Founding partner, Christian A. Keeping your house Many of my clients who file Chapter 13 bankruptcy own their own homes. Maybe you change jobs or you get transferred or divorced. In fact, this is one of the major reasons why people will file Chapter You should be able to get car loans at interest rates that are good and in 3 to 4 years you should be able to qualify for a real estate mortgage, provided that you make enough money to qualify. However, it is only illegal if you know that you will not have the funds available in your account when you write that check.
← What are the Top 10 Reasons a Person in Ohio Would File Bankruptcy? Can I file Bankruptcy on payday loans in Ohio? Posted on January 20, by DavidBadnell January 20, Why could bankruptcy be the right choice for you in ? For many people, the start of the new year is the chance to start over and to change the paths of onlinecamadult.gq /can-i-file-bankruptcy-on-payday-loans-in-ohio. An attorney at our firm can review your situation and provide guidance on the legal steps you can take, as well as those to avoid when planning to file bankruptcy. Free Consultation With a Lawyer Call for a free initial consultation about discharging payday loans in Ohio and onlinecamadult.gq://onlinecamadult.gq /onlinecamadult.gq · In most cases, you can discharge a payday loan in Chapter 7 bankruptcy. This is because if you owe money to a payday lender, that debt is generally treated like that of any other unsecured creditor in your bankruptcy. And if you file a Chapter 13 bankruptcy, then the payday lender will be treated onlinecamadult.gq
Payday Loans in Bankruptcy: The Bottom Line
With Chapter 13, it is possible to extend the time within which you must pay off this contract by up to five years. Of course, you still have to pay the total amount due and may be difficult to obtain financing a Chapter 13 but it is possible and we have done this on several occasions. Therefore, if you are selling a house on land contract later on you are entitled to receive money because of a land contract — the money that you would receive on a land contract could be lost in a Chapter 7.
Therefore, you might want to consider filing a chapter 13, which would give you more options to deal with the contract than are available in a chapter 7. Credit unions deserve special mention. Credit unions provide car loans, sometimes mortgage loans, credit cards, personal loans and frequently the credit union is the only banking institution that families may use. The difficulty that sometimes arises with a credit union when you file a Chapter 7 bankruptcy is the concept of cross collateralization.
So if you have a car loan, credit card, and a personal loan, then all of these loans are generally going to be secured by your car. So, if you get behind on your credit card payment — surprise! I only missed my credit card payment! My car payment is current! The credit union then explains, often for the first time, that the credit card is secured by the car, personal loan is secured by the car, and if any of these payments become late they have the right to take money out of your bank account, checking, savings, without warning and repossess the car.
And, they frequently do all of this at the same time causing you to bounce checks and have to pay repossession fees.
Cross-collateralization frequently causes problems in a Chapter 7 bankruptcy. This is because often you will have a credit card, a personal loan, and the car that you want to keep in a bankruptcy but you want to discharge with no payment the credit card and personal loan while keeping the car.
The credit union will often not agree to this. In fact, credit unions almost never agree to this. The credit union will not agree to allow you to keep the car, unless you also agree to pay back the balance on the credit card and personal loan. Often the amount owed on the credit card personal loan and car loan far far exceed the value of the car. Chapter 13 offers you a great way to deal with the problem of cross-collateralization. So, for example, if you have an automobile loan, a credit card, a personal loan with a credit union, you can actually keep the car and only pay the credit union the value of the car.
Often the total amount owed to the credit union for car loan, credit card and personal loan far exceed the value of the car. In a Chapter 7, you have to agree to pay the entire amount owed to the credit union if you want to keep the car. In Chapter 13 — this is not the case.
If you have a cosigner, typically a family member, you, and your co-signer need to understand that the cosigner has only limited protection in a chapter 13 bankruptcy, in most cases. If you are keeping the collateral on a secured debt cosigned by someone, they are still liable for a portion of the debt which is discharged in your chapter This can be a complex problem and one best left to a very experienced chapter 13 bankruptcy attorney. Sometime you are the cosigner for a debt that is being paid by someone else.
