Some people may think that bankruptcy means losing everything. It generally does not. Chapter 13 bankruptcy is designed for someone who has a steady job but has fallen behind on payments. People threatened with repossession of their homes but who really want to keep the home would normally declare Chapter 13 bankruptcy.
The first thing that happens when a bankruptcy case is filed is that repossession efforts stop, as well as harassing phone calls and letters from creditors. Next, a plan needs to be drawn up to pay all or some of the debt over a 3-5 year period. Overdue mortgage or vehicle payments will be paid back during this period. Normal monthly payments will also be made. Unsecured debt will be included in the plan but the amount of that debt that will be paid back can be none of the debt, all of the debt or any amount in-between.
In most cases, the monthly payment in the plan and agreed to be the creditors is paid to a Bankruptcy Trustee who will retain a small fee and pay the rest to the creditors. The debtor is allowed enough money for living expenses, but not for luxuries.
Chapter 13 makes sense when the debtor has substantial equity in the home. At times, a debtor has other assets which would not be protected by bankruptcy and he wants to keep those assets. Vehicle loans that are for substantially more than the vehicle is worth would also be best handled under Chapter 13. Both Chapter 7 and Chapter 13 bankruptcy will remain on the debtor’s credit report for 10 years.
Dean Snyder, Attorney at Law, is passionate about helping people get their financial lives back on track. For over 20 years, he has devoted his professional life to the resolution of his clients’ debt problems. There are choices that must be made and his experience can help each client decide what is appropriate for their individual situation. Many people decide that filing for Chapter 13 Bankruptcy in Hamilton, OH is right for them. Browse their website at Domain URL to learn more about how they could help you. The firm offers flexible appointment scheduling and a free consultation.
