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Dayton, Ohio Bankruptcy Attorneys - Cope Law Offices

Dayton Bankruptcy Attorney Personalized Debt Relief Solutions If you are overwhelmed by debt, you may feel as though no one can help you. However, there is help available, and the sooner you take advantage of it, the sooner you will find debt relief solutions. Speaking with a knowledgeable bankruptcy attorney is an easy first step …

Chapter 7 Bankruptcy

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Second Job, or File Bankruptcy?

Second Job or Bankruptcy Dayton OhioIf your finances are getting you down, how can you get back on track? For some, the answer may be to get a second job.

In some cases, you can boost your income and help reduce your debt by getting a second job. This is a good option for those who simply need to catch up on bills or payments that were late due to unexpected circumstances. But if you are in severe debt, a second job may not be the ultimate answer for you.

Find out below if a second job is right for you, or if you might have better luck filing for bankruptcy and wiping away your debt.

Millions of Americans Have Multiple Jobs

Millions of Americans are already working two or more jobs, according to a report by Bloomberg News. The number of workers who work multiple part-time jobs to make a full-time one — 2 million — has increased by 11% since 2007. It’s a section of the population that’s also growing faster than people who hold down a full-time job in addition to a part-time job.

During tough economical times, people are resourceful. They often must moonlight to make ends meet. In some cases, people reported having three jobs. The number of people working multiple jobs is not expected to change significantly in the foreseeable future.

If your financial situation is considered temporary, or you are starting to make a dent in your debt, taking another job may be a viable solution. However, it is important to note that in many cases, people are unable to continue working multiple jobs for a long period of time. For some, the option of a second job is used only as a temporary solution to get you through an immediate financial problem. Some people are not able to take on another job because of other commitments such as caring for their children.

Getting a Second Job in Dayton

According to the United States Department of Labor Bureau of Labor Statistics, unemployment for Dayton, Ohio, is at about 4.4% as of the end of 2016. The majority of local jobs last year were in education and health services; trade, transportation, and utilities; government; and professional and business services, respectively.

There are a number of different options for those who want to get a second job, including temporary or short-term employment opportunities. Similar to other employment opportunities, you will be better suited to some kinds of jobs than others.

Determine what type of job will best suit your needs. Many people find success with jobs that allow you to make your own hours or work a flexible schedule. This is particularly important if you’re trying to work around your regular schedule.

Check with temp agencies that are able to match you with local companies that need your services. Seasonal employment is available at retail stores during back-to-school and holiday periods. These jobs offer flexible hours and schedules, while other choices include restaurants and fast-food establishments.

It’s also possible to start your own small business that you can work during your available hours. Some of these possibilities include:

  • Driver for ride-share service
  • Pet sitter/walker
  • Cosmetics sales
  • Fitness instructor
  • Daycare provider
  • Substitute teacher
  • School bus driver
  • Delivery person

When you consider a second job, think about doing something that you like or enjoy, such as something related to a hobby. Think of something that you can do in your spare time, so you can fit it around your other job’s hours.

Should I File for Bankruptcy?

Just because you are behind in your bills doesn’t mean that you need to file bankruptcy. However, in many cases, bankruptcy can be a very good solution to help those who have a serious debt problem. This can occur when you have been out of work for some time, or are facing unanticipated expenses such as those that occur with an accident or serious illness.

When you are consistently unable to make payments on your debts, you become increasingly insolvent. It becomes increasingly difficult to dig yourself out of the financial debt hole that you are in.

There are two main types of bankruptcy that may apply to individuals. Chapter 7 is the simplest type of bankruptcy. Those who file Chapter 7 will be required to liquidate their assets in order to repay as much of their debt as possible. Chapter 13 bankruptcy allows the reorganization of debts into a repayment plan. Once you file bankruptcy, your situation is secured and creditors are no longer allowed to contact you for payments. Instead, you will work within the court system to resolve your debt situation. In many instances, you will be able to keep many of your possessions.

After filing bankruptcy, your credit score will be impacted. However, many people already are facing very low credit scores, which will only continue to decline if the debts remain unpaid. As a person’s ability to repay their debts continues, they will be increasingly unable to get loans, mortgages, or bank notes.

See also: Ohio is One of the Top 10 States for Bankruptcy Filings, How Many People Filed for Bankruptcy in Dayton in 2016?, Where are the Dayton Bankruptcy Courts?

