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.
Get Started With A Free Consultation
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.