Experienced Chapter 13 Bankruptcy Lawyers Serving Northwest Ohio

If you are working but falling farther and farther behind on your mortgage payments and your credit card bills, we can help. Mahaffey & Associates, can step in to save your home, stop creditor harassment and get you back to financial stability.

Our attorneys will sit down with you to explore Chapter 13 bankruptcy as a solution if you do not qualify to file a Chapter 7. We have helped hundreds of clients in the greater Toledo area and surrounding counties of Ohio and southeast Michigan get relief from bill collectors while paying down their debts over time.

The Chapter 13 Debt Repayment Plan

In Chapter 13 bankruptcy, you pay a set amount each month for three to five years, based on income available after paying your living expenses. Here are some Chapter 13 benefits:

• You typically do not give up any assets in Chapter 13 bankruptcy.
• Creditors must immediately stop the phone calls and collection actions.
• Garnishment, repossession and foreclosure are put on hold.

If you complete your repayment plan successfully, any remaining unsecured debts will be discharged.

How Chapter 13 Differs From Chapter 7

The two basic options for consumer bankruptcy are Chapters 7 and 13. They both offer debt relief but in significantly different ways. As mentioned above, Chapter 13 focuses on repaying your debts over time by reorganizing them into a manageable payment plan with more favorable terms. Chapter 7 focuses on discharging most debts, meaning that they are forgiven. The tradeoff, however, is that you may need to give up certain assets to partially repay creditors.

Here are some additional differences:

• Chapter 7 stays on your credit report for 10 years, while Chapter 13 stays on for just seven years
• You need to pass a means test to qualify for Chapter 7, which is not the case with Chapter 13
• Chapter 13 takes longer to complete, but it could help rebuild your credit by demonstrating that you can make consistent payments over time and that you are making good-faith efforts to pay your debts

Our attorneys can help you decide which option may be best for you.

Beware Of Debt Reduction Services

There are many “debt counseling” agencies that will offer to slash your debts through consolidation or negotiation with your creditors. Mahaffey & Associates has rescued many clients after those services failed to get them out of debt. Only bankruptcy offers legitimate protection from creditors, and most Chapter 13 debtors pay back far less than they owe.

When Chapter 13 Bankruptcy May Be Right For You

You may be a good candidate for Chapter 13 under any or all of the following circumstances:

• If your income is too high for Chapter 7 liquidation bankruptcy
• If you face home foreclosure because you are behind on your mortgage payments
• If you have a significant amount of home equity or other assets that would be forfeited in Chapter 7

Our attorneys will sit down with you to examine your income, assets, debts and expenses to make sure you can qualify for a Chapter 13 bankruptcy plan, and to explain other debt-relief options.

Frequently Asked Questions About Chapter 13 Bankruptcy

Those struggling with unmanageable financial obligations like medical bills or outstanding debts can seek relief and a chance for a fresh start with Chapter 13 bankruptcy. However, the legal landscape is complex, requiring careful consideration and experienced guidance for bankruptcy filings. We have answered some commonly asked questions below:

Will Chapter 13 bankruptcy wipe out all of my debt?

Chapter 13 bankruptcy does not necessarily wipe out all debt. However, it allows you to reorganize your debts into a manageable repayment plan over some time.

Certain debts, such as tax debt and student loans, may not be fully discharged, but the restructuring provided by Chapter 13 can help alleviate your financial burden.

How long does it usually take to go through a Chapter 13 bankruptcy?

A Chapter 13 bankruptcy lasts three to five years, during which you follow a court-approved repayment plan overseen by a bankruptcy judge. The exact period can vary depending on factors such as the complexity of your financial situation, the cooperation of your creditors and any unforeseen challenges that may arise.

However, if you diligently adhere to the plan and make timely payments, you can steadily progress toward financial stability.

What can I expect from a Chapter 13 bankruptcy attorney?

A Chapter 13 bankruptcy attorney guides you through every stage of the bankruptcy process. They will:

• Assess your financial situation
• Help you prepare and file your bankruptcy petition
• Represent you in court proceedings according to bankruptcy laws
• Negotiate with creditors on your behalf to create a feasible repayment plan, including debt restructuring

Due to their expertise in bankruptcy law, a bankruptcy attorney can help ensure your rights are upheld and that you achieve the most favorable outcome. By highlighting the importance of handling priority debts, debt balances and tax debts, they can help you understand how to navigate the legal process involved in Chapter 13 bankruptcy.

Timeline Of The Chapter 13 Bankruptcy Process 

The process of developing a repayment plan to manage debts can be complex. However, understanding what to expect when filing for bankruptcy can make it easier to navigate the process. 

• Initial consultation and preparation (one to two weeks): During this meeting, your financial situation, including credit card debt, medical debts, secured debts and personal loans, will be reviewed. This step helps determine if Chapter 13 bankruptcy is the best option.
• Filing bankruptcy and the automatic stay (one day): Once you proceed, your lawyer will file the Chapter 13 bankruptcy petition. Filing officially starts the bankruptcy proceedings and triggers an automatic stay, stopping collection efforts, including garnishment, foreclosure and repossession. This stay offers immediate bankruptcy protections against most creditors, giving you the breathing room to work out a repayment plan.
• Appointment of the bankruptcy trustee and creditor notification (one to two weeks): Shortly after filing, a bankruptcy trustee is appointed to your case. The trustee oversees your bankruptcy proceedings and helps ensure the proposed repayment plan is reasonable. Within a week or two, creditors are notified of your filing and the details of the automatic stay. This step helps prevent actions like wage garnishments from continuing.
• Development of the repayment plan (two to four weeks): The next phase involves developing a repayment plan, which usually spans three to five years. The plan will outline how your disposable income will be allocated to pay off secured debts like mortgages and car loans and other debts like credit card debt and personal loans. The plan must be submitted to the court for approval.
• The 341 meeting of creditors (approximately 30 days after filing): You will attend the 341 meeting, where the bankruptcy trustee and creditors can ask questions about your financial situation. It is a critical part of the bankruptcy proceedings as it offers transparency and accuracy in the information you provide.
• Plan confirmation and payment schedule (60-90 days after filing): If there are no objections to your repayment plan, the court will confirm it within 60 to 90 days after the initial filing. Once confirmed, you will begin making payments as outlined.
• Completion of payments and discharge (three to five years): Over the next three to five years, you will make regular payments under the supervision of the bankruptcy trustee. Upon completion of all payments, any remaining eligible debts, including unsecured debts like credit card and medical debts, may be discharged.

Each step, from the initial consultation to the final discharge, can help achieve successful debt resolution and financial stability with the help of an attorney.

Get Started With A Free Consultation

Call us today at 419-741-0111 or send us a message online to request a free consultation. We can meet clients at our office in Sylvania, including evenings and weekends by appointment.

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