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Ways Bankruptcy Can Resolve Financial Problems in Ohio

Bankruptcy Can Stop Wage Garnishment

In Ohio, your wages can be garnished up to 25%. This can be devastating. Losing out on 1/4 of your normal income can make everyday living even more difficult. Filing bankruptcy will stop a wage garnishment by Federal law. Filing bankruptcy will prevent any creditor from beginning or continuing a lawsuit against you.

What usually happens is a creditor files a lawsuit against you in order to create a legal avenue to collect on the debt you owe them. By getting a judgment rendered against you for the money you owe them they can garnish wages, seize funds out of bank accounts, and attach liens to property.  The wage garnishment is sent to your employer and comes directly out of your payroll. This means the money is already taken out of your pay before your pay check is issued or direct deposited into your bank account.

Filing bankruptcy will stop the wage garnishment. As soon as you file your bankruptcy petition, an “automatic stay” will be set in place. The “automatic stay” will stop the creditors’ collection efforts against you.

Stop Foreclosure / Sheriff Sale on Your Home by Filing Bankruptcy

Getting served legal paperwork stating that your home is going into foreclosure or scheduled for sheriff sale can be a freighting prospect. You may be behind in your mortgage payments because of unemployment, underemployment, or added unexpected expenses. Many times calls to banks go unreturned and loan modifications are often denied. Bankruptcy is an option available under the Federal government. Bankruptcy will give you a legal avenue to get current on your mortgage payments if you would like to keep your home or a solution to walk away free and clear if keeping the home is not an option you would like to explore.

If your home is scheduled for sheriff sale, you must take action immediately before it is too late. If nothing is done before the sheriff sale date, your home will be lost and you could be left with an amount of debt that would be nearly impossible to pay off with the amount of income you are receiving.

Filing Chapter 13 bankruptcy would be beneficial if you are behind in your mortgage payments and you would like to find a solution to keep your home. Filing Chapter 13 bankruptcy will stop the foreclosure and a sheriff sale. Filing a Chapter 13 bankruptcy would allow you to get current on your mortgage payments by being able to make payments on the arrears over a period of time compared to trying to come up with a lump sum of money you simply do not have.

As soon as you file your bankruptcy petition, your home will be taken off the sheriff sale listing. Filing Chapter 7 bankruptcy would be beneficial if you are behind in your mortgage payments and you are looking for a solution to get the house off your hands. You may be extremely upside down in your mortgage loan or perhaps the property needs a lot of work. If you are giving up the house in a bankruptcy, the creditor or lender will have to start the foreclosure process all over again after the bankruptcy is filed that can help you maximize your stay in your home.

Bankruptcy Can Stop Vehicle Repossession

Getting your car repossessed can be catastrophic. Not having a vehicle to get to work and to carry out your daily needs can be difficult.  Filing bankruptcy will automatically stop a vehicle repossession.  You may even be able to get your vehicle back if it has been repossessed and not already sold by the creditor.  Once you fall behind in your vehicle payments, it is a matter of time before your car gets repossessed. If your car is repossessed and action isn’t taken quickly, the car will be lost and you could be stuck with a bill that would be nearly impossible to pay back with the amount of income you are receiving.

If you would like to get the car back from repossession or keep it from becoming repossessed if you are behind in your vehicle payments, filing Chapter 13 bankruptcy may be the best option for you. Filing Chapter 13 bankruptcy will cure the arrearages and allow you to get caught up on your vehicle payments.

Filing Chapter 7 bankruptcy would be a good idea if keeping the vehicle is not an option you would like to explore. You may be upside down in your loan or perhaps the vehicle has mechanical problems. Filing a Chapter 7 or Chapter 13 bankruptcy will also eliminate most of your other debts.

Stop Utility Disconnection by Filing Bankruptcy

Filing bankruptcy will prevent your utilities from becoming shut off.  If your utilities are already shut off, filing bankruptcy will get them turned back on.  After a utility bill gets so high, the utility company will send you a notice to shut off your utilities. This can become a disaster creating the inability to use a refrigerator, stove, hot water, and major appliances. In many situations, the money the utility company asks for you simply do not have.

