Debt can become overwhelming because of an illness, injury, loss of a job, or just because someone spent more than they could afford. Any of these things can contribute to a bleak financial future. An appointment with an attorney experienced in bankruptcy in Hamilton, OH could get someone’s financial future back on its feet. There are several types of bankruptcy but the type someone’s eligible for will be determined by their income and assets. The two most popular bankruptcy proceedings are chapter 7 and chapter 13. One bankruptcy is assigned a trustee and any assets that are not exempt will be sold. The other bankruptcy allows someone to keep their assets while paying back their creditors over a three to five-year plan.
Chapter 7 bankruptcy is a good choice for someone who has little or no assets (a lot of unsecured debt like credit card balances) and who has very little income to pay the debt. Chapter 13 bankruptcy allows a restructuring of the existing debt into a payment plan for a three to five-year period. At the end of the payment program, the balance of the debt will be forgiven by the creditors. This type of bankruptcy is for individuals who have a regular source of income enough to make the payments. Both types of bankruptcy require that the individual attend credit counseling through an approved agency. The certificate that shows they completed the program must be filed with the bankruptcy papers.
Bankruptcy does not mean that someone has financially failed. When the mortgage company and other creditors are constantly harassing someone for the payment they’re expecting, it can be very unsettling. Bankruptcy can stop the harassing phone calls and stop the foreclosure on a home or the repossession of a car. A chapter 13 repayment plan will be presented to the court that the judge will determine whether or not they accept from the debtor. Bankruptcy in Hamilton, OH can wipe away the years of financial problems someone has had and give them a fresh start. For more information on turning your financial situation around, click here for a free consultation.
