Frequently Asked Questions
Can I file a bankruptcy case?
The answer to this question is almost always yes. There are different kinds of bankruptcy relief available, and depending on your circumstances you may be guided to certain options that are more appropriate for your situation.
Does bankruptcy stop a foreclosure?
Foreclosure on a home is one of the most common reasons for filing bankruptcy, and the filing of a case will generally halt a foreclosure and allow more time for options to be considered.
Does bankruptcy stop wage garnishment?
Does it stop wage garnishment that has already started?
Yes, wage garnishments stop upon the filing of the case with the Court.
Does bankruptcy stop car repossession?
Yes, bankruptcy will often prevent the repossession of a vehicle.
Can I keep my car and house?
Each situation is different, but usually a car a house can be retained if payments continue to be made.
Can I keep my car and house if I own them outright?
Ohio has recently enacted an exemption scheme that is far more favorable than the previous law, so it is far more likely that a home or a car with no lien against it will be able to be retained.
Do I have to go to court?
Yes, once a case is filed, attendance at a ‘creditors’ meeting is required. It sounds like an awful experience but it isn’t, and you will be well prepared before the hearing by your attorney for the questions that will be asked. The hearing generally takes about 5‐10 minutes and is almost always the only appearance required.
Do I have to do credit counseling before the case is filed?
There is an internet based ‘credit counseling’ that is required before a case is filed. The course results in a certificate that is filed with the petition at the beginning of the case. After the case is filed, a second course called a ‘financial management ‘ course is required. The second course provides a second certificate that has to be filed with the Court before a discharge can be issued. Neither course is difficult. They’re both internet based and take approximately one hour to complete. The cost for each is minimal.
What happens after my court hearing?
Generally not much. A discharge is issued 60‐90 days later in Chapter 7 cases and payments continue during the remainder of the plan in chapter 13 reorganization cases, at which time a discharge is issued after 3 to five years.