Bankruptcy in Springfield, Ohio can be a bit more demanding and strenuous than in other areas of the county because the state grants fewer exemptions. Regardless of this fact, Ohio’s bankruptcy rate is the eighth-highest in the United States. When filing, you have two options. A Chapter 7 (or Straight) Bankruptcy can absolve you of all debt, while a Chapter 13 (personal reorganization) will mandate monthly payments, for a set period, to the court. In this instance, the court will distribute funds to your creditors, but typically only up to a certain portion. After a defined period of payments, creditors are required to consider the balance paid.
When filing bankruptcy in Troy, Ohio, in order to begin the process, you will need a list of your creditors and a copy of your credit report. You will also need to work with a credit counselor within six months of filing bankruptcy in Ohio. Moreover, be prepared to provide at least six months of income and expense documents. The court uses this information to determine the type of bankruptcy you qualify for. Finally, create a comprehensive list of all your assets: home, car, investments. Some items are considered exceptions, and you will need to consult with a Troy, Ohio bankruptcy attorney.
Your bankruptcy attorney will ensure the paperwork is properly filled out and filed with the court. While having an attorney will cost you money, they provide the peace of mind that your bankruptcy is done correctly. In many cases, if you have the ability to pay $10,000 or more, over the next five years, then the court will require a Chapter 13. This means your debts will not be discharged, and you will need to repay at least some of your debt. It is the court that will decide the percentage you will pay to each creditor. The court will tell you how much you owe and garnish your wages, then distribute that money accordingly.
What haven’t we covered yet that is important to you? If you would like to talk about how to file bankruptcy in Troy, Ohio, or need more information, please contact us.