Different Types of Bankruptcies

Understanding Bankruptcy Law in Ohio

The power to establish bankruptcy laws is specifically mentioned in the US Constitution and the bankruptcy laws in our country have been in existence in some form for centuries, although sweeping changes were made to the consumer bankruptcy laws in October of 2005. Even the basics of the bankruptcy law are intricate and filled with pitfalls for the unwary. There are different kinds of bankruptcy filings with varied qualification and requirements. This article will provide a basic overview of the different available bankruptcies under the US Bankruptcy Code.

Chapter 7 Bankruptcy

Chapter 7 (Liquidation) is designed for debtors who do not have the ability to pay their existing debts. Individuals, corporations and partnerships are eligible to file Ch. 7.  In consumer Ch. 7 cases, the household income together with many other factors is evaluated to determine eligibility of the individual. Such qualification does not exist for businesses. The law allows you to keep certain personal and real property, known as “exempt” property.   Many people find that all of their property is exempt and they can keep everything while obtaining a complete discharge of all of their debts.   Some particular debts are not discharged under the law. Thus, you may still be responsible for most taxes and student loans; debts incurred to pay non-dischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; and debts for death or personal injury caused by drunk driving. There are other exceptions to discharge if a creditor can prove that the debt arose as a result of fraud, breach of fiduciary duty, theft, or from a willful and malicious injury.

Chapter 13 Bankruptcy

Chapter 13 (Debt Repayment) is designed for individuals with regular income who can afford to pay back all or a portion of their debts over a period of 3 to 5 years. Only individuals, not partnerships or corporations, are eligible to file Ch. 13, however, individuals who own business are eligible. The debts of a Ch. 13 debtor must meet the eligibility requirement of the Bankruptcy Code, specifically, as of April 1, 2019,  noncontingent, liquidated unsecured debts must be less than $419,275 and noncontingent, liquidated secured debts must be less than $1,257,850 under 11 USC §109. These debt limits are adjusted periodically to reflect changes in the consumer price index. Most of the debts that are not dischargeable in a Ch. 7 case are not dischargeable in a Ch. 13 case either, with some exceptions.

Chapter 11 Bankruptcy

Chapter 11 (Reorganization) is designed for business but is also available to individuals. Generally, small businesses shy away from Ch. 11 as it is expensive, risky, time-consuming, and complex. However, Ch. 11 is the only bankruptcy option for a small business seeking to restructure and continue in operation if it is owned by a partnership, limited liability company, or corporation. Ch. 11 is also the only bankruptcy option for individual business debtors who want to reorganize but owe too much money to meet Ch. 13 eligibility requirements.

Other Bankruptcy Chapters

Chapter 9 bankruptcy is applicable to municipalities. Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings similar to Ch. 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.

How to File Bankruptcy                    

It is strongly recommended that persons wanting to file for bankruptcy seek a qualified attorney who can guide them thought the intricate and complicated process of the US Bankruptcy Code.

How long do I have to wait to apply for a mortgage after filing bankruptcy?

After filing bankruptcy, there can be many unknowns. Will this affect your job? Your relationships? Your financial future?

Sometimes, bankruptcy is a necessary step to get back on track and move forward. The good news is, by filing bankruptcy, you are taking the first step to eliminating debt and starting fresh.

And if you didn’t own your home prior to filing, you might be wondering when you can apply for a mortgage after it’s all said and done.

Filing bankruptcy doesn’t mean you will never qualify for credit again and there are steps you can take to move forward.

One of the first things you can do, if you are consider applying for a mortgage after bankruptcy, is to check your credit report about two or three months after your bankruptcy is complete.

Check to see if the bankruptcy discharge is listed and that your credit report is accurate and true. You can get your credit report once a year for free by going to this site: www.annualcreditreport.com.

If you are ready to apply for a loan, make sure you try and get prequalified BEFORE you start hunting for a house. It will help if you can provide your mortgage lender with an explanation of your bankruptcy and getting prequalified will help eliminate frustration when you find your dream home – and want to make an offer.

Also, make sure you check different lenders, as they all have different rules. An FHA or VA loan is different from a conventional loan.

The type of bankruptcy you filed for may affect your future as well. Even though there is not a hard or fast rule about how long to wait after bankruptcy to apply for a loan, a 2-4 year time is reasonable. A mortgage loan, for example, will require a longer wait time than a car loan.

Mina Nami Khorrami LLC

The bankruptcy experts at Mina Nami Khorrami LLC can help you navigate your life before, during and after filing bankruptcy. Contact us today at 614-857-9590.






