When you are in debt, it can quickly become overwhelming, as the cycle of seeking relief can seem never-ending. Not only can this cause your finances to deteriorate, but it can also drastically impact your mental health as well. As such, it’s critical to understand your debt relief options. Typically, you’ll find that bankruptcy may be in your best interest. However, if you decide to file, you’ll also need to consider which kind of consumer bankruptcy you will pursue. If you’re unsure of the different types, you’ll want to keep reading. The following blog explores what you should know about your options and why working with Franklin County bankruptcy lawyers to guide you through this complex process.
What Is Bankruptcy?
Bankruptcy is a legal process that can help filers receive debt relief. There are different types of bankruptcy that consumers can file based on their circumstances. As such, this allows consumers to regain control of their finances.
It’s imperative to understand that bankruptcy is a complicated legal process that is overseen by the United States federal Court system and operates under the rules of the U.S. Bankruptcy Code. When you file for bankruptcy, a trustee will be assigned to your case. This individual is responsible for ensuring you adhere to the rules of filing and managing payments to your creditors. It is critical to understand that a bankruptcy trustee cannot assume the role of an attorney, meaning they cannot provide legal advice to filers. Additionally, their main goal is not to assist you, but rather to ensure the rules of law are upheld.
What Are My Consumer Bankruptcy Options?
If you are interested in filing for bankruptcy, it’s critical to understand that, as a consumer, you generally have two options. The first choice is Chapter 7 Bankruptcy, which is a liquidation plan that requires your trustee to seize and sell all non-exempt assets to repay your creditors. At the end of this process, your remaining eligible debts will be discharged, meaning you are no longer legally liable for them. This process typically lasts six months and is often referred to as the most straightforward plan. However, you should note that you must qualify for this option by passing a means test. Essentially, this test compares your household income to others of the same size in Ohio. If you make less than the average income, you can pursue this option. If you make more than the average, you will be unable to file for Chapter 7.
In the event you do not qualify for Chapter 7 or are worried about your assets, you may be eligible to pursue Chapter 13 Bankruptcy. This is a reorganization plan that will consolidate your debt, which will then require monthly payments for three to five years, depending on the circumstances of your case. This allows you to restructure your payments, which could reduce them, while catching up on payments to stop the repossession of certain assets.
As you can see, bankruptcy can be an incredibly difficult process to navigate. That is why it is critical to connect with an experienced attorney at Cousino & Weinzimmer LLC. Our dedicated team understands how overwhelming these matters can be, which is why our firm is committed to helping guide you through these difficult times. If you are ready to file, connect with us today to explore your legal options.
