Beginners Guide to Filing For Bankruptcy in Hilliard, Ohio

If you find yourself living from one paycheck to another and are falling far behind your bills, you should consider filing for bankruptcy. You can file for bankruptcy under Chapter 7, 11, 12, or 13. Filing under each of these Chapters has its share of requirements and limitations. Many people file for bankruptcy under Chapter 7 and 13 because 11 and 12 are for businessmen and farmers respectively. The following are some of the benefits you can expect when you file for either a Chapter 7 or 13 bankruptcy in Hilliard Ohio.

Discharge of Your Debts

One of the benefits of filing for a Chapter 7 bankruptcy is that all your debts, with a few exceptions, will be discharged. These exceptions include domestic support obligations, some taxes, and student loans.

Stop Repossessions and Foreclosures

Filing for Chapter 13 bankruptcy helps you stop repossessions and foreclosures. You are permitted to keep your house, car, and any asset and afforded the chance to propose a reasonable repayment plan.

No Restriction on Debt Amounts

There are strict limits on the debt that is covered under a Chapter 13 bankruptcy. If you owe too much, it may be impossible to qualify for a Chapter 13 bankruptcy. One of the admirable benefits of a Chapter 7 bankruptcy is that it discharges all debts without any limitation. This filing is very beneficial for people with huge debts that have been accumulating overtime.

Keep Non-Exempt Property

Non-exempt property is normally sold to allow you to repay creditors in a Chapter 7 bankruptcy filing. In a Chapter 13 bankruptcy, you can remain with all your non-exempt property. This enables you to live your normal life while still paying your creditors without losing any key assets.

No Loss of Income

With Chapter 13 filings you are required to submit payment to your creditors and to the courts within a 3-5-year period. A typical Chapter 7 filing can last between one to three months. With this filing, you are not required to formulate a repayment plan for sending money to your creditors. A Chapter 7 filing allows you to keep all your income and live debt free.

Maintain Good Relationship with Your Creditors

When you file for a Chapter 13 bankruptcy, your relationship with creditors is not tarnished. On the contrary, since you have shown your commitment to formulate a payment plan, your creditors will respect your good will and this will improve your credit rating. If you pay back your creditors in time, they are going to serve you in future.

Filing for bankruptcy is a smart way to either start a fresh or reorganize your finances, depending on the type of bankruptcy you file. The main benefits of filing bankruptcy are that you get a chance to live stress free without the burden of creditors chasing after your assets and possessions. If you find that you are not living up to your bills and debt obligations, it’s high time you considered filing for bankruptcy.