If you don’t qualify for liquidation or don’t want your assets sold off to repay debts, Chapter 13 bankruptcy may be a solution to your financial troubles. From 2005 – 2017, 4.1 million Americans reorganized and began to repay their debts through Chapter 13 filings, according to the Administrative Office of the U.S. Courts on behalf of the Federal Judiciary. However, filing Chapter 13 bankruptcy is far more complicated than other forms of bankruptcy. Retaining an Ohio Chapter 13 bankruptcy attorney is essential.
At Kademenos, Wisehart, Hines, Dolyk & Zeiher Co. LPA, our Ohio bankruptcy attorneys are here to help you can start on your repayment plan towards a better financial future. Please contact our office to set up a consultation with Adrienne Hines, a skilled Chapter 13 attorney who’s dedicated to these types of cases. She can be contacted at (419) 625-7770, or by reaching out via the online form.
Chapter 13 Bankruptcy
There are multiple types of bankruptcy proceedings as provided by the Federal Bankruptcy Code. Though they’re all intended to help debtors get back on their feet, the specifics of each process are very different. The definition of Chapter 13 bankruptcy involves a debt reorganization process that’s often complicated. Some answers to a few common questions may help you understand how it works.
What is Chapter 13 Bankruptcy?
This type of bankruptcy enables debtors to restructure their outstanding debts and set up repayment plans to pay their financial obligations over time. It’s an attractive option for people who don’t want their assets sold to pay off debt, as would be the case in a Chapter 7 bankruptcy.
Am I Eligible to File Chapter 13 Bankruptcy in Ohio?
There are qualifications rules for all bankruptcy proceedings. You may be eligible to file for Chapter 13 bankruptcy if you:
- Maintain a regular income from a job, investments, or some other source
- Your total unsecured debts are less than $394,725
- Your total secured debt is less than $1,184,200
How Does Chapter 13 Bankruptcy Work?
Even before you file for Chapter 13 bankruptcy, you must participate in a court-approved mandatory credit counseling course. You’ll then submit the appropriate forms, along with filing fees and a certificate showing that you completed the required educational session. Upon receiving your Chapter 13 petition, a bankruptcy trustee is appointed to manage your case before the court.
The focus in your Chapter 13 bankruptcy case is the repayment plan that you prepare and propose to handle your outstanding debts. The trustee and your creditors may object, especially if it significantly decreases your financial obligations. Through conversations with the trustee and creditors, you can make changes that enable the court to approve your repayment plan.
In most cases, you’ll be repaying your debts over a period of 3 – 5 years, during which time your case remains open. Once you complete all terms under your Chapter 13 repayment plan, your debts are discharged.
Does Chapter 13 Affect my Credit Score?
Yes, any bankruptcy filing will have consequences for your credit rating. However, with Chapter 13, a record of the proceedings only remains on your credit history for seven years. In Chapter 7 filings, your credit report will reflect bankruptcy for 10 years.
What Happens to my Assets After Filing for Chapter 13 Bankruptcy?
Part of the purpose behind this form of bankruptcy is allowing you to keep your property as you pay back your creditors. However, Chapter 13 essentially creates a new set of financial obligations. You must strictly comply with the terms of your repayment plan. If you don’t, you put your assets at risk. If you do experience a change in income, there are ways to modify your plan.
Though these answers may be useful, they may raise more questions regarding your circumstances. Please contact Ohio Chapter 13 bankruptcy lawyer Adrienne Hines at (419) 625-7770 to learn more about how the laws that apply to your case.
Reasons to Work with an Ohio Chapter 13 Bankruptcy Attorney
Before you put your rights and financial future at risk, you should consult with a Chapter 13 attorney about your circumstances. This type of bankruptcy involves a highly complex process, particularly because of the importance placed on your repayment plan. It must be feasible based upon your income and assets. The amounts can be hard to assess when you’re looking at paying creditors back over 3 – 5 years. Plus, if your creditors object, it can be difficult to understand how you can change your repayment plan to overcome their protests.
A Chapter 13 Attorney Can Help with Additional Questions
When you’re facing an unknown financial future, it’s critical to have an Ohio Chapter 13 bankruptcy attorney represent your interests. Attorney Adrienne Hines has extensive knowledge of the bankruptcy laws and knows how to file bankruptcy Chapter 13 forms. She can anticipate the objections of your creditors, so you’re more likely to get your repayment plan approved without delay. If you do face financial hardship over the course of the case, she can assist with requesting a modification of your arrangement.
To hear more about various forms of bankruptcy, contact the team at Kademenos, Wisehart, Hines, Dolyk & Zeiher Co. LPA. We can be reached at (419) 625-7770, or through our online form.