Are you struggling with debt? The phone is ringing off the hook with creditor calls, the mailbox is overflowing with bills. Is it all getting too much to handle? You have tried but the struggle is never ending. It seems as soon as you start to get ahead something else comes up and gets you behind. Bankruptcy may be the answer to your financial troubles.
At our office we offer a free consultation. At this free consultation you will be able to sit down with a qualified experienced bankruptcy attorney and discuss your current situation and ask any questions you may have. The attorney will at this free consultation advise which chapter will be best for you.
There are several chapters of bankruptcy available under the federal bankruptcy code, however, Chapter 7 and Chapter 13 are the most common filings among general consumers.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is also referred to as straight bankruptcy or liquidation bankruptcy. This chapter 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 document issued by the federal court which deems your debt non-collectable by creditors. Once you file for Chapter 7 protection all collection practices by creditors must stop. This includes but is not limited to phone calls, mail harassment, court proceedings and garnishments.
Chapter 7 is sometimes referred to as a liquidation bankruptcy because the Chapter 7 Trustee may take some of your assets and sell them to pay 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. Call our office today for your free consultation to discuss your individual situation.
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 the bankruptcy filing.
As many as 65% of consumer filings in the US are Chapter 7 Bankruptcy filings.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy also referred to as a wage earner plan you will allow you to retain ownership and possession of all assets that you wish to keep. But you may also surrender assets through Chapter 13, if you wish. In Chapter 13 Bankruptcy you must have 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 Bankruptcy to file a claim in order to be paid.
Chapter 13 can stop a foreclosure. If you are in foreclosure and want to save your home you can file a Chapter 13 and stop the foreclosure. Your mortgage holder cannot object to your bankruptcy filing and must file a claim in your case to be paid. Chapter 13 generally lasts for a three to five year period. During this time you will be able to make up all your missed payments and the Trustee will disburse your regular house payment. This is a good thing because at the end of your case the trustee will file a notice with the Court that all payments are current and deems that your mortgage holder cannot come back on you for additional fees incurred while you were under bankruptcy protection.
If you are behind on your vehicle, Chapter 13 can also stop repossession and give you time to make up the missed payments over the three to five year period.
For more information check out our website at www.keegancolpa.com.
Every situation is unique so contact your Eastgate, Ohio Bankruptcy Attorney today for your free consultation.