We are bankruptcy attorneys located in Middletown, OH. We specialize in chapter 7 bankruptcy and chapter 13 bankruptcy.
After you file your bankruptcy petition with the Court, you should not receive anymore harassing calls or mail. You usually receive immediate protection from creditors through a court order known as a bankruptcy automatic stay. This means creditors must stop collection efforts. The automatic stay in bankruptcy was designed to stop foreclosures, stop repossessions, stop phone calls and mailings, stop wage garnishments and stop many lawsuits. Creditors can face consequences for contempt, because the automatic stay is a court order. The court can order fines, attorney’s fees and damages if you continue to receive calls. Punitive damages aren’t available for contempt.
WHAT IS AN AUTOMATIC STAY?
In United States bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, the stay begins at the moment the bankruptcy petition is filed.
WHAT WILL AN AUTOMATIC STAY HELP WITH?
If you’re behind on a utility bill the automatic stay will prevent the disconnection for a period of time. If your home mortgage is being foreclosed on, the automatic stay temporarily stops the proceedings, but the creditor will often be able to proceed with the foreclosure sooner or later. Filing for bankruptcy stops wage garnishments. You also may be able to discharge the debt in the bankruptcy.
These are just some of the ways filing bankruptcy could help you.
WHAT WILL AN AUTOMATIC STAY NOT PREVENT?
The IRS can still audit you and demand a tax return. Despite the automatic stay, money can be withheld from your income to repay a loan from certain types of pensions. If you had a bankruptcy case pending during the previous year, then the stay will automatically terminate after 30 days unless you, the trustee, the U.S. Trustee, or a creditor asks for the stay to continue and proves that the current case was filed in good faith. A lawsuit against you seeking to collect child support or alimony isn’t stopped by your filing for bankruptcy.
These are just some of the issues an automatic stay won’t prevent. Speak with our bankruptcy attorney’s for more details.
HOW CAN I GET STARTED?
Call our office today and set up your free consultation with our Attorney’s. Here you will discuss which chapter of bankruptcy is best for you. There are two main bankruptcy chapters that are normally filed with the Court, chapter 7 and chapter 13. Chapter 7 is designed to wipe out all your unsecured debt. Chapter 13 is designed as a repayment plan, it allows you to make payments over a period of three to five years.
Both are very common in today’s economy.
CAN I KEEP MY HOUSE OR VEHICLE?
If there are secured items you wish to keep (home or vehicle) you would sign a reaffirmation agreement for these items.
A reaffirmation agreement is a bankruptcy document that would be signed to reaffirm debts that you do not discharge through your case. These items will report to the credit agencies and help rebuild your credit.
In a chapter 7, you can keep your home and vehicle as long as you are current on payments. Chapter 13 is designed for you to keep your home or vehicle if your behind. Chapter 13 also will stop a foreclosure, it will allow you to make the payments back over a period of time. Chapter 13 will also stop a vehicle from being repossessed, also allowing repayment. If the vehicle has already been repossessed and you want it back, the only way is a chapter 13, as long as it hasn’t been sold yet. If it has been repossessed and you don’t want it back, once sold you would carry a deficiency balance.
HOW CAN I GET BACK ON TRACK?
Once you have fully discharged, rebuilding can sometimes seem like an overwhelming task. But it’s important to realize that there is life after bankruptcy. Repaying your existing bills as agreed will be one of the single, most powerful things you can do to restore your finances and your credit. You will be surprised at the credit offers you will receive once you have finished the bankruptcy process.
For more information check out our website at Middletown-bankruptcy.com
Contact our office today in Eastgate, Ohio and Middletown, Ohio for your free consultation to see if bankruptcy will give you the financial relief you are looking for.