Bankruptcy & The Elderly

We are bankruptcy attorneys located in Middletown, Ohio.  Our main focus of practice for over 27 years has been in Chapter 7 and Chapter 13.

OUR OLDER CITIZENS

Bankruptcy is generally designed to help people who are underwater with debt gain a fresh start.  While that is sounds in principle, there is one group in our society who don’t really need a fresh start, they just need a clean end, and that’s our elderly.  We have a rapidly growing senior citizen population and while many have been able to plan for the future with quality pension and health insurance plans, there are just as many who rely on social security.  Problems really develop when this same group are suddenly hit with demands from creditors on debts they have co-signed on, often for their children and grandchildren.

In most cases, if a senior citizen is collecting social security, then they will most likely travel through the process with no problem, they won’t lose a thing.  Even if they own their home outright the exemption for Ohio is high enough that it will most likely protect their home.

Social security and pension plan payments are exempt from bankruptcy.  When it comes to assets, many of our seniors have little to show for their life’s work and what they do have is often well aged and with little resale value.  These assets are worthless to a bankruptcy trustee since the cost of selling them may well exceed the value earned.

What does concern many welfare workers in this area is the pressure our seniors place on hot_dog_boutique_picture_167077themselves to pay debts when they are really struggling to pay for food and medication.  Many seniors today were raised that bankruptcy is not an option and do not see bankruptcy as a way for a fresh start and view it as a failure.  Many elderly need to realize it’s an option that may allow them to retire with a more comfortable lifestyle.

Contact our office today to see if bankruptcy will be able to help you or your aging parents get a fresh financial start.

Check out our website at www.middletown-bankruptcy.com.

Call your Middletown, Ohio bankruptcy attorney today.  We offer a free consultation, fair fees and monthly payment plans.

Is Bankruptcy the Answer?

We are bankruptcy attorneys located in Middletown, Ohio.  We have been serving the community focusing on chapter 7 and chapter 13 bankruptcy filings for over 27 years.

WHAT IS BANKRUPTCY?

It is a legal procedure which will give debtors federal protection from creditors.  Under the federal 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.

Filing 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 for protection. 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 assets 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 downloadhouse 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 NOT BE DISCHARGED?

Most of your debts can be discharged. Some debts are not able to be discharged. There are certain debts which 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 nondischargeable.

WHAT HAPPENS AFTER BANKRUPTCY?

If you want to have credit, you will be surprised at the amount of credit offers you will receive downloadonce you file for. 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. Continue making your payments on assets that you keep.  Try to make all of your payments on time with no slow pays and keep accounts out of collection.  Follow these rules and your credit will rebuild rapidly.

MORE INFORMATION

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

Bankruptcy Chapter 7 v. Chapter 13

We are bankruptcy attorneys located in Middletown, Ohio.  Our main focus of practice for over 26 years has been in Chapter 7 and Chapter 13 bankruptcy filings.

For most once they decide to file bankruptcy the decision comes down to which Chapter they will be filing.  Both chapters are beneficial in their own way.  Many factors play into which chapter you will file.  Your income and assets are the main considerations.  Many prefer to qualify for Chapter 7 but may not qualify.

BANKRUPTCY TIMELINE

In Ohio a typical Chapter 7 bankruptcy lasts about six months from the day you file until you receive your discharge.  Your actual court date which is call a 341 Meeting of Creditors will be four to six weeks out from your filing date.  For Chapter 13 you will also have a 341 Meeting of Creditors about four to six weeks after your filing date.  Once you file for Chapter 13 expect to be in the case for a period of three to five years as this time period is mandated by federal law.  Once your complete your Chapter 13 you will receive your discharge.

PAY BACK OF DEBTS

In bankruptcy different debts are classified in basically two groups.  Your unsecured debts (credit cards, medical debts, loans) and your secured debts (houses, cars, anything secured by collateral). There is also a sub-category of unsecured loans which are called priority debts, debt-troublesstudent loans and tax debts fall into this category.  If you file for Chapter 7 you will be able to discharge all of your unsecured debts and not have to pay anything back.  Most unsecured debts can be discharged, student loans and most taxes will survive the case.  Any secure debts that you would want to keep (such as your home or vehicle) you would continue to make your payments on and sign a reaffirmation agreement within the case. Chapter 13 is a re-payment plan.  Under this re-payment plan you will pay all of your debts with a single payment to the Chapter 13 Trustee once a month.  Out of this payment the trustee may make your regular house payment.  If you have any back payments on your home they would also make this payment for you.  If there is a vehicle payment involved this will also be made by the trustee. You will pay back a percentage of your unsecured debts.  This percentage is based on several factors and can range from 1 percent to 100 percent.  The debts will be paid in order of priority.  So basically in a Chapter 13 you have one payment a month to the Chapter 13 office and your utilities to pay during the duration of the case.

ASSETS

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

As to your home if you want to qualify for a Chapter 7 you must be current on your mortgage payment to keep your home.  If you file Chapter 7 and are not current on your home the lien holder will require that you get current or they may file for Relief from Stay which once granted they can begin the process of foreclosure.  However, if you are current on your home Chapter 7 is no problem, just continue to make your payments and you may reaffirm the debt in the case is you wish.

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

MORE INFORMATION

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

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

Considering Bankruptcy

We are bankruptcy attorneys located in Middletown, Ohio.  Bankruptcy has been our main focus of practice for over 26 years.

Are you struggling with debt? The phone is ringing off the hook with creditor calls, the mailbox is bankruptcy-attorneyoverflowing with bills.  Is it all getting too much to handle?  You have tried but the struggle is never ending.  It seems as soon as you start to get ahead something else comes up and gets you behind.  Bankruptcy may be the answer to your financial troubles.

