Bankruptcy FAQs That Prepare You For Sound Debt Relief Decisions

Can you tell me the difference between Chapter 7 and Chapter 13 bankruptcy?

Those who qualify for Chapter 7 "fresh start" bankruptcy protection receive immediate debt relief. For example, medical debt and credit card debt are discharged (eliminated). Chapter 13 reorganizes debt and offers a comfortable three- to five-year repayment plan.

Do I have to give up my home or car in a Chapter 7 bankruptcy?

Not necessarily. There are many exemptions in place for Chapter 7 bankruptcy that allow you to keep assets such as your house, your car and personal items such as family heirlooms. As your personal injury attorneys, our goal is to maximize these exemptions, so you can keep as many of your assets as legally possible.

I've heard about the "automatic stay." What is it?

The automatic stay in consumer bankruptcy instantly stops obstacles such as motor vehicle repossession efforts by a creditor, the threat of mortgage foreclosure, court-ordered wage garnishment and creditor harassment in general. Getting rid of these distractions helps the filer focus on repaying debt and repairing credit.

What causes the kind of financial distress that results in a bankruptcy, anyway?

Many bankruptcy candidates find themselves on shaky financial footing through no fault of their own. An expensive divorce, health care costs after a serious illness or injury, credit card debt, loss of a job — any number of factors can contribute to the need to file for bankruptcy.

I'm suddenly out of work, and I have fallen far behind on mortgage payments. Is there a way I can avoid foreclosure and keep possession of my home?

Foreclosure defense is an important subset of any bankruptcy practice. Your attorney can explain options like a short sale of the property, negotiation of a loan modification with a creditor, a lien stripping or bankruptcy filing that buys you time to defend your rights.

Can I represent myself and put together my own bankruptcy filing, to save some money?

Debt relief is not a do-it-yourself proposition. You should have a lawyer speak for you at all times, in detailed documentation and in court if necessary. The bankruptcy plan you emerge with will be customized to suit your specific individual and family situation. These are the kinds of quality legal services that can pave the way to your brighter future. One call or email to our Kennel Zeigler LLC law offices in Dayton, Ohio can get the ball rolling.

*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.