Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free
888-542-1300

Cuyahoga Falls Bankruptcy Law Blog

Before Filing For Bankruptcy, Consider Potential Options

The debts have piled up. The creditors are calling, and you’re wondering where you’ll get the money to pay for your child’s school activities. You’re in a desperate situation, and now you need a plan of action to stave off bankruptcy.

You must be realistic in confronting bankruptcy. Yes, this may be a strong possibility, but you still want to pursue other options. A bankruptcy may have future ramifications on your life by affecting your credit. Prospective employers, for example, may find evidence of a bankruptcy on your credit report and, ultimately, choose not to hire you. Credit card companies, too, may turn their back on you.

Is it possible to recover your finances following a bankruptcy?

Financial problems can be some of the most stressful hurdles to overcome, especially when your troubles involve mounting debts with shrinking deadlines. If you have found yourself considering filing for bankruptcy in Ohio, you may be wondering how your financial situation will be affected in the long-term. While bankruptcy may disrupt your situation and cause disturbances in your credit and ability to get loans for some time, it is possible to slowly rebuild your financial health. 

Once the dust settles after your bankruptcy is filed and resolved, it is imperative that you incorporate proactive behaviors that will help you establish a new groundwork of solid financial decisions. You should be wary of overspending during this period as it is critical that you do everything with care as you identify areas where improvements can be made in your previous habits. 

Chapter 13 bankruptcy and restructuring debts

When people are facing the challenges of dealing with ongoing financial problems, one of their only options may be to file for bankruptcy protection in Ohio. While it is generally recommended that people explore other options before choosing to file for bankruptcy, their ultimate decision may not be as detrimental as many believe it to be. When leveraged the correct way, bankruptcy can help people to escape the pressures of being in debt and allow them new opportunities to rebuild their financial health. 

According to the Internal Revenue Service, Chapter 13 bankruptcy allows people to have the chance to reorganize their debt in a way that will allow them to eventually pay back their creditors without accumulating damaging consequences. What people should remember is that reorganizing debt is only an option for those who are up-to-date on their tax filings and can show a reliable history of income. 

Life after bankruptcy: what happens to your credit?

Suffering from debt is a heavy burden. You may feel like you can never recover or more forward with your life, but this is not true. Filing for bankruptcy can help you get back on your feet and get a fresh start. If your debt is weighing heavily on your mind, you might be considering making the decision to file for bankruptcy. However, you might still hesitate at the thought. Bankruptcy can be considered a taboo word, like a scarlet mark on your record.

While it is true bankruptcy will affect some parts of your life, there are ways to recover. Your credit score, for example, will not be ruined forever.

Talk of a joint venture to prevent sale of Downtown properties

While there are a few situations in which bankruptcy might be abrupt and out of one's control, the financial downfall that ultimately leads to one having to file for bankruptcy can oftentimes be halted with the adjustment of a few key factors. When an entity does succumb to bankruptcy in Ohio, the outcome can create lingering consequences that will take time and resources to fully recover from. 

In a recent story out of El Paso, Texas, an embattled businessman has developed an elaborate plan to overcome an inevitable bankruptcy filing that is quickly approaching by proposing a joint venture. The agreement would involve his son-in-law who is a prominent businessman in the area as well. A Chapter 11 bankruptcy filing would be in place to reassess what can be done to pay off an overlying amount of debt. However, the joint venture agreement was denied by the answering party and now it is appearing as though several Downtown El Paso buildings will go to bankruptcy court to be auctioned off. 

Reviewing household item exemptions

Many in Cuyahoga Falls may hold misconceptions about personal bankruptcy, the chief among these being that it is somehow perceived to be a way for one to take "the easy way out" from their financial struggles. The fact that (according to information compiled by the U.S. Judiciary Branch) there were 12.8 million consumer bankruptcy petitions filed in the U.S. between 2005 and 2017 might seem to reinforce this assumption. Yet in reality, there is nothing easy about the decision to seek bankruptcy protection. Those faced with it also have to worry about that impact that it may have on their property and assets. 

The protection afforded by a personal bankruptcy can provide one with the opportunity to re-establish themselves on firm financial footing by avoiding debt collection efforts by creditors. That benefit, however, might mean little if one were forced to forfeit all of their personal property in exchange. Exemptions allow bankruptcy filers to protect their interest in certain assets. Most focus on the exemptions afforded to help keep one's house and car, yet people need much more than that to survive. 

What are the Chapter 7 and Chapter 13 eligibility requirements?

If you feel overwhelmed with crushing debt, filing for bankruptcy may be a way that you can reboot your finances and start over. There are usually two types of bankruptcy that individuals in Ohio may file: Chapter 7 and Chapter 13. Chapter 13 is reorganization bankruptcy in which you and the court work together to formulate a plan for you to repay the debt that you owe over the course of several years. Chapter 7, on the other hand, is a liquidation bankruptcy in which you pay off your debts by selling off some of your assets.

Both Chapter 7 and Chapter 13 have their own strengths and weaknesses, and if you are considering bankruptcy, you may think that one or the other seems preferable. However, it is not as simple as that. According to FindLaw, Chapter 7 and Chapter 13 each have their own eligibility requirements, and you must meet eligibility requirements in order to file.

What property is exempt from Chapter 7 bankruptcy?

Even when in the direst of financial straits, you may be reluctant to file for Chapter 7 bankruptcy in Ohio. You may be afraid that you will need to forfeit everything you own in order to pay off your debt, leaving you with nothing.

In reality, this is almost certainly not the case. Believe it or not, bankruptcy exists for the debtors' benefit. According to FindLaw, the purpose of bankruptcy, regardless of which chapter you file, is to help you get out from under crushing debt and start over financially. Therefore, selling off everything you own, leaving you with nothing with which to make a fresh start, would be counterproductive.

Taking A Tactful Approach Toward Overcoming Medical Bills

An uninsured college student with a tonsillectomy; a mother receiving medical treatment for lymphoma; and a retiree overwhelmed with prescription drug costs. Three different scenarios that all have one main thing in common: medical debt.

Medical costs in the U.S. continue to soar. Such a financial burden can affect anyone from any generation. It can lead to uncertainty, unresolved stress and even bankruptcy. Medical bills continue to be the most common cause for bankruptcy in the U.S.

What debts are excluded from Chapter 13 discharge?

If you qualify for Chapter 13 bankruptcy, it offers you many potential benefits. Because a Chapter 13 bankruptcy reorganizes your debt rather than liquidating assets in order to pay it off, in most cases you will be able to retain your property in Ohio, such as your house or your car, when you file for Chapter 13 bankruptcy. At the end of your repayment period, if you have kept up your payments on time, most of your debts will no longer remain.

However, filing Chapter 13 cannot make all your debts simply disappear. According to FindLaw, certain debts are ineligible for Chapter 13 and will remain even after your discharge is complete. For example, financial penalties that you incurred by breaking the law, such as drunk driving liabilities, are not included in your Chapter 13 filing. 

Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions