Contrary to commonly held beliefs about who files for bankruptcy, the average bankruptcy filer is not a free-spending celebrity or a crook trying to cheat the system, but an ordinary middle-class American. According to an analysis by Jonathan Fisher, a research scholar at the Stanford Center on Poverty and Inequality, “median income for bankruptcy filers is $42,000, which is $6,000 less than the national median.” Many of these individuals are hard working people who are struck by unexpected problems that hurt them financially. People are laid off, hit by major illness and expenses, or have had a death or divorce in their family that changes their financial picture. Debt mounts; they may run up credit card charges in an attempt to meet their financial needs; and they are barraged with harassing calls from creditors and faced with having their wages garnished, vehicles repossessed, and loss of their home. Bankruptcy, a legal way to have many debts forgiven, can put struggling individuals on the road to financial recovery. If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be discharged (forgiven), and allow you to keep your assets and begin to rebuild your life. How do you know if bankruptcy is right for you?The skilled and seasoned Columbus bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that money problems can happen to even the most well-intentioned people. We offer a free consultation to evaluate your financial situation and find the best way to deal with your debt. We can help by looking at your income, your debts and your goals and coming up with a plan that’s best for you. Contact us online or call to set up your free consultation today. A Look at the Average Bankruptcy FilerAccording to Jonathan Fisher’s findings, most bankruptcy filers are:
One of the largest causes of bankruptcy is high medical bills. Even with insurance, high co-pays and uncovered charges can mount up. Another major source of debt is the high cost of education. About 44 million Americans owe nearly $1.4 trillion in student loans. Credit card debt and mortgage debt are other leading causes of bankruptcy. How Bankrutpcy HelpsBankruptcy protection is part of the social insurance system that provides ways for individuals to get relief from unmanageable debt. The most common types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy discharges (eliminates) most unsecured consumer debts and is over in a few months, so you can begin rebuilding credit quickly. While you might have to sell property to help pay off creditors, there are Ohio bankruptcy exemptions that list types of property that cannot be sold. Exemptions can include your home, clothing, cars, pensions, alimony and child support, equipment used for work (like tools) and household furnishings. If you do not own a great deal of property, your possessions may all be exempt, qualifying you for a “no asset” case, and you may be able to keep your home, car and other items from being liquidated. Be aware that exemption laws do not protect all property, all types of debts, or all types of creditors. Some debts, including most taxes and student loans, child support, and alimony payments, are not usually discharged in Chapter 7. Not everyone is eligible for Chapter 7 bankruptcy protection. Your income and debt will be subjected to something called a “means test” to determine whether you qualify. If you are not eligible, filing for Chapter 13 may still be an option. Chapter 13 bankruptcy is a repayment plan, under which you can consolidate payments to repay some or all of your debt affordably over a three- to five-year period and avoid fees and fines. If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged. Contact Us for Help and AdviceThe bankruptcy process is complicated, and there are many papers to file and deadlines to meet. Contact the experienced and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer for help, information, and support. We offer a free consultation where we will evaluate your financial situation, discuss your options, and help you decide on the path to a brighter future that makes sense in your individual case. Delaying can only make your situation worse, so contact us online or call us today for your free consultation so we can determine what debt relief solutions will work best for you. The post A Look at the Average Bankruptcy Filer appeared first on FCW. via Tumblr A Look at the Average Bankruptcy Filer
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If your debts have become more than you can handle, the good news is that bankruptcy, a legal way to have many debts forgiven, can put you on the road to financial recovery. If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be forgiven, and provide a way for you to keep your assets and begin to rebuild your life. However, the bankruptcy process is not simple and can be confusing. There are a number of steps you must follow, and there are some debts that bankruptcy cannot completely eliminate. How do bankruptcies work in Ohio, and how do you know whether bankruptcy is right for you? The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that money problems can happen to even the most hard-working and well-intentioned people. We offer a free consultation to evaluate your financial situation. We can help by looking at your income, your debts and your goals, explaining what you need to know about bankruptcy and coming up with a plan that’s best for you. How Ohio Bankruptcy Works — Understanding the Different TypesAll Ohio bankruptcies are governed by the United States Bankruptcy Code, which provides several ways for individuals to file bankruptcy and outlines how bankruptcies work. The most common types are Chapter 7 and Chapter 13. 1. Chapter 7 BankruptcyIf your income is too low to pay credit card bills, medical bills, utilities, payday loans or personal loans, if there are no cosigners involved, or if you are facing court action by creditors, Chapter 7 may be your best option. Chapter 7 bankruptcy, also known as a “liquidation” bankruptcy, is the most common consumer bankruptcy. It allows you to make a fresh start, enables you to discharge (eliminate) most or all consumer and/or business debts, and it is over in a few months, so you can begin rebuilding credit quickly. If you qualify for Chapter 7, Ohio law provides many exemptions that you can keep, including clothing, cars, equipment used for work, and household furnishings, so you can still meet your basic needs. If you do not have many assets, they may all be exempt. Non-exempt assets will be liquidated by a court-appointed trustee and used to pay off your creditors, and any remaining unsecured debts will be discharged so you no longer have to pay them. Before qualifying for Chapter 7, you are required to take an approved credit counseling course within the six-month period prior to filing. You must also pass an Ohio “means test” to determine whether your average income for the six months before your bankruptcy filing is below the median for the State of Ohio. There are some debts that cannot be discharged in Chapter 7, including:
