FAQ

The documentation typically required in order to proceed with a Chapter 7 Bankruptcy may include all of the following as may be applicable to your particular circumstances: (1)   The last two (2) years of Federal and State Tax Returns; (2)   The last two (2) years of W-2s and/or 1099s;  (3)   ...

A list of authorized Consumer Credit Counselors can be found via this link: https://www.justice.gov/ust/eo/bapcpa/ccde/CC_Files/CC_Approved_Agencies_HTML/cc_ohio/cc_ohio.htm

In most instances we will require around 4-5 hours of our office time to review and analyze your financial documentation and prepare your Petition.  However, that process cannot be completed until you remit all of the required materials.  Additionally, you must satisfy the initial Consumer Credit...

Yes, Bankruptcy is not your only available solution.  If your debts are financially manageable, there may be an opportunity to work-out monthly payment plans and/or lump-sum settlements with your various creditors and avoid having to seek Bankruptcy protection.  Should you wish to further explore...

The law does not require you to have an attorney.  However, it is nonetheless recommended.  Bankruptcy law is complex, and so having competent legal advice and guidance through the process will ensure your interests are protected, and that you subsequently secure an optimal case result. 

In most instances, our office will file your case before the attorney's fees are paid in full, with the remaining balance satisfied via an agreed monthly payment plan.  Please contact our office at (216) 691-7800 to fully discuss those available payment options.

To receive a Discharge of your debts you will have to participate in a 341 Meeting of Creditors where you will be examined by the Trustee assigned to administer your case.  That is usually scheduled about 3-5 weeks after your Petition is filed.  Then, by law, the Judge has to wait a minimum of tw...

Yes, Federal Law requires you to fully disclose all of your creditors in your Petition.  That includes obligations like your student loans that may not be Dischargeable, as well as those such as your mortgage and auto loans that you may intend to continue paying.  

While some individuals do mismanage their finances, the most common reasons people seek Bankruptcy protection is due to illness, relationship failure, job loss and/or income reduction.   

A Bankruptcy does not disqualify you from obtaining a mortgage.  However, you must still meet all other qualifications with a prospective lender to secure financing.  That includes rebuilding your credit to an appropriate level and equally demonstrating sufficient income to qualify for the loan.

Bankruptcy may result in your credit score improving, as your successful completion of the case will result in a Discharge of your debts.  That means your creditors will be barred from collecting the balances due on those accounts.  However, a Bankruptcy filing does not erase your past credit hi...

Yes, once the Bankruptcy case is filed your employer will be under a Court Order to suspend any further debt-related wage deductions.  However, the Bankruptcy will not preclude deductions related to child or spousal support, nor your repayment of any loans due to your 401k.

If the suspension was administrative, issued by the Ohio Bureau of Motor Vehicles due to your failure to maintain appropriate insurance coverage at the time of the accident, and you were not convicted of driving under the influence (OVI) as a result, then the obligation can be Discharged in the B...

If you are filing a Chapter 7, the case will likely be concluded within roughly 5-6 months.  In comparison, a Chapter 13 will usually extend for around 3-5 years. 

That depends upon your intentions.  An auto loan and mortgage are secured debts.  So if you would like to retain your motor vehicle and real property then you must continue satisfying your required payments.  Should you not want to preserve  your ownership, then you are not obligated to pay the l...

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...

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...