Escolar Documentos
Profissional Documentos
Cultura Documentos
Get a Better Understanding AboutChapter 13 Bankruptcy In Ohio So You Can Choose Which Bankruptcy Chapter Is Right for You and Your Situation
CHAPTER 13
SCOTT R. NEEDLEMAN
BANKRUPTCY AND FORECLOSURE DEFENSE ATTORNEY
Financial difficulties affect far more than just your bank account. Worrying about debts and creditors can have a negative impact on your work and family life as well, ultimately making a bad situation worse. Bankruptcy may be the answer. In 2012, nearly 1.175 million consumer bankruptcies were filed throughout the United States, marking yet another year of increased filings caused, in large part, by the recent economic recession. If you decide to file bankruptcy, know that you are not alone. Once you have made the decision to file you will also need to choose which chapter is right for you and your situation. Most individual debtors file under chapter 7 or chapter 13. Understanding more about chapter 13 bankruptcy may help you decide if it is right for you.
thecolumbusbankruptcylawyer.com
protect. Finally, chapter 13 is referred to as a wage -earners bankruptcy because it is commonly used by debtors who have a moderate to high regular source of income and/or who have valuable non-exempt assets to protect.
CHAPTER 13 BASICS
A chapter 13 bankruptcy commences when the petition for bankruptcy is filed with the appropriate U.S. Bankruptcy Court. To file in Ohio you must have made Ohio your primary place of residence for at least 91 of the 180 days preceding the filing of the petition OR your primary assets must have been located in Ohio during that time. When the petition is filed the court will issue an automatic stay to all creditors. The stay prevents a creditor from taking any action to collect on a debt owed by the debtor. A trustee will then be assigned to the case. The trustee handles the administration of the bankruptcy and repayment plan. You and your attorney will then develop a repayment plan that allows you to repay the majority of your debts over an extended period of time, typically three to five years. Once the bankruptcy judge accepts the plan you will begin making payments to the trustee. At the end of your repayment plan most remaining debts will be discharged, or eliminated.
CHAPTER 13ELIGIBILITY
You cannot proceed under Chapter 13 if you received a previous discharge under Chapter 7, 11 or 12 within the previous four-year period. If the prior case was a Chapter 13, you must wait two years before you are eligible for
thecolumbusbankruptcylawyer.com
another Chapter 13 discharge. In addition, there are limits to the amount of debt you can have in a chapter 13 bankruptcy. The limits are adjusted every three years. For April, 2013 through April, 2016 the limits are as follows: Unsecured debt -- $383,175 Secured debt -- $1,149,525
thecolumbusbankruptcylawyer.com
Upon the successful completion of the repayment plan, remaining debts are usually discharged.
thecolumbusbankruptcylawyer.com
rating, yet there is no consensus among experts. Since there is no clear answer to that question, it is best to focus on which chapter is better for your overall situation instead of focusing in the impact it will have on your credit. Chances are that your credit rating is less than stellar now if you are considering bankruptcy. Filing a petition for bankruptcy does, as a general rule, cause your credit rating to go down shortly after filing. The degree to which it goes down depends on a variety of factors. A 50-150 point drop is common. While this may be discouraging, keep in mind that the drop is only temporary. Once you have filed your chapter 13 repayment plan, creditors included in the plan are supposed to stop reporting you as late. This alone will begin to repair your credit rating. Although a chapter 13 will remain on your credit report for seven years (versus 10 years for a chapter 7), it will be listed as discharged once yo u successfully complete your repayment plan. Debts included in the bankruptcy will also be listed as discharged or satisfied depending on how they were handled in the bankruptcy. Because the point of a chapter 13 bankruptcy is to provide a debtor with additional time to repay debts, a debtor will continue to build good credit throughout the repayment period if paying on secured debt such a home or vehicle. Therefore, on the date of final discharge a debtor should have eliminated a considerable amount of debt, have a recent history of paying on time, and have a much improved debt to income ratio. For many lenders a debtor just out of a chapter 13 bankruptcy is actually a fairly good credit risk.
thecolumbusbankruptcylawyer.com
thecolumbusbankruptcylawyer.com
what your legal options are with regard to bankruptcy and which chapter will be most beneficial to you and your situation. United States Courts, Chapter 13 Fox Business, Chapter 13 Bankruptcy: How It Works NOLO, An Overview of Chapter 13 Bankruptcy
thecolumbusbankruptcylawyer.com
The Needleman Law Office 5300 E. Main, Suite 109 Columbus, OH 43213 614-575-1188 thecolumbusbankruptcylawyer.com
Every associate at The Needleman Law Office is committed to handling your case in both a personal fashion and in a professional manner. In other words, we treat you the way we would want to be treated. We will take a personal interest in your situation, making sure you understand exactly what is happening and what options you may have. Then well fight to ensure the best possible outcome for your situation.
thecolumbusbankruptcylawyer.com