top of page

Ohio Bankruptcy Law | Everything You Should Know.

Updated: Nov 26, 2022

Personal bankruptcy is a legal process that offers debt relief for individuals who are unable to repay their debts. There are two types of personal bankruptcy: Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, also known as liquidation bankruptcy, the court appoints a trustee to sell the debtor's non-exempt assets and use the proceeds to pay creditors. In Chapter 13 bankruptcy, also known as reorganization bankruptcy, the debtor proposes a repayment plan to the court that includes repayment of all or some of the debt over a period of three to five years. After the completion of the repayment plan, any remaining dischargeable debt is discharged. Although personal bankruptcy can be a helpful solution for those struggling with debt, it is important to understand that it is not right for everyone. Before filing for bankruptcy, it is advisable to speak with a qualified bankruptcy attorney to evaluate all of your options.

Before You File for Bankruptcy

Filing for bankruptcy can be a difficult decision to make. It can have a major impact on your financial future and your ability to obtain credit. Before you decide to file for bankruptcy, there are a few things you should try. First, you should try to work with your creditors to create a repayment plan that works for both of you. This may involve making some sacrifices, such as giving up your car or reducing your monthly expenses, but it can help you avoid bankruptcy. You should also try to consolidate your debts into one monthly payment that you can afford. This can help you get out of debt without having to file for bankruptcy. Finally, if all else fails, you may want to consider filing for bankruptcy. This option should be considered as a last resort, but it may be the best way to get out of debt and start fresh.

Before Filing for Bankruptcy You May Want to Try:

  1. Seeking Other Debt Relief Options.

  2. Refinancing Your Car or Other Loans.

  3. Consolidating Debt.

  4. Seeking Auto Loan Debt Relief.

  5. Lowering Your Bills.


Chapter 13 Bankruptcy In Ohio

Individuals who have lost their job or are facing mounting medical bills may find themselves struggling to keep up with their debts. In these situations, filing forChapter 7 bankruptcy can provide much-needed relief. Chapter 7 bankruptcy allows individuals to discharge their debts, giving them a fresh start. In order to qualify for Chapter 7 bankruptcy, individuals must pass a means test. This test takes into account the individual's income and expenses, as well as any exempt assets. If the individual has enough disposable income to repay their debts, they may not be eligible for Chapter 7 bankruptcy relief. However, if the individual does not have enough disposable income to repay their debts, Chapter 7 bankruptcy may be the best option. By wiping out their debts, individuals can get a fresh start and begin rebuilt their financial future.

Chapter 7 Bankruptcy- This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors."- United States Courts

Chapter 13 Bankruptcy In Ohio

Chapter 13 bankruptcy is one option for individuals who are struggling to repay their debts. Unlike chapter 7 bankruptcy, which involves the liquidation of assets, chapter 13 bankruptcy allows filers to restructure their debts and create a repayment plan. In order to qualify for chapter 13 bankruptcy, an individual must have a regular income and sufficient disposable income to cover the payments on their debts. Additionally, the total amount of debt owed must be below a certain threshold. Because of these requirements, chapter 13 bankruptcy is generally only an option for those with a steady income and a relatively manageable amount of debt. However, for those who do qualify, chapter 13 bankruptcy can provide much-needed relief from creditors and help filers get back on track financially.

Chapter 13 Bankruptcy- This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years. -United States Courts

How to File for Bankruptcy in Ohio

Filing for bankruptcy is a tough decision, but sometimes it's the best option. If you're considering filing for bankruptcy in Ohio, there are a few things you need to know. First, you need to Decide if You Qualify. You can only file for bankruptcy if you meet certain criteria. For example, you must have a regular income and be unable to pay your debts. If you qualify, the next step is to Choose the Type of Bankruptcy. There are two types of bankruptcy: Chapter 7 and Chapter 13. Each has its own requirements and benefits, so it's important to choose the right one for your situation. Finally, you need to File the Papers. This can be done online or in person at your local courthouse. Once you've completed all the required paperwork, your bankruptcy will be finalized and you can start fresh.

Bankruptcy Steps Checklist from Nolo

  1. Research Chapters 7 and 13

  2. Ensure bankruptcy will erase debt

  3. Find out if you can keep your property

  4. Determine if you qualify

  5. Consider hiring a bankruptcy lawyer

  6. Stop paying qualifying debts

  7. Gather necessary documents

  8. Take a credit counseling course

  9. Fill out and file the paperwork

  10. Turn over financial documents

  11. Attend the 341 creditor's meeting

  12. Attend the confirmation hearing and make plan payments (Chapter 13 only)

  13. File a debtor's education course certificate

  14. Receive your debt discharge

Get Your Free Bankruptcy Consultation from Curadebt.