Hiring an Experienced Bankruptcy Attorney

Each debt situation is different, and requires a unique solution. There are many factors to think about when considering whether to file bankruptcy. Some of these include the amount of debt you have, the value of your possessions, how far in debt you are, whether you are employed, and whether you have other ways of resolving your debt problem.

A qualified bankruptcy attorney with Cope Law Offices will evaluate your case to help you learn both the pros and cons of filing for bankruptcy. Contact us today for a free consultation.

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How Many People Filed for Bankruptcy in Dayton in 2016?

 

Bankruptcy Trends Dayton OhioLosing your job. Opening the day’s mail and seeing a big, unexpected medical bill you can’t pay for. Never feeling like those credit cards will ever get under control.

These are just a few of the reasons why people in Dayton file for bankruptcy every year. Ohioans are great, hardworking people, but our state is still ranked among the top 10 for the highest percentage of bankruptcy filings — about 322 per 100,000 people. We took a big hit during the Great Recession.

While the amount of bankruptcy cases filed in Ohio, and Dayton, has been on the decline in recent years, mirroring national trends since the height of the economic collapse, there are thousands here locally who still need help with managing their debt every year.

Here’s how bankruptcy cases stacked up in 2016, and where you can turn for advice should you choose to file bankruptcy.

Breaking Down the Numbers

In 2016, the United States Bankruptcy Court Southern District Ohio recorded 4,105 new bankruptcy filings in its Dayton office. Of that, 69 percent were Chapter 7 (2,831) and 31 percent were Chapter 13 (1,273). Just one Chapter 11 bankruptcy was filed the entire year, and no Chapter 12.

Ninety-seven reopened cases were included in the grand total of Dayton bankruptcy cases for 2016. There were 115 adversary proceedings filed last year. An adversary proceeding (AP) is a lawsuit filed separately from a bankruptcy case, though related, and resembles a typical civil case as found in Rule 7001 of the Federal Rules of Bankruptcy Procedure. Rule 7001 governs adversary proceedings, which include those to determine the dischargeability of debt, revoke an order of confirmation of a Chapter 11, Chapter 12 or Chapter 13 plan, and more.

The busiest month for bankruptcy filings in Dayton was March for total cases (417) as well as Chapter 7 filings (312), though July was the busiest month for just Chapter 13 (139).

On Trend with National Statistics

The Dayton office accounts for 24.4 percent of total bankruptcy cases in the Southern District of Ohio, which also includes Columbus and Cincinnati, with its percentage of Chapter 7 and 13 bankruptcy filings lining up with the average across all offices. More than 17,000 bankruptcy filings took place in the entire district in 2016.

Nationally, of the top 15 bankruptcy courts, the Southern District Ohio ranks 9th in total filings. The Northern District Illinois ranked 1st, with 44,937 total filings.

Districtwide, bankruptcy filings have decreased every year the past five years, generally by between 1,000 to 3,000 fewer cases each year. The decline has slowed, just like it has nationally.

Fewer than 800,000 people filed for bankruptcy in federal courts last year across the U.S. Compared to the 1.6 million bankruptcy filings nationally in September 2010, that’s a big drop in six years.

While the amount of U.S. bankruptcy filings in 2016 was the lowest out of any calendar year since 2006, the decrease in cases is slowing down. 2016 was the first calendar year since 2011 that the percent decrease no longer was double-digit.

A Look Ahead — Is Bankruptcy Right for You?

Despite the overall trend of bankruptcy on the decline, so far, for January 2017, the amount of bankruptcy filings in Dayton are up compared to January 2016. Eighty-one more cases were filed last month compared to the same month a year prior.

Chapter 7 is the clear front-runner in both national cases and locally. To figure out if you should file Chapter 7 or 13, Ohio has some income guidelines to follow. Chapter 7 is basically a “liquidation” of your assets, while Chapter 13 puts you on a repayment plan to your creditors. If you can pay back your creditors, typically Chapter 7 isn’t right for you.

You also want to make sure you’re always filing in good faith, or you could be looking at the court dismissing your case. Eliminate lavish spendings, and work on tightening your wallet. A luxury lifestyle in the midst of a bankruptcy proceeding isn’t going to look good to a judge.

We have some great budget basics that we’ve researched, such as splitting your expenses into categories like rent/mortgage, groceries, credit card payments, with some left over for savings and entertainment. Getting back on track does take time, though, so don’t be dismayed.

