Stop Foreclosure And Rebuild Your Future: Chapter 13 Bankruptcy Lawyer
For many people burdened by debt, bankruptcy offers a path to a fresh financial start. Chapter 13 is one such path. It provides a way to get out from under unmanageable debts such as medical bills and credit card debt. It can also offer a way to keep your home with more affordable monthly payments.
Because bankruptcy is such a big decision, it’s important to get professional legal guidance on whether Chapter 13 is right for you. I’m Keith Borders, a Chapter 13 bankruptcy lawyer in Ohio and the founder of Borders Law, LLC. I can help you understand your bankruptcy options. Based in Cleveland, I offer the benefit of extensive experience in this nuanced area of law. I have spent over 20 years practicing in this area of law and have helped thousands of clients successfully pursue a fresh start through bankruptcy. I can help you, too.
What Exactly Is Chapter 13 Bankruptcy?
Chapter 13, also known as the wage earner’s plan, is one of two common types of consumer bankruptcy (the other being Chapter 7). This serves as a reorganization plan that can be a preferable option for wage earners seeking to protect their assets from liquidation. Furthermore, Chapter 13 comes with these advantages:
- Property protection: This route helps in keeping your residence, vehicles and other assets of value.
- Streamlined billing: This consolidates debt into a single, affordable monthly payment instead of managing multiple creditors.
- Financial reset: This discharges remaining eligible debt once you pay consistently throughout your assigned repayment period.
The repayment period generally ranges from three to five years, acting as a financial buffer from collection calls. While this offers convenience, Chapter 13 may not be the right fit for everyone. You may consider this option if you are:
- Facing a foreclosure sale date in Ohio
- Behind on car payments but want to keep the vehicle
- Dealing with tax debt or child support arrears
- Making “too much” for a Chapter 7 but still sinking
If you are unsure whether you should pursue Chapter 13, Borders Law, LLC, can review your case and provide insights to help you decide.
How Is Chapter 13 Different From Chapter 7?
While Chapters 13 and 7 offer a stay against creditors, they are starkly different. Chapter 13 stands out because of these qualities:
- Offers individuals with disposable income a structured way to manage overwhelming debts while keeping valuable assets
- Takes around three to five years to settle all debts
- Enables you to reorganize debts into a manageable repayment plan
- Allows you to pay back creditors in a way that aligns with your financial capabilities
Meanwhile, Chapter 7 can be a tool for individuals with limited income and high debt. It helps by:
- Discharging eligible debts within a few months
- Selling nonexempt assets to pay back lenders
- Basing eligibility on meeting the standards of the means test
Learn more about the differences between these two types of bankruptcies.
Breaking Down The Chapter 13 Bankruptcy Process
The process begins by filing a petition with the appropriate Ohio bankruptcy court, accompanied by detailed documentation of your financial situation. You must disclose your income, expenses, assets and debts. You must also submit a proposed repayment plan outlining how you intend to make payments over the designated time period. This plan must comply with legal standards and be approved by the court.
Once your petition is filed, an automatic stay is initiated, halting creditor collection efforts, including foreclosure and repossession actions. A bankruptcy trustee is appointed to oversee your case, ensuring compliance with the repayment plan and handling creditor communications. Creditors will also have an opportunity to review your plan and raise any objections.
If approved, you will begin payments as outlined in your plan. Upon successful completion, remaining eligible unsecured debts may be discharged, providing a clean financial slate.
Learn More About Whether Chapter 13 Is Right For You
I would be happy to discuss your options during a free initial consultation. Call my firm at 216-435-5668 to learn more and discuss my affordable attorney fees. I have multiple convenient offices and can handle bankruptcy cases virtually, without the need for in-person involvement.
My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.