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Bankruptcy
Legal Counsel on the Bankruptcy Process
When facing foreclosure of your home, or when their financial obligations grow beyond their ability to manage, many people consider declaring bankruptcy in an effort to fix their financial situations. However, declaring bankruptcy comes with its own drawbacks, so it is important to seek help from a bankruptcy attorney before taking that step. The Law Offices of Karen E. Hamilton
walks individuals through the bankruptcy process and ensures that clients who are considering bankruptcy have the details they need to make informed decisions about whether to file.
If you are thinking about bankruptcy as a solution to your financial difficulties, call (614) 443-7920
to speak with our attorney first.
What is Bankruptcy?
When an individual or business is unable to repay debts, bankruptcy may be declared to allow debt relief for the debtor while giving creditors the opportunity to seek repayment. This legal proceeding, which is handled in federal court, typically begins with a petition from the debtor, who files for bankruptcy by claiming an inability to repay debts.
What are the Advantages of Bankruptcy?
Bankruptcy law includes certain details that make filing a reasonable action for many debtors. Advantages include:
- An Automatic Stay on Credit Collection Attempts
- Some Debts, Such as Utility Bills and Credit Card Debt Can Be Discharged
- Bankruptcy Exempts Some Property from Seizure to Pay Debts
what are the possible disadvantages?
Debtors may experience some negative affects related to their credit and financial maneuverability upon declaring for bankruptcy. These potential disadvantages include:
- Negative Impact on Credit Reports for Up to 10 Years
- Loss of Property
- Possible Denial of State a and Federal Tax Refunds
- Possible Cancellation of Credit Cards
- Decreased Chance of Approval for Loans or Mortgages
- Greater Difficulty Seeking Job Opportunities and Housing
- Not All Debts Can Be Discharged
About Chapter 7 Bankruptcy
Chapter 7 is a statute of the Bankruptcy Code that may provide relief for individuals who cannot afford to pay towards debt after other living expenses are paid. Chapter 7 is a liquidation procedure in which the debtor forfeits any non-exempt property and dischargeable debts are removed. Under Chapter 7, no repayment plan is established and most credit card debt is discharged. Chapter 7 may also prevent foreclosures and repossessions.
Filing for Chapter 7 may:
- Discharge Certain Debts
- Prevent Wage Garnishments
- Prevent Seizure of Exempt Property
- Prevent Collection Attempts
- Allow for Reaffirmation Agreements
- Preclude lawsuits and evictions
- Prevent Repossessions
- Prevent Foreclosures
- Prevent Utility Shut-Offs
About Chapter 13 Bankruptcy
In some cases, debtors are determined to make too much money to be eligible for Chapter 7 Bankruptcy. These individuals may file Chapter 13. This statute allows individuals and businesses to establish repayment plans that typically complete within 3-5 years, generally resulting in reduced payments for the debtor.
Because debtors still make payments under Chapter 13, filers are usually allowed to keep their property including that which is not exempt under other statutes of bankruptcy law. If you are subject to repayment of debts that cannot be discharged, such as student loan debt, or if you may be denied for Chapter 7 due to your salary or wage, Chapter 13 may allow you some financial relief.
Call (614) 443-7920 to discuss your Chapter 13 bankruptcy case with an attorney who can make a difference.
BEWARE OF PREDATORY LENDING OFFERS
Such alternatives do exist but do not consider any to avoid creating more cash flow problems. These schemes are commonly offered with the intention of taking advantage of your urgent predicament.
Do not sign any document that you do not fully understand. Be inquisitive and report any misconduct if you find any.