Could filing bankruptcy affect your job? Here are three things to know

When it comes to considering filing bankruptcy, you probably have a lot of things on your mind: How will it affect your finances, your life and maybe even your job?

Filing bankruptcy is not a decision that should ever be taken lightly, but luckily, when you do so, it’s unlikely to affect your employment.

Generally, if you are already employed, your employer cannot fire you because you file bankruptcy as the bankruptcy code (federal law) has anti-discrimination provisions protection your job, as well as other situations. The bankruptcy cannot be the sole reason for firing or demoting an employee.

There are exceptions, however. If you are looking for employment, private employers – as opposed to government employers – might not hire you if you file for bankruptcy, especially in certain industries such as financial fields.  

Telling your employer

For most people, your employer will not find out about your bankruptcy and you are not legally required to tell your employer when you are filing bankruptcy. However, it is public record, so anyone could technically look up your name and find the filing. And sometimes, you have to list creditors, so if you have a retirement loan, your employer could be notified.

But ordinarily, it can be kept private.

Losing your job

No one should ever lose their job simply for filing bankruptcy. Your employer also cannot legally change the terms of your employment: Your job title, your wages etc.

Employers rarely find out if someone has filed Chapter 7 bankruptcy, so you likely won’t need to worry.

Long term issues

If you have filed for bankruptcy in the past, you should not be required to disclose this to potential employers. However, for some jobs that require you to handle money or have a security clearance, it will likely come up during a background check – so be prepared. Moreover, most employers now look at credit reports of potential employees, so it is best to be honest and handle the matter thoughtfully.

Mina Nami Khorrami LLC

At Mina Nami Khorrami LLC, our legal experts are here to help you understand filing bankruptcy – every step of the way.


Bankruptcy debts: What is and isn’t discharged

If you are considering filing for bankruptcy, it can be a difficult time. It might be difficult for a lay person to understand what dischargeable bankruptcy debts are, so when you enter the process, you might not know what debts can – and cannot – be discharged.

Most people have a basic understanding that student loans and some taxes will stick with you even if you file bankruptcy, but there are other debts that can’t be discharged.

In general, there are a handful of debts that will stick with you until they are paid off and it’s best to know that before entering into the bankruptcy process. It’s a lot to sort through, and the experts at Mina Nami Khorrami LLC are here to help you understand bankruptcy debts. Read on:

In general, some taxes, student loans, child support and alimony, fraud and criminal restitution, condo and homeowner’s association dues will stick with you until paid after a bankruptcy filing. These bankruptcy debts cannot be discharged for a myriad of reasons.

Generally, the kind of bankruptcy debts that can be discharged include but is not limited to: credit card bills, medical bills, cell phone bills, personal loans, utilities, leases, and some secured debts such as mortgages and auto loans if you do not want to keep the property.

Many people have confusion and when they call our experts we try to explain the general process up front. And the rules are NOT the same for a private citizen vs. a corporation, so that is important to note as well.

For example, generally a corporation files Chapter 11 and an individual files Chapter 13. Chapter 7 is for both corporations AND consumers, however, there might be ways for a business to take advantage of a Chapter 13 filing.

Our legal experts want you to understand the consequences of filing for bankruptcy and what bankruptcy debts you will be relieved of from the beginning of the process. There are many deadlines and other issues, so you will need proper legal representation should you need to file bankruptcy.

Just like most major decisions, you need to plan for bankruptcy. Don’t try to do it alone.

Mina Nami Khorrami LLC

The legal experts at Mina Nami Khorrami LLC are here to help you understand bankruptcy debts and the bankruptcy process.


Four things every homeowner needs to know about foreclosure

Buying a home is a happy time: You begin to dream about the new memories to come, parties you will host and changes you can make to personalize your space. You probably aren’t thinking, however, about foreclosure.

But if you own a home, you should educate yourself about foreclosure. Life happens, things change and circumstances can lead anyone onto this path and what you don’t know can end up costing you.

So, what does every homeowner need to know about foreclosure? We’re sharing four things the legal experts at Mina Nami Khorrami LLC think every homeowner needs to know. Generally speaking, the context of foreclosure defense – from a legal standpoint – is that unless there is a violation of mortgage laws, if someone is behind in paying their mortgage, a good attorney will provide a defense in a foreclosure action.

Their representation, in general, is to help you keep your home.

