Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Attorneys Mentor, OH

Chapter 13 Bankruptcy

Reputable Bankruptcy Lawyers Who Understand How to Get Results

Do you find yourself frequently thinking that you could finally conquer your debt if only your repayment schedule was more manageable? Do you earn a decent living but find yourself facing the risk of foreclosure because you fell behind on your mortgage and can’t catch up? Has an accident or serious illness decimated your family’s once well-managed finances?

These are just a few of the reasons why, each year, hundreds of thousands of Americans opt to file for personal bankruptcy. Filing for Chapter 13 bankruptcy is neither a failing nor an abdication of responsibility. It is a way to “press pause” on collections activity so that a manageable repayment schedule can be constructed for the benefit of filers and creditors alike.

Many people mistakenly believe that bankruptcy means the end of their financial journey, when in fact, it can be a fresh start. The stigma around bankruptcy often prevents people from exploring what might be their best path to financial recovery. Chapter 13 bankruptcy, in particular, provides a structured approach that allows individuals to maintain ownership of their assets while addressing their debt obligations in a systematic way. Unlike other debt relief options that could damage your credit for years or force you to sell valuable property, Chapter 13 offers a balanced solution that considers both your needs and those of your creditors.

  • Jon and his staff are way ahead of the game when it comes to the legal field. They are efficient, compassionate, educated, and treat their clients issues as if they are their own. I cannot recommend Jon highly enough.

    Bridgette


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The Chapter 13 Bankruptcy Process

Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy is not subject to specific income requirements. Generally speaking, as long as a filer can demonstrate that they can make regular, manageable payments on their debt load, they can benefit from the Chapter 13 bankruptcy process.

The flexibility of Chapter 13 bankruptcy makes it an attractive option for individuals with steady income who experience temporary financial difficulties, such as unexpected medical bills, job loss, divorce or other challenges. This chapter allows them to restructure their debts without losing their home, vehicle or other essential assets, while considering their actual income, living expenses and total amount owed to creditors, creating a plan that fits their unique situation and helps them regain financial stability.

If you choose to work with attorney Jon Axelrod or Casey Leszak to file for bankruptcy, they will help you to construct a workable repayment plan that is likely to be approved by your creditors. Once your petition is filed with the court, the automatic stay will go into effect. This legal protection will halt foreclosure, wage garnishments, repossessions, and most other collection activities for the duration of your bankruptcy case.

The automatic stay is a powerful protection under bankruptcy law that prevents creditors from contacting, suing, or taking action to collect debt while a case is being processed. This immediate relief gives individuals and families the breathing room they need to focus on creating a repayment plan, free from the constant stress and harassment of collection agencies. For families facing the threat of foreclosure, the automatic stay can be the difference between losing their homes and keeping a roof over their heads. It provides a crucial period of time during which they can work with their financial advisors and develop a plan to overcome their financial difficulties.

If the court signs off on your plan and you make your required repayments faithfully for 3-to-5 years, your remaining eligible unsecured debt balances will be discharged. This means that your duty to repay qualifying credit card balances, payday loan obligations, and even medical bills will be eliminated forever.

Understanding the Benefits of Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers several distinct advantages over other forms of debt relief. Most importantly, it allows individuals to retain their property while reorganizing their debts. If you have missed mortgage or car payments, chapter 13 enables you to catch up with arrears over time while continuing to pay current payments. This is particularly beneficial for homeowners at risk of foreclosure who need time to recover financially.

Additionally, Chapter 13 bankruptcy can help you deal with certain types of debt that may not be discharged under Chapter 7 bankruptcy. For example, if you owe back taxes or have child support obligations, Chapter 13 offers a structured way to repay these debts over a period of time. A court-approved payment plan also protects you from objections from creditors, as long as the plan complies with legal requirements and you make payments on time.

Another significant benefit is the potential to reduce certain debts through a process called “cramdown”. In some cases, it may be possible to reduce the principal amount owed on certain loans by matching it with the current market value of collateral. This could lead to significant savings, especially for vehicles that have lost a lot of value since they were purchased.

