When circumstances make it impossible to honor outstanding debts, the only practical thing to do is file for personal bankruptcy. When talking with a bankruptcy lawyer in Hamilton, OH, the client will learn there is more than one form of bankruptcy to consider. With the aid of legal counsel, it is possible to determine which approach is best.
Opting for a Chapter 7 Bankruptcy
The first approach that the bankruptcy lawyer in Hamilton, OH, will address is known as a chapter 7 bankruptcy. Clients who meet the current legal requirements for this type of protection can be out of debt in a matter of months. The process may involve surrendering some assets to a court-appointed a trustee who will arrange to sell them. The proceeds from the sale will be distributed to the creditors identified in the bankruptcy action. Any remaining debt is discharged by the court.
Keep in mind that not all assets are eligible for sale. For example, the car used by the debtor to get to and from work would not be sold. The same is true for the home that the debtor occupies. Additional real estate or any type of pleasure vehicles could be sold to partially settle the outstanding debt.
Considering a Chapter 13 Bankruptcy
Not everyone meets the criteria for a chapter 7 bankruptcy. Since some debts cannot be discharged as part of that form of bankruptcy, the lawyer is likely to recommend filing for chapter 13 protection. This approach places the debtor under the protection of the court and allows for repaying the debt over a period of three to five years. Any debt remaining at the end of the five-year period is discharged. Typically, debts classed as the priority are settled first, then any unsecured debt is resolved.
When it is no longer possible to pay off outstanding debt, the best move is to find out if bankruptcy is an option. Meet R. Dean Snyder, Attorney today and find out what type of bankruptcy protection would be in the best interests of the client. Bring along information on assets, income, total debts, and anything else that has bearing on the client’s financial situation. Together, it is possible to come up with a solution and get back on track.