File Bankruptcy in Ohio

In Ohio, you can apply for both Chapter 7 and Chapter 13 Bankruptcy as an individual consumer.

Bankruptcy in Ohio does not discharge some debts, including most back taxes, child support, alimony, most student loans, penalties or fines, and purchases greater than $550 made within 90 days of filing bankruptcy, or cash advances greater than $825 made within 70 days of filing bankruptcy.

To file for Chapter 7 bankruptcy in Ohio and have your debts erased, you must pass a means test. Under the test, if you make less than the median income for a Ohio family, you may file under Chapter 7. For singles, the median income in Ohio is $40,168. $49,708 is the median income for a family of two, $59,786 for three persons, and $70,532 for four persons. If there are more than four members of your family, add $6,900 for each additional person.

Before you file Chapter 7 bankruptcy in Ohio you will need to undergo credit counseling approved by the state, as well as complete any unfiled tax returns.

Once you meet the minimum requirements, your attorney will need to file a Statement of Financial Affairs with your local Court. Your Statement of Financial Affairs will include a list of all your debts, both secured (such as mortgages or car loans) and unsecured (such as credit cards and medical bills). You will also need to include names and contact information for all your creditors and an itemized list of your personal property and assets.

If you own a home and file bankruptcy in Ohio, you will able to keep under the homestead exemption if you have less than $5,000 in equity in it.

Under Ohio law, you will also be able to keep your vehicle if you have less than $1,000 equity in it. If you have an auto loan, you will need to reaffirm it after filing bankruptcy.

Pursuant to Ohio bankruptcy law, you can also keep the following: Clothing and beds valued at less than $200 per item; your refrigerator and stove, if valued at less than $300 per item; jewelry valued at less than $200 per item, up to $1,500 total; furniture, books, household items, guns, and fishing equipment valued at less than $200 per item, up to $1,500 total.

You are also entitled to keep many life insurance settlements, disability and retirement benefits, as well as child support and alimony. You will also be permitted to keep the majority of the wages earned at your job. If you have a low income, the judge will take that into consideration when determining how much, if anything, will be deducted from your salary.

If you have extra income that would allow you to repay your debts, you may want to file Chapter 13 bankruptcy. Under Ohio Chapter 13 bankruptcy, you will establish a payment plan with the approval of the court.