Bankruptcy is a system of federal law, so the process to file for Chapter 7 bankruptcy or to file for Chapter 13 bankruptcy is nearly identical in every state, including Ohio. However, state law plays an important role, particularly in setting property exemptions, which determine what property you get to keep (if you file for Chapter 7) and how much you have to repay your creditors (if you file for Chapter 13). There are also important resources available to you by state.
Before you file for Chapter 7 or Chapter 13 bankruptcy in Ohio, you will have to complete mandatory credit counseling with an agency that’s been approved by the United States Trustee’s Office. Here’s a list of agencies in Ohio that have been approved to provide this counseling.
Where to File
In Ohio, the bankruptcy courts are divided into two districts -- the Northern District and the Southern District. In the Northern District, there are bankruptcy courts in Toledo, Cleveland, Youngstown, Akron, and Canton. In the Southern District, there are bankruptcy courts in Cincinnati, Columbus, and Dayton.
Like every other state, Ohio has its own set of property exemptions. (To learn more about how property exemptions work generally and which exemptions you may use, see Bankruptcy Exemptions: What Do I Keep When I File for Bankruptcy?)
In Ohio, you must use the state’s exemption list; although some states allow debtors to choose between the state list and a federal list, Ohio isn’t one of them.
Ohio allows debtors to exempt up to $132,900 of real or personal property used as a residence. In Ohio, you can also exempt varius life insurance policies and proceeds, certain public benefits, alimony, child support, some pensions, items of personal property (including a burial plot; animals, crops, books, furnishings, appliances, firearms, jewelry, etc. to $12,250 total; motor vehicles to $3,675, and more), and tools of the trade to $2,325, among other things. Here’s a list of Ohio exemptions.
The Means Test
When you file for bankruptcy, you must compare your income to the median income for a household of your size in Ohio. If your income is less than the median, you will be eligible to file for Chapter 7 and, if you choose to file for Chapter 13, you can use a three-year repayment plan (rather than five years).
Currently, the median Ohio income for a one-person household is just under $40,500; these figures change periodically. You can find the most recent amounts on the website of the U.S. Trustee at www.justice.gov/ust. Click on “Bankruptcy Reform,” and then “Means Testing Information.” Or go directly to the Census Bureau table here.
After you file for bankruptcy but before you receive your discharge, you must take a debtor education course. Like the mandatory credit counseling you must take before filing your forms, you must receive debtor education from an agency approved by the U.S. Trustee’s Office. Here a list of agencies approved to provide this course in Ohio.
Getting Help From a Bankruptcy Lawyer
If you're considering bankruptcy, you may want to talk to an experienced Ohio bankruptcy lawyer.