Drowning in Debt? A Bankruptcy Lawyer in Hamilton, OH can Help

by | Jan 27, 2015 | Lawyer

Many Americans can’t pay their monthly bills and are ashamed to admit it. Often, a person got sick and was out of work for several months. They thought they could get caught up once they recovered. However, there are too many outstanding bills for them to pay. Because of their health, they aren’t able to take a second job to bring in more money. Individuals in this type of situation should speak with a Bankruptcy Lawyer in Hamilton OH, to help them recover their financial health. The sooner they do this, the more assets the lawyer will be able to protect.

There are two ways a person can declare personal bankruptcy in the United States. Under Chapter 7, the court will sell off all of the debtor’s assets to pay debts. The profits will be split among the creditors. Any remaining debt will be forgiven. This process takes about three months. Chapter 13 is a debt repayment plan. The debtor is expected to live on a tight budget and pay creditors a certain amount each month. The court can require them to do this for up to five years. At the end of that period, any remaining debt will be forgiven.

Most people want to use Chapter 7. Recent changes in Federal law have made that more difficult. Only people making less than the median income in their state are permitted to automatically use Chapter 7. People who make more than that can file for a hardship exemption. If they are unable to pay at least $100 every month to their creditors, the bankruptcy judge may allow them to file for bankruptcy using Chapter 7.

Regardless of the type of bankruptcy used, debtors have to understand not all debt is included in the bankruptcy process. Student loans and taxes will not be discharged as part of a bankruptcy process. Neither will wages owed to workers, alimony, or child support payments. If all other debts are discharged, the debtor may be able to pay these bills more easily. Their Bankruptcy Lawyer in Hamilton OH, will review their finances and determine if bankruptcy will make them solvent. If not, he may have to get the IRS to agree to a payment plan and work out other debt solutions. Debtors can Visit Dean Snyder Attorney to learn more about the options available.


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