If you are struggling with the idea of filing for bankruptcy, we can help. We’ve successfully managed hundreds of bankruptcy cases, and can determine if bankruptcy is right for you. Our expertise includes bankruptcy, bankruptcy protection, bankruptcy and foreclosure, Chapter 7, Chapter 13, and unsecured and secured debt.

Contact us today for a free case review.

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Where are the Dayton, OH bankruptcy courts?

When you file a bankruptcy, you’ll need to visit the bankruptcy court. You may choose to file your bankruptcy in person with the clerk. You may also need to go to the court for hearings with creditors and the bankruptcy trustee.

If you’re filing with the help of an attorney, you may not have to go to the court in person. Your attorney will file your paperwork and may be able to handle any hearings without you being there. If you’re filing without an attorney, you do have the option of filing your case online. You’ll still need to attend any hearings in person.

So, where do you need to go?

Dayton is a part of the Southern District of Ohio. The court is located at:

120 W 3rd St #100
Dayton, OH 45402
(937) 225-2516

Getting There

The easiest way to get to the bankruptcy court is to drive. You can find paid public parking at:

  • Parking Management at 126 E 2nd St.
  • First St. Garage at 23 W First St.

There are also a number of public transportation options:

  • Take the 08, 19, 65, 66A, or 66B bus to W 4th St. at Wilkinson
  • Take the 01, 02, 04, 08, 18, or 41 bus to W 4th St. at Ludlow
  • Take the 09, 14, or X5 bus to N Perry St. at W 2nd St.

 

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Ohio Is One Of The Top 10 States For Bankruptcy Filings – Why?

Ohio One Of Top In Nation For Bankruptcy FilingsThe number of bankruptcy filings fluctuates over time. For example, filings went way up around the 2008 financial crisis and has slowly dropped off as the economy recovers, It also varies by geographic location; some areas struggle more financially than others or face seasonal financial issues. States in the south generally have higher rates of bankruptcy filings – residents there have historically had lower credit scores and the entire area struggles more financially than other parts of the country.

This year, Ohio’s bankruptcy rates come as something of a surprise – we’re in the top 10 for the highest percentage of bankruptcy filings in the country.

Ohio Bankruptcy Statistics In 2016

In a recent study, Nerdwallet analyzed bankruptcy filings in each state between April of 2015 and March of 2016. They found that the median bankruptcy rate across the country is 224 per 100,000 people – Ohio has 322 filings per 100,000 people. That made for a total of 37,402 personal bankruptcies in Ohio over that year.

The study also tracked bankruptcy filings at a smaller scale, analyzing the number of filings in counties with populations greater than 100,000 people. In Ohio, Cuyahoga County had the most filings out of any of the measured counties in Ohio – 444 per 100,000 people. That puts it at 53rd out of the 587 counties in the country with more than 100,000 residents. Three other Ohio counties were among the top 100: Summit with 407 per 100,000 people, Mahoning with 407, and Montgomery with 392 – that means Dayton.

Ohio isn’t alone in the midwest – Illinois and Indiana also make the top 10 states with the most filings. Otherwise, 6 of the top 10 are in the South and Utah rounds out the set.

Why Are There So Many Bankruptcies In Ohio?

Everyone was hit hard by the Great Recession, and the Midwest took a particularly big hit. The region has also recovered more slowly than other areas of the country. Ohio still has an unemployment rate that’s slightly higher than the national rate – 5% vs. 4.9%. And Ohio’s median income is lower than the national median – $48,849 vs. $53,482.

In other words, the Ohio economy is still lagging a bit behind the national economy. We’re still recovering from 2008 and a slow manufacturing sector have caused further economic troubles. In addition, Ohio has low population growth, which makes for weaker growth of the economy.

The good news is that Ohio is growing faster than any other state in the Midwest – the economy grew by 2.1% in 2014, compared to the US growth rate of 2.2%.

What Should I Do If I’m Struggling With Debt?

The good news is that you’re not alone. Lots of us here in Ohio have a hard time paying the bills – sometimes there just isn’t enough money to go around. And there are lots of steps you can take to make your finances more manageable.

