Bryant Legal, LLC serves clients in Columbus and Toledo, including the surrounding areas, who find themselves facing financial hardship and need the protection of the Court, as allowed by bankruptcy law, to obtain financial relief to reorganize or adjust their debts and obtain a financial fresh start.
There are three different bankruptcy chapters under the Bankruptcy Code that may work for you. Selecting the right option depends on your financial situation, the amount and type of debt you are facing, and what your ultimate goals are for your financial future. Whichever chapter you choose to file under, the day you file your petition, all actions by all of your creditors must stop.
Chapter 7 bankruptcy, also known as straight bankruptcy, is a way for individual debtors to make a fresh start by obtaining a discharge of their debt and starting over with a clean slate. For most consumers who qualify, Chapter 7 bankruptcy provides fast and complete debt relief. Individuals who are not eligible for Chapter 7, or who have certain particular circumstances, may benefit instead from a Chapter 13 bankruptcy, or in some cases Chapter 11 bankruptcy.
A person does not have to be completely broke or insolvent before filing for bankruptcy. Presuming there are no other eligibility restrictions, Chapter 7 bankruptcy eligibility is largely determined based on the Means Test. The Means Test was introduced with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) and is designed to prevent individuals with primarily consumer debts (i.e., it doesn’t apply to individuals with primarily business debts) who have sufficient income from discharging a large portion of their debt.
Basically, if your income is below the median income for your household size, then you qualify and do not need to complete the entire Means Test form. If your income is above median income, then you must complete the entire form to determine your Chapter 7 bankruptcy eligibility and whether a presumption of abuse arises.
Chapter 13 bankruptcy, also known as a “debt adjustment” or “wage earner’s” plan, is an excellent way to help consumers, particularly homeowners, consolidate and reduce their debts and get the creditors and bill collectors off their backs. It is for those who have fallen behind in payment of their debts, but if given some time, they have enough income to essentially catch up. They file a reorganization plan with the court showing how they plan to repay debt over a three to five-year period of time. Debtors must show they have enough income to meet their daily living expenses as well as the amount they intend to pay on back debts. If the plan is approved and they meet all their obligations under the plan, at the end of the payment period, remaining debts are discharged. During the course of the plan, they make one payment to the bankruptcy trustee who parcels out the right amount to the trustees.
Chapter 13 bankruptcy gives debtors the breathing room to step back from oppressive debt and create a plan that enables them to comfortably pay off their debts over a three to five-year period. Among other benefits, here is a non-exhaustive list:
Chapter 11 bankruptcy is a type of bankruptcy usually used by business entities, such as corporations, partnerships and limited liability companies, that permits a business to continue with operations while it repays creditors under a “reorganization plan.” It is often a complex, and complicated process with which experienced bankruptcy attorneys can help.
At Bryant Legal, LLC, we have the experience you need to assist you with your bankruptcy needs no matter what they are. We will review the financial situation of you or your business. Together, we will decide the best way to proceed. For more information about your legal issue, contact a Columbus or Toledo attorney at Bryant Legal, LLC.