Bankruptcy remains one of the hardest experiences a person can have. It is a complex process and requires experts to aid in making decisions and navigating the process of bankruptcy in order to achieve a positive result. The first decision that must be made is which type of bankruptcy should be filed: Chapter 7 Bankruptcy Lebanon Ohio or Chapter 13 Bankruptcy Lebanon Ohio. The two types are quite different, and an attorney should guide one through the decision making process when deciding which type to file.
The most common type of bankruptcy is Chapter 7; although, new laws have made it more difficult to file. This type of bankruptcy allows people to experience a “fresh start.” An appointed trustee liquidates all assets which are not exempt. Attorneys can aid clients in determining whether homes and vehicles can be exempt from liquidation. Those debts remaining after asset liquidation are discharged by the courts. This type of bankruptcy is means tested; families must meet financial requirements in order to qualify to file this type of bankruptcy. Chapter 7 bankruptcy usually takes less time than Chapter 13, but it stays on a person’s credit information longer.
If one is unable to file for Chapter 7 bankruptcy, Chapter 13 is the other option for personal bankruptcy. With this type of bankruptcy, debtors create a repayment plan with the help of a Bankruptcy Lawyer Lebanon Ohio. The debtor will have between three and five years to repay debts, and they will typically repay between thirty and fifty percent of the debt. Assets can generally be retained with this type of bankruptcy; although, debt must be partially repaid. This type of bankruptcy occurs when a person’s income exceeds that of the average family in the state in which he or she lives.
When considering bankruptcy, the wise debtor would consult a Bankruptcy Lawyer Lebanon Ohio. Without competent legal representation, the complex rules regarding bankruptcy will make the process extremely difficult. Knowledgeable legal minds can aid a family in choosing the route to take when seeking relief from financial troubles. Determining the type of bankruptcy is the first step in a complex process, and filers are strongly recommended to seek legal representation when filing bankruptcy.
