
Dealing with outstanding debt that you can’t pay off is an extremely stressful situation. Financial stress comes in many forms, often leading to spousal disagreements and sleepless nights spent worrying about finances. However, one of the most pervasive sources of debt-related stress is the constant harassment by creditors. Creditors may call, send mail, or even show up at your home in an effort to get you to pay off bills you simply don’t have the money for. One practical solution is filing for Chapter 13 bankruptcy and taking advantage of the automatic stay. Understanding the automatic stay in Ohio bankruptcy cases is an essential first step in finding relief from both creditors and overwhelming debt.
Understanding the Automatic Stay in Ohio Bankruptcy
The Chapter 13 automatic stay is one of the most significant short-term benefits of filing for bankruptcy. It’s also the benefit you’re most likely to immediately enjoy. Filing for Chapter 13 bankruptcy allows you to eventually regain control of your finances. However, this is a lengthy process, typically involving a three- to five-year repayment plan.
An automatic stay is a court order that makes your creditors immediately stop harassing you about your unpaid bills.
It won’t take you years to see the benefits of Chapter 13 bankruptcy. Once your filing process is complete, you’ll be given a manageable repayment plan based on your current income level. However, it does take time to go through the process of filing and getting started with your repayment plan.
What doesn’t take time is the automatic stay. A stay is a court order that stops collection efforts. In the context of bankruptcy, a stay stops your creditors from harassing you or otherwise contacting you about your outstanding debt. As the name implies, this stay is automatic, meaning it goes into effect as soon as you file.
What to Expect After Filing Chapter 13 Bankruptcy
Filing for xChapter 13 bankruptcy is a complex process. It’s recommended that you always work with an experienced Chapter 13 bankruptcy lawyer who specializes in bankruptcy. Your bankruptcy attorney will walk you through the process of filing and make sure you understand all requirements.
Throughout the bankruptcy process, it’s extremely important that you meet all deadlines and send all required documents to the court on time. Your bankruptcy attorney helps ensure that you don’t miss any obligations. Missing a deadline or failing to submit required documentation can result in your bankruptcy case being dismissed by the court without a resolution. During the bankruptcy process, you’ll be required to submit proof of all forms of income, both from employment and from other sources. This process also takes into consideration your expenses and financial obligations. The ultimate goal is to arrive at a repayment plan that is realistic given your debt, income level, dependents, and other factors unique to your circumstances.
Need help managing your debt in Ohio? Call Fesenmyer Law Offices, LLC at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to speak with our bankruptcy lawyers.
The Chapter 13 Repayment Plan and Creditors
If you don’t know much about the bankruptcy process, you might not be well-versed in the terms of Chapter 13 and how it differs from other forms of bankruptcy. Chapter 13 doesn’t entail immediate debt discharge. Instead, it allows you to roll certain types of debt, such as credit card debt and medical debt, into a manageable repayment plan.
You’ll be put on a payment plan that lasts for three to five years. If you make all your payments on time during that period, the remaining eligible debt is discharged. Chapter 13 also takes into account your auto loan and mortgage so that you get back on track with those payments and can continue paying them off after the bankruptcy process is complete.
When you file for Chapter 13 bankruptcy, you’re subject to the median income test. This is performed on a state-by-state basis. For an Ohio bankruptcy, your income for the past six months will be compared to the Ohio median income. This helps determine how much of your debt you have to pay back under a Chapter 13 and how long your repayment plan will last.
Once your debt is discharged, you should be left with manageable payments on assets you’ve chosen to retain ownership of, such as your home and vehicle. You will be on your way to financial independence, as long as you are careful about managing your finances going forward.
Schedule a Consultation with Our Ohio Bankruptcy Lawyers
Fesenmyer Law Offices, LLC is a leading Ohio bankruptcy law firm. Our skilled Ohio bankruptcy attorneys help clients find a path forward in the face of many different types of debt. We serve clients throughout the state of Ohio, with offices located in Columbus, Cincinnati, and Dayton. We are available to review your current financial situation and advise you on whether Chapter 13 bankruptcy is right for you. If it is, we can assist you with the entire process from start to finish. We know how stressful it can be to deal with overwhelming debt and creditors who don’t stop harassing you. We’re ready to help you regain control over your finances starting today.
Call Fesenmyer Law Offices, LLC at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to schedule a consultation with our experienced Ohio bankruptcy attorneys.