Bankruptcy is one solution when consumers cannot pay their bills. Filing Chapter 13 allows people to pay bills over time and keep their property. The process starts by taking required credit counseling. There is usually a fee for the counseling and it can be done online. Next, the person must complete filing forms which includes a list of creditors and the amount owed. It is best to have a lawyer help with the process. Paperwork errors can be viewed as deception by the court. The bankruptcy trustee uses the forms and proof of income to design a repayment plan.
The automatic stay is one of the best things about filing. The court issues this order and creditors have to stop collection activities. This includes foreclosure and repossession. The stay is in effect for the duration of the bankruptcy. The only thing that stops it is if the debtor stops making payments. Anyone filing Chapter 13 in Dayton OH needs to know the process is not easy. Indeed, most of the filer’s disposable income is used to repay debt. There is not much money left for eating out and shopping sprees. Let the attorney know if you are having a hard time making payments. They may be able to work something out with the trustee.
Car loan and mortgage arrears are paid over time through the bankruptcy. However, the filer must make the regular payments. Sometimes, loan and mortgage companies are willing to cram down debt. This is allowed when the amount owed on a car or home is greater than their value. The difference becomes unsecured debt. And, most unsecured debts are discharged. The most common debts that are discharged include credit cards and medical bills. A downside of filing Chapter 13 in Dayton OH is that it stays on the credit report for several years. However, most people do not have a problem getting credit if they want it. Credit card companies are more than willing to offer you more debt. The important thing is that bankruptcy offers a fresh start. It is smart to learn from the past and stay away from financial hardship.