Ohio consumers could utilize a bankruptcy case to settle a majority of their debts. While chapter 7 has the quickest turnaround, some consumers may lack the assets needed to generate adequate funds to settle their debts. For these consumers, chapter 13 is a more effective opportunity. Chapter 13 bankruptcy in Hamilton, OH gives them this opportunity by presenting a clear plan to eliminate their debts.
Credit Counseling Programs
All consumers regardless of what chapter they choose must complete credit counseling programs. These programs required must be approved by the consumer’s resident state. They teach consumers techniques for managing their finances to prevent further delinquencies or charged off accounts. They also show consumers how to avoid overwhelming debt in the future and strategies for improving their credit, which include the benefits of filing for bankruptcy.
Identifying Expendable Income
During a chapter 13 case, the consumer must use all their expendable income to pay off additional debts. The plan identifies an exact value for their expendable income based on their wage structure. This excludes monthly obligations such as household expenses including rent or utility payments. It also excludes the value assigned to their monthly bankruptcy payments. Consumers who don’t follow this requirement could face a discharge of their bankruptcy case.
Following the Plan Thoroughly
The court outlines the requirements for the chapter 13 bankruptcy cases. They determine the value assigned to each debt included in the case. The total value of the monthly payment includes each of these payments. Any debts that are discharged by the judge aren’t included in the payment plan. The judge eliminates the responsibility of these debts through discharge. This step deems them paid off.
Steps for Repairing the Consumer’s Credit
The consumers learn steps for repairing their credit through additional credit counseling programs. This includes managing their credit after the bankruptcy case has concluded. This includes managing any debts left over after the case is over.
Ohio consumers should review the exemptions provided through bankruptcy cases. These values may reduce their total debt and make them more manageable. Consumers who need a clear solution should start a case for bankruptcy in Hamilton, OH by contacting us now.
