This is no joke - the tri-annual adjustment of exemption amounts set forth in Ohio Revised Code section 2329.66 goes into effect on April 1, 2013. Exemptions are laws which allow people who file for bankruptcy to protect their assets. After this change, more of an individual's assets can be protected from judgments and creditors. The most notable change is the homestead exemption. An Ohio resident can now protect up to $132,900.00 in equity in his or her home, according to the Ohio Judicial Conference. Other exemptions have been increased too, including the exemptions for motor vehicles ($3,675), cash ($450), household items ($12,250 total), personal injury awards ($23,000), etc. Under the new law, people who file for bankruptcy in Ohio can have a greater degree of certainty that their assets will be protected.
Ohio House Bill 479 goes into effect on March 27, 2013. This law amends Ohio Revised Code Section 2329.66 and allows an individual to protect up to $125,000 in equity in a parcel of property used as a residence. Under prior law, an individual residing in Ohio could only protect $21,650.00 in equity in his or her homestead. This is a very positive development for individuals seeking to protect their most important asset, their home, both in bankruptcy and outside of bankruptcy. The new law also expands protections for IRA and 529 College Savings accounts. And it gets better: the tri-annual automatic adjustments go into effect on April 1, 2013 which will increase the amount of equity to be protected. Please follow our blog for updates.
Many young adults just starting out in the job market often carry a large debt burden due to low salaries, student loan payments, and the temptation to finance desired goods through excessive credit card purchases. If you are in this position, there are steps you can take to pay down your debt and thereby secure a more profitable and stable future for yourself.
Under the Bankruptcy Code, a debtor cannot discharge student loan debt unless he can demonstrate that excluding that debt would impose an undue hardship. The test laid out by the 2nd U.S. Circuit Court of Appeals in the 1987 case of Brunner v. New York State Higher Education Services Corp (Brunner) has become the national standard in making that determination.
Many people believe that filing for bankruptcy means that you have to give up your most prized possessions. This is, however, not the case. Bankruptcy law allows debtors to take exemptions, which offer certain property some protections from the bankruptcy process. Many of those filing for bankruptcy in Ohio are especially concerned with the homestead and personal property exemptions available to them.
While most Ohio residents usually associate credit scores with credit cards, other financial issues can play a huge role in the credit score process as well. According to a recent article in the New York Times, one of those issues is the effect of unpaid medical bills. While medical costs are usually very much out of a person's control, their effects can be just as devastating on a person's financial well being.
Many individuals facing substantial debt see filing for bankruptcy as a last resort. Though many may be unwilling to consider bankruptcy initially, it can provide an opportunity for a fresh financial start. One of the most important steps is determining whether filing for Chapter 13 or Chapter 7 bankruptcy is right for you.
When it gets difficult to pay your bills, you'll start looking for ways to bring home more cash. A common way people try to do this is to stop or lower their 401k contributions. Don't change your contributions to a 401k or any other employer-sponsored retirement plan without talking to a qualified bankruptcy attorney first. While in most instances you can keep contributing money after filing bankruptcy, you might not be allowed to start a new contribution during your bankruptcy. For some Chapter 13 debtors, this means you cannot start a new 401k contribution for 3-5 years. Confusing? Don't worry. We can help you to understand the effect of bankruptcy on your retirement accounts and other assets during a free consultation
Many people are surprised when they hear how much it costs to file for bankruptcy. After all, bankruptcy is supposed to offer people facing substantial debt an opportunity to start over. As a result, some people seek out the least expensive representation they can find. Unfortunately, as is often the case, you get what you pay for.
There are many things that can be used to serve as a marker for economic recovery-and the amount of bankruptcy filings can be one of them.