Ohio Bankruptcy - Chapter 13

Ohio Chapter 13 Lawyers

Chapter 13 Bankruptcy is also known as, “reorganization.” Chapter 13 protection is a structured repayment plan, which, over a certain period of time (normally 3-5 years), and upon successful completion, will allow for your remaining unsecured debts to be discharged.  Those who do not qualify for Chapter 7 relief, normally seek Chapter 13 relief instead.

Based upon my experience there are typically two types of debtors that seek protection under Chapter 13 of the U.S. Bankruptcy Code.  First, some of my clients who are desirous of keeping certain assets, such as their primary residence, but they are in arrears.  One of the requirements to file for protection under Chapter 7 is that the debtor must be current on their mortgage payments.  If it is impossible or impracticle fo rthe debtor to get current on their mortgage payments, then Chapter 13 relief may be their best option.  Today, we are seeing more and more home loan modifications being entered into that may influence which type of bankruptcy relief the debtor will seek.

Second, some of my clients just simply make too much money to qualify under the means test.  For example, if a husband and wife (with no children) has annual household gross income which far exceeds the threshold amount under the means test, then due to their signiifcant income, they would be strongly advised to proceed under the protections afforded by filing for Chapter 13 bankruptcy relief.

Many clients at the initial consultation ask me what would my payment be in a Chapter 13 plan?  I typically respond by informing them that they need to be able to afford  their secured and priority debt, their living expenses, and at least one percent of their unsecured debt.  Now, this is an oversimplification of the calculation needed to determine their plan payment, but it provides them with an idea of how debt is classified and ranked in light of bankruptcy laws.  While 100% of unsecured debt is discharged in a Chapter 7 bankruptcy case, at least 1% of unsecured debt must be paid pursuant to the Chapter 13 repayment plan.

In a Chapter 13 case (like a Chapter 7 case), the debtor must attend the Meeting of Creditors.  You may hear this meeting also referred to as a Section 341 Meeting.  At this meeting, creditors are afforded an opportunity to attend and ask the debtor questions pertaining to his or her assets, liabilities, and intentions.  One of the many goals of the Chapter 13 bankruptcy trustee is to ensure that the Chapter 13 plan is feasible.  Approximately one month after the Meeting of Creditors, a confirmation hearing is held to finalize any outstanding issues concerning the Chapter 13 plan.  In most cases, the debtor does not have ot attend the confirmation hearing.

If you believe that bankruptcy may be an option for you and your family, Sheppard Law Offices can help.  Bankruptcy Attorney Ken Sheppard will meet with you personally and answer any questions you may have about your debt problems and the bankruptcy processes.

So, if you're tired of struggling with your debt, please do not hesitate to call us.  There are always options, but the longer you wait, the longer you will struggle.

Contact Us Today!

A few financial missteps can lead to major future problems, including the inability to repay debt to creditors.  If you are looking for a fresh start, please do not hesitate to call Sheppard Law Offices and find out if bankruptcy may be right for you. Contact us today for a free one-half hour initial consultation.

Since the federal bankruptcy laws changed in 2005, many people are uncertain as to their rights when it comes to filing for bankruptcy.  Although the laws make it more challenging to seek and obtain Chapter 7 (fresh start) and Chapter 13 (repayment plan) relief, the bankruptcy attorneys at Sheppard Law Offices with offices locations in Columbus (Westerville), Newark, and Mt. Vernon Ohio can help you decide what your options are.

CALL 1 (877) 505-9455 TODAY

Our Columbus (Westerville) office is conveniently located near highways I-71 and I-270. Our Newark office is conveniently located one block northwest of the courthouse across from Park National Bank.  Our Mt. Vernon office is conveniently located on the northeast corner of Mulberry Street and Gambier Street.  Our offices are handicap accessible. We accept various options for payment, including credit cards.  However, please note that we cannot accept credit or debit card payments from our bankruptcy clients.  Contact us today for your free one-half hour initial consultation.

There are two options for consumer bankruptcy relief: Chapter 7 and Chapter 13.

Chapter 7
Chapter 13

Contact Sheppard Law Offices and Attorney Kenneth L. Sheppard, Jr. to discuss your particular situation. Call today to schedule your free consultation at 1-877-505-9455.

 

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