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Personal Bankruptcy Lawyer Serving Ohio

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Ohio Bankruptcy Lawyer

The term “bankruptcy” may sound frightening to some people, but it’s often the first step toward renewed financial health. When you and your family can no longer afford your debts, bankruptcy may be a favorable option.

Bankruptcy allows you to lessen the crushing weight of debt. Bankruptcy can give you and your family a fresh start.

Bankruptcy is often considered a drastic step to get your finances under control. But the process for filing for bankruptcy is complex.

That’s why you should have an experienced and compassionate personal bankruptcy attorney on your side:

  • An attorney can help you explore whether bankruptcy is your best option.
  • An attorney can ensure that your bankruptcy petition proceeds as smoothly as possible.

Contact Amourgis & Associates, Attorneys at Law, today to speak to one of our Ohio bankruptcy lawyers about your rights and options. We offer a free initial consultation. You can learn more about how our firm can help you resolve your debts and financial difficulties.

Types of Bankruptcies in Ohio

Individuals generally have two types of bankruptcy that they can choose from – Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7

Chapter 7 bankruptcy is known as a “liquidation” bankruptcy. In this bankruptcy process, the debtor’s non-exempt property is sold off. The proceeds are distributed to the debtor’s creditors under a plan that is set up by a bankruptcy trustee and approved by the court.

A debtor seeking Chapter 7 bankruptcy is usually insolvent. Creditors typically receive less than the full amount of the debt they’re owed. At the conclusion of the bankruptcy, all remaining dischargeable debts are discharged by the bankruptcy court. The debtor can keep certain exempt assets. Those assets include a primary residence, household goods, a vehicle (up to a certain value) and retirement accounts.

Chapter 13

Chapter 13 bankruptcy is known as a “reorganization.” A debtor in Chapter 13 bankruptcy prepares a repayment plan that must be approved by the court. Under that plan, the debtor proposes to use any disposable income and assets to pay off all or a portion of debt over a three to five-year period.

The payments are made to the bankruptcy trustee. The trustee then distributes those funds to creditors. After the debtor complies with the repayment plan, the court discharges any remaining dischargeable debts at the end of the plan period.

Chapter 11

Organizations often file for Chapter 11 bankruptcy when they are unable to meet their debt obligations but still want to find a way to keep their businesses afloat. Chapter 11 bankruptcy is also known as “reorganization” bankruptcy because it allows filers to restructure their debts into more manageable payments, pay creditors over time, and avoid losing their assets.

How to File Bankruptcy in Ohio

Filing for bankruptcy in Ohio involves multiple steps. That is one reason to have an experienced lawyer on your side.

Document Your Income

Before you file anything in court, you must collect the financial records that document your income, your assets, and your debts. These income documents may include:

  • Your pay stubs for at least the last two months
  • Income statements from businesses you operate
  • Your state and federal income tax returns for at least the last two years.

Document Your Assets

You’ll also need to produce documents for your assets. Those documents may include:

  • Bank statements
  • Brokerage account statements
  • The deed to your home
  • Titles to vehicles, boats, or airplanes
  • Any financial instruments you own, such as annuities or life insurance policies.

Document Your Creditors

Finally, you’ll need to put together a list of all your creditors and how much you owe each creditor. These debts may include:

  • Mortgages
  • Car loans
  • Student loans
  • Personal loans
  • Unpaid medical bills
  • Credit card debt

Credit Counseling Course

After you have a full picture of your financial situation, Ohio bankruptcy law requires you to complete a mandatory credit counseling course. The course, which is taken prior to filing for bankruptcy, helps you avoid more serious financial problems in the future.

Petition Forms

After you complete credit counseling, you can file for bankruptcy using the petition forms provided by the bankruptcy court. Each local bankruptcy court in Ohio has its own required forms in addition to the standard petition forms. Make sure you use the correct forms for the court you are using. Filing a bankruptcy petition also carries a filing fee. You must pay that fee unless your income is less than 150 percent of the federal poverty line.

