Financial problems and overwhelming debt can happen to anyone throughout their lifetime because of illness, injury, the loss of a job, divorce, or excessive spending. This overwhelming debt could trigger foreclosure on a home or repossession of a car. In order to eliminate the debt an individual has, they should contact an attorney who can help them with Bankruptcy in Fairfield OH.
Bankruptcy is a legal method for an individual to gain the financial freedom they need and stop harassing creditor calls, repossession of their car and bankruptcy proceedings. Paying the minimum payment on a debt or skipping payments will on cause the debt to increase. Once a bankruptcy is discharged, an individual will no longer owe the debt to the creditors.
Will An Individual Have To Sell Everything They Own?
An individual will be given exemptions to their bankruptcy proceeding. There will be various items that will not be included in the bankruptcy that they might be able to retain. Individuals who are eligible to file Chapter 7 bankruptcy will have any remaining assets sold by a trustee who is appointed by the bankruptcy court to pay off their debt.
Chapter 7 Bankruptcy
Chapter 7 is a complete liquidation of any assets that are not exempt from the bankruptcy filing. If an individual has a limited amount of income, a lot of unsecured debt, or excessive medical bills, this type of bankruptcy should probably be chosen. Chapter 7 bankruptcy is usually concluded with three months from the filing date.
Chapter 13 Bankruptcy
If an individual owns a home, car, and other assets, this type of bankruptcy may allow them to retain them. Chapter 13 bankruptcy is a restructuring of an individual’s debt. The bankruptcy court will approve a three to five-year repayment program for their debt. After all of the payments are complete, the Bankruptcy in Fairfield OH will be discharged, and the individual will be able to retain their assets.
There are certain debts that you will not be able to discharge in a bankruptcy proceeding, such as child support, alimony, student loans, and certain taxes. For more information, please feel free to contact Dean Snyder Attorney.