Federally guaranteed student loans can be discharged only if the bankruptcy court finds they would create a significant “hardship.” Before your Chapter 7 discharge, you must complete an approved “financial management” program and file a form certifying that you did so. You file this after you file your Chapter 7 petition, but no more than 45 days after the bankruptcy court schedules a required meeting of your creditors. If you don’t qualify for Chapter 7, you may still qualify for Chapter 13 bankruptcy. 2. Chapter 13 bankruptcy.Chapter 13 is best for those who don’t qualify for Chapter 7 and who have a steady income, financial problems that are temporary, and a desire to repay some of their debt in order to keep an asset such as a car or a house. With a Chapter 13 bankruptcy, you can consolidate your payments and repay some or all of your debt affordably over a three- to five-year period, while avoiding fees and fines. Payments to creditors are made through a trustee, and during the repayment period you are protected from actions by creditors, including lawsuits, wage garnishments and harassment. If you successfully complete the court-approved payment plan, the remaining debts covered by the plan are discharged. Chapter 13 bankruptcy is best if you owe debts that are not dischargeable under Chapter 7, such as taxes and child support, if you have liens that are larger than the value of the assets securing the debt, if you have years of unfiled taxes, if you are behind on car or house payments, or if your assets are worth more than the available exemptions. Contact us for Help and Guidance on How Bankruptcies WorkThe experienced Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer know how frightening and confusing it can be to be faced with the decision of filing for bankruptcy, much less trying to understand how bankruptcies work in Ohio. We recognize that everyone’s individual situation is different, so we offer a FREE INITIAL CONSULTATION to evaluate your entire financial situation and make sure you are aware of all your options. We will examine your income, your debts and your goals and help you find the best and most affordable path to a brighter financial future. Delaying can only make your situation worse, so take control of your financial future and learn more about how our firm can be of assistance today. Contact us online or call one of our conveniently located office branches for your free consultation so we can determine what financial solutions will work best for you. The post How Bankruptcies Work in Ohio appeared first on FCW. via Tumblr How Bankruptcies Work in Ohio If your bills and debts are becoming overwhelming, you may be tempted by advertisements from debt-settlement companies claiming that they can talk your creditors into settling your unsecured debts for pennies on the dollar. This could be a big mistake. While debt settlement may work, debt-settlement companies are in business to make money, not to help you out. If you are not careful, you could actually worsen your situation and wind up owing more due to added fees and interest charges. It makes much more sense to speak to a debt settlement attorney in Ohio who can examine your individual circumstances. If you decide on debt settlement, your attorney can negotiate the best deal possible, but there may be other debt-relief options that make more sense. The skilled and seasoned Ohio consumer debt lawyers at Fesenmyer Cousino Weinzimmer understand that financial problems can happen to even the most well-intentioned people. We offer a free consultation to evaluate your entire financial situation – your income, your debts and your goals — and find which solutions are right for you. We offer a free consultation, so contact us online or call our offices today. How Debt Settlement WorksDebt settlement is a way to reduce your debts with unsecured creditors, such as those holding medical bills and credit card bills. These creditors may agree to a settlement if you can come up with a lump sum of 40 to 60 percent of your debt, or they may agree to a payment plan for a lesser amount than you are currently paying. Creditors do this because they prefer to settle your debt for less than you owe rather than have you file for bankruptcy, in which case they might not get anything. Getting the best debt settlement possible involves negotiating with your creditors, which an experienced Ohio consumer debt attorney can do for you. Why You Need A Debt Settlement Attorney in OhioThe settlement process is complex and involves complicated laws. Most people are not expert negotiators and rarely get the best deal from their creditors. Debt-settlement companies charge fees, and if you stop making your payments, the total amount you owe will increase due to various added fees and interest charges. They often charge a set-up fee and a contingency fee — a percentage based on the amount you save. If negotiations fail, you will owe the upfront fees in addition to still being in debt. It is in your best interest to hire an attorney to help you decide whether debt settlement is the right choice for you, and, if it is, to negotiate the best deal possible and assist you with all the steps involved. The following are some reasons why it pays to hire an debt settlement attorney in Ohio:
