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Effectively Addressing Debt With Personal Bankruptcy
A number of families in northeastern Ohio face financial hardship each year. Due to unexpected medical costs, layoffs or high credit card bills, they run the risk of developing unmanageable debt. Many of these individuals could benefit from considering bankruptcy. While the idea of bankruptcy may cause anxiety, it can actually be a useful tool to regain control of your financial future. Roderick Linton Belfance, LLP, has provided experienced bankruptcy guidance to families since 1885, and can help you reclaim control of your debt.
Evaluating Your Bankruptcy Options
Under the Bankruptcy Code, individuals can file for bankruptcy under Chapter 7 or Chapter 13. Our attorneys can evaluate which method to pursue given your family’s circumstances, and assist you through the process.
- Chapter 7 bankruptcy eliminates debt completely and is commonly known as liquidation bankruptcy. You may sell some assets to repay debts, but you are able to retain exempt property. Using this method, you can completely eliminate most debt. Some types of debt, known as nondischargeable debt, must still be repaid such as student loans or mortgage payments.
- Chapter 13 bankruptcy reorganizes your debt and creates a manageable repayment plan that typically resolves bankruptcy over a three-to-five-year span. Unlike Chapter 7 that liquidates assets to pay off debts, you use your income to repay debt in Chapter 13. To qualify, you must be able to prove that your income is paid in regular intervals and that it is high enough for you to afford regular payments.
Protecting Your Assets
Filing for bankruptcy may protect your ability to retain key assets, including your primary residence and your car. Once you file a Chapter 7 petition, creditors are no longer allowed to harass you for money, and most collection actions are halted. This can protect your house from foreclosure or car from repossession.
Under Chapter 7 bankruptcy, some of your nonexempt assets may be sold off to pay down your debts. However, if you file for Chapter 11 bankruptcy, you are able to retain all of your assets. Debt repayment is achieved with regular payments out of your salary instead.
Contact Us To Reclaim Control Of Your Debt
If you are considering bankruptcy, you deserve to work with an experienced law firm that can confidently assist you through the process. We provide the skill of a big city firm at manageable Akron prices. Call the lawyers of Roderick Linton Belfance, LLP, at 234-281-4949 to discuss your options, or contact our firm online.