is a Chapter 13?
13 is sometimes referred to as a “wage earner” bankruptcy.
Chapter 13 in Ohio is a voluntary plan you enter into to
pay your debts, or a portion of your debts, over a 3-5 year
period, by making monthly (usually) payments to a Bankruptcy
Trustee. The Trustee
takes a small fee and then distributes the rest of the money to
much of my debts will I have to repay to my unsecured creditors
(such as medical providers and credit card companies)?
depends. There are a
couple factors that determine how much you will have to pay back
to your unsecured creditors.
The 2 main factors that we have to look at in making this
How much equity do you have in your property that you want
How much money is left over each month after you pay your
necessary living expenses?
Chapter 13 Plan in Ohio can provide for your unsecured debts to be
paid back 100%, or down to as low as 0%, depending on the above
factors. Only a good
bankruptcy attorney can accurately tell you how much you will need
to repay your creditors.
When is a
Chapter 13 advisable rather than Chapter 7?
are several situations where a Chapter 13 is typically advisable
over a Chapter 7:
You are behind on your mortgage or car payment and need
time to catch it up.
You have decent income, such that your monthly income
significantly exceeds your monthly living expenses (in other
words, you can pretty easily afford to repay your creditors something).
You have a significant amount of non-exempt (unprotectable)
equity in assets that you want to keep through your bankruptcy.
You have past due taxes that need caught up, and you need
some time to be able to do that.
You are significantly “upside-down” on a vehicle loan
for a vehicle that you purchased more than 910 days prior to your
bankruptcy filing. This
means that you owe more than the vehicle is worth.
Chapter 13 allows you to pay the actual value of the car to
the bank, rather than the amount that is currently owing on the
loan. This is
referred to as a “cram-down.”
We also can often lower the interest rate on the car loan
in a cram-down.
You have more than one mortgage on your home and the first
mortgage alone has owing on it more than the current market value
of your home.
you modify my mortgage on my home loan with a Chapter 13
bankruptcy in Ohio?
the law currently does not allow for a bankruptcy-induced
modification of your home mortgage.
We can modify many other types of loans, such as a mortgage
for a rental property, but the home mortgage cannot be modified
through bankruptcy unless your lender voluntarily agrees to it,
which is very rare. Chapter
13 will, however, allow you to catch up arrearages if you have
fallen behind on your home mortgage payments.
Chapter 13 better on my credit report than a Chapter 7?
research we have done on this topic has led us to the conclusion
that there is no benefit to your credit score in filing a Chapter
13 over a Chapter 7. It
certainly is not a factor on which to base your decision as to
which chapter to file.
does Chapter 13 help me if I am behind on my mortgage and want to
keep my house?
you Chapter 13 is filed, the bank is given the opportunity to tell
the court how much you are behind on your payments.
When we file your Chapter 13 plan, we provide that you will
catch that arrearage up over the life of your bankruptcy plan,
typically 3-5 years. You
will then continue to make your regular mortgage payments, and
will make an additional payment to the bankruptcy trustee (your
Chapter 13 Plan Payment), who will pay that money to your mortgage
company. At the end of your plan, your mortgage should be caught up
and current if you have made all of your payments.
Chapter 13 get rid of my second mortgage on my home?
If your first mortgage is for more than the current market
value of your home, we may be able to “strip off” your second
if I want to file a Chapter 13 but I am behind on child support?
Chapter 13 plan must provide for you to make monthly payments that
will catch up your arrearages by the end of the plan (typically
3-5 years). You also
are required to keep current on your ongoing child support
obligations during the Chapter 13 plan.
NOTICE: This site is not
offering legal advice and nothing on it should be considered to be
legal advice. The information on this site is being offered only
for educational purposes. If you are considering bankruptcy, you
should consult with a licensed attorney who regularly represents
clients in bankruptcy and allow them to review your circumstances
and advise you accordingly.
The Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 Requires the
We are a Debt Relief Agency. We help people file for bankruptcy
relief under the Bankruptcy Code. This web site is not an offer to
provide bankruptcy assistance services to any assisted person as
defined under Section 527(a)(2) of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005.