The struggling economy has forced many people to the point where they begin to consider filing for bankruptcy protection. Few people reach this point because they have recklessly overspent on luxury items. Most of these people lost a job or faced large and unexpected expenses (such as medical bills). Many of these people were already surviving by counting every penny and couldn’t handle increased financial pressures.
The average bankrupt is married and middle-aged, making less than $30,000 per year. The number of younger filers has been decreasing, but the percentage of seniors filing for bankruptcy is on the rise. Prior to 2005, almost half of the bankruptcies were related to an injury or illness. However, the reasons now given are lost jobs, reduced income, too much debt, unexpected expenses and divorce.
Many of these people will file for Chapter 7 Bankruptcy In Dayton OH. Chapter 7 allows a debtor to discharge most of the debt, getting a clean start. In theory, Chapter 7 bankruptcy is a liquidation. The trustee will collect and sell all of the debtor’s non-exempt assets and divide the proceeds among the creditors. In practice, most debtors retain their assets because the assets are considered exempt.
Credit card debt and other unsecured debt (such as hospital bills) will be discharged completely in most cases. However, not all debt is discharged in Chapter 7 Bankruptcy In Dayton OH. Alimony, child support, some tax debt, student loans and any fraudulent debt will not be discharged. With the exception of these non-dischargeable debts, the person will be able to start over. The stress relief is life-changing.
Attorneys Jeffrey Paul Albert and Kenneth Joel Krochmal opened their law firm, Albert & Krochmal, Attorneys at Law, in 1990. The firm focuses their practice on bankruptcy and family law. These experienced and well-respected attorneys offer affordable prices, but don’t scrimp on the quality of the legal service provided to their clients. One of their goals is to be sure that all clients fully understand their legal options and rights so that they can make informed decisions. They understand what a stressful time this is for people and use all of their skills to ease the burden and make the legal process as easy as possible. Visit the website for more information.