FAQ

Creditors are permitted to contact you up until your Bankruptcy has actually been filed with the Court.  Once that occurs a Restraining Order, called an Automatic Stay, will be issued precluding any creditor, collection agency or law firm acting on their behalf from doing so.  That will subsequen...

A mortgage cannot be removed ("stripped") from a parcel of real property in a Chapter 7 Bankruptcy, but that may potentially occur in a Chapter 13 Bankruptcy if you meet the requisite criteria.  Specifically, while you cannot strip a first (1st) mortgage, you might be able to strip a second (2nd) mortgage.  However, that would necessitate that the parcel be your primary residence, and that the balance due on the first (1st) mortgage be in excess of the home's reasonable fair market value.  

Legal proceedings are complex matters.  Further, employees of the Court are lawfully precluded from dispensing advice.  Therefore, in representing yourself you would have to effectively navigate through the Rules of Evidence, Rules of Civil Procedure, Rules of Court, understand the law as it pert...

Our firm has represented people from a broad spectrum of backgrounds.  That has included physicians, accountants, teachers, nurses, professors, dentists, psychologists, airline pilots, social workers, executives, attorneys and business owners.  However, regardless of their measure of education or...

A common misunderstanding is that once a lawsuit is filed the Court sets a date for the parties to appear before the Judge.  However, that is not a legal requirement in civil proceedings.  So if the Defendant fails to effectively respond to the Complaint by filing an Answer within twenty-eight (2...

Portfolio Recovery Associates is a debt purchaser.  They acquire default accounts from original credit issuers.  Once they own the obligation they can engage in any lawful collections efforts, including phone calls, letters, lawsuits, and post Judgment activities such as wage garnishment and bank attachment. Portfolio is owned by the PRA Group, a publically traded company.  In 2022 they acquired $850 million ($850,000,000.00) in default accounts, collected $1.7 billion ($1,700,000,000.00) from debtors, and generated a net profit in excess of $117 million ($117,000,000.00).  At the conclusion of that year they owned about $5.7 billion ($5,700,000,000.00) in outstanding balances, which is equivalent to around 5% of all credit card debt nationwide.  The benefit to an original credit issuer in selling to Portfolio is that they derive some value in exchange for a non-paying account.  Meanwhile, Portfolio generates a profit by successfully collecting sums from debtors that exceed their operational costs.  So given their scale, Portfolio serves a substantial role in the default collections industry. 

A creditor's lawsuit can be Dismissed for numerous reasons.  The Notice or Order will then indicate whether that occurred With Prejudice or Without Prejudice.  If Without Prejudice, the matter could potentially be refiled.  However, if Dismissed With Prejudice then the creditor would be legally barred from filing another lawsuit. 

A creditor's lawsuit must be filed within the time-frame provided for under law.  That is called a Statute of Limitations (SOL).  As it pertains to loans, credit and charge account obligations in Ohio, it is a six (6) year duration measured from the last payment on account, or when the balance became over due.   However, sometimes a creditor may initiate a case beyond the SOL.  In those circumstances the Defendant must then effectively respond to the Complaint and provide the Court evidence that this occurred.  The Judge will subsequently issue an Order dismissing proceedings, and equally bar the creditor from refiling the lawsuit.   

The ability to potentially Discharge debts in a Bankruptcy process is in part contingent upon your measure of household income.  That determination includes your spouse's earnings.  So irrespective of the duration of your marriage, whether the debts are only in your name, or even if those liabilities were wholly incurred prior to your union, your spouse's Pay Stubs, Tax Returns, W-2s and/or 1099s must be produced to your legal counsel to aid in their assessment of your case and subsequent preparation of the Bankruptcy Petition. 

The purpose of filing for Bankruptcy is to preclude your creditors from pursuing you in collections. So it is your burden to ensure that all of your liabilities are disclosed on your Petition when the case is filed with the Court.  Specifically, you must identify each company to whom you owe money, the approximate balance due, their mailing address and (if known) the account number. Therefore, unless these obligations are detailed as required, you could potentially find yourself subject to lawsuits, garnishments, and/or other collections activities despite having sought Bankruptcy protection.

