Thinking about Bankruptcy??

We are bankruptcy attorneys located in Eastgate, OH. We specialize in Chapter 7 bankruptcy and Chapter 13 bankruptcy.

HOW DOES BANKRUPTCY WORK?

While most court cases are heard in either civil or criminal court, bankruptcy has a dedicated system of courts. Each judicial district in the U.S. has its own bankruptcy court. United States bankruptcy judges have the authority to make binding decisions in bankruptcy cases, such as eligibility issues or whether to grant a debt discharge. However, most aspects of the bankruptcy process are done outside of the court. For example, an appointed trustee carries out the administrative duties of Chapter 7, Chapter 13, and other types of bankruptcy cases.

The debtor actually has very little interaction with the bankruptcy judge. Chapter 7 applicants don't even set foot in court and only see the judge if there are objections to the bankruptcy plan. Chapter 13 debtors typically appear in court just once, at the bankruptcy plan confirmation hearing. The informal meeting of the creditors (also called a "341 meeting," based on Section 341 of the Code) is typically held at the trustee's office.

BANKRUPTCY GOAL

Federal bankruptcy laws are intended to allow debtors a way out of particular debts, giving consumers and businesses a fresh start where all other options have failed. A 1934 U.S. Supreme Court decision described bankruptcy's role as giving the unfortunate debtor a new opportunity and a clear field for the future. The bankruptcy discharge, a court order releasing the debtor from personal liability for certain debts, is the main way this is accomplished. The discharge also prohibits creditors or collections agencies from communicating with debtors.

To get more information contact our office today at 513-752-3900, or visit us at www.keeganandrade.com.

DIFFERENT TYPES OF BANKRUPTCY

Bankruptcy can mean different things to different debtors. There are several types of bankruptcy chapters provided under the U.S. Bankruptcy Code, each with its own rules and procedures:

Chapter 7 bankruptcy is titled "Liquidation" in the Code, since most of the debtor's assets are sold for cash or liquidated and used to pay creditors. However, there are certain limits to which assets may be liquidated. Chapter 7 filings where there is very little nonexempt property, if any, are called "no-asset cases." Creditors holding unsecured claims (such as credit card issuers) typically do not receive proceeds unless it is an asset case and the creditor has filed a proof of claim with the court.

Chapter 13 Bankruptcy is titled "Adjustment of Debts of an Individual with Regular Income." Unlike Chapter 7, Chapter 13 is best suited to debtors with regular income. Those who file under Chapter 13 typically are able to hold onto valuable assets, such as a house and car. Instead of liquidating assets, Chapter 13 debtors work out a plan to repay creditors over a longer period of time, usually three to five years. The court either approves or rejects the repayment plan at a confirmation hearing. A Chapter 13 debtor typically remains in possession of property and makes payments to creditors through the trustee. The plan is based on the debtor's projected income over the life of the bankruptcy plan. The debtor does not receive an immediate debt discharge upon approval, but must complete payments first. While the plan is in effect, the debtor is protected from wage garnishments, lawsuits, and other creditor or collections actions. Additionally, debtors may be able to eliminate more debts under the Chapter 13 discharges.

SOME PRO'S FOR FILING BANKRUPTCY

Although a bankruptcy stays on your record for certain amount of years, the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about 3-6 months. So, the trade-off is freedom from debt. Declaring bankruptcy now can get you started sooner on rebuilding your credit. You will lose all your credit cards. Your credit cards probably got you in this mess to start with, so it's hard to see that as a bad thing. Bankruptcy has become an effective tool for wiping out credit card debt. Collection efforts must stop as soon as you file for bankruptcy under Chapter 7 or Chapter 13. As soon as your petition is filed, there is by law an automatic stay, which prohibits most collection activity. If a creditor continues to try to collect the debt, the creditor may be cited for contempt of court or ordered to pay damages.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com

FREE CONSULTATION

Contact our office today in Eastgate, Ohio for your free consultation to see if bankruptcy will give you the financial relief you are looking fo