Main Navigation
Law Office of

Goering & Goering, LLC

Call for a free consultation
with one of our lawyers 513-621-0912859-353-0380

Our practice areas

Cincinnati Bankruptcy Legal Blog

Improving credit after a bankruptcy

After you file for bankruptcy, you may worry that you'll never have good credit again. Fortunately, this does not have to be true, if you take proactive steps to improve your credit. A bankruptcy will certainly hurt your credit in the short term, but the damage does not have to last forever. With time and careful, consistent work, you can improve your credit score after a bankruptcy.

Over time, the damages to your credit score fade away. However, if you do not take special care to improve your credit and practice responsible spending, you may create new damage and find it difficult to raise your credit.

What qualifies as creditor harassment?

Contact from creditors is just one of the many consequences of overwhelming debt. You know that when you fall behind on your payments, it is normal to receive phone calls and deal with bills and late notices that come in the mail, but there are limits to what creditors can do. Even when in debt, you do not have to put up with certain types of harassing behaviors from debt collectors.

When Ohio creditors step over the line, you do not have to put up with it. In fact, you can move to protect yourself against illegal treatment. Additionally, you may find that by filing bankruptcy, you have a viable way to deal with your debt, also effectively silencing creditors in the process.

Can I choose the bankruptcy I want?

If you're considering a bankruptcy, it can feel overwhelming. This is a reasonable response to overwhelming debt, but not a helpful way to move forward. For many people, simply choosing a type of bankruptcy is a stumbling block in the path to a financial clean slate. For private individuals, Chapter 7 and Chapter 13 bankruptcies both offer financial relief, but do so in very different ways. Depending on the nature of your debt and other factors in your financial life, you may qualify for either or both. So how does a person choose between them?

There is no "right" bankruptcy. Bankruptcy is not a thing with a value judgment like that, it is a function of the law that whole intends to offer relief without judgment, in fact. However, it is highly probable that your circumstances indicate you should favor one over the other. Of course, understanding which one is best for you takes time and a nuanced understanding of the law and your own financial life.

Discharging tax debt through Chapter 7

If you're hoping to use a Chapter 7 bankruptcy to discharge tax debt, there's good news and complicated news. The good news is that discharging tax debt is possible through a Chapter 7 bankruptcy (or a Chapter 13 bankruptcy, to a lesser extent). The complicated news is that the matter is, well, complicated. While some types of tax debt are dischargeable, not all tax debt is dischargeable, and certain actions by the Internal Revenue Service (IRS) can place additional restrictions on how you liquidate assets.

In order to meet the qualifications for discharging tax debt through a Chapter 7, the debt must satisfy several standards. Only income taxes can be discharged, in general. Tax discharges are not generally available for tax penalties, payroll taxes or other types of tax debt.

Might one of these options keep you from losing your home?

Many people, including, perhaps, some in Ohio, go through life trying to avoid thinking about their problems in the hope that they'll eventually go away. Others, perhaps yourself included, prefer to meet their problems head on. You might consider yourself somewhere in between these two extremes, but when it comes to financial trouble, evidence suggests that waiting too long to do something about a potential problem may lead to utter disaster, especially where ownership of your home is concerned.

If you're currently facing money problems, you're certainly not the first person in the state to do so and will not be the last. Such situations often cause people embarrassment, however, which can make them hesitant to reach out for support, even when they know it exists. There are several things you might be able to do to overcome serious financial challenges, and, in turn, improve the chances of keeping your house.

Yes, you can get a mortgage after bankruptcy

For many people, filing for bankruptcy can feel like a jumping off a cliff and not knowing what waits at the bottom. If you are considering bankruptcy, this fear can keep you from moving forward and creating a real second chance for yourself. Among the other things that worry people about life after bankruptcy is whether or not they'll ever be able to qualify for a mortgage and buy a home.

The good news is that there is, in fact, good news. Although bankruptcy does affect your credit, it does not last forever. you might think of it as a severe bruise to your credit rating, but not a permanent scar. In fact, depending on your specific circumstances, you may be able to get approved for a mortgage in as little as couple of years after completing your bankruptcy.

Can I protect investments from Chapter 13?

When a person begins to consider a bankruptcy, often he or she has many concerns about which pieces of his or her property can be exempted from the process. Persons with various investments have a good deal of homework to do if they want to fully understand which of their investments may withstand the process and which face the greatest threat. 401k plans and Roth individual retirement accounts (IRSs) both enjoy some protections against collections during bankruptcy, but they both also feature exceptions to those protections.

401k plans usually are not available to creditors who seek repayment under a Chapter 13 bankruptcy, with one giant exception. If a person owes the Internal Revenue Services (IRS) money, then the agency can place restrictions on your disbursals, even if you're years away from touching the funds. For instance, if a person files for bankruptcy at 50 and cannot access his or her 401k for almost 10 more years, the IRS can place penalties on that person's future disbursals, and those penalties may mean interest against the disbursal that compounds until the person can access the funds.

Will Chapter 7 liquidate my home or retirement savings?

When you begin to consider filing for bankruptcy, it is understandable that you may have many concerns about what you'll have to give up in exchange for a fresh start, especially when it comes to your home or retirement assets. While a Chapter 7 bankruptcy does require you to liquidate assets in order to discharge some or all of your debt, it does not require you to liquidate every kind of asset.

If you worry that you're stuck in an intractable situation where you can only gain debt relief by giving up everything and losing your future, there may be good news. The laws that govern bankruptcy offer exemptions for a person's home and retirement assets in many instances.

If I file for bankruptcy, will I have to give up my stuff?

Filing for bankruptcy is never an easy decision. One of the most common things that holds Ohio residents back from making this often beneficial decision is fear of losing personal property. While this is a normal fear, people who file for Chapter 7 bankruptcy often find themselves relieved to learn that they can, in fact, keep many or most of the things they hold dear.

Chapter 7 bankruptcy also goes by the name liquidation bankruptcy. However, there are exemptions that may apply to your case, protecting certain assets and keeping you from having to liquidate important things. If fears over your property are preventing you from seeking a better financial future through bankruptcy, you would be wise to seek a better understanding of what the Chapter 7 bankruptcy process entails.

Court rules in favor of Chapter 7 debtor

A recent bankruptcy court decision may mark a significant step forward in the flexibility that debtors have when filing Chapter 7 bankruptcy. The court ruled that it was not an abuse of Chapter 7 for the man to claim expenses for maintaining two separate homes.

The trustee overseeing the bankruptcy petitioned the court to recognize the man's claim as an abuse of the guidelines, claiming that by maintaining two homes, he was denying creditors potential repayment of debts. However, after carefully reviewing the details of the case, the court ruled that it was not an abuse for a number of reasons.