It is not uncommon for a person to find themselves in trouble financially from time to time. If the trouble is serious enough, bankruptcy might be their best option. There is more than one type of bankruptcy that a person can choose to file for. Chapter 13 in Dayton, OH has many benefits.
Less Impact on the Credit Report
One of the biggest benefits of an individual choosing to file for Chapter 13 bankruptcy is that it will have a lighter impact on their credit history. When a person chooses to file for chapter 7 bankruptcy, it will remain on their credit report for 10 years. Chapter 13 will only show up for 7 years.
Reduce What the Individual Owes
When a person files for Chapter 13 bankruptcy, the court can reduce what they owe their creditors. In many cases, the outstanding amounts that a person owes can be reduced so that they would only need to pay 80 percent, 50 percent, and even 10 percent. This will help the individual get caught up sooner so that they can become financially independent sooner.
Stop a Foreclosure Temporarily
If a person’s home is about to go into foreclosure and they file for chapter 13 in Dayton OH, the foreclosure proceedings could be stopped temporarily. The bank would be required to stop the action until after the bankruptcy hearing and during this time, the individual will have more time to spend living in their home. They can also use this time to try to come up with a new agreement with the bank or get the money to cover their overdue payments.
Keep Late Fees from Piling Up
When a person cannot afford to make their bill payments, they can accrue late fees. These fees can put a person even deeper into debt. When they file for chapter 13, the late fees will stop accruing each month, giving the individual more time to catch up, without adding to their debt.
When a person files for chapter 13 bankruptcy, their payments would be consolidated. Rather than making payments to several different creditors each month, the individual would make one monthly payment to cover all of the creditors, which makes much easier.
For more information on chapter 13 bankruptcy, Contact Albert and Krochmal Attorneys.