First, it’s a good idea to reach out to your creditors if you’re struggling. They would much rather have you keep paying than go through the trouble of suing you for collection, repossessing your property, or foreclosing. Let them know that you’re having financial troubles and ask them what your options are for making your payments easier – a lower interest rate or a deferment on a couple of a payments, for example. You may even be able to settle your debt by offering a lump sum payment for less than you owe. This goes for your mortgage and auto debt, credit card debt, and medical debt.

If you’re struggling with student loan debt, you also have lots of options for making payment easier. The federal government offers a number of repayment plans based on your income and you can switch to one of those plans at any time, as long as your account is current. So if you know you’re going to fall behind, that’s something you should address right away.

Finally, you may want to consider a bankruptcy. As you can see, lots of people end up needing that financial protection. We all struggled through 2008 and sometimes it takes a serious move to get back on your feet. Bankruptcy can wipe out your unsecured debts and you’ll often be able to keep all of your property – it’s a powerful tool for resetting your finances.

The Bottom Line

Ohio is struggling to catch up with the rest of the country, but we’re going to get there. We’re a great state full of honest, hardworking people and we’ll continue to grow and prosper. We were hit hard in 2008 and that means many of us will need some help getting all the way back onto our feet – that’s why the bankruptcy laws exist. If you’re struggling with debt, please don’t hesitate to reach out for a free consultation to learn about your options for dealing with it.

 

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Should I use my retirement savings to pay down debts in Ohio?

Should You Use Your Retirement Savings to Pay Off Debt?

When you’re in a financial bind, it can be tempting to think about all of the assets you have and how you can use them to support you in the short term. This is especially true if you’re receiving harassing phone calls from creditors.

Making the Creditor Calls Stop: Should I Use My Retirement Funds?

Perhaps a creditor has convinced you that getting started on a payment plan can allow you to get back on track, and desperate to stop the phone calls, you consider pulling some funds out of your retirement account in order to make that first payment.

You might come across the idea of using your retirement accounts and borrowing against them in order to pay off debts innocently, but you need to realize all the potential implications of moving forward with this. This can be really tempting when you’re facing a financial struggle and it feels like you have no options.

Exemptions in Bankruptcy

If you’re in a financial bind, you might be thinking that you’ll have to give everything up if you eventually file bankruptcy. It is true that if you do have assets and you decide to file bankruptcy, some of these may be used to pay off creditors. What’s important for you to research ahead of time, however, are whether you can use any exemptions. It is not true that the bankruptcy trustee can take everything you own out from under you in order to pay down creditors. Although certain pieces of property are accessible through the bankruptcy court, both federal and state laws may protect certain items or accounts, including your retirement accounts.

Retirement accounts are almost always exempt in a personal bankruptcy case. This means you can file a case, discharge debt, and emerge on the other side with your retirement intact.

What Happens to My Retirement Funds in Bankruptcy?

Years spent building up your retirement savings, however, can easily fall apart if you attempt to cash out of a retirement account. This option can be even more tempting if you have recently lost your job and you have the option of rolling over your IRA to a new job or pulling the funds out. Bear in mind that there are also potential tax consequences of withdrawing the money from an IRA so you should always speak to your accountant first before doing this. You should weigh down how much you might be able to earn by keeping the money invested in an IRA against the cost associated with carrying credit card debt.

Reasons to Leave Your Retirement Funds Untouched

Taking money out of your retirement fund in order to pay down debt can also lead to other negative consequences. For example, if you pull the funds out of your retirement fund in order to get a creditor off your back, this seems like it addresses the issue in the short term but it can actually cause more problems down the road.

For example, if you are in so much debt that you are unable to get on top of the matter or if you withdraw so much out of your retirement account that you are facing tax penalties or other fees, you may find yourself worse off than you were before.

Another major benefit of leaving the funds inside your retirement account is that these funds are almost always protected in the form of bankruptcy exemptions. This means that even if you ultimately do need to file bankruptcy, your retirement funds will stay intact, giving you peace of mind that you will have access to those funds in the future even if you have to give up other assets in the discharge process. As you can see, there are significant costs associated with using your retirement funds in order to pay down debts.

It is generally not a good idea.

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Income Guidelines to Qualify for Chapter 7 Bankruptcy in Ohio

Ohio Chapter 7 Means TestUpdated June 1, 2016. 

