Studies show that the average household is in more than sixteen thousand dollars in debt. The average home costs more than one hundred and fifty thousand dollars. Besides those debts, the average student loan debt reaches almost fifty thousand dollars. It’s easy to see how this kind of debt could get out of control before too long. Fortunately, there are ways to deal with it and get everything back on track.
Refinancing is a popular option for those who have financed their home. Credit consolidation can help get credit card debts under control. And in some cases, student loans can be completely forgiven. These options help Americans crawl out from under debt and take control of their life once again. If these options are no longer available or they just won’t work, chapter thirteen bankruptcy may be the only answer.
Chapter 13 bankruptcy in Cincinnati, OH is an organized repayment plan debtors can use to eliminate some or all of their debts. By filing chapter thirteen, debtors are able to form a payment plan using what they have left each month and repay creditors some of what they owe. Over three to five years, payments will be made as agreed upon. The payment plan takes into account the income of the household and the monthly expenses needed to maintain a certain lifestyle. In most cases, the agreement is made for a three-year plan. If there is reasonable cause, a five-year plan will be made. Terms of the plan will depend on the total amount of debt and the income of the debtor.
When a debtor plans to file chapter 13 bankruptcy in Cincinnati, OH, they should contact an attorney right away. The first step in the process is to take the means test to determine eligibility. Next, the debtor will need to attend a credit counseling course and provide certification of completion as part of the initial filing. Debtors can click here to find an attorney. Working with an attorney is important because a single mistake in the paperwork could delay the filing process and provide the opportunity for creditors to file a suit.
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