OUR OFFICE

At our office we offer a free consultation.  At this free consultation you will be able to sit down with a qualified experienced bankruptcy attorney and discuss your current situation and ask any questions you may have.  The attorney will at this free consultation advise which chapter will be best for you.

There are several chapters of bankruptcy available under the federal bankruptcy code, however, Chapter 7 and Chapter 13 are the most common filings among general consumers.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is also referred to as straight bankruptcy or liquidation bankruptcy.  This chapter is available for most consumers.  Under Chapter 7 Bankruptcy protection you will be able to discharge all of your unsecured debts under the bankruptcy code.  A discharge is a document issued by the federal court which deems your debt non-collectable by creditors.  Once you file for Chapter 7 protection all collection practices by creditors must stop.  This includes but is not limited to phone calls, mail harassment, court proceedings and garnishments.

Chapter 7 is sometimes referred to as a liquidation bankruptcy because the Chapter 7 Trustee may take some of your assets and sell them to pay your debts.  However, most people are happy 8923945-debt-free-green-road-sign-with-dramatic-clouds-sun-rays-and-skyto find out that they are able to keep most of their assets as there are exemptions to protect these assets.  There are cases, however, where you may have equity and have to pay back some to the Trustee.  Most people are happy to pay back this small amount compared with the debt that they are discharging through the bankruptcy.  Call our office today for your free consultation to discuss your individual situation.

In Chapter 7 Bankruptcy you will be able to keep your home and vehicle.  You must however, be current on your payments on these assets if you wish to keep them.  The creditor will have a reaffirmation agreement for you to sign and this will deem the debt non-discharged through the bankruptcy.  This document will also guarantee that the creditor will continue to report your payment history to the credit reporting agencies, thus rebuilding your credit after the bankruptcy filing.

As many as 65% of consumer filings in the US are Chapter 7 Bankruptcy filings.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy also referred to as a wage earner plan you will allow you to retain ownership and possession of all assets that you wish to keep.  But you may also surrender assets through Chapter 13, if you wish.  In Chapter 13 Bankruptcy you must have income to support the case as you will be making monthly payments to the Chapter 13 Trustee and they will be disbursing your funds to your creditors for you.  It is up to the creditor in a Chapter 13 Bankruptcy to file a claim in order to be paid.

Chapter 13 can stop a foreclosure.  If you are in foreclosure and want to save your home you can file a Chapter 13 and stop the foreclosure.  Your mortgage holder cannot object to your bankruptcy homefiling and must file a claim in your case to be paid.  Chapter 13 generally lasts for a three to five year period.  During this time you will be able to make up all your missed payments and the Trustee will disburse your regular house payment.  This is a good thing because at the end of your case the trustee will file a notice with the Court that all payments are current and deems that your mortgage holder cannot come back on you for additional fees incurred while you were under bankruptcy protection.

If you are behind on your vehicle, Chapter 13 can also stop repossession and give you time to make up the missed payments over the three to five year period.

Contact Us

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

Every situation is unique so contact your Middletown, Ohio Bankruptcy Attorney today for your free consultation.

BANKRUPTCY

We are bankruptcy attorneys located in Middletown, Ohio.  Our primary practice is focused on Chapter 7 and Chapter 13 bankruptcy filings.

Are you struggling with debt, looking for a way out of debt.  The feeling can be overwhelming.

Frustrated man in debt.

Worry to check the mail box or answer the phone.  Looking for a way out of debt!  You are not alone most Americans struggle with debt and the struggle is real!  There is no reason to be ashamed, medical debt, divorce, job loss or just bad judgment no matter the reason debt can happen and it does every day to millions of people.  Things can happen to cause debt to get out of control that are usually out of your control but then you must find a way out debt.

SHOULD I CASH IN MY RETIREMENT TO PAY MY DEBT?

The straight up answer here is NO!  This is a bad idea!  You have worked hard and saved up your retirement for your whole life.  Your retirement is just for that, your retirement.  Funds you will need as you grow older and will no longer be  able to run the race everyday like you do now.  Most likely you are currently employed which provides funds for your needs just as your retirement funds will provide for your needs in the future.  If you are already retired then you needs these funds now, these are your funds to provide for your needs, you need these funds, do not cash them in to pay debts.

Bankruptcy may be available for you.   Under the federal code your retirement funds are protected.  You can file for bankruptcy protection and keep your retirement accounts for when they will be needed..when you retire.

WHAT IS BANKRUPTCY?

A federal code set up which will allow a debtor to discharge all of their unsecured debts.  Once a discharge is issued creditors can no longer collect on debts included in the bankruptcy.  You do not have to pay any of these debts and you do not need to report the filing to the IRS as income.  There are two main chapters filed by most consumers which are Chapter 7 and Chapter 13.

CHAPTER 7 

Chapter 7 is the most common bankruptcy filing.  It goes by many names, Chapter 7, straight downloadbankruptcy, simple bankruptcy, liquidation bankruptcy and so forth.  In a Chapter 7 you will be able to discharge all of your unsecured debts.  If you have secured items you would like to keep such as a home or vehicle you will be able to reaffirm on these debts through your case.  Chapter 7 is sometimes referred to as a liquidation bankruptcy because the trustee in a case may liquidate some of your assets, however, most assets are protected under the state exemption levels.

CHAPTER 13

Chapter 13 is designed for those who are over income for Chapter 7 or who are behind on their homes or vehicles.  Chapter 13 is a repayment plan.  Under Chapter 13 you will have three to five years to make up payments you are behind on your home or vehicle.  The trustee will make these payments for your.  You will pay back a percentage of your debts to your unsecured creditors.  You will receive a discharge at the end of your case.

MORE INFORMATION

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

Contact your MIddletown, Ohio bankruptcy attorney to see is bankruptcy is the right decision for your.