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In a Chapter 7 case, you can keep all property which the law says is “exempt” from the claims of creditors. The exemption law that applies to you depends upon the state you reside in.
If you live in Kentucky, you may claim the protection of the federal exemption law or the state exemption laws. Most cases filed in Kentucky do use the federal exemptions and you should consult a skilled bankruptcy attorney to determine whether the federal or state exemptions should be used.
Federal exemptions include:
- $21,625.00 in equity in your home;
- $3,450.00 in equity in your car;
- $525.00 per item in any household goods up to a total of $11,525.00;
- $2,175.00 in things you need for your job (tools, books, etc.);
- $1,075.00 in any property, plus part of the unused exemption in your home, up to $11,625.00;
- Your right to receive certain benefits such as social security, unemployment compensation, veteran’s benefits, public assistance, and pensions.
The downturned economy and after-effects of the mortgage crisis have taken a toll on Cincinnati. Drive through a West-side neighborhood and you will see countless foreclosures and blighted properties. Due to irresponsible lending practices, many Ohio homeowners were forced into bankruptcy and lost their homes to foreclosure. What’s worse, the banks then refused to take responsibility for the foreclosed properties, leading to vandalism and blight of Cincinnati neighborhoods.
Recently I had a case where my clients were the victims of just this scenario. They had been owners of several rental properties, fell upon hard financial times, and had to file bankruptcy. One of the banks filed a foreclosure action on its mortgage, but then dismissed it, seemingly because it didn’t want to be a “property owner” or it didn’t think it’d be able to sell the house to re-coop its loan. Later, the house sold at a tax foreclosure sale. Because the house was worth more than the taxes owed, there was actually money left over and being held by the court.
The clients hired me to help them obtain the excess funds. The concern was that under Ohio law, they had to give notice to the bank that they were applying to have the funds distributed to them, and that the bank would try to intercede to satisfy its mortgage.
Luckily, I was able to successfully argue several points. First, under Ohio law, the filing of an Entry of Confirmation of Sale frees the real estate of all liens and encumbrances, including mortgages, so that the new buyer takes title free and clear. Second, the bank had failed to appear and assert its interest in the tax foreclosure. The Ohio Supreme Court has held that a bank’s failure to appear, answer, establish, or defend a claim forever bars it from asserting a claim. Galt Alloys, Inc. v. KeyBank Natl. Assn., 1999-Ohio-383, 85 Ohio St.3d 353, 708 N.E.2d 701 (Ohio 1999). Third, the bank failed to respond to the notice of distribution, which acts as a waiver to participate in the distribution. And finally, the bank’s failure to pursue its own foreclosure, or participate in the tax foreclosure, is a violation of public policy because they fail to follow through on taking title to homes, leaving the houses susceptible to break-ins, vandalism, and blight.
The judge ordered the excess funds to be distributed to my clients. Score one for the little guy.
Brian D. Flick, an attorney with Godbey & Associates, recently attended Max Gardner’s Bankruptcy Bootcamp.
The Bootcamp is a 4-day intensive training course in the Bankruptcy Litigation Model which covers all areas of litigation in a consumer bankruptcy case. Topics covered included discharge violations, standing to file proof of claims, navigating through the Fair Debt Collection Practices Act, and a variety of issues related to the securitization of mortgages and car loans.
October 17 – 23 has been designated by Congress as National Estate Planning Week under HR 1499.
It is estimated that 120,000,000 Americans do not have up-to-date estate plans to protect themselves and their families in the event of sickness, accidents, or untimely death,” informs the NAEPC Education Foundation’s news release for National Estate Planning Awareness Week.
A survey from 2010 by Lawyers.com found that “only 35% of Americans now report having a will and only 21% have a trust arranged.” A more recent survey by EZLaw affirmed these numbers. It found that “only 44% of Americans report that they currently have any estate planning documents.”
The Fair Debt Collection and Practices Act (FDCPA) prohibits debt collectors from using abusive, deceptive, and unfair debt collection practices.
If a consumer receives an abusive call from a debt collector, he or she can inform the caller that they may be in violation of the FDCPA. Since debt collection calls are recorded, the debt collector caller will usually back off at that point.
Consumers can also report that debt collection agency to the Better Business Bureau. Also, debt collection agencies are not allowed to call your employer, though they will, but you can request that they don’t. There are a lot of violations of the FDCPA by debt collection agencies that many consumers are not aware of.
Many debt collector callers can be very abusive. Most of them get paid on commission. It is important to know that they are not allowed to threaten you.
I get calls very frequently from people who tell me they received a phone call from a debt collector who said they were going to come and arrest them if they didn’t pay a certain amount of money to them. This is simply not true!
There is no such thing as debtors’ jail in most states including Kentucky and Ohio. Unless you are writing bad checks, bad debt is not a criminal action, so you can’t go to jail.
I get a lot of other calls from people who say that the debt collector tells them that they are going to sue them or that they have to be in court the next day. None of those things can happen unless you’ve received a certified letter in the mail, and your wages won’t be garnished unless you have received papers from the court.
It is up to each individual creditor—whether a bank, credit card company, car dealer or other organization—to decide how much patience they want to have with customers who are in arrears. Sometimes, a collection agency will call if you are just 30 days past due. If you do get a call from a collection agency, theoretically you haven’t been sued yet, though this may not always be the case.
Say, for example, you are getting a call from a collection agency because you are behind on your credit card. If you know that is the tip of the iceberg and you owe another $50,000 in credit card debt, you should consider calling a bankruptcy attorney. If it’s the only debt you owe and you owe $2,000 to that credit card, but you are out of work right now, and you can’t afford to pay much now, I would call them or answer the phone when they call and tell them the truth.
Once you have retained an attorney, you can refer any debt collection calls to your attorney who will handle them for you.
Accidents and injuries are inevitable in life, especially considering all of the interactions that take place between individuals in our daily lives. When is it just an “accident”, and when should someone else be held legally responsible?
While mishaps and tragedies are bound to occur, some incidents could be prevented if not for the careless actions of others. In situations like these, where a negligent party is responsible for causing emotional or physical pain, our law allows you to pursue compensation through the filing of a personal injury claim.
Defining the Term
Legally, the term “personal injury” describes an area of law that focuses on assisting plaintiffs in receiving compensation for injuries caused by a negligent party. This area of law does not only cover physical suffering, but emotional injury and damage to one’s property as well.
Some Personal Injury Scenarios
There are a large number of circumstances in which an injury suffered by an individual justifies the filing of a personal injury claim. These include negligent injuries suffered in the workplace; from a dog bite; during a slip and fall; or in accidents involving a motorized vehicle.
A personal injury can also come about from more complex situations such as medical malpractice; an airplane or train accident; or when an injury occurs from the use of a product. Individuals who have experienced pharmaceutical malpractice or have been harmed from exposure to dangerous substances such as toxic waste might also be eligible to pursue a personal injury claim.
Satisfying the Qualifications for Personal Injury
Two conditions must be met in order for a personal injury claim to stand up in a court of law. First, it must be proven the injury suffered by the plaintiff was caused by the defendant’s negligent actions. Second, it must be proven the plaintiff’s suffering is a direct result of the negligent actions in question.
If you are experiencing distress from an injury believed to be caused by another party’s negligence, it is wise to consult an attorney to determine whether you have any legal options available to pursue compensation for your medical bills, wage loss, pain and suffering, and other damages.
Once your divorce is finalized, it will be up to you to get your finances in order. In order to become self-sufficient again, organizing your finances is very important. To get you headed in the right direction, here are some steps you should take.
First, if you have not done so already, make sure you have a credit card, checking account and savings account in your name only. This is going to help rebuild your credit score once again. Next, you will need to incorporate any aspects of your divorce decree into your financial decisions, such as paying child support. You will also need to change information on documents pertaining to things such as health insurance, auto insurance, renters insurance and life insurance to reflect your individual status.
Fully understanding the process of transitioning from joint to individual financial status is very important. This will help you avoid making bad financial decisions. There are many options available for better educating yourself on this process. These include taking a course online or at the local university; reading a book; or checking out one of the many websites on the Internet that feature a wealth of helpful resources on how to better understand your finances. You can also consult with your divorce attorney, who is typically knowledgeable about these issues, or may be able to refer you to another attorney within his/her firm to help you.
Now that you are handling your own finances, you will also want to audit yourself. Working with an attorney or CPA to get your taxes in order will ensure that any outstanding tax returns get filed. During tax time, it is also wise to seek the advice of a financial expert. This allows you to gain a better understanding of your overall financial situation as well as receive some guidance on ways to better manage your money.
Lastly, you need to create a long-term financial plan. This strategy will help you reach your long-term financial goals. Depending on your individual situation, you may want to seek financial assistance in crafting this plan as well.
Getting a divorce can create financial problems. But if you prepare yourself properly, you can get your finances back in order and avoid future financial difficulty.
Generally speaking, a no fault divorce means that either spouse can file for divorce without having to prove the other spouse is guilty of any wrongdoing. In contrast, fault divorces require wrongdoing to be proven. Depending on the state where you live, these “faults” can include adultery, cruelty, homosexuality, inability to have sex, failure to consummate the marriage, the commission of a felony crime by one of the parties, desertion, abandonment, confinement in prison past a certain number of years, mental instability or even simple neglect.
All states recognize no fault divorces, but not all no fault divorces are equal. In California, which essentially invented no fault divorce, either party can file without assigning blame. The petitioner just needs to choose from one of two grounds listed: “irreconcilable differences” or “incurable insanity.” Other states require couples to live apart for a designated period of time, which can range from months to years, before they may file for no fault divorce.
Fault divorces can be contested. While most judges feel it is not in the public interest to force people to stay married, it has happened, particularly in conservative jurisdictions. No fault divorce was devised to leave the decision of whether to stay married or get a divorce in the hands of the couple, not a judge.
Besides easing the divorce process, no fault divorce has other advantages. According to statistics, reported instances of domestic violence declined in state that adopted no fault filings. It is easier for victims of spousal abuse to leave. It helps reduce family courts’ caseloads. No fault divorces take less time, cost less and save emotional wear and tear. It tends to be easier on the children compared to a contested fault divorce.
While do it yourself divorces are possible, you should consult with an attorney to make sure you know all the options available to you in your state. Especially where children are involved, court orders regarding child custody, visitation rights, child support, health care, etc are very hard to over-turn once put into place.
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