Ohio Bankruptcy Resources

Tough Times in the Buckeye State

With over 9% unemployment and some of the highest foreclosure rates in the nation, some in the legal trade expect to see bankruptcy filings continue to rise through 2010 in hard-hit Ohio. Bankruptcies filed in 2008 hit record levels with over 58,000 in Ohio alone, and over 98% of those filed by consumers.    It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, the surge triggered by the foreclosure crisis and economic downturn. Debt relief agency assistance in the state is stretched beyond being able to adequately assist all debtors in desperate need of counseling and relief.

Legal Counsel Important for Ohio Bankruptcy Filings

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005.  Seek the advice of an Ohio law firm with specific long-term experience in Ohio bankruptcy matters.  Check references, if possible.  A competent Ohio attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.

The Most Common Consumer Bankruptcy Choice in Ohio

Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used.  This filing results in a fair distribution of your available nonexempt property to creditors.  Unsecured debts are generally discharged.  Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13.  Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.

Major Changes Made in 2005 Will Impact your Ohio Bankruptcy

Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:

• Required pre-bankruptcy counseling
• Strict guidelines to qualify for a Chapter 7 filing (liquidation proceeding) including a “Means Test” to determine your ability to pay debts
• Tight restrictions on repeat filers
• Random audits to verify accuracy of bankruptcy filing
• Enhanced oversight for Chapter 11 (reorganization) small business cases

Bankruptcy Alternatives in Ohio

Contact your creditors to try to work out payment arrangements that you can manage.  Contact the non-profit Consumer Credit Counseling service to get help with a manageable repayment plan.  Sell as many assets as you can and pay down your debt to a manageable level.  Debt consolidation may be considered, but approach this option with caution to make sure it actually helps your situation.

Final Words on Ohio Bankruptcy

Ohio residents continue to suffer, as the State’s economy struggles to recover.  If you are considering filing for bankruptcy in Ohio, decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings.  Although some filers elect to handle their bankruptcy on their own, The U.S. Bankruptcy Court cautions that“Bankruptcy has long-term financial and legal consequences -- hiring a competent attorney is strongly recommended."Click here to find Ohio attorney resources in your area. 

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Ohio.