Over 40,000 Ohio residents file for bankruptcy every year. For many filers, bankruptcy provides:

• A way out of crushing debt
• Relief from harassment by debt collectors
• A fresh financial start

But bankruptcy laws are complex and have changed significantly in recent years. This has left many prospective filers unclear on how bankruptcy works, who it is appropriate for, and what benefits bankruptcy can provide.

If you are considering filing bankruptcy in Ohio, here’s what you need to know.

Under federal bankruptcy laws, applicants can be:

• Individuals
• Married couples
• Partnerships
• Corporations or other business entities

In order to file in the state of Ohio, applicants must meet one of the following criteria:

• Be residents of the state
• Own or operate a business in the state
• Be able to demonstrate that they spent the majority of their time in the state within the 180 days prior to filing

Prospective applicants who wish to file for Chapter 7 bankruptcy must also pass a Means Test.

Courts use the Means Test to determine whether applicants have the income and resources to pay off some of their debts.

The Means Test has two steps. First, filers calculate their gross household median income for the six months prior to filing. So, for example, if an applicant is filing in June, they will calculate their income from December first of the previous year to the last day of May of the current year.

Individuals must account for all of the following types of income when calculating:

• Gross wages
• Alimony and child support
• Business or rental income
• Unemployment income
• Income from pensions or retirement funds
• Any monies or support contributed to the household by roommates, romantic partners, family members, or others

Social Security and disability benefits do not count toward income totals.

Once filers have their median income, they compare that number to the state median income for households of their size.

To make this comparison, filers must use the official median income numbers compiled by the U.S. Census Bureau. These numbers are available from the Office of the United States Trustee (UST).

Applicants whose incomes are below the state median are eligible to apply for Chapter 7 bankruptcy in Medina and Wayne County. With some exceptions, applicants with incomes above the state median must apply for Chapter 13 bankruptcy instead.

Even applicants who otherwise qualify may be ineligible to file for bankruptcy if they meet certain criteria.

For example, applicants are not eligible if they previously filed for bankruptcy but had their case dismissed within the last 180 days due to:

• Refusal or failure to appear in bankruptcy court
• Refusal to comply with bankruptcy court orders
• Their request to end the case prior to resolution

Similarly, applicants who filed for bankruptcy in the past and had their debts discharged must wait a certain amount of time before they are eligible to file again.

The exact amount of time they must wait depends on:

• What chapter of bankruptcy they filed under before
• What chapter they wish to file under now
• The results of their previous case
• Whether any special circumstances apply at the time of filing

Depending on their circumstances, applicants may need to wait between 2 and 8 years after their last bankruptcy before filing again.

Once you have determined that you are eligible to file for bankruptcy, you can explore which type of bankruptcy is right for you. There are six primary types of bankruptcy.

• Chapter 7
• Chapter 9
• Chapter 11
• Chapter 12
• Chapter 13
• Chapter 15

Not all forms of bankruptcy are appropriate for or open to individuals. Chapter 9 bankruptcy is for municipalities. Chapter 11 is for businesses, specifically large corporations.

Chapter 12 is for family farming or fishing operations. Chapter 15 is for specialty cases.

The two types of bankruptcy commonly available and most suited to individuals, couples, and small businesses are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is a liquidation of the applicant’s assets but normally people can keep their property by claiming the applicable exemptions.

Chapter 13 bankruptcy, filers adjust their debt and create a payment plan to address it. In a Chapter 13, the debtor does not lose any property.

Before choosing between these options, however, it is important to take a deeper look at their differences and the effects of those differences on filers.

Filing for bankruptcy under Chapter 13 in Medina County or Wayne County, can be ideal for individuals or households with a reliable income. In this type of bankruptcy, filers:

• Stop receiving calls from debt collectors
• Do not have to worry about their belongings being repossessed
• Can keep all or most of their assets, such as their homes and vehicles
• May enjoy more stability and consistency in their living situations than Chapter 7 filers

The key to these great results is their repayment plan. Filers work with the court to develop a plan that lets them repay a percentage of their debts over time.

Filers with median incomes below the state median set up three-year repayment plans. Fillers with median incomes above the state median set up plans that are five years long.

As long as applicants continue to repay their debts as laid out in the plan, their creditors cannot:

• Attempt to collect on debts outside of the payments scheduled in the plan
• Start new collection efforts
• Attempt to collect any money or assets from co-signers on the applicants’ debts
• Otherwise harass them or their co-signers

Chapter 13 repayment plans can lower filers’ monthly payments and extend how long they have to pay off bills. It can help them keep their assets and rebuild their financial lives.

Filing for bankruptcy is never a decision to be taken lightly but a Chapter 7 bankruptcy in Medina County or Wayne County, is a choice filers must think about carefully. This is because unlike Chapter 13, applicants who file under Chapter 7 may have to turn over some of their property in the bankruptcy or pay an amount to keep it.

Exempt Property in Ohio

Not all property is forfeited under Chapter 7 bankruptcy in Ohio. Filers can keep:

• Up to $145,425 in equity in their home of residence
• $4,000 in equity in a single vehicle
• Up to $2,550 in tools or property related to their profession
• $1,325 worth of other property of the filer’s choice

What this looks like will vary from case to case. Cars are an excellent example. For instance, if you own a car outright and it is worth less than the $4,000 in equity allowed under Chapter 7, then you may keep the car.

