Chapter 13 Bankruptcy

Columbus Bankruptcy Attorney Explains Chapter 13

We help you consolidate your debts

Chapter 13 is known as the consolidation chapter. While similar to a debt consolidation, a properly structured Chapter 13 case may require you to pay back only a percentage of your unsecured debt. Chapter 13 makes sense if you are struggling to make your debt payments but own too much property or earn too much money to file under Chapter 7.

As in a Chapter 7 bankruptcy, in a Chapter 13 you can choose to retain property that’s encumbered by debt rather than liquidate it. But if you decide to keep the property, you have to continue to make the payments on it. Rebecca Hockenberry of Hockenberry Law Office, LLC has extensive knowledge of bankruptcy law, and she will guide you through the process. She also handles Chapter 7 bankruptcies and debtor defense.

What to expect after filing under Chapter 13?

You must propose a feasible and reasonable 36 to 60 (for above median income debtors) month repayment plan. In fairness to your unsecured creditors, your plan must provide for paying either the hypothetical revenue that would be raised from the liquidation of your property or the product of your monthly disposable income for the length of your plan. Our bankruptcy lawyer creates Chapter 13 payment plans that are acceptable to the court and your creditors but at the same time allow you to hold on to as much of your income and assets as possible.

You must begin making regular plan payments to the Trustee immediately. If the court considers the plan fair, then the judge confirms the plan. The trustee distributes the payments to the creditors according to the terms of your repayment plan and the financial management course. After you successfully complete your repayment plan, the court issues a discharge order that eliminates your remaining dischargeable debts.

Advantages of filing under Chapter 13

Filing under Chapter 13 offers many advantages, including:

  • Bringing foreclosure proceedings to a halt
  • Allowing you to cure delinquent mortgage payments over time
  • Lengthening the repayment period of secured debts
  • Keeping your creditors off your back for the duration of your Chapter 13 case, including the repayment period.
  • Enabling you to pay past due taxes and domestic support obligations without incurring additional penalties and interest.

To learn more about bankruptcy and its advantages and disadvantages, schedule a free consultation with our bankruptcy attorney today.

Call for a free consultation with a Central Ohio bankruptcy lawyer

Hockenberry Law Office, LLC offers free consultations in bankruptcy cases for clients throughout Ohio. Our office is open from 9 a.m. to 5 p.m., Monday through Friday, with after-hours appointments available as needed. Call us at (567) 560-2095 or contact us online to arrange a free 15-minute consultation.


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