Filing for bankruptcy is a personal decision, but in some cases it is the easiest way for individuals with bad credit to gain a new financial start. People who choose to declare bankruptcy should contact a Chapter 13 Bankruptcy in Hamilton OH lawyer to find out if it is the right choice for them.
What Is Chapter 13 Bankruptcy?
Chapter 13 individuals manage their debt better. Individuals who file for Chapter 13 bankruptcy have the ability to pay their creditors without dealing with high interest rates. This type of bankruptcy option is better for individuals who have a steady cash flow and are able to make payments to their debtors on time with a restructured payment plan. Whereas Chapter 7 involves liquidating assets, Chapter 13 bankruptcy uses income as a form of repayment. People must demonstrate that they make enough money to pay their creditors under the new plan.
How Does Chapter 13 Bankruptcy Work?
The details of a Chapter 13 Bankruptcy plan will be designed by a Chapter 13 Bankruptcy in Hamilton OH lawyers and finalized by a judge. People have 30-45 days to start the repayment process that they have agreed to. Entire debts can be erased without individuals having to pay high interest rates.
What are the Benefits of Chapter 13 Bankruptcy?
Individuals who file for chapter 13 Bankruptcy do not have to worry about losing their home or assets. They are eligible to keep their belongings as long as they follow the guidelines of their repayment plan. Creditors are also not allowed to have further communications with individuals who have filed for Chapter 13 Bankruptcy. As a result, there will no longer be calls throughout the day from debt collectors trying to settle old debts using aggressive tactics. People will also no longer receive mail threatening to have their bank accounts frozen.
Why Should Bankruptcy Lawyers Help People File For Chapter 13?
A Chapter 13 Bankruptcy lawyer will make sure that all items, such as a list of assets, a list of expenses, contracts and lease agreements, a copy of a repayment agreement and proof of income, will be included in a partition. R. Dean Snyder Attorney can make sure all needed paperwork is filed for their clients and set a confirmation date to review the items in court.
