Chapter 7 Bankruptcy
Chapter 7 is what most people think of when they think of bankruptcy. A Chapter 7 bankruptcy wipes out most unsecured debts. In a Chapter 7 case, a bankruptcy trustee can take non-exempt property and use it to pay debts. Ohio law governs what property is exempt and what is not exempt. In most cases a trustee does not take property from you. Again, it is important to consult with a professional about what property you can keep and what property could be at risk in a bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 is a repayment plan. People file Chapter 13 bankruptcies for a variety of reasons. The most common reasons are if the individual makes too much money to file a Chapter 7, has unprotected assets in a Chapter 7, needs a Chapter 13 to stop or avoid a foreclosure, or if they have already filed a Chapter 7 within the past eight years. It is best to speak with an attorney about your options.
On occasion it is best to settle your debts for less than the full balance instead of filing for bankruptcy. There are advantages and disadvantages to doing this, and I can help you make a smart decision based on your particular situation. Then I will negotiate on your behalf with your creditors to get you the best deal possible.