Is Bankruptcy a Better Option?In some situations, filing for bankruptcy can be a better option than debt settlement. Bankruptcy allows you to eliminate or restructure certain debts while under the protection of the federal bankruptcy court. Ohio has an automatic stay that prohibits most creditors from collection activity such as harassing phone calls, lawsuits, garnishments, repossessions, and foreclosures. Your attorney can explain the different types of bankruptcy and how they apply to your situation. Contact Us and Get Help from an Ohio Consumer Debt LawyerThe experienced and compassionate Ohio consumer debt lawyers at Fesenmyer Cousino Weinzimmer know what it is like to struggle with debt and will help you find the right solution. We offer a free initial consultation where we will evaluate your entire financial situation and determine whether debt settlement or another debt-relief plan is the best fit for you. We will make sure you are aware of all your options and will walk you through the process. Delaying can only make things worse, so contact us online or call for your free consultation today so we can determine what debt-relief solutions will work best for you. The post Why You Need a Debt Settlement Attorney in Ohio appeared first on FCW. via Tumblr Why You Need a Debt Settlement Attorney in Ohio When times are tough and you are hit with problems such as unexpected layoffs or major illness, bills rapidly pile up to the point where you may be considering filing for the relief that bankruptcy can bring. You may wonder just how much debt you have to be in to file for Chapter 7. There is no strict answer, because Ohio bankruptcy laws don’t require a certain minimum debt amount to be eligible for bankruptcy. While your debt amount is a significant factor, deciding whether bankruptcy is the right choice for you will depend on additional factors as well. The seasoned and compassionate Ohio debt-relief lawyers at Fesenmyer Cousino Weinzimmer know how to analyze your circumstances and determine whether Chapter 7 is the best way to help you get out from unmanageable debts. Our firm’s Chapter 7 bankruptcy clients are usually able to keep all or nearly all of their assets while eliminating most or all consumer debt. We provide a free, no-obligation consultation and offer professional and supportive representation to protect our clients. We will evaluate your individual situation and help determine whether filing Chapter 7 is right for you. Contact us online or call our offices today to set up your free consultation. How Chapter 7 Bankruptcy Can HelpChapter 7 bankruptcy provides tremendous relief for debtors. If you are eligible, Chapter 7 may discharge (eliminate) unsecured debts, including credit cards, medical bills and installment loans. It stops, prevents or resolves collections, loan deficiencies, repossessions, wage garnishment and civil judgments. It can help you eliminate the bills you cannot afford while allowing you to keep assets such as your car and your house. If your income is too low to pay credit card bills, medical bills, utilities, payday loans or personal loans, Chapter 7 may be the best option. The process is over in a few months, so you can begin rebuilding credit quickly. You might have to sell property to help pay creditors, but there are Ohio bankruptcy exemptions listing types of property that cannot be sold. If your home, car and other items are exempt, you might be able to keep them from being liquidated, and if you do not own much property, your possessions may all be exempt, qualifying you for a “no asset” case. How Much Debt Do I Have to Be In to File Chapter 7?While there is no minimum debt requirement to file for bankruptcy, the amount of debt is an important factor to consider when determining whether bankruptcy is in your best interest. Other factors include:
Why You Need an Ohio Bankruptcy AttorneyEven the simplest bankruptcy cases require completing extensive forms, researching exemption laws, and following all local court rules within time limits. The more complicated your situation, the more you need the help of an attorney. Mistakes can not only be costly — they can result in loss of nonexempt assets, denial of discharge of debt or, even worse, lead to criminal charges for fraud. It makes more sense to have an attorney’s help to ensure that everything is done properly and correctly. Contact Us For HelpBankruptcy is complex, but the seasoned and compassionate attorneys at Fesenmyer Cousino Weinzimmer know the issues and the difficult decisions involved. We will provide you with a personalized case evaluation and counsel regarding debt relief options, including Chapter 7 bankruptcy. We will make sure you are aware of all options and help you decide on the path to a brighter future that makes sense in your individual case. We understand what you are going through and will walk you through the process. Don’t delay. Call Fesenmyer Cousino Weinzimmer online or call our offices today for a free consultation so we can determine what debt relief solutions will work best for you. The post How Much Do You Have to be in Debt to File Chapter 7? appeared first on FCW. via Tumblr How Much Do You Have to be in Debt to File Chapter 7? As Americans grow older, we face increasing challenges, and too many of us are facing a new problem in what should be the “golden years” of retirement — the need to file for bankruptcy. According to an article in The New York Times, citing a study from the Consumer Bankruptcy Project, the rate of people 65 and older filing for bankruptcy has tripled since 1991. From February 2013 to November 2016, there were 3.6 bankruptcy filers per 1,000 people aged 65 to 74; in 1991, there were 1.2. Older Americans also account for an increased share of all filers — 12.2 percent are now 65 or older, up from 2.1 percent in 1991. The situation is troubling, because older people who get into financial trouble have few places to turn, often are dealing with declining health, have difficulty finding jobs, and don’t have enough time to recover and get back on their feet. Filing for bankruptcy becomes their last option. If you are an older individual struggling with debt, there is help available. The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that even the most well-intentioned people can find themselves in a financial hole. We offer a free consultation to evaluate your financial situation and examine your income, debts, and goals. Contact us online or call our offices for your free consultation so we can determine what debt relief solutions will work best for you. Reasons Why Older Americans File BankruptcyThe social safety nets Americans once counted on are shrinking, leaving older people vulnerable to financial disaster. Problems that lead to bankruptcy include:
What Bankruptcy Can DoAs a result of these increased financial burdens, it’s no wonder that struggling seniors turn to bankruptcy. Bankruptcy is a legal way to have many debts forgiven and provide a fresh financial start. The most common types are Chapter 7 and Chapter 13.
