Chapter 7

Can bankruptcy help me to eliminate a deficiency judgment after foreclosure?

Losing your home or vehicle to foreclosure or repossession can be devastating, and being stuck with a deficiency judgment makes it all the more difficult.  Anyone who finds themselves unable to make payments on their home or vehicle could face seizure of your property by the bank or loan holder.  If the bank cannot sell your home or car for the amount you owe, you could be liable for the remaining balance, known as a deficiency judgment.  The good news is that you may be able to eliminate your deficiency judgment through Read more . . .

Can I eliminate my debts in a Chapter 7 bankruptcy?

Gambling debts are easy to accrue.  Perhaps you like to play poker or craps, or you may enjoy betting on horses.  No matter your gambling preference, you likely understand that sometimes you win, and sometimes you lose.  Often, in an attempt to get back on top, you will end up borrowing significant sums to keep on gambling.  When you cannot repay these debts, you may find yourself facing collection calls, repossession of your car, or even foreclosure of your home.
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What kind of credit counseling will I need to complete before filing for bankruptcy?

If you are burdened by oppressive debt, bankruptcy may be the tool you need to start a fresh financial life.  In most cases, Chapter 7 filers will need to complete credit counseling within 180 days before filing for bankruptcy.  You will also need to complete an educational course on debt management before your debts can be discharged in Chapter 7 bankruptcy.  Our Read more . . .

If I am married, is it better to file individually or jointly in Ohio?

Married couples in Ohio have an important decision to make when it comes to filing for Chapter 7 bankruptcy.  Filers can elect to file either jointly or individually, and this decision can impact the family’s finances.  Whether you should file a joint or single petition will depend on several factors, including the types of property you hold, the amount and nature of your debt, and whether your property is separate or community property.  Our Read more . . .

How might filing for bankruptcy help me to escape from debt?

If you are one of the nearly 800,000 Americans burdened by considerable debt, bankruptcy may offer you the escape you need.  Each year, hundreds of thousands of Americans make the decision to file for Chapter 7 bankruptcy in order to free themselves from debt.  Often, the choice to file comes when an individual can no longer handle the harassing phone calls or cannot continue to cope with the struggle to pay outstanding bills.  Our Ohio Chapter 7 bankruptcy lawyers explore how bankruptcy might save you from debt and stress below.

1. Reason #1:  The Automatic Stay

   One of the ways in which filing for bankruptcy may instantly help you financially is the automatic stay.
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Do I qualify to file for Chapter 7 bankruptcy?

Chapter 7 bankruptcy can provide a lifeline for Americans struggling with overwhelming debt. However, in order to seek some of the relief that a Chapter 7 bankruptcy can offer, you must meet a stringent “means test.”  The means test is designed to identify which bankruptcy filers are truly unable to repay their debts.  Anyone considering the possibility of filing for Chapter 7 should consult with an Read more . . .

What property can I keep in a Chapter 7 bankruptcy?

Millions of Americans will elect to pursue a Chapter 7 bankruptcy in the coming year in order to free themselves from crushing debt.  The good news for potential Chapter 7 filers is that some or all of your property may be protected from liquidation during bankruptcy under Ohio’s exemption laws.    Exemptions allow you to shield certain property from your creditors, such as your personal home and car.  Our Read more . . .

What steps can I take to rebuild my credit after a Chapter 7 bankruptcy?

If you are considering filing for Chapter 7 bankruptcy, but concerned about your credit score, we have good news for you—by taking some simple steps, you can start rebuilding your credit immediately after declaring bankruptcy.  You can rapidly return your credit score to its pre-bankruptcy level, and build even stronger credit than before.  Chances are, if you are researching bankruptcy, your credit score may already be suffering.  Late bill payments, non-payments, and foreclosures or repossessions can have a significant impact on your credit score.  While declaring bankruptcy will further damage your score in the short-term, it may the tool you need to eliminate your debt and begin building strong credit.
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Could declaring Chapter 7 bankruptcy improve my financial situation?

A recent report by SmartAsset, a financial technology company, ranks residents in Lima, Ohio among the savviest at handling debt.  In creating its rankings, SmartAsset considered credit scores, average personal loan debt, mortgage foreclosure rates, and credit utilization among residents in various cities across the country.  This interesting study provides a unique look at the financial state of individuals across Ohio and could serve as an incentive for those who are struggling financially to develop a positive solution to their financial woes. 

Lima ranked second for most debt savvy in Ohio and 126^th nationally.  Cincinnati came in first in the state, while Toledo came in third, followed by Columbus, Cleveland, and Dayton.
Read more . . .

When can a tax debt be discharged in personal bankruptcy?

For those struggling with debt, bankruptcy may be the best option for relief. Although the idea of a fresh start is tempting, some will warn that not all debts are dischargeable in personal bankruptcy. Some of these nondischargeable debts are domestic support debts, student loan debts and tax debts. While this is generally the case, it is not completely impossible to discharge tax debts.

Federal Tax Debts

If you are seeking to discharge tax debts, Chapter 7 bankruptcy is the best option because it allows tax debts to be discharged under certain circumstances. The only federal tax debts that can be discharged are income tax debts and specific requirements must be met in order for this to happen. Fraud must not be present for a tax debt to be discharged.The tax debt must also be at least three years old, meaning that the return was due at least three years ago. In addition, the tax return must have been filed at least two years prior to the filing of bankruptcy. Finally, the assessed debt must have been at least 240 days old prior to the bankruptcy filing or have not been assessed at all at the time of filing. If all of these conditions are met, the bankruptcy court will consider eliminating the tax debt.

State Tax Debts

The State of Ohio also discharges tax debts under certain circumstances that are similar to the federal requirements.The requirements include that there be no fraud or tax evasion present, that the debt is at least three years old, that the tax return was filed at least two years prior to the bankruptcy filing and that the assessed debt is at least 240 days old at the time of filing.

While it is difficult to discharge tax debts in a personal bankruptcy proceeding, it not impossible.  You should contact a skilled tax attorney to find out what your options are.

Will my co-signer’s bankruptcy negatively affect me?

Perhaps you are, or have been, in this situation. Here is the nightmare scenario: You are signing for a loan, and you have a co-signer, as is sometimes required. Years later, though you have been diligently making your payments as they come due, your loan provider declares you in default. The institution will no longer accept any payments from you or provide any information about the account. The reason given is bankruptcy. You panic; you know you haven’t declared bankruptcy. So what is the problem?

Perhaps the cause of the default status on the loan is that the loan servicer has learned that your co-signer has declared bankruptcy. While it is commonplace for a loan servicer to call an entire loan due if the borrower declares bankruptcy, it is generally not proper to call an entire loan due because a cosigner has declared bankruptcy. This is true of Chapter 13. For the purposes of Chapter 7 and Chapter 11, however, it can depend.

One thing you can do on your own is monitor your credit. This is a proper course of action no matter what your financial situation. You can request your free credit report and look for any reported default. Requesting your free credit report is easy. You can visit annualcreditreport.com to get one free credit report every year from each of the credit bureaus. Be careful, because there are many imitation websites out there that look similar to the real ones.

If you find a default on a report that is due to a co-signer's financial problem, you can file a complaint with the credit bureau to have the default removed from your report. It is important to diligently monitor your reports on a regular basis to protect yourself, hopefully becoming aware of such a situation before it becomes unmanageable.

It is also beneficial to consult with an experienced bankruptcy attorney in your area. This is especially true when your case involves Chapter 7 or Chapter 11 bankruptcy. The laws covering this issue differ depending on which jurisdiction’s laws apply in your situation, and can, therefore, be more complicated to resolve.