People often assume long-term debt because they believe their income will increase over time. They might agree to high monthly mortgage payments and use their savings to pay it for the first few years. After that period, they assumed they would get a promotion or new job, which would pay a higher salary. Unfortunately their assumptions were wrong, and they were fired. With no more savings, it’s hard to pay the hefty mortgage and all of their other bills. In just a few months, they find they can no longer pay those monthly bills. It’s time for them to hire a Bankruptcy Lawyer Piqua OH.
It’s normal for people to be embarrassed about declaring bankruptcy. They may be so upset they don’t even know how much they owe. Prior to meeting with a Bankruptcy Lawyer Piqua OH, the debtor does have to make a list of all of their debts. They are not allowed to pick and choose which debts are included in a bankruptcy filing. It’s also necessary for them to list all of their sources of income.
Income determines whether they can use Chapter 7 or Chapter 13 to file for bankruptcy. In order to automatically qualify for Chapter 7, the debtor’s income must be less than the Ohio median income. Chapter 7 allows a bankruptcy trustee to sell off all of the debtor’s non-protected assets. A Bankruptcy Lawyer Piqua OH, ensures no protected assets are sold. The proceeds are then distributed to the creditors. It takes between three and six months to complete. Once the sale proceeds are distributed to to creditors, the remaining debts are forgiven.
When a debtor makes over the median income in Ohio, the bankruptcy court usually assumes they can afford to pay off some of the debt. In a Chapter 13 filing, the bankruptcy trustee reviews the debtor’s monthly bills and income. The debtor is then put on a strict budget. The money that remains each month is used to pay the creditors. The bankruptcy court can keep a debtor on a repayment plan for up to five years. If the debtor fails to make even the last payment, none of the remaining debt will be forgiven.
A person who can no longer meet their financial commitments should contact Shipman Dixon & Livingston Co. L.P.A. Piqua, OH to learn more about the bankruptcy process in Ohio. Visit www.sdlattorneys.com for more information.
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