We are bankruptcy attorneys located in Middletown, Ohio. Our main focus of practice has been Chapter 7 and Chapter 13 bankruptcy filings for over 26 years.
Credit is no game and can become very serious very quickly if you fall behind on your payments. Or even worse come where you cannot make a payment at all. The phone will begin to ring early in the morning and not end till late at night. The mail box will fill with new bills from collection agencies, attorneys and eventually from your local court. Once a judgement is obtained against you a creditor will be able to garnish your wages.
In the state of Ohio a garnishment will be 25% or your pay before taxes have been taken out. That’s a pretty good chunk.
But don’t worry you can still file for bankruptcy and get this garnishment stopped!
Bankruptcy is a federal code designed to help people get a fresh financial start. Under the code you can discharge all of your debts. A discharge is documentation stating that your debts are free and clear, a creditor cannot come back on you and collect on these debts in any way or form.
This would include any current garnishments. Once a bankruptcy is filed a garnishment must stop. Any garnishments that would happen after a filing will be returned to you by the creditor. The judgment will still remain on your credit report, but will show you owe no liability. Bankruptcy does not change the past, just clean it up.
There are two main chapters filed by consumers. Chapter 7 and Chapter 13.
Under Chapter 7 you will be able to discharge all of your unsecured debts. All collection efforts against you must stop immediately.
Chapter 13 is a repayment plan. Under this plan you will be in the case for three to five years. All collection efforts must cease immediately upon filing. Chapter 13 will stop a foreclosure or repossession of a vehicle and allow you to keep these secured items through the plan. You will be able to make your missed payments over the three to five year time period. At the end of your case you will receive a discharge.
Bankruptcy is complicated, don’t brave it alone. Contact us today for a free consultation. At this consultation you will be able to sit down with one of our attorneys and discuss your individual situation.
You can also check out our website at www.middletown-bankruptcy.com.
Contact your Middletown, Ohio bankruptcy attorney today to get a jump on your fresh financial start!