The bankruptcy process is guided by some very specific guidelines. In order to get the most out of your bankruptcy case, it is important to take time to consider a few aspects about your situation before you file.
Reviewing The Details
While your mounting debt burden may seem like an emergency situation, remember that bankruptcy is not for everyone. It is a highly effective tool for debt relief, but experts agree that you should only move forward with a filing after you have consulted with an experienced Cincinnati bankruptcy lawyer. The reason is simple: filing too soon or without proper guidance could lead to an unsuccessful case that leaves you back to square one.
The eligibility requirements for a Chapter 7 filing are quite strict, in that your income to debt ratio must be below a specified threshold in order to qualify. If you do not qualify for Chapter 7, you may be able to file for Chapter 13 instead. However, it is important you understand how these differences could affect your payment requirements in bankruptcy.
Also, not all debts are eligible for bankruptcy. Domestic support payments, student loan debts, some tax debts and criminal restitution payments are rarely eligible for bankruptcy. If any of these are your main source of debt liability, you could find that you are disqualified from filing. However, there are plenty of eligible debt types that your lawyer can help you determine for eligibility.
The last consideration is your history with debts, assets and prior filings. If you recently accumulate a large amount of debt, or sold an asset, you could find your case is denied until a later time. Having debt discharged in a prior bankruptcy also means that you would be required to wait before filing again. Depending on your last case discharge, you could be required to wait anywhere between 2 and 8 years before becoming eligible to file again.