Chapter 13 Bankruptcy
Chapter 13 Reorganizes Your Debt
If you are behind on your house or car payment, or facing repossession or foreclosure, we understand the frustration, anxiety, and uncertainty you are probably feeling. By filing Chapter 13 bankruptcy, we can help you bring that payment current by negotiating a repayment plan that works for you. Chapter 13 of the Bankruptcy Code is a reorganization of debts. Chapter 13 reduces your overall liability and spreads out payments to creditors over time.
Contact our office in Cincinnati, Ohio to discuss your options with an experienced bankruptcy attorney. Call (513) 212-3844 to schedule a free initial consultation. We will provide you with a clear understanding of how Chapter 13 works and whether it is the right choice for you.
Our attorneys are well versed in the new bankruptcy laws. We will use our knowledge and experience to promote your interests by finding the appropriate solution for your individual circumstances. After a thorough evaluation of your debts, income, and assets, we will provide you with an explanation of your options (both bankruptcy and non-bankruptcy).
Many clients have situations that do not justify the extreme measure of filing bankruptcy -- if bankruptcy is not the appropriate solution for YOUR individual problems, we will not hesitate to honestly advise you as such.
Filing Chapter 13 bankruptcy will effectively stop creditor harassment. The Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act provide legal protections for consumers against abusive collection practices. There are often violations of these laws in how creditors are collecting money.
In addition to stopping creditor harassment, filing Chapter 13 bankruptcy will also stop a garnishment. In some cases, even taxes are dischargeable. Timing is very important. The sooner you file bankruptcy, the sooner creditor harassment will stop, and the sooner you will have peace of mind.
After satisfying your Chapter 13 repayment plan, we can point you in the right direction to help you rebuild your credit after the bankruptcy has been completed.
Who qualifies to file Chapter 13?
Only individuals with a regular source of income are eligible to be Chapter 13 debtors. Anyone is eligible for chapter 13 relief as long as your debts are less than $1,081,500 for secured debt and $360,525 in unsecured debt (these numbers can change). There are not any limits in Chapter 7.
Advantages of a Chapter 13:
- Chapter 13 gives you a chance save your home from foreclosure. We can stop foreclosure proceedings and you may cure delinquent mortgage payments over time.
- In a Chapter 13 bankruptcy the bankruptcy judge may rewrite the mortgage on your residence and extend them over the life of the Chapter 13 plan. Doing this may lower the payments.
- We can get rid of a second mortgage on your home.
- Protect third party co-signers who are liable with you on consumer debts.
- If your car was recently repossessed, we may be able to get it back.
- In Chapter 13 you make the payments to a Chapter 13 trustee and then the payments are distributed to the creditors. You do not have to deal directly with creditors anymore.
- If you have equity in real property or personal property, then there is an option under Chapter 13 to offer payment to creditors equal to payments that the creditor would receive from a Chapter 7 trustee.
How long does a Chapter 13 payment plan last?
The payment period is three to five years. The length of the Chapter 13 plan is determined by a calculation of your current monthly income.
If you'd like to discuss whether Chapter 13 or Chapter 7 is right for you, please contact us at 513-212-3844 or use the contact form on this page.
Have questions or would like to make an appointment? Call us at (513) 212-3844 or use our contact form.
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