The most important step a prudent practitioner needs take is to make sure his/her billing is done as contemporaneously as possible to the actual work he/she does. 

 Most of us only accept representation when there is an acceptable retainer posted, so this shouldn’t be an issue right?  Wrong.  We’ve all had the case where we’re far enough into the litigation that the initial retainer is exhausted but we continue representing the client; whether that’s because we want to see the case through and believe the client will pay later or a court will not let us withdraw from representation.  Here contemporaneous collection is crucial.

 Time to drop some law!  11 U.S.C. § 547 discusses “preferences,” sounds like a good thing right??? Not exactly Batman!  In bankruptcy parlance preference describes certain types of transfers of bankruptcy estate property.  Of particular importance to non-bankruptcy practitioner is §547(b) which covers transfers of debtor property made within 90-days of initial filing. 

 Alright legal-beagles, let’s go into HYPO Mode!  Let’s say DR Attorney Bill Able-affair is representing Batman in a divorce.  Despite Bill’s best efforts and invoicing, Batman gets further and further behind on his attorney’s fees (Bill isn’t aware of Mr. Wayne’s, er, Batman’s fortune and didn’t get a large enough retainer).  Maybe it’s because Bill Able-affair has a soft-spot for his client, or maybe it’s because the magistrate/judge won’t let Bill out of the case because too much time has elapsed.  Regardless, Bill is successful in obtaining the divorce for Batman but is woefully unsuccessful at reducing the spousal support obligation, looses the big screen LED-3D TV, and the Bat-Mobile!  Batman is upset but finally pays his $10,000 invoice in full six-months late.  Sixty days later, Batman files for bankruptcy.  The bankruptcy trustee at that point sees the $10,000 having been paid to Bill Able-affair, realizes that other creditors weren’t paid the same and yells “Preference! Preference!”  All of a sudden Bill is being dragged in to Federal Court and his $10,000 earned fee is avoided by the bankruptcy trustee as a preference payment in violation of 11 U.S.C. § 547.

 The solution, § 547(c)(1).  Had Bill Able-affair been collecting his fees substantially contemporaneous with when those fees were incurred they would’ve been protected! 

 So in addition to reading § 327, take a look at § 547 to make sure you and your firm are keeping funds you’re otherwise entitled to!

-Erik R. Blaine

It’s that time of year where you may be looking at how much money the government took out of your pay as you go to file your tax returns.  You may be among the very lucky that are getting money back from the government in the form of a tax refund.  So what should you do with this tax refund???

• Go have a big party? 
• Maybe a night on the town with your spouse/significant other?
• Pay money towards one of the credit cards or medical bills? 

All those ideas will quickly see your tax refund slip through your fingers just as quickly as you received it for no additional value.  If you’re behind on your bills you can use that tax refund to pay for a bankruptcy.  Let’s say you owe $50,000 on back bills, credit cards, even a mortgage payment. You can take your tax refund money, say $1,500, and use it to payoff your $50,000 through a Chapter 7 or Chapter 13 bankruptcy!

 $1,500 = $50,000???? Yes, if a Chapter 7 bankruptcy is right for you, your $1,500 could get rid of $50,000 or more of debt!

 Erik R. Blaine and the Attorneys at Behnke, Martin & Schulte are here to assist you in relieving your debt burdens and getting you back on your financial feet quickly!  Fill out the form on this page, Call us at 937.435.9999 or Stop on in for your Free Initial Consult today.

- Erik R. Blaine, Esq.

 Title 11 of the U.S. Code is probably only read by bankruptcy practitioners and those curious few with more spare time on their hands than they know what to do with.  However, I would strongly encourage every attorney out there to read through it, pick up an cliff-notes version, or at the very least take a friendly bankruptcy practitioner out for lunch and ask some questions!

 I say this, because 11 U.S.C. § 327 deals with the appointment of professionals, as does Fed. R. Bankruptcy 2014 and, in the Southern District of Ohio, L.B.R. 2014-1.  To date, the application to appoint professionals has been primarily viewed as pertaining mainly to personal injury, worker’s compensation, social security and probate attorneys.  However, they are just as applicable to family law and other practitioners, and there is a strong push to have their applicability enforced to these individuals.

 What much of these rules boil down to, is that unless appointed by the Court as a professional, attorneys (professionals) cannot accept payment from debtors when that payment is part of an active bankruptcy estate.  Any such payments received may be disgorged by the bankruptcy trustee if attorneys don’t do their due diligence.

 So how do DR and other retained professionals avoid this wholly undesirable outcome???  Well the process is actually pretty straight forward!  Just SCAN! Search, Confirm, Apply, Notify.

