OUR NORTHEAST OHIO BANKRUPTCY LAWYERS WANT YOU TO KNOW
You Have a Right to Bankruptcy Protection
If you're like most people, you'll be surprised to learn, from our Northeast Ohio bankruptcy lawyers, that the foundation for bankruptcy laws is found in the U.S. Constitution. Our Founding Fathers knew that everyone deserves and needs a fresh start from time to time. So in the Constitution they included, "The Congress shall have Power [t]o establish ... uniform Laws on the subject of Bankruptcies throughout the United States" (Article I, Section 8, Clause 4.)
Federal Law and Ohio Law Instill Your Rights to a Fresh Start
Your rights to bankruptcy protection have been codified into law by the U.S. Congress in Title 11 of the United States Code. The federal law outlines the procedure for bankruptcies.
Ohio also has bankruptcy laws which outline your property rights. In other words, Ohio law protects your property rights (i.e. the right to keep some of your property), outlined in the state's exemptions.
The Two Forms of Bankruptcies for Individuals and Married Couples
While business entities also benefit from bankruptcy protections, there are two forms of bankruptcies for individuals and married couples. You've likely heard of these. They are Chapter 7 and Chapter 13 bankruptcies.
There are about 1,400,000 such bankruptcies filed each year; so you are not alone. As soon as your bankruptcy petition is filed, all creditor harassment will stop, immediately. This means no more stressful collection phone calls and demand letters; no more lawsuits demanding money; foreclosures are halted or stopped; all wage garnishments and all shut-off notices are halted and stopped. Attorneys at Amourgis & Associates could get you instant relief at the very beginning of the bankrupcy.
Chapter 7 Bankruptcy in Ohio
If you qualify via a "means test," meaning your income is under the Ohio median income, and other tests, your unsecured and secure debts will be discharged. This means that they go away. You do not have to pay them back, ever.
- You have the opportunity to reaffirm debts for property you wish to keep, such as your house and your car, assuming you can make the payments, although you can even keep them without formally reaffirming those debts.
- Ohio has exemptions which allow Chapter 7 bankruptcy filers to keep all or much of their property. For example, you can keep significant equity in your house, cars, jewelry, tools of the trade, and personal property.
Chapter 13 Bankruptcy in Ohio
If you don't qualify for a Chapter 7 discharged in bankruptcy, you can simply consider a Chapter 13 bankruptcy instead. This is especially good when you just want to catch up on a few months of house and car payments, because you can do it at zero percent interest over a long period of time (3-5 years). Chapter 13 is a debt reorganization bankruptcy. While you may likely be able to have many of your debts reduced, those debts could be discharged with a low cost repayment plan (with zero interest and zero penalties and zero late fees). Our Northeast Ohio bankruptcy attorney could help devise a 3 to 5 year repayment plan, which must be approved by the bankruptcy Trustee.
- Chapter 13 protections give you a "breather," allowing you to pay the debts you really need to pay, such as for your car and house, while sometimes paying very little for your credit cards. This reorganizes your money in favor of your family and creates the stability you need.
- If you can afford to pay the car payment (which can sometimes even be reduced) and mortgage, you can keep both your car and your house.
Where to Get More Information about Filing a Chapter 7 or a Chapter 13 Bankruptcy in Ohio
If you're like most people, you have fears, questions, and concerns about filing bankruptcy in Northeast Ohio. Our bankruptcy attorneys help people just like you throughout NE Ohio and the Akron, Cleveland, and Canton areas.
We offer a free bankruptcy case review; so, feel free to contact us now and stop the creditor harassment. Call Amourgis & Associates at 1-800-444-1967 or email us now; we will respond to you within 20 minutes. All inquiries are confidential, free, and at no obligation. You have nothing to lose, except your debt.
Here are a few links to some important resources:
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