Chapter 13 Bankruptcy Lawyers in Ohio

Ohio Chapter 13 Bankruptcy Lawyer

Many people view bankruptcy as a last-ditch effort to resolve their overwhelming debt. While bankruptcy may seem like a drastic step, Chapter 13 bankruptcy often serves as a “soft landing.”

For those choosing Chapter 13 bankruptcy, Ohio state law protections can help keep your property. You can also begin to repay your creditors and get back on the road to financial health.

You can try it with others. Contact Amourgis & Associates, Attorneys at Law, today and talk to one of our Ohio Chapter 13 bankruptcy attorneys. We can explore whether Chapter 13 bankruptcy might help in your current situation.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is sometimes called a “wage earner’s plan.” Chapter 13 allows an individual or married couple with regular disposable income to develop a plan to pay off all or a substantial portion of their debt. In contrast, another form of bankruptcy, Chapter 7, requires debtors to liquidate most of their assets to repay creditors.

Debtors who file for Chapter 13 bankruptcy develop a repayment plan for three or five years. The plan length depends on whether the debtor’s income is less or more than the median income in Ohio, respectively.

During Chapter 13 bankruptcy, creditors cannot begin or continue their collection efforts. For example, they cannot send collection notices, foreclose on or repossess property, or file a collection lawsuit. This protection is called the bankruptcy “stay.” In addition, the debtor retains possession of their indebted property so long as they make payments under the approved repayment plan.

At the end of the repayment plan, the bankruptcy court will order the discharge of any remaining dischargeable debts. However, certain obligations, such as unpaid taxes, child support arrears, or student loans, can’t be discharged. Talk to a Chapter 13 lawyer to find out more.

What Are the Advantages of Chapter 13 Bankruptcy

Is Chapter 13 bankruptcy your best option? Consider these advantages. Filing for Chapter 13 bankruptcy allows you to:

• Avoid foreclosure – The court automatically institutes a stay when you file for bankruptcy. That prevents creditors from engaging in collection activities. For example, a bank cannot foreclose on your home when a stay is in place. In Chapter 13 bankruptcy, you may choose to keep property with liens, such as your mortgaged home, as long as you make payments under your payment plan.
• Extend the terms of some debts – Payment plans under Chapter 13 last between three and five years. You can effectively extend the repayment periods on any obligation that would come due before the end of your Chapter 13 repayment plan.
• Lower the impact on your credit report – Chapter 7 bankruptcy remains on your credit report for ten years. Still, Chapter 13 bankruptcy is removed from your credit report seven years after filing.
• Make refiling for bankruptcy possible – Generally, you cannot file for Chapter 7 bankruptcy if you filed for either Chapter 7 or Chapter 13 bankruptcy within the last six years. However, if you find yourself in financial trouble again after completing Chapter 13 bankruptcy, you can file for another Chapter 13 bankruptcy. Also, if you paid at least 70 percent of your unsecured debts during your Chapter 13 bankruptcy, you would not have a six-year ban on your ability to file for Chapter 7 bankruptcy.

The most significant benefit of Chapter 13 bankruptcy in Ohio courts is a discharge of your remaining eligible debts at the end of your repayment plan. That can give you a fresh start on your finances.

What to Expect in a Chapter 13 Bankruptcy Process

The Chapter 13 bankruptcy process involves these steps:

1. You must attend a credit counseling course within 180 days before filing your Chapter 13 petition.
2. You must prepare your petition on forms provided by the court. To avoid rejecting your petition, you should confirm the paperwork you need to file.
3. You must present a proposed repayment plan to the court within 14 days of filing your petition. The court will hold a hearing to determine whether your proposed project meets the requirements of the Bankruptcy Code. The court will hear any objections that your creditors have to the plan.
4. The court will appoint a trustee to collect your payments and disburse funds to your creditors. Your creditors must cease all efforts to collect on debts covered by the plan as long as you comply with its terms.

How Does a Chapter 13 Repayment Plan Work in Ohio?

Your Chapter 13 repayment plan lays out how you propose to repay your creditors. After you submit a proposed plan to the court, the judge and your creditors will review your plan and may raise objections to details of your plan and seek revisions.

In the Chapter 13 bankruptcy repayment plan, your debts will fall into one of three categories:

• Priority debts, which must be paid off during your plan. Those debts include back taxes and child and spousal support payments.
• Secured debts, which you usually must pay back in full. This category’s debt consists of a home mortgage and a car loan.
• Unsecured debts, which in many cases, aren’t paid in full by the end of the repayment plan. Instead, outstanding balances are discharged and voided by the court. These debts include personal loans, credit card debt, and medical bills.

How Long Does Chapter 13 Bankruptcy Take in Ohio?

The Chapter 13 bankruptcy process begins once you file a petition with your local bankruptcy court. Within 180 days before filing, you must take a credit counseling course from an approved agency.

In most cases, within 95 days of filing your Chapter 13 bankruptcy petition, the court will approve your proposed repayment plan. However, approval of the plan can take longer if your creditors object to the proposed plan.

Once your plan is approved, the Chapter 13 repayment process will last between three and five years, depending on your income level. Once you’ve made all required payments under your repayment plan, the bankruptcy court will grant you a discharge of the remaining eligible debt. Your bankruptcy proceeding will come to a close.

Under Chapter 13 bankruptcy, your bankruptcy trustee collects your payments under your repayment plan. Then, that money is disbursed to your creditors. Essentially, Chapter 13 bankruptcy functions as a form of debt consolidation.

On the other hand, traditional debt consolidation involves obtaining a new loan to pay off the balances on multiple accounts. The new loan consolidates your debt into one payment. Debt consolidation loans are typically offered at a lower interest rate than what you pay on your outstanding debts. However, a debt consolidation loan may take more time and money to repay than the original credit agreements.

Chapter 13 bankruptcy protects you from collection efforts while you make payments under your plan. If you can’t consolidate your outstanding debt with a debt consolidation loan, the remaining creditors can still seek repayment or pursue collection efforts. The bank will also pursue collection efforts if you default on your new debt consolidation loan.

How Can an Ohio Chapter 13 Bankruptcy Attorney Help You?

Filing for Chapter 13 bankruptcy is a severe and complex option for people who want to resolve their crushing debt. However, a Chapter 13 bankruptcy attorney from Amourgis & Associates can help you with the bankruptcy process.

A chapter 13 attorney can:

• Help you explore alternatives to Chapter 13 bankruptcy, such as loan restructuring or debt consolidation loans.
• Prepare your bankruptcy petition paperwork.
• Draft your repayment plan proposal.
• Advocate on your behalf when creditors object to your repayment proposal and help you make revisions when necessary.

If you are considering filing for Chapter 13 bankruptcy, schedule a free, confidential, no-obligation initial case evaluation today. Then, contact an Ohio Chapter 13 bankruptcy attorney from Amourgis & Associates, Attorneys at Law.

We can tell you more about your legal rights and your options for dealing with your debt. We can put you back on the path to financial health. Our firm is conveniently located at six offices in Ohio – Akron, Cincinnati, Independence (Cleveland), Columbus, Beavercreek, and Canfield.