Chapter 13 Bankruptcy
What is Chapter 13 Bankruptcy?
Chapter 13 is designed for those behind in their mortgage or vehicle payments. Chapter 13 is also for those who are over the government specified income limits for Chapter 7.
If your income qualifies, you should be current on your home and vehicle payments for a Chapter 7. If you have serious delinquencies, Chapter 13 will allow you to catch up these back payments while protecting your home from being foreclosed upon or your car from being repossessed while the payments are caught up through your chapter 13 plan.
A chapter 13 is a repayment plan where you pay between 1% up to 100% of your unsecured debts depending upon your individual income and budget. We file many low percentage plans. Unsecured debts are those not backed by collateral such as credit card, medical, and signature loan debt.
By Chapter 13 law all interest on your credit card and other unsecured debt stops. These debts therefore do not continue to grow and are often paid back at a small percentage of the total balance.
In some cases, our clients have too much equity in their home or car or other assets. A Chapter 13 is also a payback plan where you keep all your assets.
Chapter 13 will stop a foreclosure on your home or other real estate. Your bank cannot refuse to abide by your chapter 13 plan. They must accept your back payments on your home through the Chapter 13 repayment process. The same applies to your automobile. And we can often get your high interest rate car payment reduced.
The Chapter 13 Trustee in Cincinnati is Margaret Burks and in Dayton is John Jansing. The trustee combines your payments to all your creditors into one lump sum which they disperse to your creditors monthly depending upon the priority we set up in your case. Chapter 13 generally lasts for three to five years.
When your case is complete, your debts are discharged and even though you may have paid as little as 1% towards your unsecured debts. Your mortgage and car payments will be current, and repossessions and foreclosures stopped.
The Chapter 13 Trustee
The Chapter 13 Trustee has administered thousands of Chapter 13 cases. They have a sophisticated office of staff attorneys, paralegals, clerks, and accountants who accurately track your payments and properly disperse your payments to your creditors pursuant to the plan we have confirmed with the court.
Your job is to make your one monthly payment to the trustee who then pays your creditors. In the meantime, the bankruptcy court protects you from your creditors and stops your creditors from garnishing your wages and bank accounts or repossessing your home or car.
Our office has handled many cases where we stopped a foreclosure sale on our clients’ house days or moments before the sheriff’s auction. We have saved countless vehicle from being repossessed protecting our client’s ability to get to work to make the income needed to fund their plan and get back on their feet.
The Amount of time it takes: Chapter 13 versus Chapter 7
A Chapter 7 bankruptcy takes much less time, immediately discharges unsecured debt, and gives you a fresh start in only a few months. However, you must be under certain income guidelines provided by the government and generally be current on your secured debts.
We use the Bankruptcy Code to give our clients the most appropriate legal relief possible from their debts depending upon their circumstances. We have helped thousands of clients over more than 30 years get the best results possible within the confines of the bankruptcy system. It always pays to hire an expert.
Frequently Asked Questions
How does Chapter 13 work?
We Submit a plan to the bankruptcy court which lumps all your debts together and pays them off in certain order of priority and often at less than 100% value. While you’re in your plan the court protects you from any collection action from any of your creditors.
Will I lose my house if I file for Chapter 13 bankruptcy?
No, just the opposite. Chapter 13 was designed by Congress to allow people to keep their house by making up back payments in their case. Our judicial system recognizes the importance of individuals not losing their home to foreclosure.
How long does it take to file a Chapter 13 case?
Depending upon your circumstances, your case can be filed almost immediately if needed. We obviously need to meet with you face to face or over the phone to discuss your current financial situation. We will need to meet with you to gather several documents and your bills allowing us to put your case together. You will need to sign your case as we explain all the details and answer your questions.
What all does Keegan & Co. Attorneys do for me in my Chapter 13 case?
We will thoroughly evaluate your income, debts, and assets and maximize your exemptions. We will prepare your schedules and statements and all court required filing documents. We will pull a credit report so that we are sure to get all your creditors.
Your fee includes this plus two required credit counseling courses. We will meet with you several times to get your case together and explain exactly how it will work in your case. We will be there with you when the 341 meeting is scheduled and discuss this with you beforehand.
We represent you during the entire three to five years you are in the plan. For instance, if you’re laid off from your job, need to replace an old vehicle, or have other change of circumstances, we will petition the court to change your plan and payment to meet your changed circumstances.
Can you discuss further differences between Chapter 7 and Chapter 13?
In bankruptcy debts are classified basically into two groups: unsecured debts (credit cards, medical debts, loans) and secured debts (houses, cars, anything secured by collateral). There are some priority debts, such as taxes, which can be paid off through your chapter 13 case.
In Chapter 13 your unsecured debts are paid off from anywhere between 1% and 100% on the dollar at no interest. in Chapter 7 your unsecured debts are discharged immediately altogether – you do not pay any of these debts back. Student loans and most taxes will likely not be discharged under Chapter 7. Many taxes can be discharged in a Chapter 7 and we will provide you counseling on this.
What are exemptions?
Federal bankruptcy law and the law in Ohio provides you certain exemptions protecting your property. For example, as of 2025 a married couple can protect from the bankruptcy court $322,750 of home equity. A single person can exempt $161,375.00 of home equity. There are similar exemptions for equity in your motor vehicle, tools, household goods, wages, etc. We do everything possible to maximize your exemptions providing you with the best possible outcome and relief from your debts.
How do I get started with Chapter 13 or Chapter 7?
Give our office a call at 513-752-3900 or fill out our brief online questionnaire. We will schedule you a no obligation free in person consultation, or we can discuss your situation over the phone. We will run the calculation advising you whether you are eligible for Chapter 7 or 13.