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Chapter 13 Bankruptcy:
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What is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is also known as, “reorganization.” Chapter 13 protection is a structured repayment plan, which, over a certain period of time (normally 3-5 years), and upon successful completion, will allow for your remaining unsecured debts to be discharged. Those who do not qualify for Chapter 7 bankruptcy relief, normally seek Chapter 13 relief instead.
Based upon my experience there are typically two types of debtors that seek protection under Chapter 13 of the U.S. Bankruptcy Code. First, some of my clients who are desirous of keeping certain assets, such as their primary residence, but they are in arrears. One of the requirements to file for protection under Chapter 7 is that the debtor must be current on their mortgage payments. If it is impossible or impractical for the debtor to get current on their mortgage payments, then Chapter 13 relief may be their best option. Today, we are seeing more and more home loan modifications being entered into that may influence which type of bankruptcy relief the debtor will seek.
Do I Qualify for Chapter 13 Bankruptcy?
Second, some of my clients just simply make too much money to qualify under the means test. For example, if a husband and wife (with no children) has annual household gross income which far exceeds the threshold amount under the means test, then due to their significant income, they would be strongly advised to proceed under the protections afforded by filing for Chapter 13 bankruptcy relief.
What Would My Payment be in a Chapter 13 Case?
Many clients at the initial consultation ask me what would my payment be in a Chapter 13 plan? I typically respond by informing them that they need to be able to afford their secured and priority debt, their living expenses, and at least one percent of their unsecured debt. Now, this is an oversimplification of the calculation needed to determine their plan payment, but it provides them with an idea of how debt is classified and ranked in light of bankruptcy laws. While 100% of unsecured debt is discharged in a Chapter 7 bankruptcy case, at least 1% of unsecured debt must be paid pursuant to the Chapter 13 repayment plan.
What is The Process With Creditors
In a Chapter 13 case (like a Chapter 7 case), the debtor must attend the Meeting of Creditors. You may hear this meeting also referred to as a Section 341 Meeting. At this meeting, creditors are afforded an opportunity to attend and ask the debtor questions pertaining to his or her assets, liabilities, and intentions. One of the many goals of the Chapter 13 bankruptcy trustee is to ensure that the Chapter 13 plan is feasible. Approximately one month after the Meeting of Creditors, a confirmation hearing is held to finalize any outstanding issues concerning the Chapter 13 plan. In most cases, the debtor does not have to attend the confirmation hearing.
If you believe that bankruptcy may be an option for you and your family, Sheppard Law Offices can help. Bankruptcy Attorney Ken Sheppard will meet with you personally and answer any questions you may have about your debt problems and the bankruptcy processes.
So, if you’re tired of struggling with your debt, please do not hesitate to call us. There are always options, but the longer you wait, the longer you will struggle. See our Bankruptcy FAQ for answers to more questions.
Require More Information about Chapter 13 Bankruptcy?
A few financial missteps can lead to major future problems, including the inability to repay debt to creditors. If you are looking for a fresh start, please do not hesitate to call Sheppard Law Offices and find out if bankruptcy may be right for you. Contact us today for a free one-half hour initial consultation.
Since the federal bankruptcy laws changed in 2005, many people are uncertain as to their rights when it comes to filing for bankruptcy. Although the laws make it more challenging to seek and obtain Chapter 7 (fresh start) and Chapter 13 (repayment plan) relief, the bankruptcy attorney at Sheppard Law Offices with offices locations in Columbus (Westerville), Newark, Canton, Akron, and Mt. Vernon Ohio can help you decide what your options are.
What Are My Consumer Bankruptcy Options?
There are two options for consumer bankruptcy relief: Chapter 7 and Chapter 13.
Call the Columbus, Ohio chapter 13 bankruptcy filing office of attorney Ken Sheppard, Jr. to schedule a free consultation to determine if filing chapter 13 bankruptcy in Columbus, Ohio is the best route to financial freedom for you. The Columbus, Ohio bankruptcy office can be reached at (877)505-9455.
Sheppard Law Offices
3535 Fishinger Blvd Suite 190
Hilliard, Ohio 43026
Mt. Vernon Office
11 West Gambier Street
Mt. Vernon, Ohio 43050
Belden Village Tower, Suite 200
4450 Belden Village St., NW
Canton, Ohio 44718
843 North 21st Street, Suite 108
Newark, Ohio 43055
575 White Pond Drive, Suite C
Akron, OH 44313