chapter 13 Bankruptcy in Mentor, Ohio
Chapter 13 Bankruptcy Basics
Chapter 13 bankruptcy is one form of bankruptcy filing that allows you the flexibility to repay your outstanding debts over a three to five year period. This form of personal bankruptcy is a good choice for people who have a future income they can use to pay off creditors.
Chapter 13 bankruptcy is also a good option for filers who are behind in their mortgage or car payments but want to keep the asset. If you keep current with your payments and repay all debts within the five-year limit, you will not have to get rid of any of your personal property. You must, however, begin repaying your debts within 30 days of filing for Chapter 13 bankruptcy.
Why Chapter 13 Bankruptcy?
There are several reasons you may want to file for Chapter 13 instead of Chapter 7 bankruptcy. With Chapter 13, you can catch up on past-due mortgage and vehicle loans. This prevents a mortgage foreclosure and repossession of your car or truck. You may also be able to pay off auto loans and other secured debts at a lower payoff amount.
In addition, you may be able to pay off tax debts or support owed over time and with lower or reduced penalties. With Chapter 13, you may be able to get rid of a second mortgage if your house is worth less than what you owe on your original mortgage. Keep in mind that you must have the ability to make your Chapter 13 plan payments to qualify for Chapter 13.
How Chapter 13 Works
If our attorneys at Moseman Law Office LLC assess your income, asset, and debt situation and determine a Chapter 13 filing will work for you then we can prepare the Chapter 13 paperwork and file it with the United States Bankruptcy Court.
This will include a detailed plan outlining how you will repay your debts, including payment dates and amounts. The court will appoint a trustee to review and approve the plan so that you can achieve your discharge upon the plan’s completion. A Chapter 13 filing does not necessarily mean that you will have to pay back your debts in full. If you complete your plan most remaining debt is discharged and you get your fresh start.
You must begin making payments within 30 days or less from the filing of the Chapter 13 case. In most cases, a withholding order for your wages or other forms of income will be put into effect.
Once the withheld funds are sent to the trustee, the trustee will make the appropriate payments to your creditors. Secured loans and debts such as mortgages and vehicle loans are priorities and will be paid before other debts. After that, any mortgage arrears, taxes and support arrears. Finally, credit cards and other unsecured debts.
Can Anyone File Chapter 13 Bankruptcy?
To file for Chapter 13, you must be able to prove you will have sufficient income to repay your debts at a reduced rate over a 3 to 5 year period. You will also have to prove that you have filed your state and federal income taxes for the last three years. If you are not current on your taxes, the court may give you an extension of time to do so. If you do not meet these requirements, you will not be able to file for Chapter 13 bankruptcy.
If your secured debt is more than $1,010,650 or your unsecured debt is over $336,900, you cannot file for Chapter 13 bankruptcy.
Let Moseman Law Office LLC Lead You Through Chapter 13
Chapter 13 bankruptcy can be distressing and confusing. At Moseman Law Office LLC, our attorneys will walk you through the complex process of filing for Chapter 13 in Ohio.
We’ll explore all the legal options, put together a repayment plan that will work for you based on your anticipated income and protect your rights. We will walk you through every step of the process, including:
- Preparing a workable budget
- Communicating with creditors
- Preparing and filing all paperwork
- Representing you at all hearings
- Requesting the discharge of your debts after you’ve made all required payments
Mentor, Ohio Chapter 13 Bankruptcy Attorney
Fill out our contact form, or call Moseman Law Office, LLC at 440-255-0832 today for confidential, compassionate consultation with one of our knowledgeable Mentor OH Chapter 13 bankruptcy specialists and get on the road to financial recovery.