Bankruptcy…Your Fresh Start
Bankruptcy Must Reads Below:
- All about chapter 7 bankruptcy.
- Understanding chapter 13 bankruptcy
- Bankruptcy FAQs
- Bankruptcy in the news headlines.
- Do bankruptcy attorneys take payment plans?
- Our bankruptcy attorney is licensed in both Ohio & Michigan
Chapter 7 Bankruptcy
*See our Home Page for extra Bankruptcy FAQs.
Who files chapter 7 bankruptcy?
We estimate that nearly 3,700 people from Toledo, Ohio and Northwestern Ohio will file for chapter 7 bankruptcy relief in 2019. Chapter 7 bankruptcy filings in the metro Toledo, Ohio region account for about 85% of all bankruptcy filings. Chances are that you know someone who feels amazing after wiping out high interest rate credit card balances and massive medical bills. Shortly after filing for chapter 7 bankruptcy relief, many debtors begin rebuilding both their credit and their future.
Put simply, chapter 7 bankruptcy wipes out many unsecured debts such as medical bills, credit card balances, and car repossessions. Congress enacted chapter 7 bankruptcy to help individuals burdened by debt to obtain a fresh start and begin rebuilding their lives. Chapter 7 bankruptcy is referred to as “liquidation” because some debtors may have to surrender some of their assets in exchange for the elimination of most debts. With today’s bankruptcy exemption protections, liquidation risk is much lower than in former years, but your bankruptcy attorney will carefully review your situation before filing.
Not all debts are dischargeable in a chapter 7 bankruptcy. Some common examples of debts which survive a chapter 7 bankruptcy include, but are not limited to child support, income taxes, student loans, court fines, criminal restitution, government benefit overpayments, and post petition debts.
Eight (8) years must pass since the filing of your last chapter 7 bankruptcy. If you need help before the 8 year period passes, chapter 13 bankruptcy may be a helpful solution to your new financial challenges.
Chapter 13 Bankruptcy Toledo
We estimate that nearly 500 people from Toledo, Ohio and Northwestern Ohio will file for chapter 13 bankruptcy relief in 2019. Chapter 13 bankruptcy filings in the metro Toledo area account for about 12% of all bankruptcy filings in the Toledo area. Chapter 13 bankruptcy can be a successful alternative to high interest loans or unpredictable debt consolidation programs. Chapter 13 bankruptcy is appropriate for those seeking to consolidate their debts into one monthly payment and avoid creditor judgments.
Simply put, a chapter 13 bankruptcy is a repayment plan lasting from 3-5 years. Most debts are consolidated into one consistent monthly payment. For some debtors, the repayment plan may be a small percentage of their overall debt in exchange for the eventual elimination of debts. Debts such as taxes, student loans, and child support may be included your repayment plan, however these debts are treated as priority debts.
Liquidation risk is not part of chapter 13 bankruptcy. So long as debtors successfully maintain their monthly payments, they are able to avoid the loss of personal assets. The maximum length of a chapter 13 repayment plan is 60 months. One advantage of chapter 13 bankruptcy over debt consolidation, is that chapter 13 bankruptcy mandates creditor participation and protects debtors from wage garnishments and collections. Chapter 13 bankruptcy is particularly helpful in stopping a home foreclosure, if timely filed.
In Chapter 13 bankruptcy, a portion of your attorney fees may be deferred into your monthly repayment plan. In chapter 7 bankruptcy, payment plans are not common, however be sure to discuss your needs with your bankruptcy attorney. In many instances, a solution can be found.
Many clients are able to keep their home and primary vehicle by applying applicable bankruptcy exemptions. Ohio is an “Opt Out” state, meaning bankruptcy exemptions are available through state law as opposed to federal law. Exemptions may be used by property owners and limits apply. Below are a just a few examples of the amount of equity that may be exempt by property owners in chapter 7 Ohio bankruptcy.
- Homeowners Exemption: $ 145,425.00
- Motor Vehicle Exemption: $ 4,000.00
- Cash Exemption: $ 500.00
- Personal Injury Awards: $ 25,175.00
- Tools of Trade Exemption: $ 2,550.00
- Wild-Card Exemption: $ . 1,250.00
- Whole Life Insurance: ** read special consideration below
- **Whole like exemptions and other protections vary by case. Discuss both cash surrender values and beneficiaries named in your policy with your Toledo bankruptcy lawyer. The best place to start is by obtaining our recent policy statement from your insurance agent.
YES!!!! Bankruptcy is intended to give you a fresh start. After the completion of your bankruptcy case, it is not uncommon to receive new credit offers. However, we advise our clients to be prudent in choosing any credit after a bankruptcy. Over time you can improve your credit score.
