Chapter 13 bankruptcy
Keep your home and catch up on a plan you can afford
Chapter 13 stops foreclosure and repossession and gives you three to five years to repay what you're behind on. You make one monthly payment to the trustee, and the trustee pays your creditors.
How the plan works
One payment, set by what you can afford
Your plan payment is based on your income, your necessary expenses, and what you need to catch up on. If your income is under the Ohio median, the plan usually runs three years. If it's over, it usually runs five.
Secured debts like a mortgage or car loan get caught up through the plan. Unsecured creditors, like credit cards, often receive only part of what they're owed. When you finish, the rest of that qualifying debt is discharged.
If life changes during the plan
Three to five years is a long time. If you lose a job or face a medical emergency, we can ask the court to modify your plan.
What Chapter 13 can do
Tools Chapter 7 doesn't have
Stop a foreclosure
Spread missed mortgage payments over the plan while you keep making your regular payment.
Save a car
Stop a repossession. In some cases, lower the balance to the car's value or reduce the interest rate.
Pay taxes over time
Repay recent income taxes through the plan while the IRS and the State of Ohio stop collecting.
Remove a second mortgage
If your home is worth less than you owe on the first mortgage, a second mortgage or home equity line can be treated as unsecured debt.
Timeline
What a Chapter 13 case looks like
Filing day
We file your petition and proposed plan. Collection and any sheriff's sale stop.
First payment within 30 days
Plan payments start within a month of filing, often through a payroll deduction.
Meeting of creditors
The trustee reviews your plan and asks questions under oath. We attend with you.
Confirmation
The judge approves the plan. From then on, you follow it month by month.
Discharge
After your last payment and the debtor education course, the court discharges your remaining qualifying debt.
Who qualifies
What you need for Chapter 13
Regular income to fund a plan, from a job, self-employment, a pension or benefits
Debts under the federal limits for Chapter 13, which most households are well within
Tax returns filed for recent years
No other bankruptcy case open at the same time
Income above the Ohio median doesn't rule you out. It usually means a five-year plan instead of three.
What it costs
How fees work
You'll know what your case costs before you decide anything. We can give you an estimate over the phone and an exact fee once we've looked at your situation.
In Chapter 13, much of our fee can often be paid through your plan payments, so you can usually get started with less up front. The court's filing fee and the two required courses are separate, and usually modest.
Chapter 13 questions
Do I have to pay back everything I owe?
Usually not. You catch up what you're behind on for your house or car and pay what you can afford toward other debts. Credit card and medical debt is often paid back at well under 100 percent, and the rest is discharged when you finish.
Can I get back a car that was already repossessed?
Often, yes, if we act quickly. Filing Chapter 13 can require the lender to return the car while you pay for it through the plan.
Does interest keep piling up on my credit cards?
In most cases, no. Interest generally stops on unsecured debts like credit cards and medical bills once your case is filed.
What if I miss a plan payment?
Call us right away. If your income drops or you have an emergency, the plan can sometimes be changed. Missing payments without doing anything can get the case dismissed.
I filed Chapter 7 a few years ago. Can I file Chapter 13 now?
Often, yes. Even when you can't receive another discharge yet, a Chapter 13 plan can still stop a foreclosure or repossession and give you time to catch up.
Have a sale date coming up?
Call now. The sooner we file, the more options you have.