Bankruptcy FAQ's

Whether or not you should file bankruptcy depends on your particular circumstances. It may be that after consultation with an attorney, you are able resolve your financial difficulties through other means. In some cases, declaring bankruptcy may be necessary. We recommend consultation with an attorney for making your decision to file bankruptcy.

How much does filing bankruptcy cost? <back to top>Initial consultations are always free regardless of which type of bankruptcy you decide to file. The following information should give you approximate guidelines for the costs of both Chapter 7 and Chapter 13.

Chapter 7 - The court costs (also known as filing fees) are $299 and third-party costs average around $89 (credit reports, due diligence research, pre-petition credit counseling, and post-petition debtor education). Attorneys fees through our offices will generally range from $900 - $1400. When you come see us for your free consultation, we will discus payment plan options in order to get you filed as soon as possible. There are some circumstances where attorneys fees or third-party costs may be higher or lower adjusting the overall cost somewhat. If Chapter 7 is the right solution for you, you may retain our services for as little as $50, which opens your file an allows referral of creditor calls. However, we cannot file your case and obtain the full protection of the bankruptcy court for you until such time as your entire legal services are paid in full.

Chapter 13 - The court costs are $274 and third-party costs average around $89 (credit reports, due diligence research, pre-petition credit counseling, and post-petition debtor education). Attorneys fees are goverened by the local Bankruptcy Rules and mostly paid to the trustee as part of the Chapter 13 plan payment. $500 to $700 of the attorney fees are typically paid up front depending on your circumstances and the remaining fees vary and are paid through your Chapter 13 Plan. All bankruptcy attorney fees are reviewed for fairness and reasonableness by the Judge assigned to your case.

Do I have to lose any of my property? <back to top>

Our job is to help you save, not lose, your home, car, or other property! We always do all that we can to help you keep your of your property that we can. In most cases, debtors do not need to lose anything when they file bankruptcy!

How long will my bankruptcy show on my credit record? <back to top>

The Fair Credit Reporting Act, 6 U.S.C. Section 605, is the law that controls credit reporting. The law states that credit reporting agencies may not report a bankruptcy case on a person's credit report after ten years from the date the bankruptcy case is filed. Other bad credit information is removed after seven years. The larger credit reporting agencies belong to an organization called the Associated Credit Bureaus. The policy of the Associated Credit Bureau is to remove Chapter 11 and Chapter 13 cases from the credit report after seven years to encourage debtors to file under these chapters. The bankruptcy courts have no influence over these reporting policies.

Who can file a Chapter 7 bankruptcy petition? <back to top>

Almost any individual file a chapter 7 bankruptcy petition if he or she resides, has a domicile, a place of business, or property in the United States, or a municipality. If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition and should check with an attorney to see if you are eligible under 11 U.S.C. sec. 109(g).

You can file a Chapter 7 bankruptcy petition regardless of whether or not you are employed so long as your income is less than typical or the median income for your local.

If you were granted or denied a chapter 7 discharge in a prior case within the last 8 years or completed a chapter 13 plan in a prior case, you might not be entitled to receive a discharge in bankruptcy and probably are not a candidate for a chapter 7 bankruptcy proceeding, but you may be a candidate for a chapter 13 bankruptcy.

This rule does have some exceptions and we are happy to discuss your options at a free consultation.

What are the most common reasons for a Chapter 7 bankruptcy? <back to top>

The most common reasons for consumer bankruptcy are: unemployment; large medical expenses; seriously over-extended credit; marital problems and other large unexpected expenses.

Who can file a chapter 13 bankruptcy petition? <back to top>

Individuals may file chapter 13 bankruptcy petitions if they:

(1) reside, have a domicile, a place of business, or property in the United States, or a municipality;

(2) most importantly, have a source of regular income; and

(3) on the date the petition is filed owe less than a certain amount of unsecured debts and a certain amount of secured debts.

If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition and should with an attorney.

What are the most common reasons for a Chapter 13 bankruptcy?<back to top>

The most common reasons for chapter 13 consumer bankruptcy are the need to reinstate a mortgage or secured loan that is in default, to protect non-exempt property, or because a debtor has a previous Chapter 7 or Chapter 13 discharge.

