Based on the statistics from previous years, this year will see over a million non-business bankruptcy filings. Even though it’s a normal number this means that more than 1 out of every 300 people will file for bankruptcy. Sadly, many of these bankruptcy attempts won’t be granted. The bankruptcy process is long and tedious and there are no guarantees. Let’s take a look at some of the hurdles you’ll be up against, and what you need to do to make sure you’re successful. Visit website at Sdlattorneys.com for more details.
Many applicants have a huge misconception about bankruptcy. Most believe it’s a process that’ll automatically erase their debt and give them a fresh start. Bankruptcy isn’t something you can use to simply get out of paying legitimate debt that you owe. The courts and your creditors will find some way to make sure you bare some of the burden through all of this. However, this is something that can be explained by a Bankruptcy Lawyer Tipp City OH has available.
You might not even have debt that qualifies for bankruptcy. Those with unsecured debt have a better chance at having most of it erased. Unsecured debts are things like credit card, utility, and medical bills. With these bills your creditors don’t have a right to take possession of your belongings in any way. However, secured debt is a different story. Secured debt involves debts such as your mortgage or student loans. If you don’t pay your mortgage, your lender can take your house. If you don’t pay your student loans, your lender can have your wages garnished.
You’ll have the option of filing Chapter 7 or Chapter 13 bankruptcy. Most of the non-business bankruptcy filings are Chapter 7. This is known as liquidation bankruptcy because you’ll be required to liquidate your nonexempt property. On the other hand, Chapter 13 bankruptcy doesn’t require you to liquidate anything. Chapter 13 bankruptcy allows you to reorganize the payments going to your creditors. This way you, your Bankruptcy Lawyer Tipp City OH offers, and your creditors can determine how much you’ll pay each month.
These are just a few of the hurdles and decisions you’ll face. Again, bankruptcy isn’t for everyone or every kind of debt. Unsecured debt can be handled with a Chapter 7 filing, while Chapter 13 can handle your secured debt. If you have to, seek legal advice from Shipman Dixon & Livingston Co. L.P.A.
