Ohio homeowners who are struggling with serious financial challenges may understandably be considering filing for bankruptcy. The debt relief that may be achieved through a bankruptcy filing has helped countless people move forward passed their debts and develop stronger financial futures. However, for those people who own homes, it is important to understand how a mortgage factors into the bankruptcy equation.
People in Ohio and all over the nation are struggling to repay student loans, often well into adulthood. Because failure to keep current on student loans can result in continued creditor harassment and other issues, many people have considered filing for Chapter 13 bankruptcy as a means of tackling outstanding debt once and for all. If you find yourself in this situation, you may be wondering just how student loans are handled under Chapter 13 bankruptcy.
When you file for Chapter 13 bankruptcy in Cleveland, Ohio, the process may seem a bit confusing and overwhelming at first. That is why it is helpful to educate yourself about what will happen. Knowing what to expect can help you better prepare for the necessary steps to complete your bankruptcy.
Chapter 13 bankruptcy is widely considered as the most suitable method of obtaining debt consolidation and elimination in the U.S. Not only does it afford you with leeway in settlement of a debt, but also protects your assets from seizure by governmental institutions. When you file for Chapter 13 bankruptcy, you are assured of asset retention and a stable financial future, safe from prying hands of creditors.
Accumulation of debt is a major problem for people in the United States. There comes a point when it becomes impossible to pay it off. Filing for bankruptcy is a way to deal with large debts. Chapter 13 bankruptcy provides you with the opportunity to restructure your repayment plans and pay off the debt within a period of three to five years. Within that time, you can organize your finances and make alternate arrangements to pay off the debt.
Financial distress can make you feel like the world is crumbling at your feet. Unbeknownst to many people, filing for bankruptcy is one of the easiest ways out since you are assured of instant property protection, and protection from further financial ruin. In as much as this action is not a financial cure, it gives you time to sit back and strategize your recovery.
There are many incorrect assumptions about the bankruptcy process, and as a result, negative connotations surround Chapter 7 or Chapter 13 bankruptcy for many Ohio consumers. In reality, rather than being a negative choice, bankruptcy protection can provide much-needed relief for individuals and couples who are facing overwhelming debt.
Chapter 13 bankruptcy comes under Title 11 of the U.S. Code. Also known as reorganization bankruptcy or a wage earner's plan, Chapter 13 helps you impose a debt management plan on your creditors. Chapter 13 allows individuals to reschedule their debt and span it over the duration of the payment plan. Instead of selling assets to repay the debt, the debtor may use their gross income. Under Chapter 13 you may get to keep your assets. If you meet all necessary requirements, the creditors will have to follow the proposed debt management plan.
Deciding which option is the best for you is the first step you need to take in order to start paying off your debt. Chapter 13 bankruptcy and debt consolidation are two options to think about with your lawyer.