How do I Qualify for Bankruptcy in Ohio?
Bankruptcy is a financial safety net that can help our clients escape crushing debt. If you’re struggling under the weight of personal or business debts, bankruptcy can help get your life back on track and prevent accumulating more financial troubles. Several types of bankruptcies are available to individuals and companies. Each bankruptcy has specific eligibility requirements, rules, procedures, and benefits. Seeking advice from a bankruptcy attorney is advisable before filing for bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is sometimes referred to as the “liquidation bankruptcy” where our clients can eliminate some or all debt. A Chapter 7 can discharge credit card debt, medical bills, and personal loans. To qualify for a Chapter 7, our client needs to pass the “Means Test” calculation (which is based on household size, income, and expenses). If you have filed a previous bankruptcy, our attorneys can advise if sufficient time has passed to be able to file a Chapter 7. There are certain clients that will not be required to undertake the Means test (for example, clients with more business debt than personal debt and disable veterans).
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows our clients to combine their debt into a manageable monthly payment over a period of three to five years. Any debt not repaid within the Chapter 13 plan will be discharged (with certain exemptions such as some tax debt and student loans). If a client does not qualify for a Chapter 7 bankruptcy, a Chapter 13 is often a very helpful path.
Bankruptcy can be a life-saving measure for our clients to deal with financial stress. If you are financially unstable and cannot see a way out of your current situation, we are hopeful you will consider filing for bankruptcy. Filing for bankruptcy can help you resolve outstanding debts, give your family a fresh start, and get your financial life back on track.