The Basics of Chapter 7 And Chapter 13 Bankruptcy In Dayton, Ohio
When financial problems occur in your life and you are unable to pay your debts you may be able to find relief through filing for bankruptcy in Dayton, OH. For most people there are two different bankruptcy options to consider, a Chapter 7 or a Chapter 13 bankruptcy. They are different with different requirements to qualify so working with a bankruptcy attorney is important.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy in Dayton, OH is the type of bankruptcy most people think about when they hear the term. It is also called a liquidation bankruptcy since your eligible or non-exempt assets will be sold and the proceeds used to settle your debts with creditors. In most cases these will be unsecured debts such as credit cards and personal loans not backed by collateral.
However, there is a means test that you have to pass to be able to file for Chapter 7. Since this type of bankruptcy only repays part of your debt, often just cents on the dollar to creditors, you have to be able to show that you have no way to begin to repay your debts through other options.
Most people that qualify for a Chapter 7 bankruptcy in Dayton, OH have very little income and very few assets. If you are eligible to file your attorney can advise you of the non-exempt assets that you will keep. Typically you will be able to keep your home and some of your personal effects needed to be employed.
Chapter 13 Bankruptcy
If you have monthly income that exceeds your debts and you have assets of value you will most likely qualify for Chapter 13 bankruptcy in Dayton, OH. This is like a restructuring of your debts to allow you to make payments to catch up and pay off your debts over a set period of time. A trustee is appointed to your case to set up a payment plan and ensure that payments are made to the creditors as per the bankruptcy agreement.
Unlike Chapter 7 bankruptcy in Dayton, OH you will keep all your assets and the trustee will not sell them to pay off debt. In addition you will usually repay 100% of the debt plus keep current through your bankruptcy plan.
To learn more about your options for bankruptcy in Dayton, OH visit us. We can be found online at Newstartohio.com.