Whenever anyone is facing foreclosure Cincinnati lawyers will know exactly how to circumvent the problems so that the debtor will not lose everything that they have worked for over their lifetime. A Cincinnati bankruptcy attorney will be able to advice on the best course of action to get out of the financial mess that many find themselves in.
For many people, in these times of financial insecurity brought about by the world economic meltdown, finding themselves up to their ears in debt, without having the means to eliminate that debt, is becoming more and more common today.
Many people will simply just not know what to do when creditors are coming perhaps to the home to look for their payments or return of the goods in question. However, debt lawyers have all the tools to lead the debtor through this quagmire so that at least they do not lose everything.
There are two filings that are appropriate in most cases but it is up to the lawyer to figure out which one should be applied and presented to the court for a decision. Chapter 7 deals with debt that is run up by the individual or group and which is subject to interest payments and late charge fees which only goes to make matters worse.
If the court allows Chapter 7 to be filed, then the debts will literally be wiped out so that the individual or group can be free from it. However, it does entail some rather demeaning tests to see if the expenses of the individual are not excessive. This means test must be applied if Chapter 7 is to be granted but many people do not like the thought of being means tested for sure.
What happens is that all the reasonable expenditure is taken into consideration and then matched with the income of the individual. If the income is more than the expenditure then Chapter 7 cannot be applied. If the income is less than reasonable expenditure then the debt will be wiped off the books forever.
Chapter 13 is slightly different in that this means that the debtor will pay what he owes but on a much better basis. When the income is more than reasonable expenses, the court will amalgamate all the debts into one. They will then work out a payment plan, over time, which the debtor will have to service. The benefit of this one is that no credit fees or late fees will be charged as long as the debt is serviced properly.
The one good thing about applying for either Chapter in court is that creditors are banned from chasing the debtor or communicating with them any more. The debtor will no longer be harassed or chased down for the debts which must bring him some relief for sure. Although these Chapters were put into place to help beleaguered individuals, it is much better not to get involved with the courts if it can be avoided since the person will lose out on credit scores which will affect daily living for the future.
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