Debtors living in Ohio may benefit from learning more about a U.S. Supreme Court ruling on May 4 that may affect Chapter 13 bankruptcy. The unanimous decision decreed that debtors filing Chapter 13 bankruptcy do not have the right to appeal a court's refusal to ratify a repayment plan. The property owner involved with the case originally filed for Chapter 13 bankruptcy voluntarily during December 2010. Throughout the next two years, he amended his repayment plan three times.
Many Ohio homeowners that are dealing with overwhelming debt are also seriously delinquent on their mortgage payments. As a result, they may be in danger of foreclosure. In some cases, they may have already received notices of their lenders' intent to initiate foreclosure proceedings against them.
An Ohio resident may opt for Chapter 13 in filing for bankruptcy for differing reasons. This approach allows for repayment of debts in part or in full over a period of three to five years. Advantages in opting for Chapter 13 include the ability to potentially save a home from foreclosure. Other secured debts may be rescheduled as well, possibly with lower payments. Some choose Chapter 13 because their financial means testing indicates that they are ineligible for Chapter 7, a liquidation approach to bankruptcy.
Ohio residents in debt may be interested in filing bankruptcy without losing some of their property. Filing chapter 13 bankruptcy allows an individual to keep their home while setting up a plan to pay their debts over a three to five year period. The period is determined by the debtor's income and debt level. A chapter 13 bankruptcy stops creditors from using wage garnishment or continuing foreclosure proceedings in an attempt to collect on outstanding debts.
Ohio residents who have declared Chapter 13 bankruptcy might wonder how divorce would affect their bankruptcy. Changes in financial status after a divorce may necessitate modification of the original payment plan or conversion to a different type of bankruptcy.
For many people in the Cincinnati area, filing for bankruptcy may be the best option for their situation. Whether it's Chapter 7 or Chapter 13, filing for bankruptcy is often a difficult choice, but one that can allow for some semblance of moving forward while decreasing debt.
Despite their best efforts, some hard-working residents of Ohio may find themselves in a financial bind. When faced with large amounts of debt, it may be that their best course of action is to file for bankruptcy. An experienced Ohio bankruptcy attorney can help someone considering this option, whether it be Chapter 7 or Chapter 13 bankruptcy.
Since the popularization of the credit score, it has been true that filing for bankruptcy in Ohio or anywhere else in the country can have a detrimental impact on a person's credit score. However, when it comes down to it, many people find that filing for bankruptcy, such as under Chapter 13, can be a steppingstone to financial freedom and moving on from a difficult situation.
Many people in Ohio who are contemplating filing for bankruptcy probably have several different kinds of debt responsible for their financial woes. While credit card debt is often a primary driver of difficult financial situations, many people with large amounts of credit card debt also have debt in the form of unpaid taxes.