Bankruptcy Trustee

Once your petition is filed with the court, your case will be assigned to a bankruptcy trustee who will oversee your case. The trustee may request additional financial documents and information from you. Ohio bankruptcy law also requires you to take a second credit and bankruptcy counseling course after your petition is filed but before your bankruptcy hearing.

Bankruptcy Hearing

Your bankruptcy case will include at least one hearing, also known as a meeting of creditors. At this hearing, the trustee will confirm the information in your petition. The trustee may identify errors in the petition and ask you to submit an amended petition to correct those errors. Your creditors may attend the hearing and object to having their debts discharged by your bankruptcy.

Discharge of Debt

Once any objections to your bankruptcy are satisfied, if you filed for Chapter 7 bankruptcy, your assets will be liquidated, and the proceeds used to pay your creditors. Ultimately, the bankruptcy court will issue an order discharging your remaining debt.

If you filed for Chapter 13 bankruptcy, the court will approve a repayment plan. If you successfully complete the plan, the court will discharge any remaining debt at its conclusion.

Debts That Can Be Eliminated

Many people are unclear about the types of debt that can be eliminated in bankruptcy.

The types of debt that can be discharged in personal bankruptcy include:

  • Most lawsuits & garnishments
  • Credit card debts
  • Medical bills
  • Utility bills
  • Repossessions
  • Loans (including “payday” loans)
  • Driver’s license suspensions and reinstatement fees
  • Foreclosures
  • Mortgages and mortgage loan deficiencies
  • Tax debts
  • Judgments and liens

Certain types of debt, such as student loan debt or child support arrears, cannot be discharged in bankruptcy.

Bankruptcy Myths and Facts

Many people are unaware that bankruptcy is a right given to every U.S. resident through the United States Constitution. If you are considering bankruptcy, it is essential that you have the knowledge that helps you make informed decisions about your financial future.

  • Myth: A bankruptcy filing will ruin my credit for good.
    Fact: After filing bankruptcy, you will wipe out most if not all of your debts. That may make you a better candidate to obtain credit from future lenders and creditors. They will know you can make the payments on your new debts.
  • Myth: Bankruptcy law changed a few years ago, and I am no longer eligible for that
    Fact: Almost all of the provisions that were available through bankruptcy before 2005 survive in today’s Bankruptcy Code.
  • Myth: You can’t file bankruptcy if you have a job.
    Fact: Bankruptcy relief is available to the employed AND unemployed. In fact, if you’re employed, bankruptcy can often stop wage garnishments.
  • Myth: You’ll never be able to purchase a car if you file for bankruptcy.
    Fact: Many clients are able to finance and purchase vehicles immediately after filing. Many dealerships now look for people who filed for bankruptcy since they know those people can afford to pay them.
  • Myth: I’ll lose all my property in bankruptcy.
    Fact: Most of your possessions are protected from bankruptcy liquidation. That includes your home, your car and your household goods. Many bankruptcy cases are “no asset” cases. That means the debtor keeps everything.
  • Myth: Credit cards can’t be discharged in bankruptcy.
    Fact: Almost all unsecured debts such as credit cards, personal loans and medical bills can be discharged in bankruptcy.
  • Myth: My credit won’t improve for 8-10 years.
    Fact: People who file bankruptcy often see a dramatic increase in their credit score. The reason: they no longer have any debt. It is more troubling to creditors when they see lawsuits or debts in collections on your report. Those creditors know you must repay those debts before you can pay a new creditor.

Famous Bankruptcy Filers

What do Mark Twain, Willie Nelson and Henry Ford have in common? When they faced financial hardship due to medical issues, unemployment or a bad economy, they all used bankruptcy law to protect themselves from overzealous creditors. Bankruptcy is as old as our country, and it can be used by any of us for financial protection.

Political and business leaders, including Abraham Lincoln and Walt Disney, have filed for protection under the Bankruptcy Code. Other famous bankruptcy filers include:

  • Benedict Arnold
  • Kim Bassinger
  • George Clinton
  • Zsa Zsa Gabor
  • Marvin Gaye
  • Ulysses S. Grant
  • MC Hammer
  • Milton Snavely Hershey
  • Larry King
  • Jerry Lee Lewis
  • Abraham Lincoln
  • Meat Loaf
  • Willie Nelson
  • Wayne Newton
  • Tom Petty
  • Burt Reynolds
  • Lawrence Taylor
  • Mike Tyson
  • Henry John Heinz
  • Henry Ford

Frequently Asked Questions


The primary difference between a Chapter 7 and Chapter 13 bankruptcy involves how a debtor’s debts are paid off during the bankruptcy process.

