Factors to Consider Before you File for Chapter 7 Bankruptcy in Fairfield OH

by | Aug 15, 2014 | Lawyers & Law Firms

When a person has so much debt that they aren’t able to make the payments and don’t see a way to ever pay it off, they sometimes consider Chapter 7 bankruptcy. This kind of bankruptcy doesn’t require any repayment plan but there are some drawbacks that you should know about before you file Chapter 7 Bankruptcy in Fairfield OH.

The greatest disadvantage to Chapter 7 is that you aren’t likely to be able to keep your house and your car if either of them are financed. Many people file for bankruptcy protection before they are facing foreclosure. Though filing will put an automatic stay on collection activities for your past due mortgage and car note, it won’t stop the bank from foreclosing on your home and repossessing your vehicle. They merely have to ask the court for permission to do so.

Filing Chapter 7 may erase your credit card debts, but if you any joint accounts, the other person will still be liable for the full balance unless they also file for bankruptcy. Friends and family members who added their names to your accounts to help you qualify may not be happy that they’ll have to pay off your debts. To preserve your relationships, you may still have to pay some of these debts even after your legal responsibility for them has ended.

Most people who file for Chapter 7 Bankruptcy in Fairfield have little to no personal assets. However, if you own some expensive property, you are likely to lose it when you file for bankruptcy protection. The trustee will look at your assets that aren’t covered by exemptions and determine if they can make a profit by selling them. If they can, your property will be sold and the proceeds will be given to your creditors.

If you need more information to decide whether bankruptcy is right for you, Contact R. Dean Snyder Attorney. A lawyer can look at your individual circumstances and give you advice that may help you make an informed decision. There are real advantages to discharging your debts. However, there are also some significant disadvantages.

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