Johnson Legal Services P.L.L.C
Johnson Legal Services, PLLC was listed among the top bankruptcy case filers by volume in 2024 by the Bankruptcy Court for Northern District of West Virginia. We assist clients obtain a fresh start through the bankruptcy process in Ohio, Pennsylvania and West Virginia
What Can Federal Bankruptcy
Law Do for You?
Federal bankruptcy law has the advantage of being federal law, meaning that it is backed by the Supremacy Clause of the United States Constitution and has priority over State law. Unlike debt consolidation, bankruptcy law is mandatory and does not depend on negotiation.
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The moment a bankruptcy case is filed, all collection action must stop, including actions in pending court cases. If you are receiving collection calls, having your wages garnished, have judgements against you, or if you would like to avoid such things happening to you, call today for a tailored plan to overcome your financial difficulties and clear your path to a better financial future.
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Chapter 7
If you are eligible for a "no asset" Chapter 7 case, the whole process can be over in about 100 days, and you can focus on a future that does not include the stress of pre-existing debt. Qualifying for Chapter 7 has two components: assets and income. Often, and sometimes with prudent pre-bankruptcy planning, individuals get to keep their assets from creditors in bankruptcy - including the house and the car. On the income side of the equation, an individual's earnings are compared to the state median income for the individual's household size. For those with income above the state-median, the bankruptcy "means test" applies and an individual's budget is subject to some real and some imagined expense standards provided by the Internal Revenue Service. Means testing in bankruptcy can be complicated, so it is important to make an appointment to discuss your financial situation in detail with our office staff. For those who are unable to pass the means test, a repayment plan under Chapter 13 may be the best option.
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Chapter 11
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Chapter 11 is for businesses and individuals with primarily business-related debt. Chapter 11 can be used both to sell property - free and clear of any interest of that property - and/or to restructure a business to pay the actual value of secured claims over time and to pay a percentage to unsecured creditors. For eligible individuals and businesses, a subchapter V Chapter 11 case may allow you to propose a Chapter 11 plan that is not subject to voting by your creditors and it allows you to retain your equity ownership in the company when all creditors are not paid in full.
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Chapter 12
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Chapter 12 is for family farmers and fishermen. The purpose of Chapter 12 is to keep family farms operating, and it offers many powerful advantages in dealing with farm creditors.
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Chapter 13
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If you are an individual and have too much equity in your property or too much income to file a Chapter 7 case, or if you are seeking to save a home from foreclosure, Chapter 13 is an excellent option. Chapter 13 is a 3-5 year repayment plan that generally allows you to keep your home, cars and other property from your creditors. Chapter 13 also has advantages for dealing with equitable distribution claims, certain tax claims, secured claim cramdowns, and reducing certain contract rates of interest. For individuals on social security who want to preserve their family home from collecting creditors, Chapter 13 is often the filing chapter of choice. Both Chapter 7 and Chapter 13 should be considered before wasting funds on debt consolidation alternatives.
Bankruptcy or Debt Consolidation
If you have already paid a debt consolidation company to deal with your creditors, or are thinking about it, make an appointment to discuss the cost savings of bankruptcy. Do not take out a home equity loan to repay your credit card debts, or agree to rollover personal loans into loans secured by a vehicle before making an appointment to discuss your options.
Experience Matters
There is a lot of misinformation on the internet regarding bankruptcy, its costs, its impact, and what is achievable through the bankruptcy system. Although bankruptcy is a federal law, it is applied locally, and applicable state law plays an important role. This means that the results of the bankruptcy process may be different depending on where you live, and how long you have lived there. You can take advantage of our years of experience to ensure that you are making informed decisions about your financial future.
Secured Debt in Chapter 7
Stating your intentions
What Are My Options for Homes and Cars in Chapter 7
Redeem, reaffirm, surrender, or, for home mortgages, retain and pay.
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Redemption is a lump sum payment in satisfaction of the underlying debt. Often secured debts in something like furniture or appliances can be reduced to the "replacement value" considering the property's age and condition.
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Reaffirmation is an agreement with the lender to remove the secured debt from the bankruptcy discharge. Reaffirmation is generally used to retain motor vehicles. In cases where a "back door ride though" reaffirmation agreement is appropriate, an individual may still be able to retain a motor vehicle without being personally liable on the debt.
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Surrender is the option of choice when the amount of the debt exceeds the value of the vehicle. You make arrangements with your lender to take possession of the vehicle and you stop making payments.
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Retain and Pay is the option most often used for home mortgages. Just keep current on your payments and stay in your home.