Get Relief From Debts And Creditors Through Bankruptcy

If you are buried in debt and hounded by creditors, filing for bankruptcy is a reset button to give you a fresh start or gain some breathing room to pay back debts over time.

We understand the stress and cycle of financial problems caused by debt. We also understand why people are reluctant to file for bankruptcy. Attorney Susan J. Lax will explain the process and answer all your questions. She is an experienced bankruptcy lawyer who has helped hundreds of ordinary Ohio residents find relief.

Understanding Bankruptcy

Bankruptcy is a legal process to eliminate debts (Chapter 7) or spread your debt payments out over time (Chapter 13) if you are unable to catch up on what you owe. When you file for bankruptcy, credit card companies and other creditors must stop all collection efforts. This includes harassing phone calls and legal actions such as garnishing your paychecks or tax returns. We can help you with the following:

• Chapter 7 bankruptcy
• Chapter 13 bankruptcy
• Stop foreclosures and collection procedures
• Wage garnishment

Chapter 7 Bankruptcy: Discharge Of Debts

With a Chapter 7 bankruptcy, you basically get a “fresh start.” Chapter 7 is also known as a “straight bankruptcy” or “liquidation.” All qualifying unsecured debts, such as credit cards and medical bills, are forgiven. In exchange, you give up property and assets that exceed certain limits, called “exemptions,” so that they can be sold to pay creditors.

A trustee will collect these assets and sell any that are not exempt, and the proceeds from that are paid to the creditors. Most personal assets are exempt, including retirement savings. Some people do not forfeit any property in Chapter 7.

If you meet the criteria and would like a “fresh start” on your finances, Susan J. Lax R.N., M.S. LLC can help you get the process started to give you peace of mind and the ability to relieve some of your debts.

Chapter 13 Bankruptcy: Repayment Plan

A Chapter 13 bankruptcy is sometimes called a “debt adjustment” or “wage earner plan.” It requires a debtor to file a plan to pay debts (or parts of debts) over several years, based on their current income. For this to be possible, you will need to have enough income in Chapter 13 to pay for your necessities and keep up with the required payments as they come due.

Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a designated trustee who then distributes payments to creditors. You will have no direct contact with creditors while under Chapter 13 bankruptcy protection. It can be very helpful if you have fallen behind on mortgage payments, as you can pay the mortgage arrears through the plan, which often runs for five years.

If you have assets or property that are not exempt in Chapter 7, a Chapter 13 bankruptcy might be the way you need to go to relieve yourself of your financial burden with the help of an experienced, practiced attorney like Ms. Lax.

Stop Foreclosures

If you fall behind on house payments, your mortgage lender has the right to pursue legal action to recover the balance of the loan by forcing the sale of the property and terminating your contract.

There are four main ways to avoid foreclosure:

1. Filing for personal bankruptcy
2. Refinancing your mortgage
3. A short sale
4. Mortgage modification

Foreclosure is stressful enough without having to worry about filing paperwork, researching available government aid programs and dealing with creditors. Contact Susan J. Lax R.N., M.S. LLC to schedule a consultation with an attorney who can provide assistance during this troublesome time.

Wage Garnishments

A wage garnishment withholds part of your paychecks to repay your creditors. It requires a court order, and there is a limit to how much can be taken from each check. The most common reasons for wage garnishment are:

1. Child support
2. Spousal support
3. Federal tax debt
4. State tax debt
5. Defaulted student loans

If you have been notified of a wage garnishment, contact Ms. Lax. She will do everything in her power to help you understand what is happening and help you take the necessary steps to possibly reduce the garnishment or negotiate with your debtor.

Bankruptcy Does Not Cover All Debts

Certain categories of debts are not dischargeable in bankruptcy. A Chapter 7 bankruptcy eliminates unsecured debts such as credit cards and medical bills, but does not erase other types of debts as listed below. In Chapter 13 bankruptcy, some of your nondischargeable debts may be rolled into your repayment plan. Bankruptcy only applies to debts and arrears — you will still be responsible for the ongoing mortgage payments and remaining balance on your car loan if you wish to retain those assets.

Under 11 U.S. Code §523, the following debts are not eligible for discharge:

1. Back child support, alimony obligations and other debts dedicated to family support
2. Debts for personal injury or death caused by driving while intoxicated (DWI)
3. Student loans, unless it would be an undue hardship for you to repay
4. Fines and penalties for violating the law, including traffic tickets and criminal restitution
5. Recent income tax debts (within 3 years) and all other tax debts
6. Debts you forget to list in your bankruptcy papers unless the creditor learns of your bankruptcy case

Do You Qualify For Bankruptcy Relief?

Call our Akron law office to talk to attorney Susan J. Lax about your bankruptcy options. Her role is to make sure your petition is accurate and complete and help you eliminate as much debt as possible. Once you file for bankruptcy, creditors cannot bother you; they can only contact your lawyer.

You can arrange a consultation at 330-745-1500 or contact us online. We have helped individuals and families throughout northeast Ohio.

Susan J. Lax R.N., M.S. LLC is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.