Bankruptcy

Bankruptcy Legal Services in Columbus, OH

When it comes to dealing with skyrocketing debt, we understand how frustrated and anxious you must feel. At Zellar & Zellar, Attorneys at Law, Inc., we can help you get control of your debt by helping you file for bankruptcy. While this may not seem like an ideal solution, sometimes it’s the only way our clients can get a foothold on their finances and move forward with their lives. Whether you’re considering bankruptcy due to unexpected medical costs, tax issues, a decrease in income or a divorce, you’ll find advocates in our team. We’ll give you expert counsel based on your unique circumstances, take care of paperwork filing and ensure you get the best possible outcome. 


Don’t let your debt weigh you down a moment longer. Contact the legal professionals at Zellar & Zellar today.

Comprehensive Debt Relief Solutions

While deciding to declare bankruptcy should not be taken lightly, the truth is many Americans use this legal recourse to eliminate debt that has stifled their ability to live. A wide range of people filing for bankruptcy do so because they have little to no health coverage and their medical costs have skyrocketed, in fact uninsured medical debt is one of the most common reasons for people in Ohio to file for bankruptcy protection and discharge. A job loss or failed business can also cripple your ability to make your payments or pay off debt. Even a divorce can have a huge impact on your monthly expenses and ability to make payments on time. At Zellar & Zellar, Attorneys at Law, Inc., we understand your concerns and we’re happy to provide you with compassionate legal counsel that best suits your specific needs. We’ve built relationships with countless clients throughout Ohio and we want to ensure you feel heard, respected, and cared for. We offer a wide range of debt relief solutions that include:

  • Chapter 7 Liquidation
  • Chapter 13 Reorganization
  • Chapter 12 Farmers 
  • Consumer & Small Business
  • Creditor Representation 
  • & Much More

Chapter 7 Bankruptcy Vs. Chapter 13 Bankruptcy

If you’re considering bankruptcy to clear your debt, you should know what options may best suit your needs. Chapter 7 and Chapter 13 bankruptcies are the most commonly used but they do have significant differences. 


Chapter 7 bankruptcy can clear most of your general unsecured debts such as medical bills and credit card debt without the need to pay back balances through a repayment plan. This can also stop most creditors from pursuing collection efforts, however this bankruptcy will have a significant impact on your credit report for up to seven years and may require you to sell off property to pay off the debt. 


Chapter 7 bankruptcy is suited for low-income debtors with little or no assets or have discharged debt that exceeds the value of any property sold to pay off the debt.

Chapter 13 bankruptcy reorganizes your debt and is suited to debtors who maintain a monthly income and can make payments each month towards the debt they owe. The benefit of Chapter 13 is it’s more commonly available to people who don’t meet the low-income requirements of a chapter 7 bankruptcy and can allow you to retain the property you own while you make scheduled repayments. Part of the debt is sometimes forgiven as well, depending on your income and other factors. 


Whether you’re looking to get up to date on a car payment or you need comprehensive debt relief to rebuild your life, we can advise the best course of action and ensure the process is hassle-free.

Bankruptcy Chapter 13 Q&A

  • What is a chapter 13 bankruptcy case and how does it work?

    A chapter 13 bankruptcy case is a proceeding under federal law in which the debtor seeks relief under chapte 13 of the Bankruptcy Code. Chapter 13 is the chapter of the Bankruptcy Code which allows a person to repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. The Bankruptcy Code is


    the federal law that deals with bankruptcy. A person who files a chapter 13 case is called a debtor. In a chapter 13 case, the debtor must submit to the court a plan for the repayment of all or a portion of his or her debts. The plan


    must be approved by the court to become effective. If the court approves the debtor’s plan, most creditors will be prohibited from collecting their claims from the debtor. The debtor must make regular payments to a person called


    the chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan. Upon completion of the payments called for in the plan, the debtor is released from liability for the remainder of his or her dischargeable debts.

  • How does a chapter 13 case differ from a chapter 7 case?

    The basic difference between a chapter 7 case and a chapter 13 case is that in a chapter 7 case the debtor’s nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor’s debts, while in chapter 13 cases a portion of the debtor’s future income is used to pay as much of the debtor’s debts as is feasible under


    the debtor’s circumstances. As a practical matter, in a chapter 7 case the debtor loses all or most of his or her nonexempt property and receives a chapter 7 discharge, which releases the debtor from liability for most debts.


