Facts About Chapter 7 Bankruptcy in Hamilton OH

April, 2014 by

In today’s uncertain economic climate, more people than ever are finding themselves in financial peril. Company downsizing, rising interest rates, and stagnant wages are just a few of the reasons why people end up owing more money than they have coming into their households. Being in debt can have serious repercussions in a person’s life such as divorce and repossessions. To keep this from happening, many people file for a legal status known as Chapter 7 Bankruptcy in Hamilton OH. Article I, Section 8, of the United States Constitution give Congress the power to pass bankruptcy laws that are fair and uniform in nature. Chapter 7 Bankruptcy is one of the sections of the Bankruptcy Code, which was codified in 1978. The goal of any chapter of bankruptcy is to give a debtor a fresh financial start.

Chapter 7 Bankruptcy in Hamilton OH provides for a person to liquidate certain assets to pay his debtors all or a portion of what is owed to them. This is the more traditional form of paying off debts. The remaining debts are wiped off a person’s record. Whether a person can file for this legal status depends upon his income. If a person makes more than the Ohio’s median income, he may still be eligible for Chapter 7 bankruptcy if he can pass a stringent means test.

In Ohio, there are certain assets that are exempted from the bankruptcy process. These include a motor vehicle valued up to $3,450; personal items such as clothing, shoes, and appliances; and real or personal property valued up to $21,625. The length of time a person has to repay their debts depends upon income. The maximum time allowed is typically 60 months for people that qualify.

A debtor will need to provide the bankruptcy court with certain documents. These include a current schedule of assets and liabilities; a statement of financial affairs; and a statement of current income and expenditures. A bankruptcy attorney knowledgeable of the most current bankruptcy laws can help a person decide which other documents are needed to file for bankruptcy. To garner more information, please visit website.

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