What is Chapter 7 Bankruptcy in Hamilton, OH?

January, 2014 by Alma Abell

Did you know that when you decide to file bankruptcy you also have to decide what kind of bankruptcy you are going to file? Most people know a little about the process of filing bankruptcy, but they really don’t know the fine details. In fact, most people are surprised to learn that there are different kinds of bankruptcy. Technically, there are three different kinds of bankruptcy. However, unless you are filing bankruptcy on behalf of your business, you would end up filing Chapter 7 Bankruptcy in Hamilton, OH or Chapter 13.

How Do You Choose?

Most of the time, a legal representative such as a Dean Snyder Attorney will recommend trying to file Chapter 7 if you have a lot of debt. This is because Chapter 7 Bankruptcy in Hamilton, OH is the only way to get your slate wiped clean. With the exception of any secured debts you might have, Chapter 7 wipes away all the other debts. The only issue with Chapter 7 is the fact that you might lose some of your valuables. This type of bankruptcy is also referred to as straight or liquidation bankruptcy because the court will seize valuable assets or property in order to liquidate them and pay back some of the money that you owe to the various creditors.

Chapter 13 Bankruptcy

Chapter 13, on the other hand, is about committing to a repayment plan. Chapter 13 is ideal for someone who does not have that much debt and a decent job. The bankruptcy court judge will help you establish a 3 to 5 payment plan so you can pay back your debts without having to struggle financially. They will help you set up a plan that works with your income and your current bills.

There really is not a wrong or right answer when it comes to filing bankruptcy. It is about what you qualify for and what you want to do. Do you want to just start over even if it means losing your house or a car; or do you want to spend the next 3 to 5 years paying off your debts?

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