It can be disheartening and overwhelming to know that you cannot manage
your debt on your own. This feeling of helplessness may only get worse
when you fall behind on your mortgage, eventually receiving threats of
foreclosure from creditors. The threat of losing your home can make you
feel like all hope is lost, but you may still have an option in the form
of Chapter 13 bankruptcy.
Chapter 13 is an option for individuals with certain types of debt, and this may
be a beneficial choice by which you can halt the foreclosure process and
regain good financial standing. Filing for bankruptcy is not the ideal
option for every situation, but it may offer you a way to deal with debt
and keep your Ohio home.
What should I expect from the Chapter 13 process?
It is normal to have reservations about the Chapter 13 bankruptcy process.
It can be helpful to understand how the process works and what you will
have to do as the applicant. Once you file a petition with the court,
you will also have to submit the following:
- List of your assets and liabilities
- Outline of your current income and expenditures
- List of any current leases
- Full statement of your current financial state
- Evidence of payment from employers
- Copy of your debt repayment plan
Additionally, the applicant must also provide a tax return from the most
recent year and any tax returns filed during the bankruptcy process. Two
spouses may choose to file for Chapter 13 bankruptcy together.
After I file, what happens next?
Upon filing for bankruptcy, the automatic stay will go into effect. This
stops all collections actions against you and halts all contact from creditors,
including any foreclosure proceedings. This allows you time to pay on
your outstanding balances according to the terms of your
debt repayment plan.
A few weeks after the initial filing, you will have to attend a meeting
of the creditors. You will be under oath and will have to answer any questions
regarding your finances and repayment plan put forth by the trustee and
any creditors who attend the meeting.
Seeking a strong financial future
You may have certain reservations about filing for Chapter 13 bankruptcy,
but it would be a reasonable way by which you can confront and get rid
of your debt once and for all. In addition to saving your home from the
foreclosure process, you can actively pursue a stronger, more stable financial future.