Law Offices of Barbara Quinn Smith

02/17/2025

With the Department of Education potentially shutting down, now is the time to download your student loan data. The attached document provides instructions on how to do that.

11/13/2023

Many people don't know that social security can be taken to pay student loans. So many of my clients, including ones in their 50s and 60s, are buried in student loan debt. The federal government is doing what it can to offer solutions, but there is no guarantee how long the new protections will be offered.
Right now, all defaulted federal loans can be taken out of default status and put into a reasonable repayment program. My office can help people figure out the program that works best for them, and fill out the appropriate paper work. Please share this link if you know someone who needs assistance - the cost is $99. There is also an option for one on one counseling if desired.

Student Debt Solution

07/26/2023

Questions about the means test? We have answers!

03/24/2023

Am I eligible for bankruptcy? I get this question quite often. The truth is that most people are eligible for bankruptcy, but the type of bankruptcy that they are eligible for is dependent on what is referred to as the "means test".

The means test is used to determine whether a debtor is eligible to file for Chapter 7 bankruptcy based on their income and expenses. The test compares the debtor's household income to the median income in their state for a household of the same size. If the debtor's income is below the median, they automatically pass the means test and are eligible to file for Chapter 7 bankruptcy.

If the debtor's income is above the median, they must complete a more detailed calculation that takes into account their expenses, including allowable deductions for things like housing, utilities, and health care. The expenses are based on IRS standards and local cost-of-living data.

If, after calculating their expenses, the debtor has little or no disposable income left, they may still qualify for Chapter 7 bankruptcy. However, if their disposable income exceeds certain thresholds, they may be required to file for Chapter 13 bankruptcy instead, which involves a repayment plan to creditors.

It's important to note that the means test is only one factor that is considered in determining eligibility for Chapter 7 bankruptcy, and that other factors such as the type of debt and the debtor's financial situation will also be taken into account.

If you live in northeastern Ohio and are thinking about filing for bankruptcy, call us at 440-354-4010 for a free initial consultation.

Representing consumers, investors, and those contemplating bankruptcy.

03/22/2023

Occasionally I receive a call from a panicked client who has read something on google that makes them believe that some terrible thing is going to happen in their bankruptcy case. If you are googling the law, keep in mind that your mother and Abraham Lincoln were both right - don't believe everything you read on the internet.

Bankruptcy is a complex area of law that involves various legal concepts and procedures. While Google searches can provide some basic information, relying solely on search results to understand legal concepts and procedures can be risky.

Here are some reasons why relying solely on Google searches for legal advice about bankruptcy is a bad idea:

Inaccurate or Outdated Information: Legal information found on the internet may not be accurate or up-to-date. The law is constantly changing, and what may have been true in the past may not be applicable anymore.

Lack of Context: Legal concepts and procedures can be complex and nuanced. Google searches may provide general information, but they may not provide enough context to fully understand the legal issue at hand. Despite bankruptcy being a federal law, most of those nuances are based on state law, which comes in 50 varieties.

No Substitute for Professional Advice: Bankruptcy law can have serious consequences for your financial future. It is important to seek the advice of a licensed attorney who can provide personalized guidance based on your specific situation.

While Google searches can be a helpful starting point for learning the basics about bankruptcy, they should not be relied on as a substitute for professional legal advice from a licensed attorney. If you are considering filing for bankruptcy and live in northeast Ohio, give us a call at 440-354-4010.

03/21/2023

When the IRS issues a lien, it means that they have a legal claim to your property, including any real estate, financial assets, and personal property, as collateral for unpaid tax debts. The lien is a public record, and it can affect your credit score and ability to obtain credit, loans, or sell any property.

The IRS will typically send a notice of federal tax lien to the taxpayer's last known address, which outlines the amount of unpaid taxes owed and provides instructions on how to resolve the debt. If the debt is not resolved, the IRS may proceed with enforced collection actions, such as seizing assets, garnishing wages, or levying bank accounts.

It is important to address a tax lien as soon as possible to avoid further penalties and interest. The taxpayer may be able to resolve the tax debt through an installment agreement, an offer in compromise, or by filing for bankruptcy. It is advisable to consult with a tax professional or an attorney for guidance on the best course of action.

03/20/2023

Seven Things To Know About Bankruptcy:

1. Types of Bankruptcy: There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 is a liquidation bankruptcy, which means that non-exempt assets are sold to pay off debts, while Chapter 13 is a reorganization bankruptcy, which involves a repayment plan over a period of three to five years.

2. Eligibility: To file for bankruptcy, you must meet certain eligibility criteria. For example, to file for Chapter 7 bankruptcy, you must pass the means test, which compares your income to the median income in your state. To file for Chapter 13 bankruptcy, you must have a regular income and debts below a certain (very high) threshold.

