Bankruptcy Chapters

We are bankruptcy attorneys located in Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 Bankruptcy filings.

Yes, there are different types or chapters of bankruptcy that are available for the general consumer.

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.

If you have gotten upside down on your vehicle due to perhaps including some of a remaining carry over debt from another vehicle onto your current loan, there are programs that may be able to help you while you are under the bankruptcy.  There is a program called 722 Redemption and what they do is they will refinance your vehicle for the current fair market value.  This will also most likely not only reduce your total loan, total payment, but also your percentage rate.  This is well worth looking into while going through a Chapter 7 bankruptcy.

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

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.


FINAL THOUGHTS

If you are considering filing for bankruptcy then most likely you do need to file for bankruptcy.  Bankruptcy is not a process to be taken lightly.  So most likely if you are considering it, you most likely do need to file.  At our office we offer a free consultation, fair fees and monthly payment plans.  Call today for your free consultation to sit down and discuss your individual situation with one of our attorneys.

MORE INFORMATION

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

Call your Middletown, Ohio bankruptcy attorney today for your free consultation at 513-422-2994.