Do I Lose Everything If I File Bankruptcy?
Client often ask me if they will lose everything they own by filing bankruptcy. It is frightening to consider that all that you have worked for your entire life, could be gone.
In reality, most clients lose no tangible possessions whatsoever when they file bankruptcy.
The bankruptcy law provides for exemptions (items you get to keep). In Ohio, a married couple could have a $250,00 paid off home and retain complete ownership in a Chapter 7 bankruptcy. Ohio law also exempts an automobile with up to $3,675 of equity per person. Pension plas, IRA’s even most life insurances is fully protected. Personal property such as appliances and household goods are exempt up to over $24,000 per couple.
The bankruptcy laws can be complex. Over the years I have been acquainted with people who “go it alone” or use a petition preparer they find on the internet to guide them through the bankruptcy process. Many of these people later regret their decision to avoid consulting with an attorney because they either lose assets they did not expect to lose or become by the paperwork involved.
If bankruptcy is a possibility for you please contact our office at (419) 327-6160 for a free consultation. Our experience is representing individuals in over 2,500 discharged cases is available to guide you.