Chapter 7 & Chapter 13 Bankruptcy Attorneys in Dayton Ohio
Bankruptcy FAQ
- What is bankruptcy?
- What are chapters 7, 11, 12, and 13?
- What is the difference between secured and unsecured debt?
- What type or chapter of bankruptcy should I file?
- Can I change from one chapter of bankruptcy to another?
- Who can file bankruptcy?
- How often can you file?
- What do I need to begin the bankruptcy process?
- Do you have to have a minimum amount of debt to file?
- What is a joint petition?
- What happens if one spouse files for bankruptcy and not the other?
- Does my divorce decree protect me from creditors if my former spouse files for bankruptcy?
- The principal signor on a loan filed bankruptcy, now the creditor is coming after the co-signor. Is this right?
- Are all types of debt dischargeable?
- What can I keep if I file bankruptcy?
- Do I have to file bankruptcy on all the accounts I owe or can I keep some?
- Will I lose my retirement accounts or payments from social security?
- Will I lose my home if I file for bankruptcy?
- How long does a bankruptcy stay on my credit report?
- Can I do anything to remove a bankruptcy from my credit report?
- When can I apply for credit again?
- Can a "credit repair" company save me from bankruptcy?
- Can a creditor continue to contact me after I have filed for bankruptcy?
- Who lets my creditors know I have filed for bankruptcy?
- What does a trustee do?
- Can creditors object to a bankruptcy filing or plan?
- What happens at a creditors meeting?
- What if I have forgotten to include a debt on my schedule? Can I add it later?
- When do I have to stop using my credit cards if I am planning on filing for bankruptcy?
- What is a reaffirmation agreement?
- Can anyone reopen a bankruptcy case?
Business Law FAQ
- What is business law?
- What are the possible costs of personal liability for businesses debts and obligations?
- How does incorporating avoid or lessen personal liability?
- What does it mean to "pierce the corporate veil" and how do I avoid it happening to my company?
- Besides limited personal liability, what are some other benefits of incorporating?
- What is a Limited Liability Company and how is it set up?
- What are the primary advantages of an LLC that should be considered when starting a business?
- What are the primary disadvantages of an LLC that should be considered when starting a business?
- Is it a good idea to have a Buy-Sell Agreement for a corporation?
Bankruptcy FAQ
- What is bankruptcy?
A legal procedure that allows individuals or businesses ("debtors") who owe others ("creditors") more money than they're able to pay to work out a plan to repay the money over time or remove ("discharge") most of the bills.
- What are chapters 7, 11, 12, and 13?
Straight bankruptcy refers to Chapter 7. It provides for liquidation of some assets to pay creditors in exchange for discharge of most debts. It makes sense when debts exceed assets by a significant amount.
Chapter 11 applies to businesses. This chapter allows businesses to restructure debt payments and keep assets.
Chapter 12 allows farmers and fishermen to get debt adjustments.
Chapter 13 allows consumers to restructure debt payments and keep assets.
- What is the difference between secured and unsecured debt?
Secured debt is a creditor's claim that is secured by a lien of some type such as a mortgage or pledge of collateral in your property. A creditor can generally claim the property that secures the debt in the event of bankruptcy. Unsecured debt is not tied to any property. Creditors generally extended unsecured loans based solely on an assessment of the debtor's ability to pay. Examples of unsecured debt include credit cards and payday advances.
- What type, or chapter, of bankruptcy should I file?
Bankruptcy may result in a discharge of debt or the restructure of debt payments. Chapter 7 discharges debt while Chapters 11 and 13 restructure debt. Chapter 11 applies to businesses and chapter 13 applies to consumers. Each bankruptcy chapter specifies the debts eligible for discharge, eligibility requirements to qualify for use of the specific chapter, payment choices, and other important information to consider before selecting which chapter, if any, under which to file. Selecting which type to file depends on individual circumstances.
- Can I change from one chapter of bankruptcy to another?
A debtor generally can convert a case from one chapter to another chapter for which the debtor qualifies.
- Who can file bankruptcy?
Most people and businesses who owe money to a creditor can file a bankruptcy petition.
- How often can you file for bankruptcy?
