Bankruptcy Basics

We are a bankruptcy firm located in Middletown, Ohio. Here are a few bankruptcy basics.

Not sure what bankruptcy is? Bankruptcy is a process in which consumers and businesses can eliminate or re-pay some or all of their debts under the federal protection of the bankruptcy stay through the bankruptcy court. Basically, there are two types of bankruptcy available for the consumer: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.

Chapter 7 Bankruptcy is designed to clear off or discharge all of your unsecured debt. This will give you a fresh financial start. Creditors can no longer collect on debts by telephone calls or court proceedings. If there were secured items that you wish to keep such as your home or vehicle you woul re-sign on these items under a reaffirmation agreement.

A reaffirmation agreement is a bankruptcy document you would sign to reaffirm debts that you do not want to discharge through your bankruptcy. The debts that are re-signed on will report to the credit reporting agencies and help to re-buld your credit.

Chapter 7 Bankruptcy is also referred to as a “liquidation bankruptcy” because the bankruptcy trustee may take and sell or liquidate some of your property to pay back some of your debt. However, you will be able to keep most if not all of your property due to the protection of the bankruptcy exemptions. These inclused such things as your homoe, vehicle, cash on hand, jewelry, household items, retirement plans, and most other assets. The exemptions vary so you should contact our Middletown, Ohio bankruptcy firm for further details.

Are you eligible for Chapter 7 Bankruptcy. Not everyone can qualify for Chapter 7, there are several factors to consider, but most can qualify. Contact our office today for your free consultation to see if you qualify for Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy is also referred to as a “wage earner” plan because in order to file for Chapter 13 protection you must have a reilable source of income so that you can repay all or a portion of your debt.

In Chapter 13 Bankruptcy you will pay back a percentage of your unsecured debts, this can range from 1% to 100% depending on your individual situation. Chapter 13 bankruptcy can aslo stop a foreclosure action and a vehicle repossesion and allow you to make up your missed payments through the chapter 13 plan.

If you file for Chapter 13 be prepared to be in the case for minimum of 3 years and a maximum of 5 years. It will be up to the creditors to file a claim in order to be paid during this case. During this time period you will repay a percentage of your unsecured debts, your secured debts and any missed payments you had on your house or vehicle. At the end of the case you will receive a discharge as to all remaining debt.

For more information check out our website at middletown-bankruptcy.com
If you are thinking of filing for bankruptcy, contact our Middletown, Ohio bankruptcy attorneys today. We offer a free consultation, fair fees and monthly payment plans.