Chapter 13 bankruptcy is a section of the U.S. Bankruptcy Code that outlines a specific way in which a petitioner clears their debt. Essentially, it is used for those who has assets they want to protect along with making too much money to qualify for Chapter 7. A Chapter 13 Bankruptcy in Hamilton, OH involves creating a repayment plan, and gives the petitioner the ability to renegotiate their debts with creditors. It can be an advantageous tool to use for someone facing foreclosure. Another advantage is that the credit rating doesn’t take as large a hit, and it stays on credit reports for seven years.
It can take up to five years to complete a Chapter 13 bankruptcy. The reason for this is that there is a repayment plan that is designed to repay certain debts in full and partially or not at all for others. How much is paid every month depends on how much money is left over in the budget after living expenses. The law recognizes that money has to be used to feed and clothe the household, pay essential bills and fund retirement accounts. What is left over every month is then paid to the trustee who then disburses it to creditors. The household finances may become restrictive during this time, but it may be preferable to the alternatives.
While Chapter 13 may feel like a good option, it’s not something that an individual should try to do on their own. The process involves negotiating with creditors, many court appearances, and ensuring proper valuation of assets. A lawyer, such as R. Dean Snyder Attorney, takes on all of that burden, allowing the client to go on with their life without having to be concerned with what’s next.
As previously mentioned, there will need to be negotiations with creditors in order to get certain debts under control. The bankruptcy trustee overseeing the case must be kept informed as he has the final say on accepting or rejecting the agreement. A petitioner’s lawyer has the job of getting creditors to accept a payment plan in some form or another in order to allow the bankruptcy to progress, and cure defaults. This can allow a petitioner to keep important assets without going broke.
