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November 2020

bankruptcy in ohio

Common Myths About Bankruptcy

By | Bankruptcy, Ohio, Toledo | No Comments

If you are considering personal bankruptcy, you have probably started the process of researching Chapter 7 bankruptcy and Chapter 13 bankruptcy online, and you might have spoken with friends or family members about the process. While some preliminary research into the consumer bankruptcy process can be helpful for debtors who are thinking about filing for bankruptcy, it is important to remember that there is also a lot of misinformation available. Indeed, according to articles in NerdWallet and U.S. News & World Report, consumers encounter many different bankruptcy myths. We want to dispel some of those myths for you and help you to understand more clearly what you should expect when it comes to the consumer bankruptcy process in Ohio.

Common Myth #1: Your Credit Will Never Recover

Many people hear drastic warnings about the effects of personal bankruptcy, and they commonly hear that their credit will never recover and that they will never again be eligible to finance a motor vehicle or to obtain a credit card. To be clear, this is a myth. While your credit will not immediately bounce back after you receive a bankruptcy discharge, you can begin taking steps quickly to rebuild your credit and to remain on track with your finances. Often, applying for a retail credit card or a secured card is a good option because it is a bit easier to obtain these credit cards than others. Once you have a credit card again, you can begin rebuilding your credit by making charges and paying them off each month. After several months pass of timely payments, you can often be approved for a traditional credit card.

Common Myth #2: You Will Never Be Able to Get a Mortgage

Similar to the myth we just discussed your credit being ruined forever, it is a mistake to think that bankruptcy means you will not be able to apply for and be approved for a mortgage. Indeed, this is another common bankruptcy myth. While you will need to rebuild your credit after bankruptcy in order to be eligible for a mortgage again, there are certainly mortgage options available to those who have filed for consumer bankruptcy. In fact, many people file for Chapter 13 bankruptcy in order to stop a foreclosure and to get caught up with mortgage payments.

Common Myth #3: Student Loans Will Not Be Discharged in Bankruptcy

Many people hear that they cannot discharge student loans in Chapter 7 or Chapter 13 bankruptcy. We want to be clear in saying that this is a myth. Although it is more difficult to discharge student loans in bankruptcy than certain other types of debt like credit card or medical debt, you should know that student loans are indeed dischargeable in many bankruptcy cases.

Contact an Ohio Bankruptcy Attorney for Assistance

Are you considering personal bankruptcy in Ohio? We can dispel many common myths about consumer bankruptcy for you today, and we can answer any questions you have about the bankruptcy process. When you are ready to file, one of our experienced Toledo bankruptcy attorneys can represent you every step of the way. Contact Groth & Associates for more information about how we can assist you.

Filing for Bankruptcy in Ohio During the COVID-19 Pandemic

By | Bankruptcy, Ohio, Toledo | No Comments

Filing for consumer bankruptcy under any circumstances is a complicated task. To be sure, the U.S. Bankruptcy Code is extremely complicated, and both Chapter 7 and Chapter 13 bankruptcy cases require significant documentation and specific filing requirements. Accordingly, even in the best circumstances, it is critical to have an experienced Ohio consumer bankruptcy lawyer on your side. Yet during the COVID-19 pandemic, bankruptcy cases have involved more complications than usual. Given that so many Americans have lost their jobs due to the coronavirus emergency and have not been able to return to work, increased bankruptcy filings are likely.

If you are thinking about filing for bankruptcy during the COVID-19 pandemic, we want to make sure you understand some of the ways in which public health restrictions could affect your bankruptcy case.

You Can Still Seek Assistance from a Bankruptcy Lawyer

You might be concerned that you will not be able to work with a bankruptcy attorney since many lawyers and law firms are working from home to reduce the spread of COVID-19. It is extremely important to know that lawyers are still taking new bankruptcy cases and representing consumers in Chapter 7 and Chapter 13 bankruptcy cases. While it may be necessary to meet virtually and to handle the details of a bankruptcy case within a physical in-person meeting, all of the important and necessary aspects of a lawyer-client relationship have remained the same. Our Toledo bankruptcy lawyers remain here to assist debtors with consumer bankruptcy cases.

Credit Counseling and Debtor Education Courses Will Remain Online

When you file for consumer bankruptcy, you are required to attend pre-bankruptcy credit counseling and a post-bankruptcy debtor education course. Even prior to the pandemic, debtors who were seeking bankruptcy protection could complete these requirements online. Given that the pandemic has resulted in many in-person requirements shifting to a virtual model, you likely will not be surprised to learn that credit counseling and debtor education courses will remain online. To be clear, when it comes to completing these requirements, the COVID-19 pandemic has not changed anything.

341 Meeting of Creditors Will Be Conducted Virtually

In a typical bankruptcy case, the 341 Meeting of Creditors is always conducted in person and is a requirement for the bankruptcy case to move forward and for the debtor to receive a discharge. While the pandemic has indeed resulted in the 341 Meeting of Creditors moving to an online or virtual environment, you should know that this requirement will still be able to take place and your bankruptcy case can continue to move forward.

In short, although the pandemic has shifted some elements of a bankruptcy case, the COVID-19 emergency is not stopping debtors from filing for bankruptcy or receiving discharges.

Contact a Toledo Bankruptcy Attorney

For the most part, bankruptcy filings will not change in form due to the COVID-19 pandemic. However, you should anticipate that you may need to have your case heard virtually, and you may need to attend required meetings or hearings virtually instead of going into a courtroom and standing before a judge. Yet when it comes to having an experienced Toledo bankruptcy attorney on your side, our firm will be here for you every step of the way—whether we do so virtually or in person. Contact Groth & Associates today for more information about how we can assist you.

COVID-19 NOTICE:

We are OPEN: we use email, phone and video conferencing to serve our clients remotely

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