Another reason under the amended bankruptcy law for filing under Chapter 13 is if a person is ineligible for Chapter 7 due to a higher than typical income.

Do I need to have an attorney? <back to top>
If you are an individual filing bankruptcy, you may represent yourself. This is referred to as being Pro Se. The decision to go forward as a pro se litigant is not recommended and very risky because the bankruptcy law is complicated.

The U.S. Bankruptcy Court Clerk's Office is prohibited by 28 U.S.C. Section 955 from giving legal advice or assisting with the preparation of forms. The fact that an individual is filing without the benefit of legal counsel does not excuse him/her from knowing the United States Code. You will be expected to read and be familiar with both the Local Rules of this court and the Federal Rules of Bankruptcy Procedure.

What is a Pro Se Debtor? <back to top>
If you are representing yourself without the benefit of an attorney, you are known as a pro se litigant. "Pro Se" is a Latin term meaning "for yourself." As a pro se litigant, you enjoy every right entitled to you under the law. Pro se litigants are expected to follow and abide by the rules that govern the practice of law in the Federal Courts. Pro se litigants should be familiar with the United States Code, the Federal Rules of Bankruptcy Procedure and the Local Rules of the Southern District of Ohio.

What is the difference between Chapter 7, 11 & 13 cases? <back to top>
Chapter 7 - Liquidation: This chapter of the U.S. Bankruptcy Code provides for an orderly court-supervised means of selling certain assets to pay your creditors. In a Chapter 7 case, a trustee is appointed to take charge of your "estate" consisting of all your assets. The law may allow you to keep some of your property. The trustee will sell the rest to pay your creditors. Unless someone objects, some or all of your debts will be discharged within a few months after the bankruptcy petition is filed.

Chapter 11 - Reorganization: This Chapter of the U.S. Bankruptcy Code is available to individuals, businesses and other entities, but is primarily intended to allow an ongoing business to restructure its debts. Successful reorganization is dependent on the debtor filing what is called a "reorganization plan" and obtaining the acceptance of creditors and approval by the court for such a plan.

Chapter 13 - Adjustment of Debts for an Individual with Regular Income: This Chapter of the U.S. Bankruptcy Code provides a court-supervised method for a debtor to pay back creditors over a period of time of up to five years. The debtor files a plan for repayment with the bankruptcy petition or soon thereafter. Payments must begin within thirty days after the case has begun. The payments are made to a trustee who will begin paying the creditors after the plan has been approved by the court.

What information do I need to file a bankruptcy? <back to top>

Some of the information needed includes:

Home address
Social Security Number
Employer's name and address
Salary and wage information for the last six months
A list of all those to whom you legally owe money
A list of all your major property (for example: real estate, automobiles, boats, furniture, etc.)
A list of all your personal sources of income
A list of all your financial accounts (for example: checking and savings accounts, savings bonds, etc.)
A list of all your monthly expenses (for example: rent, food, child support, transportation, etc.)
A copy of your federal and state tax returns for the past two years.

If you come in for a free consultation we will give you a list of everything we need for a bankruptcy.

When am I under bankruptcy protection? <back to top>
You are under bankruptcy protection when and after your petition is filed and a case number is assigned. The moment a petition is filed there exists an automatic stay, or suspension, of virtually all litigation and other action by creditors against the debtor or the debtor's property. Once a petition has been filed, creditors cannot commence or continue most legal actions, such as foreclosures, garnishments, execution on judgments, trials,or any action to repossess property in the hands of the debtor. Creditors can, in limited circumstances, seek to have the court allow them to pursue or continue legal collection actions.

Will filing bankruptcy stop my wages from being garnished? <back to top>
Yes, once you file bankruptcy, you are under protection of the court from most creditors. You should immediately notify the garnishing creditor and court that you have filed a bankruptcy petition.

Is my bankruptcy case public information? <back to top>
Yes, bankruptcies are considered public record. Anyone may call the court and verify if you have filed bankruptcy or may come into our offices and review the file.

How can I file before or after hours? <back to top>
All pleadings must be filed electronically, which may be accomplished 24 hours a day. Contact us if you have emergency circumstances and we will try and accomodate you.

What forms of payment are accepted? <back to top>
Clients may pay with cash, check card, cashier's check, or money order. We will also accept payment by credit card if someone else is paying your fees or in a situation where the credit card obligation will be paid.

