Will Filing Chapter 13 Bankruptcy Reduce Your Debt?
Are you considering filing for bankruptcy in Columbus or anywhere in central Ohio? There are several factors that determine the best chapter in bankruptcy for a consumer to file – Chapter 7 or Chapter 13. A Chapter 13 bankruptcy allows consumers to protect their home, car(s) or other assets, and determine a three- to five-year strategy for working through their financial challenges.
Who Should Consider The Chapter 13 Bankruptcy Option?
- Individuals or families trying to keep their home – Immediately stops foreclosure/sheriff’s sale
- Those who have a wage or bank account garnishment
- Those who know they probably can’t qualify to file a Chapter 7 bankruptcy because of their disposable income or other limitations
- Increases in property taxes
- Remove subordinate liens (i.e. second mortgage) when first mortgage exceeds the value of the property
- Multiple credit cards with unmanageable balances
- Protect co-signers (i.e. student loans)
Changes In Circumstances Can Lead Good People To A Challenging Financial Crisis
Most people considering bankruptcy in Columbus, Ohio, have experienced some type of major life event, and this results in a financial challenge or crisis. These can include:
- Loss of job or reduction in income
- Unforeseen medical expenses or loss of time at work due to illness
- Tax liens
- Death of a spouse
- Wage garnishment
Many people are concerned about bankruptcy and the impact it will have on their credit scores. It may surprise you to know that most people who file bankruptcy (and practice basic but sound financial prudence) begin to recover almost immediately. Many are able to qualify for rental housing, car loans, even personal loans fairly quickly. FHA will consider you for a new mortgage 2 years following the date of your bankruptcy filing.
Not taking action means your credit simply continues to drift. You may need years to catch up on collections, get payments current and balance your financial situation. Your credit score will usually remain low while you go through that time. A Chapter 13 allows you to tailor a budget to fit your own needs, and to legally discharge the debt that you can no longer afford. Usually, the re-payment plan only includes a portion of your existing debt, and consumers come out of the process financially stronger and better able to cope with and meet their financial obligations.
Contact Robert Caplan, An Experienced Columbus Bankruptcy Lawyer
I can help you to keep your home or car, and to put a stop to the harassing phone calls and letters from creditors and collectors. Contact me today, or call (614) 252-2026 to schedule a free consultation, and let’s begin to work together to bring an end to the pressure, and hope for your future.
I am a debt relief agent. I help people file for bankruptcy relief under the Bankruptcy Code.