If you are still making payments on a car loan, you can keep the car if the equity in the vehicle is less than $4,000

Filing for personal bankruptcy under Chapter 7 can be a powerful way to discharge serious debt. It can give applicants a clean financial start that they might not be able to obtain any other way. Filing a Chapter 13 is a good alternative to Chapter 7 bankruptcy if the debtor may lose a piece of property in a Chapter 7 because a debtor does not lose their property in a Chapter 13.

Before you can file for business or personal bankruptcy in Ohio, you must participate in credit counseling.

Not just any credit counseling will do. Prospective filers must complete a specific pre-bankruptcy course offered by an approved provider. Most providers allow participants to complete the course online or by phone. This ensures that every potential applicant has access.

On average, this course costs between $20 and $25. In cases where applicants are filing with a spouse or partner, both parties must take the course.

During the course, enrollees will work with credit counselors to develop a picture of their financial situation. They may then create a potential plan for paying down their debts. This information must be turned over to the court during their bankruptcy case, which is why they must complete the course prior to filing.

Consulting an Ohio Bankruptcy Attorney

Technically, filers do not have to consult a bankruptcy attorney before they submit a bankruptcy petition in Ohio. However, all prospective applicants are strongly encouraged to consult an experienced bankruptcy attorney prior to filing.

Bankruptcy laws are complicated and the process can be, as well.

For example, failure to respond to court demands in a timely manner can cause an applicant to have their case dismissed. This denies applicants the financial release bankruptcy can offer. It also prevents them from trying again for at least 180 days.

Moreover, failure to handle petitions in an organized and informed manner from the beginning often leads to lost time and higher total costs. Seeking guidance from an experienced Ohio bankruptcy attorney can help filers navigate Ohio bankruptcy laws with a minimum of stress. It also ensures the best possible results.

Applicants need to collect a variety of documents before they can file for bankruptcy in Ohio. Both the content and the format of these documents matter.

Documenting Assets and Income

To begin with, applicants should gather the following:

• Their federal and state tax returns for the three years prior to filing for bankruptcy
• Titles to any vehicles they own, including boats and other recreational vehicles
• Pay stubs or other proof of income for the seven months prior to filing
• Documentation of any other forms of income received in the seven months prior to filing
• Bank statements showing their current balances and activity for the six months prior to filing
• Copies of any life insurance policies they hold
• Up-to-date statements on 401(k) and other retirement accounts they possess

Property owners will also need:

• The deed to any homes or land they possess, in Ohio or elsewhere
• Proof of homeowners insurance
• Current mortgage statements

Documenting Debt

In addition to documenting their assets, applicants must document their debt. To this end, they should collect:

• At least one current copy of their credit report
• Their most recent bills, showing creditor contact information and account numbers
• Documentation of any loans they currently hold

Other Documentation

In addition to the documents above, applicants will need to gather the following before filing:

• At least one form of legal ID such as a driver’s license
• Their Social Security Card
• Documentation of any lawsuits filed against them, including home foreclosure proceedings
• Documentation of any lawsuits they have filed or intend to file against others, including workers compensation cases
• Divorce decrees, where applicable
• Current child support agreements or orders, where applicable

Also, if filers have ever filed for bankruptcy before, they must submit a copy of the documentation from those cases with their petitions. This is true regardless of how long ago that bankruptcy occurred or what jurisdiction it was in.

Once applicants have gathered their documents, they can begin filling out a bankruptcy petition. These forms can be extensive, but applicants must complete each one fully and carefully.

Applicants who cannot submit their applications in person may give another person Power of Attorney to submit their documents for them.

Applicants should keep a complete copy of their documents as submitted for their reference. They may wish to organize them in clearly labeled binders or folders for easy reference and retrieval throughout the case.

While Ohio bankruptcy courts may accept online applications, Bankruptcy Attorney Mary Lou Burns has been filing bankruptcies in Medina and Wayne County remotely since before the pandemic. This ensures a smooth and stress-free remote filing process for you. Allowing you to complete your entire bankruptcy remotely, by communicating with through phone, mail, email, text and/or fax.

Bankruptcy Fees

Applicants must pay a court filing fee when they submit their petition. These fees can vary slightly, but filing for Chapter 7 bankruptcy in Ohio generally costs around $338. The Court filing fee for a Chapter 13 bankruptcy generally costs around $310.

Filers may pay using:

• Cash in exact amounts only
• Money orders
• Cashier’s checks

The court will not accept debit cards, credit cards, or personal checks.

When an applicant files their petition, the court assigns an Ohio bankruptcy trustee to the case.

The trustee may request additional documentation or information. Applicants must provide that information or risk their case being dismissed.

They must also complete a second credit counseling course. Like the pre-filing courses, these courses are:

• Offered by approved agencies
• Between $20 and $25 each
• Mandatory for all filers
• Available online, in person, or by phone

Filers can take this course at any time after their case is filed with the Court.

Between 20 and 40 days after an applicant files, the trustee for their case will hold a 341 meeting. This is a meeting of the filer’s creditors. However, creditors rarely attend the meeting.

Filers must attend. If they have applied together with a spouse or a partner, both parties must attend.

During the meeting, the trustee and creditors will ask filers questions about their:

• Income
• Assets
• Debts
• Overall financial situation

The goal of the meeting is to verify that all the information included in the filing is correct. It also provides an opportunity for the trustee to ensure the filing was made in good faith and is not an attempt at fraud. Finally, it affords creditors an opportunity to voice any concerns or objections they may have.

The idea that all debt disappears when you successfully file for bankruptcy is a myth. Bankruptcy can eliminate enormous amounts of debt, but it does not apply to all forms. Some debts remain.

