To file for Chapter 13 Bankruptcy in Hamilton, OH, you’ll need to fill out a significant amount of paperwork, which lists your expenses, debts, property and income. You’ll then file those papers with a local bankruptcy court, and you’ll also file a plan for how you’ll repay those debts. Filing for Chapter 13 also requires that you file your tax returns for the last four years, and complete a credit counselling course with a trustee-approved agency. Read on to learn more about filing for Chapter 13.
How Much You Will Repay
In Chapter 13, some of your creditors will get 100% of what’s owed, while others may get a smaller portion or none at all. A Chapter 13 plan typically provides that:
* Administrative claims receive full payment. Your bankruptcy filing fee, trustee commissions and attorney’s fees will be paid in full.
* Priority debts are fully repaid. These debts include child support and alimony, back taxes, salaries, wages and commissions owed to employees, and contributions owed to employee benefit funds.
* Mortgages are paid in full (if you plan to keep your home). Other secured debts are paid as well.
* Unsecured debts are paid according to the value of nonexempt property, your disposable income, and the length of your repayment plan.
Your Disposable Income and Payment Plan
Your plan must contain a commitment to using any disposable income to pay off unsecured debts such as medical bills and credit card payments. The length of your payment plan is contingent upon your income; if yours exceeds the median, your plan will last five years. If it is below the median, you can have a three-year plan, even if that means your creditors cannot be paid in full.
You Don’t Have to Give up Your Property
In filing for Chapter 13 Bankruptcy in Hamilton, OH, you don’t have to surrender your property; instead, you repay your debts from your income after expenses are paid. In return, your payment plan has to pay your creditors at least the worth of your non-exempt assets. If you need to file for bankruptcy but are not sure which type fits your situation, consult Domain for case-specific advice.
