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Cincinnati Bankruptcy Legal Blog

Consider the risks surrounding informal debt resolution

When a person finds he or she is overwhelmed with debt, then he or she may begin looking in every direction to find some relief. Of course, both Chapter 7 and Chapter 13 bankruptcies offer significant flexibility for many consumers to repay debt as well as discharge it. However, many creditors are willing to consider alternative repayment options that do not include an actual bankruptcy. If you face serious debt, you may be able to negotiate repayment and discharge of the debt for pennies on the dollar, but be sure to keep your self protected if you pursue this option.

Many creditors are willing to consider informal debt resolution known as "loan workouts." Under such an arrangement, a debtor would not enter into a legal bankruptcy, but would instead simply get the creditor to agree to a certain amended payment plan or reduced payoff amount. This may simplify the process and offer the debtor freedom from the debt with incurring the consequences of a bankruptcy.

Bankruptcy doesn't necessarily prohibit you from obtaining credit

If you are constantly dealing with overwhelming amounts of debt, you might be suffering a lesser quality of life in the process. Substantial monetary obligations can leave you struggling to keep up with monthly expenses, and if the problem persists, you could be in search of some much-needed financial relief.

While exploring the available outlets for relief, you could be wondering if bankruptcy is a viable option. However, you might have some reservations about a similar decision and wish to know if filing for bankruptcy will inhibit your ability to obtain additional lines of credit in the future.

Can my landlord evict me during my bankruptcy?

If you rent your living space rather than own it, it is important to understand your options and rights as a tenant when you consider bankruptcy. Depending on many factors in your rental history and your financial needs, you may need to take very specific actions to receive all the benefits a bankruptcy offers.

Bankruptcy can help you get back on your feet, but it requires those who use it to follow specific requirements and guidelines to enjoy the full strength of its benefits. This means that those who use bankruptcy improperly or without professional guidance often create greater problems for themselves than the difficulties that brought them to bankruptcy in the first place.

What can you do when threatened with repossession?

Many Ohio consumers have at least some debt, but you may find that you are in a position in which you can no longer effectively manage the debt that you have. There are many unpleasant consequences to having debt, unpaid bills and owed balances, and one of these is the threat of repossession of your vehicle. Depending on the types of debt you owe, it is possible that a creditor could move to take possession of your personal vehicle.

It seems outrageous that a person could simply walk onto your property and take your car, but it is possible. However, no matter how in-debt you are or the details of your current financial situation, you could make the threat of repossession stop. By filing for bankruptcy, you can make repossession efforts halt, as well as deal with your debt once and for all.

Have you been sued over a debt?

Few events have the power to ruin your whole week like learning that another party is suing you over a debt. Depending on the nature of the claim, you may want consider a number of responses, as well as remedies to the debt as a whole.

First, it is important to establish the validity of the claim. If, for instance, you do not actually owe the debt that the other party wishes to collect, then you face the task of demonstrating that the claim itself is invalid. However, if the debt is valid, you may still have more options than you expect.

Bankruptcy law often favors the individual debtor

Bankruptcy is an extremely important part of our financial laws, allowing for a hard reset in instances when circumstances or unwise choices lead an individual to unbearable financial strain. The possibility of bankruptcy itself affects the way that interests rates for various types of lending get calculated, as lenders all have to account for bankruptcy when considering risk of the loan. When a person or private organization finds themselves sufficiently sideways financially, bankruptcy allows a pressure release valve. However, bankruptcy does have its limits.

Currently, the law does not provide many clean options for some institutions to seek bankruptcy. Only a decade ago, the country's financial systems nearly came apart as the housing markets collapsed and other elements of the economy dove sharply. Banks, as central players in the entire financial industry, cause huge disruptions if they seek bankruptcy.

Study suggests racial disparity in bankruptcy filings

Bankruptcy is one of those complex legal issues that is often deeply personal. In fact, a recent report published by ProPublica examines how different people groups participate in bankruptcy, suggesting that some aspects of the process may vary depending on the racial or socioeconomic background of an individual who files.

According to the report, a significant number of African American debtors choose to file for Chapter 13 debt reorganization over Chapter 7 liquidation. Interestingly, significantly higher numbers of these debtors do not complete the repayment plan, compared to other populations.

What if I qualify for both Chapters 7 and 13?

When it comes to consumer bankruptcy, the law offers a few different options. In almost all cases, an individual qualifies for either Chapter 7 or Chapter 13 bankruptcy. However, in some cases, an individual may qualify for both types of bankruptcy, which can create some interesting opportunities. If you believe you may qualify for both Chapter 7 and Chapter 13, you have some very important things to consider.

First, it is important to fully understand all of your options in this scenario. Not only must you make sure that you do in fact qualify for both Chapters 7 and 13, you want to make sure that you fully understand the differences between the two so that you can make the most of your bankruptcy procedure.

Is your financial bubble about to burst?

If you follow the news, you have probably heard financial pundits expressing fear that the economy is heading for another crash in the near future. This crash could potentially cause the closing of more businesses, leading to a ripple effect of stock market plummets, real estate slowdowns and mass unemployment. Perhaps this alarm is only one more thing to add to your already full plate of worries.

Approaching a national economic crisis may be the last thing you need if you are overwhelmed with debt. Like many, you may be trying to prepare for such an eventuality — at the same time attempting to relieve the stress of your own financial situation — by paying down your credit cards and other debt. However, are you making any of the common mistakes Ohio consumers often make when tackling debt?

What is fraud in bankruptcy?

Part of executing a successful bankruptcy is avoiding bankruptcy fraud. If you're already in a difficult enough position to consider bankruptcy, you may also fall prey to the temptation to try and manipulate the system for your own gain. This is not wise, and may end up placing you in a bigger mess than the one that justifies the bankruptcy in the first place.

Bankruptcy fraud can take a number of forms, including

  • Intentionally filing inaccurate forms during the bankruptcy process
  • Hiding assets to avoid losing them in the bankruptcy
  • Filing for bankruptcy in multiple jurisdictions simultaneously
  • Bribing a trustee for special treatment