Examples of Debts that are not wiped out by bankruptcy in Ohio include:

• Alimony
• Child support
• Certain types of taxes
• Fees, fines, and penalties owed to the government or ordered by a court of law
• Loans taken against your retirement plan funds
• Any debts remaining after a previous bankruptcy case

Critically, filers need to know that student loan debt also does not disappear during bankruptcy. They will remain responsible for it post-bankruptcy, even if they file under Chapter 7.

Filers may apply separately to have their student loan debt discharged if they can prove that it represents a serious hardship. Being successful in such a case usually requires the assistance of an attorney.

Finally, individual creditors may appeal to the court to make the debt you owe them non-dischargeable. The court may agree if:

• You incurred the debt via fraud
• You purchased luxury items just before filing for bankruptcy
• The debt is the result of harm or damage you intentionally caused to another person or their property
• The debt is the result of a crime you committed such as theft or embezzlement
• You tried to hide the debt by not listing the creditor when filing for bankruptcy

A wide variety of other laws also impact Ohio residents filing for bankruptcy. Many of these laws are little known and poorly understood.

For example, most filers are unaware that selling their personal property before filing for bankruptcy can impact their case. This can be true even of assets sold several years before filing.

Courts may examine the gift or sale of real estate, vehicles, and personal property to determine:

• When you transferred ownership of things
• If you sold them for market value
• How you used the income from those sales
• What your intent was at the time of gifting or sale

If the court determines that you transferred property in an attempt to get out of paying legitimate debts, you could face trouble. Even innocent transactions poorly handled can complicate your case.

This is only one example of the myriad of bankruptcy laws that may affect your case. It is a prime illustration of why applicants should contact an attorney before filing.

When you file for bankruptcy, details matter.

Completing your paperwork correctly on the first try can save huge amounts of time and money. It can also make the difference between getting all your eligible debts discharged and being left with debt after the case.

When you apply also matters. A difference of just a few weeks can radically alter your position in court and your results.

But bankruptcy law is complex. Filers who attempt to go it alone often suffer from innocent and understandable but costly mistakes.

Hiring an experienced bankruptcy attorney who handles bankruptcies in Medina County and Wayne County protects you from these errors. Working with a bankruptcy attorney:

• Can shorten and simplify the bankruptcy process
• Strengthens your position and improve your outcomes
• Protects you, your family, and your assets
• Can help you get through your case with a minimum of extra court fees and expenses

Experienced attorneys can break down the vast body of bankruptcy law in ways that make it accessible. They can help you:

• Understand your options
• Evaluate the timing and choose the best timing for your needs
• Reduce the burden of gathering, completing, and filing paperwork
• Take the extra steps you may need to get rid of persistent debt such as student loans

At every step, working with an Ohio bankruptcy attorney is your best chance to achieve great results and find real financial freedom through bankruptcy.

If you are considering filing bankruptcy in Ohio, don’t tackle the process alone. Schedule a free consultation with us today or browse our blog for more empowering information on Ohio bankruptcy laws and how you can get a fresh financial start.

What are the advantages of filing for bankruptcy in Portage County, OH? Is it the right choice for you?

The average American is $90,000 in debt. In Portage County, OH, the case is quite the same and if you find yourself as one of these Americans, you’ll need an experienced bankruptcy attorney who knows about your local law court policies.

If you’re looking for the advantages of bankruptcy, you’ve probably found yourself amassed in debt that you can’t afford to repay.. Between several financial crises, a pandemic, a career change, and/or student loans, you may find yourself feeling buried and stressed. With Portage County Attorney Mary Lou Burns, you can find your Fresh Start.

With Ohio Attorney, Mary Lou, you can find relief and the answers to your growing questions. Let’s walk through what would benefit you during a difficult financial situation when you are considering bankruptcy.

Bankruptcy is complicated. When you are in a financial hardship, you are on the lookout for debt solutions, but it can be challenging to know where to begin. It may have become overwhelming for you to consider moving forward.

Crushing debt and overwhelming repayment plans can quickly become a burden. We have all been in financially difficult situations.
Bankruptcy is a system that has been set up by Congress to relieve you of your overwhelming debt.

You are safe from creditors the moment your petition is filed with the bankruptcy court in Portage County, OH. Filing for bankruptcy results in an immediate stay -or halt- on all collection actions. This means that all phone calls, garnishments, and collection letters must come to a halt.

It will also work to halt repossessions, evictions, and foreclosures for the time being.

Depending on your situation, it could be valuable for you to consider bankruptcy. The process can offer people much relief from the overbearing responsibilities of too much debt.

Many forms of debt, including credit card debt, medical costs, and personal loans, are dischargeable under Chapter 7 bankruptcy.

You should start by considering both sides of this solution.

The benefits of filing for bankruptcy far outweigh the costs. Your debt is eliminated through the bankruptcy process and your credit score goes up after you receive your discharge.

If you are straightforward about your finances with the Ohio bankruptcy court and the Portage County bankruptcy trustee, you could get your discharge in as early as four months and immediately begin rebuilding your credit..

It’s essentially automatic as long as you satisfy the conditions before and after filing your bankruptcy petition.

If you happen to feel like bankruptcy may be too extreme a measure for your situation, there are many free or not-for-profit debt counseling services in Portage County, OH. It is recommended that you enroll in one of these classes now, even if you decide filing for bankruptcy is the right choice.

