Legal Question in Bankruptcy in Ohio

Keeping certain things when filing Chapter 13

if filing chapter 13, and my home nor auto has eny equity, can i reaffirm with my mortgage company and auto loan company to continue to make my normal payments? how long will a chapter 13 really affect my credit? (i.e. eventual new car loan, schooling, braces for kids)? if i can't get a consolidation loan becuase of my credit being over-extended and/or there is no equity in my home, and i have no other assets, and I barely make it pay check to pay check, is chapter 13 a good solution?


Asked on 12/17/97, 5:24 pm

1 Answer from Attorneys
Jonathan Shimberg SHIMBERG and CROHN

A chapter 13 is appropriate where there is equity

I recommend people file 13s to preserve assets with equity. If you do not have any equity there is nothing to preserve and a 7 is appropriate. In a 7 you can reaffirm on the car and house with no equity as long as you are current in your payments. If you are behind, then a 13 is needed so you can cure your default. Federal law allows the bk to remain on your record for 10 years, I believe, but lenders may treat situations differently. I have had people freely obtain credit within a short period of time if the bk was "for a good reason" such as unanticipated medical bills etc. If it was spending more than you made, then the normal rules will effect you and the bk will limit your ability to get the braces

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Answered on 12/18/97, 6:53 pm


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