Columbus, Ohio Chapter 13 Bankruptcy Lawyer
Q&A with a Columbus, Ohio Chapter 13 Bankruptcy Lawyer
Friedman Law Offices offers representation in Chapter 13 bankruptcy cases throughout the greater Columbus area. If you bills are mounting and you are struggling to stay afloat you may benefit from a Chapter 13 bankruptcy. Call today for a free consultation with a Columbus, Ohio Bankruptcy lawyer.
What is a Chapter 13 bankruptcy?
A Chapter 13 bankruptcy is a legal proceeding where a debtor seeks to restructure their debts and make payments over a period of 3 to 5 years. When you file a Chapter 13 bankruptcy you must propose a specific plan for the repayment of your debts. Once the bankruptcy trustee approves your repayment plan, you will only have to make one monthly payment. The bankruptcy trustee will then take the monthly payment and distribute it amongst the creditors. Once the final payment is made on the plan the remaining dischargeable debts are wiped away.
I am behind on my mortgage and I want to keep my house
With a Chapter 13 bankruptcy you can keep your house even when you have fallen behind on the mortgage. The arrearage on your mortgage can be put into the repayment plan and paid off over the course of the bankruptcy plan. You will still have to pay your regular mortgage payment each month and this payment will continue to be made outside of the Chapter 13 repayment plan.
Why would someone choose a Chapter 13 over a Chapter 7 bankruptcy?
There are a number of reasons why someone might choose a Chapter 13 over a Chapter 7 bankruptcy:
- A Chapter 13 will allow you to keep your house or car even if you have fallen behind on the payments.
- A Chapter 13 will allow you to keep exempt and non-exempt property. A Chapter 7 bankruptcy will only allow you to keep exempt property.
- You get additional time to pay debts that are non-dischargeable (such as some types of taxes).
- Some people don’t qualify for a Chapter 7 bankruptcy because their income is too high.
- Some people feel that Chapter 13 is morally preferable to Chapter 7 because it allows them to pay some or all of their debt over a period of time.