When Ohio residents struggling with unmanageable levels of debt need help, bankruptcy may well be one option that they pursue. However, before rushing into the decision to file for bankruptcy, it is important to assess the different types of plan available and map those to their assets to select the one right for their needs. 

People who own homes and who want to keep those homes may be better served by filing a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy. While both types of bankruptcy plans offer relief to debt-laden consumers, they do it in very different ways according to Bankrate. These differences can be especially important to people who want to avoid losing their homes.

A Chapter 13 bankruptcy does not simply eliminate all included debts from the get-go but rather sets up a structured repayment of debts over the course of time. A Chapter 13 plan may last anywhere from 36 to 60 months. This repayment allows consumers to pay back some debt but to reduce their overall payments each month which may therefore make it possible for them to get or stay current on mortgage payments.

The U.S. Courts indicates that mortgages are not included in Chapter 13 bankruptcy plans and therefore these payments must be made in addition to the monthly bankruptcy plan payments. Once a Chapter 13 bankruptcy is filed, an automatic stay is issued which stops any and all collection activity by a home mortgage lender for a period of time during which the consumer can make plans to get caught up on the mortgage.