Many people are stuck with trying to catch up with their debts, but they cannot seem to get ahead. Some people are even using their credit cards to pay on other credit cards, and they are digging themselves deeper into debt. Many times, people are sacrificing eating food and other necessities to keep up with a house or car payment. As a Columbus, Ohio bankruptcy attorney, I have the experience to provide you the help you need to get control of your life again.
A Chapter 13 bankruptcy helps you repay some of your debts. In a Chapter 13 bankruptcy, you are allowed a reasonable amount of living expenses, and you pay back only a portion of your debt in the Chapter 13 bankruptcy plan, depending on your disposable (or left over) income in the bankruptcy.
A Chapter 13 bankruptcy involves the repayment of a portion of your debt over 3 to 5 years. For all practical purposes, a Chapter 13 bankruptcy is commonly known as the debt repayment plan. There is also a Chapter 11 Bankruptcy, but this is not generally applicable to the average consumer.
A Bankruptcy Debtor is a person filing for Chapter 13 bankruptcy, and the Chapter 13 bankruptcy case is administered in court through the bankruptcy trust. A Chapter 13 bankruptcy trustee is appointed on behalf of the debtor's creditors to Administer the Chapter 13 Bankruptcy Case, investigate, and recover any Assets of the Bankruptcy Estate (like real estate, automobiles, clothing, jewelry, Tax Returns,and other assets) for the debtor's creditors. A debtor has a Chapter 13 Bankruptcy Statutory Limit on the amount of debt they may have to qualify for a Chapter 13 bankruptcy. 11 U.S.C. Section 109(e).
When a person files a Chapter 13 bankruptcy, they are protected under federal law by a federal Bankruptcy Stay Order. This Chapter 13 bankruptcy stay order has the effect of stopping all state law proceedings, including any lawsuits or collection efforts.
In a Chapter 13 bankruptcy plan, the bankruptcy debtor needs to account for all the equity available (beyond the statutory exemptions) in the bankruptcy estate and repay that amount of equity in the best interest of the creditors.
When a debtor files a Chapter 13 bankruptcy, the bankruptcy debtor agrees to Repay a Portion of the debts that they owe in a bankruptcy. Eligibility for a Chapter 13 is determined by the amount of unsecured and secured debt. The Bankruptcy Repayment Plan includes all unsecured and secured debts that are owed in the bankruptcy based on creditors filing a Proof of Claim, including taxes, child support, credit cards, and other bills.
The Bankruptcy Confirmation Hearing has the Effect of Confirming the Bankruptcy Plan or pointing out issues that need resolved with the Bankruptcy Plan. Bankruptcy Plans can be Modified Prior to The Confirmation Hearing or After the Confirmation Hearing. Bankruptcy Confirmation can be revoked if Fraud is involved.
The main advantage of a Chapter 13 bankruptcy is the bankruptcy debtor is able to catch up their car or house payments through the Chapter 13 bankruptcy plan. The Bankruptcy Plan may also Cram Down a car loan value to fair market value if the car was purchased greater than 910 days. If the car was purchased within 910 days, the debtor will need to use the contract rate.
If a Chapter 13 Bankruptcy Plan fails (usually for lack of payment), the Bankruptcy case is Dismissed. Sometimes a bankruptcy case can be Converted to a Chapter 7 Bankruptcy. If a Chapter 13 Bankruptcy Plan succeeds, there is a Discharge upon the completion of the Chapter 13 Bankruptcy Plan. Even if only a portion of the unsecured debts are repaid, the remaining balance of debts is eliminated through discharge, except child support, student loans, and taxes.
In my free initial consultation, I assess what is going on with a client and determine if I can help them with a Chapter 13 bankruptcy. My bankruptcy fees are based on the complexity of the case, but I try to competitively price my bankruptcy fees in a reasonable, affordable, and efficient way. Please call me to set up a free initial consultation to learn about bankruptcy:
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