Ohio law allows Chapter 7 filers to exempt certain property from bankruptcy proceedings, on the theory that debtors would not be able to take full advantage of a fresh financial start if they had to give up everything during the process. Bankruptcy is based on federal law, but filers may rely on exemptions established by the state in which the case is filed.
Some consumers in Ohio may benefit from submitting a petition for bankruptcy protections if they are unable to keep up with debt obligations and are seeking relief. In many cases, Chapter 7 bankruptcy is able to help a consumer discharge their debts, allowing them to rebuild their financial foundation without worrying about outstanding accounts. However, there are some rules that limit who can be granted the action.
Ohio residents may be interested in information about how a Chapter 7 bankruptcy works and who is eligible to obtain this type of debt relief. Once eligibility is determined, their assets may be liquidated and sold to satisfy some of the debts, and certain other balances are discharged.
Bankruptcy may be viewed as an effective way to get rid of debts and start over, but it is important for Ohio residents to understand that there are two different options for a consumer bankruptcy filing. While a Chapter 7 bankruptcy may be discharged approximately four months after its filing date, a Chapter 13 filing is a different matter. In this case, debts are adjusted rather than discharged, meaning that a restructuring of payments occurs for a period of three to five years. At the end of this time, the remaining unsecured debt included in the bankruptcy may be discharged.
Ohio readers might be interested in a recent report regarding the closure of a company that operates in a number of locations throughout the country. Crumbs, a bakery known for its cupcakes, is filing for bankruptcy and shutting down all its stores. The company has stores in 12 states and Washington D.C., with 65 total locations, according to its website. At the end of 2013, it reported having over 800 employees, with 165 employees working full time, and 655 being part time workers.
The Bankrate Bankruptcy Advisor provides financial answers that could help Ohio residents. For instance, the question asked on April 22 concerns credit rebuilding after bankruptcy.
In a move that photography businesses in Ohio are watching, Calumet Photographic Inc. is seeking bankruptcy protection and initially reported it would shut down all operations in the U.S. as of March 13. The Chicago-based company, which has been in business for nearly 75 years, posted the information on social media regarding its move to file Chapter 7 bankruptcy. The company later updated its status to say it might keep some U.S. locations open. In the filing, the company listed liabilities between $10 and $50 million and assets of $50 to$100 million.
Ohio residents who are on the verge of filing for bankruptcy protection may be interested in learning about a recent ruling by the Supreme Court of the United States that suggests it is unlawful for bankruptcy courts to seize exempt assets. According to a report from Washington, the ruling was made by unanimous decision on Tuesday, March 4.
Bankruptcy is designed to relieve people of the financial stress of crippling debts. It can provide them a fresh start in life free from many encumbrances. However, people considering this option should be aware of what debts they can and cannot have discharged.