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Ohio Bankruptcy Questions & Answers
Q: Is paying off a HELOC without permission legal after deed transfer reversal?
Back in 2018, the deed to my grandmother's house was transferred into my name to obtain a HELOC for her nursing home expenses. In 2019, my family filed a lawsuit claiming the quitclaim deed transfer was illegal. The judge reversed the transfer and put the deed in my family members' names... View More 
Todd B. Kotler
answered on Jun 19, 2025
answered on Jun 19, 2025
This does not violate any criminal law to my understanding. I am not sure you even have a civil cause of action. If I understood your question, your issue is that your family paid off a debt in your name. At worst, they may have an action against you for unjust enrichment and you have a defense... View More
Q: What happens to credit card debt in Ohio when a deceased is solely responsible?
What happens to my mother's credit card debt upon her passing? She is solely responsible for this debt and has a will, but her estate is not in probate as she has not yet deceased. She owns a house jointly with me, her son, with right of survivorship, and has $140,000 equity in the house. Her... View More
Kenneth L. Sheppard Jr.
answered on May 27, 2025
answered on May 27, 2025
Assuming she is single and all of the credit card debt is in her sole name, then only a probate asset can be used to pay off that debt. If there is no probate assets, then her estate will not have to pay back that credit card debt. The house is in survivorship status therefore it is not a probate... View More
Q: Will I lose my home and car in Ohio if I file for Chapter 7 bankruptcy?
I own my home outright in Ohio, valued at $240,000, and my car is worth $15,000. I have $30,000 in credit card debt due to job loss for the past two years, though I've worked as a freelance driver. I'm considering filing for Chapter 7 bankruptcy. Will I lose my home and car in Ohio if I... View More
Kenneth L. Sheppard Jr.
answered on May 27, 2025
answered on May 27, 2025
Based upon these facts, the trustee would look to sell your home and car. The exemptions allowed in Ohio do not cover the equity in these assets. The non-exempt equity is quite large and therefore a chapter 7 trustee would look to sell your assets. Chapter 13 would be your alternative. In a Chapter... View More
Q: Considering bankruptcy due to debt, unemployed, never filed before, guidance needed
I'm considering filing for bankruptcy due to credit card debt, as I'm currently unemployed and unable to make payments. I've never filed for bankruptcy before. I'm receiving phone calls and text messages from creditors. What steps do I need to take to begin the bankruptcy... View More
Kenneth L. Sheppard Jr.
answered on May 17, 2025
answered on May 17, 2025
In filing for personal bankruptcy, there are 2 types: Chapter 7 and Chapter 13. You are likely looking at a Chapter 7 because you have no or limited income. Chapter 7 is where 100% of your unsecured debt like credit cards, medical debt, and personal loans are wiped out. You have to qualify for this... View More
Q: Can I pause my installment agreement to pay for my chapter 13 bankruptcy
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W. J. Winterstein Jr.
answered on Nov 23, 2024
answered on Nov 23, 2024
An "installment agreement" for what? Youe house, a car, a debt consolidation program?
There are various ways to pay for a Ch. 13 bankruptcy, but to answer your question reliably, a practitioner will need your fully detailed financial situation.
Confer with an experienced... View More
Q: Can a creditor garnish my SSI/bank account if that is my only income?
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W. J. Winterstein Jr.
answered on Oct 23, 2024
answered on Oct 23, 2024
A creditor may issue a garnishment to your depositary institution, which puts a (bank) hold on your account, but it is on you to file a prompt Objection (in PA, your Objection is filed with the issuing Sheriff, and must be filed in ten days from date of garnishment summons). And your bank... View More
Q: Will my secured debt creditor take the initiative to repossess the property?
