You have recently made some new financial goals and have decided that in order to accomplish them, you need to be doing things to reduce the amount of debt you owe to creditors. Managing debt and creating a realistic method for paying it off is an excellent way to revitalize your financial future and give yourself a head start at financial security. At Debra Booher & Associates CO., LPA, we have helped many individuals in Ohio to explore their options for reducing the amount of money they owe.
One of the reasons many people in Ohio feel good about filing a Chapter 13 bankruptcy is that they get to keep their homes. However, if you are already considerably behind on the mortgage, and the payments are large, it may be difficult to catch up while continuing to make the regular monthly payment. According to SFGate.com, it may be possible to modify the mortgage during the bankruptcy.
Perhaps one of the reasons you opted to file a Chapter 13 bankruptcy in Ohio was because you do have an income, even though it is not large enough to cover all your debts each month. While the payments are reasonable and you have been able to keep up so far, a single financial crisis could derail your efforts. We at Debra Booher & Associates Co., LPA, often advise clients about the dangers of falling behind on their monthly Chapter 13 plan payments, and what to do if this could become a possibility.
Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two most common forms of personal bankruptcy. They both offer varying degrees of financial freedom, while also providing unique benefits to the filer. So what are the differences between these two forms of bankruptcy and how can you best utilize them?
Many Oklahoma residents choose to file bankruptcy as a solution to their debt problems. Equifax, a major credit reporting company, has traditionally treated Chapter 13 bankruptcy filers differently than the other two major credit reporting companies by displaying the bankruptcy on a consumer's report for three more years than the other companies. Recently, the company has elected to make changes to that policy.
Starting on Sept. 15, there will be a 180-day waiting period before an unpaid medical bill can show up on a credit report. Also starting on that date, medical debts in collections that are paid by an insurance provider will be deleted from a credit report. While that may be good news for some Ohio residents, it may not help everyone who has poor credit because of unpaid medical bills.
A Chapter 13 bankruptcy is one in which a person works out a payment plan to repay creditors over three or five years. Some Ohio filers may be concerned about their ability to rent or buy a home after the bankruptcy. While this becomes more difficult after they declared bankruptcy, there are steps that can be taken to increase the likelihood that a landlord or lender will work with them.
Ohio residents may believe that working with a debt settlement company is better than filing for bankruptcy. However, the impact to a person's credit score may be the same regardless of which option is chosen. In some cases, an individual could see his or her credit score fall into the 500s, which is generally considered fair or poor.
Ohio consumers who are considering filing for bankruptcy might want to be aware of new rules that may affect their cases. The rules, which were issued by Chief Justice John Roberts of the Supreme Court of the United States in April and sent to Congress, will modify several aspects of Chapter 13 bankruptcy proceedings.
There are many issues that Ohio residents may need to be aware of when it comes to how filing bankruptcy may impact their finances. The good news for those with a 401(k) or an IRA is that money inside of those accounts are often off-limits to creditors. The only exception is that the IRS may levy those funds if there are back taxes owed.