SKILLED IN BANKRUPTCY CASES
BANKRUPTCY CAN HAPPEN TO ANYONE. THERE IS HOPE.
Are you receiving an endless stream of calls and letters from creditors and debt collectors? Are your wages being garnished? Are you facing the foreclosure of your home? Has your license been suspended due to traffic or parking tickets? If so, it may be time to consider exploring bankruptcy protection. No matter your specific financial circumstances, you have legal options available. There is a path out of financial distress and back to stability. If you are thinking about filing bankruptcy, an experienced attorney will be able to answer your questions and help you make informed decisions.
At Groth & Associates, our Toledo bankruptcy lawyers work tirelessly to help our clients find the most effective solution to their financial issues. There are several chapters under the Bankruptcy Code that a consumer can file; we will help you decide which chapter is the best for you. Further, our legal team will also help you explore every option of NOT filing for bankruptcy. If you or your family member is considering seeking bankruptcy protection in Ohio, we can help. Please contact our Toledo law office today for a free, no obligation initial consultation.
THE FIRST STEP: WE WILL EXPLORE YOUR ALTERNATIVES TO BANKRUPTCY
Are you receiving an endless stream of calls and letters from creditors and debt collectors? Are your wages being garnished? Are you facing the foreclosure of your home? Has your license been suspended due to traffic or parking tickets? If so, it may be time to consider exploring bankruptcy protection. No matter your specific financial circumstances, you have legal options available. There is a path out of financial distress and back to stability. If you are thinking about filing bankruptcy, an experienced attorney will be able to answer your questions and help you make informed decisions.
At Groth & Associates, our Toledo bankruptcy lawyers work tirelessly to help our clients find the most effective solution to their financial issues. There are several chapters of Bankruptcy that a consumer can file and we will help you decide which chapter is the best for you. Further, our legal team will also help you explore every option of NOT filing for bankruptcy. If you or your family member is considering seeking bankruptcy protection in Ohio, we can help. Please contact our Toledo law office today for a free, no obligation initial consultation.
For a free legal consultation with a Personal Injury lawyer serving Toledo, call (419) 930-3030
WHAT YOU NEED TO KNOW ABOUT CHAPTER 7 BANKRUPTCY
Understanding the Basics
Chapter 7 Bankruptcy also known as “liquidation” or “complete” bankruptcy, and is the most common type of bankruptcy filing. It will eliminate debts such as credit card, medical, and certain other types of debt. During the Chapter 7 process, an intake is done of the client’s income, assets and debts owed. There is a myth that everyone who files for Chapter 7 Bankruptcy will lose all of their possessions. With the application of “exemptions,” and with the help of an experienced bankruptcy attorney, you will be able to keep all or most of your property. During the process, you will have to attend a meeting of creditors, also called the 341 meeting. A Chapter 7 Bankruptcy will normally last between four and six months before it is discharged.
Who is Eligible for Chapter 7?
Not everyone is eligible to file for a Chapter 7 bankruptcy. As explained by the United States Courts, Chapter 7 bankruptcy petitioners must satisfy a “means test,” which reviews the last (6) months of gross income. If it is higher than the median monthly income in your state (Ohio) on a household-sized adjusted basis, you may be deemed ineligible for Chapter 7 bankruptcy protection. A deeper assessment of your financial situation will be required. However, if your monthly income is below median income in Ohio, you will satisfy the Means Test.
Advantages of Chapter 7 Bankruptcy
Chapter 7 bankruptcy protection offers some important benefits to financially distressed borrowers. First, filing a Chapter 7 petition will make those calls and collection letters stop. More importantly, if you are deep in debt, Chapter 7 is often the best way to get a fresh start. You can discharge many of your debts outright. They will be gone. Finally, it is worth emphasizing the fact that Chapter 7 does allow for generous asset protection.
