Legal Help with Debt Consolidation in Dayton Ohio

by | Aug 1, 2014 | Lawyers


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Miami Valley Bankruptcy of Dayton Ohio is a law firm providing assistance with debt relief. If you’re struggling with the monthly amounts you owe your creditors, debt consolidation through a Chapter 13 bankruptcy may provide you some relief. Miami Valley Bankruptcy will help guide you through the process of debt consolidation in Dayton Ohio.

A Chapter 13 bankruptcy differs from a Chapter 7 bankruptcy in several ways. While a Chapter 7 bankruptcy completely discharges most of your debts, a Chapter 13 bankruptcy restructures the amounts of your monthly payments. A court determines your payment plan based upon your income, the total amounts you owe, and the length of time it will take to repay your debts. Under a Chapter 13 bankruptcy, you pay back the majority of your debt over the course of three to five years. Miami Valley Bankruptcy will file a Chapter 13 bankruptcy on your behalf, suspending any foreclosures, court judgments, lawsuits, wage garnishments and collection calls.

As you begin searching for solutions to Debt Consolidation in Dayton Ohio, it’s important to consider the advantages and disadvantages of a Chapter 13 bankruptcy. You want to ensure you’re agreeing to a solution that serves your best interests. A Chapter 13 bankruptcy typically allows you to keep your secured property, including your vehicle and home. Depending upon the settlement agreement, you may eliminate most of your unsecured debts and renegotiate the payments on your secured debts. Unsecured debt does not have any valued property associated with it. An example of unsecured debt is your credit card balances.

What’s different about a Chapter 13 bankruptcy is that it allows you to include debt you may owe the government, such as student loans and unpaid taxes. The government does not permit you to discharge these debts, but you can adjust when and how much you pay. Student loan debt is not something you can eliminate or get rid of under a Chapter 7 bankruptcy, unless you have a qualifying exception such as a permanent disability.

One of the disadvantages of a Chapter 13 bankruptcy is that it limits the amount of debt you can incur. You cannot use any credit cards or purchase anything on credit without approval from the bankruptcy trustee. If you file, a Chapter 13 bankruptcy will remain on your credit report for 10 years. Your agreed upon monthly payment may also be deducted from your paycheck.