Is your car underwater? Do you owe more on your car loan than your car is worth? If so, consult with a qualified bankruptcy attorney to determine whether the redemption process is a good fit for you.

Redemption

During the redemption process, you pay off your car loan, but at a discount. Then, your car is either owned free and clear or refinanced under new and favorable contract terms.

Your pay off amount or your new loan is based on the fair market value of the car, not what you owe. For example, if your car is now worth $15,000, but you owe $22,000, the redemption value would be $15,000. Redemption saves you $7,000 in principal plus applicable interest on that amount.

Redemption versus Reaffirmation

During the reaffirmation process, you reaffirm the original car loan. You say, “Yes, I’ll pay that old loan; and, “Yes,” I want to keep my car.” For example, if you owe $30,000 on your car loan, you say “Yes, I’ll pay the remaining $30,000 and keep my car.”

On the other hand, during redemption, you pay a discounted amount of the original loan or you negotiate a new contract with terms more in your favor. More favorable terms may be a lower interest rate and/or a reduced amount of principal due.

Paying Off the Redemption Value of the Original Car Loan

You can pay off the original car loan (up to the fair market value):

• With your own cash.
• With cash from the sale of your personal or real property. (Sometimes non-exempt assets are sold and converted into exempt assets such as equity in a car, up to a certain value.)
• with case from a exempt IRA or 401K
• With a cash gift from a relative.
• With a redemption loan. (Usually high interest rate.)

Where Do I Get Help with Redemption?

If you want to keep your car, even though you’re filing bankruptcy, seek counsel from a qualified bankruptcy attorney. Be sure your attorney focuses his or her practice on bankruptcy and has experience with the bankruptcy car redemption process.

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 to save your car during bankruptcy and determine whether redemption is a good fit for your individual circumstance is to call or email our office. We look forward to hearing from you.

If you are from Southern Ohio and are interested in more information about how we may be able to help you please fill out this form below.

Geygan & Geygan, Ltd. is a Debt Relief Agency because we help people live without debt through various means including bankruptcy

Being sued, under any conditions, is one of the scariest experiences ever; and, some cynics say that if you haven’t been sued yet, you haven’t lived long enough. If you haven’t paid your credit card bills and haven’t yet filed bankruptcy, your credit card company has the right to sue you. As if all the phone calls and demand letters weren’t bad enough!

What Happens When Your Credit Card Company Sues You

If your credit card company sues you, you have four choices. You can:

1. File bankruptcy to stop the lawsuit,
2. Hire an attorney and defend against the lawsuit, or
3. Ignore the lawsuit
4. Pay off the debt

What Happens if You File Bankruptcy?

As soon as you file bankruptcy (and the bankruptcy petition is accepted by the court) the credit card company must stop trying to sue you.

In fact, the court issues an “automatic stay” and all collection attempts must stop. This includes lawsuits; phone calls; phone calls to neighbors, relatives, friends, and work; letters; and garnishments.

When your bankruptcy is complete, credit card bills are forgiven, completely discharged.

What Happens if You Hire an Attorney and Defend Against the Lawsuit?

You and your attorney would have to prove that the credit card bills are in someway fraudulent (i.e. not really your bills.) In most cases, this defense is inappropriate.

If you cannot successfully defend the lawsuit, the court will allow the credit card company to garnish your wages and/or bank account. This means that the credit card company gets paid before you do.

In addition, a lien could be put on your house or any other real estate you own.

What Happens if You Ignore the Lawsuit?

If you don’t hire an attorney defend against the lawsuit, the same thing will happen as if you had defended, but unsuccessfully. The court will allow garnishments of your wages and/or bank account and a lien may be put on your real estate.

Where to Get Qualified Legal 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 dealing with credit card companies; 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, protect your assets, and aggressively fight for your legal rights.

If you are from Southern Ohio and are interested in more information about how we may be able to help you please fill out this form below.

Geygan & Geygan, Ltd. is a Debt Relief Agency because we help people live without debt through various means including bankruptcy

It’s that time of year. W2s will soon be mailed out and the need to get organized to file taxes starts nagging in the back of our minds. If you’re contemplating bankruptcy or already have filed, you’re likely wondering if you get to keep your tax refund. After all, that refund, no matter how big or small, would help with a lot of bills right about now; right?

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.

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We know that surrendering your house is a painful topic; but, it may be necessary and could be a big relief to be out from under huge mortgage payments.  If you cannot pay past, current, and future mortgage payments, it’s likely in your best interest to surrender your house to the lender during the bankruptcy process. 

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.