Understanding the Process of Bankruptcy in Dayton, OH

Understanding the Process of Bankruptcy in Dayton, OH

The economy is pretty stagnant these days,which makes it really easy for people to fall behind on bills. Getting behind on the mortgage and car payment can lead to repossession and foreclosure. Bankruptcy is one way to claim a fresh financial start. The arrears on certain bills can be tacked onto the total owed and the payments can be made through the bankruptcy. However, the current payments must be made.

If you are interested in bankruptcy in Dayton, OH, visit visit Newstartohio.com. The website contains answers to many consumer questions. For instance, if you are not sure about what bankruptcy to file, you should know that chapter 7 is a liquidation bankruptcy and there are income requirements. The filer must not make enough money to repay their debts. Instead, the bankruptcy court sells off assets and repays creditors. Many assets are exempt depending on where the filer lives. The bankruptcy lawyer informs clients that the process is not easy. Further, a chapter 7 stays on the credit report for ten years. While, chapter 13 stays on the credit report for seven years.

On the downside, the information prevents people from getting new credit. Additionally, it can affect the ability to get a job. Nonetheless, the number of bankruptcy filings continues to grow. There were almost a million filed in 2014, four times more than in 1980. Some debts cannot be discharged when you file bankruptcy in Dayton, OH.

alimony/child support

some student loans

debts made after bankruptcy filing

money owed due to a personal injury caused by DUI

Chapter 13 remains the most popular consumer bankruptcy. In order to file, the debtor must have a steady source of income. The court appoints a bankruptcy trustee who looks at income and expenses. They come up with a monthly figure for the debtor to pay. Unfortunately, it will be a large portion of one’s disposable income. And, frugal living is necessary for a while. The trustee uses the monthly payment to repay creditors over three-to-five years. In the event the debtor falls behind, the bankruptcy may be converted to a chapter 7. The best thing about bankruptcy is the promise of a fresh start.

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