People who can’t pay off the money they owe sometimes consider filing for chapter 7 bankruptcy in Hamilton, OH. While this can be the right solution for some people, there are other alternatives that should be considered as well. It may be best to Meet R. Dean Snyder Attorney to discuss your individual situation and the pros and cons of each alternative.
Chapter 7 Eligibility
Some people make too much money to qualify for chapter 7 bankruptcy in Hamilton, OH. Those with an income that is more than the median income for the state need to pass a means test to show that they aren’t trying to abuse the system. Also, the person filing for bankruptcy must have taken an approved credit counseling course within the last 180 days and must not have had another application for bankruptcy dismissed by the court within that same time frame.
The Basics
When a person files for chapter 7 bankruptcy, they should do so with the understanding that, with the exception of certain exempt assets, their property will be sold and the proceeds used to pay off as many debts as possible, after which all but the nonexempt debts will be cleared. They’ll need to give the court a detailed list of all their income, all their debts, and all their living expenses. During the bankruptcy case, most creditors will need to stop contacting the debtor and trying to collect the debt.
Other Alternatives
It may be better for some people to file for a chapter 13 bankruptcy in which a trustee determines a payment plan for the person to follow to get the majority of their debts either paid off or discharged over the course of about three to five years. This type of bankruptcy often allows people to keep their home and protect any cosigners of their debts. It may also be possible to arrange for payment plans and reductions in interest rates with creditors outside of filing bankruptcy that make it easier to just pay off the debt. This may help a person maintain a higher credit rating than having a bankruptcy on their record.
