What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals to eliminate most unsecured debts, such as credit card bills, medical expenses, and personal loans. This process involves selling non-exempt assets to repay creditors, followed by a court discharge of eligible debts.
During the bankruptcy process, Ohio courts issue an automatic stay, preventing creditors from contacting you, garnishing wages, or initiating foreclosure proceedings.
How to File for Chapter 7 Bankruptcy in Ohio
Filing for Chapter 7 bankruptcy in Ohio involves several key steps:
- Gather Financial Documents: Collect records such as tax returns, pay stubs, mortgage deeds, and loan statements.
- Complete Credit Counseling: Ohio law requires you to attend a pre-bankruptcy credit counseling session.
- File a Bankruptcy Petition: Submit the required forms and documents to the appropriate Ohio bankruptcy court.
- Attend a Meeting of Creditors: A bankruptcy trustee will review your case and address any creditor objections.
- Complete a Second Counseling Course: This post-filing credit course is mandatory before debt discharge.
- Debt Discharge: Once your non-exempt assets are liquidated, remaining dischargeable debts are eliminated.
Ohio Chapter 7 Bankruptcy Exemptions
Ohio bankruptcy laws allow exemptions to protect certain assets from liquidation, including:
- Primary Residence: Up to $145,425 in home equity
- Vehicle: Up to $4,000 in equity
- Personal Property: Up to $625 per item, $13,400 total
- Wages: Up to 75% of unpaid earnings
- Retirement Accounts: Fully exempt, including pensions and IRAs
- Public Benefits: Disability, workers’ compensation, and child support
Married couples filing jointly can double these exemptions for shared property. Our Ohio Chapter 7 attorneys can help you maximize your exemptions.
Do You Qualify? Understanding Ohio’s Chapter 7 Means Test
To file for Chapter 7 bankruptcy in Ohio, you must pass a means test, which assesses your income and expenses:
- Income Comparison: Your household income must be below Ohio’s median income level.
- Expense Analysis: If above the median, your allowable expenses (housing, medical bills, utilities) are deducted to determine disposable income.
- Affordability Test: If your disposable income is too high, you may need to file Chapter 13 bankruptcy instead.
Our bankruptcy attorneys can assess your eligibility and help you navigate the means test.
How an Ohio Chapter 7 Bankruptcy Lawyer Can Help
Filing for bankruptcy can be complex, but our experienced Ohio Chapter 7 attorneys can:
- Determine if Chapter 7 is right for you or explore alternatives like debt consolidation
- Assist with financial documentation and bankruptcy petition filing
- Represent you during creditor meetings and court hearings
- Help you protect exempt assets and secure the best possible outcome
Schedule a Free Consultation Today
If you’re considering Chapter 7 bankruptcy in Ohio, don’t navigate the process alone. Contact Amourgis & Associates for a free, confidential consultation today. Our offices in Akron, Cincinnati, Cleveland, Columbus, Beavercreek, and Canfield are ready to assist you.
Take the first step toward financial freedom—call now!