Anyone seeking Bankruptcy protection must appear for a Hearing called a 341 Meeting of Creditors.  This proceeding is usually scheduled about 3-5 weeks after the case is filed, at which time you will be subject to examination concerning your finances.  Traditionally, these matters take place in t...

Debt consolidation companies may provide an appropriate solution for your financial issues.  However, creditors are not obligated to accept the amounts they may offer in satisfaction of the accounts outstanding.  Ultimately, if you encounter a creditor that is unwilling to consider their proposal...

The initiation of a lawsuit by a financial creditor will result in creation of a permanent Court record.  So even if you subsequently pay the full balance due, that would not serve to eliminate those details .  Therefore, to preclude that from occurring you will need to either work-out an agreed payment plan or potential discounted lump-sum settlement with the creditor before the lawsuit is even filed. 

When a motor vehicle is repossessed there is still an opportunity to preserve your ownership.  If prior to the scheduled auction you have the financial means to remit a lump-sum payment in satisfaction of the past amount due, plus any late fees assessed, that may cure the issue.  However, some fi...

When leasing you have no ownership interest in the motor vehicle.  So if you are current on your payments and have appropriate insurance coverage you will typically be able to retain the car despite filing for Chapter 7 Bankruptcy protection.  However, if the lease is not affordable, you can alt...

All consumers are entitled to a free Report from each of the three (3) Credit Reporting Agencies, Equifax, Experian and TransUnion, once every twelve (12) months.  Those can be obtained either by phone or on-line. Requests by phone can be made to (877) 322-8228.  However, it will take up to fift...

The cost of representation varies depending upon the services provided.  However, relative to Bankruptcy, Foreclosure Defense and Debt Settlement, most matters are handled for a flat fee that can be quoted by phone. In addition, we offer payment plans in satisfaction of these costs, and equally partner with ClientCredit, which provides legal fee financing options.   

Social Security and Pension benefits are lawfully protected from garnishment regarding credit and charge accounts, auto loans and leases, pay day loans, medical bills, utility bills and rental deficiencies.  This protection equally extends to any savings that may have been accumulated from such i...

If you are seeking Bankruptcy protection, your spouse is not required to be a co-filing party.  However, if you cohabitate, and they have an income source, they will be required to produce evidence of their earnings in the form of Pay Stubs, Tax Returns, W-2s and 1099s in order for you to effecti...

Creditors are not mandated by law to report your account to a Credit Reporting Agency.  Further, they can submit that information to one (1), two (2) or all three (3) of companies,whether TransUnion, Equifax or Experian.  Consequently, whether a particular obligation is itemized on any of your Credit Reports has no relationship to the creditor's lawful ability to collect the balance due, including through initiation of a lawsuit. 

When you co-sign a loan you are guaranteeing payment.  It does not matter if you are the primary or secondary borrower.  Once you execute the finance agreement you become subject to Joint and Several Liability, which means that upon Default the lender can choose to pursue the primary borrower, th...

If a creditor files suit and obtains a Judgment, it is reasonable to anticipate that they will subsequently affix a Lien to any parcel of real property that you may own until the balance due has been satisfied.  However, if you do not subsequently seek Bankruptcy protection or work-out agreed pay...

County Treasurers have the ability to sell real property Tax Liens as a revenue raising device.  This shifts the burden of collecting the outstanding deficiency to the purchaser, which is usually investment company that can then assess interest on the past amount due.  That amount can vary, but i...

Anyone is permitted to represent themselves in a pending legal action.  However, in doing so you are held to the same standards as a licensed practicing Attorney.  Specifically, you are not provided any exemption from complying with the Rules of Civil Procedure, Rules of Evidence or Local Court R...

If you have previously filed for Bankruptcy protection, and subsequently encounter additional financial issues, the time-frame you must wait to file another case varies depending upon several factors.  In regards to Chapter 7 protection, if you successfully received a Discharge in your original c...