New numbers detail the extent of bankruptcy filings in the last year. According to the Administrative Office of the U.S. Courts, the number of non-business bankruptcy filings in the 12 month period ending September 30, 2011, were as follows:
Chapter 7: 1,001,813
Chapter 13: 413,699
Chapter 11: 1,811
Breaking down the numbers even further, the National Bankruptcy Research Center and Professor Ronald Mann, of the Columbia Law School, found that the top states in total number of filings were:
1. Nevada
2. Georgia
3. Utah
4. Tennessee
5. California
They further went on to analyze filings by county and found that the top five filing counties were the following:
1. Shelby County, TN (Memphis)
2. Riverside County, CA (Riverside)
3. DeKalb County, GA (Decatur/Atlanta)
4. Clark County, NV (Las Vegas)
5. San Bernardino County, CA (San Bernardino)
Interestingly enough, they've also found that the top 10 counties so far in 2012 are all located Georgia and Tennessee.
Filing bankruptcy can be complicated and confusing. For more information on Chapter 7 and Chapter 13, or for a free consultation, call me at 330-605-3508 or visit my website at http://www.ohiobankruptcyrelief.com/.
Wednesday, April 18, 2012
Sunday, March 18, 2012
The Myth of Medical Bills in Bankruptcy
One surprising myth that seems to persist is that medical bills are not dischargeable in bankruptcy. Although the origin of this myth is uncertain, it's one that I hear repeated by people who come into my office. The easy response is that, of course, medical bills are dischargeable.
Medical bills are one of the main reasons that people seek bankruptcy protection. In fact, a report issued by the American Journal of Medicine estimated that over 60% of people in bankruptcy were there solely due to medical bills. Just last year, the Kaiser Commission on Medicaid and the Uninsured issued a report that estimated the number of uninsured Americans had reach 50 million. Many people who are uninsured (or underinsured) can suddenly find themselves with tens of thousands of dollars in medical bills due to an accident or illness. And most of those who cannot afford insurance have no ability to ever re-pay what is owed.
One of the problems with the persistance of this myth is that some people who might be otherwise best advised to seek bankruptcy protection may not seek the help that they need. It is always best to seek the advice of an experienced bankruptcy attorney to review your situation and see if bankruptcy is the right answer.
Filing bankruptcy can be complicated and confusing. For more information on Chapter 7 and Chapter 13, or for a free consultation, call me at 330-605-3508 or visit my website at http://www.ohiobankruptcyrelief.com/.
Medical bills are one of the main reasons that people seek bankruptcy protection. In fact, a report issued by the American Journal of Medicine estimated that over 60% of people in bankruptcy were there solely due to medical bills. Just last year, the Kaiser Commission on Medicaid and the Uninsured issued a report that estimated the number of uninsured Americans had reach 50 million. Many people who are uninsured (or underinsured) can suddenly find themselves with tens of thousands of dollars in medical bills due to an accident or illness. And most of those who cannot afford insurance have no ability to ever re-pay what is owed.
One of the problems with the persistance of this myth is that some people who might be otherwise best advised to seek bankruptcy protection may not seek the help that they need. It is always best to seek the advice of an experienced bankruptcy attorney to review your situation and see if bankruptcy is the right answer.
Filing bankruptcy can be complicated and confusing. For more information on Chapter 7 and Chapter 13, or for a free consultation, call me at 330-605-3508 or visit my website at http://www.ohiobankruptcyrelief.com/.
Wednesday, February 29, 2012
How Settling With Credit Card Companies Can Increase Your Taxes
Oftentimes, clients come into my office confused about their options. They have a general idea about what bankruptcy is and how it works, yet they are bombarded daily with advertisements about settling their debts without bankruptcy. What they never hear is that settlilng with credit card companies may mean higher taxes in the long run.
When banks, collection agencies or other lenders settle debts for less than the balance due, they are required to file a Form 1099-C with the IRS. The Form reports the cancellation of debt and the amount forgiven (the difference between what you owe and what you settle for) is considered income to the debtor.
While some debtors may feel better about settling the debts without filing for bankruptcy, they need to understand that there are real tax implications for doing so. So how is bankruptcy different? Debt that is discharged in a bankruptcy is not subject to taxation as forgiven debt. This is because technically the debt is not forgiven, your creditors are just prohibited from collecting on it.
In the end, many people may find that they've traded in a bad creditor for the worst creditor of them all, the IRS. It's important to speak with an experienced bankruptcy attorney about whether or not filing bankruptcy is your best option.
Filing bankruptcy can be complicated and confusing. For more information on Chapter 7 and Chapter 13, or for a free consultation, call me at 330-605-3508 or visit my website at http://www.ohiobankruptcyrelief.com/.
When banks, collection agencies or other lenders settle debts for less than the balance due, they are required to file a Form 1099-C with the IRS. The Form reports the cancellation of debt and the amount forgiven (the difference between what you owe and what you settle for) is considered income to the debtor.
While some debtors may feel better about settling the debts without filing for bankruptcy, they need to understand that there are real tax implications for doing so. So how is bankruptcy different? Debt that is discharged in a bankruptcy is not subject to taxation as forgiven debt. This is because technically the debt is not forgiven, your creditors are just prohibited from collecting on it.
In the end, many people may find that they've traded in a bad creditor for the worst creditor of them all, the IRS. It's important to speak with an experienced bankruptcy attorney about whether or not filing bankruptcy is your best option.
Filing bankruptcy can be complicated and confusing. For more information on Chapter 7 and Chapter 13, or for a free consultation, call me at 330-605-3508 or visit my website at http://www.ohiobankruptcyrelief.com/.
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