In Chapter 7, the debtor’s estate is largely liquidated. The money from the liquidation is used to pay off as much of the debt as is owed to creditors.

In a Chapter 13 bankruptcy, the debtor usually does not liquidate large portions of the estate. Instead, the debtor comes up with a plan to pay off all or a substantial portion of debts within a three to five-year period. Ultimately, filers for Chapter 13 bankruptcy get to keep more of their property. Creditors recover more money on the debts they’re owed.

Under Ohio law, you may exempt the following property from bankruptcy:

  • Up to $145,425 in home equity.
  • Up to $4,000 of value in a motor vehicle.
  • Up to $500 of cash on hand or on deposit.
  • Household items worth less than $625, up to an aggregate total of goods worth
  • Up to $1,700 in jewelry.
  • Up to $2,550 in property used for your job or business.
  • Up to $25,175 in personal injury lawsuit compensation.
  • Up to 75 percent of your wages.
  • The full amount of your life insurance policy.
  • The full value of your burial plot.
  • The full amount of your workers’ compensation benefits.
  • The full amount of unemployment benefits.
  • The full value of your retirement plans or accounts.
  • Up to $1,325 of value in any property you choose. The amount can be added on to other exemptions or used to protect property that is not otherwise exempt.

The Ohio bankruptcy means test determines your eligibility to file for Chapter 7 bankruptcy when your annual household income exceeds the median income for a household of similar size in Ohio. The means test allows you to prove to the court that your disposable income cannot satisfy a repayment plan under Chapter 13 bankruptcy.

Under the means test, you add up all your sources of income, including wages, business
income, interest and dividends, pension, retirement benefits, alimony, child support, workers’ compensation and unemployment benefits. You then subtract allowable expenses from your average monthly income, such as housing costs, transportation costs, food, utilities, health insurance, and out-of-pocket medical costs.

If your monthly income for the next 60 months will not exceed $7,475, you pass the means test. If it exceeds $12,475, you fail the means test. If your monthly income falls between these amounts, you’ll need to calculate whether you have sufficient income to pay at least 25 percent of your unsecured debts over the next five years.

Although you’re not required to hire an attorney to file for bankruptcy, it is not recommended that you proceed to bankruptcy without legal assistance. A bankruptcy attorney can help you explore alternatives to bankruptcy that may have a less drastic impact on your personal finances.

If bankruptcy proves to be your best option, an attorney can make sure that your petition and court filings are filled out correctly and filed on time. Making a mistake in your bankruptcy filings can lead to the dismissal of your case, the loss of important rights and bankruptcy protections, or the imposition of fines and fees.

You should hire us because we have the knowledge, experience and resources in order to get the get you the resolution you need. We’ve been practicing law since the 20th century and we’ve grown to understand that we need to provide real solutions for real people. And that’s exactly what we want to do for you.

There’s no magic number on how much money how much debt you have to have to file bankruptcy in Ohio. But we advise that it is somewhere between $4,000 to $5,000 or more because the costs to file a bankruptcy claim in Ohio are anywhere from $400 and up

It depends on what type of bankruptcy you’re filing. In Ohio, in Chapter 7 the time period is usually a three to six months. Time period in a Chapter 13, which is a repayment plan, over a three to five year period

In Ohio, you can file a Chapter 7 bankruptcy every eight years. Read more about Chapter 7 bankruptcy from our experienced lawyers on our website!

If you call our Ohio personal bankruptcy lawyers, we can help you determine whether bankruptcy is the right option for you.

