Chapter 13 Bankruptcy Attorneys in Dayton, Lima, Canton and  Mansfield, Ohio

What Is Chapter 13 Bankruptcy and how does it Work in Ohio?

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Chapter 13 bankruptcy provides financial payment relief for individuals that want to avoid foreclosure or repossession. It offers significant advantages over Chapter 7 liquidation of all assets. Filing under Chapter 13 can halt foreclosure procedures and often time cures delinquent payments on all other debt.

Individual suffering from a heavy burden of debt have the ability to file for bankruptcy. The two most utilized options include reorganization (Chapter 13) or liquidation (Chapter 7). Often times, a skilled bankruptcy attorney can help the debtor determine their unique financial characteristics to choose the best chapter.

An Affordable Repayment Plan

Fortunately, debtors that qualify for filing under Chapter 13 can develop a plan to repay all creditors within a specific time frame of 3 to 5 years. Once bankruptcy has been filed, the creditors must stop harassing the debtor for collection of any outstanding payment until the case is been finalized in bankruptcy court.

Typically, the debtor can keep his or her property, and all creditors usually receive reduced funds over the amount of the debt. This provides the opportunity for the debtor to make affordable payments without the loss of equity in their assets.

Chapter 13 Eligibility

Not everyone is eligible to receive the financial restoration options under Chapter 13 bankruptcy. The debtor will be required to use his or her income for debt repayment to meet monthly obligations approved by the court system. If the debtor’s income is too low or sporadic, they might not meet Chapter 13 eligibility requirements. In addition, if the debt burden is higher than the debtor can afford, they will also lose their eligibility.

The Process

Before Chapter 13 can be filed, the debtor is required to attend credit counseling by a US trustee’s office-approved agency, where they will be charged a fee for the service. In addition, the debtor will pay a filing fee to begin the process. It is always recommended to hire an experienced bankruptcy attorney to help move the paperwork through the process, and serve as a legal representative throughout the case.

At some point, the paperwork filed with the Chapter 13 bankruptcy documents will include a repayment plan detailing how the debtor intends to pay every debt. Out of all of the outstanding debt, the debtor will be required to pay “priority debts.” These often include tax obligations and owed employee wages, along with spousal and child support.

Typically, most Chapter 13 cases end in a discharge, wiping out all remaining debt after the payment plan has been completed. An attorney can help assist in providing legal counsel on how to save the home, vehicle and other debts under this chapter.

Federal law requires the following statement: We are a debt relief agency. We help people file for protection under the bankruptcy code.