Chapter 13 Personal Bankruptcy Attorney in Columbus
A Chapter 13 bankruptcy, often referred to as a "reorganization," involves a repayment plan that sets forth with specificity the manner in which debtors will settle their debts over three to five years. The minimum amount of payment required depends on the debtor's income, balance, and the amount that unsecured lenders would have been paid if the debtor had filed for Chapter 7 bankruptcy. A Chapter 13 bankruptcy may provide a release of debt by restructuring the debt in a plan which is considered manageable to repay the debt.
Many times, the debt to be paid back may be negotiated to be less that which is currently owed. In a Chapter 13 bankruptcy, a debtor proposes a repayment plan to the creditors, over a three-to-five-year period, offering a good faith proposal to pay off all or part of the debts from the debtor's future income.
A Chapter 13 bankruptcy can:
- Prevent the foreclosure of a home
- Catch up delinquent car or mortgage payments
- Help pay back taxes
- Stop interest from accruing on your tax debt (local, state or federal)
- Keep valuable property which is nonexempt in a bankruptcy
- Manage other financial situations which may be affected by a Chapter 13 bankruptcy proceeding
Creditors often will work with debtors in a Chapter 13 bankruptcy, as Chapter 13 provides the opportunity to recover funds from you (as opposed to a Chapter 7 bankruptcy, where the ability to recover the debt may be eliminated).
Those who are more likely to file for a Chapter 13 bankruptcy are individuals who seek to hold on to possessions such as a home, vehicles or other property or assets.
In a Chapter 13 there are two kinds of assets: assets that the individual owns free and clear, and assets that secured creditors have security interests in. A person who successfully completes a Chapter 13 will not have to give up any property that is owned free and clear. An individual also will likely be able to keep secured property, such as a house or car, if they can propose a Chapter 13 plan that will provide for the payment of the amount the individual is in default.
We are extremely detailed in our preparation regarding your Chapter 13 bankruptcy, provide a comprehensive approach in seeking a successful Chapter 13 bankruptcy, and guide you through this difficult process with the dignity and respect you deserve.
Frequently Asked Questions
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a repayment plan bankruptcy. You repay a portion of your debts over three to five years. The unpaid portion of the debts is eliminated, just like in a Chapter 7 bankruptcy. At your free consultation, Attorney Brace W. Luquire will review your debts and give you an estimated repayment plan for your Chapter 13 bankruptcy.
What happens to my property in a Chapter 13 bankruptcy?
Generally, you keep all your property when you file a Chapter 13 bankruptcy. Because you are repaying a portion of your debts, the bankruptcy trustee does not attempt to sell your property. At your free consultation, attorney Brace W. Luquire will review your property and discuss what effects a Chapter 13 might have.
Do I have to repay 100% of my debts in a Chapter 13?
No. If you cannot repay 100% of your debts within the Chapter 13 time limit, the unpaid portion of most debts will go away, just like in a Chapter 7. At your free consultation, attorney Brace W. Luquire will tell you which of your debts will be eliminated, which debts will be paid in full, and which debts will not be discharged by a Chapter 13 bankruptcy.
What will my monthly payment be in a Chapter 13?
In most cases, your Chapter 13 payment is determined by your monthly budget. Attorney Brace W. Luquire will help you create a monthly budget based on your income and necessary monthly expenses. In many situations, your Chapter 13 payment will be equal to the money you have left over after you pay your necessary living expenses.
Will Chapter 13 bankruptcy stop a garnishment or utility shutoff?
Yes. As soon as your bankruptcy is filed with the court, a garnishment will stop and any utility shutoff will be prevented. You are required to pay all new utility charges and may be required to pay a deposit.
Will Chapter 13 bankruptcy stop a foreclosure?
Yes. As soon as your bankruptcy is filed with the court, the foreclosure will stop. Chapter 13 bankruptcy will also allow you to repay your mortgage arrears in full, over a period of three to five years. Schedule a free consultation with attorney Brace W. Luquire to learn more.
Will Chapter 13 bankruptcy stop a car repossession?
Yes. As soon as your bankruptcy is filed with the court, the repossession will stop. Chapter 13 bankruptcy will allow you to repay your car arrears or total debt in full, over a period of three to five years. Schedule a free consultation with attorney Brace W. Luquire to learn more.
I have a previous bankruptcy. Can I still file a Chapter 13 bankruptcy?
Yes. Chapter 13 bankruptcy is available even though you have filed a previous bankruptcy. At your free consultation, attorney Brace W. Luquire will discuss the effect your previous bankruptcy will have on a new Chapter 13 bankruptcy.