A Path Out of Debt — and the Right One for Your Situation
Bankruptcy is a legal tool, not a personal failure. At Mahaffey & Associates, we help individuals and families in the Toledo area understand their options, choose the right path, and move through the process at the U.S. Bankruptcy Court for the Northern District of Ohio with a team that has handled these cases for over two decades.
The Moment You File, the Pressure Stops
When a bankruptcy petition is filed, federal law triggers what is called an automatic stay. That single filing immediately halts most collection calls, wage garnishment, repossession actions, and foreclosure proceedings. Creditors are legally required to comply. If the collection calls have been relentless and the financial pressure feels impossible to escape, this is often the first real relief our clients experience — and it begins the day we file.
Chapter 7 vs. Chapter 13: Which Path Applies to You
Most people arrive without knowing which type of bankruptcy fits their situation. Here is a plain-language comparison.
Chapter 7 — Discharge and a Fresh Start
Chapter 7 is a liquidation bankruptcy. Qualifying unsecured debts — credit cards, medical bills, personal loans — are discharged entirely. Most Chapter 7 cases resolve in three to six months. To qualify, your income must fall below a threshold set by the means test. For many clients in financial crisis, Chapter 7 is the fastest route to a clean slate.
Chapter 13 — Reorganization and a Repayment Plan
Chapter 13 allows you to keep assets you might lose in Chapter 7 — including a home you want to save from foreclosure — while restructuring your debt into a manageable three-to-five-year repayment plan. It requires regular income and a commitment to the plan, but it also provides a structured path that many clients find improves their financial footing over time.
Wage Garnishment
Wage garnishment means a creditor has already won a court judgment against you and is now collecting directly from your paycheck. Ohio law limits how much can be taken, but even the legal maximum can make it impossible to cover basic expenses. Filing for bankruptcy triggers an automatic stay that stops garnishment, giving you breathing room to address the underlying debt on your own terms.
What Bankruptcy Actually Does to Your Credit
This is the concern we hear most often, and it deserves a direct answer. Yes, bankruptcy affects your credit. But for most clients who are already behind on payments, accounts in collections, or facing judgment liens, the damage has already begun. What bankruptcy does is stop the accumulation and give your credit a defined starting point for recovery. Most clients begin rebuilding within months of discharge. The question is not whether bankruptcy affects your credit — it is whether your current path is doing more damage than a fresh start would.
Is Wage Garnishment Driving You to Look at Bankruptcy?
That is a common pattern. Many clients first contact us because a creditor has begun garnishing their wages, and they want to know how to stop it. Bankruptcy is often the answer — because the automatic stay halts garnishment immediately upon filing. If you are already losing a portion of each paycheck to a creditor, a bankruptcy consultation may be the most practical next step you can take.
What to Expect When You Work With Us
Step 1:
A Free Initial Consultation
We review your income, debts, and assets to determine whether Chapter 7 or Chapter 13 is the right fit — and whether bankruptcy is even the most appropriate option given your circumstances.
Step 2:
Document Preparation and Filing
We prepare your petition and all required schedules, walk you through the mandatory credit counseling requirement, and file your case with the U.S. Bankruptcy Court for the Northern District of Ohio in Toledo.
Step 3:
The Meeting of Creditors
Most clients attend a short meeting — typically 10 to 15 minutes — with a bankruptcy trustee. We prepare you for this in advance so there are no surprises.
Step 4:
Discharge or Plan Confirmation
In a Chapter 7 case, eligible debts are discharged and the case closes. In a Chapter 13 case, the court confirms your repayment plan and you begin making structured payments. We remain available throughout.
Mahaffey & Associates is a federally recognized debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
A free consultation costs you nothing and gives you a clearer picture of where you stand. Call us at 419-829-2255, use our online contact form, or stop by our office in Sylvania. Evening and weekend appointments are available.
Bankruptcy Questions We Hear Every Day
Will I lose everything I own if I file for bankruptcy?
