Ohio residents are devastated when they start falling behind on their bills. They are often too embarrassed to admit the situation and let it get out of control. They keep thinking that they’ll find a new job, get some more overtime, or recover from their illness. However, once their bills start to pile up, they can’t make up the lost ground. They may be too traumatized to even add up their growing debts. However, Bankruptcy in Dayton Ohio may be their only solution. They should contact a lawyer for help.

The lawyer will ask them to bring in a list of all of their income and debt. The debtor will probably find this very stressful. However, the lawyer has seen it all before and everything discussed with him is completely confidential. If the debtor makes more than the median income in Ohio, then they must use Chapter 13 to file for bankruptcy. Chapter 13 reorganizes a person’s debt and then expects them to pay back as much as they can over a period of time up to five years.

Once a debtor has filed for Bankruptcy in Dayton Ohio, the bankruptcy court appoints a trustee to oversee the person’s finances. He will add up all of the debtor’s income and then he makes a list of necessary expenses such as the mortgage payment, utility bills and taxes. Then he decides how much the debtor can spend on discretionary items such as food, gas, haircuts, clothing.

Each pay period the person’s employer will deduct the amount of money to be paid to the trustee from the debtor’s paycheck. This money will be sent directly to he Trustee to be divided among the creditors. The debtor is not allowed to use credit cards during this period. He must complete the entire Chapter 13 bankruptcy period. If just the final payment is missed, none of the remaining debt will be forgiven. A debtor can apply for a Chapter 13 bankruptcy every four years.

Anyone concerned about their debt that wants to learn more about filing for bankruptcy. It explains the different forms of bankruptcy in detail.