The big difference between Chapter 7 bankruptcy and bankruptcy, chapter 13, is that there are monthly payment plans created for the chapter 13 debtor. Payments must be made to the Chapter 13 Trustee over a period of 3 years (sometimes as long as 5 years).

These payments are usually some or all of your credit card debt, whatever you may be behind on your mortgage payment, and sometimes your car loans. This is a good way to stop foreclosure and save your house, as well as stop creditor harassment. And of course, all the Ohio bankruptcy exemptions still apply, so you can keep some or most of your stuff.

About one month after the filing, the debtor and his attorney attend a meeting of creditors. The debtor files monthly operating reports, showing income and disbursements, profit and loss, and a balance sheet, and pays quarterly fees to the U.S. Trustee based on the amount of money disbursed.

Chapter 13 of the Bankruptcy Code is designed to enable individual debtors under Court protection and supervision to apply a portion of future earnings to the payment of a portion of their debts over an extended period of time. The debtor is protected from creditors by an automatic stay while a plan of repayment is developed and carried out. It is similar to a Chapter 11 Business Reorganization. In fact, Chapter 13 is sometimes called "Consumer Debt Adjustment."

Chapter 13 was intended to give the wage earner a reasonable opportunity to arrange installment payments out of future income so that creditors would receive more money than they otherwise would receive in liquidation.

You're going to want a skilled bankruptcy attorney to help you so you can make your payment plan no more than you can afford for your Chapter 13.