If you owe money to creditors, it pays to know what weapons they have to enable them to collect from you. The livelihood of creditors depends on receiving their money and if you are unable to pay your debts, the creditors will pursue collections. There are several approaches they take, and many of them involve going to court to obtain pre-judgment legal remedies or to proceed with formal court proceedings to obtain a judgment against you.
If you find yourself getting overwhelmed with debt, getting legal assistance is essential. The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand all aspects of debt and the ways creditors attempt to collect it. We offer a free consultation to examine your individual situation and help you get back on the road to recovery.
The U.S. bankruptcy code provides protection to creditors dealing with unpaid debts. When debtors file for bankruptcy, the laws allow specific creditors to receive payments before others.
In a bankruptcy case, creditors have rights that include:
Creditors with secured claims have additional and greater rights than unsecured creditors as they can repossess their collateral, after the bankruptcy stay expires or upon order of the bankruptcy court, if a debtor fails to make a payment on the secured claim
Creditors often first attempt to collect debts without involving the courts. This usually involves:
Additional steps creditors take include:
Both replevin and attachment are used in extreme circumstances, such as when the debtor is about to dispose of the property.
If you decide to file for bankruptcy, Fesenmyer Cousino Weinzimmer can assist you with matters involving:
Creditors are entitled to an enforceable judgment if they can prove their case or if debtors fail to contest their claim. It’s important to get legal assistance to fight back.
Bankruptcy is a way to get many debts forgiven and to protect you from the collection efforts of your creditors. However, if their debt-collection tactics don’t work and the debtor owes a substantial amount to several creditors, creditors may be able to initiate an involuntary bankruptcy proceeding. If the court accepts the petition, debtors may be forced to liquidate assets to pay off debts (Chapter 7) or may be able to file a reorganization plan that sets out how debts will be paid (Chapter 13).
In a Chapter 7 bankruptcy, a debtor has three choices with secured creditors:
In a Chapter 13 bankruptcy, the filer’s debts are reorganized and paid off over a three- to five-year period. The debtor must do one of the following:
Filing for bankruptcy can often be the best solution for debtors who need a chance for a fresh financial start and a path to a brighter future. If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be forgiven, and provide a way for you to keep many of your assets and begin to rebuild your life.
If you find yourself overwhelmed by tactics creditors use to collect on debts, the experienced Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer can help. We offer a free consultation to evaluate your entire financial situation and determine the best fit for your particular circumstances. We will make sure you are aware of all your options and help you decide on the financial recovery path that makes sense in your individual case. We know the courts and the system and will walk you through the process every step of the way.
Delaying can only worsen your situation, so call the Ohio attorneys at Fesenmyer Cousino Weinzimmer today. Call one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) or email for your free consultation.
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