Filing Bankruptcy Can Get Your Driver’s License Back

Filing Chapter 7 or Chapter 13 bankruptcy can help you get your driver’s license back. Ohio law considers reinstatement fees as a debt that may be dischargeable in a bankruptcy under ORC 4510.10(G). As soon as your bankruptcy petition is filed, you can take your bankruptcy petition to the Bureau of Motor Vehicles (BMV) to get your license reinstated. The Bureau of Motor Vehicles (BMV) will review the documentation and remove the fees from your record that were included in the bankruptcy petition. Bankruptcy documentation may be filed in person at any Reinstatement Center location or may be mailed to the Ohio Bureau of Motor Vehicles, Attn: Compliance Unit, P.O. Box 16583, Columbus, Ohio 43216-6583.  Additional contact information can be found at www.bmv.ohio.gov/.

Hiring Bankruptcy Attorney Will Stop Creditor Harassment

Getting harassing creditor phone calls can be annoying. They call you when you are at work, when you are eating dinner, and when you are trying to sleep. They never want to work with you and all they care about is getting your money. You may have already told them about your situation and still refuse to stop calling. Many times when retaining an attorney for bankruptcy, the creditors will contact you through your attorney. This will stop the creditors from calling your phone and will keep your attorney informed if any major legal issues arise.

Prohibit Creditors From Beginning or Continuing a Lawsuit Against You

Filing bankruptcy will give you protection under the Federal government. As soon as your bankruptcy petition is filed, there will be an “automatic stay” set in place. The automatic stay will prevent creditors from beginning or continuing a lawsuit against you. The automatic stay will essentially stop any and all creditor collection efforts against you. The automatic stay will stop a wage garnishment, foreclosure, sheriff sale, vehicle repossession, and utility disconnection.

Bankruptcy Can Help With Eviction

If you are behind in rent and the landlord has not received a judgment against you for possession, you can stall the eviction process by filing bankruptcy. The landlord cannot evict you without filing the proper paperwork with the court and obtaining the Bankruptcy Court’s permission to begin the eviction. The landlord will have to request that the Bankruptcy Court lift the automatic stay. Chances are that the Bankruptcy Court will grant the request if you are behind in your rent, but it is up to the landlord to file the necessary paperwork.  If the landlord has obtained a judgment for possession before you file bankruptcy, the landlord can proceed with the eviction without the permission of the bankruptcy court unless successfully challenged in eviction court. It is best to file the bankruptcy before the judgment for possession is entered.

Eliminate Most of Your Debts by Filing Bankruptcy

  • Credit Cards
  • Personal Loans
  • Medical Bills
  • Utility Bills
  • Items Sent to Third-Party Collections
  • Debt Owed From a Foreclosed Home
  • Debt Owed From Repossessed Vehicles
  • Evictions
  • Reinstatement Fees
  • Attorney Fees

Types of Bankruptcy

  • Chapter 7
  • Chapter 13
  • Individual Bankruptcy Filing (Filing Bankruptcy By Yourself)
  • Joint Bankruptcy Filing (Filing Bankruptcy With Your Spouse)

The Law Office of M. Sean Cydrus Can Help!

The friendly Law Office of M. Sean Cydrus can help you craft a plan to rebuild your financial future. We understand the stress of financial worry. We use a personal approach to solving your financial challenges and are here to help you through this difficult time. We pride ourselves on the ability to provide our legal expertise with compassion and understanding. We ensure that your rights are protected and that someone is looking out for your best interest. We can meet with you at our conveniently located offices in Columbus and Chillicothe. Call today for a free consultation. Help is one phone call away!

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Common Bankruptcy Terms and Definitions

There are many legal terms used in bankruptcy law.  Becoming familiar with the terms and definitions can be helpful when trying to understand how the whole bankruptcy process works and how it relates to your unique situation.  Provided below is a list of common terms and definitions.

341 Meeting of Creditors – This will be the court date you will have to attend to when you file bankruptcy.

Adversary Proceeding – A court hearing within a bankruptcy case. Example: Adversary Hearing to strip a 2nd mortgage

ArrearageThe amount of money you are behind in a secured debt such as a car or house.

AssetsItems of value owed by a person or entity such as real estate, vehicles, and jewelry.