Contact Us and Get HelpIf you are a senior and your financial problems have become overwhelming, you should seek legal assistance. Going through bankruptcy on your own still brings the same filing and court fees as using an attorney, and even the simplest bankruptcy cases require completing extensive forms, researching exemption laws, and following all local court rules within certain time limits. Making mistakes or filing incorrectly could result in paying more or having your bankruptcy dismissed without eliminating your debts. The experienced and compassionate Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer can provide a helping hand. We offer a free consultation to evaluate your entire financial situation. We will make sure you are aware of all your options and help you decide on the path to a brighter future that makes sense in your individual case. We understand what you are going through and will handle every phase of the process. Don’t delay. Contact us online or call our offices today to set up your free consultation. The post Why Older Americans are Filing for Bankruptcy appeared first on FCW. via Tumblr Why Older Americans are Filing for Bankruptcy Carrying crushing debt can become unbearable. Bills pile up, and you’re harassed by creditors and may be faced with foreclosure of your house, repossession of your car, utilities being shut off, and garnishment of your wages. You feel overwhelmed and don’t know where to turn. You are not alone. Overall household debt stands at more than $13 trillion, according to the Federal Reserve. That includes $8.8 trillion in mortgages, $1.4 trillion in student loans, $1.2 trillion in car loans and more than $1 trillion in credit card debt. If serious debt is making your life unmanageable, help is available. Consider the relief and fresh start that filing for bankruptcy can bring. Bankruptcy, a legal way to have many debts forgiven, can put you on the road to financial recovery. If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be forgiven, and provide a way for you to keep your assets and begin to rebuild your life. How do you know whether bankruptcy is right for you? The skilled and experienced Columbus bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that financial problems can happen to even the most hard-working and well-intentioned people. We offer a free consultation to evaluate your financial situation. We can help by looking at your income, your debts and your goals and coming up with a debt-relief plan that’s best for you. Delaying can only make your situation worse, so contact us online or call to set up your free consultation today. Understanding Types of BankruptcyThe United States Bankruptcy Code provides several ways for people to file bankruptcy. The most common types, Chapter 7 and Chapter 13, have several similarities and differences. * Chapter 7 bankruptcy is the most common way to file individual bankruptcy. It can discharge (eliminate) most or all consumer debts. If your income is too low to pay credit card bills, medical bills, utilities, payday loans or personal loans, this may be your best option. Chapter 7 is over in a few months, so you can begin rebuilding credit quickly. You might have to sell property to help pay off creditors, but there are Ohio bankruptcy exemptions that list types of property that cannot be sold. Exemptions can include clothing, cars, work equipment, and household furnishings. If you do not own a great deal of property, your possessions may all be exempt, qualifying you for a “no asset” case. Not everyone is eligible for Chapter 7. Your income and debt will be subjected to something called a “means test” to determine whether you qualify. If you are not eligible, filing for Chapter 13 may be an option. * Chapter 13 bankruptcy lets you repay some or all of your debt affordably over a three- to five-year period. This plan is best for those who don’t qualify for Chapter 7, who have a steady income, temporary financial problems and a desire to repay some of the debt in order to keep an asset such as a car or a house. Chapter 13 allows you to consolidate your payments to avoid fees and fines. If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged. Both Chapter 7 and Chapter 13 have an automatic stay provision that stops harassing collection activity. You will still be responsible for certain debts, including child support, spousal support obligations, student loans and most unpaid taxes; but bankruptcy can eliminate credit card debt, medical bills, and unsecured loans, giving you relief that helps you meet remaining obligations. Contact us for Support and GuidanceThe seasoned and compassionate bankruptcy lawyers at Fesenmyer Cousino Weinzimmer are dedicated to helping you through the maze of personal bankruptcy so you can obtain financial freedom and relief from serious debt. We offer a free consultation to evaluate your financial situation, make sure you are aware of all your options and help you decide on the path to a brighter future that makes sense in your individual case. We understand what you are going through and will walk you through the process. Don’t delay. Contact us online or call today for your free consultation so we can determine what debt relief solutions will work best for you. The post For Those in Serious Debt, Bankruptcy is Liberating appeared first on FCW. via Tumblr For Those in Serious Debt, Bankruptcy is Liberating If you are struggling financially and overwhelmed with debts that have become unpayable, you may wish to consider the “fresh start” that bankruptcy can bring. To receive a “fresh start”, you need to know how to file for