Chapter 13 is a payment plan where you pay the Court and the Court pays the creditors. Plan payments are based specifically on that particular person’s situation. The Chapter 13 Plan lasts 36 to 60 months. In Chapter 13, you can pay as low as 1% of your unsecured debts, such as credit cards & medical bills, and not be liable for the remaining balance upon the completion of your Chapter 13. Chapter 13 can stop foreclosures on your home & real estate, and stop repossession of your vehicles, and other assets. You may re-obtain a repossessed vehicle, if you act promptly.
1. FORECLOSURE /REPOSSESSION: If you want to keep your house even though it may be in foreclosure, or if you want to keep your vehicle even though you are behind on the payments.
2. EQUITY IN YOUR REAL ESTATE: If you have more than $136,925 in equity ($273,850 for a married couple that jointly owns the real estate) in your residence, or if you have any equity in any other real estate. (Equity = Property Value Minus All Mortgages Or Liens On The Property)
3. EQUITY IN YOUR VEHICLE OR OTHER PROPERTY: If you have any equity above the amount permitted by Ohio exemptions (listed here). (Equity = Property Value Minus All Loans Or Liens On The Property)
Normally Chapter 13 cases are $310.00 for Court costs and a deposit of $311.00 on the attorney fees. You need to pay at least $621.00 to my office prior to the filing of your bankruptcy with the Court. The deposit for business and emergency Chapter 13 cases may be higher. Your remaining attorney fees are then paid by Court disbursement within your Chapter 13 Plan.
This is when a creditor has filed a foreclosure lawsuit against you and has or will be getting an order to sell your home at an upcoming sheriff’s sale. Unless you file Chapter 13 before the sale date of your home, your home will be sold and you will have to move out.
This is also when a creditor has repossessed your vehicle and has an upcoming sale date. Unless you file Chapter 13 before the sale date of your vehicle, your vehicle will be sold and you will not be able to get it back.
The Chapter 13 process is far superior to paying $1000 to a Mortgage Foreclosure “Specialist” which may have written a form letter to you. These programs are normally just a waste of your money. Your money is better spent on a U.S. Government approved Chapter 13 to effectively save your house, vehicle, and other assets. Bankruptcy attorneys are able to stop foreclosures and lawsuits by filing Chapter 13 Bankruptcy, which allows you to catch up your mortgage payments during the Chapter 13 Payment Plan.