Bankruptcy FAQ

At our firm, we understand that each case is unique, and we believe in fairness. We don't have a fixed fee for everyone because we recognize that some cases are straightforward, while others may be more complex. After discussing your specific situation with us, we will be delighted to provide you with a personalized quote. Feel free to give us a call to explore the options tailored to your needs.

A joint petition refers to the submission of a single bankruptcy filing by a married couple. This option is available exclusively to individuals who are legally married at the time of filing. Filing jointly can streamline the bankruptcy process and potentially reduce legal and administrative expenses for the couple.

The bankruptcy trustee in a Chapter 7 case is tasked with ensuring that all your paperwork is accurately filed and, on rare occasions, selling any of your assets that are not exempt from seizure. In contrast, the Chapter 13 trustee oversees the administration of your repayment plan and ensures that it complies with bankruptcy laws.

Certain types of taxes may be discharged in bankruptcy, though the specifics can be complex. Once we understand the details of any taxes you owe, we can provide tailored advice on how bankruptcy could potentially affect your tax liabilities and determine the most suitable form of bankruptcy for your situation based on your tax circumstances.

Please click on the "Counties We Serve" section on our website to see if you reside in one of the counties we cover. If you do, we are able to represent you. Alternatively, you can call us, and we can quickly confirm your eligibility for our services. We have a strong presence throughout Northeast Ohio, and it is highly likely that we can represent you.

Bankruptcy offers a powerful solution that can significantly alleviate financial burdens. It effectively releases you from most, if not all, of your debts, which is a substantial advantage. It also allows you to retain ownership of essential assets like your home or vehicle, even if you are behind on payments. Furthermore, it halts all creditor harassment, providing much-needed relief from stress. Bankruptcy prevents wage garnishments, repossessions, and the imposition of liens on your property. It also ensures your utilities remain connected, or can even restore services that have been disconnected. Ultimately, filing for bankruptcy provides you with a fresh start, enabling you to rebuild and improve your credit from its prior state.

That is actually a common misconception about bankruptcy. In reality, many people find that their credit rating begins to improve soon after they complete their bankruptcy process. It's not uncommon for individuals to qualify for new home purchases within two years or less following their bankruptcy. If you have any questions or need further clarification, please don't hesitate to give us a call. We're here to help you understand the benefits and implications of bankruptcy.

It's definitely not too late. We can stop a garnishment almost immediately—within minutes of filing your bankruptcy. This swift action can provide you with immediate relief and protect your income as we proceed with your bankruptcy case.

Student loans are generally not dischargeable in bankruptcy unless repaying them would cause undue hardship for the debtor or their dependents. Proving undue hardship can be challenging. However, there is a specific form of bankruptcy that could potentially help manage your student loan payments more effectively. We encourage you to discuss this option with us to explore the best strategies for your situation.

An entire denial of a discharge completely blocks the debtor from being released from all debts. In other words, despite having filed bankruptcy the debtor still owes all his or her debts. On the other hand, if a particular debt is not dischargeable, the debtor is obligated to pay that particular debt, but is released from the remaining dischargeable debts.

Typically, a Chapter 7 bankruptcy discharge is granted about four months after the filing date. In the case of Chapter 13 bankruptcy, the discharge is issued once you have made all the payments required by your Chapter 13 plan, which usually spans 36 to 60 months from the time of filing. You will receive a more precise timeline when we discuss the specifics of your case. It’s important to note that during the bankruptcy process, whether it takes 36 or 60 months, your creditors are legally prohibited from attempting to collect debts from you, providing significant relief while you work through the bankruptcy process.

Only a married couple can file a joint bankruptcy. Unmarried couples who need to file for bankruptcy must do so separately. Each individual in an unmarried partnership must file their own bankruptcy case if they require relief under bankruptcy laws.

There is no obligation for both spouses to file for bankruptcy together under Chapter 7 or Chapter 13—one spouse can choose to file individually. However, it is often advantageous for both spouses to file together. For more details, please refer to the question, "Should Both Spouses File Bankruptcy?". We are here to provide personalized advice and help you determine the best course of action for your specific situation.

