Filing Bankruptcy is never an easy decision. A business or an individual can declare bankruptcy once they have ascertained that it has become impossible to pay off one’s creditors. It can give you a chance to start over from a financial point of view, as most debts are relieved after bankruptcy has been filed.
Chapter 7, or liquidation bankruptcy, means that your “estate” – i.e. your assets – is sold in order to pay off your creditors.
Chapter 13 is a debt reorganization that allows you to consolidate your bills and requires your creditors to allow you more time to repay them. A reorganization bankruptcy can also involve the selling of assets, but more often than not, you can retain a majority of your assets, while your creditors’ needs are assessed.
Filing bankruptcy stops all collection activity such as calls from creditors, repossessions, foreclosures, and wage garnishments. A bankruptcy plan is established, and your creditors are repaid based on that plan.
Contact us today to learn more about your options under the current bankruptcy laws. We'll discuss the differences in the bankruptcy types in more detail and help you decide which is right for your situation.
Matthew Hawley, Attorney at Law
21 West Main Street
Wakeman, OH 44889
Telephone: 440-839-2751
Map and Directions |
E-mail Us