How Often Can I File Bankruptcy For Bankruptcy Relief?

How Often Can I File Bankruptcy For Bankruptcy Relief?

The right to file bankruptcy is found in Article 15 of the United States Constitution.  Bankruptcy laws are enacted by the Federal Government and are federal cases under federal bankruptcy laws.  . This means the statue for Ohio is the same as it is for the other 49 states, with certain exceptions.

The law has two chapters for personal bankruptcy relief, known as Chapter 7 Liquidation and Chapter 13 Reorganization.  For chapter 7, a person cannot have debts discharged under this chapter again until eight years after the date of filing of an earlier chapter 7 case under which a person received a discharge.  A person cannot seek relief under Chapter 13 for 4 years after filing under chapter 7 and cannot file a new 13 to receive a discharge unless at least 2 years has passed since a prior filing under which a discharge was obtained.

What is controlled by State Law is the exemptions to which a person is entitled because Ohio is an opt out state from the federal exemptions.  In Ohio, most people can retain most or all of their assets and receive a discharge under Chapter 7.

Federal law imposes median family income on debtors seeking relief, who have to complete a Means Test analyzing their income for 6 months prior to filing.  Median family income differs by State, and increases gradually by family size.  In Ohio, median family income for a single person is approximately $43,000, while median family income for a four family household is approximately $75,000. These figures are based on IRS guidelines and are updated periodically.   If your income exceeds this amount for your family size your case is subject to heightened scrutiny by the United States Trustee and you may have to file under chapter 13 if you make too much money.  But you can still receive a discharge under chapter 13!  See below for more information about chapter 13.

Under Chapter 7, a person is seeking a discharge of their unsecured debt and not to repay the debt over time.  The entire chapter 7 case takes approximately 120 days to complete, and a court appearance with counsel generally occurs about 30 days after filing.  A person is ineligible for another discharge under chapter 7 for a period of 8 years from the date of filing of the prior chapter 7 case.

Under Chapter 13 reorganization, a person is seeking a discharge of a portion of their unsecured debt and to repay certain debts for which they have pledged collateral which they wish to retain.   People who file for this type of bankruptcy either make too much money (over the threshold for chapter 7) or have assets they want to keep which they might lose under chapter 7, or to cure arrearages on things like child support and or income taxes, and reinstate on mortgage arrearages over time.  The Debtor, through counsel, proposes a budget they can live with and a payment to the court which will reorganize them over 36 to 60 months.  Once the plan is confirmed, the debtor makes monthly payments to the trustee who in turn repays the creditors the necessary about and a discharge of the remainder of the unpaid debt is discharged upon completion of payments under the plan.

Under chapter 13, a person can avoid and release an unsecured second mortgage and can cram down car loans because a person is afforded a broader remedy under chapter 13 than chapter 7.

If a person starts a chapter 7 case they can convert to chapter 13 if eligible for a discharge and if a person files a chapter 13 bankruptcy, they can convert this to a chapter 7 if they are eligible for a discharge under chapter 7.  Bankruptcy can be a wonderful opportunity to take responsibility for your financial affairs and get a fresh start needed for a positive financial future!

Why Bankruptcy?

Why Bankruptcy?

Sometimes, life throws a curve ball. The mortgage is late, the car payment has not been made, and the credit card companies call non-stop. It seems like there is no way out of a dark tunnel of debt. It can be scary and overwhelming for anyone. Being in a large amount of debt can feel like being in a prison. When it seems like there is nothing that can help the feeling of inadequacy, there is an option to help the situation; bankruptcy.

There are some common misconceptions about bankruptcy. Often, people believe that if they file for bankruptcy, they will lose all of their possessions. They believe that a repo man will show up at their front door demanding they hand over their house and car keys and provide him their bank account information. This is not always the case. Bankruptcy can be a lifesaver for many people. It is a viable option once other avenues of getting out of debt have failed. However, there are ramifications, and someone who is planning to file needs to understand the penalties that are involved.

There are several types of bankruptcy, but the most commonly used by individuals and families are chapter 7 and chapter 13. Chapter 11 bankruptcy is used for corporations that are in severe debt and is not typically an option for personal debtors. The type of bankruptcy will depend on the amount of debt one and their ability or inability to repay the debt. It is important to remember that certain types of debt cannot be forgiven. Typically child support, federal student loans, and tax abatements are not going to be discharged with bankruptcy.

Chapter 13 bankruptcy is like a consolidation plan. With a Chapter 13, the debtor with a steady income works with their attorney and trustee to develop a plan to pay back as much debt as possible. Chapter 13 bankruptcy is usually a three to five year process. There are advantages to filing for chapter 13 over chapter 7. Chapter 13 allows the possibility of stopping housing foreclosures, as long as the debtor continues to make the payments.

