Ohio bankruptcy laws may differ from other states in terms of residential property exemptions, personal property exemptions and exemptible wages. Before you seek out your free bankruptcy form, you’ll need to know which type of bankruptcy you’re eligible for under state law (either Chapter 7 or Chapter 13). Many people hire legal professionals to help explain the technicalities of the local system, but here are some guidelines to give you a general understanding of Ohio law.
Like all laws, Ohio bankruptcy laws are aimed at helping consumers who can only pay the minimum amount on their bills, can’t dig out of debt within five years through a Debt Management Plan, are getting foreclosure or repossession notices and have suffered an unanticipated financial setback like a medical emergency, a divorce or job loss. While filing bankruptcy court forms cannot discharge expenses like student loans, IRS tax debt, child support, alimony, large luxury purchases and court-ordered settlements, the reprieve from other troublesome debts can give most Ohioans a fresh start.
You may be wondering which type of filing Ohio bankruptcy laws will permit you. People who are unemployed or suffering extreme financial hardship can often file for Chapter 7 bankruptcy or “total liquidation bankruptcy.” This will require you to give up certain personal items to be sold by a court-appointed trustee to satisfy some of your debts, although your financial obligations will end there and the rest of what you owe will be discharged.
In a Chapter 13 or “restructuring bankruptcy” settlement, you will still need to pay off your debts each month to a trustee, but you can stop legal proceedings against you and your property and make your monthly payments more reasonable. To fill out Chapter 13 forms applications, you must have no more than $1,010,650 in secured debt (mortgage, cars, etc) and no more than $336,900 in unsecured debt (credit cards).
According to Ohio bankruptcy laws, you are allowed a $5,000 homestead exemption, a $1,000 automobile exemption, $400 in cash, a refrigerator and stove totaling $600, death benefits and personal injury awards up to $5,000, household goods and furniture up to $1,500, jewelry up to $3,500, tools of the trade up to $750 and additional personal property up to $400. When you file bankruptcy forms online, you will not have to worry about losing medical support devices, pension benefits, retirement benefits or life insurance policies. You may use your federal exemptions in conjunction with the Ohio exemptions to help you save more of your personal property in your time of need.