Understanding Bankruptcy Laws In Ohio

October 21st, 2020 by admin Leave a reply »

The purpose of bankruptcy laws in Ohio is to give people in financial crisis a chance for a new financial beginning. Each state has its own laws that govern bankruptcy that apply to their respective residents, even though Federal Courts handle Bankruptcy. These laws are based on the federal statutory law as contained in Title 11 of the United States Code. However, Ohio bankruptcy cases follow the bankruptcy laws of that state and not the federal bankruptcy laws.

Two federal bankruptcy courts in Ohio determine cases on bankruptcy following the Ohio state bankruptcy laws. The two courts are the Ohio Southern Bankruptcy Court and the Ohio Northern Bankruptcy Court. The person filing for bankruptcy can download the relevant forms from the internet or get them directly from a provider of such forms. Personal bankruptcy can be filed as either a Chapter 7 or Chapter 13 bankruptcy.

Under the current bankruptcy laws in Ohio, there are some properties that are exempted from creditors. You should actually check with an attorney to find out the actual current exemptions and how they will apply to you. These vary based on which chapter you file, your current income, assets and other considerations.

The creditors are also restrained from accessing wild card and personal properties of $400 in value together with all education and pension plans. Health aid, money paid for alimony and child support, property of a partnership business, retirement benefits, ERISA-qualified benefits, death benefits for police and firefighters, benefits from group life insurance, seal and office registers are also protected from creditors. As you can see, this can get confusing.

According to the bankruptcy laws in Ohio that came into effect April 20, 2005 the value of the home that is exempted reduces by the disposition of any non-exempt property during the ten year period prior to the application of the bankruptcy. Other exemptions recognized in the federal laws can be used alongside the Ohio state bankruptcy laws.

Where a person is not a permanent resident in Ohio or such a person has lived in many states in the last five years, the law of state in which such a person lived the longest will become applicable. Bankruptcy laws are not easy to be understood by those who are not trained as lawyers. Therefore hiring a lawyer may be good to help you understand the laws properly.

When making claims on property held jointly, bankruptcy laws in Ohio will allow the spouse to make equal claims on the property jointly held reducing the amount the creditors are likely to liquidate. Even though you owe other people money, the laws do not allow them to take away and liquidate the assets that support your livelihood. Many people fail to apply for bankruptcy because they do not know how well the law protects them.

Filing for bankruptcy is not intended to drive people into more debt. It is intended to give them a chance to redeem themselves financially. It best advised to get a lawyer who is experienced in Ohio bankruptcy laws, or at least get a consolation with one to review your situation, to guide you in this sensitive matter. When done properly, bankruptcy can allow you a fresh start by removing the overwhelming burden of debts and the freedom to start over and move ahead.

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