Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free
888-542-1300

Late claims can bar creditors from repayment plans

For people who are facing severe financial challenges, including the possibilities of foreclosure or auto repossession, filing for bankruptcy may offer relief. It can also come with unexpected surprises, as one Ohio couple learned. The couple filed for Chapter 13, and notice was sent to all creditors. A late filing attempt left one secured creditor out of the repayment plan.

The creditor had a debt owed by the couple secured by a lien on their home. Unlike with unsecured debt, creditors are not required to file a proof of claim on secured debts to prevent them being discharged. However, they are required to file by a deadline to be included in repayment plans.

The judge in the case gave the couple the option to voluntarily include the debt in their plan. They chose to leave it out. The debt in the form of a property lien remains and must be repaid, but the couple's home is protected from creditors by the court until conclusion of the case. Depending on the length of the Chapter 13 bankruptcy plan, this could mean the debt will sit for up to five years before the creditor can take action.

Debt relief by the courts offers a significant safeguard for Ohio residents against financial ruin. For instance, Chapter 13 can protect a debtor's home, business assets, automobile or even furniture from creditors. However, attaining a fresh financial start under Chapter 13 requires establishing repayment plans and keeping current with them. It may be beneficial for those considering this route to speak with an attorney and learn about what the eligibility requirements are.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions