Are you having problems with debt? Creditors harrassing you? Then bankruptcy or debt settlement services may provide the critical relief you have been seeking. We offer a wide range of debt relief services to help our clients. For assistance, contact James M. McClain
What Is Bankruptcy?
Bankruptcy is a legal proceeding in which a person or business who cannot pay his, her or its bills can get a fresh financial start. The right to file for bankruptcy in Elyria, Ohio is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
What Can Bankruptcy Do for Me?
Bankruptcy Elyria may make it possible for you to:
- Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge"of debts. It is designed to give you a fresh financial start.
- Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
- Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
- Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
- Restore or prevent termination of utility service.
- Allow Elyria small businesses to reorganize.
- Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.
What Bankruptcy in Elyria Cannot Do
Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:
- Eliminate certain rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages.You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt.
- Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and some taxes.
- Protect cosigners on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
- Discharge debts that arise after bankruptcy has been filed.
Chapter 7 bankruptcy:
The most common type of bankruptcy, Chapter 7 bankruptcy enables debtors to completely discharge most forms of debt, including credit card debts, medical bills and other consumer debts. With a Chapter 7 bankruptcy, you could gain the fresh start you have been seeking, free from the constant stress and burden of unmanageable debt.
Chapter 13 bankruptcy:
Sometimes referred to as a debt reorganization bankruptcy, Chapter 13 bankruptcy calls for the creation of a debt repayment plan that lasts for three years to five years. People are only required to pay what they can afford to pay (as determined by a bankruptcy court) and they may discharge all or a significant portion of their unsecured debts after the successful completion of their Chapter 13 debt repayment plan.
Attorney James M. McClain has successfully negotiated scores of debt settlements across the state for debtors facing large judgments and wage garnishments. We have helped many clients throughout the state legally settle their debts for a fraction of what they owe.
Let us put our experience to work for you. We are here to help. We understand that creditor harassment, wage garnishments and other aggressive collection measures can put a considerable strain on people who are struggling with debts.
The relief offered by bankruptcy and debt settlements is very real and very powerful. To learn more about your legal rights and options, schedule a free 30-minute phone or office consultation with a lawyer at our firm today.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.