Ohio Chapter 7 Bankruptcy Law
Filing for Chapter 7 bankruptcy can be a frightening experience, particularly if you're planning to file without the aid of an attorney. While the U.S. Bankruptcy Code sets forth specific regulations governing bankruptcy petitions, each state has its own local rules that must also be followed. In Ohio, the local rules for filing bankruptcy are governed by the northern and southern district courts.
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The Means Test
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The means test is the method by which the court determines that you are eligible to file Chapter 7 bankruptcy. You must submit income statements for the previous six months to the court, which will then be considered using the state's median income limit. If your income falls below the state median for your family size, you may be eligible to file for Chapter 7. The median income limits in Ohio are $41,873 for a single individual, $52,216 for a family of two, $61,772 for a family of three and $73,301 for a family of four or larger.
Required Counseling
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The U.S. Bankruptcy Code requires you attend mandatory credit counseling at least six months prior to filing your bankruptcy case. The state of Ohio also requires that you complete a course in financial management within 45 days of your initial meeting with the bankruptcy trustee, who will oversee the disposition of your case.
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Filing
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At the time the initial Chapter 7 petition is filed, petitioners must also submit a statement of financial affairs along with all required supporting documentation, including a list of assets and liabilities, credit counseling certification and a complete list of creditor contact information. In Ohio, petitioners are responsible for ensuring that all creditors are served with notice of their filing. This may be done independently or by paying the Clerk of Court a fee to make the required number of copies and serve them. Petitioners must also pay the required filing fee, or if they are unable to pay, they may file a motion with the court to have their filing fee waived.
Exemptions
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Every state allows you to claim certain assets and property as exempt. In Ohio, you can exempt up to $20,200 worth of equity in your home, $3,225 in vehicle equity, up to $400 in cash, personal and household items up to $10,775, tools of trade in the amount of $2,025, personal injury awards up to $20,200, miscellaneous property in the amount of $1,075, alimony and child support payments, life insurance policies and proceeds and up to 75 percent of wages due for 30 days.
Meeting of Creditors
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The 341 meeting, or meeting of creditors, is the final step prior to your bankruptcy case being discharged. The meeting of creditors is essentially a question-and-answer session in which your creditors or the bankruptcy trustee can ask you questions regarding your financial situation. If a new issue or discrepancy is raised, the creditor or trustee can petition the court for a hearing on the related issue. If no new issues are raised, the court will typically discharge your bankruptcy case within 90 days of the meeting of creditors.
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