Common Personal Bankruptcy Myths And The True Facts

Bankruptcy Myths

Filing for bankruptcy protection is a complex process, one that should not be undertaken without legal advice. There are many myths that are available about bankruptcy and these myths can be very harmful. It is important that the true facts are known by Ohio consumers so that eligible individuals benefit from the bankruptcy process.

#1: All Your Debts Will Be Eliminated Through Bankruptcy

Bankruptcy does not eliminate every type of debt and some individuals may still owe certain debts after the bankruptcy case is discharged. This solution is not a fast fix and does not offer quick debt resolution. The bankruptcy law lists certain debts that can not be discharged with bankruptcy, and these include most unpaid taxes, child support, alimony, student loan debt, and certain other types. Medical debt that you owe and credit card debt will normally be eliminated through discharge. If the only debts owed are the types that can not be discharged under the bankruptcy law then filing for protection may be a waste of time and money. An experienced bankruptcy attorney can provide advice on which debts will be resolved through discharge.

#2: Filing For Bankruptcy Will Prevent Credit Approval In The Future

A common myth is that filing for bankruptcy means an individual will not be able to get credit in the future. This is completely false. In fact most people will start to receive special credit offers as soon as their bankruptcy has been discharged. Some lenders are specialists in post discharge lending but be aware that the interest rate for the credit will be higher because of the bankruptcy case. Make sure not to dig a hole again, and only apply for the best offers received. Use the credit wisely and within a couple of years with a good payment schedule the accounts will help gain credit approval with lower interest rates and a solid credit history.

#3: Everything I Own Will Be Sold Off

Many individuals believe that filing for bankruptcy means giving up all their assets and personal belongings but this is not the case. The bankruptcy attorney chosen will explain the exemptions allowed under the bankruptcy law. In many cases all of the property owned will be covered by the exemptions allowed. Exemptions may allow the individual to keep a home, a vehicle, tools, certain jewelry items, household belongings, and many other itemized items and areas.

The experienced bankruptcy attorneys at West & Hurley will provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Surprising Chapter 7 Bankruptcy Filing By Federal Judge In California

In a sign of the the tough economic times Judge Otis Wright, a U.S. District Judge and former Marine, has filed the initial forms for Chapter 7 bankruptcy . The required paperwork was filed in December of 2011 and includes both Otis Wright and his spouse. Judge Wright has spent 5 years on the bench and receives at least $160,000 in compensation for the position. According to the paperwork filed with the bankruptcy court the liabilities owed by the couple amount to $895,000 while their assets are valued at almost $833,000.

The debts listed in the bankruptcy petition includes a $30,000 balance on a CitiBank credit card account. Other credit card accounts listed as debts included $17,000 owed on two different department store cards. The bankruptcy attorney in the case has declared that the retirement account of the judge was depleted so that some of the outstanding debts owed could be settled before bankruptcy protection was sought.

The annual income for the couple has decreased in the last few years while their debt has stayed stable. The income claimed for 2009 was $271,000 while the 2011 income reported was only around $171,000. The bankruptcy trustee in the case has not determined yet whether to ask for the sale of the home owned by the couple. This home is valued at more than $1 million and is situated in Rancho Palos Verdes.

A bankruptcy attorney would not be surprised by the fact that a federal judge has had to file for bankruptcy but many of the public are. There is a general mistaken belief that individuals who have more than $100,000 in annual income do not have money problems but this is not true. Judge Wright has a solid employment history, first in the US Military then as a  Deputy with the Los Angeles County Sheriff’s Department. This fact did not prevent him from encountering financial difficulties and needing an experienced bankruptcy attorney.

The bankruptcy attorneys at West & Hurley can provide a free debt consolidation consultation so that you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

What If A Creditor Is Overlooked When My Bankruptcy Petition Is Filed?

Overlooked Creditor?

