Find a Bankruptcy Lawyer in Parma, Ohio

Find the right Bankruptcy attorney in Parma, OH

Bankruptcy in Parma, Ohio is a court proceeding through which a person or business who is unable to pay their debt is able to have some of their debt legally absolved, or "discharged." This theoretically allows the debtor to move on with a clean slate. Bankruptcy should be treated as an option of last resort, and should not be viewed as a proper way to get out of debt that you just don't feel like paying. Bankruptcy can have severe consequences, including but not limited to damage to your credit rating. A bad credit score can impact your ability to receive loans in the future, to rent an apartment, and possibly even your ability to get hired at some jobs (as some employers now run credit checks on prospective employees).

For that reason, it would be prudent to speak with a good Parma, Ohio bankruptcy attorney. This attorney will be able to advise you as to whether or not filing for bankruptcy is a good idea, given your individual situation. This determination is highly dependent on the details of each individual case, so a Parma attorney's advice is absolutely indispensable.

Types of Bankruptcy in Parma, Ohio

In Parma, Ohio, there are three basic bankruptcy schemes that are most often used. They are recognized as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Parma, Ohio will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is complete, and the proceeds handed over to the creditors, the debt is viewed as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other normally used bankruptcy system in Parma is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is approved by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the contracts that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is normally a better option for people who have a steady income. Chapter 11 bankruptcy is usually used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - basically telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be approved by the participating creditors through a simple majority vote.

During the Chapter 11 process, a business can normally continue its operations, and the stock can be traded, even if it is de-listed from a major stock exchange.

How Can a Parma Bankruptcy Lawyer Help?

Filing for bankruptcy in Parma is a very important decision, and should not be made lightly. Before filing, one should consult with a good Parma bankruptcy attorney for help.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Parma

Parma, Ohio is a city in Cuyahoga County. It is a suburb of Cleveland. It currently has a population of about 84,000 people.

Parma is located southwest of Cleveland, and directly borders the city. Parma, Ohio was founded in 1826, by settlers from New York. Parma, Ohio was named after a city in New York of the same name, and likely came from the popular fascination with classical Italian culture that existed at the time. Through the rest of the 19th century, Parma remained rural, with its economy largely based on agriculture. Parma saw an explosion in population and economic growth after World War Two, when a major exodus from cities into newly-created residential suburbs was well underway. This was fueled mostly by increased consumer purchasing power created by the economic boom, as well as apprehension about living in major cities during the Cold War.

Modernly, Parma maintains its suburban character, and is largely a bedroom community for Cleveland.

If you live in Parma, Ohio and need an attorney, there's a good chance you'll be able to find one. Parma, Ohio attorneys are very competent and well-rounded. A Parma, Ohio lawyer can probably handle just about any legal issue you might have.

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