bankruptcy in Ohio. Bankruptcy, a legal way to have many debts forgiven, can put you on the road to financial recovery. If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be forgiven, and provide a way for you to keep your assets and begin to rebuild your life. Knowing how to file for bankruptcy in Ohio can be overwhelming to individuals already burdened with financial problems, and filing incorrectly can lead to failure of having your debts discharged, so it pays to get legal advice before you file. The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that financial problems can happen to even the most well-intentioned people. We can help by looking at your income, your debts and your goals and coming up with a plan that’s best for you. If you decide to file, we will make sure you take all necessary steps to make sure your bankruptcy is filed correctly, and you receive the relief from debts that you are entitled to. We offer a free consultation, so contact us online or call our offices today. How to File for Bankruptcy in OhioWhen you file for bankruptcy there are certain steps you must follow:
A Closer Look at How to File Bankruptcy1) Understanding Types of BankruptcyThe United States Bankruptcy Code provides different ways for individuals to file bankruptcy. The most common types, Chapter 7 and Chapter 13, have several similarities and differences.
Ohio requires that you pass something called a “means test” to determine whether you qualify for Chapter 7. If you are not eligible for Chapter 7, filing for Chapter 13 may still be an option.
This plan is best for those who don’t qualify for Chapter 7, who have a steady income, temporary financial problems and a desire to repay some of the debt in order to keep an asset such as a car or a house. Plus, the automatic stay provision of Ohio bankruptcy law means that the phone calls and letters from your creditors will stop during this time. If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged. 2) Take a Financial InventoryBefore filing for bankruptcy, you must assemble all of your financial information, keep a file with all documentation, and print out all online records. You will need as much detailed information as possible on:
You should also gather your tax returns for the last two years, deeds to any real estate, titles to cars, and documents for any loans. Run the financial means test calculator. To qualify for Chapter 7, your income must be below the Ohio median for your size household, and your debts and other aspects of your financial situation will be considered. If your income is less than the median, you may be eligible to file for Chapter 7. The median Ohio income changes frequently and you can find the most recent amounts under “Means Testing Information” on the website of the U.S. Trustee at www.justice.gov/ust. 3) Determine how much of your property is exempt.Ohio has a list of exemptions — property you are allowed to keep despite declaring bankruptcy. Some exemptions are:
Exemption figures change regularly, so check the list of Ohio exemptions. 4) Complete Consumer Credit Counseling.You must complete a consumer credit counseling course from an approved agency less than six months before you file your bankruptcy petition. The purpose is not only to help you focus on what caused you to get into financial difficulty in the first place, but to help you determine which kind of bankruptcy is best for you. If you choose to file Chapter 13, counselors will help you understand the payment plan, because payments must begin no later than 30 days after you file your petition. You must provide proof that you have received credit counseling at the time you file your bankruptcy petition. 5) Prepare and assemble your bankruptcy papers and forms.There are 50+ pages of forms detailing current debts, assets, income, and expenses, and your intentions regarding loans secured by collateral. Make copies of all forms. 6) File required forms with the court and pay the required filing fees.These forms, referred to as the schedules, will ask you to describe your current financial status and recent financial transactions, usually for the last two years. In Ohio, the bankruptcy courts are divided into two districts — the Northern District and the Southern District. In the Northern District, there are bankruptcy courts in Toledo, Cleveland, Youngstown, Akron, and Canton. In the Southern District, there are bankruptcy courts in Cincinnati, Columbus, and Dayton. Filing fees vary according to which type of bankruptcy you file. 7) Attend your bankruptcy hearing (341 Meeting).Once your bankruptcy petition has been filed the court will set a hearing date that you have to attend. The Bankruptcy Trustee will review your petition and ask you questions. Your creditors may also attend the hearing and have the option to object to the debt you have with them being discharged. When you file bankruptcy, any creditors whose debt is included in your petition will receive a notice that you have filed and that an automatic stay has been issued so that they can no longer harass you, continue or begin legal proceedings, enter liens against your property, or try to collect on your accounts while your bankruptcy is ongoing. The trustee will make sure you understand the consequences of declaring bankruptcy and the effect of reaffirming a debt. The trustee will also make sure you are not abusing the system by declaring bankruptcy for personal gain. 8) File motions to eliminate liens.During this step, creditors may make objections and you may respond. After creditors have had a chance to review your payment plan, they have 60 to 90 days to submit