In the United States, when a person or an entity files for bankruptcy, the cases are governed according to the federal law. One of the most important as well as aspect of this comprehensive legal branch is the usage of Chapter 7. Chapter 7 governs all the liquidation process which is also the most common form of bankruptcy in the country.
When a business of a person or an entity is going for a constant loss, badly in debt and unable to pay for the all the dues then they file for bankruptcy through chapter 7. This chapter of law is governed by federal as well as state laws though which the liquidation proceedings will take place. Eligibility to fill up and appeal through chapter 7 is determined by a means test instituted in the year 2005. Any person or corporate entity in Ohio who is looking to heir chapter 7 bankruptcy attorney canton oh need to know some key aspects of this bankruptcy laws.
Filing Chapter 7
The case begins by filing the petition, schedules and statement of financial affairs. The applicant must list all the present assets, debts with the financial history. It should also schedule all the property and possessions of the applicant. Hence, people need the assistance of professional attorney.
When submitted, the court will issue a notice to all the creditors and other concerned people whom the applicant have stated in the schedule list.
First Meeting with the Creditors
The applicant meets with the creditors in front of a trustee appointed by the court where they discuss about the assets and other liabilities. If some assets are not exempted, the trustee takes control of the respective assets. From the sale of these assets or the recovery of avoidable transfers, the trustee pays for the expenses.
Reaffirmation and Discharge
Debtors will perform according to the choice which should be expressed to the trustee. They can either return, redeem or reaffirm their debts secured by personal property. After a period of 60 day when no party challenges each other and the applicant right to discharge, the court will pronounce the final verdict.
Certain debts like priority taxes, support, student loans survive chapter 7 bankruptcy as they are excepted from the discharge by law.
Common applicants are not familiar with most of these detailed aspects and provisions. Hence, they need expert assistance to understand these intricacies. However, it is not possible for them and hence they seek assistance from bankruptcy attorneys.
The bankrupt attorneys will help the applicants understand the various parts of the Chapter 7 of the United States code and help them to formulate their documents accordingly. The chapter 7 bankruptcy Massillon OH will be different for a person to an organization. The pertaining law also changes according to the concerned area and hence the residents of Massillon should hire native legal experts who can assist them. Apart from this bankruptcy law help, the residents can also take legal advice on other sections of law and receive the appropriate solutions accordingly.
Handling bankruptcy cases is never easy especially on own. It is not possible for any individual to mark themselves just as being bankrupt and then sit back and relax. There are some legal procedures to maintain and follow. In the absence of all the legal procedures being maintained as per the need, the individual or the concern facing the bankruptcy might have to deal it out roughly with the creditors or face penalties if the creditors resort to taking the path of law. Filing for a Chapter 7 bankruptcy is all that one needs to do. Since professional representation is a must, hiring a chapter 7 bankruptcy Massillon OH is not a hassle but a mandatory part of the entire procedure.