Automatic Stay – Protection you receive by the Federal government when filing bankruptcy that will automatically stop a wage garnishment, foreclosure, sheriff sale, vehicle repossession, and utility disconnection. The automatic stay will prevent creditors from beginning or continuing a lawsuit against you. The automatic stay will essentially stop any and all creditor collection efforts against you.

Avoidance – The ability to remove a lien.

Bankruptcy Code – Laws that govern the bankruptcy process.

Bankruptcy Estate – The debtor’s property that is subject to the authority of the bankruptcy court.

Bankruptcy Petition – The document filed with the court when filing bankruptcy.

Chapter 7
– What most people think of when they think about bankruptcy where most of your debts are eliminated right away such as credit cards, personal loans, medical bills, utility bills, items sent to third-party collections, debt owed from a foreclosed home, debt owed from repossessed vehicles, evictions, reinstatement fees, and attorney fees.

Chapter 13 – The type of bankruptcy that most people think of as a debt consolidation through the Federal government.  Filing a Chapter 13 bankruptcy could allow you to pay pennies on the dollar on your debts with a monthly payment you can afford.  Filing a Chapter 13 bankruptcy can also help you save a house from foreclosure or a car from becoming repossessed if you are behind in your payments.

Claim – A creditor’s assertion of a right to payment from the debtor or the debtor’s property.

Confirmation – Bankruptcy court’s final approval for a plan of reorganization in a Chapter 13 bankruptcy.

Credit Counseling – Class you have to take in order to file a Chapter 7 or Chapter 13 bankruptcy.  There are many companies approved through the court.  The class can be taken online, over the phone, or in person.

Debt – Bills that you owe.

Debtor – A person who has filed bankruptcy.

Debtor EducationCredit counseling class you have to take in order to file a Chapter 7 or Chapter 13 bankruptcy.

Deficiency Judgment – Bill you get stuck with after your house is foreclosed on or vehicle repossessed.

Defendant – The person the lawsuit is filed against.

Discharge – What you receive after you file bankruptcy stating that the bankruptcy is complete.

Dischargeable DebtDebts eliminated by filing bankruptcy.

DismissalThe termination of a bankruptcy case.

Disposable IncomeIncome left over each month after you pay all your necessary monthly expenses.

Domestic Support Obligation – Debts owed for child support or spousal support.

Equity – The value of a debtor’s interest in property.  It is the difference between the fair market value and what you owe.  Example: House worth $100,000 and you owe $80,000.  You have $20,000 equity.

Foreclosure – Legal process in which the lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.  A foreclosure happens when you are behind in your mortgage payments.

Individual Bankruptcy Petition – When you file bankruptcy by yourself.

Joint Bankruptcy Petition – When husband and wife file a bankruptcy together. 

Judgment– The court’s decision on a legal matter. If there is a judgment rendered against you from a lawsuit you could possibly be faced with a wage garnishment, seized bank accounts, or liens attached to property.

Lien – The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

Lien Stripping – Lien against property is removed when the value of the property is less than the amount owed on senior lien.

Liquidation – A sale of a debtor’s property with the proceeds to be used for the benefit of creditors.

Means Test – In 2005, the U.S. government acted to crack down on abuses of the bankruptcy system by passing the means test. The new rule specifically addresses people who may have adequate income to pay off their debts. The rule only applies to Chapter 7 bankruptcy.  In general, means test calculates your income and your debts, and provides a certain ratio of debt to income at which you are deemed to have “passed”.

Mortgage – Loan on real estate.

Motion For Relief From Stay – A request by a creditor to allow the creditor to take action against the debtor or the debtor’s property that would otherwise be prohibited by the automatic stay. Example: Request permission from the court to foreclose on real estate, repossess vehicle, or proceed with eviction.

Net Income – What most people call “take home” pay.  It is the amount of money you receive after the various deductions of taxes.

No-Asset Case – A chapter 7 case when there are no assets available to satisfy any portion of the creditors’ unsecured claims.

Nondischargeable DebtDebts that are not eliminated by filing bankruptcy. Example: student loans, child support, and spousal support.

Objection to Dischargeability – A trustee’s or creditor’s objection to the debtor from becoming released from personal liability for certain debts that are typically discharged by filing bankruptcy. Common reasons include some type of fraud.