If a creditor is overlooked or forgotten when you file the initial bankruptcy petition then it may be possible to add the creditor later on in some cases. Filing for bankruptcy protection can be a stressful process, with numerous forms and large amounts of information required. If there are many creditors it may be very easy to overlook one or more during the initial stages of a bankruptcy case. The experienced bankruptcy attorney handling the case can help you determine whether the creditor can be added to the case.

As soon as you realize that a creditor is not listed in the documents filed with the bankruptcy court it is essential that you contact your bankruptcy attorney with the missing creditor and debt information. If the meeting of the creditors has not taken place yet then adding the overlooked creditors is usually possible. This step will require additional work by the bankruptcy attorney though and there may be an additional cost for this step. The bankruptcy lawyer will need to add the creditor to the case documents filed with the bankruptcy court, and then send the creditor a notice concerning the meeting of creditors in your case.

If you do not realize that a creditor was omitted from the case until the meeting of creditors has passed then you need to contact your bankruptcy attorney as soon as possible with this information. Once the meeting of creditors occurs then there are specific time restrictions and limitations for adding any additional creditors to the case. If the time limit has not passed then the bankruptcy lawyer can add the creditor by filing additional information and forms with the bankruptcy court. If the allowable time period for adding new creditors has passed then this debt will not be listed or discharged and you will still owe the debt after the bankruptcy case is closed.

Before filing for bankruptcy protection or even contacting a bankruptcy attorney you should get current copies of your credit reports from all 3 credit reporting agencies. These agencies are Equifax, Experian, and TransUnion, and each agency report may have different creditor and debt information. If you are contacted about a new debt or creditor that is not listed on any credit reports this information should be given to your bankruptcy attorney immediately. These steps will minimize the chance that a creditor is forgotten and a debt is not discharged.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Medical Billing Mistakes Can Significantly Increase Consumer Debt

Medical billing mistakes are common, in fact these errors occur more often than most people realize. These mistakes cost consumers millions of dollars every year. Most consumers do not realize that any error at all in the billing information, even a slight misspelling of your name, may stop your health insurance company from paying the bill and you could end up on the hook for the entire amount. Every time you receive any medical services make sure to check the bill closely. Look at all of your personal information to ensure everything is accurate. Check the treatments provided and the diagnosis given to make sure they are all correct and were received.

Another issue is improper denials by health insurance companies. Make sure that every explanation of benefit form that you receive from your insurer is examined closely. If the reason for a limited payment or payment denial is not clear call the insurer and get an answer. Look at the benefit package that you have to make sure all payment denials are legitimate. Some unscrupulous health insurance companies frequently deny claims wrongfully in the hopes that the consumer will not question this decision.

Medical billing mistakes can be the result of a physician or hospital or they can occur with insurance benefits. Carefully checking every item on a bill and every line of a benefit explanation form will ensure that your medical bills are accurate and that the insurance company pays all of the covered medical expenses. Some hospitals do not send an itemized bill to the patient after a hospital stay, just a paper with the total amount. If this is the case then call and request an itemized statement so you can check each individual charge closely.

If financial difficulties make it hard to pay your medical bills and other consumer debts bankruptcy may be an option. Good things happen to bad people, and good people may have difficult times. Bankruptcy is nothing to be ashamed of. If you owe a significant amount of money in medical bills, whether this is due to poor insurance coverage or no insurance coverage, then a qualified bankruptcy attorney can help offer options.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Credit Card Company Lawsuits Can Be Stressful But There Are Options

If you are facing a lawsuit over credit card debt you are probably very nervous and concerned. In many cases the debt may not even belong to you or you may be facing financial difficulties and be unable to pay off the debt. There are several steps that you can take to strengthen your position if you must go to court. Your creditors must show valid proof that their claim is legitimate if this proof is demanded by the consumer, but many consumers do not realize that they have a right to demand proof that they actually owe the debt.

As soon as you become aware that you are being sued, usually when you get a notice or are served a subpoena,you should do a number of things. Find out what your state’s statute of limitation for debts is. This time limit to bring any claims may be different in each state and this information is essential. Make sure that the debt involved in the lawsuit is still valid and the statute of limitations has not run out. If the time limit the law allows has passed then a request to dismiss the lawsuit should be made to the court based on this fact. In many cases a creditor will file suit after the time has elapsed in the hopes that the consumer and court do not notice this fact.