Most commonly, both spouses choose to file for bankruptcy jointly because it is typically more beneficial for them. This approach involves only one filing fee and is particularly advantageous when there are joint debts or when both spouses have significant individual debts. If only one spouse files for bankruptcy, the other remains fully liable not only for their own individual debts but also for the entire amount of any joint debts. Creditors can continue to pursue the non-filing spouse for these joint debts, despite the bankruptcy filing by the other spouse. In a Chapter 13 bankruptcy, the non-filing spouse does receive some protection from creditors concerning some joint debts during the bankruptcy process. However, if the joint debt is not completely settled through the Chapter 13 plan, creditors may subsequently seek payment of the remaining balance from the non-filing spouse. There are circumstances, however, where it might be prudent for only one spouse to file. This could be the case if the non-filing spouse possesses valuable property that could be jeopardized by bankruptcy proceedings, has minimal or no debt, or if filing jointly would disqualify the spouses from qualifying for a certain chapter of bankruptcy. These scenarios can be complex but can be thoroughly explained and strategically planned with the help of our attorneys to ensure the best possible outcome.

Generally, no. However, there are instances where you may seek relief against your former spouse in divorce court. This is a matter that should be discussed with your domestic relations attorney and/or bankruptcy attorney before finalizing your divorce papers. In most cases, you may also need to file for bankruptcy to be released from the obligation of paying joint debts.

Deciding whether bankruptcy is the right step can feel overwhelming, and every situation is unique. The most helpful way to understand your options is to speak with an experienced attorney who can review your circumstances and guide you through what may be available to you.

Many people find it beneficial to explore their options sooner rather than later, as early guidance can help protect assets and reduce financial stress. Bankruptcy may be worth considering if you’re experiencing any of the following:

• Your vehicle has been repossessed or is at risk of repossession
• Your home is in foreclosure or nearing foreclosure
• You are prioritizing payments to certain creditors due to pressure or collection efforts
• You are only able to make minimum payments on credit cards
• You are receiving frequent calls or notices about unpaid bills
• You have refinanced your home to manage other debts
• You are relying on credit cards to cover everyday expenses like groceries or utilities
• Your utilities have been shut off or may be soon due to nonpayment
• Financial strain is causing significant stress or affecting your daily life

If any of these situations sound familiar, it may be a good time to have a conversation about your options. A consultation can provide clarity and help you make an informed decision about the best path forward.

Absolutely. Bankruptcy releases you from stress that can be ruining your life or even causing medical harm. Talk to us as soon as possible and we can help you decide whether to file.

While options like debt consolidation or repayment plans are available, they are often less effective than bankruptcy for many people. These alternatives can take longer, cost more overall, and may not provide full protection from creditors.

Bankruptcy is specifically designed to offer meaningful relief and legal protection. The best way to determine what’s right for you is to review your situation with an attorney, who can explain your options clearly and help you make an informed decision.

Yes, you have to take two: one before you file and one after you file. If you do not do this, your bankruptcy discharge will be denied and you will continue to owe your debts. We can give you more information about the cost and the companies that provide these courses which can be done by phone or over the internet. We have collected the names of companies which charge the lowest fees and offer the best service.

By the time you consider filing, your credit may already be in bad shape. Bankruptcy will actually enable you to rebuild your credit and give you a fresh start. Most people find that bankruptcy improves their credit as soon as it is completed.

Most people who file bankruptcy do not lose any property or only a small amount. You can discuss that with us to find out what the effect on you will be and what steps can be taken to protect your property, if necessary.

Not necessarily. In many cases, a Chapter 13 bankruptcy can allow you to keep your car and catch up on missed payments over time.

If you file under Chapter 7 and are behind on payments, there is a higher risk of repossession. However, the outcome depends on your specific situation and the options available to you.

An attorney can review your circumstances and help you understand the best way to protect your vehicle.

You usually can save your house if you file a chapter 13 bankruptcy which will stop the foreclosure and give you time to catch up on your payments. We can explain this in more detail if you consult with us about this.

Yes, medical debts are one of the most common types of debts that are discharged in bankruptcy.