For example, you may have cosigned for a child who needed a cosigner for a car and the child is paying for and driving the car. There are special plan provisions we use to take care of these situations. They are not uncommon but must be properly handled so everything goes smoothly and the cosigner is not affected.
Cosigners are required to be listed in your bankruptcy and will be notified by the bankruptcy court. Past-due utilities are discharged in chapter These are unsecured debts and are discharged just like a medical bill or credit card. Sometimes the utility company will make you pay a security deposit just as if you are a new customer. If you have a security deposit on file when you file the bankruptcy, the utility is permitted to keep that security deposit and apply it to the balance that you owe when you file.
Sometimes your utilities are not behind, but yet the utility company may still discharge the unpaid balance that you owe on the date of filing. This is not done in every case but technically the utility company is correct in doing this. For example, if your utility bill is due on the 30th and you file a bankruptcy on the 15th, approximate one half of your monthly utility bill would actually be dischargeable in bankruptcy.
Generally, student loans are not discharged in bankruptcy. This is true of both federal and private student loans. It is technically possible to discharge student loans in bankruptcy but it is very difficult. You essentially have to show that you cannot now and probably never will be able to in the foreseeable future pay all or a significant portion of your student loan debt. The way I like to explain the difficulty involved in discharging student loans in bankruptcy is like this: The reason is because you were able to walk into the courtroom to make the argument in the first place.
Student loans are guaranteed by the Government. Essentially you are suing the United States of America and the success rate for these kinds of cases is very low. Sometimes we have to file Chapter 13 just to obtain protection from these kinds of student loan creditors for three to five years, hoping that your income will increase and that the combination of increased income and discharge of other debt will put you in a position where you will be able to make payments on the non-dischargeable private student loans.
In some chapter 13 cases, we have situations where the majority of the debt someone has is student loan debt, not discharged, but also considerable credit card and medical debt.
In these cases, chapter 13 provides a very effective way to pay what you can afford, most of the money goes to the student loans, which you cannot discharge, a smaller percentage will go to pay the credit card and medical bills. What is left unpaid on the student loans at the end of the plan is still there at the end of the chapter 13, but the balance owed on the medical bills and credit card debt is gone forever.
Any car debts are paid in full, and then you are usually in a better position to get into a payment plan on the balance left on your student loans. Rent to own debts are dischargeable in bankruptcy. However the contracts for these rent to own generally require that the property be returned to the rent to own creditor if you discharge the debt. These are generally very bad deals for consumers and I almost universally advise against reaffirming or keeping rent to own debt.
In these limited situations we generally will use a special plan provision in the chapter 13 bankruptcy to keep the the rent to own property and continue to pay until the contract is completed.
Tax refunds have limited protection in a Chapter 13 bankruptcy. The amount of the tax refund that is subject to the bankruptcy is determined by the date the case is filed. It is not determined by the date you get a refund. And, tax refunds get examined each year in a chapter 13, since the plans run for 3 to 5 years. So, it makes sense to adjust your withholding to minimize the refund, and that way you will get to keep it. And this is true. In fact, in those situations where there is value in property that would be a problem in chapter 7, filing a chapter 13 is just the thing to solve this problem.
You get to pay a reduced amount to compensate the creditors for the property you keep, and you get to pay the reduced amount over 3 to 5 years, at no interest. Most of the stuff that anybody owns has very little, if any, practical resale value. The test is what is the resale value in its current used condition. Therefore, it is almost always the case that everything that we own is fully protected in a bankruptcy.
Some property is not protected in bankruptcy. For example, if you have stocks and bonds, they generally are not going to be protected. A common example of this is employee stocks. Another situation that frequently causes problems for people is when, as part of estate planning for parents, real estate is put into their names. The equity is totally unprotected if the son chooses to file Chapter 7 bankruptcy. This is definitely one of them.
