Chapter 7 or Chapter 13 Bankruptcy?

When deciding what path you would like to take regarding bankruptcy, there are many factors that you need to take into account in order to reach the proper decision. This involves looking at your income, property, assets, if you are married, how many are living in your household and many more. Taking the wrong route has the potential to bring with it negative effects that will stay with you for years.

Most individuals and businesses in Ohio and Kentucky have only to consider two options for bankruptcy: Chapter 7 and Chapter 13. Each has particular aspects that may work better for you depending on your personal situation. Figuring out which one will most effectively aid in fixing your legal financial issues is the single most important decision that you can make prior to filing.

Considering the long-term importance of this decision, it would be in your best interest to consult with a qualified bankruptcy attorney who has the legal understanding of bankruptcy to effectively advise you on what path to take, while also representing you during this stressful time.

Greater Cincinnati and Northern Kentucky Bankruptcy Attorney

Although a decision to file for bankruptcy is a monumental one, many are surprised to see how simple it can actually be if tackled with a bankruptcy attorney at their side. An attorney can take control of the filing while staying straightforward and transparent with you about the ongoing process. This communication will give you and your family peace of mind during a typically difficult time in your lives.

Eric Steiden strictly adheres to the maxim that "clients come first" and that it is his duty to provide the best possible customer service throughout this lengthy process. He takes pride in being efficient, fast and always knowing exactly what to do. His confidence in his abilities, combined with his 17 years of bankruptcy experience will ensure that you are well taken care of. Eric is aware of the intense pressure that individuals and businesses feel during this stressful time and understands that his clients are desperate to find solutions. This translates to a passionate attorney who takes every avenue necessary to help you get out of this financial hole and on to the next stage in your evolution.

Steiden Law Offices proudly represents Kentucky residents throughout Kenton County and Boone County with two office locations, one in Florence and the other in Covington. Their representation extends to the cities of Erlanger, Elsmere, Edgewood, Villa Hills, Fort Mitchell and many more.

Eric Steiden also has offices in Southern Ohio. Both are located in Cincinnati and serve residents throughout Hamilton County, including the cities of Norwood, Forest Park, Blue Ash, Montgomery, Reading, Springdale and North College Hill, among others.

To schedule a free consultation to discuss if you are eligible for bankruptcy, call (888) 877-3328 or send an online message today. Eric Steiden and staff will help you determine in a timely manner if bankruptcy is the right path for you, along with which types of filing is best for your personal situation.


Chapter 7 vs. Chapter 13 Bankruptcy Information


Differences between Chapter 7 and Chapter 13

In Chapter 7 bankruptcy, you ask the court to discharge most of the debts you owe. In exchange for this discharge, the appointed bankruptcy trustee (and independent arbitrator) is able to take any property that you own (which is not exempt), sell it and then distribute the proceeds to the relevant creditors.

In Chapter 13, you are in essence filing a repayment plan with the bankruptcy court in order to pay back all or a portion of your debts over time. The amount that you are required to pay depends on factors such as how much you earn, the amount and types of debt you owe and how much property you own.

In a basic sense, Chapter 13 allows you to keep your property because you are able to repay your debts through your income, whereas in Chapter 7, you select property you are eligible to keep from a list of state exemptions.

Common exemptions in Ohio and Kentucky include:

  • Homestead – real or personal property
  • Personal Property – burial plot, motor vehicle, bank accounts, tax refunds, household goods, furnishings, musical instruments
  • Wages – minimum of 75% of disposable weekly earnings
  • Pensions – tax exempt retirement accounts, public employee pension
  • Tools of trade – tools, books, implements
  • Alimony – alimony and child support
  • Insurance – disability, life, group life
  • Misc. – business partnership property
  • Wildcard – $1,150 of any property

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Benefits of Filing under Chapter 7

With Chapter 7, the debtor is no longer obligated to pay back his or her debts, which can be beneficial in many circumstances. Executed properly in many situations, Chapter 7 tends to be the most efficient and timely way to file for bankruptcy, and debts being discharged approximately three months after filing. Although this may take less time than other filings, this should not be a primary factor in your decision making process. Your long-term financial position will also impact your decision.


