Faced with an overwhelming amount of debt and the constant harassment of creditors and collectors, it is easy to think you have no other choice. By virtue of federal law, nothing could be further from the truth. The Bankruptcy Act provides people like you the opportunity to file bankruptcy in order to shield themselves from the harassment of collectors and get a fresh new financial start. If you are in need of a consultation and initial assessment, contact a Dayton Ohio Chapter 13 Bankruptcy lawyer and get the help you need for a fresh financial start.
Depending on whether you have home or car payments in arrears, your choice might be in a repayment plan under Chapter 13 Bankruptcy. It could also be by immediate discharge and liquidation of non-exempt assets under Chapter 7, provided two legal options provide for elimination of most of your unsecured debt. For example, one must be not secured by mortgage or property as your car or household goods. For secured debt, Dayton Ohio Chapter 13 Bankruptcy would allow debt reduction so that, for example, you pay less for your car than you currently owe the bank.
Chapter 13 aims to repay arrears on loans burdening their essential goods (home, car, and other priority debts such as alimony and taxes), while offering you a total discharge and disposal of your unsecured debt such as credit cards and personal loans. To this end, lawyers propose and approve a payment plans to help keep you equipped with necessary living expenses and income. Unlike a payment plan that you can negotiate with a creditor outside of bankruptcy, creditors cannot reject a proposed plan by you within a bankruptcy proceeding, provided that the plan meets the legal requirements. That’s why a payment plan outside of bankruptcy generally will not have the economic flexibility of Chapter 13 Bankruptcy.
In Chapter 13, you are entitled to pay arrears on home loans, cars and other essential goods through a convenient payment plan of 3-5 years. Therefore, these creditors will be prevented from such property, which allows you to pay on any debts and help your situation without creditors hindering your current situation. Click Here for more details.
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