I filed for a chapter 7 bankruptcy earlier this year and received a discharge judgement in May of 2024. Along with my unsecured credit card debt, the bankruptcy also discharged a secured debt in the form of an auto loan. I had not signed the provided reaffirmation agreement provided by the creditor... View More
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James L. Arrasmith
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answered on Jun 30, 2024
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answered on Jun 30, 2024
Based on the information provided, here's an analysis of your situation:
1. Discharge of secured debt: While your Chapter 7 bankruptcy discharged your personal liability for the auto loan, it did not eliminate the creditor's security interest in the vehicle.
2.... View More
Q: Defaulted on a personal loan. Loan is unsecured, no collateral. It’s through Achieve Personal Loans. What should I do?
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James L. Arrasmith
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answered on Apr 4, 2024
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answered on Apr 4, 2024
Here are some steps to consider if you've defaulted on an unsecured personal loan:
1. Contact the lender: Reach out to Achieve Personal Loans as soon as possible to discuss your situation. They may be willing to work out a modified payment plan or temporary deferment. Being proactive... View More
Q: What form do I fill out to set aside a default judgment in Lucas County OH?
I have a default judgment in Lucas County OH and but was not properly served (wrong address) and my taxes were included in my bankruptcy.
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James L. Arrasmith
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answered on Mar 6, 2024
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answered on Mar 6, 2024
In Lucas County, Ohio, if you're seeking to set aside a default judgment due to not being properly served or because the debt was included in your bankruptcy, you will need to file a motion with the court. This legal document is commonly referred to as a "Motion to Set Aside Default... View More
Q: How do I file a legal malpractice for my bankruptcy attorney ?
My attorney has failed to file documents, doesn’t respond to emails, cancels appointments, won’t call during scheduled meetings. I’m in jeopardy of losing home and case being dismissed.
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James L. Arrasmith
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answered on Mar 4, 2024
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answered on Mar 4, 2024
Filing a legal malpractice claim against your bankruptcy attorney due to their failure to perform their duties, such as not filing documents, ignoring communication, and missing appointments, can be a necessary step to protect your interests. The first step is to document all instances of... View More
Q: I was discharged after filing chapter 7 in August of last year. Was involved in car accident in February 2024. She is at
.
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James L. Arrasmith
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answered on Feb 24, 2024
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answered on Feb 24, 2024
Yes, any insurance settlement from your February 2024 car accident should be protected and not at risk if you were previously discharged from a Chapter 7 bankruptcy in August 2023.
The key bankruptcy law that provides this protection is Section 541(a)(5) of the Bankruptcy Code. It states... View More
Q: I was discharged after filing chapter 7 in August of last year. Was involved in car accident in February 2024. She is at
.
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W. J. Winterstein Jr.
answered on Feb 11, 2024
answered on Feb 11, 2024
Unlike many states (like PA), Ohio does not permit a debtor to choose between the state and federal exemption lists; an Ohio resident can choose only those exemptions granted by the state of Ohio.
While it appears that the Ohio exemptions might have protected your auto accident recovery,... View More
Q: Can I get an encumbrances removed from the title of my property if the person the encumbrance name is in filed bankruptc
I acquired a property through probate and didn't know the title had an encumbrance attached to it in my sisters name. She filed chapter 7 bankruptcy and got the bill charged off from herself but it's still attached to my property title. Is there a way to get that removed from my title... View More
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James L. Arrasmith
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answered on Jan 13, 2024
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answered on Jan 13, 2024
If your sister's debt was discharged through Chapter 7 bankruptcy, it means that she is no longer personally liable for that debt, but it doesn't automatically remove the encumbrance from the title of your property. The encumbrance, such as a lien or mortgage, is typically attached to the... View More
Q: Will it be my best interest to file bankruptcy 7. I'm on disability. I get $963.00 a month and I don't have any
Other assets. I can't afford the loan and the car attach to loan. The car needs a new transmission and I can't afford it. I live by myself and have no other help. I need to get rid of this loan and car. So I can start saving for another car. I health issues where I can't be out... View More
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James L. Arrasmith
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answered on Jan 12, 2024
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answered on Jan 12, 2024
Filing for Chapter 7 bankruptcy could be a viable option for you, considering your limited income and lack of assets. With a monthly income of $963 from disability and no other assets, you may qualify for Chapter 7, which is designed to help individuals in financial distress discharge unsecured... View More
Q: I loaned someone $6,000 and they filed bankruptcy.
