When to File for Bankruptcy

There is a tendency for people to believe that they can “wait out the storm.” Realistically, waiting for some sort of outside intervention only serves to worsen situations that involve finances. Knowing when to start considering options for fixing your financial problems is vital in successfully accomplishing such a task. The earlier you realize that you are in an unsustainable situation, and that bankruptcy will allow you to settle your debt in an efficient manner, the better off you will be.

Chapter 7 and Chapter 13 bankruptcy are meant to be a safeguard against the vicious cycle of impossible and severe debt. Filing in Ohio or Kentucky can be a complicated process, so having a bankruptcy attorney at your side guiding you through each step may allow you to remedy this difficult problem and move on with your life.

When to File for Bankruptcy in Greater Cincinnati or Northern Kentucky

A dedicated Cininnati or Kentucky bankruptcy lawyer can help you determine if this process is appropriate for your unique situation. If it is in your best interest to file for bankruptcy, you can immediately be put on the path towards financial relief, free from creditor harassment.

Eric Steiden is a Covington bankruptcy lawyer who has been helping individuals and businesses throughout Northern Kentucky and Southern Ohio with the financial legal issues for the past 30 years. He and his legal team will use their knowledge and experience to guide you through every step of the filing process.

The phrase Steiden Law Offices hears most commonly is “why did I not do this earlier?” Eric Steiden and staff understand that making a decision, which involves a bankruptcy, is a difficult one, but they also know that waiting around will only make the problem worse. To schedule a free consultation at one of the firm’s four locations to see if bankruptcy is the right choice for your unique situation, call (888) 877-3328 or send an online message today. The firm prides itself on a quick response time, so if bankruptcy is the best solution, they will get started on your filing immediately.

In addition to serving those in Hamilton County, Ohio, at their two Cincinnati locations, Eric Steiden and attorneys also proudly represent individuals throughout Northern Kentucky, where they have two office locations, in Florence and Covington. The law firm works with families and individuals throughout Kenton County and Boone County.

Leading Causes of Bankruptcy

• Medical Expenses – About half of all personal bankruptcies in the United States are due to medical bills. Several studies, including two published by Harvard Medical School and the Health Affairs journal, put the number of bankruptcies due to medical causes at approximately 50 percent.
• Job Loss – In the current economic climate, millions of people are unemployed, which makes them much more likely to file for bankruptcy.
• Uncontrolled Spending – Credit card bills, large mortgages, and expensive car payments contribute to bankruptcy. Irresponsible spending habits affect even those with large incomes.
• Divorce – Factors such as attorney fees, child support, alimony and the issue of providing for a household on one income can result in a difficult financial situation. Considering that divorce rates are nearly 50% in America, this is becoming a much more common reason for filing.
• Foreclosure – A family or individual can spend years preparing for the purchase of their very own home. To avoid foreclosure, many in the United States file for bankruptcy in order to reorganize their debt and keep their home.
• Disaster Scenario – Unexpected accidents or disasters such as earthquakes, floods, or hurricanes can be nearly impossible to prepare for. If a homeowner does not have insurance, then bankruptcy may be a strong option.
• Loss of Utilities – Similar to home foreclosure is the risk of losing your utilities. Keeping power on and you house heated can lead someone to file for bankruptcy.
• Repossession – If a creditor has repossessed your vehicle, filing for bankruptcy may require them to return the car, along with other personal property that may have been repossessed.
• Poor Financial Planning – Lacking a strong financial plan can lead to bankruptcy. Not having a long-term view could increase your odds for an accumulation of unsustainable debt or a lack of savings.

When to File for Bankruptcy

Individuals and businesses who decide to file for bankruptcy, often wait longer than it would be advisable. They have more debt than they know what to do with and are at their financial wits’ end. If you are in debt, with no solution in sight, do not wait to consult with an attorney. Filing for bankruptcy before you reach this stage can prevent the loss of your home, bank accounts and other property.

Bankruptcy may be something to consider is:

• You have already tried to negotiate with your creditors with no success
• Your liabilities exceed your assets
• You are forced to consider and IRA distribution to make ends meet
• Your personal relationships (particularly between spouses and business partners) are stressed to the point of breaking consistent

In order to proceed with a Chapter 13  bankruptcy (wage earners plan) or Chapter 7 bankruptcy (liquidation), it is required that a person go through approved credit counseling within 180 days prior to filing. Additionally, if the individual in debt has filed for bankruptcy protection less than 180 days prior to current filing, and the recent case was dismissed because of delinquencies on the part of that individual, they will be unable to go ahead with a filing.

Financial advisors and money managers mostly agree that you have a minimum of 3 months of savings in your cash account in preparation for the prospect of financial trouble, job loss or lower hours, or if a large unexpected expense develops. Throughout our latest economic recession, most of us have been forced to live paycheck to paycheck, and are not ready for any of these difficult scenarios. When you can barely make ends meet, it can often become extremely difficult to repay your debts.

Bankruptcy is available to help people in these situations. If you are having trouble paying your debts, it is important to speak to a knowledgeable bankruptcy attorney to find out if bankruptcy can help you and, if so, what chapter of bankruptcy is right for your situation.

When NOT to File for Bankruptcy

Although bankruptcy is a great way to lower your debt and regroup, there are a few situations in which it would be less advantageous to file. Some of these include:

• If you can created a repayment plan out of court with your creditors
• If you need to keep a high credit score (it will be on your credit history for years)
• If you are interested in borrowing more money immediately
• If you own a large amount of nonexempt property (or do not want that property liquidated)

Resources on When to File for Bankruptcy

United States Courts – Bankruptcy – This is the main bankruptcy page on the U.S. Courts website. It contains information on the various types of bankruptcy available for individuals and businesses, along with resources detailing relevant forms, rules, administrators and cases. It also has information on fees and discharge orders.

U. S. Bankruptcy Court – Eastern Kentucky – This is the primary website for the Eastern District of Kentucky Bankruptcy Court. It offers information on new standing orders, locations, mission statements, judges, processes, opinions and frequently asked questions

United States Bankruptcy Court – Southern Ohio – The primary site for Cincinnati and surrounding area residents. It provides information on judges, locations, phone numbers, FAQs, means testing, filing and seminars.

Steiden Law Offices | Filing for Bankruptcy in Ohio or Kentucky

If you are currently considering bankruptcy as a remedy option for you debt problems, working with a qualified bankruptcy attorney will help make the complex process much easier to approach and deal with. An attorney will be able to accurately assess your financial situation while developing the proper strategy for your particular situation.

Eric Steiden uses objective, calculating analysis so that he can accurately handle your case and allow for the most practical and reliable avenue to be taken. He is committed to the values of integrity and honesty, which has guided his actions since he began practicing law over 30 years ago. With four office locations, two in Cincinnati and one each in both Florence and Covington, KY, the firm is a convenient option for individuals living in both states.

To schedule a free consultation to go over your bankruptcy option with Eric and staff, please call (888) 877-3328 or send an online message today. Eric proudly represents individuals throughout Kenton County and Boone County in Kentucky, along with those in Hamilton County, Ohio.