Not only will this look great in court, but it will help you to make more proactive decisions about your money while going through the bankruptcy process. Making a positive change in your financial situation, no matter the case, is cause for celebration.

There are gaps between the advantages and pitfalls of applying for bankruptcy. The majority of that is determined by an individual’s financial position, which a variety of factors can influence. Suppose you are someone with a wide range of assets.

Prepare yourself in knowing that your situation will be very complicated.

Your debtors may carry out negotiations. They could want to collect your assets or liquidate your holdings to satisfy the debt you owe.

If you think bankruptcy is the right choice for you, you should contact an Ohio bankruptcy lawyer right away.

When you owe more than you can afford to repay, filing for bankruptcy can rid you of your duty to pay it all back. However, bankruptcy can sit on your credit records for seven to ten years. However, you will find that your credit score will go up rather quickly. In 2 years, your credit score should be in pretty good shape and you can begin thinking about the possibility of purchasing a home for yourself.

Following your bankruptcy filing, you will receive several offers to apply for an unsecured credit card. While this could help rebuild your credit score, they come with a high interest rate and annual fee.

Bankruptcy has an immediate impact on your credit score. A Chapter 7 bankruptcy declaration remains on the record for ten years. At the same time, a Chapter 13 bankruptcy declaration stays on the report for seven years. However, many people can qualify for home loan financing after 2 years.

If you’re drowning in debt, bankruptcy is just one solution. If you have big loans that you cannot cover, are late in your mortgage payments, and danger of eviction, are being threatened by bill collectors—or all of the above—filing for bankruptcy might be your best option. Filing for bankruptcy will protect you from wage garnishments.

Bankruptcy can minimize or remove loans, save your property, and hold bill collectors at bay in some situations.
Individuals more often use Chapter 7 and Chapter 13, named after the federal bankruptcy code pages that define them. Chapter 11 bankruptcy, which is often in the news, is mainly about companies.

You should not wait to file bankruptcy if you are behind in your payments to the creditors. The creditor will file a lawsuit in a state court so that they can collect on the debt by garnishing your wages and bank accounts and placing a lien on your property. A Chapter 7 bankruptcy and a Chapter 13 bankruptcy will stop all lawsuits and garnishments.

A Canton bankruptcy lawyer will help you navigate the many exemptions. They know which ones will protect your property. The attorney can also customize the right combination of exemptions. This grouping of exemptions will save you the greatest amount of money.

Your attorney will educate you on the laws limiting and regulating bankruptcy exemptions. The attorney will also be aware of any revised codes that are beneficial to you. This will save you lots of time researching the latest laws.

Contact Akron Bankruptcy Lawyer

Relief is around the corner. The easiest way to bankruptcy relief is hiring an Ohio bankruptcy lawyer. They know how to take you through the decision-making process. They also guide you through filing Chapter 7 or Chapter 13 based on your qualifications.

Simplify your life today. Contact Canton bankruptcy lawyer, Mary Lou Burns, and take advantage of our free consultation. This meeting will educate you on the exemptions most beneficial to you.

You will also be able to discuss a practical strategy. This will include what is important to you and your goals. Ohio bankruptcy lawyer, Mary Lou Burns, will be able to consider the next steps that are best suited for your circumstances.

Make sure you have all the appropriate forms and documentation. Your lawyer will be there with you in the bankruptcy process. You must collect all relevant records relating to your loans, personal property, monthly revenue, and expenses.

Your Portage County bankruptcy lawyer will use these records to review your final bankruptcy papers, which will consists of approximately 50 pages.

A trustee will be appointed to your bankruptcy. Your bankruptcy papers will be reviewed by your Ohio bankruptcy trustee. Bankruptcy trustees may determine whether filers are eligible for Chapter 7 bankruptcy.

In bankruptcy proceedings, the trustee will convene what’s called a 341 meeting of creditors. Typically no creditors attend this meeting. You’ll be asked questions about your bankruptcy petition and schedules that you filled with the Court..

A bankruptcy filing is a civil process. In this case, a claimant petitions the court to declare bankruptcy. You will get a clean slate regarding your finances by declaring bankruptcy.

To avoid legal problems during the bankruptcy proceedings, it is recommended that you use a Portage County bankruptcy lawyer. Understanding the fundamentals of bankruptcy law is crucial when applying for bankruptcy.

Filing a bankruptcy petition that is not in your best interests or filing too fast may result in assets loss. These are assets you would have been able to protect otherwise (or a situation that could otherwise worsen a dire financial circumstance).

You could also be at a loss if you filed a Chapter 7 bankruptcy instead of a Chapter 13 bankruptcy. It will help if you arm yourself with a team that is familiar with bankruptcy law on a local level. Someone who represents the greater Akron and Canton areas if you live in Portage County, Ohio.

Unless you have an in-depth knowledge of the law and legislation surrounding bankruptcy in your region, you will almost undoubtedly need an Ohio bankruptcy lawyer to represent you. The best way to get the result you want is to have a knowledgeable person on your team.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, may be used to clear several debts. This is the most commonly-filed bankruptcy. An effective bankruptcy filing will discharge a debtor from the legal obligation to repay creditors for the debts he or she owes.

Individuals who file for Chapter 7 bankruptcy can get rid of unsecured loans. Debts that are not backed by property such as a home are referred to as unsecured debts. Credit card payments, prescription bills, and personal loans are examples. Specific forms of loans, such as tax debt, felony fines and fees, child care, alimony, and student loan debt, are not dischargeable.