Plan – A debtor’s detailed description of how the debtor proposes to pay creditors’ claims over a fixed period of time usually between a time period of 3 – 5 years for a Chapter 13 bankruptcy.

PlaintiffA person or business that files a formal complaint with the court seeking relief.

Post-Petition Debt – Debt incurred after the bankruptcy has been filed.

Proof of Claim – A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. The creditor would file a proof of claim with the bankruptcy court in order to get paid if there is money to be disbursed to the creditors.

Reaffirmation Agreement – You would want to sign a reaffirmation agreement if you want to keep something you are still paying on.  Reaffirmation agreements are signed and filed with the court in Chapter 7 cases when a debtor wants to retain and keep paying on a car or house.

Repossession – Vehicle being taken from you because you are behind in vehicle payments.

Schedules – Detailed lists showing the debtor’s assets, liabilities, and other financial information.

Secured Creditor – An example of a secured creditor would be a creditor holding a lien for a car, house, or other tangible asset that you owe money on.

Secured Debt – A debt that you owe that is backed by collateral that a creditor can recover if you default.

Sheriff Sale – End result of a foreclosure when your house is sold to pay off a portion of your mortgage.  The difference between what you owe and what the house sells for is the bill you get stuck with.  The bill you get stuck with is called a mortgage loan deficiency judgment.

U.S. Bankruptcy Trustee – Responsible for supervising the administration of bankruptcy cases.

Unsecured DebtDebt that is not backed by collateral.  Examples: credit cards and medical bills

Utility Disconnection – Utilities being shut off because you are behind in your utility bill.

Wage Garnishment – Money that is taken out of your payroll before your paycheck is issued or direct deposited in your bank account.  This can happen to you after a judgment is rendered against you from a lawsuit.

 

There are many other terms used in bankruptcy law.  An experienced Columbus Ohio Bankruptcy Attorney will be able to answer any legal questions you have and can take the necessary legal action when time is of the essence.

The Law Office of M. Sean Cydrus Can Help!

The friendly Law Office of M. Sean Cydrus can help you craft a plan to rebuild your financial future. We understand the stress of financial worry. We use a personal approach to solving your financial challenges and are here to help you through this difficult time. We pride ourselves on the ability to provide our legal expertise with compassion and understanding. We ensure that your rights are protected and that someone is looking out for your best interest. We can meet with you at our conveniently located offices in Columbus and Chillicothe. Call today for a free consultation. Help is one phone call away!

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How Bankruptcy Can Help With Eviction in Ohio

Filing bankruptcy will give you protection under the Federal government.  As soon as your bankruptcy petition is filed, there will be an “automatic stay” set in place.  The automatic stay will prevent creditors from beginning or continuing a lawsuit against you.  The automatic stay will essentially stop any and all creditor collection efforts against you.  Filing bankruptcy can help if an eviction is filed against you.

Filing Bankruptcy Before Eviction Judgment

If you are behind in rent and the landlord has not received a judgment against you for possession, you can stall the eviction process by filing bankruptcy. The landlord cannot evict you without filing the proper paperwork with the court and obtaining the Bankruptcy Court’s permission to begin the eviction.  The landlord will have to request that the Bankruptcy Court lift the automatic stay.  Chances are that the Bankruptcy Court will grant the request if you are behind in your rent, but it is up to the landlord to file the necessary paperwork.

 Filing Bankruptcy After Eviction Judgment

If the landlord has obtained a judgment for possession before you file bankruptcy, the landlord can proceed with the eviction without the permission of the bankruptcy court unless successfully challenged in eviction court.  It is best to file the bankruptcy before the judgment for possession is entered.

Can I Eliminate the Debt Owed From an Eviction by Filing Bankruptcy?

Yes, you can eliminate the debt owed from an eviction by filing bankruptcy.  Filing bankruptcy will eliminate most of your debts such as evictions, credit cards, medical bills, personal loans, utility bills, repossessed vehicles, foreclosed homes, and items sent to third-party collections.

Bankruptcy Can Help You Get Approved For an Apartment

If you have lingering debts owed to previous landlords, you may have a hard time getting approved for an apartment.  Many times the apartment complex will not approve your application unless the past due balances are paid in full to previous landlords.  The amount of money owed to previous landlords may be unreasonable.  Filing bankruptcy will eliminate debts owed to previous landlords and will also eliminate most other debts that you may have.  Eliminating the debts owed to previous landlords will help your application get approved.

