Learn More About The Basics Of Bankruptcy
The act of filing for bankruptcy usually comes after several weeks, if not months of preparation. Readying yourself for bankruptcy also occurs after months, if not years of stress over finances. Continuing to put off a solution or continuing to juggle high-interest debts only makes a bad situation worse. Your phone continues to ring and your mailbox fills up with final notices.
After careful consideration, many of those in financial distress choose to assert their right to bankruptcy protection. A good number of those have retained the Toledo bankruptcy lawyers at Mahaffey & Associates.
By Your Side Throughout The Entire Process
At Mahaffey & Associates, we counsel our clients on how bankruptcy works. We also advise them on the various ways banks pursue money they are owed. Their tactics only underscore the need for a bankruptcy filing as soon as possible. Regardless of regulations, creditors will still do what they can to skirt the rules.
Here is a very basic overview of steps in the bankruptcy process:
- Consult with an attorney about your bankruptcy options and choose the best option for your situation.
- Complete the first two mandatory courses, a credit counseling session offered by an approved counseling agency.
- File a bankruptcy petition with the court (usually Chapter 7 or Chapter 13 for individuals). This triggers the “automatic stay” discussed below.
- If filing for Chapter 7, you may need to liquidate some assets at this stage to partially repay creditors. If filing Chapter 13, you’ll need to create a repayment plan, then make payments for the next three to five years.
- Complete the second of two mandatory courses, a “debtor education” course.
- Once all previous steps have been completed, your debt can be discharged in Chapter 7 or any remaining debt can be discharged in Chapter 13.
The timelines to complete bankruptcy are very different. Chapter 7 can be completed within a matter of months, while Chapter 13 could last up to five years.
A note about the automatic stay: Once we file a Chapter 7 debt elimination, Chapter 13 debt reorganization or Chapter 11 business reorganization bankruptcy on your behalf, creditors and their collection agents receive notification of an automatic stay. All contact via telephone or mail must cease. If they wish to talk about your debt, you can refer them to us.
Stop Creditor Harassment With One Phone Call
The Toledo bankruptcy attorneys at Mahaffey & Associates serve northwest Ohio with flexible office hours and timely, quality work at cost-effective rates. Schedule a free initial consultation at one of our three conveniently located offices. Call 419-741-0111 or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.