Nobody likes to admit to having financial problems, but most people will have some form of money problem at some point in their life. Some key signs of debt issues include letters threatening wage garnishment and frequent harassing calls from creditors. The two common ways to fix debt issues are paying off the debt or filing for chapter 7 bankruptcy. Chapter 7 bankruptcy allows the debtor to eliminate most kinds of debts. It is usually quicker than chapter 13 bankruptcy, and most debtors are allowed to keep most of their property. However, not everyone is eligible for chapter 7 bankruptcy. A debtor cannot be allowed to use a chapter 7 bankruptcy if their income is sufficient to fund a chapter 13 repayment plan. Here are the top three benefits of filing for chapter 7 bankruptcy in Fairfield, OH.
Eliminates Most of the Debts
Chapter 7 bankruptcy allows a debtor to have a fresh new start by eliminating certain types of debts. However, some types of debts are not dischargeable, such as certain taxes, child support and alimony, debts incurred by fraud and student loans (unless the court rules otherwise). Certain liens on properties, such as mechanic’s lien, tax lien or mortgage remain after the completion of chapter 7 bankruptcy.
Debts Are Discharged Quickly
A typical chapter 7 bankruptcy takes as little as three months. After filing for bankruptcy, the court will issue a discharge order within 2 to 3 months. After the trustee distributes the debtor’s properties to unsecured creditors, the court will close the case.
There Are no Repayment Plans
Unlike chapter 13 bankruptcy, persons filing for chapter 7 bankruptcy do not have to create a repayment plan. The debtor does not have to repay the debts after they are discharged in a chapter 7 plan. Additionally, chapter 7 bankruptcy rules do not impose a limit on the amount of debt an applicant may have.
These are just some of the main advantages of filing chapter 7 bankruptcy in Fairfield, OH. To ensure that the entire bankruptcy process is handled professionally, it is important to hire a proficient bankruptcy attorney. Please Contact Dean Snyder Attorney at Law for more information about chapter 7 bankruptcy.
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