We are bankruptcy attorneys located in Middletown, OH. We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.
Bankruptcy laws afford a debtor with protections, the most significant of which is a fresh start from the harassment of collection efforts by creditors. Once a bankruptcy is filed, collection efforts by creditors stop by virtue of the automatic stay. The purpose of this is to afford the debtor with a discrete period of time to regroup financially and to develop a systematic approach to repayment of debts. The debtor can begin rebuilding credit and start over financially. Filing bankruptcy allows a debtor to get started with the task of rebuilding credit more readily and to undertake that process peacefully.
CHAPTER 13 ADVANTAGES
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. They must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on consumer debts. Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection. Also with chapter 13 it protects someone who co-signed with you on a consumer loan. That person is called a co-debtor in bankruptcy. That protection is extended to your co-debtor as long as you propose to pay the debt in full through your case.
Contact our office today at 513-752-3900, to set up your free consultation with one of our attorney’s.
CHAPTER 7 ADVANTAGES
Filing Chapter 7 bankruptcy is a preferred solution of the debtors, due to its fast and effective ways. The fact that it does not require payments over time also makes it highly acceptable. If you have qualified for the Means Test for the State of Ohio then you can look forward to Chapter 7 bankruptcy filing. If you file a Chapter 7 bankruptcy case, it is normally opened and closed within three to six months. You clear out on your debt amount completely when the bankruptcy process is complete. Unlike Chapter 13 bankruptcy you are not required to repay any portion of your debts. You can keep most of your properties intact unless you have pledged the item as collateral for a loan. But all of your debts cannot be discharged. You can discharge most of your debts except for mortgage, car payments, student loans, recent taxes, and unpaid child support. No minimum debt amount is fixed for filing a Chapter 7 bankruptcy plan. The creditors are not applicable to claim on any new property or wages you get hold of after the discharge. The property will be completely owned by you and your creditors cannot exert any further claim on them.
Under the Chapter 7 process, there is one mandatory appearance before the bankruptcy trustee during the creditor’s meeting. The overwhelming majority of cases do not involve court appearances.
Bankruptcy lets you keep most necessities. If you have little to begin with, chances are good you’ll be able to keep all or most of your property.
For more information check out our website at Middletown-bankruptcy.com
Contact our office today in Middletown, Ohio for your free consultation to see if bankruptcy will give you the financial relief you are looking for.