Chapter 13 Bankruptcy

Chapter 13 is a less common chapter that consumers file in Ohio, but it can provide invaluable benefits that a chapter 7 cannot. Roughly 25% of all bankruptcy filings in Ohio are chapter 13s. A chapter 13 has a 36-to-60-month plan payment to repay your creditors.

If you are behind on secured debts that you want to keep, are above the median income, or have property settlements from a divorce, Chapter 13 might be right for you.

If you are behind on a car or mortgage payment, a Chapter 13 will allow you to get caught up on the payments and prevent a repossession or foreclosure. The monthly plan payment can include your ongoing monthly car or mortgage payment, along with an amount needed to cover the arrearage.

A chapter 13 can also modify the amount you owe on a car payment or the interest rate. If the loan was taken out long enough ago, we may be able to lower the principal balance down to the market value of the car. If the interest rate is high, we can lower the interest rate to what is called the Till rate. As of August 2026, the Till rate in Ohio is 8.75%. The Ohio bankruptcy attorney will review your situation to see what can be done to help you.

If you are above the median income, and your disposable income is too high for a chapter 7, you likely will need to file a chapter 13. Chapter 13 will still allow you to take care of your debts without fear of repossession, foreclosure, or garnishment.

Unlike a chapter 7, in a chapter 13 a property settlement from a divorce is dischargeable. Support payments like alimony and child support will not be discharged.

In a chapter 13, your creditors will file proof of claims to show how much you owe them. Many other bankruptcy attorneys across Ohio will only review the secured and priority claims. This can cause you to pay significantly more than you need to. The Ohio bankruptcy attorney at Conley law reviews all claims. We have noticed that many bogus claims are being filed, particularly by debt collectors. These bogus claims do not accurately show what debt is owed to the debt collector. The Ohio bankruptcy attorney objects to these claims and requires the debt collector to prove the debt is owed to them and how much the debt is for. We have had great success at getting these claims disallowed, which can reduce the amount you have to repay in the chapter 13.