If you have fallen behind on your debts, filing for Chapter 13 bankruptcies in Columbus may help. Chapter 13 allows you to reschedule your debts, pay what you owe over a certain period of time and eliminate some debt altogether. By filing early and following the court guidelines, you’ll be able to avoid foreclosure or repossession. An attorney can explain the various requirements and eligibility conditions involved. Chapter 13 is meant for individuals and unincorporated, small businesses. In order to file, your unsecured debt cannot exceed $336,900, and your secured debt cannot exceed $1,010,650. When filing, you must disclose every debt and asset you have as well as proof of regular income. Your petition to the bankruptcy court must include a plan of repayment on some or all of your debts. The repayment period will be three to five years. The debts that most commonly cannot be discharge in bankruptcy include support obligations, recent taxes, and student loans. There are a number of other debts that cannot be discharged in bankruptcy, but it is advisable to seek the advice of an experienced bankruptcy attorney to determine if any other debts cannot be discharged in bankruptcy.
A trustee appointed to your case will hold a meeting of creditors in order to resolve any issues regarding your plan. Within 45 days of the meeting, a judge will hold a hearing and either confirm or dismiss the plan. Your case may be dismissed if you fail to supply the court with the proper paperwork or you don’t meet certain financial obligations after filing. Once your Chapter 13 plan is approved, you must regularly make payments to your trustee. Creditors cannot take action against you if you stick to your plan. Because domestic support and tax obligations are priority debts, they must be paid in full. You don’t have to pay unsecured debts in full as long as you are using any disposable income to repay them. If you cannot make payments, your plan may be dismissed. This is why it’s important to speak with a knowledgeable lawyer before creating a repayment schedule. With the right Chapter 13 plan, you can stop paying high interest, catch up on delinquencies and keep your property. Contacting a bankruptcy attorney today could put you back on track for tomorrow.