All Ohio consumers must complete the requirements for filing a bankruptcy claim. These requirements designate that the consumer completes a state-approved credit-counseling program first. They must also provide documentation for their income to qualify for their preferred chapter.
Qualifying for Chapter 13
The first step for qualifying for chapter 13 is to prove that the income level is higher than the county’s median. Currently, the average household income for Montgomery County is $40,156. All income levels above this median qualify for Chapter 13 in Dayton OH. These consumers maintain the option to utilize chapter 7 as well. However, chapter 7 is the only option for any income level below this average.
Preparing for Chapter 13
The purpose of chapter 13 is to create a repayment plan. The plan requires the consumer to use all income except the value designated for household expenses. The court also deducts the value of any existing monthly obligations that aren’t included in the bankruptcy claim. In most cases, the value of the assigned monthly payments is deducted from the consumer’s wages.
The terms of the chapter 13 claim require the consumer to use all disposable income to pay outside debts. These are debts that aren’t included in the bankruptcy claim. The attorney representing the consumer could negotiate with these creditors to help the consumer acquire a more effective repayment plan.
What to Expect After Chapter 13
The bankruptcy remains on the consumer’s credit report for up to ten years. However, as each debt is paid in full, the consumer may request that the creditor remove it from their credit reports. This could help the consumer to rebuild their credit. Some consumers may be required to attend a credit rebuilding course to help them learn how to manage their finances more efficiently.
Chapter 13 in Dayton OH is a repayment opportunity to help consumers settle their debts. These cases provide an automatic stay to prevent foreclosure and repossession. These claims take up to five years to complete. The automatic stay remains for the full duration of the case. To learn more about bankruptcy, contact an attorney promptly.
