Much of the populace of Ohio shall quite understandably wrestle around with the larger moral and ethical concerns that bankruptcy protection represents, and, for consumers who had always intended to pay back in full every obligation knowingly taken out, there may be some use to an exploration of the history behind this maneuver. Whenever consumers within Ohio think about bankruptcy and the potential for their families to once and for all extinguish all of the consumer debts that have haunted their economic growth, there’s a sensation of guilt or even embarrassment that attaches itself to the process regardless of how necessary the loans may have been for the protection of their family’s future prospects. In actuality, bankruptcy protection has a long and thoroughly respectable history that rewards the attention of every consumer who may require help. In the earliest days of the Roman empire – when commercial creditors, as we now understand the term, first blossomed amidst a thriving economy – merchants borrowing from larger enterprises to fill their stock would find their stalls invaded, their possessions seized, and their literal seat smashed to pieces (hence the term ‘bankrupt’, from the Latin for broken bench). However much modern bankruptcy protection may threaten credit ratings and drain the coffers of the Ohio family just in order to afford experienced legal representation, the current state of affairs is still obviously far less deleterious to household accounts.
Indeed some theologians have even gone so far as to argue that there’s a biblical justification for bankruptcy protection with passages in Deuteronomy insisting that debtors be forgiven every seven years. Much as anything, this may explain why consumers in Ohio and the United States of America traditionally would only be able to petition for Chapter 7 bankruptcy protection after waiting for another seven years after the initial declaration; this has since been extended to eight years but the original scheduling seems more than coincidental for a country once beholden to Christian notions of charity. Furthermore, after the great economic upheaval that spread throughout the country (and particularly through Ohio and the Midwest) following the industrial revolution of the nineteenth century, the idea that Ohio entrepreneurs who risked everything to invest family funds upon new inventions and industry greatly aided the indulgence of risk that spurred on the creation of the most powerful economy that the world had ever known. Without the protection of Chapter 7 bankruptcy, Ohioans would be far less apt to develop the technological advances that stimulate production, and, around the globe, financial analysts have commented that the remarkable success of America could be directly linked to the relatively comfortable system of governmental forgiveness that bankruptcy represents. The list of those consumers who’ve been forced into filing for Chapter 7 bankruptcy and rebuilt their lives to prominence includes leading lights of business in Ohio and the rest of the country
Unfortunately, with the rising availability of credit cards and the subsequent weakening of bankruptcy protection, the modern Ohio consumer can no longer depend upon Chapter 7 bankruptcy to necessarily protect their household in case of financial distress. Given the opportunity, of course, every Ohio borrower would preferably choose to simply pay back their loans through the usual methods – sending more money each month to the various creditors until the balances would be ultimately cleared – but the economic difficulties strangling Ohio industries unfortunately preclude this option for too many Ohio households no matter how hard they try to right their budgetary concerns. Traditionally, whenever Ohio families first realized that they would not be able to satisfy their lenders in any reasonable amount of time, they would file for Chapter 7 debt liquidation bankruptcy in order to prevent law suits or any other attempts by their creditors to garnish wages or freeze their checking accounts, but, along with the increased importance of credit ratings to Ohio consumers traveling through modern society (which alone has resulted in more and more Ohioans strenuously resisting the program in favor of more publicized alternatives), Chapter 7 bankruptcy protection itself has become far more difficult to successfully declare.
Four years ago, the Bankruptcy Abuse Prevention and Consumer Protection Act was signed into law by President Bush, and, among the various new rules and regulations added to the United States Bankruptcy Code, there was a new and highly problematic test of qualification for borrowers attempting to petition for Chapter 7 bankruptcy protection. The Code now forces the trustee chosen at random by the courts of Ohio (or, for that matter, anywhere else in the country) to purely examine the debtors’ gross annual earnings of the first half of the year prior to filing as compared to the other heads of household within their state, and only those Ohioans that have made less than the median income would be considered eligible for the Chapter 7 debt elimination program. The United States Trustee Program defines the average earnings for Ohio and every state in America according to data collected from the Internal Revenue Service and the Census Bureau which, as should be assumed, regularly changes. To that end, Ohio borrowers interested in the possibility of Chapter 7 bankruptcy protection should always check the government websites or call the switchboard of the Ohio Attorney General’s office for the most current information. At the time this article was written, the federal government had determined that an Ohio consumer without spouse or family would have to have an annual income of less than forty one thousand dollars to be eligible for the Chapter 7 bankruptcy debt elimination program. Ohio households containing two members would have to have made less than forty nine thousand dollars. For three members, the earning limit was judged to be fifty nine thousand dollars, seventy thousand dollars for four member households, and, for each additional member, Ohio residents filing for bankruptcy should add another seven thousand to the total. Otherwise, if the Ohioans filing for bankruptcy demonstrate that they made substantially more, the court trustee will – according to the damningly specific language of the recently changed United States Bankruptcy Code – have no other alternative but to shuttle the Ohio borrowers to the Chapter 13 bankruptcy program which restructures debts but does not noticeably reduce the loan balances.