This is a situation that is difficult to deal with and requires extensive planning and order to get the best result. There are some things that can be done to keep property that would otherwise be lost. This is called exemption planning and it is perfectly appropriate.
Exemption planning is the process of taking assets that would otherwise be lost in a Chapter 7 and converting them into assets that are protected and therefore will not be lost.
Depending on the time of year and the age of the client, we might want to take that money and purchase private IRAs. Particularly towards the end of the year and the husband and wife both maximize their IRA funding in December and then in the following year they do it again they can effectively convert money which would be lost in Chapter 7 bankruptcy in two protected IRA which would not be lost and bankruptcy.
There are some exceptions to this rule. Generally, your retirement account will be through your employer and these are almost always protected. Occasionally I see retirement accounts that are not protected. These are retirement accounts that are in name only and not actual retirement accounts.
So for example if you are putting aside money in a mutual fund and your intent is to use this mutual fund for retirement at a future date, you may think of it as a retirement fund because that is the use for which you have set this fund. However, mutual funds are sometimes not protected retirement accounts.
So although you may think of this account as a retirement account — but is not legally protected and would be subject to being taken by the trustee if you file Chapter 7 bankruptcy.
Also, retirement accounts that are inherited are not protected according to a recent court ruling. First of all, you will probably not go to a court hearing. Bankruptcy meetings are generally held a meeting room in front of a trustee, not a judge.
When you get to the hearing stage it is probably too late to fix any problems that you may have. The work that needs to be done right is always done before the hearing. The last thing anybody wants is a surprise at the meeting. Sadly, I see this happen all the time. As it turns out, the attorney did not ask enough questions of his client and the client, in all fairness, thought he was telling the whole story when he told his attorney that a particular account was from a personal injury.
The problem in the case was that the personal injury was not from the client. The personal injury was from his mother and the client had inherited it because the mother has had passed away.
I share this story with you to prove a point. I have many checklists which cover dozens of items. We check all of our cases and recheck and double-check everything to make sure that we know everything we need to know in order to make sure our clients are protected.
In fact, sometimes we go overboard, I think, but it never hurts to be over-prepared and it never pays to be underprepared. If you want to file Chapter 7 bankruptcy you need to select your attorney carefully. Very little can be done to fix problems that turn up after the case is filed. The damage, once done, is normally not reversible. You deserve a fresh start, a real financial recovery.
You want a successful outcome, you need financial reorganization. Bankruptcy is a complex specialty area of the wall. Your attorney should ideally be a board certified specialist. They say bankruptcy is a fresh start, and I agree. We will all agree that you need to finish what you start.
How does your attorney help you out after the bankruptcy? These non-attorney designations and the Board certification which is recognized by the Ohio Supreme Court, means that I do much more than just file bankruptcy. I assist my clients in rebuilding their credit. Unfortunately, there is sometimes truth to that statement. You can do better. I found that by following a specific course of action after Chapter 7 bankruptcy is filed, I can generally help my clients to achieve credit scores a and higher, clean up their credit report, so that they are able to buy cars at decent interest rates and even purchase houses only a few years after their bankruptcy discharge.
Creditors often fail to update information on your credit report after you file Chapter 7 bankruptcy. Legally, you do not owe these debts, but it appears on your credit report anyway, sometimes, as if you did still owe it. Creditors often take the position that they are not doing anything wrong because they are not reporting that you owe the debt.
Sometimes people want to use credit repair companies like Lexington Law or Bradley Allen law to clean up their credit report after bankruptcy and help them recover their credit. Often times, I read that a shotgun approach is used to dispute everything on a credit report in hopes that will do the trick.
I prefer to use a scalpel, not a shotgun, and individually analyze every single credit report carefully. Then, I only dispute the items that are both incorrect and hurting my clients. In fact, careful examination of many credit reports reveals that some errors are actually favorable to your credit score. Of course, it takes more time to individually analyze a credit report than it does to just dispute everything on it all at once. But the results are much better if you take the time to do it right.
