When it comes to Chapter 13, Dayton, OH courts must be provided with the right information to proceed with your case. First of all Chapter 13 is a form of bankruptcy that will allow you to keep your property but forces you to pay back debt within a 3 to 5 year plan period. Unlike Chapter 7 which is basic bankruptcy, you will have to pay back your debts but you do not have to surrender the things you have earned. Chapter 13 basically protects you from repossessions and wage garnishing do to alimony, child support, debts etc.
How to Know if you are eligible?
Chapter 13 is not for everyone since you are required to prove you can pay off all your debt within a time period. This also has limitation to the amount of debt regarding whether it is too high or too low.
When you are filing eligibility for Chapter 13, Dayton, OH courts need to know if you can continue paying all of your current bills, fulfill all your current obligations, and still meet the court’s requirements to pay back the debt. Sometimes when you have upcoming debts like a car loan, home mortgage, or school loans, the courts will add these debts to your current ones and decide against allowing you to file Chapter 13. Dayton, OH even has to take into account the differences with your secured debt and unsecured debt.
Finding Counsel
Courts require you seek counsel to help you understand about Chapter 13. Dayton, OH has standards on how you will pay debts and counseling will help you understand what is best for you. Most of the hime counseling is free or very low payments are needed.
Priority Debts
When you file Chapter 13, Dayton, OH lawyers will then explain to you the importance of priority debts. These debts are very important and are a major obligation to your payment requirements. Some of these debts include spousal support, child support, and even wages you owe. If you have major tax obligations you must also pay that as well.
All priority debts must be included in your plan for rehabilitation. There will also be situations where you can be placed in judgement if you are falling behind. This is why all payment methods when determining the focus of your file is based off of your disposable income.
How will it end?
Once you have fulfilled the court’s obligations, all debt will be expunged from your credit history. You will first have to prove to the courts that all other bills are up to date and are paid in full. If you can not fulfill the obligations of Chapter 13 then you might be eligible to re file for Chapter 7.
To get more information about Chapter 13 in Dayton OH please contact Albert & Krochmal Attorneys and get professional advice right away.