When a visit to the mailbox brings anxiety due to piles of unpaid bills and threatening collection letters, something must be done. When the telephone rings non-stop, not due to the debtor’s popularity but from bill collectors threatening legal action if outstanding debts aren’t settled immediately, there must be a way out. Fortunately, there is a way to stop the seemingly never-ending harassment from bill collectors while giving the debtor time to set up a plan to pay back a portion of their debt owed. The way to do this is through bankruptcy protection. To begin this process, the debtor will need to speak to a lawyer who specializes in bankruptcy law, such as Dean Snyder, Attorney. He will help his client understand the difference between a chapter 7 and chapter 13 bankruptcy in Cincinnati, OH, and help determine which is the more appropriate type for the debtor’s given situation.
For those who have a steady income, a chapter 13 may be the better choice. These debtors are able to keep many of their assets while still satisfying their debts. While attending mandatory credit counseling, a repayment plan will be put together and proposed to the court. This allows the debtor to repay a portion of their debts over a three(3) to five(5)-year period, while still maintaining their other financial obligations. Though the amount of the payback over this period may amount to only “pennies on the dollar,” when the plan is completed as agreed upon, the remaining debts included in the plan are disposed of, and the debtor is considered debt-free.
Of course, this plan does take a commitment of a monthly payment to the court-appointed trustee. Non-payment can cause the plan to be dismissed and open the debtor back up to unwanted collection tactics from debt collectors. Extenuating circumstances, such as job loss or illness may allow the plan to be discharged early or allow the conversion of the plan from a chapter 13 pay-back plan to a chapter 7 plan for debtors with no assets or means to repay. An attorney can help with these decisions.
Nobody wants to wake up everyach day to harassing phone calls and threatening letters from bill collectors. Fortunately, there is protection available. Talk to a lawyer who works with chapter 7 and chapter 13 bankruptcy in Cincinnati, OH today to stop the calls by tomorrow.