Even if the Ohio consumer decides that they may still have earned sufficiently little money to qualify for the debt liquidation bankruptcy measure – and, as importantly, saved enough money to fund legal representation considering how very essential bankruptcy attorneys have become to the process – the difficulties continue to pile on the modern borrower seeking bankruptcy protection. The Ohio resident petitioning for Chapter 7 protection, according to the United States bankruptcy code, will be expected to forfeit certain property, forms of income, and benefits which will all be applied toward the resolution of their debts. State exemptions offer a tad more breathing room when set against the federal variety, but, still, there’s much to worry about. Ohio borrowers declaring bankruptcy are guaranteed to retain cash savings only up to four hundred dollars, for example. Among household goods listed, the linens and bedroom fabric are considered fair game for liquidation if they are over two hundred dollars in value. The clothing of the Ohio household, as well, should be saved provided no suit or dress or costume be reasonably judged to have an estimated price above three hundred dollars. Kitchen necessities, from stoves to refrigerators, are exempted presuming the replacement value (rather than resale value, as generations of Ohio previously would expect) of each item would be judged to be below three hundred dollars. As specially earmarked under Ohio law, the jewelry belonging to members of the family filing for bankruptcy (which will include everything from wedding bands to pocket watches handed down from great great grandfathers) shall be saved so long as each item’s value does not exceed two hundred dollars and the total amount of the household regalia would be calculated at less than two thousand upon replacement.
An Ohio estate’s crops, livestock, and even backyard chickens, are identified as property likely to be saved in a bankruptcy filing provided the accumulated cost of the aforementioned property does not exceed fifteen hundred dollars if the debtor is a homeowner and claims a homestead exemption, but, without employing the homestead remedy, the Ohio state exemption is increased to two thousand dollars. The family musical instruments, such as a daughter’s cello or the cherished piano in the parlor are considered among the property not at risk … just so long as the replacement cost of each piece is under two hundred dollars (which hardly protects much of any worthwhile instrument). Other possessions with a price tag limited to two hundred dollars apiece which are protected from seizure include linens, beds or bedding, kitchen ware, and the patio barbecue. Home furnishings like framed pictures, lighting fixtures, stereo equipment or the television cannot be appropriated by the Ohio courts as long as each is also priced below two hundred dollars, and books up to two hundred dollars each also won’t have to be relinquished. Valuables like family heirlooms, as long as the value of each item is determined to be within two hundred dollars, should be safe, and other goods in the home limited to two hundred dollars in price exempt from the penalties of bankruptcy incorporate sporting goods like fishing poles, hunting rifles, handguns, and boating equipment.
Other dispensations mandated by bankruptcy law in Ohio include the family burial plot. Technical books, tools, and equipment purchased for use on the job—anything from a hand drill to a pressure washer—are legally regarded as objects that couldn’t be liquidated provided their individual values are within seven hundred fifty dollars. Injury compensation (up to five thousand dollars) and wrongful death awards that provide income for Ohio borrowers who demonstrate a financial dependence upon the deceased are secure as long as the funds for either were received less than a year before they filed for bankruptcy. Medical aids prescribed by doctors or hospital authorities, alimony and other forms of familial support, most private retirement benefits (if they’re needed for the household’s financial well being), and almost all retirement benefits for employees (police officers and fire fighters especially) of the state of Ohio remain untouched, and the same goes for most forms of life insurance proceeds or monetary compensation for criminal trials. At least three quarters of a borrower’s wages are exempted for the first month, and disability benefits are protected to a limit of six hundred dollars each month. These notes are, of course, just the tip of the iceberg in terms of the detailed strictures currently surrounding bankruptcy protection, and the formal slate of exemptions enacted over the years by the Ohio state legislature would drain the patience of even the most resolved consumer (and, as well, the sometimes contradictory language may strain the capabilities of the ordinary Ohioan to understand the governmental verbiage). To reiterate an earlier point, experienced bankruptcy attorneys are virtually considered to be a necessity for any effective bankruptcy program, and a sadly significant percentage of Ohio households that attempt to navigate the shores of bankruptcy absent legal advisors should realize that they are effectively risking home and hearth in the drive for debt management.
However dim the potential for successful bankruptcy protection may now seem to borrowers around Ohio, there’s still no reason to abandon all hope and suddenly cash out retirement plans or pensions just to halt the collection agency harassment. It’s all well and good to be motivated to reduce unsecured debts, but too many Ohio families upon realizing both that they desperately need to start eliminating debts and that they may not depend upon governmental bankruptcy protection run heedless into the arms of mercenary debt consolidation loan officers or Consumer Credit Counseling salesmen. Troubling as bankruptcy programs may now seem to Ohio borrowers, they’re still a healthy step above the consolidation or Consumer Credit Counseling alternatives which do little more than charge huge sums of money for artificially lowering bill payments for the time being while compound interest has years or even decades to increase the total debt balances owed. At the same time, though, one new solution to the problem of mounting consumer burdens has emerged with faintly miraculous rates of success according to the stories of Ohio residents that have gone through debt settlement negotiation. In the easiest explanation of a complicated system, negotiation specialists utilize the still existent risk of Chapter 7 debt elimination (since, after all, bankruptcies remain a possible threat to the creditors’ debt holdings) to shave off as much as sixty percent of their account balances. Again, there’s far more to the debt settlement negotiation process then could easily be illustrated within the constraints of an article of this kind, and it would probably be best for interested Ohioans to discuss the particulars of their situation with a certified settlement professional. Whether one could be found in Columbus or Cleveland or Cincinnati or whether the already busy household prefers a free consultation with one of the settlement counselors found on the internet, Ohioan consumers uncomfortable with the new realities surrounding bankruptcy would be well advised to take a look at this exciting new strategy before making any final decision.
The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.
Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?
