We are bankruptcy attorneys located in Middletown, Ohio. We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.
WHAT IS BANKRUPTCY?
It is a legal procedure which will give debtors federal protection from creditors. Under the federal code all of your debts will be discharged and give you a fresh financial start.
HOW CAN BANKRUPTCY HELP ME?
Filing bankruptcy could wipe out credit card debt and other unsecured debts. If filed, no creditor can legally collect of those debts.
Filing can stop creditor harassment, as in phone calls and harassing letters and could stop repossession of your car or foreclosure of your home. You could still retain your home even if a foreclosure has already been filed.
Medical debt is discharged through bankruptcy. Overall, health care is the main reason in the U.S. for filing for protection. Hospitals and ER services cannot refuse you service in the future, if you were to file.
You do NOT lose everything you own. Sometimes in a chapter 7, the trustee may take assets and sell them to pay on your debts, however, most consumers are usually happy to learn they will be able to keep most of their assets through the bankruptcy exemptions.
These are just some of the ways that a bankruptcy could help you.
WHICH BANKRUPTCY OPTION BEST FITS MY SITUATION?
The most common filings for bankruptcy are chapter 7 and chapter 13. Chapter 7 will wipe out all your unsecured debt (credit cards, medical debts, utilities, etc.). You can also keep your house and vehicle in chapter 7, as long as your current on payments. Chapter 7 is a straight bankruptcy, referred to as a liquidation bankruptcy. This will stop all collection proceedings including phone calls, mailings, garnishments and court proceedings. As many as 65% of consumer bankruptcy filings in the U.S. are chapter 7.
Chapter 13 is a repayment plan. It is referred to as a wage earner. You must have a reliable source of income so that you can repay all or a portion of your debt. Chapter 13 will stop a foreclosure or repossession as well. It is designed to help you retain your home or vehicle if your behind. You will repay 1% to 100% of your debt, depending on your individual situation. This will last a minimum of three years and max of five years. During this time it will be up to the creditors to file claim in order to be paid during the case.
WHAT DEBTS WILL NOT BE DISCHARGED?
Most of your debts can be discharged. Some debts are not able to be discharged. There are certain debts which cannot be wiped out in a chapter 7 or at the end of a chapter 13. Some kinds of debt can never be discharged.
Student Loans – Most student loan debt is not dischargeable. In some situations a debtor can claim that student loan debt causes an extreme hardship and can obtain a discharge, but it is very difficult to persuade a Bankruptcy Court to discharge a student loan debt.
Taxes – Some income tax debt can be discharged in bankruptcy, but this varies, you should make an appointment for your free consultation to discuss your individual situation.
Alimony and Child Support – Back payments or arrearages for child support and for alimony are nondischargeable. Orders to pay attorney fees in child support and child custody cases are usually nondischargeable.
Fines and Penalties – Most fines that are imposed by a court and most penalties that are assessed by a government agency are nondischargeable.
WHAT HAPPENS AFTER BANKRUPTCY?
If you want to have credit, you will be surprised at the amount of credit offers you will receive once you file for. You can improve your credit after filing and being discharged. This gives people the opportunity to rebuild their credit because it eliminates the old debt. Continue making your payments on assets that you keep. Try to make all of your payments on time with no slow pays and keep accounts out of collection. Follow these rules and your credit will rebuild rapidly.
For more information check out our website at www.middletown-bankruptcy.com.