The chosen chapter of bankruptcy should reflect the consumer’s intentions. For instance, consumers who are close to defaulting on their mortgage should file for chapter 13 to prevent foreclosure. This chapter is the only solid guarantee that he or she has to remain in their home. With chapter 7, the automatic stay lasts as long as the case which is roughly six months. Unless the consumer can catch up their mortgage payments in this amount of time, they will lose their property. Any consumer facing Foreclosure Dayton Ohio should contact an attorney.
Weighing the Benefits
Consumers with a vast amount of assets could benefit greatly from a chapter 7 bankruptcy. This is if they can manage to settle their debts through these sales and protect their home in the process. However, they must realize that if the equity in which they have accumulated is more than what they owe on the home, the court may instruct them to sell it. The homestead exemption does not apply when this is the case.
Chapter 13 does protect their primary residence more fully when they are close to Foreclosure Dayton Ohio. The bankruptcy lasts at least three years, which allows more time to catch up overdue balances. The property is included in the claim, and payments do apply to this debt in chapter 13. Unfortunately, consumers with low-income levels may not pass the means test and qualify for this chapter. Any income lower than the county median is eligible only for chapter 7.
The Benefits of a Bankruptcy Attorney
Consumers who are not eligible for chapter 13 can utilize the services of a bankruptcy attorney to assist them in avoiding foreclosure. They should bring all mortgage documents for their consultation. An attorney in this field is aware of predatory lending practices. They may also assist the consumer in modifying their loan. If unethical terms are discovered the borrower may have leverage to file a claim against the lender.
In terms of further debts, the attorney could help the consumer acquire settlements. These values are significantly lower than the current balance. If possible, the attorney could help them settle these debts outside of bankruptcy.
