Struggling with business debt?

Ohio Bankruptcy Defense Lawyers

Introduction: Navigating Financial Turbulence

Are you feeling overwhelmed by debt? You’re not alone. Many Ohio residents face financial challenges that seem insurmountable. But here’s the good news: bankruptcy can offer a fresh start. At Delancey Street, we understand the emotional and financial strain that comes with debt. Our experienced Ohio bankruptcy defense lawyers are here to guide you through the process, ensuring you regain control of your financial future.

Understanding Bankruptcy: A Path to Relief

Bankruptcy is often misunderstood. It’s not a sign of failure but a legal tool designed to help individuals and businesses get back on their feet. The U.S. Bankruptcy Code provides a structured way to eliminate or reorganize debt, offering a clean slate. In Ohio, there are several types of bankruptcy filings, each suited to different financial situations.

Types of Bankruptcy in Ohio

1. Chapter 7 Bankruptcy (Liquidation)
   • Also known as “liquidation bankruptcy,” Chapter 7 allows individuals to discharge most of their unsecured debts, such as credit card bills and medical expenses. To qualify, your income must be below the Ohio median income level.
   • Pros: Quick process, complete discharge of eligible debts.
   • Cons: Potential loss of non-exempt assets.
2. Chapter 13 Bankruptcy (Reorganization)
   • This type, also known as “wage-earner bankruptcy,” is for those with a steady income who can repay their debts over time. It involves creating a court-approved repayment plan spanning three to five years.
   • Pros: Retain assets, structured repayment.
   • Cons: Long-term commitment, regular payments required.
3. Chapter 11 Bankruptcy (Reorganization for Businesses)
   • Typically used by businesses, Chapter 11 allows for debt reorganization while continuing operations. It’s complex and requires a detailed repayment plan approved by creditors and the court.
   • Pros: Business continuity, debt restructuring.
   • Cons: Expensive, lengthy process.

Common Concerns and Misconceptions

Bankruptcy carries a stigma, but many of the fears surrounding it are based on myths. Let’s debunk some common misconceptions:

1. “Bankruptcy ruins your credit for a decade.”
   • While bankruptcy does impact your credit, it doesn’t ruin it forever. In fact, many people see their credit scores improve within a few years post-bankruptcy as they rebuild their financial health.
2. “You will lose all your assets.”
   • Ohio law provides several exemptions that protect certain assets during bankruptcy. For instance, you can keep up to $145,425 in home equity and $4,000 in a vehicle’s value.
3. “Filing for bankruptcy means you’re a bad person.”
   • Financial hardship can happen to anyone due to unforeseen circumstances like medical emergencies or job loss. Bankruptcy is a legal remedy designed to help good people regain stability.

The Bankruptcy Process: Step-by-Step

Filing for bankruptcy involves several steps, and having a knowledgeable lawyer by your side can make the process smoother.

Pre-Filing Preparation

• Gather Financial Documents: Collect all relevant financial information, including income statements, tax returns, and a list of assets and liabilities.
• Credit Counseling: Complete a mandatory credit counseling session from an approved agency. This helps you understand alternatives to bankruptcy and the implications of your decision.

Filing the Petition

• Legal Paperwork: Your attorney will help prepare and file the necessary forms with the bankruptcy court. This includes a detailed list of your creditors, assets, and financial affairs.
• Automatic Stay: Once filed, an automatic stay goes into effect, halting all collection actions by creditors.

Meeting of Creditors (341 Meeting)

• Creditor Questions: About 20-40 days after filing, you’ll attend a meeting with your creditors and the bankruptcy trustee. You’ll answer questions about your financial situation under oath.

Asset Liquidation (if applicable)

• Non-Exempt Assets: The trustee may sell non-exempt assets to repay creditors. However, many Chapter 7 cases are “no-asset” cases, meaning there are no non-exempt assets to liquidate.

Financial Management Course

• Post-Filing Requirement: Complete a financial management course to receive your bankruptcy discharge.

Discharge

• Debt Relief: Typically within a few months of filing, you’ll receive a discharge, releasing you from personal liability for eligible debts.

Ohio Bankruptcy Exemptions: Protecting Your Assets

Ohio law provides several exemptions that protect certain assets during bankruptcy. These exemptions ensure you can retain essential property and start anew.

Why Choose Delancey Street?

At Delancey Street, we specialize in bankruptcy law and have decades of experience helping Ohio residents navigate the complexities of bankruptcy. Our compassionate approach ensures you receive personalized attention and expert legal advice. We understand that every financial situation is unique, and we tailor our services to meet your specific needs.

Our Commitment to You

• Expert Guidance: We provide clear, step-by-step guidance through the bankruptcy process.
• Asset Protection: We help you maximize exemptions to protect your assets.
• Debt Relief: We work tirelessly to ensure you achieve the best possible outcome, whether through debt discharge or reorganization.

Conclusion: Take the First Step Toward Financial Freedom

If you’re struggling with debt, don’t wait any longer. Contact us at Delancey Street for a free consultation. Our experienced Ohio bankruptcy defense lawyers are here to help you explore your options and find the best path to financial stability. Remember, bankruptcy is not the end—it’s a new beginning. Let’s take that first step together. Call us today at [Your Contact Information] or visit our website to schedule your free consultation. Let’s reclaim your financial future, one step at a time.