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Benefits of Filing under Chapter 13

Chapter 13 bankruptcy is a more complicated process than simple liquidation, and is more suitable for individuals who have property or assets that they would like to protect. The first immediate benefit of this filing is the fact that the debtor will not have direct contact with creditors. Furthermore, unlike debt consolidation, the debtor is under the protection of the Bankruptcy Court and creditors cannot take any action against the debtor without first obtaining permission from the court.

As the "wage earners" plan, Chapter 13 is a longer process but includes very important clauses that allow an individual to keep his or her property. By filing under Chapter 13 bankruptcy, debtors can stop foreclosure proceedings and can repay past due mortgage payments through a Chapter 13 plan. The debtor will have up to five years to repay mortgage arrears. This is far longer than a bank would normally allow to cure a mortgage default. However, mortgage payments that come due during the repayment period must be paid on time.

In certain cases, debtors who file for Chapter 13 can modify the terms of repayment of certain types of secured debts. This can drastically lower the monthly payments that are due and make repayment more manageable for debtors.

Filing Chapter 13 can also provide protection for cosigners. It protects third parties who are liable with the debtor on consumer debts, such as car loans. These types of debts are those incurred for personal, family or household purposes.

To finish, there are particular debts which an individual is not able to discharge during a Chapter 7 filing that are eligible for discharge when under Chapter 13 bankruptcy protection. One of the most important of these is the debt regarding property settlements given pursuant to a divorce, which are non-dischargeable in Chapter 7. One thing to keep in mind during a situation that involves bankruptcy and divorce is that it is It is vital to distinguish support obligations, which are never eligible for discharge, from property settlement obligations.


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Bankruptcy Legal Resources

United States Courts – Bankruptcy – This is the main bankruptcy page on the U.S. Courts website. It contains information on the various types of bankruptcy available for individuals and businesses, along with resources detailing relevant forms, rules, administrators and cases. It also has information on fees and discharge orders.

American Bankruptcy Institute – This website offers information on current events and news relating to bankruptcy in the United States. It also details state and federal legislation that involves legal financial topics, including statistics, directories and archives.

Legal Information Institute – This website was developed by the Cornell University Law School and is a great resource on researching and reading the laws that govern our nation. It includes information on federal law, the constitution, state law resources, state statutes, bankruptcy and much more.


Steiden Law Offices | Florence Bankruptcy Lawyer

There are very few situations more stressful than feeling powerless under a mountain of debt that never seems to go away. Knowing that you are running out of options can have a negative effect on many aspects of your life that you would never believe would have related to your money situation. With this being the case, taking the steps to remedy this issue will allow you to take a breath and start over again, potentially making up for the pain and heartache that may have been the result of money problems.

Eric Steiden is a Ohio and Kentucky bankruptcy attorney has helped individuals and families get out of debt and on with their lives for over a decade. He will bring the same commitment to integrity and honesty that he has always emphasized to every case the firm takes on.

Figuring out the best course of action is vital in making this an efficient process that ends the way you would like. Eric Steiden places a large importance on providing excellent client service, so you will know your best interests are in mind when filing for bankruptcy. With four office locations, two in Cincinnati, Ohio and one each in Covington, KY and Florence, KY, the firm is a convenient option for residents of both states.

To schedule a free consultation to go over the details of your financial situation with Eric Steiden, call (888) 877-3328 or send an online message today. Steiden Law Offices proudly represents individuals throughout Southern Ohio and Northern Kentucky.

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Cincinnati, OH
830 Main St #401 Cincinnati, OH 45202
Cincinnati, OH
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Covington, KY
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6900 Houston Rd #21 Florence, KY 41042
Maineville, OH
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