For those struggling to manage overwhelming debts, bankruptcy provides a structured legal process to help you recover. However, if you’re like the majority of Ohio filers, you may be wondering how long the bankruptcy process will actually take. Unfortunately, there is no concrete answer, as the process depends on the type of bankruptcy you file, the complexity of your circumstances, and whether or not any delays occur. In general, however, most filers may be able to complete a Chapter 7 filing in as little as four months, while Chapter 13 can take between three and five years to complete. As such, the following blog explores the reality of filing for bankruptcy, including how long this process can take, so you can understand what to expect and the importance of working with Franklin County bankruptcy lawyers to help you through this matter.
Understanding Ohio Bankruptcy Timelines
Bankruptcy cases filed in Ohio are generally handled through the United States Bankruptcy Court for the Southern District of Ohio or the Northern District of Ohio, depending on where you live. In general, those in Franklin and Columbus Counties will proceed through the Southern District Court.
The timeline for bankruptcy will primarily depend on the type of bankruptcy you file. Chapter 7, for example, can be resolved within months, while Chapter 13 revolves around a longer, court-supervised repayment plan. As such, understanding these differences can reduce uncertainty and assist you in determining the best possible option for your circumstances.
Typical Chapter 7 Bankruptcy Timeline in Ohio
If you are interested in pursuing Chapter 7 bankruptcy, this process will generally take around six months to complete. This is one of the most straightforward bankruptcy options, as it requires the liquidation of your assets to repay outstanding debts.
While this is generally the most common option, it’s important to understand that there is an eligibility requirement. In order to file Chapter 7, you must pass what’s known as the means test.
This essentially compares your average annual income to those of others of similar size in Ohio, and if you make below the average income, you’ll be eligible. If your income is too high, you may be required to pursue Chapter 13.
Once bankruptcy is filed, a legal protection known as the automatic stay will take effect. Essentially, this temporarily halts all collection efforts, including phone calls, wage garnishments, and lawsuits. This protection is a primary reason many choose to file, as it can provide relief and breathing room to catch up on payments.
Chapter 7 Timeline
- Most cases take four to six months from filing to discharge
- A means test determines eligibility based on income
- A bankruptcy trustee will be assigned to your case to review assets and debts
- A 341 meeting of creditors typically takes place 20 to 40 days after filing
- Most unsecured debts are eligible for discharge
- Some property may be seized and sold if it exceeds the Ohio exemption limitations
Typical Chapter 13 Bankruptcy Timeline in Ohio
Chapter 13 bankruptcy is an option for those who earn too much to file Chapter 7 or are interested in protecting certain assets, as this is a repayment-based chapter.
Essentially, all your debts will be consolidated, which you will then pay in a monthly installment to the trustee assigned to your case. The trustee will then be responsible for distributing the payments to your creditors.
This process will last three or five years, based on the circumstances of your case. Generally, your income and debts will be taken into account to determine how long your repayment plan will last.
Chapter 13 Bankruptcy Timeline
- Chapter 13 cases generally last three to five years
- Debts are reorganized into a payment plan approved by the court
- Payments are made on a monthly basis to the bankruptcy trustee
- Payments are distributed to creditors
- You may keep assets like a home or a vehicle
- Eligible debts may be discharged upon the completion of your case
Steps to Take Before Filing for Bankruptcy in Ohio
If you are ready to file for bankruptcy, it’s imperative to understand the steps you can take to navigate this process with ease. Generally, one of the most important things you should do before you declare is to gather the necessary documents you’ll need to file. Being organized and prepared can help avoid delays and ensure this process is as efficient as possible.
Gather the Necessary Documents
Prior to filing, you’ll need to compile detailed financial information for the court. This includes:
- The two most recent federal tax returns
- Proof of income
- List of all assets and debts
- Bank account statements
- Information about loans
- Mortgage and car loan documents
- Monthly household expenses
Complete Required Credit Counseling Course
Next, you’ll need to ensure you complete the required consumer credit counseling courses.
These are mandatory classes that all filers must complete to be eligible to file for bankruptcy. Essentially, this is a required meeting in which you will discuss your finances with a credit counselor who can help you explore alternative debt relief options to help you avoid bankruptcy.
However, you should note that just because you may have an alternate plan does not mean you are required to follow it. These courses must be completed within 180 days of filing for bankruptcy.
Contact an Experienced Ohio Bankruptcy Attorney Today
As you can see, bankruptcy can be an overwhelming process with a number of incredibly important considerations to make. If you are ready to pursue this process, it’s imperative to understand that working with an experienced attorney is in your best interest. At Cousino & Weinzimmer LLC, our firm is ready to guide you through this process from the moment you file to when your final debt has been discharged. Contact us today to learn how we can represent you.
