When it comes to filing for bankruptcy, it is normal to have many questions. This can be a stressful and complex time, and you may be unsure if Chapter 7 or Chapter 13 bankruptcy is right for you. To answer your most commonly asked questions, continue reading our Chapter 13 bankruptcy FAQ below.
If you or a loved one is facing bankruptcy and is unsure of your options, do not hesitate to contact our dedicated Cleveland Chapter 13 bankruptcy lawyers at Luftman, Heck & Associates. We can thoroughly review your case and discuss your next best steps. To get started with a free consultation, contact us at (216) 586-6600 today, or reach out online.
Chapter 13 Bankruptcy – What You Should Know
Common questions those considering bankruptcy might ask include:
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy allows you to maintain and keep your assets while discharging your unsecured debts. It typically falls under a three to five-year repayment plan. If you are fully able to make your payments on time within this period, your remaining debts can be removed. It is important to note that student loans, alimony, and child support payments are not considered dischargeable debts.
This may be a good option for you if you have a regular income but have difficulty making your debt payments. Through this form of bankruptcy, you may be able to avoid foreclosure, make up payments, prevent accruing interest, and more.
What are some advantages of Chapter 13 bankruptcy?
There are several advantages to Chapter 13 bankruptcy, such as:
- Avoiding foreclosure – You may be able to keep your home through a Chapter 13 repayment plan.
- Lack of creditor contact – In this type of bankruptcy, your main point of contact is a court-appointed trustee instead of a creditor.
- Ability to pay off secured and non-dischargeable debts – You can often pay off these types of debts at a reduced amount through filing a Chapter 13 bankruptcy.
What are some disadvantages of Chapter 13 bankruptcy?
While filing Chapter 13 bankruptcy can have several advantages, there are also several cons that are important to be aware of. These include:
- A three to five-year repayment plan
- Losing the ability to have credit cards
- Challenges obtaining a mortgage
- An extremely low credit score
It is important to weigh the pros and cons of filing Chapter 13 bankruptcy with an experienced Ohio bankruptcy attorney.
Am I eligible to file Chapter 13 bankruptcy?
To be eligible to file Chapter 13 bankruptcy, you must not have more than $394,725 in unsecured debt, including personal loans or credit card debt. Additionally, you cannot have any more than $1,184,200 in secured debts, such as mortgages.
It is important to note that these maximums can fluctuate in accordance with the consumer price index.
How can an attorney help?
A skilled lawyer can help you throughout the entire bankruptcy process. This includes an initial evaluation of your case, filing bankruptcy, and the steps that follow. Having an experienced lawyer can help ease the emotional stress during this time and relieve you of the pressure of figuring out the legalities behind your case.
Contact Luftman, Heck & Associates Today
Are you debating if Chapter 13 bankruptcy is right for you? Our Ohio bankruptcy attorneys have many years of experience in helping evaluate debt cases and fighting for our clients to receive their best outcome.
To learn more about your eligibility for Chapter 13 bankruptcy, do not hesitate to reach out and schedule a free, initial case consultation with our skilled team. Contact Luftman, Heck & Associates right away at (216) 586-6600, or through our online form to get started.