Congress, requires all bankruptcy debtors must complete two (2) credit counseling courses prior to the discharge of their bankruptcy case. (pre-filing course and post-filing course). This requirement is intended to assist the debtor in maintaining financial success after a bankruptcy. These courses are offered both online and via telephone. Most courses charge a nominal fee.
Fees vary according to the complexity of each case. The typical fees in most cases include attorney fees, court filing fees, and nominal credit counseling fees. Typically what a debtor spends on bankruptcy fees is a small percentage of their overall debt. Chapter 7 bankruptcy debtors may qualify for our “Express File” discount.
Many debtors ask “how is it possible to pay for a bankruptcy when they have no money?” Scroll down this page to read more about whether payment plans may be available for bankruptcy and are there other bankruptcy payment options? Despite the price, focus on quality as opposed to solely price.. Most people to Google search for the cheapest medical or dental care, and the same rule is prudent for good lawyers.
One non-bankruptcy option may be a “creditor negotiation”. Local attorney Scott France may be able to personally negotiate a customized repayment plan or lump sum settlement on your behalf. Creditor negotiations may be appropriate for debtors who are trying to avoid a wage garnishment, but have a smaller amount of debt. A creditor negotiation is not bankruptcy. Generally, attorney fees for creditor negotiations average approximately $250-$300 each.
No, you and your spouse are not required to file for joint bankruptcy. While there are no additional attorney fees for filing jointly with a spouse, this decision typically depends on a variety of individual factors.
Yes, having your own bankruptcy attorney is not required. However, many pro se debtors find the bankruptcy laws, procedures, and filing deadlines confusing. Hiring a bankruptcy lawyer to clean up unforeseen problems can sometimes be more expensive than hiring an experienced Toledo bankruptcy attorney in the beginning. Having your own bankruptcy attorney may mean the difference between successfully obtaining your fresh start and having your case dismissed. .
Maybe. Be sure to ask your family attorney about their experience in bankruptcy law, both chapter 7 bankruptcy and chapter 13 bankruptcy. If your family attorney is not up to date on the latest bankruptcy law changes, simply ask him or her for a referral to a bankruptcy attorney near Toledo, Ohio.
Bankruptcy News In The Headlines
Bankruptcy News Headlines
- “When & Reasons Why/To File Bankruptcy” SOURCE: Money Crashers; Kira Botkin; 2019
- “Barneys Explores Possible July Bankruptcy” SOURCE: CNBC, Lauren Hirsch; July 13, 2019
- “Charming Charlie…Chapter 11 Bankruptcy” SOURCE: USA Today, Nathan Bomey; July 11, 2029
- May 2019 Toledo Bankruptcy Filing Statistics SOURCE: US Bankruptcy Court, OHNB; updated June 18 2019
- “Things Remembered…Files Bankruptcy” SOURCE: Warren Tribune Chronicle, by Ron Selak Jr.; Feb. 7, 2019
- “Gymboree Closing Stores…Files Bankruptcy” SOURCE: CBS TV 10 Columbus, Ohio; January 17, 2019
Fact Check: Payment Plans and Bankruptcy?
FACT CHECK: SOME PAYMENT PLAN & MYTH BUSTNG!
- TV commercials boasting “Most attorney fees deferred”: While this statement is technically true, the fine print contains a disclaimer that such payment plans are meant for chapter 13 bankruptcies. In a chapter 13 bankruptcy, a debtor may choose to include some of their attorney fees within their monthly chapter 13 repayment plan.
- Newer attorneys offering chapter 7 payment plans. While this is certainly a kind gesture, it has its own pitfalls. In some cases, the debtor continues to feel the burden of 4-6 months of continuing monthly payments, commonly $100.00/month each. It also may create an awkward conflict of interest if the debtor cannot make the payment and then the attorney turns to collection efforts.
- Brand new attorneys. While saving money is always worth considering, in some professions experience does matter. For example consider medicine, dentistry, and law.
- POSSIBLE PAYMENT SOLUTION: Paying for a bankruptcy is rarely easy. Be sure to discuss your concerns with your Toledo bankruptcy lawyer and see if together you can find a workable solution. to get you on the road to recovery faster. For example, in some situations your bankruptcy lawyer may be able to suggest ideas to make it easier to have your chapter 7 bankruptcy paid before your filing appointment. It all starts wth a simple and honest discussion between yourself and your Toledo chapter 7 bankrup lawyer. .
Copyrght 2019. Public, continuous and open use continues. France Law Group, LLC. All rights reserved.