Ohio residents should not be embarrassed because they need to file for Bankruptcy in Hamilton OH. If they can no longer afford to pay their monthly bills, federal and state laws provide a debt relief strategy. It’s important that people declare bankruptcy as soon as possible. That gives their attorney a better chance at protecting important assets such as their home and car. Some people wait too long and the attorney has to file an emergency bankruptcy to prevent a home foreclosure or wage garnishment. In these cases, he can help the debtor organize their tax and income records and file for bankruptcy the same day.
Federal laws were recently changed to limit who can file for Bankruptcy in Hamilton OH using Chapter 7. Only people who make under the median income for their state are automatically entitled to use it. If a person makes over the median income, they have to receive special permission to file under Chapter 7. Federal law requires people who make more money to use Chapter 13. Instead of letting a person liquidate their assets and walk way from their remaining debt, Chapter 13 requires them to make a larger effort to pay back their debts.
Once a person files for bankruptcy under Chapter 13, the court appoints a bankruptcy trustee to oversee the process. He will examine the debtor’s assets, income and expenses. He will the draw up a budget for the debtor to follow. Any money remaining at the end of the month will be paid to the creditors. This repayment plan can last up to five years. At the end of the repayment period, any remaining debt will be discharged. It’s important that the debtor has a bankruptcy lawyer who can make sure that the budget is fair and livable. While the bankruptcy program is in place, the debtor will not be allowed to use credit cards. He will also have to have permission to incur any debt over $1,000. If he fails to meet any monthly requirements, the remainder of his unpaid debt will not be forgiven. Debtors can Click here to learn more about the Chapter 13 bankruptcy process.
