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Archive for April, 2011|Monthly archive page

Home Values Keep Falling

In Uncategorized on April 22, 2011 at 9:38 am

Local property values fell by eight percent compared with last year’s values. This from a new report by the Hamilton County Auditor. Values declined in nearly every county neighborhood. Other reports show that home sales and prices continue to fall across the Greater Cincinnati and Northern Kentucky region. Forty-five percent of all sales in March were lenders selling properties recently in foreclosure or a short sale.

All this is bad news from people trapped with a house payment that can no longer afford. Declining values make it more difficult to borrow or sell their homes.

Bankruptcy can help in a couple of ways. Chapter 13 gives people a way to catch up missed house payments. It some cases it allows the home owner to eliminate a second mortgage. Chapter 7 protects the owner from the mortgage debt if the owner wants to give up the house.

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Family Matters

In Uncategorized on April 12, 2011 at 9:15 am

I see people every day who get into financial trouble when dealing with family. One problem involves paying back loans from family before filing for bankruptcy. The second consists of giving loans or paying bills for family. I’ll talk about each of these two problems below.

You may want to pay back family member for a loan. The payment often come from tax refund. But paying family back before bankruptcy causes a problem. The law allows the bankruptcy trustee to sue any family member who received $600 or more loan payback or more during the last 12 months. Avoiding this problem is simple. Pay back the loan after you file bankruptcy. Not before.

Another common problem is helping family. Parents help children, girl friends help boy friends, adult children help parents. Lending money or paying debts for family are one way to get in trouble. Another is to let someone use your credit card. I estimate that one out of five of my clients get into financial trouble as a result of helping family. The worst part is that people ruin their credit as a result. The person who tries to help ends up filing a bankruptcy. Don’t extend your credit to family because it can cause a problem for you later. You have to learn to say no.

If these problems sound familiar, call me. I may be able to help you.

Many Can’t Keep Up With Medical Expenses

In Uncategorized on April 1, 2011 at 9:06 am

The number of people who skipped seeing a doctor so they could pay for food and housing more than doubled during the last five years. the number who went without prescription medications doubled during the same period. Overall, 16%of adults in the Cincinnati area went without medical care, up from 10% in 2005. 25% of adults in the region having trouble paying medical bills. This information comes form a survey conducted by the Health Care Foundation of Greater Cincinnati and the University of Cincinnati.

Filing bankruptcy helps people keep up with medical expenses. It eliminates past medical and other debts. That allow them to pay ongoing expenses without having to make debt payments at the same time.