Bankruptcy is a legal tool that has provided relief for many Americans. If you are facing severe financial circumstances because of a divorce, investment mistake, job loss, medical condition, or another life-chaning situation, Chapter 7 or Chapter 13 bankruptcy may be right for you. It can stop creditor harassment and wage garnishment, save your home from foreclosure, and free you from your overwhelming debt.
An experienced Lorain bankruptcy lawyer from Luftman, Heck & Associates can evaluate your situation and determine which type of bankruptcy can benefit you and your family. For a free consultation, call our firm today at (216) 586-6600.
About Lorain County
The United States Census Bureau data from 2011 to 2015 shows that the median household income in Lorain County is $52,457 while the per capita income is $26,804. Around 13.5 percent of the residents in the county are living at poverty level. With such a high number of residents living in poverty, debt is common. For people living above and below the poverty level, bankruptcy can help when debt becomes overwhelming. Our Lorain County bankruptcy lawyers at Luftman, Heck & Associates can help.
How a Lorain County Bankruptcy Attorney Can Help
Although both Chapter 7 and Chapter 13 bankruptcy can improve your finances and provide you with debt relief, they work in different ways. A Lorain bankruptcy lawyer can explain how each type of bankruptcy works and determine whether you are eligible for Chapter 7 or Chapter 13 bankruptcy.
Through a means test, an attorney can find out if your monthly income is below the Ohio average for a household of your size. If it is, you will likely qualify for Chapter 7 bankruptcy where a sale of your property will be applied towards your debts and your unsecured debts like credit card bills will be discharged in four to six months. It’s important to understand that other debts like child support, alimony, and student loans cannot be discharged in a Chapter 7 case.
In the event that you do not qualify for Chapter 7 bankruptcy, a Lorain bankruptcy lawyer can use a means test to determine if your monthly income is sufficient for a Chapter 13 bankruptcy repayment plan. If the means test proves that you do have enough income to repay some of your debts, you can file for Chapter 13 and make an affordable payment every month for the next three to five years. After the term of the repayment, any remaining debts that you owe will be discharged.
Filing for Chapter 13 bankruptcy can help you prevent a foreclosure on your house, save you from accruing interest on certain debts, allow you to catch up on missed mortgage and car payments, and give you the chance to catch up on some taxes you owe and renegotiate some of the terms of your debts.
An automatic stay will be placed on creditors in both types of bankruptcies, meaning you will no longer receive phone calls or letters related to your debt. In addition, any wage garnishment will be stopped and you will be able to regain control of your finances. With a Lorain County bankruptcy attorney, you can be guided through each stage of the Chapter 7 or Chapter 13 bankruptcy process and avoid making any mistakes that can cost you time and money.
Searching for Debt Relief? Contact a Lorain Bankruptcy Lawyer Today
If you are facing mounting debts and are ready to solve your financial hardships, you owe it to yourself to call a highly skilled Lorain bankruptcy lawyer from Luftman, Heck & Associates at (216) 586-6600, or you can reach out by contacting us online. Our firm is well-versed in Chapter 7 and Chapter 13 cases and looks forward to helping you and your family get back on track financially.