Can I file Bankruptcy on credit card debt in Columbus, Ohio?

As a bankruptcy attorney in Worthington, Ohio, I frequently meet with clients overwhelmed by credit card debt and seeking to understand their options to eliminate debt. One powerful option to eliminate high-interest balances and obtain a “fresh start” is by filing for bankruptcy. I help clients navigate Ohio’s complex bankruptcy laws and regain control of a situation that may seem insurmountable.

A client with credit card debt can file for either Chapter 7 or Chapter 13 bankruptcy. As a bankruptcy attorney, I help clients figure out whether Chapter 7 or Chapter 13 bankruptcy is most appropriate for one’s situation. Chapter 7 bankruptcy is also known as “liquidation bankruptcy” and is a full discharge of most debts. To file for Chapter 7 bankruptcy, one must meet certain thresholds. The benefit of filing for Chapter 7 bankruptcy is that one may discharge high-interest credit card debt; while also protecting certain assets such as one’s home. Part of my work as a bankruptcy attorney is working with clients to understand with property qualifies for Ohio’s exemption laws.

Chapter 13 bankruptcy, on the other hand, entails the creation of a three to five-year repayment plan that is based on one’s income and budget. Chapter 13 bankruptcy may be a better option if one has a regular stream of income yet is struggling to make payments on credit card debt. For Chapter 13 cases, my work involves developing a repayment plan that that will be workable for the client. At the end of the repayment plan term, the remaining debt balance may potentially be discharged. This approach can help clients find a manageable way to repay debt without the pressure and constant phone calls from debt collectors.

In my experience, credit card debt can spiral from life’s unexpected situations, such as a job loss, serious medical issue, or trying to meet the costs of rising inflation. Bankruptcy is a legal tool designed to help individuals and provide financial relief in such situations. I am here to support clients every step of the way.

Filing for bankruptcy can provide clients with immediate stress relief. In the case of Chapter 7 bankruptcy, an automatic stay will be put into place which will stop creditors from pursuing wage garnishment or filling lawsuits against the debtor. Chapter 7 bankruptcy also provides quick resolution as these cases typically conclude in three to six months. Chapter 13 bankruptcy can also provide long-term relief, such as protection of assets like a home or vehicle. Chapter 13 bankruptcy can also provide relief for a broader range of debts when compared to Chapter 7 bankruptcy.

While filing for bankruptcy may impact one’s credit score for up to ten years, it may ultimately lead to better financial management skills. Facing credit card debt can be an incredibly stressful situation, but I am here to help support clients in their journey to overcoming crushing debt. My goal is to provide clients with clear, calm guidance during what may be an overwhelming situation, so that they may achieve financial recovery.