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What is Chapter 13?

There are many options for Columbus debt relief, including Chapter 13 bankruptcy. Sometimes called “reorganization,” Chapter 13 is the more complex of your two types of bankruptcy.

How do I know if Chapter 13 is right for me?

This form of Columbus debt relief is most appropriate for individuals:

  • who earn more than the IRS Standards for Chapter 7,
  • who are behind in payments on a house or car and want to keep these items,
  • who have assets above and beyond those allowable in Chapter 7, or
  • have filed Chapter 7 within the last eight years.

Your attorney can help you evaluate if Chapter 13 is the best fit for you for Columbus debt relief.

What help can filing provide immediately?

As with Chapter 7 , filing your petition places you under an “automatic stay.” This protection immediately stops your creditors from trying to collect what you owe them. During this time, creditors cannot legally garnish your wages, empty your bank account, repossess your car, evict you from your home, or cut off your utility services. Many people find the automatic stay of immense benefit in helping them stabilize their financial situation.

What happens after I file my petition?

Processing a petition for Chapter 13 Columbus debt relief takes longer than Chapter 7 and is more complex. When your petition is approved, you will be responsible for paying some or all of what you owe your creditors over a 3 to 5 year time period.

How much you are required to pay is based on several factors. Your attorney can review with you what you can expect through the Columbus debt relief process and what your likely outcome is. Some clients are on a 1% payment plan, which requires them to pay one cent for every dollar that they currently owe. Others pay a higher percentage of their outstanding debt. One of the benefits of partnering with an experienced attorney is that we can help you secure the lowest percentage plan possible, potentially saving you thousands of dollars in repayments.

What if I’ve filed before? What if I ever need to file again?

If you need to pursue Columbus debt relief again, you may be eligible for Chapter 13 bankruptcy if it’s been more than four years since you filed for Chapter 7, or more than two years since you’ve filed for a previous Chapter 13. Your attorney can help you determine whether you’re eligible to file currently based on this and other factors.

How do I qualify for Chapter 13?

Your petition for Columbus debt relief must demonstrate that you meet a number of criteria, including that you receive regular income that covers your living expenses, that your secured and unsecured debt do not exceed established caps, and that you’ve met all requirements for credit counseling and education necessary to qualify for bankruptcy. Your Ohio bankruptcy attorney will look at your personal situation and establish whether Chapter 13 is your best option and what you can expect from the process.

Contact your expert bankruptcy attorney today for a free consultation to get answers to your questions on how to start the process of Columbus debt relief.