That’s why it is helpful to have a working knowledge of the process, as a homeowner, so you know what a bank can and cannot do. Knowing how to do a loan modification, assuming you qualify, can make a difference, for example.

Read on:


The first thing to understand about foreclosure is timing. Once you receive a summons, you have 28 days to file a response or you give up your right to defend yourself against the action. So, you’ll need to move quickly.


Help is available. Many homeowners facing foreclosure can do a loan modification. Many lenders offer this, so it pays to know it’s an option.

Walking away

If you cannot keep your home – or you don’t want to – you may be able to walk away.  A mortgage company does have the right to pursue the foreclosure deficiency judgment (even though they usually won’t).

Other options

If you know you can’t afford to keep your home, you do have options other than walking away. You can try a short sale. A short sale is when a buyer offers less than what’s owed on the mortgage and negotiates with the lender. The homeowner isn’t held responsible.

Filing for bankruptcy is also an option: Either when you want to keep your home or walk away.

Mina Nami Khorrami LLC knows foreclosure

If you or someone you love is facing foreclosure, the legal experts at Mina Nami Khorrami LLC can help. Call us today at 614-857-9590!

Three Reasons to Hire a Bankruptcy Attorney

When most people come to the Mina Nami Khorrami LLC, they are in dire straits. Bankruptcy is their last resort. They’ve tried everything else. So, when they sit in our office, we want them to know these three reasons to hire a bankruptcy attorney.

While bankruptcy can be a scary time, there are positives that can come of it. One of the best things you can do is hire a bankruptcy attorney to help you through the process. It is a complex and involved process and you should not do it alone. When you hire a bankruptcy attorney, you are hiring an expert who can help you navigate the court system and move through the process with a little less worry and stress.

Here are three reasons to hire a bankruptcy attorney. Read on:

We know the law

A bankruptcy attorney knows the laws; every complex bit and loophole. We know how to file your case so it won’t get dismissed. And, we help you navigate all the complex requirements, meet every deadline and follow the process.

We protect your interests

When you hire a bankruptcy attorney, you hire a true advocate. We will be in your corner, making sure to provide comfort during this stressful time, while making sure to protect your interests. We are knowledgeable. We know the consequences. We will be there for YOU.

We know what is expected

Chances are, you’ve never filed for bankruptcy before or it has been a long time since you filed. We have. We know all the requirements and deadlines you’ll face and will make sure they are all met. We know how important it is to have proper guidance when you are facing bankruptcy and we’ll be at the meetings and hearings with you so you know what to expect.

Mina Nami Khorrami LLC

Like any area of law, bankruptcy is complex, with its own set of rules and procedures to follow. Hiring a bankruptcy attorney will protect your rights and make sure you aren’t put at a disadvantage.


Filing a new Chapter 13 case after dismissal of a previous Chapter 13

If you file a Chapter 13 case that is dismissed, can you file another Chapter 13 case afterward to save your house? In re Bieniek, Case no. 16-62113 (Bankr. N.D. Ohio, November 22, 2016) the Bankruptcy Court said yes, under some circumstances. In that case the homeowners filed a Chapter 13 case in 2007. They successfully completed their Chapter 13 plan in 2012 and received a discharge. Subsequently, the husband lost his job and the homeowners fell behind on the mortgage payments. The husband found another job and they filed another Chapter 13 case in 2014 to save their house, but then the husband lost his new job in August of 2016 and their Chapter 13 case was dismissed. Once again the homeowners fell behind on their mortgage payments.

After the dismissal, the husband found another job, and the homeowners filed a third Chapter 13 case on October 12, 2016. The mortgage creditor objected to the homeowners’ third Chapter 13 bankruptcy case, arguing that it was filed in bad faith and the foreclosure on the house should proceed. The homeowners argued that their circumstances had changed and that they had filed their third Chapter 13 case in good faith and would be able to make their plan payments and complete their plan. The Court agreed, finding that the homeowners were now both employed and their income was greater than it was when they successfully completed their first Chapter 13 plan in 2012. Thus, the homeowners were allowed to proceed with their third Chapter 13 case and the foreclosure on their home was stopped.

This result was based on the facts of this particular case and may not apply in all cases. However, under some circumstances, it is possible to successfully file a Chapter 13 to stop a foreclosure after dismissal of a previous Chapter 13 case. If you are considering a Chapter 13 bankruptcy as an option, contact Columbus, Ohio lawyer, Mina Nami Khorrami, for a free initial consultation to discuss your case in more detail.