When credit was easy to obtain, some people in Dayton, Ohio bought houses they can no longer afford. Despite their best efforts, they cannot pay their mortgage and the remainder of their bills. Bankruptcy Attorneys in Dayton Ohio can meet with them to assess their situation. They will explain to the debtor which debts can be forgiven within the bankruptcy process. Student loans and child support are two debts that cannot be included in a bankruptcy petition. In addition to credit cards and medical bills, past due rent and utility bills can be included. The debtor must bring their income tax returns and a list of all of their debts.
A debtor’s income determines if they qualify for using Chapter 7 to file for bankruptcy. Changes to the federal bankruptcy law mandate that only people who make less than the median income for their state can use Chapter 7. If a person makes more than the median income, they have to prove they have a hardship to use Chapter 7. Otherwise they must use Chapter 13. Most debtors prefer Chapter 7. It only takes three to four months to complete and the person is free to start their life over. Chapter 13 can take up to five years to complete. During that time the debtor must live on a court-imposed budget. Any earnings over the budget are taken each month and distributed to creditors.
Once Bankruptcy Attorneys in Dayton Ohio determine that a debtor qualifies for Chapter 7, they file for bankruptcy with the court. When the debtor files for bankruptcy, he loses control over most of his assets. The court appoints a trustee who is charged with selling the debtor’s assets and paying the creditors with any profits. Before the sale can take place, the trustee has to hold a meeting to give the creditors a chance to be heard. The debtor is required to attend. Their lawyer can go with them. Very few creditors take the time to participate. Once the sale has been held and the profits dispersed, the debtor is free to restart their life. Thompson & DeVeny Co. LPA is one of the law firms that provides bankruptcy representation in Dayton. Debtors can contact them for help.
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