Ohio State Bankruptcy Laws
The three primary differences in bankruptcy among the states are the local rules of the Bankruptcy Districts, the median income for the means test, and the property exemptions. Each bankruptcy district has its own local rules for the precise procedure for filing documents, paying fees and calculating deadlines. The means test is based on the state median income, which determines the chapter under which a debtor can file. Finally, each state has the option of using standard federal property exemptions or creating its own exemptions.
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Identification
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The U.S. Constitution gives the federal government jurisdiction over bankruptcy. Each state has at least one federal Bankruptcy Court District, and Ohio has two. The Northern District of Ohio has divisional offices in Toledo, Akron. Cleveland, Canton and Youngstown. The Southern District has offices in Dayton, Columbus and Cincinnati. For the addresses of these particular locations, see the links to the court's Web pages in the Additional Resources section below.
Means Test
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The Chapter 7 means test is based on median annual income by household size. To pass, a debtor must have an annualized monthly income below the official median for their household size published by the U.S. Census Bureau. In 2009 the median income for a single wage earner in Ohio was $42,458; for a family of two, $52,922; for three, $62,251; and for four, $74,234. For each additional member of a household in excess of four, the debtor adds $6,900 to calculate the median income.
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Filing
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Both districts in Ohio accept electronic filing; it is mandatory in the Southern District. The Northern District accepts printed, typed or handwritten filings and expects an original plus three copies on standard 8.5-by-11-inch paper. Both districts have specific requirements for the case matrix, the document that contains the names and addresses of all the creditors. The details, though they vary between the districts, include acceptable fonts, type size and number of characters per line.
Fees
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Fees are due at the time of filing in both Ohio districts unless the petitioner files for either a fee waiver, in the case of hardship, or the right to pay with installments. No installment may be less than $30 in the Southern District. Neither district accepts personal checks. The Northern District does not accept credit cards or third party checks, while the Southern District requires approval for use of a credit card to pay filing fees and does take law firm and trustee's checks. The fee for filing a new consumer bankruptcy (Chapter 7 or 13) in Ohio ranges from $245 to $299.
Exemptions
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Ohio does not allow bankruptcy debtors to claim federal exemptions. Instead, the state's exemptions include $5,000 for a residence, $600 in monthly disability benefits, life insurance proceeds for a spouse, alimony, child support, property of a business partnership, most pensions and various forms of public benefits such as worker's compensation, unemployment and crime victim's compensation. The personal property that can be exempted, to a total of $1,500 or $2,000 if no homestead exemption is claimed, includes animals, crops, books, musical instruments, household goods and appliances, furniture, firearms and fishing gear (up to $200 per item, or up to $400 for one item of jewelry). At least 75 percent of disposable weekly earnings can be exempt, and there's an additional wild card exemption of $400 applicable to any property.
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References
Resources
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