Getting into debt can have a profound impact on your life. Strained relationships, repossessions, wage garnishments, and court judgments are all possible results of owing a substantially larger amount of money than you have coming into your household. Luckily, there is an option that allows people to resolve debts they are unable to pay. This legal status is known as bankruptcy. Chapter 13 in Dayton OH is one of the three chapters people file under the most. Learn about this legal option so you can get a fresh financial start in life.
Article I, Section 8, of the United States Constitution gives Congress the right to enact fair and consistent bankruptcy laws. A federal bankruptcy court is where bankruptcy cases are heard. A United States bankruptcy judge is the person who makes the final decision in bankruptcy cases. Chapter 13 in Dayton OH is for a debtor with regular income. With Chapter 13, get to retain possession of your property while you repay a majority of what you owe your debtors. This time period can be from three to five years. This chapter of bankruptcy requires you to use your personal wages to repay some or all of your creditors.
Part of filing for Chapter 13 entails providing proof that you have adequate income to make payments according to a plan drawn up by a trustee of the court. When you have sporadic or insufficient income, the court may not let you file for bankruptcy. Having income above an acceptable range can make you ineligible for bankruptcy as well. A bankruptcy court will look at your secured and unsecured debts to see if they are too high for you to qualify for bankruptcy. You will often have to pay priority debts such as child support payments and alimony in full before other debts are considered.
To file for any type of bankruptcy, you will need to see a bankruptcy attorney. Before you do this, learn more about Chapter 13 bankruptcy. Most bankruptcy lawyers have information on their websites or can provide potential clients with appropriate literature. Educating yourself on these details will help you get started on a new life freer of debts.