a formal objection or request to extend the time for objections. Any objections must be addressed and satisfied before the bankruptcy can proceed. Creditors may also decide not to object. If there are no objections, your bankruptcy petition will move forward after the objection period ends. If you are filing Chapter 7, your non-exempt assets will be liquidated, and the trustee will pay your creditors from the proceeds. After this, the bankruptcy judge will issue a discharge order stating that the remainder of your debt has been discharged or wiped out and that creditors cannot continue with attempting collection. If you are filing Chapter 13, if there are no objections to your payment plan, there will be a confirmation hearing held within 45 days of the creditors’ meeting. Once your case has been filed, you will begin making monthly or biweekly payments directly to the trustee, who will then pay your creditors. After your 3- to 5-year payment plan is completed, any remaining debt will be discharged. 9) Take a post-filing Debtor Education course.Once your bankruptcy petition has been filed and you have your case number, you are required to complete a Debtor Education course before you can receive your discharge. The courts want you to learn to manage credit wisely and keep from making the same financial mistakes that lead to repeated bankruptcies, and there are time limits before you can file for bankruptcy a second time. You must send confirmation to the trustee that you have finished your debtor education counseling, or you will not be able to complete the bankruptcy process and have your debts discharged. Contact Us for Help With How to File for Bankruptcy in OhioBecause the bankruptcy process is so complicated and mistakes can lead to not having your debts discharged, it makes sense to take advantage of our free consultation offer. If you file without an attorney, you will be required to complete all the steps on your own. Contact the experienced and compassionate Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer for help, information, and support through the entire bankruptcy filing process. At your initial consultation, we will evaluate your financial situation, discuss your options, and help you decide on the path to a brighter future that makes sense for you. The post How to File Bankruptcy in Ohio appeared first on FCW. via Tumblr How to File Bankruptcy in Ohio People are often confused when it comes to Chapter 7 bankruptcy and taxes, as it is a common belief that bankruptcy cannot eliminate (discharge) tax debt. Fortunately, this is not always the case. While -most taxes are not dischargeable, you may be able to discharge federal, Ohio, and local income tax debts through Chapter 7 — if they meet certain qualifications. If you do not qualify to file Chapter 7, you may be able to discharge some tax debts through Chapter 13 bankruptcy, as well. Bankruptcy, a legal way to have many debts forgiven, can put people struggling with debt and harassed by creditors on the road to financial recovery. Chapter 7 may eliminate unsecured debts, including credit cards, medical bills and installment loans. It stops, prevents or resolves collections, loan deficiencies, repossessions, wage garnishment and civil judgments. And it may eliminate some tax debts. How do you know whether bankruptcy is right for you? The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that mounting debts and tax burdens can overwhelm even the most hard-working and well-intentioned people. We offer a free consultation to evaluate your individual financial situation and find the debt-relief plan that is best for you. Contact us online or call our offices today to set up your free consultation. Overview of Chapter 7 BankruptcyChapter 7 bankruptcy is often the best option if your income is too low to pay credit card bills, medical bills, utilities, payday loans or personal loans. The process is over in a few months, so you can begin rebuilding credit quickly. While you might have to sell property to help pay off creditors, there are Ohio bankruptcy exemptions that list types of property that cannot be sold. Exemptions can include your home, clothing, cars, pensions, alimony and child support, equipment used for work (like tools) and household furnishings. If you do not own a great deal of property, your possessions may all be exempt, qualifying you for a “no asset” case, and you may be able to keep your home, car and other items from being liquidated. Not everyone is eligible for Chapter 7 bankruptcy protection. Your income and debt will be subjected to something called a “means test” to determine whether you qualify. If you are not eligible for Chapter 7, filing for Chapter 13 may still be an option. Chapter 13 provides a payment plan to repay some debts over a three- to five-year period, after which the remaining debts are discharged. Both plans allow for ways to eliminate some tax debts. Tax Debts and BankruptcyIRS, state, and local tax debts may be dischargeable through Chapter 7 bankruptcy if these debts meet certain requirements:
For Chapter 13, income tax debts are treated as non-priority debts and must also stand up to the same tests as those under Chapter 7. Nondischargeable Tax DebtsSome examples of tax debts that are not dischargeable include:
Also, tax debts that arise from unfiled tax returns are not dischargeable in either a Chapter 7 or Chapter 13 bankruptcy.-. If you file for Chapter 7, you will still be responsible for repaying these debts after your discharge. If you file for Chapter 13, the nondischargeable tax that is not paid through the plan, will remain at the end of your case. Contact Us and Get HelpDetermining whether or not tax debts can be discharged is complex, so it pays to get legal assistance. The experienced and compassionate lawyers at Fesenmyer Cousino Weinzimmer are trained to identify these tax issues. We offer a free consultation during which we can examine the facts of your individual situation before filing, to help you make informed and educated decisions. During your consultation, we will evaluate your entire financial situation by looking at your income, your debts and your goals. We will make sure you are aware of all your options and help you decide on the path to a brighter future that makes sense in your case. Delaying can only worsen your situation, so contact us online or call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today to set up your free consultation so we can determine what debt relief solutions will work best for you. The post Chapter 7 Bankruptcy and Taxes appeared first on FCW. via Tumblr Chapter 7 Bankruptcy and Taxes Student loan debt is an ever-increasing problem in the United States and has become the second highest consumer debt category, right behind mortgages. Money owed on student loans has reached $1.5 trillion, and the average student in the Class of 2016 has $37,172 in student loan debt. Ohio is among the worst states for student loan debt, rating No. 5 on financial planning website WalletHub’s list of worst states for college debt. Since many people cannot find a job after graduation with pay high enough to meet expenses and cover their high student loan payments, student loans have become a large part of the financial burden which leads to filing for bankruptcy. It is commonly believed that student loans cannot be discharged in bankruptcy, but fortunately, this is not always true. A knowledgeable bankruptcy lawyer can often find ways for you to obtain relief from at least part of your student loan debt or find resources such as deferments that enable you to get caught up on student loan payments. And filing bankruptcy can make it possible for you to get a fresh financial start by wiping out other debts. The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that while most people took out student loans with good intentions, unexpected financial problems can happen to anyone. We offer a free consultation to evaluate your financial situation. We can help by looking at your income, your student loans and other debts, and your goals and coming up with a plan that’s best for you. How to Get Relief from Student LoansYou can’t get relief unless you make the effort to erase your student loan debt, and most people do not even try. According to a study in the American Bankruptcy Law Journal on student loan discharges, of all the people who filed for bankruptcy in 2007 who had student loans, only an estimated 0.1% attempted to have their college debt discharged. For those who did, 39% got full or partial student loan discharges. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 states that student loans used for the cost of attendance, including tuition, books and indirect costs related to your enrollment, can be discharged in bankruptcy only if repayment of the debt “will impose an undue hardship on you and your dependents.” The U.S. Bankruptcy Code doesn’t define “undue hardship,” so different jurisdictions and judges interpret the standard differently, and your outcome may depend on your location and the individual judge. Proving Undue HardshipTo prove undue hardship, you must file a petition (called an adversary proceeding) to get a determination. To qualify for undue hardship you must meet the “Brunner” test, named after the case that established the standard, (Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987)). Most, but not all, courts use this three-part test to evaluate whether you are able to continue to pay off a debt:
If you can prove undue hardship, your student loan will be completely canceled. Even if you cannot prove undue hardship, filing for bankruptcy can give you some breathing space, as it also automatically protects you from collection actions on all of your debts, at least until the bankruptcy case is resolved or until the creditor gets permission from the court to start collecting again. Some courts have begun to question whether they should use a different standard, and some are already starting to use different tests, since circumstances have changed since 1987 – colleges have become more expensive, and more people are having problems paying their student loans Chapter 13 Bankruptcy and Student LoansEven if you cannot prove undue hardship, you might consider repaying your student loans through a Chapter 13 bankruptcy plan that allows you to repay some or all of your debt affordably over a three- to five-year period. Your plan, not your loan holder, will determine the size of your student loan payments, which may be significantly reduced. Plus, the automatic stay provision of Ohio bankruptcy law means that the phone calls and letters from your creditors will stop during this time. If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged, and you can try to discharge the remainder of your student loan based on undue hardship. If the loan still cannot be discharged, you can continue to repay what is left on your student loan. If you already filed for bankruptcy but did not request a determination of undue hardship, you may reopen your bankruptcy case in order to file this proceeding. Contact Us for a Free ConsultationIf you have questions about your student loan or any other debt, the seasoned and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer offer a free consultation to evaluate your entire financial situation. Even if total discharge is not possible, we can help you explore other options, such as negotiating with the lender to get more favorable terms, and modification or consolidation of the student loan debt. Delaying can only worsen your situation, so contact us online or call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today so we can determine what debt relief solutions will work best for you. The post Can I Declare Bankruptcy on Student Loans? appeared first on FCW. via Tumblr Can I Declare Bankruptcy on Student Loans? Credit cards are one of the easiest, but most expensive, ways to borrow. People who don’t pay them off in a timely fashion or only pay the minimum balance often wind up in situations with interest rates that can reach almost 20 percent leading to debt that snowballs quickly, accumulates, and never gets paid off. According to the American Bankers Association, 43 percent of card holders carry a balance each month, and the Federal Reserve reports that outstanding card debt hit a record $1.023 trillion in November 2017. Rising credit card debt is a leading reason why Americans get into a financial hole and wind up being threatened with foreclosure on their homes. If you have gotten to the point where your credit card and other debt have become overwhelming, you may want to consider filing for bankruptcy. Bankruptcy, a legal way to have many debts forgiven, can eliminate credit card and other unsecured debt, and may still allow you to keep your home. The skilled and compassionate Ohio debt relief attorneys at Fesenmyer Cousino Weinzimmer understand that even the most well-intentioned people can find themselves in a financial hole. We offer a free consultation to evaluate your individual financial situation by looking at your debts, your income, and your goals and coming up with a debt-relief plan that’s best for you. Contact us online or call one of our conveniently located office branches to set up your free consultation and learn how we can help. Bankruptcy in OhioYou cannot file for bankruptcy on credit card debt alone, as the law requires that all your debts be listed in the bankruptcy documents. However, because bankruptcy can eliminate credit card and other unsecured debts, filing will often put you in a better financial position that allows you to keep your home. The most common types of consumer bankruptcy are Chapter 7 and Chapter 13. Once bankruptcy is filed, an automatic stay — an order of the bankruptcy court that prevents creditors from trying to collect while the court oversees the bankruptcy case — goes into effect. This automatic stay will stop foreclosure on your home, as well as stopping lawsuits, garnishments, and harassing collection calls. The stay lasts only until the bankruptcy proceedings are complete, but it will give you some breathing room; and if you can eventually continue to make mortgage payments, you will not lose your home. Chapter 7 or Chapter 13?Chapter 7 bankruptcy will eliminate many debts, including those for credit cards. While your non-exempt property will be sold by a bankruptcy trustee to pay off your debt, Ohio has exemption laws that can protect certain types of property, including your home, clothing, cars, equipment used for work and household furnishings. If all your property is exempt, you may qualify for a “no asset” bankruptcy. You can keep your home, your car, your pension, and more. Chapter 13 bankruptcy allows you to consolidate payments to repay some or all of your debt in affordable monthly payments over a three- to five-year period. You do not have to come up with a lump sum to pay your past-due amounts, which are spread over the life of the Chapter 13 payment plan; once you successfully complete the plan, dischargeable debts covered by the plan are eliminated. If you can continue to make mortgage payments, you can keep your home rather than losing it to foreclosure. While Chapter 7 and Chapter 13 bankruptcy are different, both can allow you to keep your home. Plus, because credit card and other debts are eliminated, making mortgage payments after bankruptcy will be easier. Be aware that exemption laws do not protect all property, a bankruptcy filing does not discharge all types of debts, and there are different classes of creditors that may be able to seize your property. The attorneys at Fesenmyer Cousino Weinzimmer understand each of these distinctions and can provide the best legal advice to protect your assets. Contact Us and Get HelpIf debt is something you can no longer handle, take the first step toward relief by contacting the seasoned and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer. We offer a free initial consultation to evaluate your entire financial situation and determine the best fit for your particular circumstances. We will make sure you are aware of all your options to help you keep your home. We will be there for you and walk you through the process every step of the way. Delaying can only worsen your situation, so contact us online or call one of our conveniently located office branches to set up your free consultation so we can determine what debt relief solutions will work best for you. The post Can I File Bankruptcy on Credit Cards and Keep My House? appeared first on FCW. via Tumblr Can I File Bankruptcy on Credit Cards and Keep My House? |
Bankruptcy is a debt relief remedy established by federal law. Fesenmyer Cousino Weinzimmer attorneys are available to carefully discuss and review your financial situation during your free consultation. For a consultation call us at 614-228-4435. |