Bankruptcy FAQ’s
What is bankruptcy?
Bankruptcy is a legal process that helps individuals or businesses in financial trouble manage or eliminate their debts under the protection of the court.
What are the different types of bankruptcy?
For individuals, the most common types are Chapter 7 and Chapter 13. Chapter 7 generally involves discharging unsecured debt but there are income limitations for Chapter 7, while Chapter 13 involves a repayment plan over several years.
Which is better, Chapter 7 or Chapter 13?
It depends of course. These two bankruptcy chapters give our attorneys powerful tools to help you achieve your financial goals. A Chapter 7 may not be appropriate, for example, if you are six months in arrears on your home and the bank has started foreclosure. A Chapter 13 will allow you to catch up those payments and stop the foreclosure. A Chapter 13 may not be appropriate, for example, if you pass the means test for Chapter 7 and are not delinquent on your home or auto.
How do I know if I should file for bankruptcy?
If you’re struggling with overwhelming debt and can’t manage payments despite your best efforts, bankruptcy might be an option. Consulting with a bankruptcy attorney can help determine if it’s the right choice for you.
Will bankruptcy stop creditors from harassing me?
Yes, once you file for bankruptcy, an automatic stay is issued, which legally prevents most creditors from continuing collection efforts like calls, letters, or lawsuits.
Will I lose everything I own if I file for bankruptcy?
No, Ohio has exemptions that protect certain types and amounts of property. A bankruptcy attorney can help you understand what property is protected in your situation.
Can I keep my house and car if I file for bankruptcy?
It depends on various factors, including the type of bankruptcy, the equity in your assets, and your ability to continue making payments. In most cases, people can keep their homes and cars by reaffirming the debt or through exemptions.
Can I file for bankruptcy without an attorney?
It’s possible, but bankruptcy law is complex, and filing without legal assistance can be risky and cause you to lose property you would not otherwise lose if you had legal counsel. An attorney can guide you through the process, ensuring your rights are protected and helping you achieve the best possible outcome.
What debts can be discharged in bankruptcy?
Most unsecured debts like credit card debt, medical bills, and personal loans can be discharged in bankruptcy. However, some debts like student loans and recent tax debts may not be discharged.
Will I have to go to court if I file for bankruptcy
No, you’ll need to attend a meeting of creditors (341 Meeting), but its usually straightforward. These are held via Zoom at your lawyer’s office.
Can I file for bankruptcy more than once?
Yes, but there are time limits between filings. For example, if you previously filed for Chapter 7 bankruptcy, you’ll need to wait eight years before filing for Chapter 7 again. More than one Chapter 13 can be filed within this eight year period depending upon your circumstances.
What happens to my co-signers or joint account holders if I file for bankruptcy?
Bankruptcy may protect you from creditors, but it doesn’t necessarily protect co-signers or joint account holders. They might still be responsible for the debt.
How much does it cost to file for bankruptcy?
The filing fees and attorney fees vary depending on the complexity of your case and the type of bankruptcy. Some individuals may qualify for fee waivers or payment plans.
Will I ever be able to get credit again after bankruptcy?
Yes, many people start rebuilding their credit soon after bankruptcy. Over time, by managing credit responsibly, you can qualify for new credit cards, loans, and mortgages.
Will I lose my job if I file for bankruptcy?
No, your employer cannot fire you solely for filing bankruptcy. It’s protected by Federal Law.
What documents are needed to file bankruptcy?
Whether Chapter 7 or Chapter 13, our office needs several documents from you to properly analyze your financial situation and advise you on the best course of action. This requires some time and work on your behalf. We must have, at a minimum, the following: three years tax returns, six months pay stubs, all vehicle titles, three months bank statements, recent pension or retirement account statement, home and vehicle insurance, Social Security Card, and photo ID.
How much debt must you have to file Chapter 7 bankruptcy?
The law requires no specific amount of debt. It depends on your individual circumstances including income, collection activity, your assets, family size, and financial goals. If you are struggling and can’t meet your current debt payments, that is enough. Keep in mind that a Chapter 7 can only be filed once every eight years. If it does not make sense for you to file, we will tell you. If we determine you are judgment proof, we may advise you not to file and discuss the ramifications of that.
Are you released from all your debts in bankruptcy?
Not all. Child support, most newer taxes, government debt and student loans for example are not dischargeable in bankruptcy.
How long does Chapter 7 take?
How does the bankruptcy process work?
- Call 513 752 3900 to schedule an appointment to meet or talk to on the phone with one of our attorneys to discuss your situation. You can also fill out our client contact form on our website to schedule via e-mail. There is no charge for this initial consultation.
- If bankruptcy is appropriate for you, you will be given a worksheet to fill out and bring back with the documents we need to prepare your case. You will need to retain us by paying a portion of the costs and fees prior to this worksheet appointment. You will be given details about this at your first appointment plus all fees including the credit reports and credit counseling courses which are included in your cost.
- You will need to take one of two credit counseling courses prior to filing your case.
- We will prepare your case and schedule a time for you to sign. Prior to signing we may advise you on specific actions to maximize your exemptions and protect your assets.
- Once we have advised you and done all the appropriate pre- bankruptcy planning, and we have gone over and signed your case, we will then file your case.
- If a Chapter 13 is filed, your first payment will be due in about five weeks.
- If a Chapter 7 is filed, we will simply be waiting for the 341 meeting in four to five weeks.
- Whether a Chapter 13 or Chapter 7, about four to five weeks after filing you must attend a 341 meeting with the bankruptcy trustee and our attorneys at our office via Zoom.
- Some additional documents may be needed after the 341 meeting, or the meeting may be concluded without the need for any further documents.
- If in a Chapter 13 case, you will be making monthly payments to the trustee who will then pay your creditors. Our fee and duty to you include representing you during the entire number of months it takes you to complete your case. We are here to adjust your case as your circumstances may change from time to time.
- If in a Chapter 7 case, we are just waiting for your discharge order to come through in two or three months. This court order states that your debts are officially discharged. But in the meantime, you can get on with your life and fresh start and put the case behind you.
Is My Bankruptcy Filing Public?
A bankruptcy filing is technically public. But as a matter of fact and practically only to you, your attorney and your creditors will know. There is a public court access system which is subscription based for bankruptcy professionals to access bankruptcy filing information.
A bankruptcy filing will appear on your credit report for up to 10 years. This will appear when applying for credit. Many creditors view the bankruptcy filing as an overall positive because it can be viewed as one getting their financial house in order. Also, a recent bankruptcy is less risky to a creditor as you cannot file a Chapter 7 again for eight years.