Chapter 13 Bankruptcy

Chapter 13 Bankruptcy for Beginners

Chapter 13 bankruptcy is a debt repayment plan typically lasting 36-60 months. During the repayment period,  debtors are protected from their creditors while making one monthly payment to the Chapter 13 Trustee.  A unique aspect of Chapter 13 is that debtors may also include priority debts, such as student loans, taxes, and child support arrears. We anticipate that Chapter 13 bankruptcies will make up nearly 12% of all bankruptcy filings in Toledo, Ohio in 2020.

COVID19 Notice – If you are in a pending chapter 13 bankruptcy and the Corona virus pandemic has substantially hurt your chapter 13 repayment plan, the CARES Act may be of help to you. Call your chapter 13 bankruptcy attorney to discuss your options.

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Chapter 13 is common for debtors with regular income who either don’t qualify for Chapter 7 bankruptcy or who need a repayment plan. To our friends who are considering debt counseling, we suggest to also compare Chapter 13.  Not only can Chapter 13 stop  home foreclosures and wage garnishments, but in certain cases it may offer a lower monthly payment plan.
No. Unlike its Chapter 7 counterpart, in Chapter 13 bankruptcy there is no liquidation risk.  Our clients move forward with confidence knowing that they are protecting their property while paying down their debts.
Specific repayment terms vary on a case by case basis.  The maximum length of any such repayment plan is 60 months.  In some cases, a debtor will finish early and be on their way to financial independence.  During your free initial consultation we will take the time to explain the whole Chapter 13 process in a manner that is understandable and relevant to your needs and goals.  For each Chapter 13 debtor the repayment period begins 30 days post filing.
Yes.  Chapter 13 bankruptcy does not have an 8 year waiting period between filings like its Chapter 7 counterpart.  While Chapter 13 debtors receive protection from their creditors, it is important to discuss the timing of your previous Chapter 7 with your bankruptcy attorney.  To be eligible for a discharge at the end of the repayment plan, the prior Chapter 7 filing must be at least 4 years old.