With today’s volatile economy, the issue of bankruptcy relief is a hot topic. Many individuals and businesses are considering whether bankruptcy relief is an option for them and what does it specifically mean for them. First, bankruptcy relief requires filing documentation with the United States Federal Court seeking relief from payment of debt and a stay on collection actions by creditors. Whether you will have to repay any of your debts will depend upon your current income and the nature of your debts. These factors also determine which chapter of bankruptcy you would need to file. Initially by filing for bankruptcy relief, your creditors are stayed from collection activities. Accordingly, the initial filing of the bankruptcy may stop garnishments, foreclosures, repossessions, evictions, harassing telephone calls and other actions by creditors. Additionally, bankruptcy relief may allow you to discharge certain obligations, meaning that you would not have to pay those debts after you filed for bankruptcy. What obligations are discharged will depend on the following factors:

• Is there property securing those obligations, such as a house or car?
• Are you current on your payments?
• Are the obligations tax debts?

 Both individuals and businesses can file bankruptcy. The following financial information will need to be provided:

• Current and past income
• Assets and their values
• Name, type and amount of each debt

 Due to the fact that there are some pre-filing requirements such as debt counseling and the completing paperwork, if you are considering bankruptcy, you should seek consultation immediately to know how to proceed and to understand your rights.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects.  The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.