We are bankruptcy attorneys located in Middletown, Ohio. We specialize in Chapter 7 and Chapter 13 bankruptcy filings.
What are the differences between Chapter 7 and Chapter 13 Bankruptcies? The main difference is that in a Chapter 7 you do not pay back any of your debts except for things that you would like to keep.
Chapter 7 bankruptcy also referred to as straight bankruptcy will allow you to clear off all of your unsecured debts. In Chapter 7 you can keep your home and vehicle if you are up to date on your payments and do not have too much equity in your property. All of your unsecured debt would be discharged through the case and you would no longer be responsible for these debts. If you had secured debts you would wish to keep, such as your home or vehicle you will be able to do that. As long as you are current on your payments the creditor will provide a reaffirmation agreement for you to sign. This reaffirmation agreement will get filed with the bankruptcy court. Signing this document will exclude this debt from your discharge, therefore, reporting to the credit reporting agencies and starting to re-build your credit. Chapter 7 is the most sought after type of bankruptcy by consumers, but not all will qualify.
If you cannot qualify for a Chapter 7 then you will have to file for Chapter 13. Chapter 13 is a re-payment plan. This Chapter is also designed to help you save your home from foreclosure or your vehicle from repossession. You would pay a percentage of your unsecured debts. Chapter 13 is a 3 to 5 year process which allows you to pay back a percentage of your debts while most interest and late fees will stop. This will also stop a foreclosure and allow you to pay the amount you are behind over the 3 to 5 year period.
Both chapters can be beneficial under the right circumstances. Contact our office today for your free consultation and to discuss your individual situation. At this free consultation the attorney will be able to advise you as to which chapter would be best for you. At our office we have over 40 years of experience helping people get a fresh financial start. We know that bankruptcy is not just about the numbers but it is about you and your needs.
For more information check out our website at www.middletown-bankruptcy.com.
Contact your Middletown, Ohio bankruptcy attorney 513-422-2994 today for your free consultation.