Consumers who are facing excessive debt have several opportunities for settlement. Perhaps the most simplistic of these opportunities is bankruptcy. With this choice, the consumer has the option to acquire a new payment plan or undergo liquidation. However, before they can make a choice about these options, they must discover if they qualify.
The Minimum Requirements
To file for bankruptcy, the consumer must meet the eligibility requirements. For chapter 13, all consumers in Montgomery County must have an income that is above $40,156. This is the county’s median income. However, if the consumer’s income is below this value, they qualify for Chapter 7 in Dayton OH only.
Credit Counseling Programs
After the consumer is approved for their chosen bankruptcy case, they must enroll into a credit-counseling program. The program must be a state-approved course. In some areas, the consumer will return to these courses after the bankruptcy to learn how to rebuild their credit.
How Chapter 7 Works
The consumer must provide title and deeds for all properties included into the bankruptcy claim. Through liquidation, the property and assets are sold. A trustee is assigned to the case to manage these acquisitions and ensure that the funds are distributed to the creditors.
All properties included in a bankruptcy claim have designated exemptions. The exemption applies if the consumer owes more for the item than they have paid so far. Any exempted values are returned to the consumer after the bankruptcy case concludes.
Discharged Debts and Values
Any debt that the court discharged is finalized at the end of the case. This indicates that the consumer is no longer obligated to pay the debts. They won’t face penalties or late charges. The consumer could request that the creditor remove the debt from their credit history.
Chapter 7 in Dayton OH presents consumers with a less complicated way to settle their debts. With this option, they provide the necessary documents to the court and a trustee manages everything. These cases take up to six months to complete. After this time, most consumers are completely debt-free. To learn more about these processes, contact an attorney today.