In Ohio, consumers acquire debt relief through bankruptcy, which helps them to settle a large volume of debt quickly. Consumers with excess assets or properties may find a better solution through liquidation, and chapter 7 bankruptcy provides this solution.
Why the Consumer Can’t File Chapter 13?
Consumers must meet eligibility requirements for all chapters of bankruptcy. They qualify for chapter 13 by having an income greater than the median for Ohio, which is $46,645. Any income below this value makes the consumer eligible for chapter 7 only.
A chapter 7 bankruptcy is the liquidation of the consumer’s assets. The court assigns a trustee to the case, manage the title transfers and the sale of each item, and they distribute the funds to the consumer’s creditors.
What Do Consumers Need for Their Claim?
The consumer needs to gather at least six months of financial records and they must consist of all income sources including wages, child support and alimony payments. The attorney needs these documents to identify an accurate annual income for the consumer.
They submit all titles and information for property and assets to the court, which then determines what items are sold and which generate the higher value to settle their debts. The consumer’s primary home is excluded in most cases.
What to Expect During the Case
The consumer receives any exempted value assigned to the property or assets and the remaining portion of the funds are used to settle debts. The consumer must settle any debts that weren’t included in the claim, like discharged debts such as unsecured credit card accounts.
Protecting the Home
The bankruptcy option lasts up to six months to complete. The automatic stay applied to the consumer’s mortgage provides protection against foreclosure, and it lasts the full duration of their case.
Chapter 7 bankruptcy in Ohio helps consumers to settle their debts and could help them to achieve better management of their finances. It could also help consumers with major credit issues to start over. Those who wish to start a bankruptcy claim visit Thompsonanddeveny.com for further details about these opportunities.
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