Cleveland Bankruptcy Lawyer Blog

Ohio is not the only state experiencing a significant rise in the volume of bankruptcy filings in 2008. According to statistics recently released by the Administrative Office of the U.S. Courts, there were 967,831 bankruptcy cases filed during the twelve-month period ending June 30, 2008. This is a 28.9 percent increase over the prior twelve months. Filings in the Northern District of Ohio (which includes Akron, Canton, Cleveland, Toledo and Youngstown) rose 18.3 percent over the same twelve-month reporting period, with filings rising from 24,577 during the last period to 29,066 during the current period. Given the continuation of the housing crisis, high unemployment and the uncertainty facing the auto industry in our neighboring State of Michigan (which will also impact Ohio due to the many automotive manufacturing jobs here), it is likely this number will continue to climb for the foreseeable future. If you are one of the many that need help and think you might benefit from a fresh start through bankruptcy, you should contact an attorney to discuss your options.

Posted by Justin M. Smith | Permalink | Email This Post

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy

Bookmark:

If you live in Ohio and are planning on filing for bankruptcy then a credit report can help you in several ways. Some of these include:

1. Ensuring that all creditors are listed and that the creditor names, addresses, type of debt, balances due and account numbers are accurate. This is important so that all creditors are given proper notice and all debts are accurately listed so they are covered by your bankruptcy filing.

2. A credit report may help us find creditors that you have overlooked or forgotten about. In order for a debt to be discharged, it must be properly listed, so it is important that we are aware of all of your debts.

3. Credit reports can alert our firm to judgments or pending lawsuits against you that need to be addressed and that you may not be aware of.

4. Credit reports can also alert us to liens against your property for which we may need to seek lien avoidance in order to protect your property.

5. The credit report could alert us to co-signers on some of your debts, which are important to list in your bankruptcy.

6. If you are married, then we might find items on your credit report that you are unaware of and the report will also help us determine if you should file individually or jointly with your spouse.

7. We may find out about debts that were incurred by a prior spouse, possibly without your knowledge.

8. The credit report may alert us to mistakes on your report and you can then take action to correct the mistakes.

9. The credit report often provides information on the collection agencies representing creditors for debt collection. This allows us to notify the collection agencies of the bankruptcy so that collection efforts stop.

10. If the Internal Revenue Service has a tax lien on your property, the credit report will alert us so that it can be dealt with properly.

11. Knowing what is on your credit report can help you take steps to improve your credit and get back on track to a better credit rating for important purchases after your debts are discharged.

Our law firm can provide Clients with a three bureau credit report that includes all information for the last ten years and is specifically prepared for use in preparation for bankruptcy filing. Our firm will provide you with a copy of the report for your review. To learn more about how a credit report can help you in bankruptcy, contact an attorney now.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Consumer Credit & Credit Reporting

Bookmark:

A commonly asked question about bankruptcy is how long will it affect a debtor’s credit report. A bankruptcy filing will generally be reported on your credit report for seven to ten years. A Chapter 13 (repayment plan) will usually be reported for seven years, while a Chapter 7 (fresh start) will usually be reported for ten years. However, the actual length of time depends somewhat on the individual consumer credit reporting agency.

Your credit score will drop when the bankruptcy is first reported and then will gradually improve over time once you have received your discharge and as potential creditors begin to view you as someone with little or no unsecured debt (i.e., credit cards) that cannot file bankruptcy again for a while, rather then someone with a lot of debt that might file bankruptcy at any time.

You should also be aware that the bankruptcy court does not have any influence on your credit report and does not report any information directly to the credit bureaus.

After filing bankruptcy and receiving a discharge it is a good idea to obtain a credit report to make sure that the bankruptcy has been properly reported and that your debts are showing the proper status and/or have been removed. If your credit report has errors or discharged debts have not been removed, your bankruptcy attorney should be able to help you get your report corrected or guide you in what steps to take.

Under a recent federal law you are entitled to one free credit report per year from each of the three consumer credit reporting agencies. Each of the bureaus may have different information so you should check all three and correct any inaccuracies.