After a debtor files for a Chapter 7 bankruptcy, eight years must pass before filing Chapter 7 again. Six years must pass from a prior Chapter 13 filing before filing a Chapter 7 bankruptcy. Chapter 13 can be filed four years from a prior Chapter 7 filing or two years from a prior Chapter 13 filing.
- What do I need to begin the bankruptcy process?
Bankruptcy requires a comprehensive financial picture of the debtor. Documents needed include tax returns, pay history, inventory of assets, list of debts, titles to property, bank account statements, investment statements, documentation of monthly expenses, and mortgage documents.
- Do you have to have a minimum amount of debt to file?
While a minimum amount of debt is not required, debtors should consider the amount of debt when deciding whether to file or not. Depending on the amount of debt, other choices may be available. In addition, the amount of debt helps decide under which chapter to file.
- What is a joint petition?
A joint petition is one petition filed together by a husband and wife.
- What happens if one spouse files for bankruptcy and not the other?
The non-filing spouse may be responsible for the debts.
- Does my divorce decree protect me from creditors if my former spouse files for bankruptcy?
The divorce decree provides no protection from creditors. However, the divorce decree may address may provide recourse against the former spouse.
- The principal signor on a loan filed bankruptcy. Now the creditor is coming after the co-signor. Can they do that?
The creditor can go after the co-signor. In fact, the point of having a co-signor is to provide the creditor the ability to require the co-signor to pay on a loan if the principal debtor fails to pay even if the debtor declares bankruptcy.
- Are all types of debt dischargeable?
Each bankruptcy chapter limits the types of dischargeable debts. Generally, debts that cannot be discharged include taxes, debt resulting from fraud committed by the debtor, debts not listed on the bankruptcy petition, child support and alimony, debts owed for willful and malicious injury caused by the debtor, student loans, and debts incurred after filing bankruptcy was filed.
- What can I keep, if anything, if I file bankruptcy?
Ohio law specifies the amount and property types that a filer can keep, exemptions. Exemptions allow an individual to "exempt", or keep, certain property types. Ohio exemptions include $20,000 of residential home equity, $3225 in one vehicle, $1350 in jewelry, $2025 implements of trade, and $1075 in a wild card for use in any property category. Other exemptions exist and using the exemptions efficiently is a key step in filing bankruptcy.
- Do I have to file bankruptcy on all the accounts I owe, or can I keep some?
The bankruptcy petition and schedules must contain a list of all debts. However, the debtor may choose to reaffirm some debts. Reaffirmation allows a debtor to continue to pay some debts to keep the collateral. For instance, a debtor may choose to continue paying for a car to keep the car.
- Will I lose my retirement accounts or payments from social security?
Retirement accounts and social security payment generally are not lost.
ERISA-qualified retirement accounts are not considered property of an estate and cannot be taken. Filers generally enjoy protection of Social Security benefits from assignment or garnishment for debts in bankruptcy.
- Will I lose my home if I file for bankruptcy?
It depends on many factors such as the amount of equity in the home, the status of mortgage payments, and the bankruptcy type.
- How long does a bankruptcy stay on my record?
Seven to ten years.
- Can I do anything to remove a bankruptcy from my credit report?
No.
- When can I apply for credit again?
A bankruptcy filer can apply for credit anytime. However, creditors may or may not extend the credit requested. The creditor decides.
- Can a "credit repair" company save me from bankruptcy?
Look for nonprofit companies that only charge a small fee. Many "credit repair" companies swindle their clients.
- Can a creditor continue to contact me after I have filed for bankruptcy?
Creditors must stop collection efforts on the filing. They are stayed from collection. However, secured creditors can ask for relief from the stay to collect. A debtor may have a legal claim against creditors who fail to comply with the stay.
- Who lets my creditors know I have filed for bankruptcy?
The bankruptcy court tells the creditors listed in the bankruptcy petition.
- What does a trustee do?
Trustees administer bankruptcies, collect money for creditors, administer the first meeting of the creditors known as the section 341 meeting, collect and sell property, and get information and documents.
- Can creditors object to a bankruptcy filing or plan?
