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Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a versatile and effective debt relief tool that can help you to protect your assets while regaining control of your money. Bankruptcy can be a scary word to many people. Some envision men in gray overalls carting off their every possession for sale before debts are eliminated. Of course, this grim scenario never plays out quite as harshly as people think—and Chapter 13 bankruptcy is an entirely different option altogether. Not only are those going through a Chapter 13 case free to retain all personal property, but their debts are restructured, consolidated, and—after a payment plan lasting three to five years, often discharged completely.

As soon as Minnillo Law Group Co., LPA, files a Chapter 13 bankruptcy petition, all creditor harassment will stop, repossession actions will stop and the threat of foreclosure will stop. You will have the opportunity to rebuild your financial life, and eventually your credit rating.

The Benefits of a Chapter 13 Bankruptcy

A Chapter 13 bankruptcy filing is the best choice for people who have income and want to protect their homes and other assets. A Chapter 13 bankruptcy may also be the right choice for a small business owner, rather than a Chapter 11 business bankruptcy. For some, however, a Chapter 7 bankruptcy is best. Minnillo Law Group Co., LPA, can help you determine the optimal path to take.

Chapter 13 repayment plan

Chapter 13 is sometimes referred to as individual debt adjustment. It is a court-facilitated debt repayment process.

In a Chapter 13 bankruptcy, you agree to a debt repayment plan that usually involves a partial reduction in your nonsecured debts, reduced interest rates on your secured debts, and extended payment terms. This can provide you with the financial breathing room you need to make a financial recovery. You can keep your house and your retirement assets and in most cases your vehicles and other personal property. Moreover, if you are underwater on your mortgage and have a second mortgage or more home equity loans, Chapter 13 can help you eliminate, or “strip,” the junior liens.

The repayment plan process

Each debtor who goes through Chapter 13 files a repayment plan for approval by a bankruptcy court. Under every repayment plan, a debtor will make a single periodic payment to their Chapter 13 trustee, who will then distribute funds to creditors according to the terms of the plan.

The payment amount depends on factors like the debtor’s ability to pay, the amount owed and the type of debt (to make the plan workable, payments are typically lowered). A Chapter 13 repayment plan lasts for a term of three to five years. At the end of the term, any remaining balance on most types of debt is discharged (significant exceptions include long-term obligations like a home mortgage or student loans).

Since 1996, thousands of married couples and individuals in the Cincinnati area have turned to our seasoned bankruptcy attorneys to structure an effective strategy to pay off all, or a substantial portion, of their debts through a Chapter 13 payment plan. This is not a “debt-consolidation” scheme, but a sanctioned legal process for meaningful debt relief under the Bankruptcy Code. With the help of Minnillo Law Group Co., LPA, you can make a new financial start. Call us at 513-723-1600 to arrange for a free, no-obligation consultation. An attorney at our firm can evaluate your situation, review your options and recommend the financial strategy that is right for you.

Chapter 13 Bankruptcy Eligibility

Only individuals with less than $2,750,000 of secured and unsecured debts as of the date of filing for bankruptcy relief may file for Chapter 13 bankruptcy. Furthermore, barring exceptional circumstances, anyone filing for Chapter 13 bankruptcy must receive credit counseling from an approved agency within 180 days before submitting a bankruptcy petition. To be successful in a Chapter 13 plan, some form of regular income is also required.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.