Columbus Chapter 13 Bankruptcy Lawyers

Though most of us don’t imagine ever incurring the type of financial struggle that would necessitate bankruptcy, the fact is that thousands of individuals in Ohio alone file for bankruptcy each year. For some people, particularly those who are struggling with debt but are not yet completely underwater, Chapter 13 can provide them with the lifeline they need to restructure their debt and better position themselves for the future. If you believe you may qualify for Chapter 13 bankruptcy, please don’t hesitate to contact the Franklin County bankruptcy lawyers here at Cousino & Weinzimmer LLC today.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often referred to as a “wage earner’s plan,” is a legal option that allows individuals with a regular income to reorganize their debt into a manageable repayment plan.

Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off creditors, Chapter 13 enables debtors to retain their property while making structured payments over three to five years. This form of bankruptcy is particularly beneficial for individuals who have fallen behind on mortgage or car payments but wish to keep their assets and regain financial stability over time. By consolidating debt into a court-approved repayment plan, Chapter 13 provides a structured path to financial recovery while stopping foreclosure, repossession, and creditor harassment.

Who Qualifies for Chapter 13 Bankruptcy in Ohio?

To qualify for Chapter 13 bankruptcy in Ohio, individuals must meet several key criteria. First, they must have a regular source of income sufficient to support a structured repayment plan. This income can come from employment, self-employment, rental properties, Social Security benefits, or other sources. Second, there are debt limits. The debt limitations set for cases filed between April 1, 2025, and March 31, 2028, are $1,580,125 of secured debt and $526,700 of unsecured debt. (11 U.S.C. § 109(e) – current amounts are published in the Federal Register and can be found on the U.S. Courts Chapter 13 Bankruptcy Basics webpage).

Additionally, individuals may not be able to file under Chapter 13 if they had a prior bankruptcy petition dismissed in the last 180 days due to failure to comply with court orders. Finally, before filing, applicants must complete a credit counseling course through an approved agency. If you are unsure whether you qualify, our attorneys at Cousino & Weinzimmer LLC can assess your financial situation and guide you through the process.

How Are Repayment Plans Determined?

Chapter 13 repayment plans are tailored to each filer’s financial situation and must be approved by the bankruptcy court. The calculation of these plans is based on multiple factors, including the filer’s disposable income, the total amount of debt, and the type of debt involved. Disposable income is determined by subtracting necessary living expenses from the debtor’s monthly income.

Priority debts, such as certain taxes, child support, and alimony, must be paid in full through the plan. Secured debts, like mortgages or car loans, may be adjusted to bring past-due amounts current. Unsecured debts, such as credit card balances, medical bills, and personal loans, are typically repaid at a reduced percentage based on what the debtor can afford. Most repayment plans span three to five years, and as long as the debtor makes timely payments, they can keep their assets while working toward financial stability.

What Can’t I Discharge Via Chapter 13 Bankruptcy?

While Chapter 13 bankruptcy can help individuals manage and reduce a significant portion of their debt, not all debts are dischargeable. Certain obligations must still be paid in full or according to the terms of the repayment plan. Non-dischargeable debts include:

• Child support and alimony obligations
• Most student loans (except in cases of extreme hardship)
• Recent tax debts, particularly those owed to federal or state tax agencies
• Court-ordered restitution and criminal fines
• Debts arising from fraud, embezzlement, or willful misconduct

Even though these debts cannot be eliminated, Chapter 13 provides an avenue to structure their repayment in a way that aligns with the debtor’s financial circumstances. Our Chapter 13 bankruptcy lawyers can help clarify which debts will remain and which can be reduced through the process.

What is the Chapter 13 Bankruptcy Process Like in Ohio?

The Chapter 13 bankruptcy process in Ohio involves several steps. These steps are as follows:

1. Credit Counseling: Before filing, debtors are required to complete a credit counseling session with a government-approved agency. This session helps determine if Chapter 13 is the best option or if alternative solutions might be available. The debtor receives a certificate of completion, which must be included in the bankruptcy filing.
2. Filing the Petition: The bankruptcy process officially begins when the debtor files a petition with the bankruptcy court. This filing includes schedules detailing the debtor’s assets, liabilities, income, and expenses, as well as a statement of financial affairs. A filing fee is required, but in some cases, it can be paid in installments.
3. Automatic Stay: Once the petition is filed, an automatic stay goes into effect. This legally prevents creditors from continuing collection efforts, such as wage garnishments, lawsuits, foreclosure proceedings, and harassing phone calls. This stay remains in place throughout the bankruptcy process unless lifted by the court.
4. Submission of the Repayment Plan: A central aspect of Chapter 13 bankruptcy is the repayment plan, which outlines how the debtor will repay creditors over three to five years. The plan must propose regular payments to the bankruptcy trustee, who distributes funds to creditors. The plan prioritizes secured debts (e.g., mortgages, car loans) and certain priority debts (e.g., taxes, child support), while unsecured debts (e.g., credit cards, medical bills) may receive partial repayment.
5. 341 Meeting of Creditors: About a month after filing, the debtor must attend a 341 Meeting of Creditors, overseen by the bankruptcy trustee. Creditors can ask questions about the debtor’s finances and repayment plan. While attendance is mandatory, creditors rarely show up. The trustee ensures the plan is feasible and follows bankruptcy rules.
6. Plan Confirmation: The debtor will begin making payments 30 days after the repayment plan is filed. The bankruptcy court will then hold a confirmation hearing to approve, modify, or reject the plan. If the court approves it, the debtor continues making payments according to the confirmed schedule, typically via payroll deductions.
7. Making Payments and Staying Compliant: The debtor must make consistent, on-time payments to remain in compliance. Missing payments can result in dismissal of the case or conversion to a Chapter 7 bankruptcy. The debtor must also complete a financial management course before receiving a discharge.
8. Completion of Payments and Discharge: If the debtor successfully completes all payments under the plan–cars are paid in full, mortgages are deemed current, priority tax debt is paid in full, etc.–any remaining eligible unsecured debts are discharged, meaning they are legally eliminated. Certain debts, such as student loans and some taxes, are not dischargeable. Completing Chapter 13 allows the debtor to regain financial stability, rebuild credit, and move forward with a fresh financial start.

Each case is unique, which is why it’s so important that you speak with a team of bankruptcy lawyers who can assess the circumstances of your case, and, from there, forge the best path forward.

Contact Our Columbus Bankruptcy Lawyers

Here at Cousino & Weinzimmer LLC, we understand just how difficult it can be–for both you and your family–to face an overwhelming amount of debt. Fortunately, you have options, and our Chapter 13 bankruptcy lawyers are here to help you explore them. Contact Cousino & Weinzimmer LLC today to schedule a free case evaluation with our knowledgeable, compassionate bankruptcy law firm.