In many cases, it is possible to remove or reduce a lien in bankruptcy. That is something you should discuss with us so that we determine whether that is possible.

Bankruptcy will stop most judgments from being enforced. It will prevent the judgment from resulting in a garnishment of your wages or bank account and from putting a lien on your property. If a judgment lien has been put on your property before you file bankruptcy, it may still be possible to remove the lien through the bankruptcy.

It is a process that may be possible for a chapter 7 to do in which the debtor takes out a new loan usually on a motor vehicle and pays off the old loan in an amount equal to the value of the vehicle, NOT the balance on the loan. Sometimes a great deal of money can be saved in this manner. We will tell you if a redemption may be possible for you and we will help you get it done if it is possible.

A reaffirmation is a process by which the person filing bankruptcy signs papers agreeing to pay a debt as if they had never filed bankruptcy. This is done often to allow them to keep a motor vehicle. We will give you complete advice on reaffirmation and whether you would benefit by it.

In chapter 7, some people keep their vehicles and continue making the same payments. Others allow repossession and bankruptcy wipes out the debt. Others qualify for redemption, which allows them to refinance the loan at a lower balance than what is owed and keep the vehicle. In chapter 13, some people keep the vehicle and make the same payments. Others reduce the interest rate and spread the payments over a longer period. Still others surrender the vehicle and pay little or nothing on the balance. We can explain this in more detail if you call us for a consultation.

Yes. In fact, bankruptcy is often the only way to stop a wage garnishment without paying the debt that resulted in the garnishment.

Yes, in fact this is common. People often pay debts to keep motor vehicles or homes or because they want to maintain a good financial relationship with the creditor such as a family doctor.

Yes. A bankruptcy will stop a foreclosure on a real estate most of the time if the proper type of bankruptcy is filed. Please feel free to discuss this with us.

Very unlikely. Nearly all types of retirement funds are exempted in bankruptcy.

Yes. Bankruptcy will stop your utilities from being shut off.

Yes, after you pay a deposit to the utility company.

Yes, but that does not mean you cannot pay any of them. As explained elsewhere, you can pay any debt that is listed if you wish. In fact, some debts, such as student loans, must be paid.

You can add that debt to your bankruptcy if there is still time to do so. However, if you forgot to include a debt and your bankruptcy case has been closed, the creditor cannot try to collect the debt from you if none of your other creditors were paid anything from your bankruptcy.

It is important to know that bankruptcy does not release from a debt a person who has co-signed on it with the person who is filing bankruptcy, if the co-signer does not file too. Sometimes there are ways to deal with this problem that will protect the co-signer. We will be happy to discuss this with you.

The Bankruptcy Court will send notices to them if you listed them with their address in your bankruptcy papers.

Generally, you can file a chapter 7 bankruptcy and receive a discharge if you file it at least eight years after filing a prior chapter 7 in which you received a discharge and your can file a chapter 7 bankruptcy and receive a discharge if you file it four years after filing a prior chapter 13 in which you received a discharge. You can file a chapter 13 and receive a discharge if you file it four years after filing a prior chapter 7 and receiving a discharge. You can file a chapter 13 two years after filing a prior chapter 13 and receiving a discharge and still receive a discharge in your new chapter 13.

You only need to go to one meeting of creditors. This may be held at the courthouse or some other location. But you will not have to go in front of a judge at this meeting. Instead you will meet with a trustee. We can explain this to you in more detail at a consultation.

In most cases, your employer will not be notified if you file for bankruptcy.

There are limited situations where an employer may become aware—such as if there is a wage deduction in a Chapter 13 case or if they independently access public records—but this is not common.

If you have concerns about privacy, an attorney can explain what to expect based on your specific situation.

There is no specific amount, but of course it is possible to owe so little debt that it will not be advisable to file. You can discuss this with us simply by calling.

This is very unlikely. If your income is too high for a chapter 7, then you can almost always file a chapter 13 and still receive a discharge.

No. While bankruptcy is a public record, it is not widely publicized.

Someone would usually have to be specifically looking for that information to find it. In most cases, people will not know unless you choose to tell them.