Attorney David P. Drew represents individuals and commercial clients in bankruptcy proceedings that are initiated by either an insolvent individual, or business, or creditors seeking to have the debtor's remaining assets distributed among the creditors and, thereby, discharging the debtor from further obligation or restructuring and reorganizing the insolvent's debt structure.

Bankruptcy law is governed by federal law. It contains the provisions that make up current bankruptcy law. Individual states may not regulate bankruptcy. Bankruptcy proceedings are handled in the United States Bankruptcy Courts .

There are two basic types of bankruptcy: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy (11, 12, & 13 are similar but are specific to businesses, farms and individual or families. We will only discuss Chapter 13 bankruptcy).

Chapter 7 Bankruptcy is usually referred to as liquidation. A trustee is appointed who liquidates the debtor's assets and distributes the proceeds to creditors. Chapter 13 Bankruptcy is aimed at rehabilitating the debtor to allow him to use future earnings to pay creditors with the protection of the government.

IMPORTANT : The new bankruptcy law was passed and signed into law by President Bush.  The new provisions become effective for cases filed on or after  October 17, 2005 . Some parts of the law, particularly regarding homestead exemptions, went into effect prior to that.   However, the new laws did not eliminate bankruptcy, nor did it do many of the negative things that rumors have stated.   With the assistance of an experienced bankruptcy attorney, you can still accomplish most, if not all, of the same things as you previously could under the "old" laws.  There are just simply more "hoops" to jump through and more documentation required.

Don't assume that bankruptcy relief is not available anymore.  That is a false rumor.  Bankruptcy Law is alive and can still benefit you. 

If you live in Akron, Stow or surrounding cities in Ohio, contact me now to schedule a consultation to see if it is in your best interest to file a bankruptcy case under the new bankruptcy laws. Akron: (330) 762-0080  Stow: (330) 686-1299

If you are interested in the specifics of the complete bill, visit http://thomas.loc.gov/cgi-bin/bdquery/z?d109:SN00256:  for a summary.

COSTS AND FEES FOR FILING BANKRUPTCY This is ultimately (and understandably) the most frequently asked question that I get in cases, as one might expect.

My Fees

Giving out fee quotations before having a full consultation regarding your situation is impossible, and yet I get this question asked point blank without my being given any other information. The fees that I (or anyone) charge for a bankruptcy depend on numerous factors, including what chapter you are filing under, the complexity of the case, anticipated problems from creditors, the Trustee or the court, the number of creditors, specific geographic area, etc.

Court Filing Fees

These are fees set and charged by the court and are required to file any bankruptcy in addition to any attorneys fees. These fees do not go to the attorney. These court filing fees are:

Chapter 7:   $274.00
Chapter 13: $189.00
Chapter 11: $1,039.00

What are you getting for your money?

I will say that my fees for the various chapters are extremely competitive. Can you find lower fees elsewhere? Possibly. But what are you getting (losing) by saving that money and how much money are you really saving? We all like to think that all attorneys and doctors are equally competent, but it is simply not true. There are good doctors and hopelessly bad doctors and the same is true of attorneys. I'm not suggesting that just because an attorney charges lower fees that he is incompetent. I merely point out that the overriding decision on who to select should not be based solely on the fees charged.

There are a lot of bankruptcy attorneys out there...just like there are a lot of doctors. What amazes me is that people would almost never go to a doctor who charges "bargain basement" prices for something serious. Wouldn't that make you skeptical? So, why would you do that with an attorney who is essentially helping your financial future? I don't know the answer to that, but I get all kinds of calls from people who are trying to discharge (eliminate) $50,000 or more debt (for example) and want to save $100 on the attorneys' fees. As I have stated elsewhere on my pages, I get a lot of calls from people who have filed a bankruptcy with an incompetent attorney or paralegal (admittedly, often these attorneys have charged far more than I would have charged) and then want to hire me to fix the problems, if possible (and often it is not possible at that point).

Q: What is the automatic stay?

This is an injunction that goes into effect automatically upon the filing of a bankruptcy. It strictly prohibits the commencement or continuation of any acts to collect on a debt that arose prior to filing the bankruptcy. This includes enforcement of judgments, creating or perfecting liens, and many other actions. (It does not apply to collecting alimony maintenance and support).

Q.  Does the automatic stay always apply when a bankruptcy case is filed, and if so, for how long?

Generally, the automatic stay goes into effect immediately upon filing your case and against acts taken towards you personally until you receive your discharge. Stays against actions towards property you own may last longer or shorter depending on what happens to that property during your case (e.g. it is sold by the Trustee or not, etc.).  Note:  For cases filed on or after October 17, 2005, there are several limits to the length of the automatic stay:  1.  If you had a prior bankruptcy case dismissed under any chapter within one year prior to the filing of your present case, the automatic stay will terminate 30 days after your new case is filed, unless you obtain a court order extending it, for cause and a showing of good faith as to why the prior case was dismissed.  2.  If you had more than one prior bankruptcy case dismissed under any chapter within one year prior to the filing of your present case, the automatic stay does not go into effect at all unless and until the court orders it into effect, after a noticed hearing.  There are other new limitations on the automatic stay, but you should check with your attorney as to whether they will affect you.

Q: Where Does My Case Get Filed?

Your case is filed in the District where you have resided or have your domicile (or for a business, its principal place of business) for the greater part of the 180 day period prior to the date your case is filed. 

Q.  What are exemptions?

Exemptions are protected allowances for the value in certain assets.  For example, a homestead exemption protects the equity you have in your home, up to a certain value.  All States have different exemption laws which protect the value in certain assets.  You need to check with a qualified bankruptcy attorney regarding what exemptions you are entitled to when you file your case. Which State's laws you use depends on where your domicile was located for the 2 years prior to commencing your bankruptcy case.

Q.  Which State's exemption laws apply to my assets?

 For cases filed after 10/17/05: The exemption laws of whatever State you were domiciled in for the last 2 years.  If you lived in more than one State in the past 2 years, then it will be the exemption laws of whatever State you lived in for the 180 day period PRIOR to the start of the last 2 years and if you lived in more than one State during that 180 day period, then it will be the State where you lived for the greater part of that 180 days.  

Q.  Can I pick and choose who to list in my bankruptcy case?

Absolutely not.  I don't know where people get this idea. You must list all your assets and all your debts in ANY chapter of bankruptcy. You may voluntarily repay anybody you want after your case is concluded (and you are required to repay any debts that are not discharged), but you are still required to list all your creditors.

Q.  Can you be fired or denied employment because of a bankruptcy?

No. While an employer can usually find some reason to fire anyone, they cannot use bankruptcy as a basis for doing so. This is set forth in Section 525 of the Bankruptcy Code.

Q.  Can I remove liens against my property?

Yes.  Under certain circumstances, judicial liens and "nonpossessory, nonpurchase-money security interests"  may be removed if, based on the value of the asset and the amount of senior liens and encumbrances against it on the date your bankruptcy case is filed, the fixing of the lien causes it to "impair" an exemption to which you are entitled under State (or other applicable) law.

If you live in Akron, Stow or surrounding cities in Ohio, contact me now to schedule a consultation to see if it is in your best interest to file a bankruptcy case under the new bankruptcy laws.  Akron: (330) 762-0080  Stow: (330) 686-1299 

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