Bankruptcy – the word all by itself sounds intimidating. Most folks who find themselves in a place of bankruptcy did not have that laid out in their life’s blueprint. But, it happens. It happens for Ohio residents who have always paid their bills and suddenly get circumstances dumped in their laps, completely out of their control; it also happens for those who have always had difficulty staying on top of their debts.
Either way it comes, though, bankruptcy can intimidate even the savviest financiers. How is someone to choose which type of bankruptcy to file and how the process should start?
FindLaw offers some insight for those who are wondering. Chapter 13 is one of several options, and it is a good idea for debtors to make this choice when they want to keep their homes. It is not always possible to stop foreclosure, as much is dependent on circumstances and previous bankruptcy history. However, some debtors may find they can “permanently stop a foreclosure” when they file for Chapter 13.
Another reason FindLaw says debtors may want to choose this option is to devise a plan to repay their debt: “In Chapter 13, the debtor will make monthly payments in a three or five-year plan to the bankruptcy trustee for the distribution to creditors.”
The American Bar Association adds that debtors may also keep their vehicles when they file for Chapter 13 rather than another bankruptcy plan. Of course, this is dependent on debtors making all necessary payments for amounts they still owe.
Debtors who file Chapter 13 bankruptcy usually have three years to repay their debts.