Options for Declaring Bankruptcy in Hamilton, OH

Although it is not required for a person to seek legal help to declare bankruptcy, it is generally a wise idea. Debtors in the state of Ohio have the right to file for two types of bankruptcy. The type a person declares will depend on their financial situation. Meeting with an attorney before declaring bankruptcy in Hamilton, OH will allow individuals to better understand their rights and options as they go through the process.

Chapter 7 is often called the “straight bankruptcy” because it is fairly straightforward. Those declaring chapter 7 will have certain non-exempt assets liquidated to raise as much cash as possible so the owed debts can be paid off. Chapter 7 is generally considered the right option for those who have mostly unsecured debt, such as credit card debt and medical bills. This type is settled quickly and a notice of discharge is generally given within four months. The bankruptcy status will remain in effect for ten years on a person’s credit history.

There is also chapter 13 bankruptcy. This type of bankruptcy is often referred to as a “reorganization bankruptcy” because it restructures a person’s payment plan. When chapter 13 is in place, all creditors must cease and desist. This means they cannot pursue collection activity or contact the debtor. Chapter 13 can allow a person to avoid foreclosure and repossession. This type of bankruptcy allows an individual three to five years to pay off their debt and catch up any payments in arrears.

It is imperative a person files the right bankruptcy in Hamilton, OH. Working with an attorney will allow an individual to better understand their rights and options when it comes to declaring bankruptcy. An attorney can make the process much easier to go through and will ensure their client’s rights are protected throughout the process.

If you are in need of help with your mounting debt, an attorney can help. To learn more about the process of declaring bankruptcy, click here. A consultation appointment will allow you to meet with the attorney and discuss your financial status so you can make a sound decision on whether or not bankruptcy can help you.

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