Living from paycheck to paycheck isn’t easy. Many Americans have been doing it for years. It’s stressful but they manage to do it. However, all it takes is a single medical operation to send them into financial chaos. Even with good insurance, they can end up owing thousands of dollars in medical bills. It often take six to 8 weeks to recover from surgery. During that time, there isn’t any income and they had no savings to live on. Within a few months, they are drowning in debt. They should immediately call a Bankruptcy Lawyer Tipp City OH.
The sooner the call is made the more the lawyer can do to help the debtor keep as many of his assets as possible. If the debtor is still current on his mortgage or car payments, the lawyer will help him stay that way. At the first meeting, the Bankruptcy Lawyer Tipp City OH will review the debtor’s income, assets and debts. This can be an upsetting process. The debtor should remember that the lawyer is there to help and not to judge. Bankruptcy is a legal process. Therefore the law anticipated that some people need and are entitled to a fresh start.
If the debtor’s income is less than the median income in Ohio, then he can automatically use Chapter 7 to file for bankruptcy. This is generally how most people want to clear their debt. It only takes three to six months to complete. Chapter 13 on the other hand can take up to five years. The Bankruptcy Lawyer Tipp City OH submits the application to the bankruptcy court. The judge then appoints a bankruptcy trustee to oversee the process. He organize a meeting of the creditors. Most debtors hate the thought of facing dozens of people they owe money to. In reality, none of them usually shows up and the meeting barely lasts 10 minutes.
The trustee then sells or auctions off all of the debtor’s non-protected assets. He gives any money made by these sales to the creditors. The process is over and the debtor is given a fresh financial start. People worried about their debt level can contact Shipman Dixon & Livingston Co. L.P.A. for a consultation to learn more about bankruptcy. Click here for more information.
