Joseph Downing Law
(937) 458-3855
104 W. Main Street, Ste B
Tipp City, Ohio 45371
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About the Lawyers

What is Chapter 13 Bankruptcy?

Chapter 13 is a Bankruptcy that allows you to keep your property and repay your debts based on what you can afford. Chapter 13 is a great way to eliminate unsecured debts like credit cards, medical bills, collections, payday loans, personal loans, and taxes. Usually you only repay a portion of the debt and there is no interest. The plan can only last 5 years, so it is not a lifelong commitment either.

What are the Benefits of Chapter 13?

Some other wonderful aspects of Chapter 13 are the following:

  • You can catch up a mortgage or a car loan that is in arrears. This can stop a house from being sold in foreclosure or a car from being repossessed or sold at auction.
  • It is possible to eliminate liens and secondary mortgage against your real estate. If your home value has dropped due the economic downturn, your may be able to eliminate secondary mortgages, home equity loans, or judgment liens.
  • The payment plan is not set in stone. It can change if your income goes down or you lose your job. You can even convert to Chapter 7 if your circumstances change.
  • Chapter 13 will consolidate all your debt into the plan, so you have one simple payment to make each month.
  • Your assets are protected from attachment or liens.
  • In certain cases you only have to pay what your car is worth, not the amount you owe on it.

How Can I Get Started?

Chapter 13 is a program that allows you to obtain a fresh start. Most people are going through very stressful times when they file for Bankruptcy. Our goal is always to help you understand that Bankruptcy does not need to be a scary process. If you are having financial difficulties, please don’t hesitate to contact our office.