In addition to maintaining an active general law practice in Madison County, Ms. Treynor assists people who need to file for bankruptcy relief.    What kind of bankruptcy is right for you?  Do you qualify?

Chapter 7

The Bankruptcy Code calls Chapter 7 “Liquidation.”  Technically, this means that the Chapter 7 Trustee will assume your assets, sell them and use the money to pay your bills.  However, there are laws which protect certain assets from the Chapter 7 Trustee (exemption statutes) which limit his or her ability to sell your stuff.  The exemption statutes in Ohio protect, up to a certain dollar amount, equity in residential real estate, personal use vehicles, monies in retirement accounts and the like.  Generally speaking, the exemption statutes only protect personal things (as opposed to commercial).   If all you have are exempted assets, then there is nothing to liquidate your debt with and the debt is discharged with no payment.

However, you must be income eligible to file a Chapter 7.  Click here to view the current median family income for our region.

If you have loans on secured collateral (like houses and cars) you can typically keep those loans intact through a Chapter 7 by way of a reaffirmation agreement.  In order to reaffirm secured debt, you must generally be in good standing on the loan, and the loan payments cannot be hardship on you.

Chapter 13

One of the biggest reasons to file a Chapter 13 is being behind in your house payment where you want to keep your house.  At some point in time, your mortgagor will refuse further late payments unless the loan is brought current.  Depending on the number of missed payments, that can quickly become a lot of money.

Chapter 13 is what the Code calls “Reorganization.”   That is a fancy word for “repayment.”  However, not all debts are treated equally in a Chapter 13.  Many debts are “reorganized” for little to no pennies on the dollar.  When it comes to your house, Chapter 13 is the only way to force your lender into accepting partial payments on the house payments that are in arrears.   It is also a tool to bring student loans out of default and make Uncle Sam happy with you.

In order to qualify for Chapter 13 you must demonstrate regular income, and the ability to pay the debt as it has been adjusted.

Ms. Treynor is a member of the Credit Education Coalition and the National Association of Consumer Bankruptcy Attorneys.

Call or email me to set up a free consultation and we’ll figure out which Chapter is right for you.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Requires the following notice: We are a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This web site is not an offer to provide bankruptcy assistance services to any assisted person as defined under Section 527(a)(2) of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

DISCLAIMER: THIS IS AN ADVERTISEMENT. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.