Another option is to request that the creditor validate the debt. This is your right as a consumer, and all of the debt information must be reviewed with the information on the application for credit or services. The debt validation process includes checking the debt account information closely, and this will include the total due on the account and when the account was initially opened. The last payment that was made towards the debt will also be noted in the account information. Any creditor who can not provide the verification information and results of this process may not be able to win in court.

Once you receive notice of a court hearing or other creditor action make sure to go over your credit card account closely. Any inaccurate information and errors should be marked and noted. Make sure you appear at any scheduled hearing in the court and you should also answer any complaint you receive and file this answer with the appropriate court clerk. If you do not appear a default judgment will be issued and you may find your property seized or your wages and bank accounts seized. If you are not sure what steps to take or you need professional legal help then an experienced bankruptcy attorney can help.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. We aggressively represent all of our clients. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Debt Collectors In Ohio Not Always On Target In Respecting Consumer Rights

Debt Collectors FDCPA

Debt collectors can be very aggressive and demanding, even in cases where you do not owe the debt in question. Some debt collectors engage in unfair, abusive, and illegal activity in an attempt to collect on a debt. These tactics can be reported, and consumers can sue the debt collector if these practices are used but most consumers in Ohio are not aware of their rights. Some of the most common questions about debt collection and consumer rights are listed below.

What Is The Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act was enacted in 1978 and is designed to stop abusive debt collection practices and give consumers the right to dispute any debt or require the creditor to verify that the debt is legitimate and owed by the consumer. This statute outlines the methods used by debt collectors in an attempt to collect on a debt, defines the specific rights that consumers have in this area, and lists the penalties that can be imposed if the act is violated by a debt collector. The Fair Debt Collection Practices Act ensures that all debt collectors use fair methods and treat consumers with respect.

What Debts Does The Fair Debt Collection Practices Act Cover?

This statute covers most types of consumer debt. Medical expenses are covered, and so is consumer credit card debt. Vehicle loans and purchases, any household debt, and many other types of debt are covered and must follow this statute regarding debt collection activities.

What Methods Can Debt Collectors Use To Contact You?

There are several methods that can be used by debt collectors to contact consumers who owe a debt. Demands and other correspondence can be delivered through the mail, over the telephone, or by fax.

When And Where Can Debt Collection Activities Occur?

Debt collectors can not attempt to contact you before 8 am or after 9 pm unless you have given permission for contact outside of these hours. If contact is made at your place of employment and you tell the debt collector you can not accept calls at work then the debt collector can not contact you at your job again.

Can I Stop A Debt Collector From Contacting Me?

Yes, this can be done in more than one way. If you send the creditor a letter asking them not to contact you again concerning the debt then the creditor can only contact you to explain that the contact will cease immediately or to alert you of any actions that the creditor plans to take. This includes a property seizure, filing a suit in court, a wage garnishment, or other collection activities. Telling the creditor to stop harassing you will not stop collection activity, just the contact. Filing for bankruptcy will also stop creditors from contacting you because any discussions about your debt will be handled by the qualified bankruptcy attorney.

Bankruptcy Or IRA Withdrawal: Which Option Is Better?

If you are struggling financially and you have an IRA with a decent balance you may be tempted to withdraw funds from this account to pay down your debts. This is usually a big mistake though, and it can have a big financial impact on your life and your retirement resources. You should never access retirement savings to pay on credit cards, medical bills, or other unsecured consumer debt except in very narrow circumstances.

If you are like most people you have always paid your debts on time, but circumstances beyond your control like a job loss or catastrophic medical emergency affected your ability to meet your monthly expenses and debt payments. You may feel that bankruptcy is not an option out of a misguided sense of shame, and prefer to pay your debts if at all possible. Withdrawing from your IRA is not usually a sound financial move though, and in most cases consulting an experienced bankruptcy attorney who specializes in debt relief  is a better option instead.

