How to File Chapter 13 Bankruptcy in Ohio

If you want to know how to file Chapter 13 bankruptcy in Ohio, the process starts well before you submit your bankruptcy petition. You must determine whether you meet the eligibility requirements, complete required credit counseling, gather detailed financial information, prepare a repayment plan, and file the necessary documents with the appropriate federal bankruptcy court.

Chapter 13 bankruptcy allows individuals with regular income to repay some or all of their debts through a court-approved plan while generally retaining their property. Plans usually last three to five years, depending on the debtor’s income and the applicable requirements of the Bankruptcy Code.

At Upward Law, LLC, we help Ohio residents understand the Chapter 13 process and prepare for the requirements that come with filing. Whether you are behind on your mortgage, facing wage garnishment, struggling with unsecured debt, or trying to protect property, we can help you understand whether Chapter 13 may be an appropriate option.

How to File Chapter 13 Bankruptcy in Ohio: Step by Step

Chapter 13 cases are filed in the federal bankruptcy court serving your area. Ohio has two federal bankruptcy districts: the Northern District of Ohio and the Southern District of Ohio.

The correct filing location depends on where you live or maintain your domicile. Before filing, we help determine which court has jurisdiction over your case and what local requirements may apply.

Step 1: Determine Whether You Qualify for Chapter 13

Chapter 13 is generally available to an individual with a regular income who has debts below the statutory limits. The Bankruptcy Code imposes separate limits on qualifying unsecured and secured debts, and those limits can change over time. Other eligibility restrictions can also apply, including restrictions related to certain recently dismissed bankruptcy cases.

Your income also matters because it can affect the length and payment requirements of your Chapter 13 plan.

Step 2: Complete Credit Counseling

Before filing, most individual debtors must complete a credit counseling briefing from an approved provider within the 180-day period before filing. There are limited exceptions, including certain emergency circumstances.

The provider gives you a certificate after completing the counseling requirement. That certificate generally needs to be included with your bankruptcy filing.

Step 3: Gather Your Financial Information

A Chapter 13 filing requires detailed information about your financial situation. This includes your income, expenses, assets, debts, and other financial obligations.

You may need documents such as:

• Pay statements
• Tax returns or transcripts
• Bank statements
• Mortgage statements
• Vehicle loan information
• Credit card statements
• Medical bills
• Personal loan records
• Property records
• Retirement account information

You must provide complete and accurate information. Omitting assets or debts can create serious problems for your bankruptcy case.

Step 4: Determine Your Chapter 13 Plan Payment

Your Chapter 13 plan explains how you will make payments and how those payments will be distributed among your creditors.

The amount required depends on several factors, including your income, allowable expenses, debts, assets, and the treatment required for different categories of debt. In appropriate cases, the plan must provide at least as much to unsecured creditors as they would receive if your non-exempt assets were liquidated under Chapter 7.

Your income can also affect the required plan duration. A plan generally lasts three years for debtors whose current monthly income is below the applicable state median, while debtors above the median generally have a five-year applicable commitment period, subject to statutory rules.

Step 5: File Your Bankruptcy Petition and Plan

Your Chapter 13 case officially begins when the bankruptcy petition is filed with the appropriate federal bankruptcy court.

The filing generally includes your schedules of assets and liabilities, income and expenses, statement of financial affairs, and proposed Chapter 13 plan. Federal law also requires additional financial information and documentation in connection with the filing.

You will also need to pay the applicable bankruptcy filing fee, although payment in installments may be available in qualifying circumstances.

Step 6: Take Advantage of the Automatic Stay

The automatic stay generally takes effect when your bankruptcy case is filed.

The stay can stop many collection actions, including certain lawsuits, wage garnishments, collection calls, and foreclosure or repossession activity. However, the automatic stay has exceptions, and special rules can apply if you have had a previous bankruptcy case.

Step 7: Begin Making Chapter 13 Plan Payments

One important point that many people do not realize is that you generally cannot wait until your plan is confirmed before making payments.

Under federal law, Chapter 13 plan payments generally must begin within 30 days after the case is filed, even if the court has not yet confirmed the plan.

Depending on the circumstances, certain payments on secured debts or leases may also need to be made directly to the creditor while the plan is pending.

Step 8: Attend the 341 Meeting of Creditors

Several weeks after filing, you will generally attend a 341 meeting of creditors.

The Chapter 13 trustee reviews your bankruptcy filing and asks questions about your financial information. Creditors have the right to attend and ask questions, although they do not always appear.

This is not a traditional trial before a judge.

Step 9: Address Objections and Obtain Plan Confirmation

After reviewing your proposed plan, the trustee or a creditor may object to some part of it.

