Life During Bankruptcy in Franklin County, Ohio
Filing for bankruptcy can be an intimidating and stressful process, but knowing what to expect will help to put your mind at ease. Your first step should be to consult with trusted lawyers, like the team of Wood & Brewer, on your situation. Then, your legal team will support you and keep you informed throughout the proceedings.
One of the most important steps in the bankruptcy process is providing a list of all of your debts to the court. This includes secured debt, which is backed by collateral, and unsecured debt, which is not. The court usually prioritizes secured debt because they can claim the property being used as collateral, such as your home or car. You and your lawyer will also review all of the assets that are still in your possession.
Before filing for bankruptcy, you're required to attend a credit counseling program with a provider approved by the U.S. Trustee Program. Your credit counselor will assess your financial situation, discuss bankruptcy and its alternatives, and help you create a budget.
When you're in the middle of bankruptcy proceedings, there will be restrictions on obtaining new lines of credit. You can only open a new account under very specific circumstances, so you should consult with your attorney before submitting any applications.
Some of your assets may become part of the bankruptcy estate, which is used to make payments to creditors. A portion of your annual tax refund may be added to your bankruptcy estate and used to pay your debt.
Changes in Income
Income is a major factor in your bankruptcy case. If you have a significant increase in your income in the midst of the court proceedings, it could affect your repayment plan or your eligibility for bankruptcy. If you experience a loss of income, your payments may also change. Reporting changes of income as soon as they happen is essential.
Life during bankruptcy in Franklin County, Ohio may feel difficult, but the process will ultimately help you get back on your feet. Transparency about your finances is essential at every step of the process. If you have any questions or concerns about what to expect, consult with an Ohio bankruptcy attorney about your circumstances.