Know About Chapter 13 Bankruptcy in Cincinnati

Posted byPaola Nadeau on Nov 2020 in Finance and investment | 0 comments

Chapter 13 bankruptcy in Cincinnati is one among the more commonly used chapters of bankruptcy, after Chapter 7. Chapter 13 doesn’t contain liquidation like Chapter 7. Normally a debtor of Chapter 13 is allowed to keep his property, whether it is discharged or not, as long as the plan of Chapter abides with the law. Chapter 13 is more expensive compared to Chapter 7 when it comes of fees of attorneys, since the procedure is very difficult.

Time Obligation

Compared to Chapter 13, Chapter 7 is a brief procedure, which always lasts for few months. Chapter 13 will last for three to five years. This lengthy duration is because of the fact that Chapter 13 includes monthly payments to the trustee of Chapter 13 for the duration of the plan. The duration will differ from three to five years, based on whether your income is normally below or above the average income of the state where you live.

Plan of Payment

The payment plan of Chapter 13 depends on how it works. Chapter 13 bankruptcy in Cincinnatiis an attempt to organize a debt of an individual once again by paying some creditors gradually. The income of the debtor is evaluated by the means test, which decides the extra income of the debtor. The additional income will be utilized to make monthly payments. Based on the calculation of means test, there may not be any allocation to creditors who are not secured, such as medical bills and credit card companies. But the plan of Chapter 13 should always pay claims on priority, such as responsibilities of domestic support, tax debt and child support.

Requirements of Plan

The Chapter 13 bankruptcy in Cincinnati should meet different tests to be approved or confirmed by the court of bankruptcy. First of all, the plan should be suggested in good faith. The debtor aims to follow through the plan completely and is not trying to mislead his finances or responsible for a mischief on the court. The plan should also meet the test of best interest of creditors. This test needs that Chapter 13 plan should pay creditors who are not secured, they should be paid at least why would have had under the bankruptcy plan of Chapter 7. In most cases, the unsecured creditors wouldn’t have received anything in Chapter 7. Another test called bet efforts test needs that plan of Chapter 13 pay unsecured creditors amount more than the disposable income of the debtor.

Chapter 13 Trustee

Just like Chapter 7 trustee, the trustee of Chapter 13 acts as the important contact for a debtor. The trustee will get the suggested payment plan of the debtor and can challenge the plan in court of bankruptcy if he or she thinks that it is not appropriate. If the plan of Chapter 13 is validated by the court of bankruptcy, the trustee acts as a medium between the creditors and debtor obtaining payments. Particularly, the debtor makes payments every month to the trustee. Resource Box:

Robert F. Holmes LLC firm is the best place if you are looking for attorneys who can help you file for Chapter 13 bankruptcy. You can personally meet the professionals and explain them about your case in order to get proper assistance. Go through their website: http://www.cincinnatiohbankruptcy.com/ for more information on their services.