We are a bankruptcy attorneys located in Eastgate Ohio.
Not sure what bankruptcy is? Bankruptcy is a process in which consumers and businesses can eliminate or re-pay some or all of their debts under the federal protection of a stay through the bankruptcy court. Basically there are two types of chapters available for the consumer; Chapter 7 bankruptcy and Chapter 13 bankruptcy.
CHAPTER 7 BANKRUPTCY
Chapter 7 bankruptcy is designed to clear off or discharge all of your unsecured debt. This will give you a fresh financial start. Creditors can no longer collect on debts by telephone calls or court proceedings. If there were secured items that you wish to keep such as your home or vehicle you would re-sign on these items under a reaffirmation agreement.
A reaffirmation agreement is a bankruptcy document that you would sign to reaffirm debts that you do not want to discharge through your case. The terms of your loan stay the same. By reaffirming these debts, they do not get discharged through your case. These debts will report to the credit reporting agencies and help to re-build your credit.
Chapter 7 Bankruptcy is also referred to as a “liquidation bankruptcy” because the trustee may take and sell or liquidate some of your property to pay back some of your debt. However, you will be able to keep most if not all of your property due to the protection of the bankruptcy exemptions. These include such things as your home, vehicle, cash on hand, jewelry, household items, retirement plans, and most other assets. The exemptions vary so you should contact our Eastgate, Ohio bankruptcy firm for further details.
Are you eligible for a Chapter 7 Bankruptcy. Not everyone can qualify for Chapter 7, there are several factors to consider, but most can qualify. Contact our office today for your free consultation to see if you qualify for Chapter 7 Bankruptcy.
CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy is also referred to as a “wage earner” plan because in order to file for Chapter 13 protection you must have a reliable source of income so that you can repay all or a portion of your debt.
In Chapter 13 bankruptcy you will pay back a percentage of your unsecured debts, this can range from 1% to 100% depending on your individual situation.
Chapter 13 is also designed to stop a foreclosure or vehicle repossession. If you file for Chapter 13 all collection actions must stop (actually this applies to Chapter 7 as well, you can buy more time by filing Chapter 7 if you do not have the income to keep the home but are not quite ready to leave the home yet). You would then be able to make up the payments that you were behind through your chapter 13 plan over the next three to five years.
As mentioned above if you file for Chapter 13 you must be in the case for a minimum of 3 years and a maximum of 5 years. It will be up to the creditors to file a claim in order to be paid during this case. During this time period you will repay a percentage of your unsecured debts, your secured debts and any missed payments you had on your house or vehicle. At the end you will receive a discharge as to all remaining debt.
For more information check out our website at Keegan
If you are thinking of bankruptcy, contact our Eastgate, Ohio bankruptcy attorneys today. We offer a free consultation, fair fees and monthly payment plans.