Ohio Chapter 7 Bankruptcy

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Ohio Chapter 7 Bankruptcy Suggestions on Chapter 7 Bankruptcy if you are an Ohio Resident

Ohio Chapter 7 Bankruptcy Dayton OhioBasics for Buckeyes:

The Means Test

Assuming a debtor has passed the silly, credit-card industry imposed, sycophantically enacted “means-test,” that debtor can file a case under 11 USC 7, or Chapter 7, of the Bankruptcy code. A debtor needs to make, in the six months prior to the filing, less than the State’s median household income for a family of like size.

Assets v. Liabilities

In a Chapter 7 liquidation case a Bankruptcy court hires a private lawyer called a trustee, who evaluates the assets and liabilities in an estate to decide if it is possible to sell the assets and pay the resulting proceeds to unsecured creditors. Most Chapter 7 debtors have no assets to sell. Those cases are called “no asset” cases. Once a trustee has evaluated the case and made distributions or declared a “no asset” status, the debtor receive a “discharge” from responsibility for the debts.

Keeping Stuff

Bankruptcy lawyers use something called “exemptions” permitted by the State of Ohio, to secure equity in property to be considered as salable assets. Ohioans can keep

  • $20,200 of a home,
  • $3,225 in one auto
  • $400 cash,
  • $20,200 of an injury award,
  • $10,775 of personal property,
  • $1,350 of jewelry, like wedding rings,
  • $2,025 in tools of trade, and a “wild card” of $1,075 toward any personal property.

Hi There.

  • Both Chapter 13 and Chapter 7 require a “meeting of creditors,” or a “341 meeting.
  • This fulfills the due process requirement of the Constitution by allowing creditors an opportunity to appear and be heard before the Federal Government extinguishes their rights to collect on duly formed contracts.
  • At that meeting, the trustee also questions the debtor as to the nature and extent of his or her estate.
  • Practically speaking, unsecured creditors rarely show up; the meetings often last less than ten minutes.

Dedicated To The One I Loved

Some debtors choose Chapter 7 after a divorce, because Chapter 7 can remove “community debt.” Divorcees often want to be rid of debts incurred in the failed relationship, and Chapter 7, in addition to eliminating responsibility for that debt, has the added benefit of schadenfreude and petty revenge: it leaves responsibility for the joint debts squarely on the plate of the non-filing ex.

Sometimes, You Just Gotta Pay

However, not all debts are dischargeable in ChapterĀ 7 in Ohio, debtors can’t get from under:

  • debts owed for domestic support,
  • some kinds of taxes,
  • awards for or death or injury related to drunk driving,
  • student loans,
  • criminal fines, penalties & court costs, or,
  • undischargeable debts from a prior bankruptcy case.

Budgeting Wasn’t The Problem, Moving Your Job To China Was

  • Part of the disastrous, ill-considered and poorly drafted 2005 BAPCPA “reform,” was to make Chapter 7 more humiliating for debtors.
  • To that end, debtors in Chapter 7 cases must now complete two trustee approved “debtor education” classes: one prior to filing and one after the 341 “meeting of creditors.”
  • In Chapter 7 cases, the classes are usually conducted online or over the phone, and cover such weighty, uncommonly understood matters as ledger keeping, budgeting and living within one’s means.

All quite helpful for people suffering job loss, medical catastrophe, or reset ARMs foisted on them by predatory lenders, don’t you think?