When and How to File Personal Bankruptcy in Ohio

You can file for personal bankruptcy protection when your monthly debt payments exceed your monthly income from all sources. How you file depends on several factors, including the amount of income you expect to continue receiving after you seek protection from creditors.

One important thing to keep in mind that it is never really too early to schedule a consultation with a knowledgeable, experienced, and understanding Ohio bankruptcy attorney. Do not be afraid to learn your options before you find yourself in a financial crisis. Speaking with a lawyer who has helped many other people regain control of their finances by restructuring and eliminating debts before you absolutely must file for bankruptcy will allow you plan ahead and possibly avoid going through a lengthy legal process, selling off some possessions, and working to overcome continued negative reports on your credit score.

Based in Columbus and having represented clients in all the federal bankruptcy courts across Ohio, the bankruptcy attorneys with the Calig Law Firm offer confidential advice, so call us at (614) 252-2300 or request an appointment by filling out this online contact form.

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Knowing When to Declare Personal Bankruptcy

You become eligible to file for Chapter 13 bankruptcy protection when you provide the court with a repayment plan that establishes a monthly payment for all of your creditors. This payment is usually pennies on the dollar, but it must be approved by the court. For instance, you have not lost your job and expect to remain employed for the foreseeable future, but your combined payments for housing, utilities, and food only leaves an amount that would be enough to pay your credit cards 5 to 10 cents on the dollar over a period of years.

Filing for Chapter 7 bankruptcy protection becomes an option when you can no longer make your debt payments because you have limited income and that income is below a certain dollar figure. Even in that circumstance, however, you may still have to seek Chapter 13 protection due to your savings, investments, and assets. Sitting down with a Columbus, Ohio, bankruptcy attorney to review your finances in detail will make it clear which type of protection from creditors you can seek.

Understanding How to File for Personal Bankruptcy

Whichever type of personal bankruptcy protection you seek, you must start the process by filing a formal petition with the federal district court closest to your primary residence — that is, the home you live most of the year. The petition must include detailed lists of income, assets, and debts, and you must pay a fee to have the petition considered.

You will help yourself by working closely with an Ohio bankruptcy attorney while preparing your petition. If you inadvertently leave out important information, you can fail to have key debts reduced or forgiven.

Once your bankruptcy petition is accepted, you must negotiate with some creditors to get debt payments eliminated, reduced, or extended. The trustee handling your case will also schedule a court hearing at which the people and companies you owe money to can argue against your right to reorganize your finances to escape certain debts.

You are legally allowed to have advice and representation from a bankruptcy lawyer at each stage of the process. If you are considering filing for bankruptcy, let the lawyers with the Calig Firm know how we can help.