How to Qualify for Bankruptcy in Fairfield County, Ohio
Bankruptcy can represent a new financial start if you feel overwhelmed by debt, but you still need to know what filing for bankruptcy means and whether or not you'll qualify for it in Fairfield County.
Your best course of action whenever you're considering filing for bankruptcy is always to speak to an attorney, but it still pays to know the basics before you file.
Chapter 7 Bankruptcy Requirements
In order to qualify for Chapter 7 bankruptcy, you usually have to pass a means test. This will determine whether your income falls below the median income for an individual or a family of your size in Ohio. If you fall below this median, you will likely qualify for bankruptcy. You may not have to take a means test if most of your business is non-exempt, you are a disabled veteran, or you are a member of the National Guard who has been on active duty for at least 90 days.
If you qualify for Chapter 7 bankruptcy, a bankruptcy trustee will liquidate your assets and distribute them amongst your creditors. If you have enough disposable income left after paying your monthly expenses to cover your unsecured debts, you might qualify for Chapter 13 bankruptcy instead of Chapter 7.
Chapter 13 Bankruptcy Requirements
If you aren't eligible for Chapter 7 bankruptcy, you might qualify for Chapter 13 bankruptcy. This means that you have enough disposable income to pay off your unsecured debts over a period of three or five years. As of 2017, this means that you have a regular income, your unsecured debts are less than $360,475, and your secured debts are less than $1,081,400. These numbers are frequently adjusted based on the cost of living in the United States. You must also have received credit counseling in the 180 days before filing for Chapter 13 bankruptcy to qualify.
With Chapter 13 bankruptcy, your monthly payments will be based on your income minus your living expenses. Your Attorney will work on your budget with you, and inform creditors how much they will be receiving., This is usually around 10 cents on the dollar. Being in Chapter 13 bankruptcy also prevents foreclosure of your home and keeps your property from being repossessed.
Bankruptcy can be a difficult subject to understand or discuss, so it's always best to contact a bankruptcy lawyer for advice if you are considering filing in Fairfield County. An experienced attorney can give you a better idea of what filing for bankruptcy entails and help you decide which option is best for you.