Ohio Bankruptcy

Bankruptcy is a process that involves the courts assisting individuals and entities in dealing with debts that they are unable to pay. The bankruptcy process provides individuals or entities the opportunity to either get a fresh start as a result of a discharge of their debt or repay their creditors on a structured plan.

Depending on their particular circumstances, Ohio bankruptcy filings must use Ohio law regarding the exemptions that apply to particular property and exemptions cannot be marketed to pay the debts owed.

How to File Bankruptcy in Ohio

In addition to meeting the residency requirement, there are other requirements you should review before filing bankruptcy in Ohio. You cannot use bankruptcy to eliminate obligations for domestic support, certain tax obligations that meet certain statutory criteria, large luxury purchases, or criminal fines. If you need additional time to repay non-dischargeable obligations, you may still be eligible for filing, but you must have stable income.

Before completing any bankruptcy filing, it is necessary to gather your financial information to prepare your petition. Your financial information should include paycheck stubs or unemployment check stubs, tax returns, bank or retirement statements, collection notices, mortgage and car loan statements, credit reports, and liabilities for insurance policies. Also, within 180 days of filing, you will need to complete the credit counseling course through an agency approved by the U.S. Trustee Program.

Once you have gathered the documents, download and complete the official bankruptcy forms, and take them with your filing fee to file in the courthouse. The fee to file bankruptcy is different based on the Chapter you are filing under and is currently $338 to file a Chapter 7 bankruptcy and $313 to file a Chapter 13 bankruptcy. If you are unable to pay the fee, you can request a fee waiver or ask to be allowed to pay in installments.

You will be required to go to a meeting of creditors, called a 341 meeting, where your trustee will ask questions about your petition. If you filed a Chapter case, you may have 60 days after the creditors meeting to complete a financial management course and file your completion certificate. Once all steps or any repayment plan is completed, court will likely grant a discharge eliminating dischargeable debt.

Ohio Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Before choosing a chapter for your bankruptcy case, you must consider several factors such as prior bankruptcy filings, debt amount, income and eligibility, property and assets, repayment ability, timing, and the impact on your credit report.

Chapter 7 (Liquidation)

You may qualify to file Chapter 7 bankruptcy if your gross family income is less than $62,952 for a one-person household or $119,897 for a four-person household. This legal process is designed to give low-income earners a fresh start by discharging most unsecured debts like utility bills, personal loans, and credit card debts.

Chapter 13 (Repayment Plan)

This chapter is generally used by individuals who have a regular source of income. Instead of liquidating essential property, the filer may propose a court-approved repayment plan to pay creditors over a period of three to five years.

Chapter 11 (Reorganization)

This chapter is used by businesses and, in some cases, by individuals with substantial debts and assets to restructure financial obligations while continuing operations. Under Chapter 11, the debtor may propose a reorganization plan that is subject to court and creditors’ approval. The plan outlines how debts will be repaid or adjusted over time.

Step-by-Step Checklist for Ohio Filers

To successfully file a bankruptcy case in Ohio, you must:

• Collect financial records
• Attend credit counseling class
• Prepare and submit bankruptcy forms
• Request a fee waiver or pay the filing fees
• Attend the 341 meeting of creditors
• Complete financial management course

Ohio Bankruptcy Courts & Record Access

The state of Ohio has two federal bankruptcy districts, namely the Northern and Southern Districts of Ohio.

Northern District of Ohio

This court serves over 40 counties with divisional offices in Youngstown, Cleveland, Canton, Akron, and Toledo. Individuals within this district can file bankruptcy cases either in person or electronically. The main courthouse is located at:

Southern District of Ohio

Similarly, the Southern District Courthouse allows electronic and in-person filing of documents in bankruptcy cases. It also serves 48 counties, and the address of the main office is:

Records & Search Tools

To obtain basic details about a bankruptcy case, such as the case number, chapter filed, trustee, debtor, filing date, and case status, you may use the Multi-Court Voice Case Information System (McVCIS) by calling (866) 222-8029. The service is free and will ask for specific information, such as the debtor’s name or Social Security number, to locate the case.

For access to case documents and docket information in Ohio bankruptcy cases, the Public Access to Court Electronic Records (PACER) system is available. You need to register for an account to download documents, though public terminals at each divisional and main office also allow viewing and printing of case documents.

Records for cases filed before January 1, 2003, may not be available on PACER. In such cases, you may request the documents from the Federal Records Centers either online or through the mail.