This is completely normal; after all, you’re an expert in the way you earn a living (likely, not bankruptcy law.)  Fortunately, you can get good advice from a qualified bankruptcy attorney.

Here are 15 Things You Need to Know about Bankruptcy

1. Nearly 2 million Americans file bankruptcy each year (individuals and married couples.)
2. Most people who file bankruptcy don’t lose assets.
3. If you can afford to make past and future payments on your house and/or car, you can, likely, keep them.
4. The timing of your bankruptcy filing is important.
5. As soon as your bankruptcy filing is accepted by the court, all creditor attempts to collect must stop, immediately.  This means phone calls, letters, wage garnishments, and lawsuits cease.
6. There is more than one way to meet the Chapter 7 means test.  Don’t give up, if you don’t meet the first test.
7. The bankruptcy trustee takes seriously letters from ex-spouses, former friends, and former business partners.  Always be 100% honest on your bankruptcy filings.  State all income; state all debts.
8. You can’t be put in jail for not paying your bills.
9. You can’t lose your bankruptcy case if you follow the rules.
10.   Don’t spend down your retirement before filing bankruptcy.
11.   HOA fees are NOT discharged in bankruptcy.
12.  But for taxes, student loans, alimony, and child support, your unsecured debts are completely discharged in a Chapter 7 bankruptcy.
13. You can renegotiate what you have to pay on your car if your car is worth less than you owe on it.
14.  In Chapter 13 bankruptcy, contracts are renegotiated so you get more favorable terms.
15. Bankruptcy is a Constitutional right.

Where to Get Help

Consult with a qualified attorney when considering bankruptcy or if you have any questions about bankruptcy.  Bankruptcy is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and helping people like you.

We focus our practice on bankruptcy law and you can reach us at 513-793-6555 or Thomasjr@geygan.com.

We will gently walk you through the process, answer your questions, analyze your case, and aggressively fight for your legal rights.

Your next step is to contact our Ohio bankruptcy lawyers.  We look forward to hearing from you. If you would like more information about bankruptcy please fill out this form below and we will email you additional information related to filing bankruptcy in Ohio.

The Timing of Your Bankruptcy Filing Counts

Will you receive your tax refund before or after you file bankruptcy? Timing is important in your bankruptcy case and must be fully analyzed by a qualified bankruptcy attorney.

Timing matters for many bankruptcy issues such as:

· Keeping your tax return (as we discuss more below)

· Creditor harassment

· Garnishments

· Pending Liens

· Foreclosure proceedings

· Exemptions

· Repayment of loans to loved ones

· Lawsuits

· Qualifying for bankruptcy

Filing Bankruptcy after You Have Your Tax Return

If you file for bankruptcy after you’ve received your tax refund, your bankruptcy attorney can show you how to protect it through the purchase of exempt assets.

Exempt assets include a certain amount of equity in your house, car, jewelry, tools, and personal items. You can put your tax return into these exempt assets to protect it; exemptions all have set maximum levels that can be protected, so be careful not to exceed those levels.

Filing Bankruptcy before You Have Your Tax Refund

If you file bankruptcy before you have your tax refund, the bankruptcy trustee may attach it. The trustee may also attach any funds you’ve pre-paid or over-paid in the current tax year.

Where to Get Help Knowing When to File Bankruptcy

Bankruptcy, and the timing of filing, is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and helping people like you. We focus our practice on bankruptcy law and help people just like you. You can reach us at 513-793-6555, Thomasjr@geygan.com or by filling out the form below.

We will gently walk you through the bankruptcy process, answer your questions, analyze your case, and aggressively fight for your legal rights. We look forward to your call or email.

If you can make future payments and you’re current with your mortgage, surrender is not necessary, even if you file bankruptcy.  Many people go through bankruptcy and keep their house; others don’t.  Whether you keep your house or not depends upon whether you can make the mortgage payments.

Is Surrender the Same as Foreclosure?

Surrender is similar to, but not the same as, foreclosure.  Foreclosure is outside the bankruptcy process; whereas, surrender may be part of the bankruptcy process.  In addition, the financial consequences of surrender versus foreclosure are likely huge.

Can’t I Just Move Out of My House?

Neither moving out of your house nor filing bankruptcy takes your name off the deed.  Even if you move out, file bankruptcy, and stop making payments, you still own the house, until it’s surrendered.

Surrendering is a legal procedure which takes your name off the deed and puts the lender’s name on the deed.  Only then can the lender sell the property to recoup the money loaned to you.

How Surrender Works

• You file bankruptcy.  When the Bankruptcy Court accepts your petition, it issues an automatic “stay.” 

• The mortgage holder will file a “Motion for Relief from Stay,” so it can move forward with taking back your house.

• Three weeks later (or longer), the mortgage holder will receive an “Order Lifting the Automatic Stay” from the court.

• The mortgage holder must then give you 90 days notice of its intent to take your house. 

Why Should I Surrender My House?

