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.
