreclosure.  Under Chapter 13 the Trustee would then make the payments you had missed over the next 3 to 5 years within your chapter 13 plan.

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

If you are thinking of bankruptcy, contact our Eastgate, Ohio bankruptcy attorneys today. We offer a free consultation, fair fees and monthly payment plans.

Bankruptcy Advantages

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

Bankruptcy laws afford a debtor with protections, the most significant of which is a fresh start from the harassment of collection efforts by creditors. Once a bankruptcy is filed, collection efforts by creditors stop by virtue of the automatic stay. The purpose of this is to afford the debtor with a discrete period of time to regroup financially and to develop a systematic approach to repayment of debts. The debtor can begin rebuilding credit and start over financially. Filing bankruptcy allows a debtor to get started with the task of rebuilding credit more readily and to undertake that process peacefully.

CHAPTER 13 ADVANTAGES

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. They must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on consumer debts. Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection. Also with chapter 13 it protects someone who co-signed with you on a consumer loan. That person is called a co-debtor in bankruptcy. That protection is extended to your co-debtor as long as you propose to pay the debt in full through your case.

Contact our office today at 513-752-3900, to set up your free consultation with one of our attorney's.

CHAPTER 7 ADVANTAGES

Filing Chapter 7 bankruptcy is a preferred solution of the debtors, due to its fast and effective ways. The fact that it does not require payments over time also makes it highly acceptable. If you have qualified for the Means Test for the State of Ohio then you can look forward to Chapter 7 bankruptcy filing. If you file a Chapter 7 bankruptcy case, it is normally opened and closed within three to six months. You clear out on your debt amount completely when the bankruptcy process is complete. Unlike Chapter 13 bankruptcy you are not required to repay any portion of your debts. You can keep most of your properties intact unless you have pledged the item as collateral for a loan. But all of your debts cannot be discharged. You can discharge most of your debts except for student loans, recent taxes, and unpaid child support. No minimum debt amount is fixed for filing a Chapter 7 bankruptcy plan. The creditors are not applicable to claim on any new property or wages you get hold of after the discharge. The property will be completely owned by you and your creditors cannot exert any further claim on them. 

Under the Chapter 7 process, there is one mandatory appearance before the bankruptcy trustee during the creditor's meeting. The overwhelming majority of cases do not involve court appearances.

Bankruptcy lets you keep most necessities. If you have little to begin with, chances are good you'll be able to keep all or most of your property. 

Bankruptcy help is here. 513-752-3900

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.

Loss of your job got you in financial trouble?

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

Have you lost your job and in over your head? Financial distress can seem like the end of the world. Thanks to a protection offered by federal law, it doesn't have to be. That protection is bankruptcy.

There is no requirement that you have to be employed in order to file for bankruptcy. In fact, job loss is one of the most common reasons people file for bankruptcy. However, being unemployed can still affect the outcome and success of your bankruptcy filing. This depends on whether you are filing a Chapter 7 or Chapter 13 bankruptcy.

A debtor filing for Chapter 7 typically does not have the necessary disposable income to repay their debts. Unlike a Chapter 13 bankruptcy, which requires a debtor to repay their debt, Chapter 7 provides a debtor the opportunity to eliminate their debt.

The most common filings for bankruptcy are chapter 7 and chapter 13. Chapter 7 is a straight bankruptcy, referred to as a liquidation bankruptcy. As many as 65% of consumer bankruptcy filings in the U.S. are chapter 7. 

Some advantages of filing chapter 7 bankruptcy could be, you receive a complete fresh start. After the bankruptcy is discharged the only debts you owe will be for secured assets on which you choose to sign a “Reaffirmation Agreement.” You have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing. Wages you earn and property you acquire after the bankruptcy filing date are yours, not the creditors or bankruptcy court. There is no minimum amount of debt required. Your case is often over and completely discharged in about 3-6 months.

Not all debts can be discharged. Contact our office today to set up your free consultation with one of our Attorneys. You can call us at 513-752-3900.

As soon as you file bankruptcy, an automatic stay takes effect. The automatic stay requires your creditors to stop all collection efforts.

The stay prevents bill collectors from calling you or sending you threatening letters. It requires most lawsuits to collect a debt to be put on hold. Unless and until they get permission from the court to do so, it prevents landlords from starting an eviction and mortgage lenders from pursuing a foreclosure.

Bankruptcy help is here.

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.

Does Credit Card debt have you thinking about Bankruptcy?

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

For many people, credit card debt that is at the point where you can't manage it any longer, is a big factor in their decision to file for Chapter 7 or Chapter 13 bankruptcy. Before you file, you must make sure you understand how Chapter 7 and Chapter 13 bankruptcy handles credit card debt. In most cases, it will be wiped out at the end of your bankruptcy but not always.

Chapter 7 bankruptcy, debtors are usually able to discharge credit card debts. Generally, credit card debts are treated like other unsecured claims in Chapter 7 cases. The Chapter 7 trustee may pay some of your credit card debt, along with other unsecured claims. In most cases, your obligation to pay the balance will be discharged upon successful completion of the case.

Credit card companies are included among your creditors when you file bankruptcy under Chapter 7. Most Chapter 7 bankruptcies are no asset cases. In a no asset case, there is no property in the estate that can be liquidated to raise money to pay creditors. In cases where there are assets, any money that can be raised is paid to creditors in order of priority.

Credit card debts, like most other unsecured obligations, are considered to be non priority claims. It is relatively rare for non priority creditors to receive any payment in Chapter 7 cases. Any payments that can be made are distributed so that each unsecured creditor (including any credit card company) receives the same percentage of its claim usually nothing, or at most pennies on the dollar.

Many people file for Chapter 7 bankruptcy in order to discharge debts and get a fresh start with their financial lives. Most credit card debts are dischargeable through Chapter 7, which means you will not owe them once you complete the bankruptcy.

Chapter 13 bankruptcy is a reorganization bankruptcy. When you file Chapter 13, you propose a repayment plan that repays your creditors over a period of three to five years. Some are paid in full, some in part, and some not at all. This depends on what type of priority bankruptcy law gives the type of debt. Credit cards generally have the lowest priority in a Chapter 13 plan.

Bankruptcy law sorts your debts into different classes. The three main debt classifications are general unsecured debt, priority unsecured debt, and secured debt.

Secured debt includes debts such as car loans and any other loans that are secured by property. A loan is secured by property if you pledged property in exchange for obtaining the loan. If you default on a secured loan, the lender can take the property to satisfy the debt. That's why if you don't make your car payment, the lender will repossess it. If you don't make your house payment, the lender will foreclose. Different rules apply to different secured debts in Chapter 13, but generally, if you want to keep the property that secures the loan, you must pay the loan in full.

Credit card debts are general unsecured debts. General unsecured debts are at the bottom. How much they get paid depends upon a number of factors, but usually Chapter 13 debtors do not have to pay their credit card debts in full. Some credit card debt is secured. If it is, the payment priority will be that of a secured debt.

Running up your credit card balances when you intend to file bankruptcy is a fairly clear case of intent to defraud your creditors. The credit card company can file a non dischargeability complaint in your bankruptcy case, asking the court to declare the debt nondischargeable.

Contact our office today to set up your free consultation with one of our Attorneys. You can call us at 513-752-3900.

Bankruptcy help is here.

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.

Looking to rebuild your credit?

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

CAN BANKRUPTCY HELP MY CREDIT?

Bankruptcy is an option to provide you with relief from your creditors by giving you a fresh start. There are ways that bankruptcy can actually help your credit in the short and long term. This will depend on your credit score, financial circumstances, and other factors. Your credit score is also known as your FICO Score. Like many people, if you carry debt, you probably also have a FICO score. A FICO score is a rating system that predicts how likely you are to pay your debts as agreed upon. It is mostly used by creditors to determine whether you will be a reliable borrower by making the payments on time. High FICO scores mean that you are good at managing your finances. Low FICO scores usually mean that you have been delinquent with credit payments in the past, have high unpaid debt balances, or experienced other problems repaying debt.

HOW BANKRUPTCY AFFECTS CREDIT SCORES

For most people bankruptcy means that your FICO score will drop, at least temporarily. If you have a good credit score, but must file bankruptcy anyway, you will probably suffer the most. That is because the higher your pre-bankruptcy FICO score, the bigger the drop in your score after you file bankruptcy. On the other hand, if you already have a low credit score, bankruptcy won't hurt your FICO score that badly. This could potentially make it easier for you to improve your FICO score post-bankruptcy.

HOW BANKRUPTCY CAN HELP YOU ANYWAY

If you find yourself in a position where you must file bankruptcy, then your FICO score is not as important as the reasons for having to file bankruptcy. Getting a new loan or credit card is not as pressing as, for instance, a pending wage garnishment or mortgage foreclosure. After you have obtained bankruptcy relief, you may find that the bankruptcy may actually help your credit. 

SHORT TERM POSITIVE EFFECTS

Getting rid of delinquent account reports. If your credit report contained late payments and high credit balances, this is where a bankruptcy discharge can serve good. A bankruptcy will essentially wipe those debts clean. This is because debts that are discharged in bankruptcy must no longer be reported as delinquent. Instead, they will typically be reported as discharged or included in your bankruptcy. This could even boost an already low credit score. 

Improving your debt to credit ratio. Bankruptcy may help improve your debt to credit ratio. This ratio is a comparison of your outstanding debt to your available credit balance. The lower your debt compared to your available credit, the higher your potential FICO score. If you have credit accounts with high credit limits, they are normally closed or frozen when you file bankruptcy. If you reaffirm debts with low balances and good credit limits, or obtain new credit accounts after your discharge, this can potentially boost your FICO score. That is because you have little to no outstanding debt compared to available credit limits, which results in a favorable debt to credit ratio.

LONG TERM POSITIVE EFFECTS

By wiping your debt history clean, bankruptcy gives you the opportunity to start over. You have a another chance to get your finances right. If you budget properly and are disciplined with your money, you can lay the foundation for building good credit history. You can increase your credit score over time. This can happen as early as six months to a year after bankruptcy.

 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.