Often clients ask why they should surrender their house and not just wait for the mortgage holder to foreclose.  The benefit to surrender, which is part of the bankruptcy process, is that you don’t have to pay the deficiency.

The deficiency is the difference between what you owe on the house and what the mortgage holder received when it sold the property.  In today’s economy, this is likely thousands and thousands of dollars.  On the other hand, if the mortgage holder forecloses on your property, you still owe this difference.

Where Do I Get Help Surrendering My House?

Surrendering your house and bankruptcy are specialized areas of law; be sure your attorney focuses his or her practice on bankruptcy.  We focus our practice on bankruptcy law and help people just like you.  You can reach us at 513-793-6555 or Thomasjr@geygan.com. 

We will gently walk you through how to surrender your house so you don’t owe a deficiency and stress is reduced, to the full extent possible.  We look forward to your call or email.

 If you’re like most small business owners, you need your business’ future income to make your fresh start a success.  It may surprise you to know that a qualified bankruptcy attorney may advise you to take a vacation before your business files bankruptcy, instead of keeping your shoulder to the grindstone. 

Why?  It seems counterintuitive.  After all, if you’re contemplating bankruptcy, you need all the income you can get.

Here’s why.  Any income that is owed to you, when you file bankruptcy, will be taken by the bankruptcy trustee and will be given to your creditors.  So, don’t create excess income.   Instead, let any income pay fixed expenses such salaries, rent, insurance, mortgage, equipment leases, and memberships. 

Wait until after you filed bankruptcy to generate income.  You need that income to make a go of it, after bankruptcy.  Here’s how it works.

As part of your small business bankruptcy petition, you must provide details on all business assets, accounts receivables, and unbilled work in progress.  The bankruptcy trustee will try to collect monies from accounts receivables using a demand letter; demand letters are successful in collecting monies already owed to you.  The trustee gives the money to your creditors.   (The trustee will also try to collect unbilled work in progress; collecting for unbilled work isn’t usually successful until the work has been completed.) 

Don’t be afraid to take a break; if your business keeps functioning as is, you’ll lose accounts receivables to your creditors; this means that you won’t have that income to keep your business going when you come out of bankruptcy. 

If you notify your clients ahead of time, they are likely to understand.  Explain that because of the current economic situation, your business needs to reorganize.  Further explain that their work will get done and give them a date when it will be completed.  Set appropriate expectations.

Your qualified small business bankruptcy lawyers can give you exact timing of work stoppage and explain how to use any income that comes in before filing bankruptcy, how to communicate with your clients, and how to use bankruptcy’s fresh start to have a successful future.

Where Do I Get Help Filing Bankruptcy?

Bankruptcy is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy.  We focus our practice on bankruptcy law and help people just like you.  You can reach us at 513-793-6555 or Thomasjr@geygan.com. 

We will gently walk you through the bankruptcy process, answer your questions, analyze your case, and aggressively fight for your legal rights.  We look forward to your call or email.

Although an individual can file Chapter 11, it’s the part of the Bankruptcy Code that is most often used for corporate or partnership reorganization.  This means that the company filing for bankruptcy intends to stay in business, keep operating, and pay creditors over time. 

American Airlines, American Eagle, and all subsidiaries will continue to operate business as usual in spite of (or, perhaps, thanks to) bankruptcy proceedings.  This means that your airline tickets are still valid and will be honored.  Flight schedules are to remain normal.

In addition, the airline has announced that AAdvantage members who have earned frequent flyer miles will maintain those miles.  They will not be lost in the bankruptcy proceedings.

American Airlines is not alone in filing for Chapter 11 bankruptcy protection.  In the past, Delta, U.S. Airways, United, and Northwest have all filed.

If you need protection and a “moment” to compose yourself and your finances, a Chapter 13 reorganization bankruptcy may be right for you.  Like American Airlines, you can still keep your financial life going and not lose your assets.

Instead, an automatic stay is issued when your Chapter 13 bankruptcy petition is accepted.  This means that creditors must stop harassing you, trying to collect the debt.  You, your bankruptcy attorney, and your creditors have the opportunity to renegotiate contracts, including interest rates, the amount of principal due, and the time line for payments. 

The goal is to get everything in alignment so that you can pay off your debts and remain functioning.  However, you must qualify to file Chapter 13.  You have to have sufficient income to pay off your debts within 3 to 5 years and you must be under a certain debt limit. 

Where to Get Help Filing Bankruptcy; Call Geygan & Geygan

If you need financial protection from creditors and you’re considering filing for bankruptcy, it is important to discuss your situation with a qualified bankruptcy attorney.  With the help of a professional, you can better understand your options and the laws related to bankruptcy. 

We focus our practice on bankruptcy law and help people just like you.  You can reach us at 513-793-6555 or Thomasjr@geygan.com.  We will gently walk you through the bankruptcy process, answer your questions, analyze your case, and aggressively fight for your legal rights.  We look forward to your call or email.