Ohio Bankruptcy Basics - Important Things to Know About Filing in Ohio
The provisions of the Bankruptcy Code are found in federal law.
Because of this, you might assume that all bankruptcies are treated the same, regardless of where they're filed.
Whether is be in Ohio, New York or even North Dakota, you would expect that everyone who filed for bankruptcy plays by the same set of rules.
Believe it or not, that's not true.
There are certain rules that are different from state to state.
And if you're filing a bankruptcy in Ohio, it's important to know which ones apply to you.
If you don't know, you could end up losing valuable property, including your house or car.
Although bankruptcy is a federal law, at also allows each state to have its own rules in some circumstances.
The main area in which state law controls is in regard to exemptions.
To simplify it, exemptions are amounts or property that can be put out of the reach of your bankruptcy trustee.
Each type of property has a different exemption amount.
The Bankruptcy Code, while having its own exemptions, allows each state to "opt out" of the federal bankruptcy exemptions and use their own.
Ohio is an "opt-out" state, meaning it uses its own exemptions.
As such, residents of Ohio are bound by the exemptions provided for by Ohio law.
Ohio bankruptcy exemptions are outlined, in large part, in Section 2329.
66 of the Ohio Revised Code.
The most important exemptions are: $21,625 per person for equity in a residence $3,450 for equity in one motor vehicle $11,525 per person for household goods and furnishings $1,150 wild card exemption for use on any personal property Of course there are many other exemptions for other types of property, but the ones listed above are the most frequently encountered.
Another issue that can arise in Ohio bankruptcy cases deals with fraudulent transfers.
Ohio law states that any transfers of property within four years can be considered a fraudulent transfer and can be case, it can mean trouble for both you and the person you transferred the property to.
Because of this, you might assume that all bankruptcies are treated the same, regardless of where they're filed.
Whether is be in Ohio, New York or even North Dakota, you would expect that everyone who filed for bankruptcy plays by the same set of rules.
Believe it or not, that's not true.
There are certain rules that are different from state to state.
And if you're filing a bankruptcy in Ohio, it's important to know which ones apply to you.
If you don't know, you could end up losing valuable property, including your house or car.
Although bankruptcy is a federal law, at also allows each state to have its own rules in some circumstances.
The main area in which state law controls is in regard to exemptions.
To simplify it, exemptions are amounts or property that can be put out of the reach of your bankruptcy trustee.
Each type of property has a different exemption amount.
The Bankruptcy Code, while having its own exemptions, allows each state to "opt out" of the federal bankruptcy exemptions and use their own.
Ohio is an "opt-out" state, meaning it uses its own exemptions.
As such, residents of Ohio are bound by the exemptions provided for by Ohio law.
Ohio bankruptcy exemptions are outlined, in large part, in Section 2329.
66 of the Ohio Revised Code.
The most important exemptions are: $21,625 per person for equity in a residence $3,450 for equity in one motor vehicle $11,525 per person for household goods and furnishings $1,150 wild card exemption for use on any personal property Of course there are many other exemptions for other types of property, but the ones listed above are the most frequently encountered.
Another issue that can arise in Ohio bankruptcy cases deals with fraudulent transfers.
Ohio law states that any transfers of property within four years can be considered a fraudulent transfer and can be case, it can mean trouble for both you and the person you transferred the property to.
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