The basic bankruptcy laws are the same throughout the United States. The only major variations in the laws between states is what a debtor (this is the legal term for someone who has filed bankruptcy) is allowed to keep, which is known as "exemptions" (Ohio exemptions are here)

Once your Statement of Financial Affairs is filed creditors are immediately stopped from preventing to collect debts.

The bankruptcy lawyer will try and sell your unexempt assets to raise cash to pay your creditors and then to pay off creditors as much as possible with any left over monies.

Once you file your bankruptcy case any additional assets you earn are yours 100% and don't have an effect on your bankruptcy case!

Bankruptcy Laws in Ohio, OH

You can still file chapter 7 bankruptcy under the confusing new bankruptcy laws! You will have to pass extra loopholes to qualify and extra forms and paperwork to fill out, and you may be forced to file chapter 13 instead of chapter 7. However, chapter 7 is still available to the vast majority of debtors will a little extra effort! (more)

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy (straight bankruptcy) is a bankruptcy in which the debtor turns over all non-exempt assets to the bankruptcy lawyer who will then get as money cash for it as possible for distribution to the creditors.

Federal laws provide a means test to determine if you are eligible to file for Chapter 7 Bankruptcy in Ohio. If your income is below the median family income in Ohio you will be eligble. If your income is higher than the average then income in the past 6 months is considered.

Chapter 13 Bankruptcy

The main advantage of Chapter 13 bankruptcy in Ohio is you can save your home from foreclosure. You must still pay your mortgage payments as laid out by the chapter 13 plan.

With a chapter 13 bankruptcy you may also extend and change payments of secured debts (this does not refer to your main residence mortgage) which can possibly lower payments.

The last advantage of a chapter 13 is you get to avoid dealing with creditors! You will pay your bankruptcy lawyer who will in turn pay your creditors.

You are eligble to file for chapter 13 bankruptcy in Ohio if your unsecured debts are less than $307,675 and secured debts are less than $922,975.

The Ohio Bankruptcy Exemptions are listed here