How Do I Qualify for Bankruptcy in Fairfield County, Ohio?
Millions of Americans struggle to repay debts such as student loans, medical expenses, and credit cards. In fact, it's estimated that the average American household carries $38,000 in debt. For people drowning in debt, bankruptcy can provide a fresh start.
Wood & Brewer in Ohio has extensive experience dealing with Chapter 7 and Chapter 13 bankruptcy cases. To determine which bankruptcy is the best option, contact the firm to schedule a free consultation.
Chapter 7 Bankruptcy Eligibility in Fairfield County, Ohio
In Chapter 7 bankruptcy, a trustee may liquid the filer's non-exempt assets and pay a percentage back to creditors. In most cases, no assets are liquidated.
A means test is also required to determine eligibility to file Chapter 7. If the filer's income is below average for a family or individual in Ohio, they can file Chapter 7. If the income is too high, they may still qualify for Chapter 7 based on the circumstances.
There are some circumstances in which means testing isn’t necessary. People in the following situations are exempt:
1. Disabled veterans.
2. National Guard and on active duty for at least 90 days.
3. People with most of the non-exempt debt, such as taxes and business expenses.
When Chapter 7 bankruptcy isn't an option, Chapter 13 bankruptcy is worth considering.
Chapter 13 Bankruptcy Eligibility
Chapter 13 is an option for people with a steady income and unsecured debts of less than $360,475. Secured debts must also equal less than $1,081,400.
These amounts are based on the current cost of living and are occasionally adjusted. Speak with a bankruptcy lawyer to learn the most recent figures for Ohio.
Credit counseling is a mandatory step in filing Chapter 13. The counseling must take place within 180 days before filing bankruptcy.
Chapter 13 and Assets
Chapter 13 allows filers to keep their assets. Instead of selling assets, a payment plan is created to repay debts. The amount paid depends on income minus monthly living expenses.
Chapter 13 is often preferred because it offers asset protection. There's no threat of foreclosures or repossessions.
The Importance of an Ohio Bankruptcy Lawyer
Wood & Brewer are bankruptcy lawyers ready to aid Fairfield County, Ohio residents. Chapter 7 and Chapter 13 bankruptcy can get complicated. So, it helps to have legal assistance every step of the way. Contact Wood & Brewer for bankruptcy help today.