Before you can apply for Chapter 7 bankruptcy, you must meet some requirements:

1. You must pass the bankruptcy means test, which examines your monthly revenue, living costs, etc. If you don’t qualify for the Chapter 7 bankruptcy, you can file a Chapter 13 Bankruptcy.
2. If you filed a prior bankruptcy, there will a required waiting period to file another bankruptcy.

Keep in mind that these are not the only requirements to filing a Chapter 7 bankruptcy claim in Portage County, Ohio. You will want to look into particular conditions and restrictions based on your specific circumstances.

Most property is protected in a Chapter 7 bankruptcy. If you have unsecured loans, such as medical debt or credit card debt, Chapter 7 will help you get out of them and, in most circumstances, you will be able to keep all of your property by claiming exemptions.

When filing for Chapter 7 bankruptcy, your property becomes part of the bankruptcy estate for the time that your bankruptcy is open. You usually can keep your property, with a few exceptions which normally do not apply.

Filing for Chapter 7 bankruptcy discharges all of your debt, with a few exceptions. The bankruptcy relief from paying all of your dischargeable debts will free up money in your budget to pay off your non-dischargeable debts, such as student loans, taxes, or child support.

A Chapter 13 Bankruptcy is not for all. There are a few conditions you should be aware of ahead of time.

Some individuals are unable to file for bankruptcy under Chapter 7 because their income is too high. If your annual income exceeds the Median Income for your family size, we must do further tests under the Means Test, which includes multiple variables. You cannot file for Chapter 7 bankruptcy if you have too much money left over after deducting certain expenses.

Companies are not permitted to apply for Chapter 13 bankruptcy, only individuals may do so. However, your business-related debts on which you are directly liable will be discharged, so a sole proprietorship will be able to benefit from this chapter from a realistic perspective.

When you file a Chapter 13 bankruptcy, you must show that you can afford to fulfill both your monthly household commitments and your monthly Chapter 13 plan contributions. Once the court confirms (approves) your proposed repayment plan, it is legally binding on your creditors.

In a Chapter 13 bankruptcy, you can pay back as little as 1% of your unsecured debt, and the remaining 99% of your dischargeable debt goes away. As in a Chapter 7 bankruptcy, you would still be responsible for the non-dischargeable debt.

In a Chapter 13 bankruptcy, a “secured loan” must be paid by in its entirety if you want to keep it. However, sometimes the terms on a vehicle can be changed in the Chapter 13 bankruptcy or the mortgage on a home can we wiped out, if certain criteria are met.

You must inform the court that you are compliant with your child support and alimony payments and that you have fulfilled the budget counseling course.

Your mortgage can be paid through the Chapter 13 bankruptcy. Most school loans are also paid within the Chapter 13 bankruptcy plan at only a small portion of what the normal monthly payment would be.

The monthly repayment proposal you’ll present to your creditors, and the court is the most important aspect of your Chapter 13 bankruptcy. The plan would outline how your debts will be paid and how much will be paid. Your creditors and the Chapter 13 trustee will have the option to object to the plan. However, most do not object to your repayment plan.

Before any loans are forgiven in a Chapter 13 situation, the debtor must fulfill the 3 or 5-year repayment period commitment. The debtor and creditors enter into new arrangements as a result of the confirmation, which is legally binding on the creditors.

The duration of your plan depends on your income. It is most desirable to file a 3-year plan, A 5-year commitment is required if your income exceeds the median income in your state. However, in the case of a foreclosure on your home, you may need the extra time of a 5-year plan to repay the mortgage arrearages. And make your plan payment more affordable.

You must follow all guidelines and specific requirements to have a viable bankruptcy case. Make sure you have a plan and execute it in the order you discuss it with your lawyer.

The judge will award you a discharge, which will clear away your debts. When you file for bankruptcy, though, not all forms of loans are forgiven or washed out. Child support, alimony, certain taxes, school loan debt, and court fines are non-dischargeable debts.

Engage the services of a reputable bankruptcy lawyer who does bankruptcies in Portage County and who has years of experience in dealing with complicated financial issues.

Ohio Bankruptcy Attorney, Mary Lou Burns will help you interpret the bankruptcy laws for each chapter. She will help you decide which choice is better for you and will inform you of the appropriate process for filing bankruptcy. The more informed you are, the more likely you will be able to achieve your financial goals.

Your credit rating financial security is one of the most valuable assets you can protect as a modern consumer. You need lines of credit and a good financial standing to make the most important life-changing decisions.

If you are considering filing bankruptcy in Portage County, OH, this could very well be a viable option for you to give your finances the jumpstart they need. Filing for bankruptcy is one of the best ways to rebuild your credit.

You can count on Ohio Bankruptcy Lawyer, Mary Lou Burns to help you in deciding upon your best possible options. She can educate you on the laws limiting and regulating bankruptcy exemptions. She will help you to take advantage of all options available to you that are most beneficial in helping you attain your fresh start.

Relief is around the corner. The easiest way to bankruptcy relief is hiring an Ohio bankruptcy lawyer. Fresh Start Bankruptcy can guide you through filing Chapter 7 or Chapter 13 based on your qualifications. Contact us today to schedule your free consultation.

You will also be able to discuss a practical strategy. This will include what is important to you and your goals. Ohio bankruptcy lawyer, Mary Lou Burns, will be able to consider the next steps that are best suited for your circumstances.

Have you felt pinched by financial hardships and need relief?

We’ve all experienced some level of hard times over the years. In the past, we’ve limited our recovery forms to what we already knew. Yet, sometimes there is a better way to experience relief.

