Which Attorneys are Best for Filing Chapter 7 in Ohio?

Recent economic conditions have caused an increased number of Ohio Chapter 7 bankruptcy filings among individuals and businesses.  Chapter 7 is for individuals who do not have substantial assets, and for businesses that need to close their doors and pay off their creditors.  Making a decision to file an Ohio Chapter 7 bankruptcy should be discussed with an Ohio bankruptcy attorney.  Ohio bankruptcy attorneys are also familiar with Ohio foreclosure laws and many practice foreclosure defense law as well.  Ohio bankruptcy laws are complex.  While you could file a petition for bankruptcy on your own, it is not recommended.  A bankruptcy attorney can explain the bankruptcy laws and state and federal bankruptcy exemptions that may be available to you. 

Ohio Major Bankruptcy Exemptions

When you file for Chapter 7, you may be able to keep your home, car and some other personal assets if the value of the assets does not exceed the statutory exemptions.  The following is a list of the Ohio major bankruptcy exemptions that are available: 

• Homestead - $20,200
• Cash -$400
• $1,500 for personal items ($200 each item) if claiming homestead
• $2,000 for personal items ($200 each item) if not claiming homestead
• Jewelry -$1,500 if claiming homestead
• Jewelry -$2,000 if not claiming homestead
• Wild Card any category of exemption - $525 for any particular item, $10,775 aggregate value
• Motor Vehicle - $3,225
• Tools of Trade - $2,025 

You should check with your bankruptcy attorney for a complete list of exempt items. 

Chapter 13 or Chapter 11?

If you want to keep your assets, including your home, you may want to file a Chapter 13 bankruptcy.  A Chapter 13 allows you to negotiate debt reduction with your creditors and to enter into a court-approved payment plan.  For businesses that want to stay in business and reorganize their debts by entering into a payment plan with their creditors, a Chapter 11 bankruptcy may be a better choice.  Your bankruptcy attorney will be able to advise you which Chapter you should file under.  

Not All Debts Can Be Discharged 

Many people think that a Chapter 7 bankruptcy discharges all their debts.  This is not completely true.  Certain statutory debts cannot be discharged such as: 

• State and federal taxes (except for taxes that are 3 years or older may be discharged)
• Child and spousal support
• Student loans
• Government fine and penalties
• Court fees
• Debts resulting from driving intoxicated
• Debts relating to crimes

In a Chapter 7 bankruptcy, all your assets, except exempt assets, are sold to pay off your creditors.  All unsecured credit card debt and other unsecured debts, except the above statutory debts, are discharged. The good thing about filing Chapter 7 is that you get a fresh start.

Hire a Bankruptcy Attorney

It is recommended that you hire an Ohio bankruptcy attorney if you are thinking about filing for Chapter 7 bankruptcy.  The attorney can prepare the necessary legal documents and represent you in bankruptcy court.