We are bankruptcy attorneys located in Eastgate, Ohio. Our main focus of practice has been bankruptcy for over 27 years.
Are you struggling with debt? Of course if you are considering bankruptcy it probably means that you are looking at debts with you are unable to pay. Bankruptcy in most cases may help you get rid of your debts and give you a fresh financial start.
Chapter 7 and Chapter 13 are the most common consumer chapters. Each chapter has its own rules so you must know which chapter best fits your circumstances. At our office you will be able to sit down with a knowledgeable attorney and he will be able to advise which chapter is best for you.
Most thinking of bankruptcy would prefer to be able to file Chapter 7. This is the most common filing for most consumers. Under Chapter 7 you will be able to discharge all of your unsecured debts under the bankruptcy code. A discharge is a federal court document releasing you from your debts. This document automatically releases you from most of your unsecured debts. Debts which cannot be discharged include such things as student loans, newly incurred tax debt, spousal or child support and court costs for criminal charges. As to your secure debts such as your home, vehicle or jewelry you will have to make a decision if you will want to resign on these debts through a reaffirmation agreement or surrender them. A reaffirmation agreement is a document basically re-entering the terms of the original debt, once you sign the reaffirmation agreement this debt will be excluded from your bankruptcy and will report going forward on your credit. If you decide to surrender your collateral this debt will be discharged through your case.
Chapter 7 is sometimes referred to as a liquidation bankruptcy because the trustee may take some of your assets, but most bankruptcy attorneys refer to Chapter 7 as a simple or straight bankruptcy, because most assets are covered under state regulated exemptions and are protected.
Chapter 13 bankruptcy is designed for those who are over the income limit for Chapter 7 or are behind on their home or vehicle and would like to retain these going further, or some who just do not like the idea of not paying their debts, but just cannot make the minimum monthly payments and would like to stop all interest and charged going forward. Chapter 13 is a re-payment plan, you will pay back between 1% to 100% of your debts depending on your individual circumstances. An unsecured creditor cannot charge you interest during a Chapter 13. Once you complete your case you will be receive you discharge and all debts will be discharged.
Once you receive your discharge creditors are not allowed to collect on these debts in any way or form. They cannot send you a bill, they cannot call you, they cannot take you to court, they cannot garnish your wages. You are free and clear from these debts and you have gotten your fresh financial start! Congrats! Now how to stay that way and re-build your credit going forward. The most important thing is to make any payments for debts that you reaffirmed on on time and try not to let debts get into collection. Your credit will improve in no time.
Bankruptcy is serious decision, call today for your free consultation to see if it is the right one for you 513-752-3900.
Contact your Eastgate, Ohio bankruptcy attorney today!