Filing for bankruptcy relief might be a solution. First, you’ll want to know what Chapter 7 and Chapter 13 can provide. You’ll also want to understand which direction is right for you.

Seeking an Ohio bankruptcy attorney is simple. Knowing the right questions to ask will strengthen your position. Akron Bankruptcy Attorney, Mary Lou Burns, is here to help prepare you for your next steps.

If you’re facing financial hardship, the information below can help bring relief. You’ll soon know why hiring an Ohio bankruptcy lawyer in Summit County or Stark County is a smart decision. You will also gain knowledge that helps you make the right choice for your circumstances.

Some people find two bankruptcy types a bit intimidating. However, you can end your anxiety by learning how to decide between filing for Chapter 7 or Chapter 13.

If you apply for Chapter 7 bankruptcy first and you qualify, then Chapter 13 might not be necessary. If you don’t qualify for chapter 7, you can file for Chapter 13 bankruptcy. There are other factors that an attorney can help you understand.

In the meantime, the below information clarifies what each provides and its qualifications.

Chapter 7 is a common form of bankruptcy that discharges your debt. That means you don’t have to pay back any creditors, except for non-dischargeable debt. The debts most often covered by Chapter 7 include:

• Credit card debt
• Medical bills
• Payday loans
• Personal loans
• Business debts
• Utility bills
• Non-fraudulent bounced checks
• Deficient balances on vehicle repossessions
• Rental agreements and past due rent
• Judgments on debt
• Automobile accident claims
• Social security overpayments
• Older income taxes

The common non-dischargeable debt includes:

• Student Loans (limited exceptions)
• Income taxes less than 3-years-old
• Alimony and child support
• Court fines and criminal restitution
• Damage and personal injury resulting from DUI
• Debts obtained by fraud

Hypothetically, there is a possibility of loss of real property with Chapter 7. Realistically speaking, this rarely happens due to exemptions. Once qualified, the exemption protects a certain level of equity in your property.

Ohio provides an exemption of $145,425 of equity to protect an individual’s property.

In other words, if your equity is lower than the exemption, then your home won’t be liquidated.

A second qualifying consideration is the Ohio Means Test. It compares your income to the median income in the state. To calculate the number, take your last six months of income and double it.

If your total exceeds the median income for your household size, it requires additional testing. The additional testing is more involved and can be best explained by an attorney. Should you not qualify, you can apply for Chapter 13.

With a Chapter 13 bankruptcy, you pay back a percentage of your debt. The remainder is discharged through the bankruptcy process. The amount you pay is dependent on several factors.

You make a monthly payment to a trustee who distributes the monies to your creditors. This lasts for 3-5 years according to circumstances. The plan you and your attorney craft determine your monthly payment amount.

You file the plan with the court and it is subject to approval. Once confirmed, you and your creditors must follow the plan. The entire process is overseen by the court and your attorney.

There are five qualifiers to file Chapter 13:

1. Your Income Is Too High to Qualify for Chapter 7

The Chapter 13 Means Test calculation considers two numbers. These are your required plan payment and the percentage of debt you must pay back.
When your annual income exceeds the median income for your household size, you’re required to be in the Chapter 13 plan for five years.

2. You Can Lose Property in Chapter 7 Due to Unprotected Equity

This allows you to keep your property, even if you would have lost it under Chapter 7 bankruptcy. In that case, you still pay the trustee to distribute funds to the creditors. The amount is the same as what they would’ve received under Chapter 7.

The only property you might have to turn over in Chapter 13 is a tax refund or an inheritance or personal injury award..

3. You Are Behind in Your Mortgage and Want to Keep the Property

The Chapter 13 bankruptcy allows you to get caught up with your mortgage. This also prevents the mortgage company from selling the property at a sheriff’s sale. There would be a monthly payment to the trustee.

The monthly plan payment includes paying the mortgage arrearages, plus trustee and attorney fees. Plus, you’d resume making your regular monthly mortgage payments. Depending on your county regulations, your regular mortgage fees may be rolled into your Chapter 13 plan payment.

4. You Previously Filed Chapter 7 Within the Past Eight Years

You may file a Chapter 13 bankruptcy within four years from the date that the prior Chapter 7 bankruptcy was filed. You would pay part of your debt under the Chapter 13 bankruptcy. The remaining debt would be discharged in the bankruptcy.

5. You Have Two Mortgages on Your Home and the First One Exceeds Your Home’s Value

A special action is filed when your first mortgage is greater than the value of your property. This will wipe out the second mortgage in the Chapter 13 filing.

Other Considerations

A Chapter 13 bankruptcy may include other benefits that might apply to your circumstances. For instance, you may be able to reduce the value of your vehicle to fair market value in the plan and substantially reduce the interest rate. Talk to Canton bankruptcy lawyer, Mary Lou Burns to find out more Chapter 13 bankruptcy benefits that may apply to you.

The most notable reason to hire an Ohio bankruptcy attorney in Summit and Stark County is to have a person on your side. It’s important to team with not just any person, but one with daily experience in the Akron and Canton courts.

Having a person who knows collection agency tactics will give you peace of mind. Your attorney can handle the logistics of your bankruptcy paperwork. Your attorney can also guide you through the credit reporting bureaucracy.

Expertise

We’ve all heard the terrible numbers of what happens to a person that represents themselves in court. A bankruptcy court is a unique mechanism with a lot of moving parts. It requires special expertise to keep the creditors at bay.

