Most individuals really don’t understand how bankruptcy actions work. Some are under the assumption that if they go bankrupt they are going to lose absolutely everything that they own while others assume that all of their debts are going to be wiped clean.
The two most common forms of Ohio bankruptcy are a Chapter 7 or Chapter 13. The individual circumstances of your financial situation will dictate which one you are eligible for. Once this has been determined then how your debts are handled will be dictated by that chapter.
In a Chapter 13 bankruptcy you will be dealing with repayment plans. What this usually entails is that your creditors are put into a situation where they will have to accept the payments determined by the bankruptcy court which will be spread out over a period of 36 to 60 months as a rule.
It will be based on your budget and what you can afford and a repayment plan will be based on this. How much you will have to be paying out will be determined by your budget as well as your assets. Also, what will be determined is the type of debt you have and the length of the plan that is going to be set up for you.
The payment plan is approved by the bankruptcy court and the trustee and it can be quite complex to set up a repayment plan. For this reason it is most important that you rely on a qualified bankruptcy attorney in Cincinnati, Dayton, Springboro, Middletown, or Miamisburg, Ohio to assist you through the entirety of your bankruptcy which will also include determining which chapter you are eligible for.