Who Qualifies for Bankruptcy in Ohio

There are a number of different factors that will affect who qualifies for bankruptcy in Ohio. The first is the type of bankruptcy that you are filing for. There are two main types of bankruptcy- Chapter 7 and Chapter 13. Each type has different eligibility requirements. For example, to qualify for Chapter 7 bankruptcy, you must pass a means test which looks at your income and debts to determine if you can repay your debts. If you do not pass the means test, you may still be able to qualify for Chapter 13 bankruptcy. Another factor that will affect who qualifies for bankruptcy is the type of debt that you have. Certain types of debts, such as child support or alimony, cannot be discharged in bankruptcy. Lastly, the court will also look at your financial history to see if you have filed for bankruptcy in the past. If you have, it is less likely that you will be able to qualify for bankruptcy again.

Hiring a Bankruptcy Lawyer in Ohio

It's important to understand all of your options and what declaring bankruptcy will mean for your future before making a decision. If you're considering declaring bankruptcy in Ohio, one of your first steps should be to hire a bankruptcy lawyer. A bankruptcy lawyer can help you understand the bankruptcy process and what it will mean for your specific situation. They can also help you navigate the paperwork and ensure that everything is filed correctly. In addition, a bankruptcy lawyer can offer guidance and support throughout the entire process. Declaring bankruptcy is a big decision, but with the help of a bankruptcy lawyer, you can make sure that it's the right decision for you. If you are considering filing for bankruptcy, you may want to start with a free consultation from a service like Curadebt.


Ohio Bankruptcy Exemptions

When it comes to bankruptcy, each state has its own set of laws and regulations. This can make the process of filing for bankruptcy slightly different depending on which state you live in. If you reside in the state of Ohio, there are certain Ohio bankruptcy exemptions that you should be aware of. These exemptions can help to protect your assets and property during the bankruptcy process. For example, some common Ohio bankruptcy exemptions include the homestead exemption, which helps to protect your home equity, and the vehicle exemption, which can help to protect your car or truck. There are also exemptions for certain types of personal property, such as jewelry and clothing. By familiarizing yourself with the Ohio bankruptcy exemptions, you can help to ensure that your assets are protected during this difficult time.

Exemption information quoted from

Homestead Exemption

You will be allowed to exempt up to $145,425 of your equity in one piece of property you use as a residence. If you file with your spouse and file jointly, that lets you protect up to $290,850 from your creditors. The exemption amount applies to houses, condos, manufactured homes, or mobile homes.

Wild Card Exemption

This protects up to $1,250 of the value of any property you choose. You can use it to protect something not covered by the other exemptions or add it to another exemption to increase the exempt amount. However, this exemption cannot be applied to real estate.

Exemptions on Personal Property

You can get an exception on the following personal property types in Ohio According:

  • $500 in cash.

  • $13,400 in household goods up to a maximum of $625 for each item. This applies to furniture and appliances.

  • $4,000 for one vehicle.

  • $1,700 of jewelry.

  • $25,175 of personal injury award (If received in the 12 months before filing.

  • Your interest in one burial plot.

Ohio Wage Exemption

You can exempt the higher amount of either 75 percent of your "disposable" income or 30 times the federal minimum wage. Your disposable income is your total earnings less payroll taxes and qualified bankruptcy expenses.

Ohio Tools of the Trade Exemption

Up to $2,550 of the value of tools of your trade, business, or occupation. This includes books, instruments, and other items you use to make a living.

Pension Exemption

Most types of retirement benefits are exempt in Ohio, including:

  • Tax-exempt retirement accounts like your 401(k) or profit-sharing plan.

  • IRAs and Roth IRAs

  • Private pensions

  • Benefits through the state teacher retirement system

Ohio Spouse and Child Support Exemption

Any reasonably necessary payments you receive for spousal or child support are exempt.

Ohio Public Benefits Exemption

Most state and federal benefits are exempt in bankruptcy, including:

  • Unemployment compensation

  • Earned income and child tax credits

  • Workers' compensation

  • Disability assistance payments

  • Crime victim's compensation that you received in the 12 months before filing

Ohio Miscellaneous Exemptions

Other commonly used exemptions include:

  • 529 college savings plans.

  • Business partnership property.

  • Benevolent society death benefits of up to $5,000.

  • Group life insurance policies or proceeds.

  • Life, endowment, or annuity contracts for your spouse, child, or other dependents.

Read more about Ohio Exemptions on


Ohio Auto Loans After Bankruptcy

While bankruptcy can stay on your credit report for up to 10 years, it is possible to get an auto loan after bankruptcy. The key is to rebuild your credit and demonstrate that you're a responsible borrower. Start by getting a copy of your credit report and making sure that all the information is accurate. Then, begin making all your payments on time and maintaining a good credit history. You may also want to consider paying off any outstanding debts. Once you have reestablished your credit, you should be able to qualify for an auto loan. Bankruptcy can be a challenging obstacle to overcome, but with perseverance and financial discipline, it is possible to get a loan and purchase a car.

Compare Auto Loan Offers Online

bottom of page