3. Credit Counseling: Before you can file for bankruptcy, you must complete a credit counseling course from an approved provider. This course will help you understand your options for managing your debts and will also help you develop a budget.

4. Automatic Stay: When you file for bankruptcy, an automatic stay goes into effect, which stops most collection actions against you, including foreclosure, repossession, and wage garnishment.The only thing that will stop collection activity from your creditors is actually filing the Petition with the court.

5. Bankruptcy Discharge: Once you have completed the bankruptcy process, you will receive a bankruptcy discharge, which eliminates most of your debts. However, some debts, such as student loans and taxes, may not be dischargeable.

6. Credit Impact: Filing for bankruptcy may have a negative impact on your credit score and will remain on your credit report for 10 years. However, it will also provide you with an opportunity to start rebuilding your credit. If your credit score is already low, it can only go up in the first year after a bankruptcy filing.

7. Legal Assistance: Filing for bankruptcy can be complex, so it is recommended that you seek the assistance of a qualified bankruptcy attorney who can guide you through the process and ensure that your rights are protected. Doing it yourself can result in the loss of property.

If you are considering filing bankruptcy and live in Northeastern Ohio, give us a call at 440-354-4010 to schedule a free consultation.

03/17/2023

A living will is a legal document that specifies a person's medical care preferences in the event that they become unable to communicate their wishes due to illness, injury, or incapacitation.

A living will outlines a person's preferences regarding end-of-life medical treatment, such as life support, resuscitation, and artificial nutrition and hydration. It can also address issues such as pain management, organ donation, and funeral arrangements.

Having a living will in place can provide peace of mind for both the person creating the document and their loved ones, as it ensures that their wishes are known and respected in the event of a medical emergency. It is important to note that a living will is only used if the person is unable to make their own medical decisions, and it is not the same as a traditional will, which deals with distribution of property after death.

A living will is an important part of any estate plan. If you want to discuss estate planning issues, contact us at 440-354-4010 for a free consultation.

03/16/2023

One of the most common questions people have when they consider bankruptcy is "Will I lose my house or car?" In most cases, the answer is no.

Filing for bankruptcy can affect your assets depending on the type of bankruptcy you file and the exemptions available in your state. Chapter 7 bankruptcy, also known as liquidation bankruptcy, may require you to give up non-exempt assets to pay off creditors. In Ohio, you can protect up to $161,375 of equity in your home, double that if you own your home jointly with a spouse or someone else. You can also protect up to $4,450 of equity in a vehicle. In addition, Ohio has a "wildcard" exemption of $1,475 that can be used to protect any of your property.

Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows you to keep your assets but requires you to pay off a portion of your debts over a three to five-year period through a court-approved repayment plan.

It is important to consult with a bankruptcy attorney to determine which type of bankruptcy is best for your situation and to understand how it may affect your assets. An attorney can also help you understand the exemptions available in your state and assist you in protecting your assets to the fullest extent possible under the law.

If you are considering bankruptcy and reside in northeastern Ohio, give us a call at 440-354-4010 to schedule a free consultation.

03/15/2023

When the Internal Revenue Service (IRS) issues a levy, it means that they are legally seizing your property to satisfy an outstanding tax debt. The levy allows the IRS to take property or assets that belong to you, including bank accounts, wages, retirement accounts, and real estate.

Here's what typically happens when the IRS issues a levy:

You receive a notice: The IRS is required to provide you with notice before they issue a levy. You will typically receive a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice will explain what you need to do to prevent the levy from taking place, such as paying the outstanding tax debt or setting up a payment plan.
The levy takes effect: If you do not take action to prevent the levy, the IRS will begin the seizure process. They may seize funds from your bank accounts or garnish your wages. In some cases, they may also seize other property, such as your car or real estate.
You have rights: Even after the levy takes effect, you still have rights. You have the right to appeal the levy, and you can request a Collection Due Process hearing. This hearing allows you to present your case and potentially prevent the levy from continuing.
The levy is resolved: Once the levy is in place, you will need to work with the IRS to resolve the outstanding tax debt. This may involve paying the debt in full, negotiating a payment plan, or settling the debt for less than the full amount owed.
It's important to take any notice from the IRS seriously and to act quickly to prevent a levy from taking place. If you're unsure how to proceed, consider seeking the advice of a tax professional or attorney.

07/19/2022

Bankruptcy improved this debtor's credit score in months. Far from trashing credit scores, bankruptcy improves credit score.

03/14/2022

It's okay to go and seek help for your finances.
It's okay to use our Federal laws to reorganize your debts.
It's never okay to judge someone for asking for help.
If you need help, please, seek out a reputable Bankruptcy Attorney to show you how it works and why it doesn't mean you will never have credit again.