A Guide on Filing Bankruptcy in Ohio Under Chapter 7 and Chapter 13

Should a person file bankruptcy? This a personal decision greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve wracking for starters. Secondly, the decision to file should not be made solely to stop demanding creditors. Though filing temporarily stops creditors from engaging in out-and-out enforcement lawsuits, secured creditors can apply for "relief from the stay" and then continue their efforts to repossess or foreclose. Furthermore certain kinds of debts among them, student loans, alimony and support obligations, drunken driving restitution, and debts incurred through fraud can't be discharged in bankruptcy.

Depending on your circumstances, bankruptcy may or may not make sense for you. If after the bankruptcy you will be no better off than you were before, why do it? The decision as to whether and when to file a bankruptcy petition should be based upon the facts of your individual case.

New bankruptcy laws are expected to limit the value of the homestead exemptions. Also, new Ch. 7 restrictions will prevent anyone earning over the state median income from filing, Ch. 13 payments will be increased, and judges will lose judicial discretion imposing mandatory sanctions upon debtors in many new circumstances. These new laws narrowly missed passage each year since 2001, and may become effective at any time. Now, more than ever, timing and planning are critical.

Most Ohio bankruptcy attorneys who special in consumer/debtor cases offer free initial consultations. Virtually all private attorneys welcome opportunities to meet qualified potential clients. After debtors become familiar with current requirements, initial consultations offer an excellent opportunity to explore options and receive free legal advice, before deciding upon any course of action. If you have considered filing, make a detailed list of questions. Meet with several lawyers. By comparing costs, benefits and options without obligation, your most profitable path will become clear.