Like so many other residents of Ohio, you may find yourself struggling to pay off an increasing amount of debt. Maybe your debt accumulated quickly because of an unforeseen medical situation, or maybe you got in over your head as far as credit card bills. Regardless of how your debt accrued, if you are behind enough on your payments, you may have a portion of your wages garnished.
If you have considered filing for bankruptcy, you are certainly not alone. In 2017, more than 767,700 bankruptcy cases were filed, according to U.S. Courts. Of those cases, 472,135 were Chapter 7 bankruptcies. Chapter 7, otherwise referred to as liquidation bankruptcy, is designed to wipe away most of your lingering debts, including credit card debts, medical expenses, doctors’ bills and mortgage payments. Not everyone, however, qualifies to file for Chapter 7. There are a few factors that must be met in order to file for this type of bankruptcy.
At Kennel Zeigler, LLC, in Ohio, we understand that overwhelming credit card debt can get you in a lot of trouble. The card balances increase faster than you can pay them down, and the monthly interest charges eat you alive. You may have heard that you can get your credit card debt discharged in a Chapter 7 bankruptcy, and this is true enough. However, if you have begun thinking about bankruptcy as your only way out, you would do well to stop using your credit cards now. Why? Because the Bankruptcy Court may not discharge your recent credit card debt.
Your Chapter 7 eligibility depends on many things, including the median income in Ohio. While the process might not seem entirely straightforward to you at first, it is relatively simple once you look into the details. In fact, recent bankruptcy reforms have made it possible to provide much more accurate predictions as whether you do or do not qualify for Chapter 7.
There are many different reasons you may be considering filing for bankruptcy in Ohio, and you may have questions about whether a Chapter 7 or a Chapter 13 bankruptcy might be right for you. While there are numerous differences between the two types, whether you are ultimately able to pursue a Chapter 7 bankruptcy will depend on whether you are able to pass what is known as the bankruptcy means test.
If you are facing a sheriff's sale in Ohio, then you have already advanced into the foreclosure process for the state. This is not necessarily a good thing, but it is important to keep in mind that your foreclosure, like many other legal or financial processes, requires time and multiple confirmations to proceed. There are many methods by which you might delay or prevent your home being auctioned off.