Creditors can object to specific debts included in the plan or the manner in which the plan addresses the repayment or discharge. However, if the filer qualifies for bankruptcy, practically, there is little creditors can do to stop the discharge or debt restructuring.
- What happens at a creditors meeting?
The debtor must attend the creditors' meeting scheduled for their bankruptcy petition. The trustee conducts the meeting. The debtor must answer questions about the contents of the petition, changes in financial status, intent to reaffirm debt, values of property, and discretionary questions the trustee may ask. In addition, creditors may ask questions assets and other relevant matters.
- If I have forgotten to include a debt on my schedule, can I add it later?
The filer in order to add debts may file an amendment to the petition.
- When do I have to stop using my credit cards if I am planning on filing for bankruptcy?
Credit card use should stop as soon as one expects filing bankruptcy.
Purchases made 40 days before filing or cash advances taken within 20 days of filing may be excluded from the bankruptcy.
- What is a reaffirmation agreement?
A reaffirmation agreement is an agreement to continue paying a dischargeable debt after the bankruptcy. Debtors use reaffirmation agreements to keep property from repossession.
- Can anyone reopen a bankruptcy case?
A trustee can reopen a case if irregularities arise.
Business Law FAQ
- What is business law?
Business law includes a wide range of rules, statutes, codes, and regulations that govern commercial dealings. Business law addresses banking, finance, business formation, business organization, business negotiations, business planning, business transactions, acquisitions, mergers, divestitures, business sales, and business litigation.
- What are the possible costs of personal liability for businesses debts and obligations?
Personal liability exposes one to claims for business obligations including business losses, damage awards, tax bills, and back wages.
- How does incorporating avoid or lessen personal liability?
When owners properly incorporate a business in Ohio, it becomes a new legal entity separate from its owners. A judgment creditor or other person can reach only assets of the corporation. The personal assets of the owners cannot be reached except for a few limited circumstances such as fraud that allows for piercing the corporate veil.
- What does it mean to "pierce the corporate veil" and how do I avoid it happening to my company?
Piercing the corporate veil means that a judgment creditor can reach through the corporation to the owners' personal assets. If owners commingle personal and business assets, fail to set the business up properly, or neglect to sign contracts in their corporate capacity, the corporate veil may become pierced.
- Besides limited personal liability, what are some other benefits of incorporating?
A corporation may have unending existence. Corporate stock eases transfer of interest in the business. Use of the corporation provides estate-planning choices. The corporate form simplifies the sale of the business. If the business needs to raise more money, shares of stock may be sold to investors, venture capital firms, and the public. Central management is advantageous. The articles of incorporation and bylaws may include provisions to protect officers and directors from liability for any losses caused by them in their corporate capacity.
- What is a Limited Liability Company and how is it set up?
LLC stands for Limited Liability Company. It provides a flexible business structure that has been described as a combination between a corporation and a partnership or sole proprietorship. LLCs have the flexibility of a partnership or sole proprietorship and the legal protection of a corporation. The Ohio Secretary of State requires filing a form to set up an LLC. The filing requires articles of incorporation, an available business name, a business address, business purpose, a registered agent, and filing fee. In addition, LLC members should write and sign an operating agreement that describes how the LLC handles important matters. The operating agreement provisions control whether the LLC is taxed as a partnership or corporation.
- What are the primary advantages of an LLC that should be considered when starting a business?
LLC Members have protection from personal liability. LLC members may choose for the LLC to operate as a flow-through entity for which income and losses are reported directly by its members. Members may get special divisions of income, expenses, deductions and losses, and an individual member's losses are not limited by a member's investment.
- What are the primary disadvantages of an LLC that should be considered when starting a business?
The IRS has ruled that LLCs qualify as partnerships for tax purposes; the Internal Revenue Code contains nothing to assure continuation of such treatment.
- Is it a good idea to have a Buy-Sell Agreement for a corporation?
A corporation with more than one shareholder should have a buy-sell agreement. A shareholder's death, divorce, disability or termination of employment can cause serious problems. A buy-sell agreement helps lessen these problems by describing an action plan should one of these events occur. Partnership agreements and operating agreements for limited liability companies should contain buy-sell provisions as well.
