Bankruptcy is the situation where one legally declares that neither they nor his business is in a position unable to pay outstanding debts. The term ‘bankruptcy’ in itself refers to a situation where one is unable to meet his debts as they become due or to have more debts than assets. Ideally it is a process in which consumers and businesses can repay or eliminate some or all of their debts under the protection of the federal bankruptcy courts. This process can be liquidation and reorganization. Here is what you need to know about Debt Consolidation in Beavercreek Ohio and types of bankruptcy
In Ohio, bankruptcy in business takes two common forms which are mentioned in chapter 7 and chapter 13. An individual or business can file under chapter 15 bankruptcy. This is less common as it involves clearing of international debts. A state or an agency can declare bankruptcy. Then in this case they file chapter 9 which is also called municipal bankruptcy.
Domestic partners, couples, married people or individuals have their bankruptcy in three types of clauses. Chapter 7 is the most common one filed by spouses or individuals. An individual who does fishing and farming as an occupation is restricted to chapter 12. Chapter 13 is rarely filed, and it is for individuals and married couples.
There is a situation where an individual or business cannot completely pay their debt. In these cases, Chapter 7 comes into play. Then it means that the court will declare that you are unable to pay your debts and therefore then all your debts become null and void. If a business files Chapter 7, the business is closed down.
It is of importance to note that all assets have to be declared when filing Chapter 7. The assets that could be vehicles or houses or other collectibles will be liquidated to pay the debts. This means that once a judge agrees to the bankruptcy filed, then all debts are cleared, and the individual goes to a fresh start.
The most important thing when getting Debt Consolidation in Beavercreek Ohio is to get help from a competent attorney. An attorney from Miami Valley Bankruptcy of Beavercreek Ohio will help you through the process successfully.