A full understanding of Ohio bankruptcy laws is also necessary to defend your position. You can bet the creditor will have an excellent attorney working for them. An Akron bankruptcy attorney knows the federal and local bankruptcy laws. They know what property is exempt from bankruptcy. They also know the details of filing timeframes, courtroom procedure, court etiquette, and current laws.

Selection Guidance

Having a trusted lawyer on your side can help determine if bankruptcy is right for you. The attorney can also guide you through the process and the required fiscal tests.

To prepare, an experienced Ohio bankruptcy lawyer will review your finances. They will explain your options. They’ll also give you extra non-bankruptcy options for which you might qualify.

Eliminate All Eligible Debt

The best bankruptcy lawyer will know which debts can be discharged and which bankruptcy chapter to activate.This will save you a great deal of money and guarantee you have no lingering debt after bankruptcy. For instance, a bankruptcy attorney in Akron, Ohio will know which debt is past the statute of limitations for collection and eliminate it.

Save Time

An Ohio bankruptcy attorney can save you time with shortcuts. They know the system well and can get things done quickly. They’ll also save you time from conducting a lot of research, which you’d have to do if you represent yourself.

They will already be up-to-speed with the latest bankruptcy information and changes in the law.

Disclosure Advice

The filing process requires pages of precise documentation. The details can make a difference in your positive outcome. Since the filing process is both crucial and timely, your Canton bankruptcy attorney can help you complete the paperwork.

Your lawyer will also provide legal advice on your disclosed assets, income, and expenses. Your decision-making will be based on their knowledge and experience.

Harassment Relief

Once you hire a bankruptcy lawyer and officially file your paperwork, a “stay” will be granted. This stops the creditors from calling you. You’ll be able to inform your creditors or debt collectors to contact your lawyer instead.

Your Akron bankruptcy lawyer will be able to run interference for you. This will be the first step in your relief.

Other relief comes in knowing your attorney will cover for your mistakes and prepare you for court. Your lawyer will let you know what will happen during each step of the process. Your confidence will grow knowing your attorney knows every step along the path to recovery.

They will also sit by you in a creditor meeting and see to your best outcome.

Risks of Filing without an Ohio Bankruptcy Lawyer

One mistake could destroy your future. For instance, a judge could throw out your case based on an incomplete or incorrect filing. This could block you from a second filing or release your protection from creditors.

When it comes to property you are trying to protect, an incorrect listing of assets could lead to you losing your possessions. Or, you might no longer be able to discharge certain debts.

Worse yet, committing fraud with your bankruptcy paperwork can land you in jail. Everything must be disclosed to the judge and trustee, not hidden. For instance, you cannot sign over an asset as a gift to a friend or relative with plans of them returning the gift to you at a later date.

An experienced Akron bankruptcy attorney knows how to deal with the trustee. They also know how to talk to your creditors. If you forgo an attorney, you’d be responsible for both forms of communication.

Be careful about putting yourself in an awkward position. You don’t want your communication skills to negatively impact your bankruptcy discharge. Clear and appropriate communication can make a difference in you keeping thousands of dollars.

Also, how will you respond if a creditor files a lawsuit or contests your discharge of debt? An Ohio bankruptcy lawyer knows exactly what to do in that scenario to keep your money safe.

Ohio Bankruptcy Exemptions

State bankruptcy processes differ from federal ones. Some states attempt to protect their people with more substantial forms of relief. In some states, the individual has a choice to select the federal or the state process.

When filing for bankruptcy, if you live in Ohio, you must use the Ohio bankruptcy exemptions. The good news is that Ohio has an extensive list of exemptions to help with your relief.

This does not stop you from using federal non-bankruptcy exemptions. These exemptions protect qualifying property like military retirement benefits. The below list is not an exhaustive list of exemptions, but some of the more common ones.

How Exemptions Work

Steering through the exemption list can be difficult. This is due in part to the legal language used when describing the exemptions. However, it is important to know those protections are for your benefit.

Some find it hard to look for the right combination of exemptions while their property is at risk. Instead of focusing on the fear of the process, understand that the exemptions help you. The exemptions do not hurt your goals in any way.

An experienced Canton bankruptcy attorney will explain the process and position you for success.

Think of it as a tax exemption. The more legitimate exemptions you find, the more money you get to keep. The exemption laws protect your property from creditors. this allows you to keep more of what is yours.

Once a trustee is appointed to your case, they are empowered to sell your non-exempt assets to pay down your creditors. They are not able to sell your exempt property. This can include IRAs, burial plots, etc.

The process has you turn your property over to the temporary care of the bankruptcy court. This collection of your property is referred to as your bankruptcy estate. Once done, the majority of your debt is forgiven. This includes unsecured debts like credit cards.

If the sum of your bankruptcy estate is exempt, all your debt might be discharged without having to sell off any of your assets. But exemptions can’t protect your assets if you don’t claim the exemption. This is another reason to hire an Ohio bankruptcy lawyer.

Each exemption can either protect the full value of the asset in question or up to a certain dollar amount. The specifics behind each exemption will help explain what is necessary to qualify for its coverage.

Homestead Exemption

Ohio’s homestead exemption protects a certain amount of equity in your primary home. You can protect up to $145,425 of real property that is used as your residence. Keep in mind that the exemption is attached to the amount of equity, not the market value of the residence.