    In a chapter 13 case, the debtor usually retains his or her nonexempt property, but must pay off as much of his or her debts as the court deems feasible and receives a chapter 13 discharge, which is slightly broader than a chapter 7 discharge and releases the debtor from liability for a few types of debts that are not dischargeable under chapter


    7. However, a chapter 13 case normally lasts much longer than a chapter 7 case and is usually more expensive for the debtor.

  • When is a chapter 13 case preferable to a chapter 7 case?

    Chapter 13 is usually preferable for a person who - (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, (3) is not eligible under means testing to maintain a chapter 7 case, (4) is not eligible for a chapter 7 discharge, (5) has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or (6) has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.

  • How does a chapter 13 case differ from a private debt consolidation service?

    In a chapter 13 case, the bankruptcy court can provide relief to the debtor that a private debt consolidation service cannot provide. For example, the court has the authority to prohibit creditors from attaching or foreclosing on the debtor’s property, to force unsecured creditors to accept a chapter 13 plan that pays only a portion of their claims, and to discharge a debtor from unpaid portions of debts. Private debt consolidation services have none of these powers.

  • What is a chapter 13 discharge?

    It is a court order releasing a debtor from all of his or her dischargeable debts and ordering creditors not to collect them from the debtor. A debt that is discharged is one that the debtor is released from and does not have to pay. There are two types of chapter 13 discharges: (1) a full or successful plan discharge, which is granted to a debtor who completes all payments called for in the plan, and (2) a partial or unsuccessful plan discharge, which is granted to a debtor who is unable to complete the payments called for in the plan due to circumstances for which the debtor should not be held accountable. A full chapter 13 discharge discharges a few more debts than a chapter 7 discharge, while a partial chapter 13 discharge is similar to a chapter 7 discharge.

What types of debts are not dischargeable in chapter 13 cases?

A full chapter 13 discharge granted upon the completion of all payments required in the plan discharges a debtor from all debts except:


(1) debts that were paid outside of the plan and not covered in the plan,


(2) debts for domestic support obligations, which includes debts for child support and alimony,


(3) debts for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel or aircraft while intoxicated,


(4) most tax debts,


(5) debts for restitution or criminal fines included in a sentence imposed on the debtor for conviction of a crime,


(6) debts for fraud, embezzlement or larceny,


(7) debts for student loans or educational obligations unless a court rules that not discharging the debt would impose an undue hardship on the debtor and his or her dependents,


(8) debts for damages caused by willful or malicious conduct by the debtor,


(9) installment debts whose last payment is due after the completion of the plan,


(10) debts incurred while the plan was in effect that were not paid under the plan,


(11) debts owed to creditors who did not receive notice of the chapter 13 case, and


(12)long-term debts upon which payments were made under the plan.

A partial chapter 13 discharge, which is granted when a debtor is unable to complete the payments under a plan due to circumstances for which he or she should not be held accountable, discharges the debtor from all debts except:


(1) secured debts (i.e., debts secured by mortgages or liens),


(2) debts that were paid outside of the plan and not covered in the plan,


(3) installment debts whose last payment is due after the completion of the plan,


(4) debts incurred while the plan was in effect that were not paid under the plan,


(5) debts owed to creditors who did not receive notice of the chapter 13 case,


(6) debts that are not dischargeable in a chapter 7 case, and


(7) long-term debts upon which payments were made under the plan.

  • What is a chapter 13 plan?

    It is a written plan presented to the bankruptcy court by a debtor that states how much money or property the debtor will pay to the chapter 13 trustee, how long the debtor’s payments to the chapter 13 trustee will continue, how much will be paid to each of the debtor’s creditors, and certain other matters.

  • What is a chapter 13 trustee?

    A chapter 13 trustee is a person appointed by the United States trustee to collect payments from the debtor, make payments to creditors in the manner set forth in the debtor’s plan, and administer the debtor’s chapter 13 case until it is closed. In some cases the chapter 13 trustee is required to perform certain other duties. The debtor is required to cooperate with the chapter 13 trustee.

  • What debts may be paid under a chapter 13 plan?

    Any debts whatsoever, whether they are secured or unsecured. Even debts that are nondischargeable, such as debts for student loans or child support, may be paid under a chapter 13 plan.

  • Must all debts be paid in full under a chapter 13 plan?

    No. While priority debts, such as debts for domestic support obligations and taxes, and fully secured debts must be paid in full under a chapter 13 plan, only an amount that the debtor can reasonably afford must be paid on most debts. The unpaid balances of most debts that are not paid in full under a chapter 13 plan are discharged upon the completion or termination of the plan.

Contact us today to find out how we can best serve you.

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