That depends on the approach that you take after your bankruptcy discharge, of course. You have to use credit properly in order to improve your credit score. Going after too much credit too quickly, and using it improperly, will also hurt your credit. What you need is the right approach. If you follow my approach, you should be recovered from your bankruptcy after about one year.
You should be able to get car loans at interest rates that are good and in 3 to 4 years you should be able to qualify for a real estate mortgage, provided that you make enough money to qualify. In other words, the bankruptcy will not hold you back. Chapter 7 is a very powerful tool to obtain a financial reorganization. But even if you qualify for Chapter 7, it may not be the best solution for you because Chapter 13 bankruptcy offers more flexibility and more options and better results in many cases than a Chapter 7.
Much of the information that you will find on the Internet when you look up Chapter 7 bankruptcy is not helpful and even misleading. Even truthful information is not helpful in many cases because the application of information cannot be figured out simply by Internet research.
You really need to talk to a certified specialist who has decades of experience solving the kind of problem that you are trying to solve. How to know if Chapter 13 Bankruptcy is right for you. Who files Chapter 13? A lot more people should be filing chapter 13 than realize it. Sometimes people enter into financial There are many situations where I find that people who qualify for Chapter 7 bankruptcy are much better off in many ways by filing a Chapter 13 bankruptcy. And if that turns out to be a Chapter 13 bankruptcy, then I will support you for the full five years and beyond to help you recover your credit afterwards Do you qualify for Chapter 13 Bankruptcy?
Medical bills For a video of this topic, go to Discharge Medical Bills in Bankruptcy Often, medical bills are the main reason for filing Chapter 13 bankruptcy.
Credit Cards and Personal Loans The most common kind of debt discharged in a Chapter 13 bankruptcy is credit card debt. And the interest rate will be lowered to 4. Title Loans By loans are legal in Ohio. And, the interest rate will be changed to 4. Either way, Chapter 13 is a very effective tool to use against title loans Payday Loans Payday loans are dischargeable in Chapter 13 bankruptcy. Will they take my car?
The good news is that nobody has to lose their car in a bankruptcy. Cramdown of cars in chapter When can you pay less for the car than you owe on it? Apartment leases, do you want to stay or go? Keeping your house Many of my clients who file Chapter 13 bankruptcy own their own homes. Credit unions Credit unions deserve special mention. You even take it directly from my account! Expletives deleted The credit union then explains, often for the first time, that the credit card is secured by the car, personal loan is secured by the car, and if any of these payments become late they have the right to take money out of your bank account, checking, savings, without warning and repossess the car.
Cosigners in Chapter 13 Bankruptcy If you have a cosigner, typically a family member, you, and your co-signer need to understand that the cosigner has only limited protection in a chapter 13 bankruptcy, in most cases. Discharge Utilities in Bankruptcy Past-due utilities are discharged in chapter Student loans are generally not discharged in bankruptcy Generally, student loans are not discharged in bankruptcy.
In Chapter 13 bankruptcies, that period could be as long as 5 years. In that sense, student loans are treated like all other unsecured debts. However, whether student loans are discharged at the end of the bankruptcy is a more complicated issue. It is very difficult, but not impossible, to discharge student loans in bankruptcy. Student loan discharge in Dayton, Ohio, is very difficult. In order to discharge the student debt, you will need to file what is called an adversary proceeding.
The issue will be litigated in the bankruptcy court, costing time and money. Most bankruptcy attorneys offer free consultations, where you can get more information about the treatment of your student loans in bankruptcy. There is more student loan debt then there is credit card debt in this country. So, this is a common question for the person contemplating bankruptcy. It is interesting that you discuss the automatic stay and how it applies to student loan debt because people seem to only be concered with the end result.