There’s no way around it – dealing with debt is just plain hard. But there are a number of ways to handle it and get your financial health back on track. One of those ways is bankruptcy. It allows you to wipe out your debts and start over fresh. It’s not an easy decision to make and it’s not right for everyone, but it can really make a difference in the amount of debt you have to deal with. You may even end up debt free!

One of the first questions you need to tackle when filing for bankruptcy is whether to file under Chapter 7 or Chapter 13. Under Chapter 13, you’ll work with the bankruptcy trustee to create payment plan for the next five years, after which your remaining unsecured debt will be discharged. You’ll also have to repay your secured debt up to the value of the collateral. Chapter 7 bankruptcy is commonly referred to as “liquidation.” In Chapter 7, the bankruptcy trustee will liquidate, or sell, your non-exempt assets to pay back your creditors.

If you have large amounts of unsecured debt and few assets, you might want to file for Chapter 7. However, the court wants to ensure that only those truly in need of Chapter 7 relief file under that chapter. If you can pay back your creditors in a meaningful way, Chapter 7 is not for you. In other words, you may make too much money to file under Chapter 7. The court will make that decision based on the “means test.”

Step One: Median Income Comparison

The first step of the means test compares your average monthly income over the last six months to the median income in your state. For cases filed after May 1, 2016, the median income for a single earner in Ohio is $44,849 per year, or $3,737 per month. For a 2-person household, it’s $55,771 per year, or $4,648 per month. For larger households, check this chart on the Department of Justice’s website for official median income information.

Now, add up your income over the last six months and divide it by six. If the result is less than $3,737, you qualify for Chapter 7 bankruptcy. If not, you must continue to the next step of the means test.

If you earned more than the median income in your state for the six months prior to filing for bankruptcy, the court is concerned that you might actually be able to pay some of your debts, making liquidation unnecessary and unfair to creditors. To prove that you do, in fact, need to file under Chapter 7, you’ll need to show that you don’t have enough disposable income to make payments under Chapter 13.

Step Two: Disposable Income

Start with your average monthly income from the first step. You’ll subtract your allowable expenses to find your disposable income. Allowable expenses are based on national standards for living, health care, and car ownership costs and local standards for housing and transportation costs. For a single person, national standards allow $570 per month in living expenses for food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous expenses. That’s further broken down into $307 for food, $30 for housekeeping supplies, $80 for apparel and services, $34 for personal products, and $119 for miscellaneous expenses. A single person under the age of 65 can also deduct $54 for out-of-pocket medical costs and a single person over 65 can deduct $130. For larger families, you can find the allowed living expenses here.

For a single person in Miami County with a mortgage and a car, you can deduct $740 for your mortgage or rent and $457 for other housing expenses, like property taxes and maintenance.  and $226 for vehicle operating costs. Here’s the data for other counties and larger families.

You can also take out a deduction for the cost of a car. It’s $471 for a single car and $942 for two cars. If you have one car, you can deduct an additional $191 for the associated expenses; the deduction for two cars is $382. That’s meant to cover things like gas and insurance.

Finally, you can deduct payroll taxes, childcare expenses, court-ordered payments, and certain insurance expenses.

Step Three: Disposable Income and Unsecured Debt

Take your monthly disposable income from the first step and multiply it by 60. This figure represents the total amount you could pay to creditors through a Chapter 13 plan. Then, add up all of your unsecured, non-priority debt (credit card debt, medical debt, etc.). Divide the total by four; this is the court’s standard for significant repayment of your creditors. If the first number is less than the second, meaning that you will not have enough disposable income to repay 25% of your unsecured debt over 5 years, you qualify for Chapter 7. If you will have enough to pay the 25%, you’ll have to file under Chapter 13.

Totality of the Circumstances

Calculations aside, the court may examine your Chapter 7 filing by evaluating the totality of the circumstances surrounding your case. For example, you may drive a luxury car and live in big loft downtown; you might qualify for Chapter 7 by the numbers but you don’t actually need it. The court will probably require you to file under Chapter 13 in that situation. On the other hand, you may have more than $207 in official monthly disposable income and still demonstrate your need for Chapter 7 bankruptcy (due to a family or health matter, for example). In that case the court will allow you to file under Chapter 7 even if you fail the means test by the numbers.

Filing for bankruptcy is complex and you don’t want to make any mistakes. Check out an online means test calculator to see if you might be eligible for Chapter 7 bankruptcy. Before you file, talk to an experienced attorney to make sure you’re filing the right way.

 

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