Bankruptcy is a honorable solution to the problem of debts that you cannot pay, and to relieve yourself and your family of threatening phone calls and nasty letters. Bankruptcy is a way to have your debts discharged meaning you do not have to pay them. Of course, there are caveats to be considered. In order to claim Bankruptcy you must meet certain criteria.
However, you need to set down with the Bankruptcy Attorney in Dayton Ohio and review your complete financial picture with him. This includes your income, your assets, any valuables that have meaningful equity, and the value of your home and how much you owe on it.
Many people believe that a Chapter 7 Bankruptcy filing will wipe away all of their debts, and this is largely true. However, if you have an antique car worth $25,000, you will likely be forced to sell it to satisfy a debt.
The Bankruptcy process starts with your attorney filing a petition which lists all of your debts and assets. Then your case is assigned to a Bankruptcy Trustee who will oversee the disposition of your petition. He will be looking for assets which you do not need and which can be sold to liquidate a debt. He has the final say in this matter although your attorney can take the matter to a judge for a final decision.
You must meet a certain income criteria for a Chapter 7 filing which your attorney will explain to you. If your income is above the level for a Chapter 7, then you will be forced to file a Chapter 13 which means that you will be put on a payment plan to liquidate as much of your debts as you can in 3 years.
Chapter 7 filings will have a Hearing where the creditors, the trustee, your attorney and you attend. Generally, none of the creditors attend. After this Hearing your debts may be completely discharged. However, some obligations cannot be eliminated such as child support payments, tax liens, student loans, and your mortgage will not be discharged. You may be allowed to forestall foreclosure by making a payment arrangement. Your home cannot be foreclosed upon while you are in the Bankruptcy process.
The best plan is to tell your Bankruptcy Attorney in Dayton Ohio everything up front and let him work to help you.
