Knevel Law Co. LPA

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Cleveland Chapter 13 Bankruptcy Lawyer

Experienced Chapter 13 Bankruptcy Assistance in Ohio

Cleveland Chapter 13 Attorney

Are you considering bankruptcy as a business owner or self-employed worker? Filing for Chapter 13 may be your solution. Also called a wage earner's plan, a Chapter 13 bankruptcy acts like a consolidation loan as it enables an individual to develop a court-approved plan to repay his or her debts.

Does Chapter 13 Wipe Out All Debt?

Chapter 13 does not wipe out all debt. It allows individuals to catch up on their mortgage and car loan payments by restructuring the debt. When the payment plan is completed, Chapter 13 discharges most remaining nonpriority, unsecured debts.

Debts that Chapter 13 can wipe out:

  • Credit Card Debt
  • Utility Bills
  • Medical Bills
  • Old, Nonpriority Income Tax Obligations
  • Personal Loans

Chapter 13 also allows you to eliminate debts that cannot be discharged in Chapter 7. Some examples are:

  • HOA fees that were due after your bankruptcy filing date
  • Debt used to pay nondischargeable tax obligations
  • Debts from a property settlement agreement during a divorce
  • Certain fines and penalties owed to the government, except for criminal fines

Looking for debt solutions? Contact our office in Cleveland, OH online or call (215) 450-6689 for a free consultation with a Cleveland Chapter 13 bankruptcy lawyer.

Understanding Chapter 13 Bankruptcy

Under Chapter 13 bankruptcy, the debtor proposes a three to five-year debt repayment plan. During this time, creditors are ordered to stop wage garnishments, home foreclosures, property repossessions, and more. Depending on your financial circumstances, you may be able to repay your unsecured creditors as little as 1%.

  • Under chapter 13 bankruptcy, you can:
  • Save your home from foreclosure
  • Stop foreclosure proceedings
  • Resolve delinquencies on your mortgage
  • Reschedule some secured debts and extend them over the life of the repayment plan

Who is Eligible for Chapter 13 Bankruptcy?

An individual who is self-employed or operating a business will likely be eligible for relief under Chapter 13 if the debts are less than what is designated in 11 U.S.C. § 109(e).

Below are the requirements for filing Chapter 13:

  • You have not had debt discharged through Chapter 7 in the last two years
  • You have not had debt discharged through Chapter 13 in the last four years
  • Your debts fall within the limits:
    • $419,275 - unsecured debt
    • $1,257,850 - secured debt
  • Your income tax returns have been filed
  • Your proposed repayment plan can pay back all of the required debts
  • Your income is sufficient enough to pay the debt
  • You must receive credit counseling from an approved agency within 180 days before filing

The individual cannot file under this chapter, or any other chapter if they failed to comply with the orders of the court during a previous bankruptcy case within 180 days. If you have questions about this option for resolving debt, reach out to our experienced Cleveland Chapter 13 bankruptcy attorneys.

Contact Our Cleveland Chapter 13 Bankruptcy Attorney Today

If you have mounting debts and are interested in learning more about chapter 13 bankruptcy, Knevel Law Co. LPA may be able to help. When you hire our Ohio firm to take on your bankruptcy, we will educate you on the benefits of Chapter 7 and Chapter 13 bankruptcies and help you determine which will work best for you.

If you choose to move forward, we will file all schedules of assets and liabilities, current income, contracts, leases, and more with the court. Having all of this information organized and ready to present to your Cleveland bankruptcy attorney will help to expedite the bankruptcy process and get you back on your feet financially. Our attorneys will prepare your bankruptcy documents in a clear way for any Chapter 13 trustee in Cuyahoga County, OH.

Call Knevel Law Co. LPA today at (216) 450-6689 for a free case consultation to see if filing for Chapter 13 is right for you. We help clients throughout Ohio who are facing insurmountable debt.