A Chapter 13 bankruptcy is a structured repayment plan. It is often a good choice for those with a steady income stream, because it is designed to help you pay off your debts over a three to five year period without losing your house or your possessions.

If you file for Chapter 13 and your plan is accepted, you will make payments to a trustee who will distribute those payments to your creditors. Any collection efforts will be “automatically stayed” and your creditors will not be allowed to contact you directly during this time.

Due to the “automatic stay” imposed on creditors once a bankruptcy proceeding has been filed, filing for a Chapter 13 bankruptcy may help you stop foreclosure. The “automatic stay” means creditors are unable to continue foreclosure proceedings until the bankruptcy protections have been lifted.

While the automatic stay may not be permanent, it can grant you valuable time to catch up on any past-due payments. It is important to note, however, that if you wish to keep your house, you will need to pay all mortgage payments in full and on time while under Chapter 13 protection.

There are numerous documents you must compile prior to filing for bankruptcy. If you live in Ohio or Kentucky, our bankruptcy attorneys can help you file for Chapter 13 Bankruptcy. For more information or to learn if Chapter 13 Bankruptcy is right for you, contact Kathleen Mezher & Associates, LLC.