Frequently Asked Questions

1. Can I keep some of my personal possessions if I file bankrutpcy? The answer is yes.
   Ohio law provides for the exemption of certain types of property, depending on the total
   value of that property. Items such as household goods and wearing apparel are generally exempt.
2. Can I keep my car? If there is a loan on the car, and the payments on the car are current,
   then under Chapter 7, you may be able to reaffirm the debt, if you can show that you are capable
   of making future payments, and that reaffirmation is in your best interest.
3. What is the difference between Chapter 7 and Chapter 13? In a Chapter 7, you zero or eliminate
   all of your debts, with the exception of any debts reaffirmed. In a Chapter 13, you payback a
   partial amount of your debt over a three-to-five year period.
4. How long does it take to complete a Chapter 7? It takes approximately four months from the
   time you file the case, until you receive your final discharge.
5. Are there additional requirements to receive a Chapter 7 discharge? Yes, in addition to
   completing the pre-bankrutpcy filing credit counseling session, you must complete a second
   "pre-discharge" credit counseling session prior to the closure of your case.
6. What if a foreclosure is pending on my residence? In most counties of Ohio, it takes a mimimun of six months to complete a foreclosure. If a bankruptcy case is filed prior to the Sheriff's Sale of the property, an automatic stay, issued when a bankrutpcy case is filed, can at least temporarily prevent the foreclosure action from moving forward. However, this is may only be a temporary measure, depending on the type of bankruptcy case filed. If a Chapter 13 case is filed, and a "feasible" plan is presented to "cure" the mortgage default over the term of the plan, then the property may be retained. If a Chapter 7 case is filed, the mortgage company can file a motion with the bankruptcy court in order to resume the foreclosure process.
7. If I file bankruptcy, can the amount owed on my home mortgage be reduced by the court? No, the law does not permit the Bankruptcy Court to reduce the principal amount, or interest rate, owed on your mortgage. However, if the appraised value of your home is less than the amount owed on your first mortgage, and you have a second mortgage, and you file a Chapter 13, you may be able to repay the second mortgage as an unsecured debt rather than a secured debt.
8. How does Chapter 13 work? If you owe a mortgage and you are in arrears on that payment, you will send your mortgage payment to the Chapter 13 Trustee and he will make the mortgage payment. In addition, you send an additional amount to provide the funds necessary to "catch-up" the mortgage arrearage. The Chapter 13 Trustee also pays-off your unsecured debts and auto debts, where applicable. The trustee pays only a fraction, or percentage, of the total unsecured debt. The balance is discharged in the bankrutpcy. At the end of the Chapter 13, the debtor is left with only the mortgage debt, which is currrent, and all other debts have be satisfied in-full, and or discharged.
9. If I filed an earlier Chapter 7, how long do I have to wait before I can file Chapter 7, again? Current bankruptcy code sets a time period of 8 years between a prior Chapter 7 filing and a subsequent Chapter 7 filing. The time period is based on the "date of filing."
10. Can I discharge Reinstatement Fees in a bankruptcy? Yes, BMV Reinstatement Fees are generally dischargeable in a Chapter 7, or Chapter 13, bankruuptcy.

    Disclaimer: Warning - The information contained on this page may not be accurate.
    You should consult an attorney prior to filing bankruptcy.

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