For example, there could be a disagreement about your income, expenses, treatment of a particular debt, valuation of property, or whether the proposed payment is sufficient.

The bankruptcy judge ultimately determines whether the plan satisfies the requirements for confirmation. Federal law requires, among other things, that the plan be feasible and satisfy the applicable confirmation requirements.

Step 10: Make Your Plan Payments for Three to Five Years

Once your Chapter 13 plan is confirmed, you generally continue making the required payments for the duration of the plan.

The trustee distributes payments to creditors according to the terms of the confirmed plan.

Your circumstances can change during this period. You may lose income, experience an unexpected expense, or encounter another financial problem that makes your original plan difficult to maintain.

Step 11: Complete the Financial Management Course

After filing, you must generally complete an approved financial-management course before receiving a Chapter 13 discharge. The course is separate from the credit counseling requirement that must be completed before filing.

The timing is important because failing to complete the requirement can prevent you from receiving a discharge even after making your required plan payments.

Step 12: Complete the Plan and Receive Your Discharge

A Chapter 13 case generally concludes after you complete the required plan payments and satisfy the other applicable requirements.

The court may then issue a discharge of qualifying debts covered by the bankruptcy. A discharge generally eliminates your personal liability for qualifying debts, although certain debts are not dischargeable, and valid liens may continue to exist against property.

What Happens to Your Debts in Chapter 13?

Chapter 13 does not necessarily mean that you will repay every debt in full.

Different types of debt receive different treatment under the Bankruptcy Code.

Priority Debts

Certain priority debts generally must be paid in full through the plan unless the Bankruptcy Code provides otherwise. Examples can include certain tax obligations and domestic support obligations.

Secured Debts

Secured debts are tied to property, such as a mortgage or vehicle loan. Chapter 13 can provide a mechanism for addressing certain arrears while allowing you to retain the property, subject to the requirements of the Bankruptcy Code.

Unsecured Debts

Credit cards, medical bills, and certain personal loans are common examples of unsecured debt.

Depending on your circumstances, unsecured creditors may receive only a portion of what they are owed through the plan. The amount depends on the applicable Chapter 13 requirements and the circumstances of your case.

What If You Miss a Chapter 13 Payment?

Chapter 13 requires you to make your plan payments consistently.

If you miss payments, the trustee or a creditor may take action that could ultimately result in dismissal of your case. If your financial circumstances have changed, do not simply stop making payments without first discussing the situation with your attorney.

Depending on the circumstances, you may be able to modify your plan or pursue another available option.

Can Chapter 13 Stop Foreclosure or Repossession in Ohio?

Filing Chapter 13 generally triggers the automatic stay, which can stop many collection actions, including certain foreclosure and repossession activity. Chapter 13 can also provide a mechanism for curing qualifying defaults on secured debts through a repayment plan.

However, the automatic stay is not unlimited, and bankruptcy does not automatically eliminate a creditor’s lien or permanently prevent foreclosure or repossession.

If you are behind on your mortgage or vehicle payments, timing can matter.

How Long Does Chapter 13 Take in Ohio?

A Chapter 13 plan generally lasts three to five years.

The applicable plan period depends in part on your current monthly income compared with the applicable state median. Debtors whose income is below the applicable median generally have a three-year applicable commitment period, while those above the median generally have a five-year period, subject to statutory exceptions and requirements.

The early stages of the case happen much faster. You complete credit counseling before filing, attend the 341 meeting after filing, and proceed toward plan confirmation while making required payments.

The exact timing can vary depending on your case, the court, the trustee, and whether creditors or the trustee object to your proposed plan.

Why Work With Upward Law, LLC?

Chapter 13 is a court-supervised legal process. You are not simply submitting a payment plan to your creditors. Your income, assets, debts, expenses, and repayment proposal must all be presented accurately and satisfy federal bankruptcy requirements.

At Upward Law, LLC, we help Ohio residents understand those requirements and make informed decisions about bankruptcy.

We focus on making the process understandable rather than leaving you to navigate complicated bankruptcy paperwork on your own. We can review your financial circumstances, explain the differences among your available options, prepare the necessary documents, and help you respond to issues that arise during your case.

If Chapter 13 is appropriate for your circumstances, we can help you work through the filing and repayment process. If another option makes more sense, we explain that as well.

Talk With an Ohio Chapter 13 Bankruptcy Attorney

If you are considering Chapter 13 bankruptcy, getting advice before filing can help you understand your options and avoid preventable problems.

At Upward Law, LLC, we offer Ohio residents a free 30-minute consultation to discuss their financial circumstances and bankruptcy options.

We can help you understand whether Chapter 13 may be appropriate, what your repayment plan could involve, and what steps you need to take before filing.

Schedule Your Free Consultation