In the face of mounting debt, many people are unsure of how to get it under control, while protecting themselves from creditors. Sundberg Law Offices LLC helps clients in Columbus, OH explore the option of Chapter 13 bankruptcy—often called reorganization bankruptcy. Through this process, we help you consolidate your debts, set up a repayment plan, and eventually, pursue debt dischargement.
Our experienced Chapter 13 bankruptcy attorneys have practiced in Ohio for more than two decades. They bring unparalleled knowledge of state and federal stipulations to the table, helping you pursue the best outcomes for your bankruptcy filing.
What is Chapter 13?
If you have steady income and the ability to slowly repay a portion of your debts over time, you’ll likely file for Chapter 13 bankruptcy. This declaration focuses on restructuring your debt into manageable terms and paying back a monthly amount to your creditors, as set by the court. To file for Chapter 13, you must meet certain criteria and prove that you are:
- Up-to-date on tax filings
Within debt amount limitations;
- Under $394,725 of unsecured debt
- Under $1,184,200 of secured debt
- Employed, with income to cover monthly payments
- An individual, not a business
After a period of time determined in the scope of your Chapter 13 filing, and with consistent repayments according to the plan, you may become eligible to discharge some unsecured debts. This includes credit card debt, medical bills, lawsuit judgments, personal loans and almost any other type of debt absent collateral.
There are debts that cannot be discharged through Chapter 13, however. Child support and alimony, fines and restitution from criminal activity, debt from luxury purchases and student loan debt will all stay with you through a Chapter 13 filing.