The Federal Bankruptcy Code’s Chapter 13 bankruptcy is a repayment plan that provides special protection that lets a debtor reorganize debt and make manageable payments to creditors. The reason why Chapter 13 bankruptcy is also known as a “wage earner’s plan” is because one of the requirements for a debtor to be eligible for a Chapter 13 bankruptcy is that he must have a regular ongoing monthly income in order to make ongoing monthly Chapter 13 plan payment on his debt.
At Sheppard Law Offices, we are dedicated to supporting you in finding a resolution since we are aware of the detrimental effects that money issues can have on you and your family. Call our Columbus Chapter 13 bankruptcy lawyer to get in touch with our law firm so we can go through your legal choices and get you started on the road to a debt-free future.
Why do I need a Chapter 13 Bankruptcy Attorney in Ohio?
Working with an attorney can assist you in avoiding mistakes that could prevent your debts from being discharged and potentially worsen your situation. Choose one with whom you are comfortable and with the knowledge and credentials essential to helping you navigate bankruptcy successfully.
It is best to hire our Sheppard Law Offices Chapter 13 bankruptcy attorneys for the following reasons:
- We have years of expertise and have personally filed thousands of cases to aid clients in resolving their financial difficulties.
- We try to make our rates reasonable and, if necessary, help you set up manageable payment plans before filing bankruptcy because we recognize that you are already struggling financially.
- Even the most responsible and diligent people sometimes find themselves in debt despite their best efforts, and our lawyers have a great deal of compassion and regard for the people we represent.
- To avoid any delays in providing you with the necessary debt relief, we make sure everything is done properly.
- We are available to address your queries and worries, and we have the team needed to effectively prepare your bankruptcy case, which is our attorneys from Sheppard Law Offices.
- We provide free, private, and individualized consultations to go through your specific circumstances and decide how we can best assist.
When you work with Sheppard Law Offices, our Chapter 13 attorney in Ohio will sit down with you to assess your Chapter 13 bankruptcy case and decide whether filing for Chapter 13 or another type of bankruptcy relief is the best option for you. We will walk you through the legislation, assist you in organizing your paperwork, and submit a petition on your behalf to the United States bankruptcy court on your behalf.
To ensure that everything is done correctly and that you receive the debt relief you require, we will be by your side at every stage of the procedure. Contact us now!
What is Bankruptcy?
Under Chapters 7, 11, 12, or 13 of the U.S. Bankruptcy Code, an individual debtor may apply for bankruptcy protection. Small business owners frequently use Chapter 11, but family farmers and fishermen are allowed to use Chapter 12. As a result, the majority of people opt for Chapter 7 or Chapter 13 bankruptcy.
The “means test,” which compares your income to the income of other Ohio households with comparable circumstances, must be passed in order to file under Chapter 7. You will need to apply for bankruptcy under Chapter 13 if you do not meet the requirements to file under Chapter 7 or if you have priceless non-exempt assets that you do not want to lose.
Chapter 7 vs Chapter 13
The capacity to repay debt in the Chapter 13 plan that might not be dischargeable in a Chapter 7 bankruptcy is another factor that influences the choice to file a Chapter 13 bankruptcy. Past-due debts for child support and income taxes are a couple of examples of these non-dischargeable issues.
In contrast to a Chapter 7 bankruptcy filing, a Chapter 13 bankruptcy filing will allow the debtor to rebuild credit while the case is pending. Chapter 13 plan payments on loans acquired after filing and while the plan is pending all favorably contribute to boosting the debtor’s credit score with the credit agencies.
Who Is Eligible to File for Chapter 13 Bankruptcy?
In accordance with Chapter 13 guidelines, the following requirements must be met in order to qualify under the U.S. Bankruptcy Code:
If You Are Not an Entity
Chapter 13 bankruptcy can only be filed by a person or a married couple filing jointly. For example, corporations and limited liability companies (LLCs) must file for bankruptcy under Chapter 11 because they are ineligible for Chapter 13 protection.
If you own the company as a sole proprietor or with a partner, you may do so for the debts for which you are personally liable. But Chapter 13 is not available to stockbrokers or commodity brokers.
Previous Bankruptcy Does Not Prohibit You
You are ineligible for a Chapter 13 bankruptcy until the required amount of time has passed if you dismissed debt in a Chapter 7 bankruptcy during the previous four years or in a Chapter 13 bankruptcy within the previous two years.
If the Prior Case was Not Dismissed within Three Months
The borrower will not be eligible for Chapter 13 nor Chapter 7 once the bankruptcy petition was discharged in the last three months for any of the reasons listed:
- Deliberately disobeying a court order or failing to show up in court
- After a creditor sought the court’s permission to lift an automatic stay, the debtor asked that the case be dismissed.
If You Accomplished Credit Counseling
A certification of evidence indicating that debt counseling was offered by a recognized credit counseling service for at least 180 days before the Chapter 13 petition is required to be filed with the bankruptcy proceedings by a Chapter 13 debtor.
A copy of the debtor’s debt management plan must be given to the court if one was developed by the credit counseling organization. The certificate must be submitted either with the original papers or given within 15 days after filing for bankruptcy by the debtor.
If Your Liabilities are Not Excessive
The amount of debt that can be filed under Chapter 13 is restricted. Individual debtors whose combined unsecured debt (debt that is not secured by property, such as credit card debt and medical expenses) and secured debt (debts for which a creditor can take the property securing the debt if it is not paid) is less than $2,750,000 are qualified for Chapter 13.
You’ve Submitted Your Tax Returns
To satisfy the Chapter 13 criteria, you must show that you filed state and federal income tax returns for the previous four years. You should give the bankruptcy trustee a copy or transcript of the most recent federal tax return submitted to the IRS no later than seven days prior to the initial 341 hearing.
What Are the Advantages of Filing Chapter 13?
The fact that the obligations repaid under the Chapter 13 plan are frequently restructured so that the debtor repays the debt under more advantageous conditions, such as:
- Lower or no interest rates are one of the key advantages of Chapter 13.
- The Chapter 13 restructuring procedure also gives the debtor a chance to keep his property, even if a foreclosure judgment has already been delivered or a vehicle has already been repossessed.
- Extend the timeframe of some debts: Chapter 13 payment plans have a three- to five-year period.
- After finishing Chapter 13, you may file for another Chapter 13 if you run into financial difficulties again.
Time is of the essence in this situation, so you must meet with a Columbus bankruptcy attorney from Sheppard Law Offices immediately to review your legal rights and options.
How Does Chapter 13 Bankruptcy Works?
Every aspect of the debtor’s financial situation must be disclosed throughout the Chapter 13 filing procedure, including:
- Expenses and earnings
- existing transactions
After submitting a Chapter 13 petition, borrowers only have two weeks to file the repayment plan papers with the court and the creditors.
Call our Seasoned Columbus Chapter 13 Bankruptcy Attorney Now!
When it comes to debt relief, time is of the essence. You should act as quickly as possible. In Columbus, Ohio, bankruptcy lawyers represent hard-working people who are experiencing financial difficulties for various reasons.
You can decide which course of action is appropriate for your particular case by requesting a free consultation with our Ohio bankruptcy lawyer, also at Sheppard Law Offices in Mount Vernon and Newark. Without any further commitment, you will receive insightful advice on debt relief that is relevant to your circumstances.