Chapter 7 in Ohio ?s

[usafvet]

Jurisdiction

Ohio

Hello,

After going through a terrible, high conflict two year divorce in Ohio including a custody battle, I find myself in about 45k of high-interest credit card debt, after settlement. Now I used to make 63k at my job, that would have DQ me from a Chapter 7, but I was laid off Dec 29th, 2020 due to COVID, but I have no expectation of ever getting called back by them as they have been cutting for years. Now Im most likely going to take at least a 30% pay cut, if not more, to start over again in life at 44 yrs old.

I do owe about 60k on my home, current, and own a 2012 Cruze free and clear. I do have about 7.5k in savings I will need to spend most of it before filing, or so I'm told. That should be no problem as my home could use some TLC like a new door and flooring, etc. I do not own any other assets or own a business or anything like that.

I talked to a bankruptcy attorney last week, he said I need to make all but around 2k of savings "go away" IE buy a new living room set or something, you cant just cash it out. He was very pushy for me to sign up right away, which made me nervous and suspicious. He said I can keep my home and car.

Does anyone have experience going through this? Wont spending 5.5 k of savings on home improvement a month or so before filing look suspicious?

 

[army judge]

Wont spending 5.5 k of savings on home improvement a month or so before filing look suspicious?

Maybe, but why fret or worry about one lawyer's advice?

There are thousands of BK lawyers.

Why not seek a FREE consultation with at least THREE more credentialed, licensed in your state BK lawyers near you, rather than the counsel of anonymous (perhaps fictitious) parties on the internet?

 

[adjusterjack]

I talked to a bankruptcy attorney last week, he said I need to make all but around 2k of savings "go away"

$2k is likely his fee that he will want in advance. Ohio exempts $500 in cash from bankruptcy.

I do owe about 60k on my home

Ohio exempts home equity up to $145,425. If your home is worth more than $205,425 plus about 8% for costs of sale, it could be at risk.

Ohio exempts car equity up to $4,000. I see Cruzes advertised for $6k to $12k so your car might also be at risk.

Now I used to make 63k at my job, that would have DQ me from a Chapter 7, but I was laid off Dec 29th, 2020

For Ch 7 your earnings of the last 6 months are averaged so it might still be a while before you can file.

Before you talk to another lawyer, be aware of the exemptions and make sure you discuss their consequences.

https://upsolve.org/oh/exemptions/

You might also want to start filling out the bankruptcy forms and see how you do.

Bankruptcy Forms

You're going to have to do them anyway. Best to figure them out before committing to a lawyer.

 

[usafvet]

Maybe, but why fret or worry about one lawyer's advice?

There are thousands of BK lawyers.

Why not seek a FREE consultation with at least THREE more credentialed, licensed in your state BK lawyers near you, rather than the counsel of anonymous (perhaps fictitious) parties on the internet?

Because two months ago, I already consulted with a lawyer who claimed, despite making 63k, I could still qualify for a chapter 7. A quick google search for the means test proved that wrong. Now after losing my job, as mentioned Im going to take a large income cut BEFORE child support is factored in.

After my divorce experience, my trust for lawyers is at an all time low. Im just trying to not end up homeless here, without the ability to be in my son's life. That is how bad this seems to be going.

 

[usafvet]

Yes, he was honest about the 2k pretty much being his "retainer" the question is, if I end up with a $0 balance in my account, how do I pay bills? I would prefer not to end up homeless here.

No worry about the home thing, its supposedly worth 90k and I owe 62k. If I were to sell it a few months after Chapter 7, do I get to keep the equity to rebuild my life?

According to KBB, my car, with its cosmetic damage, is worth 5.5k at "good" condition. I dont understand how they can take your only means of transportation? I could understand if it were a Lexus or something.... How am I going to get to work?

I will look up the forms and go through them, heaven knows I have the time now.

Thanks for the help.

 

[Zigner]

Chapter 7 bankruptcy is designed to give low-income people a fresh start by eliminating most unsecured debt, and preventing collectors from pursuing the debt. To file for Chapter 7 bankruptcy, your household income must be below the median household income.

This thread is from January of 2021 - please don't post to long-dead threads.