What is a Meeting of Creditors? Do I have to attend? <back to top>
The first meeting of creditors is required under Section 341 of the Bankruptcy Code and the debtor is required to attend. The purpose of the meeting is to enable the appointed trustee to examine the debtor under oath regarding the information that has been filed with the Court. The trustee or a creditor may inquire about the debtor's financial status, conduct and financial affairs, and any other matters that are relevant to the administration of the debtor's estate, including factors which bear on an individual debtor's right to a discharge or to the dischargeability of any particular obligation, or the debtor's claimed exemptions. If a creditor wishes to do an in-depth examination, he or she should request a Rule 2004 examination from the Court.

Failure of the debtor to attend this meeting may result in dismissal of the bankruptcy case.

Debtors must provide picture identification and proof of social security number to the trustee at the meeting of creditors. Failure to do so may result in your case being dismissed.

Will I ever have to go before a judge? <back to top>
All contested matters will be heard by the judge if one of the parties files a motion or a response or objection to that motion. We will send a letter indicating any hearings that your are required to attend, which is in addition to notice from the Court.

What is a trustee? <back to top>
A trustee is a person who works with the court to administer bankruptcy cases. The trustee does not represent the debtor or any individual creditor and cannot give legal advice. Rather, the trustee has independent rights and duties that are set forth in the Bankruptcy Code sections 323, 327, 341, 343, 345, 363, 364, 365, 704 (chapter 7 cases) and 1302 (chapter 13 cases).

In a chapter 7 case, the trustee may take possession of the debtor's assets, sell them, and distribute the proceeds to creditors. In a chapter 13 case, the trustee administers the debtor's plan of payment, collects the funds, and pays the creditors. The trustee will also oversee the first meeting of creditors.

Are all of my debts canceled by the Bankruptcy Court? <back to top>
No, certain debts are not canceled by the US Bankruptcy Court. Examples include taxes, school loans, debts resulting from fraud, alimony and child support payments. Other debts are canceled only if your petition is approved by the US Bankruptcy Court.

Specific questions you have should be directed to an attorney. The Clerk of the Bankruptcy Court can answer questions about court procedures for you but is prohibited by law from giving legal advice.

When will I get my discharge? <back to top>
Individual debtors are eligible to receive their Chapter 7 discharge 60 days from the first date set for the 341 meeting of creditors, unless a creditor objects in a timely manner or the court orders otherwise. In the normal case where no complaint objecting to the discharge is filed, the debtor will receive a discharge within five working days after the 60 days has passed. If a notice of amendment to schedules is filed to add creditors, the discharge will be delayed an additional 30 days from the date of filing the notice.

Will all of my creditors be notified of my discharge? <back to top>
All creditors who were listed on your mailing matrix or who entered an appearance in your case will be notified.

When will my case be closed? <back to top>
Since all cases bear unique circumstances, it is difficult to pinpoint an exact time that your case will be closed. Many chapter 7 no asset cases are closed within 90 days from filing if no disputes have arisen. Chapter 7 asset cases require that the trustee liquidate the assets which often takes several years. Chapter 13 cases remain open as long as the plan payments are being made, generally for three to five years after the plan has been confirmed.

How do I get a copy of my discharge? <back to top>
You will receive a copy of your discharge in the mail after it is entered. However, if some time has passed and you have not received your discharge or you need another copy please call the Bankruptcy Court Clerk's Office at (614) 469-6638.

**After filing, it is very important that the debtors retain his/her bankruptcy papers for future reference. Sometimes the information may be needed for a future home purchase or other business transactions that will require proof of filing and discharge.**

How can I get copies of my bankruptcy? <back to top>
If you lose your copy of petition or other documents, we will provide a copy free by email or a copy by mail or in person for a small fee. You may also contact the Bankruptcy Court Clerk’s Office for assistance in obtaining copies at (614) 469-6638

What is an adversary complaint? <back to top>
An adversary complaint is a "case within a case." It is civil litigation, usually involving funds or property which may have an impact on the bankruptcy estate.

How do I know what property is exempt? <back to top>
Under Ohio law, debtors are entitled to keep certain exempt property. We will review your property and advise you as to what is or could be exempt hen you come in for a free consultation.