While filing for bankruptcy was the last thing the individual wanted to do, there is no other way out. After going over the particulars with an attorney, it is determined that filing a Chapter 7 in Dayton OH, is the most practical solution. Here are some things that the debtor can expect to happen once the petition is filed with the court.
The Appointment of a Trustee
As part of the consideration of the petition for the Chapter 7 in Dayton OH, the court will appoint a trustee to verify all the information provided by the debtor. The goal is to determine if the financial situation of the individual is accurately outlined in the documentation. This includes checking the amount of debt owed to each creditor, the type of debt involved, and the monthly income of the debtor. As part of the effort, the trustee will also verify any assets that the debtor declares and check to see if any other assets exist.
Selling Eligible Assets
It is important to remember that bankruptcy laws are designed to protect both the debtor and the creditors. If the trustee determines that certain assets are eligible for sale, then arrangements will be made for those items to be sold for the best possible price. The proceeds from those sales will be distributed to the creditors according to a plan established by the trustee and approved by the court.
Keep in mind that not all assets are eligible for sale. Anything that current laws consider to be essential for the debtor to maintain a reasonable standard of living will not be subject to sale. That means the primary residence is likely to be exempt, as is the vehicle that the debtor uses to get to and from work. Assets like a secondary property or stocks that can be liquidated to partially cover the debt would be considered eligible.
For anyone who has tried everything and cannot seem to regain control of debt, now is the time to talk with a bankruptcy attorney. Together, it will be possible to determine if bankruptcy is an option and which type of personal bankruptcy would be in the best interests of the client.
