Bankruptcy is the legal way that many individuals and businesses seek to opt for when they are unable to pay off their debts. It is not a desirable choice but sometimes, during grim economic phases, one is left with no other option but filing a bankruptcy.

Filing a bankruptcy case can be a very difficult decision and involves many complexities. It is not advisable for a person to take over the burden of handling the legal procedures all by himself. One needs assistance from an experienced attorney in order to understand the ramifications of the lawsuit and filling up the paper-work correctly.

One of the options of bankruptcy is chapter 13. The main purpose of this chapter is consolidation of debts and setting up of a feasible monthly payment system. Once you decide to file a bankruptcy case, your attorney will help you to decide as to which chapter will be appropriate for your situation. This is a vital decision and takes into account your whole monthly income status.

Chapter 13 bankruptcy involves a thorough analysis of your income, monthly expenses and total debts. It is often referred to as the ‘wage earners plan’. The process of the chapter 13 bankruptcy is intricate. After filing a case, a debtor will send in a proposition of repayment plan for obligations and debts, if any. Bankruptcy court will review the proposal and if it gets approved, a trustee will be appointed who will take over the total assets of the debtor and distribute them among the creditors. The trustee will be responsible for controlling the debtor’s financial needs during the repayment phase. The debtor needs to get all the credit-related issues reviewed and approved from the trustee. The repayment phase is usually a period of 3-5 years, during which the debtor’s expenses will be strict and court-imposed. He would not be allowed to make any non-essential expenses during this period.

Chapter 13 bankruptcy has many advantages over chapter 7 bankruptcy, particularly because it offers debtors a chance to save their homes by putting a halt to foreclosure proceedings.

A qualified attorney is the only person who can review your case and help you to decide whether you can file a chapter 13 bankruptcy. Montgomery County, OH citizens who are facing financial problems can contact Bankruptcy Law Office Dayton to get expert advice and consultations from highly experienced bankruptcy attorneys.


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