One way to determine whether bankruptcy is right for you is to look at your circumstances. If you have, you know, garnishments, repossessions, bank attachments, lawsuits, utility disconnections evictions, you’re either being evicted, or you feel the threat of an eviction foreclosure, either as a foreclosure or foreclosure is coming down the pipe to other areas are if your car payment is too high, and you feel like you just can’t make that car payment. Possibly bankruptcy is a way to get you out of that and ultimately a more affordable car. Another issue is if you have car problems, or if you’re starting to have problems with your car, and you still have a really high balance left on your car. That’s another option where we’re bankruptcy could be good for you. credit cards, credit card debt, medical debt, you know, payday loans, any other kinds of unsecured loans, high-interest loans, there’s definitely a way to get you some breathing room or get you the relief that you need based on your circumstances. So, definitely contact our law firm we can go through your particular circumstances.

If you have a good bankruptcy attorney 99% of the Chapter 7 claims that are filed will go through. Now, if you don’t have a bankruptcy attorney and try to represent yourself there’s a high probability of failure. I’d say more like 5% of the cases would go through successfully. There’s a lot of pitfalls. It’s not something I would recommend.

How much does it cost to file for bankruptcy in Ohio?

How much it costs to file bankruptcy in Ohio depends on what part of Ohio you live in and what Chapter bankruptcy you’re going to be filing. The costs range anywhere from $400 to $600, normally.

Can I file bankruptcy on medical bills in Ohio?

You can definitely file bankruptcy on medical bills in Ohio. Actually, medical bills are a major cause of bankruptcy filings. As you’re aware over the last several years, medical costs have gone up. You know, all it takes is a lot of times one unexpected surgery to cause financial devastation to someone or someone in their family.

Can I keep my cell phone in Chapter 7 bankruptcy?

You can definitely keep your cell phone after filing Chapter 7. However, you know, you can keep your cell phone keep making the payments on the cell phone pursuant to the contract that you’re in for your cell phone. Or you also have the option to get rid of the cell phone, wipe it out, and get yourself another cell phone. If you have a cell phone bill where you know you owe $1,000-$1,500 and want to get out of that and get yourself a different phone, you have that option too.

What shouldn’t I do before filing bankruptcy?

Some of the things that you shouldn’t do before filing bankruptcy are;

Don’t lie about your assets or your income. If you’re trying to hide assets or you know, misrepresent what your income is, the bankruptcy court and the trustees are going to find out, and then there’s going to be serious repercussions. A lot of times, your case will get dismissed, and those debts that you listed on your bankruptcy will be non-dischargeable forever.

Another thing is that you shouldn’t do is I wouldn’t recommend filing bankruptcy on your own. Filing bankruptcy without an attorney is something you shouldn’t do. I would definitely recommend consulting with an personal bankruptcy attorney before filing a bankruptcy.

Also, don’t run up your credit cards prior to filing bankruptcy. If you run up your credit card debt prior to filing bankruptcy, any credit card debt that you have that you’ve incurred within 90 days of the filing is something that can be disputed and objected to by the credit card companies. So you may end up paying all that credit card debt back if you try to use up your credit limit right before filing.

Don’t incur any new debt unless absolutely necessary before filing your case. A good example of that is your car dies, right? You have to get another car loan. That’s something you can avoid. You have to get that car loan and do that but don’t go out and get a personal loan, an unsecured loan to try to pay some things or you know, put some money in the bank as a result of that loan.

Is my 401k money safe during bankruptcy?

401k money is 100% protected, the court cannot touch your 401k.

It’s 100% protected unless you take it out of the 401k. If you withdraw the money out of the 401k and put it in your bank, it’s no longer protected. It’s something that the bankruptcy court can get their hands on if it’s not properly protected. And another major thing not to do prior to filing is don’t transfer any assets to family or friends prior to filing your case. A lot of people think, you know, they own real estate or they have cars, and they think “hey, before filing my case, I’m going to transfer that out of my name into my friend’s name or family’s name”. And if you do that, again, it’s something that you’re most people’s houses, most people’s cars are 100% protected, but as they start to try to transfer things prior to filing, it can make a protected asset all of a sudden become an unprotected asset and something you could lose in the bankruptcy court.

How long does it take to rebuild credit after filing for Chapter 7 bankruptcy?