To get your free credit report you can write or call:

Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
1(877) 322-8228

You can also contact any of the credit bureaus directly by clicking on the links below or calling the number listed:

Visit Equifax or call 1(800) 685-1111
Visit Experian or call 1(888) 397-3742
Visit TransUnion or call 1(800) 916-8800

Contact a bankruptcy attorney to learn more about how a bankruptcy may help you and how it will affect your credit.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Consumer Credit & Credit Reporting

Bookmark:

Ohio Senate Bill 281 (“SB 281”) will become law in Ohio on September 30, 2008. This is good news for those in Ohio seeking bankruptcy protection. The most important aspect of SB 281 is that it increases several exemptions available to those filing for bankruptcy. What this means is that SB 281 increases the dollar value of certain property that an Ohio resident filing for bankruptcy may exempt from their creditors. Two of the most significant changes are large increases to the primary residence and automobile exemptions:

The exemption for the debtor’s property used as their primary residence increases from $5,000 (current law) to $20,200 (under SB 281).

The exemption for one automobile increases from $1,000 (current law) to $3,225 (under SB 281).

Ohio Senate Bill 281 also includes other increases to exemptions for recoveries for personal injuries, household items and more. If you are considering bankruptcy, you should contact an attorney to learn more about Senate Bill 281 and how it could help you keep more of your assets in bankruptcy.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy

Bookmark:

If you live in Cleveland, Akron or Youngstown and find yourself considering bankruptcy, then you are certainly not alone. Bankruptcy filings in Northeast Ohio are on the rise and at their highest level since the surge just before the new BACPA law went into effect in October of 2005.
National Public Radio, WCPN 90.3 FM, reported that filings in the first six months of 2008 were nearly three times as high as the same period in 2007. Filings in Cleveland were the highest, followed by Akron and then Youngstown.

There are many reasons for this. For one, many homeowners are finding that they can no longer tap into the equity in their homes or, worse yet, their home is worth less than they owe on their mortgage. The job market in Ohio is also bleak and many companies are reducing employee hours and overtime to cut costs in the poor economy. Gas and food prices have also been rising steadily. Now the recent stock market collapse has made matters worse and threatens the retirement and financial security of many Ohio families.

If, like many in Ohio, you are struggling in these hard times, then bankruptcy may help you get back on track. Click here to learn how bankruptcy might help you.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy

Bookmark:

Many Ohioans face the same conundrum ...if I can't pay my bills, then how can I afford to pay the attorney and filing fee to go bankrupt? Once you have resolved to file bankruptcy, then you may be able to stop making payments to some or all of your creditors. This will leave funds available to pay for your bankruptcy instead of using the funds to pay debts that will be discharged upon completion of your bankruptcy. Of course, you should consult with an attorney before you stop making any payments to determine if you can stop making payments and which creditors you must continue to pay.

The legal fee charged will depend on the nature and complexity of your case and you can usually get a quote by phone in your initial consultation with an attorney. There will also be a filing fee which is set by the Bankruptcy Court. In the Northern District of Ohio, the Chapter 7 filing fee is currently $299.00 (see Northern District of Ohio Bankruptcy Fee Chart for other fees).

In some cases you may be able to borrow funds through a small loan from a family member. However, if you do this you must be completely honest about the reason you are borrowing the money since they will become your creditor and the loan must be disclosed in your bankruptcy.

I do not suggest or advise that you incur additional debt from credit cards or an institutional lender for the purpose of filing bankruptcy and for this reason our firm cannot accept credit cards for bankruptcy payments.

If you expect to receive a tax refund, you could use the funds to pay for your bankruptcy and begin your new financial start rather then spending the money to catch-up on bills only to fall behind again and repeat the cycle.

A last resort may be to withdraw funds from or borrow against your retirement account such as an IRA or 401(k). Save this is a last resort because you may face steep penalties for withdrawal. However, you can usually exempt retirement funds from creditors in bankruptcy and, therefore, you may be better off to use a small portion of your retirement funds to pay for bankruptcy and discharge your debts rather then depleting your retirement funds in an attempt to pay for bankruptcy. See Ohio Exemptions: Bankruptcy May Save Your Retirement Fund for more on this topic.

As you can see, there are several options that may work to bring debt relief within your reach. Talk to an attorney to find out which option will work for you.

Posted by Justin M. Smith | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy , Chapter 7 Bankruptcy

Bookmark: