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Chapter 7 vs. Chapter 13 Bankruptcy: What You Need to Know
July 5, 2023
Chapter 7 vs. Chapter 13 Bankruptcy: What You Need to Know
Are you struggling to keep up with your bills and payments? Filing for bankruptcy might be the solution to your financial woes. However, it's important to understand the differences between chapter 7 and chapter 13 bankruptcy before deciding which one is right for you. As experienced legal professionals at Roderick Linton Belfance, LLP in Akron, Ohio, we can guide you through the bankruptcy process and help you make the best decision for your specific situation.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is typically suited for individuals with little to no regular income. In a chapter 7 bankruptcy case, the court will liquidate your assets to pay off your debts. However, certain types of assets, such as your home or car, may be exempt from liquidation. If you're eligible for chapter 7 bankruptcy, it can discharge most of your unsecured debts, such as credit card balances and medical bills, in as little as three months. However, it's important to note that it can also have a negative impact on your credit score and remain on your credit report for up to 10 years.
On the other hand, chapter 13 bankruptcy, also known as reorganization bankruptcy, is typically suited for individuals with regular income who want to keep their assets but need help restructuring their debt. In a chapter 13 bankruptcy case, you'll work with a payment plan to pay off your debts over a period of three to five years. Chapter 13 bankruptcy can include all types of debts, including secured debts like your mortgage or car loan, and can help you avoid foreclosure or repossession. While you'll still have to make payments, they'll be more manageable, and you'll have a better chance of paying off your debts in full. Chapter 13 bankruptcy can also have a less negative impact on your credit score than chapter 7.
So who should file for chapter 7 bankruptcy? If you have little to no regular income and your debt is mostly unsecured, chapter 7 might be the best option for you. However, it's important to note that there are income limits for chapter 7 eligibility, and if you make too much money, you might not be able to file. Additionally, if you have valuable assets you don't want to lose, such as your home or car, chapter 7 might not be the best option for you.
On the other hand, if you have regular income and need help restructuring your debt, chapter 13 bankruptcy might be the best option for you. Chapter 13 can also be a good option if you have valuable assets you want to keep, such as your home or car, as it allows you to restructure your payments and avoid foreclosure or repossession.
Filing for bankruptcy can be a difficult decision to make, but it can also be a fresh start for your financial future. However, it's important to understand the differences between chapter 7 and chapter 13 bankruptcy, and which one is right for you. At Roderick Linton Belfance, LLP in Akron, Ohio, we have years of experience guiding clients through the bankruptcy process, and we can help you make the best decision for your situation. Contact us today to schedule a consultation and take the first step towards a brighter financial future.
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Dealing with medical malpractice can be a highly emotional and distressing experience. The thought of putting your health in the hands of a medical professional only to end up with a worsened condition or injury is heart-wrenching. If you have been a victim of medical malpractice in Ohio, hiring a medical malpractice attorney can help you seek the compensation you deserve. In this post, we’ll guide you through the steps of finding the best medical malpractice attorney in Ohio and securing a financial settlement for your losses.  Step 1: Start your search for a medical malpractice attorney in Ohio The first step to securing a successful medical malpractice lawsuit is to find an experienced attorney. You can start your search for a medical malpractice attorney in Ohio by asking for referrals from friends, family, and colleagues. You can also search the internet for reputable lawyers in Ohio who specialize in medical malpractice. Be sure to check the lawyer's qualifications, experience, and reviews from past clients. This will help you make an informed decision about which attorney to hire. Step 2: Schedule an initial consultation Once you have a list of potential medical malpractice attorneys in Ohio, schedule an initial consultation with them. This meeting will give you the chance to discuss your case and evaluate the lawyer’s expertise and experience. A good attorney will ask you detailed questions about your case, medical history, and any evidence you have. They will also explain the legal process, your rights, and the potential compensation you may get. Step 3: Evaluate the attorney's experience and qualifications When hiring a medical malpractice attorney, experience and qualifications matter. Look for an attorney with a good track record of handling medical malpractice cases similar to yours. Check their certifications and professional accreditations to ensure that they have the expertise and qualifications needed to represent your case. Additionally, make sure that the attorney is licensed to practice law in Ohio. Step 4: Discuss fee arrangements Cost is a crucial factor to consider when hiring a medical malpractice attorney. Some attorneys charge an hourly or contingency fee, while others may require a retainer upfront. It's important to discuss fee arrangements with your attorney upfront to avoid surprises. A reputable medical malpractice attorney should be transparent about their fee structure and only get paid if you win the lawsuit. Step 5: Trust your instincts Lastly, trust your instincts when choosing an attorney. You want a lawyer who is professional, honest, and who listens and responds to your concerns. If you feel uncomfortable with the attorney or their approach, it’s better to move on to someone else. A good medical malpractice attorney will have your best interests at heart and will work hard to obtain the compensation you deserve. If you are a victim of medical malpractice in Ohio, hiring a medical malpractice attorney can help you get the compensation you deserve. Finding the right attorney requires careful consideration of their qualifications, experience, and professionalism. By following the steps outlined in this post, you can select the best attorney for your case and achieve a favorable outcome. Remember, you have a legal right to pursue compensation for your losses, and a qualified attorney can help you navigate the legal system and seek justice.
Assault, in any degree or form, can have severe legal consequences. In Ohio, aggravated assault is considered a serious crime that can result in severe prison sentences. In this blog post, we will take a closer look at the legal definition of aggravated assault, the penalties associated with this crime, and how it differs from other states in the United States.  Aggravated assault is a type of assault that involves the use of a deadly weapon or the intent to cause severe bodily harm. In Ohio, aggravated assault is classified as a felony of the fourth degree and can lead to up to 18 months of imprisonment and fines which can go up to $5000. Cincinnati law recognizes different degrees of felony that take into account the gravity of crime committed by the convict. Essentially, it is a more severe crime than simple assault, which often results in only misdemeanor charges. Other states in the United States have different criteria to classify aggravated assault. For example, in some states, assault with a deadly weapon is considered a separate class from aggravated assault, which only requires an intent to cause bodily injury and not necessarily an intent to kill. Some states also differentiate based on the severity of bodily harm caused. Therefore, it is important to understand the relevant laws of the state in which you reside. Aggravated assault in Ohio can be punishable with harsher penalties in certain cases such as, if the assault results in serious bodily harm or the victim is a public servant, such as a law enforcement officer. In these circumstances, the crime is elevated to a third-degree felony. The penalty for third-degree crimes in Ohio ranges from one to five years in prison and fines ranging from $2500 to $10,000. In some instances, you could find yourself charged with multiple offenses related to an incident of aggravated assault. For example, you could also face charges for carrying an illegal weapon or other drug-related offenses simultaneously. These combined offenses can lead to a more complicated legal procedure and more heft penalties. Aggravated assault is a serious offense that can lead to severe legal consequences. Ohio considers this crime a felony of the fourth degree and can result in up to 18 months of imprisonment and $5000 in fines. However, penalties can vary based on additional factors such as the severity of the injury or if a public servant was involved. In other US States, aggravated assault may have different classifications and penalties, highlighting the importance of understanding local law. If you have been charged with aggravated assault, it is crucial to connect with a Cincinnati criminal defense attorney to fully understand your legal rights. Remember, the quality of your defense can decide whether or not you are found guilty, and that is why it’s important to have a professional with experience guide you through the legal process.
Buying your first home is always an exciting time, but it can quickly turn into a nightmare if things don't go according to plan. One of the worst-case scenarios that homeowners fear is foreclosure. Foreclosure can have serious financial implications that go beyond simply losing your home. In this blog post, we'll discuss what happens to your down payment, whether you get your money back if your home gets foreclosed on, and other important financial considerations for Ohio residents. 1. What happens to your down payment in a foreclosure?  When you're buying a house, you'll typically make a down payment to secure the purchase. But what happens to that down payment if your home goes into foreclosure? Unfortunately, in the case of foreclosure, you will not get your down payment back. Once you've made the down payment, it goes towards the purchase price of the house, and you won't be able to recover it if the house is foreclosed. 2. Will you get your money back if your home gets foreclosed on? If you're facing foreclosure, you're probably wondering if you can get any of your money back. Unfortunately, the answer is usually no. When a house is foreclosed on, the bank takes possession of the property and sells it to recoup their losses. Any money made from the sale goes toward paying off the mortgage, and any remainder is paid to the homeowner. However, in most cases, the sale of the property won't be enough to cover the outstanding mortgage, so the homeowner won't get any money back. 3. The impact of foreclosure on your credit score In addition to losing your home and any down payment you've made, foreclosure can have a severe impact on your credit score. A foreclosure will stay on your credit report for up to seven years and can make it challenging to obtain credit in the future. If you're considering purchasing another home after foreclosure, you'll likely have to pay higher interest rates on your mortgage, and you may have trouble qualifying for a loan at all. 4. Foreclosure alternatives If you're struggling to keep up with your mortgage payments, there may be alternatives to foreclosure that you can explore. One option is a loan modification, which can allow you to renegotiate the terms of your mortgage to make it more affordable. Another option is a short sale, where you sell your home for less than the outstanding mortgage and the bank agrees to forgive the remaining debt. Foreclosure is a difficult and stressful experience, and the financial implications can be severe. If you're facing foreclosure, you should consult with an experienced attorney to understand your options and make the best decisions possible for your financial future. Remember, there are alternatives to foreclosure, and taking action sooner rather than later can help you protect your credit score and minimize your losses.
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Bankruptcy occurs when a person or a business is unable to pay their debts or meet other financial obligations. It is a legal method for getting relief from the situation. Bankruptcy is typically the last option for people who are unable to renegotiate payments for loans or make other arrangements with their creditors. Though it stops the collections processes, it may require you to liquidate your assets, and it will affect your credit score. That said, the goal of bankruptcy is to give yourself a fresh, debt-free start and a chance to rebuild your credit. Types of Bankruptcy There are several types of bankruptcy: Chapter 7 uses a liquidation process to pay off creditors using the debtor's assets and other available funds. This option is most common for individuals. Chapter 11 allows businesses (and some individuals) to restructure their debt so that they can pay it off without liquidation. Chapter 13 is another restructured debt option for individuals with regular income who will be able to pay off their debt but need different terms than they currently have. Most individuals will opt for Chapter 7 because it is the only practical option available to them. Though it is possible to file the necessary documents yourself in  Akron, Ohio  , you can also hire a bankruptcy lawyer to assist with the process. How Chapter 7 Works The process of Chapter 7 bankruptcy starts when you file a petition with a bankruptcy court. These courts are all part of the federal legal system, so the process is similar no matter where you live. The entire process can take about four to six months. Once your petition gets accepted, the court issues a stay to your creditors. This order requires them to stop collections activities. A trustee will take over your case. They will oversee the process, communicate with creditors, and liquidate your assets. You must submit supporting documents to show your assets and income. You attend a meeting of creditors during which all your creditors can ask questions and request documentation. Creditors can, but rarely, attend the meeting. You must complete financial management courses during the bankruptcy process. Your debts won't be fully discharged until you do and submit evidence to the trustee. The trustee will oversee the liquidation of your assets and the distribution of proceeds to your creditors. Once you complete all requirements, the debt is discharged and creditors can no longer pursue you for additional repayment. However, it can take up to 10 years to remove the bankruptcy from your credit report. The Advantages of Chapter 7 Bankruptcy Most debtors focus on the negative aspects of bankruptcy, such as liquidation and the impact on credit scores. However, bankruptcy also brings benefits. It is essential to understand these advantages to help decide whether chapter 7 is best for you. Chapter 7 bankruptcy brings an automatic stay on all unsecured debt. Creditors must immediately stop contacting you for repayment. If you complete the process correctly, they will never contact you after you file for bankruptcy. You will have a clean financial slate after the discharge of your debts. Unlike other forms of bankruptcy, which require repayment plans, chapter 7 completely dismisses all debt and gives the debtor a new start. The process is much faster than other bankruptcy options. The process, from filing to discharge, usually takes six months or less. You will get rid of unsecured, consumer debt. Credit card debt, hospital bills, and personal loans will get discharged after liquidation. Chapter 7 allows you to keep necessities exempt from liquidation. This property may include your home, vehicle, or tools necessary for your job. Exemptions can vary, so it is typically best to ask an attorney about claiming them. You will take a financial planning course, which can help you set up a plan for the future and avoid excessive debt. Filing for bankruptcy prevents creditors from taking any further legal action against you for non-payment. Future income and assets acquired after bankruptcy are not affected by your debt. You can immediately start building a savings account. You typically deal directly with a trustee instead of appearing in court, making the chapter 7 process less stressful than other options. A lawyer is allowed to help you with the bankruptcy process and can argue on your behalf for exemptions or other issues involved in chapter 7. Qualifications for Chapter 7 Bankruptcy You need to meet specific requirements to file for chapter 7. This option is available to individuals or small businesses. Your average monthly income for the previous six months needs to be less than the average income for a similar-sized household in the same state. Alternatively, you could pass a means test to prove that you do not have disposable income to pay creditors. You have not filed for bankruptcy in eight years (six years for chapter 13 bankruptcy). If a court dismissed your previous bankruptcy petition, you must wait six months (181 days) before trying again. You can support claims of assets with financial documentation. You can complete a credit counseling course. Chapter 7 is best for unsecured debts, like credit card debt. With secured loans, the lender has the right to repossess your property if you do not make payments, so chapter 7 may not provide relief in these situations. Exemptions for Chapter 7 Also, some types of debt are exempt from discharge during bankruptcy. These include: Child support and alimony payments Student loans Court fees and fines Taxes (with some exceptions) Debts from accidents for which you were liable Fees for condo or homeowner associations How an Attorney Can Help with Chapter 7 Bankruptcy You can technically file for chapter 7 bankruptcy without an attorney. However, the process has long-term financial consequences, so you should seek legal advice if you have any concerns, questions, or uncertainties about the process. If you need to defend your petition or claims, a lawyer in  Akron, Ohio  can represent you. The US Court System website strongly recommends consulting a lawyer during bankruptcy. Reach out to us if you are considering filing for bankruptcy.
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