Call me petty but I want to issue a 1099-C
I don’t know if the bankruptcy itself would make him responsible for paying taxes on the income although it was forgiven, but from my understanding, they still can be required to pay the taxes on the income, although the debt was forgiven? Also, I know the person Social Security number,he gave it... View More
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W. J. Winterstein Jr.
answered on Jan 10, 2024
answered on Jan 10, 2024
Issuance of a form 1099 is a prerequisite for you to deduct the bad debt from taxable income.
However, before you do that, check the bankruptcy code provision concerning tax effects of the resulting insolvency of a debt receiving a discharge (much taxable income is forgiven by that statute,... View More
Q: I loaned someone $6,000 and they filed bankruptcy.
Call me petty but I want to issue a 1099-C
I don’t know if the bankruptcy itself would make him responsible for paying taxes on the income although it was forgiven, but from my understanding, they still can be required to pay the taxes on the income, although the debt was forgiven? Also, I know the person Social Security number,he gave it... View More
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James L. Arrasmith
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answered on Jan 12, 2024
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answered on Jan 12, 2024
When a debt is discharged in bankruptcy, the debtor typically is not responsible for paying taxes on the forgiven amount. The IRS does not consider debts discharged in bankruptcy as taxable income. This means issuing a 1099-C, which is used to report cancellation of debt as income, might not have... View More
Q: Considering Ch7 but borrowed $700 from sister 9 mos ago to cover mortgage, repaid her a week later, do I need to wait
Is it an insider repayment? Just a verbal agreement. I was current on all of my bills at the time except mortgage was on 29th day. No delinquencies on other debts until 3 mos later. How long, if I have to wait to file?
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James L. Arrasmith
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answered on Dec 4, 2023
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answered on Dec 4, 2023
In the context of a Chapter 7 bankruptcy, repaying a loan to a family member, like your sister, can be considered an "insider payment." Insiders typically include relatives, friends, or business associates. Bankruptcy law scrutinizes such repayments made before filing, especially if they... View More
Q: Need guidance on filing Chapter 11 bankruptcy for auto shop, including tax concerns.
I own an auto shop and am facing financial difficulties. We need to file for Chapter 11 bankruptcy as there are immediate threats to close our business by next month. We are unsure where to start and are seeking guidance, particularly concerning tax issues, as these are part of the challenges we... View More
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James L. Arrasmith
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answered on Jun 24, 2025
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answered on Jun 24, 2025
You're not alone in this—filing Chapter 11 for your auto shop is a path many business owners take when they need breathing room to restructure. The first step is to assess your debts, income, and assets. You’ll need detailed financial records, including profit and loss statements, tax... View More
Q: Can Ohio Chapter 7 bankruptcy exemption cover house and avoid losing it?
I am in Ohio, planning on filing Chapter 7 bankruptcy for $45,000 in debt after being laid off in February. I own my house outright, solely in my name, with the most recent value of $212,500 from a property tax appraisal 3 years ago. I know I can exempt $185,000. I've been advised by my law... View More
Timothy Denison
answered on Jun 24, 2025
answered on Jun 24, 2025
Consult a seasoned bankruptcy attorney to help you make this decision. You are a little short on the house exemption, but there may be other wildcard exemptions you can add to get to the magic number.
Q: Is my LLC liable for a $32k debt from a bankrupt company in Ohio?
I started an LLC to purchase cabinets from an Ohio vendor after the company I consulted for as a 1099 employee went bankrupt. My business partner, also a 1099 contractor for this bankrupt company, signed a credit application as COO for the closing LLC. Although the application was denied, the... View More
Timothy Denison
answered on May 17, 2025
answered on May 17, 2025
No. Not unless you explicitly signed and agreed to assume the debt.
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