Will The Withdrawal Completely Eliminate Your Debt?

In a small percentage of cases it may be possible to pay off all of your debts using your IRA balance, and this may be a good idea if all the debts will be eliminated completely. If you have money invested at 2% but the interest you are paying is 17%-22% then using the funds to pay off the debt completely can be a wide move. If you plan on only paying off some of your debt then your IRA should be left alone, because you may soon find yourself falling behind on payments again and this time you will also have a much lower IRA balance as well. The taxes and penalties on early withdrawals can be severe. An experienced bankruptcy attorney can help you determine the best move in your specific case.

Will Bankruptcy Put Your IRA Balance At Risk?

When you file for bankruptcy protection you will need to list all of your assets and accounts, and this includes 401k accounts and IRAs. Under the bankruptcy code even if you have large balances in retirement account and these must be listed your creditors are not allowed to touch any retirement funds that you have. Bankruptcy will not place these funds in jeopardy but you could if you withdraw funds from the retirement account. The bankruptcy trustee will not touch any retirement accounts that you have, but any money that you withdraw from these accounts will become fair game. An experienced bankruptcy attorney can help advise you on the best way to handle your financial problems and get the debt relief that you need. This can be done without placing your retirement savings at risk.

The bankruptcy attorneys at West & Hurley can help with a free debt consolidation consultation so that you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Does Bankruptcy Protection Apply To Immigrants In Ohio?

A common question often heard by bankruptcy attorneys concerns immigrants who are in the USA legally. Can immigrants in Ohio legally file for bankruptcy protection and will this step affect the status of their immigration? United States citizenship is not a requirement under the US Bankruptcy Code, so the legal status of an immigrant is not relevant in a bankruptcy case as far as discharging debts are concerned.

Some confusion in this area comes from the fact that all of the bankruptcy forms ask for a valid social security number, which immigrants do not usually have because these numbers are only provided to citizens of the USA. There are other options for these spaces but many immigrants are not aware of these options. A tax ID number, provided to immigrants who work and pay taxes but who do not have a social security number, can be used in the spaces on the bankruptcy form. It is also possible to write in that a social security number is not possessed.

It is important that every question on each bankruptcy form is answered honestly and accurately. NEVER provide false information, including the use of a false social security number or the use of the SS number for anyone else. Providing false information can result in criminal charges, and this can affect your immigration status. Filing for bankruptcy is not a crime, and this step alone is not enough to affect the legal status of your immigration classification. Committing a crime by lying on the bankruptcy forms may affect your status though and could have devastating consequences. This includes crimes of moral turpitude, which bankruptcy fraud falls under, and these crimes could cause you to be deported or to have your citizenship application denied.

If you commit bankruptcy fraud then you could face criminal charges in addition to placing your immigration status in jeopardy. This includes using the Social Security number for someone else or creating a fake number for the bankruptcy forms. US citizens who commit bankruptcy fraud can go to jail and face large fines. Immigrants who commit these same crimes can face similar penalties, but in addition immigrants can be denied citizenship and even deported as well.

If you are an immigrant facing debt problems then bankruptcy can be an option, but an experienced bankruptcy attorney should be consulted as soon as possible. Small errors and innocent mistakes during the bankruptcy process can have very big consequences that can affect the legal status of an immigrant. Trying to file for bankruptcy protection without an experienced and qualified bankruptcy lawyer is a mistake, especially when your immigration status is at risk.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation for citizens and immigrants both, to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Is Bank Of America Playing Fair With Mortgage Holders?

An investigation into the foreclosure practices of Bank of America has uncovered some surprising facts, and some activities that may be downright illegal. The group Anonymous, known for hacking as a form of public service, has released a number of emails that were leaked by an individual who used to be an employee of Bank of America. The emails provided by the former employee appear to show that foreclosure information was altered by a subsidiary of the large bank and by bank employees.

