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How Bankruptcy Lawyers in Dayton Ohio Help Clients Choose the Right Type of Bankruptcy Action

The need to file for bankruptcy protection can come about for many reasons. An unexpected job loss coupled with a long period of unemployment is a common cause. An extended illness and a pile of unpaid medical bills will also pave the way for this type of action. Bankruptcy Lawyers in Dayton Ohio understand that even people who are normally conscientious about paying their bills can find themselves in situations that seem to be impossible to resolve. That is why they do their best to help clients choose the best possible bankruptcy solution. Determining Eligibility Not everyone is eligible for all forms of bankruptcy protection.

For this reason, Bankruptcy Lawyers in Dayton Ohio will seek to determine what their clients can and cannot expect from the courts. This usually begins by applying what is known as a means test. This test is simply a process that makes it possible to determine if the client does have enough income to pay off all outstanding debts, if the court managed those payments through a specified schedule. Based on the amount of income and the results of the means test, there is a good chance of qualifying for a Chapter 7 bankruptcy. In this scenario, the court would determine if the debtor has any assets that are not considered exempt under current laws.

If so, those assets are sold and the funds distributed to partially settle the outstanding debts. The court then discharges the remainder of those debts. Debtors who do not qualify for Chapter 7 bankruptcy protection are likely to meet the requirements for a Chapter 13 bankruptcy. In this scenario, the court sets up a repayment schedule and takes on the task of making monthly disbursements to the creditors. Funds are withheld by the debtor’s employer and forwarded to the court for this purpose.

Over time, the debts are settled in full. Which Way to Go? When the client qualifies for both types of bankruptcy protection, the attorney at MiamiValleyBankruptcy.com will discuss the pros and cons of each option. This is based on the specific circumstances of the client, and which approach is likely to provide the best solution in the long run. By making sure the client understand the benefits and possible drawbacks of each approach, it is much easier to decide how to proceed and be satisfied with the outcome.

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