Filing for bankruptcy can be a drastic step, but bankruptcy can save the life of someone with a great amount of debt.

Why Hire a Local Bankruptcy Attorney in Columbus Ohio?

Why Hire a Local Bankruptcy Attorney in Columbus Ohio?

Bankruptcy is not a simple process. Whether Chapters 7 or 13 need to be filed, any consumer severely impacted by debt must fully understand all of the implications of a declaration of bankruptcy. Although there are non-lawyer third parties who claim to be able to assist in the process, there are many good reasons to hire a local bankruptcy attorney to initiate any court proceeding.

Chapter 7

Chapter 7 bankruptcy is a liquidation procedure. When Chapter 7 is filed, all of the non-exempt assets of the debtor are transferred to a court appointed bankruptcy trustee. These trustees are usually bankruptcy attorneys themselves, but as trustees, they are charged with the sale and distribution of assets to creditors in order of preference.

Any consumer who walks into a first-time bankruptcy hearing without an attorney can be immediately put at a distinct disadvantage, since most consumers do not understand the intricacies of the process. Furthermore, a local attorney may actually know and work with the local bankruptcy trustees, and this can be very helpful when if anything has to be negotiated.

Chapter 13

Chapter 13 bankruptcy is sometimes termed called a wage earner’s plan. This means that it is designed as a payment plan for those debtors who wish to pay their debts, but need more time to do it. The Chapter 13 process involves the calculation of disposable income, and the amount of disposable income is the basis for a three to five year monthly payment plan. During this time, secured creditors, like mortgage companies and auto lenders, are paid their regular amounts due, but unsecured creditors like credit card companies only usually receive pennies on the dollar. A good local bankruptcy attorney is the best person to help walk consumers through this complicated process.

Bankruptcy Myths

Bankruptcy Myths

After the discharge or completion of the bankruptcy process, many people have better credit scores than when they originally filed for bankruptcy. Bankruptcy will not cause a loss of a job, and in many cases it will not require someone to give up their home or everything that they own. Contact a bankruptcy lawyer today to learn more about bankruptcy options.

Who Can Benefit from Bankruptcy filing?

Who Can Benefit From a Bankruptcy Filing?

Anyone who has debt that is quickly adding up, whether it be from a mortgage, medical bills, personal loans, payday loans, or anything else should find an experienced bankruptcy lawyer to discuss their financial situation. A good bankruptcy lawyer will spend some time going over financial specifics and be able to give a potential client an idea as to whether bankruptcy might be a good option for them, and if so, which chapter. Anyone who is facing foreclosure on their house, garnishment of their wages, judgments related to debts in civil courts, a court-ordered levy of their bank accounts, and anyone facing serious or legal actions as a result of their debt may want to consider bankruptcy.Call today for a free consultation.

Who Can file for Bankruptcy

Who Can File for Bankruptcy?
Any individual or business in America can file for bankruptcy. An individual in business can file a Chapter 7 bankruptcy, which uses non-exempt assets to pay off debts; if not enough assets exist to pay off the entire balance of debts, the debt is forgiven in the bankruptcy. Individuals or couples filing for bankruptcy can also file for Chapter 7 bankruptcy. Or they may file for a Chapter 13 bankruptcy, which is a restructuring of the debt. A Chapter 13 uses a three or five year payment plan to repay all or some of the debts owed by the couple or individual. Consultations are always free call today to set an appointment.

What is Bankruptcy

What is Bankruptcy? By Ohio Bankruptcy Attorneys Zellar & Barclay

With the gloom and doom of the American economy over the past several years, many more Americans and American businesses have turned to bankruptcy for relief and help. Unless an individual knows someone personally who has filed for bankruptcy, or has filed bankruptcy themselves, they may not know what bankruptcy really is, or why it is vital to the people that have filed. As anyone who has filed bankruptcy, or any bankruptcy lawyer can tell you, there are lots of misconceptions surrounding bankruptcy. There are many important details about bankruptcy the lay person should be aware of. Consultations are always free at all three of our Ohio locations call now to set an appointment with one of our experienced Ohio Bankruptcy Attorneys.

What is Bankruptcy?
Bankruptcy is a legal process set up by the federal government for individuals, couples, and businesses that allows them to either pay off debts, reorganize the debt or in some cases have debt forgiven, otherwise known as discharged. It is not an easy process and is not to be taken lightly. However, for many people and businesses bankruptcy is really the only way to a fresh start in life. Once a bankruptcy is filed, debt collectors, including credit card companies, other loan companies, mortgage companies, and even individuals who are owed a debt are not allowed to contact the bankruptcy filer in order to collect on the debt. This action alone can bring a lot of peace to a debtor.

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