It is difficult to get a fresh start with financial problems. Debt collectors are always calling, and the mail is full of threatening letters. Bankruptcy is one path that may bring relief. Consult with a Bankruptcy Lawyer in Cincinnati OH.
Will Bankruptcy Help Me?
Bankruptcy is a good tool for those who are facing vehicle repossession or foreclosure. The judge issues an automatic stay on collection activities when the bankruptcy is filed. Further, debtors can keep their property and pay the arrears in the bankruptcy. However, some payments, like child support, cannot be included in bankruptcy.
Most Consumers File Chapter 7 Or Chapter 13
A Bankruptcy Lawyer in Cincinnati OH will explain the differences between Chapters 7 and 13. First, Chapter 7 is a liquidation bankruptcy so filers have to prove they do not make a lot of money. Basically, one swears to the court that they cannot repay debt. As a result, the court liquidates the filer’s assets to and distributes the money to creditors.
Who should consider Chapter 7? Chapter 7 is preferred by people who do not have property they want to keep. Further, it is the only way to go for those who do not have the regular income. In addition, credit card and medical bills get wiped out. Finally, Chapter 7 bankruptcies are discharged quicker than others.
All About Chapter 13
Chapter 13 filers should have a regular monthly income. The court looks at the filer’s income and assets and determines a monthly payment. Many of the filer’s past-due payments are included in the bankruptcy amount. However, filers must keep the payments current for homes and vehicles.
Debtors with unpaid taxes and student loans have to pay the full amounts in the bankruptcy. Chapter 13 payments are usually spread over three to five years, and it is hard for some families. A frugal lifestyle will have to be adopted to make it through. Monthly bankruptcy payments, current payments, and living expenses must be paid out of disposable income.
The best part of Chapter 13 is that one will be debt-free upon discharge. To learn more, Visit Dean Snyder Attorney At Law.
