Dayton Bankruptcy Law Blog

If you struggle with mounting debt and have finally decided to file for bankruptcy, you will soon attend the 341 meeting, also called the meeting of creditors.

This is basically a hearing that creditors are welcome to attend. However, of most importance to you is that you will meet the trustee assigned to administer your bankruptcy case.

Personal bankruptcy is a personal choice that you may consider if you are experiencing insurmountable financial difficulties. The option to pursue a Chapter 7 or Chapter 13 bankruptcy is yours alone – or so you may think. What if someone told you that your creditors may petition the court for your bankruptcy against your will?

Lenders may, in fact, request that those who owe them money be forced into bankruptcy, according to FindLaw. Fortunately, involuntary bankruptcy is rare for individuals, although you may be interested in learning how this action can benefit creditors. It does them no good to send collection notices and bills to debtors if they are ignored. However, when eligible assets are liquidated through Chapter 7 bankruptcy, the funds are used to repay creditors. Those who owe significant debt may have a higher chance of being pushed into involuntary bankruptcy than the average debtor.

When Ohio residents realize they cannot afford their current mortgage payments, they may worry that the bank will foreclose on their house. However, people may sometimes be able to get a mortgage forbearance to help them manage these payments.

People may find themselves unable to pay their mortgage for many reasons. The Consumer Financial Protection Bureau says these reasons include an unexpected injury or illness and home damage after a natural disaster. Some people may not be able to afford their mortgage if they lose their job or have to take fewer hours. In these situations, many people may be able to request a mortgage forbearance. Some people might think a forbearance means they no longer need to make these payments. This is not the case, though. People typically still need to pay their mortgage; however, they can usually pay a lower amount each month. In some situations, a lender may allow people to temporarily stop their payments. It is important to remember, though, that people generally have to continue making these payments later. A family's particular situation determines the type of forbearance a lender might offer.

As a resident of Ohio, you have several options to look into if you are considering filing for bankruptcy. For example, Chapter 7 bankruptcy offers relief from certain debts by allowing you to discharge them. However, it is crucial to note that not every debt you hold can be dismissed through bankruptcy.

FindLaw takes a look at the types of debt that can and can't be discharged by filing for Chapter 7 bankruptcy. Typically, most types of unsecured debt CAN be discharged. Unsecured debts are debts without an underlying loan asset and can include:

• Credit card charges
• Medical bills
• Back rent
• Utility bills like electricity or telephone