Types of Bankruptcy

  • Chapter 7
  • Chapter 13
  • Individual Bankruptcy Filing (Filing Bankruptcy By Yourself)
  • Joint Bankruptcy Filing (Filing Bankruptcy With Your Spouse)

The Law Office of M. Sean Cydrus Can Help!

The friendly Law Office of M. Sean Cydrus can help you craft a plan to rebuild your financial future. We understand the stress of financial worry. We use a personal approach to solving your financial challenges and are here to help you through this difficult time. We pride ourselves on the ability to provide our legal expertise with compassion and understanding. We ensure that your rights are protected and that someone is looking out for your best interest. We can meet with you at our conveniently located offices in Columbus and Chillicothe. Call today for a free consultation. Help is one phone call away!

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Prevent or Stop Wage Garnishment by Filing Bankruptcy

You may be one of many Americans living in Ohio who are getting your wages garnished or have been served legal paperwork stating that your wages are in the process of getting garnished.  In Ohio, your wages can be garnished up to 25%.  This can be devastating.  Losing out on 1/4 of your normal income can make everyday living even more difficult.  Filing bankruptcy will stop a wage garnishment by Federal law.  Filing bankruptcy will prevent any creditor from beginning or continuing a lawsuit against you.

How Does Your Wages Become Garnished?

What usually happens is a creditor files a lawsuit against you in order to create a legal avenue to collect on the debt you owe them.  By getting a judgment rendered against you for the money you owe them they can garnish wages, seize funds out of bank accounts, and attach liens to property.

The wage garnishment is sent to your employer and comes directly out of your payroll. This means the money is already taken out of your pay before your pay check is issued or direct deposited into your bank account.

How Do I know If a Lawsuit is Filed Against Me?

You will know that a lawsuit is filed against you because you will be served by the court.  You will usually receive legal documents stating that a lawsuit is filed against you by mail or personal service.  A Complaint is the initial pleading of a plaintiff in a civil action that identifies the court’s jurisdiction, the alleged facts of the case, and relief sought. In short, the Complaint is served when there is a lawsuit filed against you stating why you are being sued and what relief is requested.  The Summons is a document that comes from the court along with a copy of the Complaint. The Summons lists the names and addresses of the court and the parties, and it includes the date that the defendant must respond to the Complaint or be in default.

What Happens If I do Not Respond To The Lawsuit?

If you do not respond to the lawsuit a Default Judgment will be rendered against you.  A Default Judgment occurs when you do not file an Answer with the court in the required amount of time after you receive the Summons and Complaint. Not responding to the Summons and Complaint will give the plaintiff exactly what they asked for and the allegations that they alleged against you will be deemed true.

How Much Money Can They Garnish Out of My Paycheck?

In Ohio, your wages can be garnished up to 25%.

Will Filing Bankruptcy Stop the Wage Garnishment?

Yes, filing bankruptcy will stop the wage garnishment. As soon as you file your bankruptcy petition, an “automatic stay” will be set in place. The “automatic stay” will stop the creditors’ collection efforts against you. Filing bankruptcy will automatically stop a wage garnishment, foreclosure, sheriff sale, vehicle repossession, and utility disconnection by Federal law.

What Other Debts Can I Eliminate By Filing Bankruptcy?

  • Credit Cards
  • Personal Loans
  • Medical Bills
  • Utility Bills
  • Items Sent to Third-Party Collections
  • Debt Owed From a Foreclosed Home
  • Debt Owed From Repossessed Vehicles
  • Evictions
  • Reinstatement Fees
  • Attorney Fees

The Law Office of M. Sean Cydrus Can Help!

The friendly Law Office of M. Sean Cydrus can help you craft a plan to rebuild your financial future. We understand the stress of financial worry. We use a personal approach to solving your financial challenges and are here to help you through this difficult time. We pride ourselves on the ability to provide our legal expertise with compassion and understanding. We ensure that your rights are protected and that someone is looking out for your best interest. We can meet with you at our conveniently located offices in Columbus and Chillicothe. Call today for a free consultation. Help is one phone call away!