Bankruptcy Chapters

We are bankruptcy attorneys located in Middletown, Ohio.

Bankruptcy is available to consumers to help them get a fresh financial start. There are several chapters available, but most consumers will qualify under a Chapter 7 or Chapter 13 filing.

What are the differences between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy? 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

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.  Creditors also would no longer be able to collect on these debts from you.  If you have secure debts which you would like to keep such as a home or a vehicle, you just continue to make your payments on these items.  The creditor will provide a reaffirmation agreement for you to sign and file with the court.  This reaffirmation agreement guarantees that the creditor will report your payments to the credit reporting agencies and deems the debt that was re-signed as not discharged through your case.

Most unsecured debts are able to be discharged through a Chapter 7 Bankruptcy, these include but are not limited to medical debt, credit card debt, debts on utilities and debts owed on repossessed vehicles.

CHAPTER 13

Chapter 13 is also referred to as a wage-earner plan as you must have income to support the case.  Chapter 13 can stop your vehicle from being repossessed.  Chapter 13 can also stop a foreclosure and allow you to keep your home.  Once a bankruptcy is filed, all collection efforts must stop.  This includes court proceedings.  Once your case is filed foreclosure proceedings must stop.  Chapter 13 is a 3 to 5 year plan.  During this time period the trustee will make all of the payments that you are behind on your home.  The trustee may also make your current house payments during the case.  This is good because at the end of the case the trustee will file a notice that you are current on your house payment.  It is up to the creditor to object to this fact if they do not agree with the Trustee.  This is good because then the mortgage company cannot come back after you for late fees, or miscellaneous charges.  You will also pay your unsecured debts through the plan.  The amount of unsecured debts you will re-pay will vary from 1% to 100% depending on your individual situation.

 

Both chapters can be beneficial under the right circumstances. To find out which chapter you can qualify for contact our office today for your free consultation.

For more information check out our website at www.middletown-bankruptcy.com

Contact our office today for your free consultation to discuss your individual situation. We offer fair fees, monthly payments plans and flexible hours.  Contact our Middletown, Ohio bankruptcy attorney today.