Drawbacks of Bankruptcy
Of course, there are also some potential downsides to seeking Chapter 7 bankruptcy protection. Unsurprisingly, a Chapter 7 bankruptcy filing will affect your credit rating. In addition, for some borrowers, Chapter 7 may expose certain assets. A Chapter 7 will not address certain types of debt that other chapters do. Our Toledo, OH Chapter 7 bankruptcy lawyer will help you understand and assess the potential drawbacks when compared with your other available options.
Personal Injury Lawyer Near Me (419) 930-3030
WHAT YOU NEED TO KNOW ABOUT CHAPTER 13 BANKRUPTCY
Understanding the Basics
Chapter 13 bankruptcy is often called a “restructuring” or “reorganization” bankruptcy. A Chapter 13 bankruptcy is intended for people who need to bring their house payments current, those who have tax or domestic support debt, people who wish to repay some or all of their unsecured debt, or those who do not qualify for Chapter 7 bankruptcy relief under the Means Test. Chapter 13 can also stop foreclosure and give you the opportunity to clear up your defaulted mortgage payments, reduce your car loan interest rate, and help you repay tax debt without penalties and fees. During Chapter 13 which normally will last 3-5 years, you will make a monthly payment to the Trustee and the Trustee will distribute payments to the creditors. Additionally, a portion of your attorney’s fees can be wrapped into your monthly plan payments.
Who is Eligible for Chapter 13?
While it is much easier to qualify for Chapter 13 than it is for Chapter 7, there are some criteria that must be met. Most notably, Chapter 13 petitioners must be up to date on their taxes. If you have not filed your taxes, your petition for Chapter 13 will not go forward. Tax issues must be resolved first. Further, there are some debt limitations. Finally, you must have enough disposable income to create a viable restructuring plan. U.S. bankruptcy courts will not approve a Chapter repayment plan that is destined to fail. Where in a Chapter 7 the Means Test is used to determine eligibility, in a Chapter 13, it is used to determine the length of the plan and how much, if any, will be paid to general, unsecured creditors.
Why File for Chapter 13 Bankruptcy Instead of Chapter 7?
A Chapter 13 bankruptcy is a powerful tool to bring house payments current rather than lose a home to foreclosure, to repay tax debt, or to get caught up on child or spousal support. Some people file for Chapter 13 simply because they are not eligible for Chapter 7. In that case, it may simply be the best available option. Beyond that, Chapter 13 bankruptcy protection is actually the better choice for some financially distressed borrowers. For example, it is often best for people who could repay a significant portion of the debts, if only they were given more time and/or different terms. Chapter 13 can also work best for distressed borrowers who own nonexempt property that they want to keep.
WHY HIRE THE TOLEDO BANKRUPTCY LAWYERS AT GROTH & ASSOCIATES
Unfortunately, creditors and debt collectors do not make things easy. Beyond that, navigating the bankruptcy process is notoriously complex. At Groth & Associates, we help you find the right debt relief solution and we will protect your rights and interests. Among other things, our Toledo personal bankruptcy attorneys are ready to:
Conduct a free, comprehensive evaluation of your financial circumstances;
Help you explore every available alternative to bankruptcy;
Explain the specific benefits and drawbacks of filing for Chapter 7 bankruptcy vs. Chapter 13 bankruptcy;
Take proactive steps to protect your assets;
Prepare a bankruptcy petition.
We know that one-size-fits-all solutions simply do not work well in bankruptcy cases. You deserve a Toledo, OH bankruptcy attorney who will take the time to understand your unique situation and to provide you with the full personalized legal representation that you rightfully deserve. Our law firm will get you results.
Get Help From Our Toledo, OH Bankruptcy Attorneys Today
At Groth & Associates, our Ohio bankruptcy lawyers are experienced advocates for clients. If you are facing serious financial stress, we will help you get answers. To arrange a free, completely confidential review of your case, please contact our law firm right away. From our law office in Toledo, we handle bankruptcy matters throughout Northwest Ohio, including in Bowling Green, Findlay, Maumee, Perrysburg, and Fremont.
Call or text (419) 930-3030 or complete a Free Case Evaluation form
