When you are ready to declare bankruptcy in Ohio, you must first decide if you would rather declare Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 7 in Ohio will wipe away most old debts that you have, and will make sure that you get to keep most of your property as well. Therefore, this is the method of choice by most people. The other form of bankruptcy, Chapter 13, will set up a payment plan with your creditors by which you may be out of debt within the next three to five years. While not as good as Chapter 7 in many ways, it will stop any foreclosure on your home or property.
The Filing Process
The first thing you need to do when declaring bankruptcy in Ohio is to see your lawyer. He or she will have you gather up the needed paperwork such as your income, possessions, last two tax returns, list of your debts to each creditor, and so forth. Once you have gathered your paperwork, you or your attorney will use it to fill out the needed petition and other paperwork into the Ohio district bankruptcy court. These papers are collectively referred to as schedules. If the judge feels that you have not been entirely honest while preparing these schedules, he or she may throw out the case.
Automatic stay
Once you have filed the necessary paperwork for bankruptcy chapter 7 in Ohio, there will be an automatic stay. This basically means that your creditors will no longer be able to contact you in request of payment or put holds on any of your property. So in other words, they will no longer be able to harass you or put a foreclosure on your property. If you have declared Chapter 13 bankruptcy, your new payment plan will go into effect about this time.
Exemptions in Ohio
When you declare Chapter 7 bankruptcy, you will be able to declare your property as exempt. This basically means that your creditors will not be able to take it. You may not be able to declare all of your property exempt, but chances are you will be able to declare most of it exempt at least. Examples of exemptions in Ohio include: real or personal property used for primary residence up to $5,000, insurance, alimony, child support, property for business partnership, pensions, personal property, public benefits, tools of your trade, and wages up to 75 per cent.
If you are having financial troubles, and thinking about bankruptcy, be sure to consult with a bankruptcy attorney before making any decisions. They will help you decide the best options.
