People frequently have a number of misconceptions about bankruptcy in Columbus. One of the biggest misconceptions is that filing for bankruptcy protection means you will lose your home or other assets that you have worked a lifetime to acquire. In most cases, this is simply not the case. By understanding the bankruptcy process better you can make an informed decision whether filing for Columbus Ohio bankruptcy is the right choice for you and your family.
At The Needleman Law Office we understand how financial problems can negatively impact you and your family which is why we are committed to helping you find a solution. Contact the office today by calling 614-575-1188 so that we can discuss your legal options and start you on the path to a brighter, debt-free future.
The Columbus Ohio Bankruptcy Process
The precise path your bankruptcy will take will depend on the bankruptcy chapter you file under. A chapter 7 bankruptcy is the easiest and fastest; however, not all debtors qualify to file a chapter 7 bankruptcy. For all debtors, the process begins when you file a petition for bankruptcy in the appropriate court. At that point, the court will issue an “automatic stay” order. This order forbids creditors from any further attempts to collect on a debt until further notice from the court. For a debtor this offers immediate relief from the mountain of debt that was dragging you down each week.
All of your creditors will be notified of your bankruptcy filing and provided an opportunity to question you regarding your debts, income, and assets at the meeting of creditors, also known as a “341 hearing”. For most debtors this meeting is a mere formality. After the 341 hearing, you will develop a repayment plan if filing under chapters other than chapter 7. At the end of the repayment period your bankruptcy will be discharged. If you are filing under chapter 7 your bankruptcy will be discharged approximately 60 days after the 341 hearing. All eligible debts remaining at the time of discharge will be forgiven, meaning you are no longer legally obligated to repay the debt.
Assets and Credit
The two most common concerns debtors have when contemplating bankruptcy revolve around assets and credit. While each case is unique, the truth is that state and federal exemptions allow a typical debtor to retain the majority of his or her assets, including a house and vehicle in most cases, when filing bankruptcy. Moreover, while your credit rating may be adversely affected when you initially file bankruptcy, a debtor’s credit rating frequently goes up immediately after a bankruptcy is discharged because your debt to income ratio decreases significantly, making you a more attractive credit risk for potential lenders.
Columbus bankruptcy lawyer Scott R. Needleman, of The Needleman Law Office, works with hard working individuals who, for a variety of reasons, are facing financial hardship. Attorney Needleman is committed to helping you resolve your financial crisis. Contact the office today by calling 614-575-1188 so that we can discuss your legal options and start you on the path to a brighter, debt-free future.