Ohio Bankruptcy Laws are Designed to Protect Your Car
Being deep in debt and thinking of bankruptcy causes a lot of sleepless nights for everyone. And, if you’re like most people, concern over losing your car likely puts a sharp pit in your stomach. However, there is good news for you! Ohio bankruptcy laws are designed to protect your car. After all, the government understands that you need to be able to get to work, go to the grocery store, and pick your children up after sports practice.
Repossessions are Halted
As soon as your bankruptcy petition, either Chapter 7 or Chapter 13, is filed and accepted, the court issues a “stay.” This means that any car repossession is halted, immediately.
In addition, other creditor attempts to collect on debts are halted as well. This means that phone calls, letters, most garnishments, and foreclosures stop.
Chapter 7 Ohio Bankruptcy Personal Exemption for Cars
Each Ohio resident, filing bankruptcy, can protect up to $3,225 of equity in a car. This means that a married couple filing bankruptcy jointly can protect up to $6,450 of equity in cars.
Here are some planning points for keeping your car when filing Chapter 7:
* If you have excess equity in your car, you can purchase your car at the wholesale price, not what you owe on it.
* If you have kept up with the payments, can afford future payments, and your equity is within the exemption, you can keep your car by reaffirming the debt.
* If you can pay off back payments, afford future payments, and your equity is within the exemption, you can reaffirm the debt and keep your car.
Chapter 13 Ohio Bankruptcy Protection for Cars
Chapter 13 helps you to keep you car and there are no exemption limits as to the car’s value of equity.
So long as you can afford future payments along with your other obligations, including the 3 to 5 year debt repayment plan, you are permitted to keep your car.
If you haven’t kept up with payments, this past due debt can be included in your debt repayment plan.
Where to Get Help Protecting Your Car in an Ohio Bankruptcy
We understand that you’re highly stressed and, perhaps, even scared about losing your car. You are not alone. There is no reason to be. We focus our practice on bankruptcy law and you can reach us at 513-793-6555 or by email at Thomasjr@geygan.com. We will gently walk you through the process and aggressively fight for your legal rights.