You can start rebuilding your credit right away after an Ohio Chapter 7 bankruptcy filing. That’s why they call it a “fresh start bankruptcy” because you’re gonna get credit card offers in the mail car loan offers in the mail. You’ll also most of our clients. For example, chapter 7 clients can file a bankruptcy and within six months to a year after the bankruptcy, their credit score goes up 50 to 150 points. That’s most of our clients, you can definitely achieve a credit score of 700 or higher within two years of the bankruptcy filing. If you don’t own a home and you want to buy a home, a bankruptcy can help you with that. You can usually buy a home within two years of the chapter 7 bankruptcy discharge.

What Should I do Before I File for Chapter 7 Bankruptcy?

  1. One of the things you should do before filing bankruptcy is take your credit counseling course. That’s one requirement for a bankruptcy filing. It’s a telephone course. It’s something that you can register for a nominal cost. It’s just listening to a recorded voice about debt credit and budgeting. It’s usually about an hour long. That’s one thing you have to do before filing your case.
  2. Another thing you should consider doing prior to filing your case is gathering your financial documents, your pay stubs, your bank statements, your tax returns, all those things that you’re going to want to share with your attorney during the consultation or shortly after the consultation.
  3. Consider opening a new bank account, if you have creditors, a lot of times people have creditors who are taking automatic payments out of their bank account, payday loans, or taking money out of the bank account. It’s good to take open up a new bank account so that those deductions aren’t happening anymore.
  4. While you’re going ahead and proceeding with the bankruptcy filing. refer your collection calls to your attorney, this is probably the best thing you can do prior to filing your case, you don’t have to take those harassing phone calls anymore. Once you hire an attorney, refer those collection calls to your attorney. Once you have an attorney, they’re supposed to call the attorney. And if they don’t, then you let us know. And we’ll make sure that they don’t call you anymore. Ask your attorney any questions that you have and let them know if there’s a change in circumstances in your case.
  5. That’s another thing that you’ll want to do. For example, if before filing your case, if you have a job loss or a change in jobs, or a change in circumstances, good or bad, you’re going to want to make sure that you let your attorney know because that’s something that could impact your case.
  6. Another thing is you’re going to want to make sure that if you’re thinking about doing something prior to your bankruptcy filing, definitely call your attorney and talk to them about it before doing whatever you’re thinking about doing because it could have an impact on your case, it’s better to check with your attorney before actually taking that action.
  7. I’d start the process sooner rather than later. That’s one of the things prior to filing your case. Jump on the process right away if you know that bankruptcy is inevitable because of your circumstances. It’s better to do it earlier than later because of garnishments bank attachments. You know, foreclosures, repossessions, all those things can be prevented by filing for personal bankruptcy and you don’t want to be in a situation where you’re where you need to file bankruptcy and your wages are being garnished 25% of every single paycheck because then it makes it hard to get to that next step of filing.

How an Ohio Personal Bankruptcy Lawyer Can Help You

If you and your family are dealing with debts that you can no longer afford, you may be considering the prospect of bankruptcy.

An Ohio bankruptcy attorney from Amourgis & Associates, Attorneys at Law, can help you by:

  • Exploring alternatives to bankruptcy, such as credit and personal financial counseling, loan modification and debt consolidation.
  • Helping you determine what types of bankruptcy you qualify for and which type may best suit your financial circumstances.
  • Assisting you with gathering the financial documents and information you will need to prepare your bankruptcy petitions.
  • Connecting you to the required bankruptcy and credit counseling courses you must take in conjunction with your bankruptcy petition.
  • Ensuring that your bankruptcy petition and other court filings are correctly prepared and properly filed with the court.
  • Representing you and advocating for your interests before the bankruptcy trustee and the court and representing you at court hearings, including responding to any objections from creditors.

If you are considering a bankruptcy in Ohio, schedule a free, confidential, no-obligation consultation today with an Ohio bankruptcy attorney from Amourgis & Associates, Attorneys at Law. We have six convenient office locations to serve you in Akron, Cincinnati, Independence (Cleveland), Columbus, Beavercreek, and Canfield. Let us help you understand your rights. We can help you move on with your life without the weight of unnecessary debt.

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