Filing For Chapter 13 Bankruptcy

In some cases, an individual may not qualify for Chapter 7 bankruptcy due to his or her ability to repay debts. This does not mean that bankruptcy is not an option. Our lawyers at Innocenti Legal, LLC, can assess your situation and determine if Chapter 13 may be right for you.

What To Know About Chapter 13

  • In a Chapter 13 bankruptcy, debts are not dismissed and assets liquidated as they are in a Chapter 7.
    • Instead, debts are reorganized according to the debtor's ability to repay the debts. The debtor is then put on a schedule for repaying the debts, usually within a three to five year period.
  • Your secured and unsecured debt will all be included in the repayment plan.
  • The plan has to be approved by the bankruptcy court.
  • Your credit will be affected by the bankruptcy filing. However, the credit impact is minimal compared to the relief you will feel once you have regained control of your finances and are moving forward.
  • Creditors are prohibited from contacting you once the bankruptcy is filed. An automatic stay is put in place, and all contact must cease. Creditors can go through us, if we are retained as your counsel, instead.

Combining Chapters

It may be possible to file for bankruptcy protection using a combination of Chapter 7 bankruptcy and Chapter 13. Typically, this would mean that some of the debts would be dismissed, some assets would be gathered to pay some debts, and other debts would be reorganized and put on a repayment plan. This is something that is determined on a case-by-case basis though, and is an option that is best discussed with your attorney.

Have questions? We have answers. Call our firm today at 740-689-1372 to schedule an initial consultation. Our Lancaster and Columbus, Ohio, offices can also be reached through our online form.