Most clients do not. Ohio bankruptcy exemptions protect a significant portion of your home equity, vehicle, retirement accounts, and household goods. In a Chapter 7 case, we identify which assets are exempt before filing. Chapter 13 is specifically designed to let you keep non-exempt assets in exchange for repaying a portion of your debt over time.
How long does the bankruptcy process take?
Chapter 7 typically resolves in three to six months from the date of filing. Chapter 13 involves a three-to-five-year repayment plan. The timeline depends on your case type, the completeness of your documents, and the court's schedule at the U.S. Bankruptcy Court for the Northern District of Ohio.
Can I file for bankruptcy if I have a regular income?
Yes. Chapter 13 is specifically designed for people with regular income who want to reorganize their debt rather than discharge it outright. Chapter 7 eligibility depends on passing the means test, which compares your income to the Ohio median. We assess both options during your free consultation.
What debts cannot be discharged in bankruptcy?
Certain obligations survive bankruptcy regardless of the chapter you file under. These typically include child support, spousal support, most student loans, recent tax debts, and debts arising from fraud or intentional wrongdoing. We will identify which of your debts are dischargeable before you make any decision.
How soon can I start rebuilding credit after bankruptcy?
Most clients can begin rebuilding credit within months of discharge. Secured credit cards and credit-builder loans are common starting points. Chapter 13 clients often see gradual improvement throughout the repayment period as they demonstrate consistent payment behavior. Bankruptcy marks a defined starting point — not a permanent ceiling.
Our criminal defense attorneys know these courts, these charges, and what it takes to fight for a fair outcome. If you or someone you care about has been charged with a crime in Toledo or the surrounding area, call us at 419-829-2255 or use the form below to schedule a free consultation. One call can change what happens next.
Ready to Understand Your Options?
Our attorneys serve clients throughout Toledo, Sylvania, and the surrounding Lucas County communities. The consultation is free, the conversation is confidential, and the goal is simple: help you understand what your options actually are so you can make a clear decision.
Our practice areas.
We approach every legal matter with a broad perspective and a sharp focus, integrating insights across our practice areas to deliver unparalleled results for our clients.
"Stephen is an asset to our company. He skillfully reviews and negotiates multimillion-dollar contracts, he artfully drafts subcontracts and leases, and he has successfully represented us in court and before municipal boards. He is an accomplished lawyer that is always there when we need him. He is our confidant and friend."
Furino & Sons Inc. (Brothers Four)
"It is truly our pleasure to recommend Stephen to any individual or corporation looking for highly skilled legal counsel. He has represented us on a variety of corporate legal matters and he is a master with both contract and lease negotiations, always offering exceptional strategic advice. More recently, he represented us in front of the Township Planning Board and helped us achieve our desired results when it seemed impossible. We highly endorse Stephen both personally and professionally."
HEC Holding Co., LLC
"Stephen has successfully represented our company’s interests in several matters involving intricate fact patterns and novel legal theories. In one, a particularly aggressive plaintiff was convinced by Stephen to voluntarily dismiss a lawsuit in which it sought significant monetary damages. These favorable outcomes have resulted from Stephen’s thorough and careful review of all facts and circumstances and his dedication to the best interests of his client. In every matter in which we have retained Stephen he has sought to obtain the best possible result in the shortest possible time. We recommend Stephen without reservation."
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What sets your approach apart?
Our attorneys combine academic rigor, industry leadership, and a deep understanding of complex legal landscapes to deliver strategies uniquely tailored to each client.
How do you handle intricate legal challenges?
We thrive on complexity, leveraging decades of experience to uncover solutions others might miss. Every case is approached with precision, diligence, and creativity.
What kind of communication can clients expect?
We prioritize direct and consistent communication, offering clear updates and actionable insights throughout the legal process, so you remain confident and informed.
How do you approach long-term legal partnerships?
We build enduring relationships by aligning with our clients’ long-term objectives, acting as trusted advisors who guide and support through every phase of their ventures.
What can I expect during my consultation?
Your initial consultation will involve an in-depth discussion of your goals and challenges, allowing our attorneys to outline tailored strategies and next steps. See below for a typical process cadence.
