Tuesday, May 26, 2015

Bankruptcy & Divorce

We are bankruptcy attorneys we have offices located in Eastgate, OH, Middletown, Ohio and Centerville/Dayton, 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
FREE CONSULTATION
Contact our office today in Eastgate, Ohio your free consultation to see if bankruptcy will give you the financial relief you are looking for.
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Monday, May 18, 2015

Is Bankruptcy The Answer?

We are bankruptcy attorneys we have offices located in Eastgate, Ohio, Middletown, Ohio and Centerville/Dayton, Ohio.  We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.
WHAT IS BANKRUPTCY?
Bankruptcy is a legal procedure which will give debtors federal protection from creditors.  Under the bankruptcy code all of your debts will be discharged and give you a fresh financial start.
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 home. 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, however, most consumers are usually happy to learn they will be able to keep most of their assets through the bankruptcy exemptions.
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 debts, 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 your individual 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 this varies, you should make an appointment for your free consultation to discuss your individual situation.
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 nondischargable.
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
FREE CONSULTATION
Contact your Southern Ohio bankruptcy attorney today for your free consultation to see if bankruptcy will give you the financial relief you are looking for.
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Tuesday, May 12, 2015

IRS DEBT & 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
There is a common misconception that income taxes are never dischargeable in bankruptcy. In fact, you can discharge your back federal, state, and local income taxes in Chapter 7, Chapter 13, and Chapter 11. Penalties and interest are also dischargeable. Determining which back taxes are dischargeable can be a little complex. However, it is possible to discharge significant income tax debt in bankruptcy, if your tax debt fits within the following rules:
The 3 Year, 2 Year, and 240 Day Rules
The Bankruptcy code sets out specific time periods that determine if you can discharge your taxes, often called the 3-year, 2-year, and 240-day rules (or the 3-2-240 rules). Under these rules, you can discharge taxes that came due 3 years before filing for bankruptcy, as long as it has been at least 2 years since you filed the tax forms and 240 days since the taxes were assessed. These rules are often misunderstood. However, the important thing to understand is that you must meet the requirements of all three rules to discharge your taxes.
1. The 3-Year Rule. This rule states that to discharge your back income taxes, they must become due at least three years before you file for bankruptcy. Bankruptcy Code §507(a)(8)(A)(i). Typically, your federal and most state income taxes become due on or around April 15th of each year. In most cases, it is simply a matter of adding three years to this due date to determine the earliest date you can file for bankruptcy and still discharge your taxes.
Example: Joe’s 2012 federal income taxes are due on April 15, 2013. If Joe owes taxes for that year and wants to discharge them, the earliest he can file for bankruptcy is April 15, 2016 (April 15, 2013, plus 3 years).
Regardless of the initial due date, if you file for and receive an extension of time in which to file your taxes, the due date falls on the day the extension expires.
Example: If Joe in the example above obtains an extension until October 15, 2013, his tax due date is October 15th, not April 15th. Therefore, he must wait until October 15, 2016 to file for bankruptcy, if he wishes to discharge these taxes.
2. The 2-Year Rule. Under the 2-year rule, your income tax returns must have been filed at least two years before filing your bankruptcy petition. This requirement allows you to discharge your taxes, even if you filed your tax forms late, as long as you file them at least two years before filing for bankruptcy. §523(a)(1)(b)(ii).
Example: Jill’s income taxes were due on April 15, 2013. Jill did not get an extension. However, she did not get around to filing her tax forms until June 1, 2014. If Jill wants to discharge her 2012 taxes, she cannot file for bankruptcy until June 1, 2016 (two years from the date she filed her taxes AND more than three years from the date the taxes were due).
What if you did not file? If you did not file an income tax return in a given tax year, any taxes assessed by the IRS for that year are not dischargeable. §523(a)(1)(b)(i). I sometimes see clients whose taxes would have been dischargeable, if only they had filed their tax forms. If their tax debt is significant, I may advise them to go ahead and file the tax forms, then wait to file for bankruptcy.
Quick Point: If the IRS files a return on your behalf, it is not considered a filed return for the purposes of this rule. You must still file a tax form for that year.
3. The 240-Day Rule. Taxes must be assessed at least 240 days before you file for bankruptcy under this rule or not assessed at all. As a practical matter, the date of assessment is typically on or near the date you filed your income tax form (assuming the IRS and you agree on the amount of taxes owed). However, if you file a correction or a change results from an IRS audit, the assessment date may be substantially later. §507 (a)(8)(A)(ii).
If you are in a dispute with the IRS regarding how much you owe and plan to file for bankruptcy, you should inform your bankruptcy lawyer of the dispute. A tax dispute can impact the assessment date.
Quick Note: If the back taxes are an issue, it may be necessary to order an IRS “account transcript” (sometimes called a “literal transcript”) for the tax years in question. The account transcript typically includes the assessment date. Note that this is not the same as a “tax return transcript”. You can order an account transcript from the IRS over the phone or online, or using IRS Form 4506T.  
Other actions can add additional time to some or all of the 3-2-240 time requirements, including (a) making an offer in compromise, (b) having filed for bankruptcy previously, or (3) obtaining a taxpayer assistance order. §507(a)(8)(A)(i). However, simply entering into a payment arrangement with the IRS does not toll the statute of limitations.
Other Issues
Tax Evasion and Fraud. If a taxpayer willfully evades taxes or commits tax fraud, the taxes involved are not dischargeable. §523(a)(1)(C). However, the Bankruptcy Code means deliberate tax evasion, not an honest mistake.
Penalties and Interest. Penalties and interest assessed by a taxing authority are dischargeable, along with the taxes. In other words, if the taxes are dischargeable, the penalties and interest attached to them are dischargeable as well.
Tax Liens. Discharging income taxes in bankruptcy does not remove a tax lien. You can certainly file for bankruptcy with a tax lien, and the underlying debt will be discharged, if you meet the requirements of the 3-2-240 rules. However, the lien against property you acquired before bankruptcy still stands.
MORE INFORMATION
At our office we will offer a free consultation where you can sit down with one of our attorneys and discuss your individual situation.
Call your Southern, Ohio bankruptcy attorney today to discuss your individual situation.

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Wednesday, May 6, 2015

BANKRUPTCY MEETING OF CREDITORS - NO NEED TO WORRY

We are bankruptcy attorneys we have offices located in Eastgate, Ohio, Middletown, Ohio and now Dayton/Centerville, Ohio.  We specialize in Chapter 7 and Chapter 13 Bankruptcy filings.
DO I HAVE TO GO TO COURT FOR BANKRUPTCY?
This is one of the most commonly asked questions that we receive in our office, will I have to go to court and appear before a judge?  In most bankruptcy cases the answer is yes, but not in front of a judge but before a trustee at a meeting called the "meeting of creditors".  The primary purpose of this meeting is to give the bankruptcy trustee an opportunity to review you petition and have you confirm under oath the information you provided in your schedules.
Knowing what to expect at the hearing can make the process go smoother and help to ease that feeling of anxiety.
WHO WILL ATTEND THE MEETING OF CREDITORS?
Usually, the only people attending the meeting of creditors are the trustee, your attorney and you.  Many people are worried that their creditors will come to this hearing and harass them.  Although your creditors will get notice of your meeting of creditors they usually do not attend.  If they happen to appear your attorney will be with you to make sure they do not do anything inappropriate.
THE SETTING
For Chapter 7 and Chapter 13 debtors living in Hamilton County, Clermont County, Brown County, Highland County and Butler County, Ohio their meeting of creditors will be held in downtown Cincinnati.  For debtors living in northern counties such as Warren County their meeting of creditors will be held in Dayton, Ohio.  The setting is an open format where you will sit with your attorney at a table across from the trustee.  Other debtors may be in the room and able to hear your testimony, but do not worry about that, they are all going through the same process as you and will not judge.
This meeting is less formal than going before a judge.  You will want to dress nice, but a suit and tie are not required.
AFTER THE MEETING OF CREDITORS
After your meeting of creditors you will need to complete a second credit counseling session.  Once that is complete you are basically done with what you need to do and will at that point just be waiting for your discharge.  Your discharge is typically issued approximately 120 days after your case is filed.  You are then debt free and able to start your fresh financial life.  Just remember the key to rebuilding your  credit is to pay any debt that you reaffirmed on time and try not to have debts go to collection.  Before you know you will have re-built your credit.
MORE INFORMATION
FREE CONSULTATION
Contact your Southern Ohio bankruptcy lawyer today for your free consultation.  We offer a free consultation, fair fees and monthly payment plans. 

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