Debt problems can make your life very difficult. The stress of financial problems can strain you and your relationships. Life's daily struggles are hard enough without having to worry about foreclosures, repossessions and unexpected expenses such as medical bills. Many Ohioans have found bankruptcy to be a way out of crushing debt. Bankruptcy can lead you out of your debt problems and help give you a fresh start and new outlook. If you are tired of receiving endless calls from creditors, having your wages garnished, facing foreclosure or repossession and your debts exceed your assets, contact us today for bankruptcy information.
Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. We understand that the decision to file for bankruptcy cannot be made lightly. In your consultation, we will discuss your options. Your best option may be filing Chapter 7, filing Chapter 13, or not filing bankruptcy at all.
Chapter 7 bankruptcy is the most common form of bankruptcy and is also known as a liquidation bankruptcy. It's called liquidation because the bankruptcy trustee may take and sell ("liquidate") some of your property to pay back some of your debt. However, you may keep property that is protected (also called "exempt") under Ohio state law.
A person's eligibility to file is determined by the "Means Test." This test calculates your income as compared to the average family of the same size in your state. If your income falls below the median income for your family size, there is no "presumption of abuse" and you can usually file for Chapter 7. If you are higher than the median, you may still be eligible, but many other factors need to be taken into account. This can make the calculation a bit more complicated and you may have to file for Chapter 13 instead.
Certain debts are unable be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes and student loans.
Many clients are able to keep certain secured debts such as your car or house. In a Chapter 7 bankruptcy filing, the difference between secured and unsecured debts is important to keep in mind. A secured creditor retains an interest (called a “lien” or “security interest”) in certain property, which is termed, “collateral.” In most cases, the creditor has extended credit to the debtor specifically for the purchase of the particular property. If the borrower is not able to make the requisite payments, the collateral can be repossessed (auto loan) or foreclosed on (real property).
Unsecured debts, on the contrary, lack any collateral attached to the debt itself. The most familiar types of unsecured debts are credit cards, personal loans, and debts for services performed (i.e. medical bills). Generally, all unsecured debts are able to be eliminated in Chapter 7 bankruptcy.
Contact us today at 513-791-7919 so we can help you get the fresh financial start you need and deserve.