Académique Documents
Professionnel Documents
Culture Documents
SCOTT R. NEEDLEMAN
BANKRUPTCY AND FORECLOSURE DEFENSE ATTORNEY
Each year, millions of hard-working individuals find themselves facing financial difficulties that appear to have no solution. Due in large part to the recession the United States recently experienced the number of people who are struggling financially has increased dramatically. As a result, the number of bankruptcy petitions filed across the country has reached record highs. The decision to seek protection by filing for bankruptcy is never an easy decision to make; however, it is often the best solution. One of the most common reasons why people are hesitant to file bankruptcy is the fear that filing for bankruptcy means losing assets-assets that have taken a lifetime of hard work to acquire. While this fear is certainly understandable, it is largely unfounded. Most debtors are able to keep their home, vehicle, and a variety of other assets when they file for bankruptcy by utilizing the Ohio bankruptcy exemptions.
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
The U.S. Bankruptcy Code allows an individual debtor to file for bankruptcy protection under chapter 7, 11, 12, or 13. Although Chapter 11 can be used by an individual it is more commonly utilized by a small business. Chapter 12 is limited to those who qualify as a family fisherman or family farmer. Therefore, most debtors file under either chapter 7 or chapter 13 when they file bankruptcy. A debtor must qualify under what is referred to as the "means test" in order to file a chapter 7 bankruptcy. The means test requires a debtor to perform a series of calculations aimed at determining whether the debtor's income is at or below the median income for similarly situated households in Ohio. If the debtor does not qualify under the means test then a chapter 13 must be used. A debtor may also choose to file a chapter 13 even if he or she qualifies to file a chapter 7. A chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy" while a chapter 13 is known as a "wage earners" bankruptcy. The names are both somewhat deceiving. In a chapter 7 bankruptcy a debtor's nonexempt assets are subject to be confiscated by the bankruptcy trustee, liquidated, and the proceeds used to pay creditors; however, in reality most chapter 7 debtors are able to use the applicable exemptions to protect most, or even all, of their assets. A debtor whose income is too high to qualify under the chapter 7 means test, or who has valuable assets
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
that are not exempt, will need to file a chapter 13 bankruptcy. In a chapter 13 bankruptcy the debtor is required to develop a repayment plan that allows the debtor to repay most of his or her debts over an extended period of time, typically three to five years.
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
The U.S. Bankruptcy Code includes exemptions that a debtor may be able to use; however, the individual states are also allowed to create their own set of exemptions. The state in which a debtor is considered a resident at the time the bankruptcy petition is filed will determine which set of exemptions the debtor is allowed to use. Some states require a debtor to use the federal exemptions while other states require a debtor to use the state exemptions. Still other states allow a debtor to choose either the federal or state exemptions but a debtor cannot mix the two. In Ohio a debtor is required to use the state exemptions, meaning the federal exemptions are not an option for a debtor filing bankruptcy in Ohio.
OHIO EXEMPTIONS
The list of exemptions to which you are entitled if you file bankruptcy in Ohio is lengthy; however, there are some commonly used exemptions that provide you with an idea of how much you can protect when you file for bankruptcy. Homestead $132,900 Vehicle $3,675 in one motor vehicle Household Goods $12,250 total and up to $575 in a single item Cash $450 Wages 75 percent of wages Retirement/Pensions IRAS and Roth IRAs to $1,171,150 plus private pension and tax-exempt retirement accounts Benefits unemployment and workers compensation benefits Wildcard -- $1,225 in any asset not covered elsewhere
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
As you should be able to see the average debtor is able to exempt a significant amount of assets. Remember as well that if you are filing a joint petition with a spouse the exemption amounts are doubled.
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
mortgage loan. To keep your home you will need to enter into a reaffirmation agreement with your lender during the bankruptcy process. With a better understanding of how the Ohio bankruptcy exemptions operate you should find that many of your fears regarding the bankruptcy process have disappeared. Although each debtors situation is unique, and only an experienced Ohio bankruptcy attorney can provide you with specific advice, it should be clear that most debtors are able to retain the majority of their property while still addressing their financial crisis by filing for bankruptcy protection. Ohio State Bar Association, Ohio Law Allows Property Exemptions in Bankruptcy NOLO, Ohio Bankruptcy Exemptions U.S. Courts, Bankruptcy Basics
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com
Every associate at The Needleman Law Office is committed to handling your case in both a personal fashion and in a professional manner. In other words, we treat you the way we would want to be treated. We will take a personal interest in your situation, making sure you understand exactly what is happening and what options you may have. Then well fight to ensure the best possible outcome for your situation.
Ohio Bankruptcy Exemptions and How They Can Help You thecolumbusbankruptcylawyer.com