Introduction

If you’re struggling with overwhelming debt in Ohio, bankruptcy can offer a path to relief — but you’ll need to choose between Chapter 7 and Chapter 13. Each type works differently, with unique benefits and drawbacks. Picking the wrong one could mean losing assets you wanted to keep or committing to a repayment plan you can’t afford. This guide explains the differences so you can make an informed decision.

Chapter 7 Bankruptcy — A Fresh Start

What it is:
Often called “liquidation bankruptcy,” Chapter 7 wipes out most unsecured debts (like credit cards and medical bills) in a matter of months.

Key Features:

• Speed: Typically completed in 4–6 months

• Debt Discharge: Most unsecured debts are eliminated

• Property Risk: Non-exempt assets may be sold to repay creditors

• Eligibility: Must pass the Ohio bankruptcy means test

Best for:

• Low-income individuals with mostly unsecured debt

• Those who can’t realistically repay what they owe

Chapter 13 Bankruptcy — A Structured Repayment Plan

What it is:
Known as “wage earner’s bankruptcy,” Chapter 13 reorganizes your debts into a 3–5 year repayment plan.

Key Features:

• Keep Your Property: Catch up on mortgage or car loan arrears

• Debt Limits (2025): Unsecured debt ≤ $465,275; Secured debt ≤ $1,395,875

• Eligibility: Must have a regular income to make plan payments

• Flexibility: Can reduce certain debts or interest rates through the plan

Best for:

• Homeowners behind on payments who want to avoid foreclosure

• People with valuable assets they want to protect

Side-by-Side Comparison Table

Factors to Consider When Choosing

1. Your Income

   • If your income is too high for Chapter 7, Chapter 13 may be your only option.

2. Type of Debt

   • Chapter 7 works best for unsecured debt; Chapter 13 can address secured debts like mortgages.

3. Asset Value

   • If you have significant equity in your home or valuable property, Chapter 13 may protect it.

4. Urgency

   • Chapter 7 offers faster relief; Chapter 13 provides long-term structure.

FAQs: Choosing Between Chapter 7 and 13 in Ohio

Q: Can I choose which chapter to file?
Sometimes, yes — but eligibility rules may limit your choice.

Q: Can I switch from Chapter 13 to Chapter 7?
Yes, in some cases, but it may have consequences for your assets and debts.

Q: Which one hurts my credit less?
Both impact credit, but Chapter 13 drops off your report sooner.

Conclusion & Call to Action

Choosing between Chapter 7 and Chapter 13 is one of the most important decisions you’ll make in the bankruptcy process. Each has its pros and cons, and the right choice depends on your income, assets, and long-term goals.

For clear guidance, contact Christopher Gallutia, Attorney at Law. With over 36 years of experience in Ohio bankruptcy law, he can help you choose the option that best protects your future.

📞 Call (614) 575-1145 or Schedule a Consultation today.