When the cost of living goes up, you may not be able to sustain your family needs with the income you get. If that is your situation, you will need to get financial assistance from your friends, relatives or financial institutions such as your bank and pay them back later as agreed. You might not be able to pay back the loan fully and in time as agreed and your creditors may threaten you with foreclosure or garnishments. In such a case, you should consider filing for Chapter 13 Bankruptcy in Hamilton OH to seek relief from your creditors.
However, filing for bankruptcy should be the last option as the actions you take may have great negative impacts in your future financial activities. The following are some of the things you should know before filing for bankruptcy:
The type of bankruptcy to file
There are several types of bankruptcy applications you can make which are based on Chapter 7, Chapter 11 and Chapter 13, in Title 11 of the United States Bankruptcy Code. Each type has varying provisions and may have a different impact in your bankruptcy case. For example, filing for Chapter 7 may lead to cancellation of all your unsecured debts. However, you may have to give any non-exempt property you own to a trustee who redistributes the liquidation proceeds to your creditors.
On the other hand, when you file for Chapter 13 bankruptcy, you get to retain most of your essential properties as long as you commit to the court that you will continue making necessary payoffs to your creditors. This type of bankruptcy involves financial reorganization whereby, you make a convincing repayment plan which must be approved by the court.
Filing for bankruptcy affects your credit score
When you file for bankruptcy, your financial records will indicate that for several years to come. This works against you especially when you apply for a loan in any money lending institution. The lender may either reject your application or significantly reduce the amount you applied for to minimize their risk. Your insurance company may also review and increase your premiums thus increasing your financial obligations.
There are other factors you should consider before applying for Chapter 13 Bankruptcy in Hamilton OH. Consider consulting R. Dean Snyder Attorney or visit their website: http://www.deansnyderattorney.com for more details about bankruptcy laws.