Anonymous claims that Balboa Insurance, the Bank of America subsidiary in question, has intentionally and illegally deceived the public by hiding foreclosure data. The emails which were leaked show discussions between the employees at Balboa Insurance about loan documentation altering designed to benefit the company, The spokesman for BofA has claimed that the emails were not related to foreclosures by the bank and are actually stolen property taken by a disgruntled employee when leaving the company.

The emails also bring into question the possibility of forced insurance scams perpetrated to deceive and fleece mortgage borrowers. Both the alteration of loan documents and any scams involving forced place insurance could cause borrowers to be placed in illegal foreclosure, and many consumer groups are demanding that something is done. Since Balboa Insurance is owned by Bank of America a forced insurance policy benefits both companies at the expense of the mortgage holder.

When a homeowner misses a payment on the required insurance policy covering the home in the mortgage contract then the mortgage lender is allowed to purchase this coverage for the borrower, and the costs of the policy are added to the mortgage debt. When Bank of America purchases this policy from Balboa Insurance then the result is an inflated premium that is much higher than the original policy in place and this puts an already struggling borrower further behind, and makes foreclosure a very real possibility.

One scheme hinted at in the leaked Bank of America emails involves back dating a forced place policy by as much as 9 months. The homeowner is billed for past insurance coverage that was not even in place at the time, and the insurance company knows that there will not be any claims because the period covered has already past.

One clue that your mortgage information and balance may be incorrect or that you have been a victim of these scams is a mortgage balance amount that goes up considerably when a couple of mortgage payments are missed. If you think you are the victim of forced insurance fraud or illegal foreclosure practices then you need professional legal help. These practices could leave you drowning in debt and could end up with your home being foreclosed on.

The bankruptcy attorneys at West & Hurley can provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. We will make sure that your debt is handled properly and work to eliminate any fraud or illegal foreclosure activity. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Budgeting After Bankruptcy Is Crucial

After bankruptcy you will notice your stress levels are much lower and your life is much less chaotic, thanks to your bankruptcy attorney. You no longer have to avoid harassing phone calls and letters from creditors, and your life is peaceful once again. Without learning to budget and use sound financial management this peace may not last long though, so effective budgeting after bankruptcy is crucial to avoid any future problems with debt. There are some helpful tips that can help you stay on the right track now that you have a fresh financial start by simplifying your financial situation and making your life less complicated.

Consolidate Your Financial Accounts

If you have numerous accounts this complexity can often lead to errors and mistakes that may have a financial cost. A bankruptcy attorney may offer this tip and others when your case is discharged to help you stay out of debt. Look at all of your accounts, and consolidate all the accounts of each type into a single account where you get the maximum benefits and lowest costs. This means one checking account, one savings account, etc…

Use Direct Deposit

Any experienced bankruptcy attorney can explain that direct deposit of your paycheck will lead to more savings and lower debt. If you do not have the cash on you then you are less likely to spend it on a whim. This also protects you against losing the money needed for the monthly bills or having the funds stolen.

Use Automatic Bill Pay

Automatic bill pay is convenient, easy, and can help you save money and avoid debt. A simple mouse click allows you to transfer payments instantly, and there are no stamps or other supplies needed.

Sign Up For Overdraft Protection

Simple budgeting is about minimizing your expenses, but one area where this may be penny wise and pound foolish is overdraft protection. Some banks offer this protection for a small fee, and it can avoid large expenses if an error occurs and you do become overdrawn. Discuss overdraft protection with your bankruptcy attorney and financial institution to see if this option is right in your case.

Don’t Forget To Budget For Entertainment

Make sure not to make your budget too strict. Entertainment should be budgeted on a weekly or monthly basis and you should not eliminate this spending category. Everyone needs entertainment once in a while and this should be included in every budget. Try to choose forms of entertainment that are low cost though, such as renting a movie instead of taking the entire family to the theater.

Be Realistic In Your Budget

Make sure that your budget is realistic for your income, debts, and situation. If you have questions your Ohio bankruptcy attorney can provide resources and referrals to organizations and individuals that can help you with your budgeting needs.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.