Answering Common Bankruptcy Questions

There are many questions that you will inevitably ask yourself. While an experienced attorney can most accurately answer your questions regarding your personal situation, here are some general answers to frequently asked bankruptcy questions.

Can I keep my house?

Yes, in most cases. Under Chapter 7 bankruptcy, it depends on the amount of equity you have in your home. If you don't have any or very little, there is no real advantage for the trustee to sell it as the proceeds will be insignificant.

If you do have equity, it will depend on how much equity you have in it. The Ohio homestead exemption may help you keep your home, even if you have considerable equity.

Under Chapter 13, you can come up with a payment plan to make up any owed mortgage payments (arrearages) while paying your current mortgage, which allows you to keep your house.

How can I get the collection agencies to stop calling?

When you file for bankruptcy, an automatic stay is put into place. This means collection agencies will cease from continuing any collection process, giving you some room to breathe.

Can I keep my car?

Yes, in many situations. The automatic stay imposed during bankruptcy proceedings means the lender will need to seek permission from the court in order to repossess your car. But oftentimes, the courts will allow it. The best suggestion is to do what you can to catch up on payments so that you are no longer in default. Another option would be to negotiate with your lender for reduced interest rates and monthly payments.

Can I continue to operate my business if I file for bankruptcy?

Under Chapter 11, you would still be able to run your business. You would be required to come up with a plan that shows how your business will become profitable with the bankruptcy proceedings. Chapter 7 bankruptcy for businesses is considered to be a liquidation of assets, and you would likely not be able to keep your business operating.

Will this ruin my credit for life?

No. It will have a short-term effect, but is oftentimes more preferable than defaulting on loans.

Will I be able to buy a home in the future?

Yes. There are wait periods that vary by the type of loans and the type of bankruptcy, but if you meet the criteria you will be able to purchase a home again within a few years.

An experienced bankruptcy attorney will give you the most comprehensive answers that apply to your personal and unique situation.

Call An Experienced Bankruptcy Lawyer To Get Answers To Your Specific Questions

Steven J. Heimberger Attorney at Law will take a comprehensive look at your individual circumstances to help you decide the most ideal solution. Call his Akron office at 234-206-3958 or email him to set up your free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.