Compare Credit Credit information online

The Ins and Outs of Filing for Bankruptcy in Ohio

Posted on | December 24, 2011 | No Comments

Taking control of your debt is the first step you need to take to regain control over your life. If your debts are mounting with no end in sight, consider filing for Chapter 7 or Chapter 13 bankruptcy. Each option offers a different way for you to restart your life and depending on your needs, filing for bankruptcy may be the first step forward. Consider a change in your lifestyle and learn more about filing in Ohio.

Filing for bankruptcy in Ohio may lead to a change in lifestyle for both you and your family. There are two types of bankruptcy to keep in mind when filing in OH: Chapter 7 and Chapter 13. To summarize, there are a few key similarities and differences between Ch 7 and Ch 13:

Chapter 7 is:

  • Good for those without a stable income and struggling to repay their unsecured debts, including personal loans, credit card debts, and medical bills.
  • Ideal for people who do not have many assets; Chapter 7 could require the sale of property.

Chapter 13:

  • Is fitting for people who do have a stable income, but have fallen behind on payments.
  • Consolidates your loans into a large lump sum, payable through a three- to five-year debt repayment plan.
  • Stops creditors from contacting you for three to five years.

While these are the general conditions, be sure to keep in mind specific exemptions when filing in Ohio. Under Ohio bankruptcy law, the following is a list of property that is exempt from creditors even after declaring bankruptcy:

  • 75 percent of your paycheck,
  • Up to $10,725 worth of personal property, including clothes, appliances, pets, instruments, food and so on. Each item cannot be worth more than $525 (up to $1,350 for jewelry and $2,025 for trade tools),
  • An automobile worth up to $3,225,
  • Real estate up to $20,200.


In other words, even after declaring bankruptcy, you are still allowed to keep a significant part of your belongings, preventing you from truly being “bankrupt.” If you are facing serious personal debt, whether from an inability to pay current bills or from the need to catch up on overdue bills, filing for bankruptcy in Ohio may be a solution to getting back on track. If you are interested in speaking with a local bankruptcy lawyer in Ohio, simply take an evaluation or get in touch directly to determine your needs. Remember, laws are constantly changing, so it would be beneficial to consult a local lawyer for the most updated information. Filing for bankruptcy should not be your first option, but it can be the one that changes the course of your financial instability.

About the Author: Nestor Perris is a law student who is studying the differences between bankruptcy laws in each state. Always consult with a bankruptcy attorney, even if you aren’t sure you want to file. They’ll be able to help you determine what steps to take next.

Related articles
Category: Banking, Finance

Comments

Leave a Reply