Chapter 13 Bankruptcy in Cincinnati OH is an option for individuals who find they have more debt than they can handle. Often referred to by individuals as the wage earner’s plan, this type of bankruptcy provides a person with a way to clear their debt if they have a steady income. A repayment plan is developed to allow payments to be made over a period of three to five years. No collection efforts may be taken during this time period.
The Benefits of Chapter 13 Bankruptcy
One reason many people choose Chapter 13 bankruptcy over Chapter 7 is it allows them to prevent foreclosure on the family home. However, all future mortgage payments must be made in time to retain the home. Individuals who have other secured debt will find that they can reschedule the payments and stretch them out over the life of the bankruptcy plan and potentially lower the payments.
Co-signers may be protected when this option is chosen and the debt is consolidated. One payment is made to the Chapter 13 bankruptcy trustee who then makes the necessary payments to the creditors.
Who Can File?
Individuals can opt to file Chapter 13 bankruptcy if their debt falls below the amounts allowed by the court. However, partnerships and corporations aren’t eligible for this type of plan.
Furthermore, a person who failed to show for a court appearance regarding a bankruptcy petition in the past 180 days cannot use this option, and this is only one of many things that may make a person ineligible for this type of bankruptcy. A bankruptcy attorney can be of great help in determining who will and will not qualify for this option.
Get more information on Chapter 13 Bankruptcy in Cincinnati OH before determining if this is the appropriate filing option. Individuals who have a steady income often find they wish to make use of this option as opposed to Chapter 7. A bankruptcy attorney is of great help in determining whether this is the right choice because each debtor’s situation is unique.
Don’t rush the process, as this can make debt problems more overwhelming. Take the time to learn about the different types of bankruptcy and the benefits and drawbacks of each. With this information, a person with overwhelming debt can make the right decision to deal with their money issues.
