Chapter 7 and Chapter 13 in Cincinnati
You never thought filing bankruptcy was going to be easy, but who knew there were so many different little details that have to be covered? Bankruptcy can be a quick, effective fix for financial problems in Cincinnati Ohio, but you have to understand the process in order to get the most out of it. During your brief study of the Queen City bankruptcy policies no doubt you have seen information about the Chapter 7 and Chapter 13 bankruptcy plans. Both have advantages and disadvantages. The first order of business isn't so much which one you prefer as finding out which one you qualify for. Your Cincinnati based bankruptcy attorney will be able to help make the right decision. It's always nice to have some idea of what is going on, so to get you started on your crash course in bankruptcy, here are a look the two types of consumer bankruptcies and how they affect your financial future.
- Chapter 7
- Chapter 13
- life after bankruptcy
Under federal and Ohio bankruptcy law, Chapter 7 bankruptcy is a liquidation of the debtor's non-exempt assets. In other words, by filing and agreeing to the terms of the bankruptcy, you are giving the court permission to sell your non-exempt assets, including your home and/or business, to use the proceeds to pay back your outstanding debt. Fortunately, most people who file under Chapter 7 do not have any non-exempt assets and don't lose any property. Chapter 7 eliminates most debts. This is where the term "fresh start" comes from.
On the other hand, Cincinnati based Chapter 13 bankruptcy law works a little differently. It is still intended to provide much needed relief from your debt, but it is a reorganization of your debts as opposed to liquidation. You will still be able to retain ownership of your home and other assets. You will be required to pay a court appointed trustee a set amount each month that will then be used to pay back your debt. Home foreclosures will be stopped and the harassing phone calls are a thing of the past as well.