We are bankruptcy attorneys located in Middletown, Ohio. We specialized in Chapter 7 and Chapter 13 bankruptcy filings.
The last few years have been financially rough for everyone. Most believe that the economy is finally on the upswing after crashing through one of the worst recessions in recent memory. Of course relief from such economic hardship is never going to be instantaneous, and even as the economy recovers, many people will be struggling with hardships that began during the recession. Credit card debts that were racked up to afford necessities and unexpected job termination from cutbacks have put many Americans and Ohioans in difficult financial situations.
The good new for people struggling with economic hardship is that there is a legal debt relief option that they can likely take advantage of, bankruptcy. Many people only think of bankruptcy as a bad thing or an option reserved only for those who have failed at managing their money. The truth is that bankruptcy exists to help people who have fallen on financial times so difficult that they simply cannot recover.
There are different ways that such financial hardships may arise, and many of them involve unexpected accidents that nobody could have foreseen. Simply being fired unexpectedly and without good reason (as Ohio is a hire at will fire at will state) can be one such example, but there are also issues of accidents and unexpected medical bills. For example, you could have your finances under control, making your monthly payments, until suddenly your appendix bursts and you need immediate emergency surgery. This is an incident that nobody could have predicted, and yet now you are unable to make your credit card payments because of your medical bills.
At our office we will offer you a free consultation, at this consultation you will be able to sit down with one of our attorneys and discuss your individual case. He will advise you what chapter if any would be best for your individual situation.
CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy is the most common bankruptcy filing and the most sought after. It is most commonly referred to as a straight bankruptcy or a liquidation bankruptcy. Under Chapter 7 you will be able to wipe out all of your unsecured debts and get a fresh financial start. You do not have to pay anything back that you do not want to keep. It is referred to as a liquidation bankruptcy because the bankruptcy trustee may be able to liquidate some of your assets to pay into your bankruptcy estate, however, there are exemptions which will protect most of your assets from this process.
If you have secured items that you wish to keep you may. You must be current on your payments of secured items that you wish to keep. You will have to list these documents on your case, however, the creditor will provide a reaffirmation agreement for you to sign in regard to these debts. What the reaffirmation agreement does is basically resigns your debts so that they were not included in the discharge that you will receive. These reaffirmed debts will report to the credit reporting agencies and help to re-build your credit.
You can wipe out most types of debt through a Chapter 7 bankruptcy. There are a few things which cannot be discharged such as criminal court costs, spousal support, child support and most taxes. However, some taxes may be able to be discharged, you should consult one of our attorneys if you owe taxes to discuss your individual situation.
Chapter 13 is also know as a wage earner plan. This is because you must have the income to support the case, as you will be paying into the case. Chapter 13 is designed to help you if you have fallen behind on your house or car or if your income is too high to qualify for a Chapter 7.
A Chapter 13 case must be at least 3 years long but no longer than 5 years. This will give you a three to five year period to make up any house or vehicle payments you may have missed prior to the filing of your case. Your mortgage company must comply as this is federal law, they will have to stop all collection and foreclosure proceedings that are pending against you upon the filing of your case.
As to your unsecured creditors under Chapter 13, they will be paid a percentage of the total debt, this percentage is based upon your individual case and can vary anywhere for 1% up to 100% of the debt owed. Upon completion of your case you will receive a discharge of all of your debts. You will not have to report this information to the IRS and your creditors can no longer collect on these debts.
For more information check out our website at www.middletown-bankruptcy.com.
Call today to get the financial relief you are looking for. Bankruptcy does not mean that you are a bad person, just a person in a bad financial situation.
Call your Middletown,Ohio Bankruptcy attorney today for your free consultation 513-422-2994