If you are considering filing for bankruptcy in Ohio, the first step is to meet with a licensed bankruptcy attorney. The attorney will help you understand your options and what type of bankruptcy may be best for your situation.
In Ohio, there are two types of bankruptcy that individuals commonly file for: Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is also known as a “liquidation” bankruptcy. In a Chapter 7 bankruptcy, your assets may be sold to pay off your debts. However, there are exemptions in Ohio law that may allow you to keep certain assets such as your home, car, and personal property.
Chapter 13 bankruptcy is also known as a “reorganization” bankruptcy. In a Chapter 13 bankruptcy, you will create a repayment plan for your debts and make payments over a three to five year period. At the end of that period, any remaining eligible debts are typically discharged.
To begin the bankruptcy process, you will need to gather financial documents such as pay stubs, bills, and tax returns. You will also need to complete a credit counseling course before filing for bankruptcy.
Once your bankruptcy petition is filed, an automatic stay is placed which stops most collection activities, including debt collection calls, wage garnishments, and lawsuits.
It is important to note that not all debts can be discharged in bankruptcy. For example, certain tax debts, student loans, and court fines may not be dischargeable.
Additionally, bankruptcy can have a significant impact on your credit rating and future ability to obtain credit. However, bankruptcy may be a viable option if you are struggling with overwhelming debt and unable to make regular payments.
In summary, if you are considering filing for bankruptcy in Ohio, seek the advice of a licensed bankruptcy attorney who can guide you through the process and help you make an informed decision about your options.
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