  • Jon is extremely professional but also very caring. My case expanded over two counties. I have been using his services since 2018 to current. I am very pleased with the results from his hard work. He answers phone calls and emails in a timely manner. Thank you Jon for all that you do and thank you for making sure my children are safe.

    Alex

Is Chapter 13 Bankruptcy Right for You?

If you are only struggling with one debt, filing for bankruptcy is probably not the most efficient approach to your situation. However, if your finances could benefit from a pause on collection activity, the discharge of your eligible unsecured debts, and a restructuring of your overall debt to make repayment obligations more manageable, this process may be an excellent fit for your circumstances.

Determining whether Chapter 13 bankruptcy is the right option for you requires a careful analysis of your overall financial situation. You should take into account factors such as your total amount of debt, the types of debt you have, your monthly income and expenses, and your long-term financial goals. Chapter 123may be a good choice for individuals with regular income who want to protect assets such as their home or car and need some time to catch up on past due payments. It’s important to carefully consider all these factors before making a decision about whether Chapter would be the best path for your financial future.

It’s also important to understand that filing for Chapter 13 bankruptcy involves a commitment. You will need to make regular monthly payments to the bankruptcy trustee for three to five years, depending on your income. During this time, you will need to follow a budget approved by the court and avoid taking on new debt without permission from the court. While this may seem challenging, for those committed to financial recovery, it can provide the structure and discipline needed to achieve long-term debt relief.

Learn More About Chapter 7 Bankruptcy

Contact one of our Knowledgeable Lake County, Ohio Bankruptcy Lawyers to Schedule a Free Case Evaluation

You do not need to make a decision about filing for bankruptcy “on the fly,” even if your circumstances are dire and require urgent attention. The team at Axelrod & Hellier Law Office is proud to offer confidential, risk-free consultations at no cost to anyone who is interested in learning more about the bankruptcy process. By investing an hour or so of your time in attending a free case evaluation session, you’ll be empowered to make more informed decisions about your debt relief options.

To speak with one of our trusted Mentor, OH Chapter 13 bankruptcy lawyer at our firm today for free, call (440) 944-7300 or submit a contact form on our firm’s website to schedule a time to discuss your circumstances. We look forward to hearing from you. 

Common Chapter 13 Bankruptcy

What is Chapter 13 bankruptcy and how does it differ from Chapter 7?

Chapter 13 is a court-supervised debt repayment plan, often called “wage earner’s bankruptcy.” Unlike Chapter 7 (liquidation), Chapter 13 allows you to keep all your property while repaying a portion of your debts over 3 to 5 years, after which remaining eligible unsecured debts are discharged.

Who is a good candidate for Chapter 13 bankruptcy?

Chapter 13 is ideal for individuals with a regular income who are behind on mortgage or car payments and want to avoid foreclosure or repossession, or for those whose income is above the Chapter 7 means test limits but who still need significant debt relief.

How does Chapter 13 help me save my home from foreclosure?

Filing a Chapter 13 petition triggers an “automatic stay,” which immediately halts foreclosure proceedings. You can then include your mortgage arrears (past-due payments) in your repayment plan, allowing you to catch up over time while making your ongoing monthly payments.

How is my repayment plan amount and duration determined?

Your plan is based on your income, necessary living expenses, and types of debt. The length (3 or 5 years) is typically determined by comparing your monthly income to the Ohio median income. Our attorneys will calculate a feasible monthly payment tailored to your budget.

What types of debt can be included and managed in a Chapter 13 plan?

A Chapter 13 plan can consolidate and manage virtually all debts: secured debts (like mortgage and car loans), priority debts (like taxes), and general unsecured debts (like credit cards and medical bills). Each category is treated differently under the plan’s structure.

What happens if I can’t make my plan payments due to a job loss or emergency

If you experience a significant financial change, our attorneys can help you file a motion to modify your repayment plan, potentially lowering your payments or extending the term. In some cases, you may be eligible to convert your case to a Chapter 7 bankruptcy.

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