The Unites States government passed a bill called the 2005 Bankruptcy
Act that states that all those who file for bankruptcy are required to
attend a credit counseling session six months before bankruptcy is
filed along with a financial management course after bankruptcy is
A means test is also required through the 2005 Bankruptcy Act. This
test will analyze an individual's expenses and income. The means test
will also be able to determine which kind of bankruptcy an individual
is qualified for. The individual's income for six months will be
compared to the median of Ohio's state income. This will determine the
Kinds of Bankruptcy in Ohio
The state of Ohio has two different forms of bankruptcy for which
individuals may apply. The first of these is the Chapter Seven
bankruptcy form. Under this kind of bankruptcy an individual can
relieve his or her debt by retailing his or her property through a
trustee. These trustees are assigned to each bankruptcy case and will
handle the selling of the eligible property. Only certain types of
property can be used, while others are deemed exempt. The exempt
property includes, in most cases, homes, motor vehicle, and some forms
for real estate.
As Chapter Seven bankruptcy comes to a close, the money acquired will
be used to pay off creditors. The entire process takes about three
months in total. It is fast and can help when foreclosure is a problem.
Under the means test when individuals are cited as not being able to
pay one hundred dollars a month, they will usually be eligible for
Chapter Seven bankruptcy.
When the means test cites that individuals can pay one hundred sixty
dollars or more per month, they will be qualified for Chapter Thirteen
bankruptcy. This form of bankruptcy sets up an individual payment plan
for the amount of money that is required to be paid each month for a
maximum of five years. The amount for each month depends on the number
of people in the home and the total income of the household. No
property will be sold and the individual's own income will pay the
When the means test cites that an individual can pay more than one
hundred dollars a month but not quite one hundred sixty dollars,
Chapter Seven bankruptcy is often the designation. Individuals are free
to choose Chapter Thirteen bankruptcy if they wish.
Filing for Bankruptcy
When all the required information has been gathered, usually with an
attorney's assistance, the papers will be processed through the Ohio
district bankruptcy court. Attorneys are often advised as they can help
determine all the needed information and be able to cite which kinds of
property are to be exempt in Chapter Seven bankruptcy cases.
Online do-it-yourself forms are possible, but since the United States
has changed its bankruptcy laws, the process has become more
complicated. So even for those who have filed for bankruptcy in the
past, filing for bankruptcy now is more detailed and takes a lot more
paperwork for accuracy.