These are just the basic steps needed to avoid the disgorgement of earned fees.  Quite a bargain when you think that to check this all may cost you 8-cents and 10 minutes of time!

There’s no easy way to approach debt problems and possible bankruptcy.  However, you’re not alone.  In 2010 alone 1,536,799 people filed personal bankruptcy!  That’s almost three times as many as filed in 2005!

In Ohio and the surrounding region, the average bankruptcy filer has between $119,000 and $166,00 worth of debt[1].  There’s no minimum or limit to how much debt is right for bankruptcy.

So what’s this all mean, it means you’re not alone.  In addition to being able to file bankruptcy, there are debt and credit support groups out there.  Utilizing the internet for help you can find support groups including internet support groups, forums and survivors blogs.

Though, following the model of Alcoholics Anonymous, there is also Debtors Anonymous.  Today Debtors Anonymous is active in over 15 countries!  There are numerous meetings taking place weekly through Ohio.

Remember, never think you’re alone, that no one can possibly understand what you’re going through, or that it’s hopeless.  Not only are there legal remedies to help get you and your family back on your feet, but there’s emotional and other services in place to help.

Creditors have taken a toll on your finances, don’t let them take any more!

 In a Chapter 7 Bankruptcy if you are current on your car payments and you “don’t have too much car” you’ll get to keep it.  When people lose their car in a bankruptcy it usually because they:

 What I mean by “have too much car” is that if you’re filing a Chapter 7 Bankruptcy, you should be driving a new Cadillac or Mercedes.   For most people, saving your car is key because without it you can’t get to work, can’t pick up your kids from school, can’t get to the doctors.  We know this and will provide you with the best options to not only keep your car if possible but also to get another car if necessary.

  What if you’re behind on your car payments???  If you are behind on your car payments, our attorneys at Behnke, Martin & Schulte may be able to save your vehicle through a Chapter 13 bankruptcy!  We can even “cram down” the obligation if you owe more than the car is worth!

-Erik Blaine

These unstable economic times impact everyone differently, we can find the right solution for you.  At Behnke, Martin & Schulte we look at your specific situation, and can guide you through all of your options from credit counseling, mortgage modification, or bankruptcy.  Our attorneys can help you:

Free Initial Consult

We want to help you and your family get back on your feet and restore your financial freedom.  To help you we will never charge you for an bankruptcy or credit initial consult!  Whether that consult be in our offices, at the coffee shop or in your home.

To see how Behnke, Martni & Schulte can help you today call us at (937) 435-9999 or fill out the Free Case Review form on this page.

As individuals and families, the two primary types of bankruptcies filed are either Chapter 7 or Chapter 13 bankruptcy.  While both result in the discharge, or elimination, of debt, they each go about it differently.

 Let’s look at some of the basic factors we at Behnke, Martin & Schulte consider when reviewing which bankruptcy might be right for you:

 Chapter 7 (Liquidation Bankruptcy)

  – Your debts are mainly unsecured.  You are unemployed or your income is barely enough to cover your necessary expenses (food, clothing, shelter, gas, electric, etc.).  Chapter 7 bankruptcy is a relatively quick process designed to give you a clean slate in months, not years.  Majority of all bankruptcy filers qualify for Chapter 7 bankruptcy and are able to get back on their feet in months, not years!

 Chapter 13 (Regular Income Bankruptcy)

  – You have assets in which you have equity built up, but may be behind a few payments or just barely current on, whether they be a car, house, boat, etc.  You have regular income from a job and just find yourself unable to keep up payments on some debts.  Unlike Chapter 7, Chapter 13 bankruptcy lets you get caught up on some delinquent/back debt and still keep your property.  Chapter 13′s do this by having your attorney create a reorganization plan for you to complete over the next 36 to 60 months of payments.  This means you make one monthly payment to the Trustee instead of numerous payments to creditors!  Creditors also cannot contact you directly for 3 to 5 years!

Find out which might be right for you -

Simply fill out the form on this page for a free initial consult and to have our attorneys review your case for free.

- Erik R. Blaine, Esq.

Each year millions of individuals and families find themselves feeling that no matter what they try to do, they can’t stay afloat financially whether it’s from the loss of employment, hospitalization, or countless other factors.

Many find that the only way to get back on their feet again is to file for bankruptcy and use the power of the United States Constitution to help themselves.

Remember, to creditors it’s just money, to you it’s your life!

At Behnke Martin & Schultwe e, strive to provide you the highest quality services possible so you can get you out from under suffocating debt! 

Simply fill out the form on this page for a free initial consult and to have our attorneys review your case for free.

- Erik R. Blaine, Esq.