In recent years chapter 7 Ohio bankruptcies have taken precedence over chapter 13 bks. This is thought to be because a chapter 7 bankruptcy is shorter, cheaper, and wipes out almost all debt without a repayment plan. This allows them to file for a new line of credit such as vehicle financing after bankruptcy sooner to rebuild their credit. but every now and then a chapter 13 is preferred by Ohio bankruptcy clients.

For instance, a chapter 13 is usually preferable to a debtor who:

• Wished to repay all or most of his/her unsecured debt and has the income to do so in a timely manner.
• Has valuable nonexempt or has valuable exempt property which would be lost in a chapter 7
• Is not eligible for a discharge in chapter 7
• Has one or more dischargeable debts under chapter 13 that are not dischargeable in chapter 7
• Has sufficient assets to repay most or all of debt, but needs relief from creditors to do so.

Ohio Chapter 13 Benefits

A chapter 13 bankruptcy offers many benefits to Ohio debtors that a chapter 7 does not. For instance, if your car is not worth much or you’re upside down on the loan you can surrender the vehicle (which is offered in chapter 7) and you can apply for an auto loan while in chapter 13. Open bankruptcy car loans are more likely to be approved when in a chapter 13 because the process is so much longer. If you are in a chapter 7 you may be turned down and required to apply again once discharged.

Another benefit offered once you receive your chapter 13 discharge is you can be released from liability from several debts that are not dischargeable in bankruptcy. These debts can (in some cases) include income taxes, student loans, and other court appointed fees.

Bankruptcy Auto Financing in Ohio

If you are finding yourself under insurmountable debt and are considering bankruptcy you’re not alone. Here at BankruptcyAutoFinancing.com we have helped many Ohio bankruptcy clients find the auto financing they need to help rebuild their credit even before they have been discharged from their chapter 13.

We work with a network of Ohio lenders that specialize in subprime credit including bankruptcy and repossession that will work to get you approved for a car loan that fits your budget. Apply online today to see how you could qualify for and you could be on your way to a better credit score and a new vehicle.

Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.