The first thing you should know if you are deep in debt and don’t see a way out is that bankruptcy is an option. Through bankruptcy, you might be able to eliminate most or all of your debts. Once they are discharged, you’ll never have to repay them. Most debts are eligible for discharge under Chapter 7 in Dayton OH, including credit card bills, second mortgages and medical debts. Depending on your current income and the value of your assets, you might be able to qualify for this kind of bankruptcy and never have to worry about those bills again.
Some people do not qualify for Chapter 7 bankruptcy. You can expect an attorney to do a means test before proceeding with your case. If you have sufficient income and assets to pay your debts, you may not qualify for Chapter 7 and you’ll have to use Chapter 13 if you still want debt relief. Chapter 7 in Dayton OH is only an option every 8 years. There is no limit to the frequency of Chapter 13 though, so you might be able to have some of your debts discharged that way. However, if you use Chapter 13 bankruptcy, you’ll probably be required to repay some of your debts through an extended payment plan.
There are some things you shouldn’t do if you plan to file for bankruptcy. Within a year of filing, you should know sell or give away significant assets. You should also not pay one of your debts while leaving the others in default. Finally, don’t accumulate more debt in the three months prior to your bankruptcy. Many creditors will dispute the discharge on the grounds that you had no intention of repaying. If they are successful, you will not be able to include that debt in your bankruptcy and will be responsible for it.
If you in serious financial trouble and need relief, consult with an attorney who focuses on bankruptcy law. Your attorney could give you advice that might help you avoid making common mistakes that can result in adverse actions during your bankruptcy case.
