When a person decides to file Chapter 13 in Dayton OH, it provides them with the ability to pay off their debt within a period of three to five years. When this type of bankruptcy is filed, the court will issue what is called an “automatic stay” to creditors, just like they do in the Chapter 7 filings. However, when a person opts to file for Chapter 13 bankruptcy, they will typically be able to retain ownership of their property, rather than having to liquidate their assets. They will also propose a plan that outlines how they will repay all, or some, of their debt over time.
When a person opts to file for Chapter 13 in Dayton OH, they will have to make payments on a regular basis to a trustee. This is the person who will then distribute the funds to the creditors who are owed money.
Not everyone will qualify to file Chapter 13 bankruptcy. This is because only those with a steady source of income will be able to adhere to the requirements of this filing. If they don’t have income, they will not be able to make the necessary payments.
For those who are considering filing bankruptcy, there are a number of advantages that go along with filing for Chapter 13. One benefit is the fact that if they have equity in their home, it can be protected when the real estate exemption is used. This also means they will be able to retain ownership of their home.
Another advantage is the fact that if a co-signer is involved in the debt, then filing for Chapter 13 will protect that individual. There are a number of people who will need to file for this type of bankruptcy even if they don’t have large amounts of equity in their home. In order to determine the best option for a particular person, it is a good idea to consult with a bankruptcy lawyer.
The bottom line is that filing for Chapter 13 bankruptcy offers a person several more options than filing Chapter 7. This includes the ability to retain possession of their assets. It is a good idea for anyone considering this type of action to Contact us Attorneys to learn about the best option for their situation.