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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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is it better to file bankruptcy or go to a debt collection

Customer Question

is it better to file bankruptcy or go to a debt collection service for help. my daughter got stuck in a divorce with spouses credit card debt. she can barely keep her head above water. she lives in ohio. she received a phone call on a medical bill from the ohio state atty generals office saying they want payment now or they will take her tax return. are they talking state tax? they can't touch federal tax return can they? thank you
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 3 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Bankruptcy may be the better option. Many people try debt consolidation services, but they don't all play fair, and not all companies are equal, with many of my bankruptcy clients coming in saying they wish they never went that route.

Terry L. :

if you do, be sure the agency is a not-for-profit agency

Terry L. :

check with the better business bureau for good recommendations.

Terry L. :

As for bankruptcy, bankruptcy can usually wipe the slate clean, and help your daughter move forward in just 90 days after chapter 7. most get credit card offers right away, can by cars the first month and buy homes in a couple years afterwards too.

Terry L. :

it depends on how far along the debts have gone to collection, suits and such.

Terry L. :

if it is a govenmental agency, they can offset taxes too if she doesn't pay.

Terry L. :

Bankruptcy puts a stop to all that

Terry L. :

I would suggest she meet with a local bankruptcy attorney.

Terry L. :

most offer free consultations and payment plans to help their clients.

Terry L. :

they can go thru her assets, income/expenses, and debts to help get her a fresh start

Terry L. :

Do you have any questions?

JACUSTOMER-8ds2s7bn- :

in ohio how much does it cost to file bankruptcy and does that fee include the lawyer, or is the lawyer seperate? are there any lawyers who help people who just don't have money to pay for help needed?

Terry L. :

$306 is the court fee.

Terry L. :

attorneys fees are separate. I charge $500-1500 on average depends on the complexity. Should be similar out there.

JACUSTOMER-8ds2s7bn- :

what does chapter 7 mean?

Terry L. :

Chapter 7 is the section the bankruptcy would be filed under, to wipe out the debts in 90 days.

Terry L. :

Chapter 13 is a debt consolidation

Terry L. :

Check with the bankruptcy court in her area to find a list of pro-bono agencies

Terry L. :

There are some, but she'll have to talk to them to see what qualifications are needed for fee waiver.

JACUSTOMER-8ds2s7bn- :

ok, I will, may I get back to you again, once I get her on the phone? Im in kansas and she is in ohio

Terry L. :

gotcha.

Terry L. :

Feel free to request me, Terry L, for any other bankruptcy questions, I'm here to help!

Terry L. :

any other ?S while you have me?

JACUSTOMER-8ds2s7bn- :

not right now. I am trying to call her though. thank you

Terry L. :

ok, best of luck too you both. Please click accept to rate my answer

Terry L. :

I see you are still here, did you have anything further at this point?

Terry L. :

If you have any other questions, please let me know. If not, please click accept to close the question and rate my answer. Thanks! Terry L