When to Use Chapter 13 in Dayton OH as Opposed to Chapter 7

Bankruptcy allows people who are unable to manage their bills the option to reduce or eliminate them legally. Chapter 7 is typically used by those who have few assets, don’t own a home and don’t earn a lot of money. Those who do own property but are in financial trouble can use the bankruptcy code but Chapter 13 most often benefits them. With Chapter 13 bankruptcy, also know as debt reorganization, people can pay off outstanding debt over three to five years and often at lower interest rates. While Chapter 7 eliminates many debts with no obligation to pay any of the balances, there are some good reasons to choose Chapter 13 instead.

* Some people simply don’t qualify for Chapter 7 bankruptcy but still want debt relief. For these people, Chapter 13 is an option.

* Homeowners who are behind on their mortgage but want to keep their home might be able to avoid foreclosure though

* Chapter 13 in Dayton OH.

* Those with secured debts or family obligations which cannot be discharged through Chapter 7 can use Chapter 13 to pay them off over time without the constant harassment of the creditors.

* Anyone who sincerely wants to repay the debts they incurred can do so through Chapter 13 bankruptcy.

* Someone who opened a credit account with a co-borrower might choose Chapter 13 so the other party doesn’t become responsible for the entire debt.

An attorney who focuses on bankruptcy is probably the best person to talk to if you need help deciding which method is best for reducing your debt. Your attorney might advise you of your options and tell you whether filing Chapter 13 would benefit you more than Chapter 7. If you do choose to use Chapter 13 in Dayton OH, you will need to make monthly payments to the bankruptcy trustee. The trustee will pay your creditors based on a schedule that determines their priority. Your creditors cannot ask you for additional money while you are in bankruptcy. At the end of your repayment period, the remaining balances on any debts that haven’t been repaid might be discharged.

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