If your house is valued at $425,000 and you owe $475,000, then you have zero dollars of equity and, thus, you don’t have to worry about losing your home. However, if you owe $325,000 on the house, then you have $100,000 of equity, all of which is protected because it is less than the $145,425 homestead exemption. This means the Ohio bankruptcy trustee can find no value in selling the house to pay creditors.

Real estate purchased as an investment does not have this protection. Nor does a second residence.

Wild Card Exemption

The wildcard exemption allows you to pick an asset to protect. You can claim the exemption for any single piece of personal property. This exemption is valued up to $1,325 for an individual filer.

Most people use this to keep something that is personal or sentimental from seizure and sale. Only consider this exemption after you’ve claimed all other exemptions.

Personal Property Exemption

There are separate exemptions that cover miscellaneous items like vehicles, household goods, jewelry and health care aids. The exemption has qualifying rules and a capped ceiling amount.

Married couples filing together can double their personal property exemptions.

In the case of a motor vehicle, Ohio’s exemption amount is $4,000. If your car’s Blue Book value is $9,000 and you owe $7,000, then you have $2,000 of equity that is exempt. This means the trustee will not be able to liquidate the car to pay creditors.

Miscellaneous Property Exemptions

Here is a quick list of other personal property items. The allotted exemption amount is also listed.

• Cash on hand not to exceed $500
• Household goods totaling up to $13,400 but not exceeding $625 per item (furnishings, appliances)
• Jewelry up to $1,700
• Single burial plot
• Society death benefits up to $5,000
• Awarded funds for personal injuries up to $25,175

You’ll want to get clarification on qualifying information for each of the above.

Pension Exemption

There is also an exemption covering pensions and retirement plans.

Included are 403Bs and 401Ks, IRAs, SIMPLE IRAs, Roth IRAs, SEPs, Keoghs, and ERISAs. Also covered are public employee retirement benefits. In each case, you’ll need to verify the exemption amount based on qualifying factors.

Any pension covered under federal tax exemptions is usually exempt under the Ohio bankruptcy laws.

Wage Exemption

There is a minimum of 75% of disposable weekly earnings.

An Ohio bankruptcy attorney in Akron or Canton can help you with this calculation based on your actual wages.

Benefit Exemptions

The following exemptions are available to cover public benefits.

• Worker’s compensation
• Child tax credit
• Earned income credit
• Crime victim benefits
• Vocational rehabilitation credit
• Disability assistance
• Unemployment compensation
• Public assistance

Insurance

There are several types of insurances that can be protected.

• Group life insurance policies
• Fraternal society benefits
• Disability benefits
• Life insurance proceeds for your spouse
• Other life insurance policies that prohibit payment to creditors

Alimony and Child Support

Child support and alimony (or maintenance) are considered exempt in Ohio. The only caveat is that of reason. The payments must be reasonably necessary for the ongoing support of the filer’s dependents.

Tools of the Trade

You can protect up to $2,550 of books and tools of your trade, business, or occupation. Business partnership property can also be protected.

A Canton bankruptcy lawyer will help you navigate the many exemptions. They know which ones will protect your property. The attorney can also customize the right combination of exemptions. This grouping of exemptions will save you the greatest amount of money.

Your attorney will educate you on the laws limiting and regulating bankruptcy exemptions. The attorney will also be aware of any revised codes that are beneficial to you. This will save you lots of time researching the latest laws.

Contact Akron Bankruptcy Lawyer

Relief is around the corner. The easiest way to bankruptcy relief is hiring an Ohio bankruptcy lawyer. They know how to take you through the decision-making process. They also guide you through filing Chapter 7 or Chapter 13 based on your qualifications.

Simplify your life today. Contact Canton bankruptcy lawyer, Mary Lou Burns, and take advantage of our free consultation. This meeting will educate you on the exemptions most beneficial to you.

You will also be able to discuss a practical strategy. This will include what is important to you and your goals. Ohio bankruptcy lawyer, Mary Lou Burns, will be able to consider the next steps that are best suited for your circumstances.

When people come to me to file bankruptcy, they often state that they are seeking a “fresh start.” Bankruptcy does indeed provide the fresh start that many people so desperately need, in more ways than one. Not only does the bankruptcy give people relief from their debts, it helps them to reestablish their credit. When I mention this to my clients during the consultation I often see a quizzical look.

Many people believe that bankruptcy is going to ruin their credit. In most cases, by the time someone comes to me for bankruptcy, their credit score is already low because they have stopped making payments on their debt.

So how can bankruptcy help you to reestablish credit? After you file bankruptcy, the creditors can no longer report on the discharged debt to the credit reporting agencies. Because you have no more delinquent debt on which your creditors can report to the credit reporting agencies, you are in a good position to boost your credit score.

Upon the filing of their bankruptcy, most people receive solicitations from places that are willing to lend them money. It is common to receive letters for car financing immediately after the bankruptcy is filed. Many people also obtain “secured” credit cards whereby they give money to the lender and a line of credit is established. They then charge on the card and repay the money on a regular basis. Over a relatively short period of time, the credit score can go back up by making regular on-time payments.

Although bankruptcy will remain on a person’s credit report for 10 years in the case of a Chapter 7 bankruptcy, what’s most important in the eyes of the creditor is the person’s credit score. The fact that a person has filed bankruptcy is not as important. In fact, many people find that they are in a position to qualify for home financing only 2 years after their discharge. This is because their credit score has gone back up. The bankruptcy has truly given them the Fresh Start that they deserve!

Watch our brief video to learn about Fresh Start Bankruptcy from Mary Lou Burns, Akron Bankruptcy Attorney.