Debts can pile on quickly when there is not enough income or disaster happens, such as essential things breaking that sets people behind on their bills. It happens to everyone from time to time, but there are legal ways to help you get out of the binds you may find yourself. Filing Chapter 7 Bankruptcy may be an option that Dayton Bankruptcy lawyers may help you with if you qualify. Chapter 7 Bankruptcy can discharge most of the following: civil judgments, wage garnishments, repossessions, loan deficiencies, credit card debts, and collections. It favors the clients to keep their houses and vehicles while wiping off the bills that cannot be paid.
What Can Dayton Bankruptcy Lawyers Do for You?
During a free consultation, the bankruptcy lawyers will review the client’s situation and see if they are eligible for filing Chapter 7 Bankruptcy. The attorneys will perform a “means test” to see if the client qualifies, and it goes according to the income to debt ratio. There is Chapter 7 and Chapter 13 Bankruptcy, and if the income is lower than the number of bills racked up, the attorneys will work for filing Chapter 7 Bankruptcy for the client.
Credit cards, utilities, medical bills, and loans are the target factors that determine if the client can afford these bills. Filing bankruptcy is a scary process and most embarrassing, but the attorneys are professional and make the client as comfortable as possible while rebuilding their credit. Once the client is discharged from Chapter 7, many can finance cars, obtain unsecured debts within a few months, and mortgage a home within two years.
How Can Filing Chapter 7 Help You?
There are a number of things that filing Chapter 7 Bankruptcy can assist you with while you are struggling. The number one problem people face when going into debt is the annoying collection agencies that ring the phone what feels like 100 times a day. Once they receive your number, they will call you, your family, your references, and all involved to try and work out payment arrangements or get the entire amount altogether.
There are laws they must follow, like calling at certain daytime hours and not on weekends. Some can drive a person up the wall, but as soon as Chapter 7 Bankruptcy is filed, the harassment must come to an abrupt end according to the law.
Repossession of Vehicles
Those who fall behind on vehicle payments are subject to late fees, and usually, after three or four months, the tow truck is called out and is on its way to repossess the vehicle. Filing Chapter 7 can stop the creditors from calling and will stop the repossession process. The two things in life most people need for possessions are their homes and vehicles. The attorneys will fight to keep their clients with these possessions.
Wage garnishment is a bit tricky but adds insult to injury at the same time. Some companies will not allow their workers to have their wages garnished due to the added amount of paperwork and headaches that go with it if it deals with creditors. Child support is a whole other ballpark and does not affect employment. Wage garnishment happens during a judgment from civil courts that take a percentage of a worker’s salary.
Most of the time, wage garnishments come from income tax and other forms of reimbursements. It stings because the worker is already having a hard time paying their bills. When their paychecks are cut, it throws them further in the hole. Filing Chapter 7 will help keep the workers afloat to avoid their salaries from getting cut.
When debts go unpaid, they go to a collection agency. If the debt is still outstanding or agreements have not been met, they may go to the civil courtrooms and sue the party or parties who owe the debt. Two things usually happen from this point. One is the judge will order wage garnishments, or two, the repossession process will begin. The person who is being sued will also have to pay court costs. By filing Chapter 7, the steps will be halted before the collectors can take the case to court.
Knowing Your Rights in Filing Chapter 7 Bankruptcy
Filing bankruptcy was created to help a person bring back their credit, and this system should never be abused. It enables the person or persons to keep what was purchased through credit or loans. The bankruptcy attorneys will guide their clients of all rights and processes to achieve a positive outcome to help rebuild their future.