When you have bills that you cannot pay, debt collectors knocking at your door, or impending foreclosure proceedings, filing for bankruptcy may be the answer. Bankruptcy is a federally protected program for consumers and businesses to either eliminate their debt or pay back their creditors. If you are facing a financial crisis, filing for bankruptcy can turn your dilemma into a plan for securing your personal, your family’s, or your business’s future. By reorganizing your debt and selling your assets, you may be able to avoid massive debt payments.
If you’re considering filing for bankruptcy, the Luftman, Heck & Associates bankruptcy team can put its knowledge and experience at your service today.
What Bankruptcy Issues Can I Get Help With?
At Luftman, Heck & Associates, we are committed to providing our clients with effective and personalized representation as they enter bankruptcy proceedings. Effectively managing the bankruptcy process can ensure your financial security for years to come. You can learn more about bankruptcy and the services we provide by reading below.
- About Bankruptcy–Bankruptcy is a legal procedure created under federal law that allows businesses and individuals to manage the repayment of their debt or to eliminate their debt completely. There are two types of bankruptcy: liquidation and reorganization. Depending on your circumstances, you may qualify for either type of bankruptcy. While the Bankruptcy Code sets out the substantive law of bankruptcy, its procedures are dictated by both the Federal Rules of Bankruptcy Procedure and the rules specific to your local bankruptcy court.
- Types of Bankruptcy–The most common type of bankruptcy is a liquidation or Chapter 7 bankruptcy. Under this kind of bankruptcy, individuals or businesses that cannot repay their creditors can have their debts vacated and get a fresh start. The cost of going into Chapter 7 is that all or most of your assets will be liquidated, which means that they will be sold so that you can repay your creditors to the greatest extent possible. Chapter 13 bankruptcy, on the other hand, allows you to keep your property. You will repay your creditors under a court-approved repayment plan. This kind of bankruptcy is called reorganization.
- Bankruptcy Debt Relief–Filing for either Chapter 7 or Chapter 13 bankruptcy can effectively resolve many different kinds of debt issues. If you can’t pay your medical bills, owe a significant amount on your credit card, or are being harassed by collection agencies acting on behalf of your creditors, filing for bankruptcy may be the solution. Although bankruptcy cannot usually be used to discharge student loan debt, you may be able to do so if you can demonstrate sufficient hardship.
- Bankruptcy & Your Assets–Filing for bankruptcy is a significant life event. It frees you from your debt, but there are consequences. You may have to part with your favorite possessions, your car, or even your home. But a good bankruptcy lawyer may be able to protect some of your assets. For example, some of your property may qualify for an exemption and thus remain untouched during the bankruptcy procedures. If you are making payments (and are able to continue to do so) on your home and car, you may be able to keep them too.
- Stop Collection Activity–Filing for bankruptcy may be the best way to stop debt collectors from harassing you and your family. This is because when you file for Chapter 7 or 13 Bankruptcy, the court will put in place an automatic stay that prohibits debt collectors from contacting you. The automatic stay will also put your home’s foreclosure on hold. And if you are facing vehicle repossession or wage garnishment, your bankruptcy lawyer may stop it by obtaining a specific court order.
- Life After Bankruptcy–There may be a negative stigma attached to bankruptcy, but it’s a completely legal method for discharging debt used by millions of individuals and businesses across the country. In the immediate aftermath of your bankruptcy, it will be difficult for you to obtain another credit card or a mortgage, but you can rebuild your credit score over time through the responsible management of your finances and the incremental use of credit. Your Cleveland bankruptcy lawyer can advise you on how to organize your finances after bankruptcy to secure a better future.
The Ohio bankruptcy lawyers of Luftman, Heck & Associates understand how stressful and confusing filing for bankruptcy can be. If you are considering filing for bankruptcy, it is likely that you are facing overwhelming financial issues. Our goal is not just to help you get the best out of your bankruptcy, but also to take the stress and confusion out of these complicated procedures. To learn more about how we can help you specifically, call us today for a free and confidential consultation of your case.