Whenever anyone is facing foreclosure Cincinnati lawyers will know exactly how to circumvent the problems so that the debtor will hang on to some of his possessions that he has built up over the years. A Cincinnati bankruptcy attorney will be able to advice on the best course of action to get out of the financial mess and go forward with their lives. For many people, in these times of financial insecurity brought about by the world economic meltdown, finding themselves up to their ears in debt, without withno means to repay it at all, is becoming more common.
Many people will simply just not know what to do when creditors are coming perhaps to the home to harass for payment or to seize the goods in question. However, debt lawyers have all the tools to lead the debtor through this difficult time so that the person does not lose everything. There are two filings that are appropriate in most cases but it is up to the lawyer to find which is appropriate to be applied and presented to the court for a decision. Chapter 7 deals with debt that is run up by the individual or group and which is subject to interest payments and late charge fees which will find them drowning in debt.
If the court allows Chapter 7 to be filed, then the debts will literally be taken off the books so that the individual or group can be free from it. However, it does entail some rather demeaning tests to see if the expenses of the household are absolutely necessary. This means test must be applied if Chapter 7 is to be granted but many people do not like the thought of having their personal lives examined. What happens is that all the reasonable expenditure is taken into consideration and then compared to the income of the individual. If the income is more than the expenditure, then Chapter 7 is not appropriate in this case. If the income is less than reasonable expenditure then the debt will be wiped off the books forever.
Chapter 13 is slightly different in that this means that the debtor will pay what he owes but in an extended period. When the income is more than reasonable expenses, the court will add the debts as if they were one. They will then work out a payment plan, over time, which the debtor will have to service but with lesser amounts than normal. The benefit of this one is that no credit fees or late fees will be charged which makes it easier for the debtor.
The one good thing about applying for either Chapter in court is that creditors are banned from chasing the debtor or communicating giving the debtor some relief. The debtor will no longer be harassed or chased down for the debts which makes it easier to live for sure. Although these Chapters were put into place to help beleaguered individuals, it is much better not to get involved with the courts if at all possible since the person will lose out on credit scores which will affect daily living for the future.
Many people will simply just not know what to do when creditors are coming perhaps to the home to harass for payment or to seize the goods in question. However, debt lawyers have all the tools to lead the debtor through this difficult time so that the person does not lose everything. There are two filings that are appropriate in most cases but it is up to the lawyer to find which is appropriate to be applied and presented to the court for a decision. Chapter 7 deals with debt that is run up by the individual or group and which is subject to interest payments and late charge fees which will find them drowning in debt.
If the court allows Chapter 7 to be filed, then the debts will literally be taken off the books so that the individual or group can be free from it. However, it does entail some rather demeaning tests to see if the expenses of the household are absolutely necessary. This means test must be applied if Chapter 7 is to be granted but many people do not like the thought of having their personal lives examined. What happens is that all the reasonable expenditure is taken into consideration and then compared to the income of the individual. If the income is more than the expenditure, then Chapter 7 is not appropriate in this case. If the income is less than reasonable expenditure then the debt will be wiped off the books forever.
Chapter 13 is slightly different in that this means that the debtor will pay what he owes but in an extended period. When the income is more than reasonable expenses, the court will add the debts as if they were one. They will then work out a payment plan, over time, which the debtor will have to service but with lesser amounts than normal. The benefit of this one is that no credit fees or late fees will be charged which makes it easier for the debtor.
The one good thing about applying for either Chapter in court is that creditors are banned from chasing the debtor or communicating giving the debtor some relief. The debtor will no longer be harassed or chased down for the debts which makes it easier to live for sure. Although these Chapters were put into place to help beleaguered individuals, it is much better not to get involved with the courts if at all possible since the person will lose out on credit scores which will affect daily living for the future.
About the Author:
Connor R. Sullivan recently worked with a foreclosure Cincinnati specialist while conducting research for a new article. His son is looking forward to working with a Cincinnati bankruptcy attorney during his internship.
