We are bankruptcy attorneys located in Eastgate, Ohio.
Are you thinking of filing for bankruptcy protection? If so, you probably have some questions regarding the issue.
At our office we offer a free consultation. At this free consultation you will be able to discuss with a qualified experienced attorney your current situation and ask any questions you may have. The attorney will at this free consultation advise you which bankruptcy chapter you will qualify for.
There are several bankruptcy chapters available under the federal bankruptcy code, however, Chapter 7 and Chapter 13 are the most common among general consumers.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is also referred to straight bankruptcy or liquidation bankruptcy. This chapter of bankruptcy is available for most consumers. Under Chapter 7 Bankruptcy protection you will be able to discharge all of your unsecured debts under the bankruptcy code. A discharge is a bankruptcy document which deems your debt non-collectable by creditors. Once you file for Chapter 7 Bankruptcy protection all collection practices by creditors must stop. This includes but is not limited to phone calls, mail harrassment, court proceedings and garnishments.
Chapter 7 Bankruptcy is sometimes referred to as a liquidation bankruptcy because the Chapter 7 Trustee may take some of your assets and sell them to pay on your debts. However, most people are happy to find out that they are able to keep most of their assets as there are exemptions to protect these assets. There are cases, however, where you may have equity and have to pay back some to the Trustee. Most people are happy to pay back this small amount compared with the debt that they are discharging through the bankruptcy.
In Chapter 7 Bankruptcy you will be able to keep your home and vehicle. You must however, be current on your payments on these assets if you wish to keep them. The creditor will have a reaffirmation agreement for you to sign and this will deem the debt non-discharged through the bankruptcy. This document will also guarantee that the creditor will continue to report your payment history to the credit reporting agencies, thus rebuilding your credit after your bankruptcy filing.
As many as 65% of consumer bankruptcy filings in the US are Chapter 7 Bankruptcy filings.
Chapter 13 Bankruptcy
In Chapter 13 Bankrutpcy also referred to as a wage earner plan you will retain ownership and possession of all assets that you wish to keep. But you may also surrender assets through Chapter 13 Bankruptcy. In Chapter 13 Bankruptcy you must have the income to support the case as you will be making monthly payments to the Chapter 13 Trustee and they will be disbursing your funds to your creditors for you. It is up to the creditor in a Chapter 13 to file a claim in order to be paid.
Chapter 13 Bankruptcy can stop a foreclosure. If you are in foreclosure and want to save your home you can file a Chapter 13 Bankruptcy and stop your foreclosure. Your mortgage holder cannot object to your bankruptcy filing and must file a claim in your case to be paid. Chapter 13 Bankruptcy generally lasts for a three to five year period. During this time you will be able to make up all your missed payments and current payments as they come due.
If you are behind on your vehicle, Chapter 13 Bankruptcy can also stop this and give you time to make up your payments over the three to five year period.
For more information check out our website at https://keegancolpa.com
All cases are unique so contact our Eastgate, Ohio office today for your free bankruptcy consultation.