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a couple questions about chapter 7 in ohio

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    a couple questions about chapter 7 in ohio

    Hi. I will be filing chapter 7 within the next 12 months and have a few questions...
    First. I read that in ohio the exemption for a vehicle is 3225 dollars. I recently purchased a 2008 Honda Civic EX Sedan with 28,000 miles. I owe about 13,000 on it currently which is more than what it is worth. Is the rule here that I can not have anymore than 3225 dollars in equity? What value do the courts use? Trade in, retail?

    Also, how long after I use credit cards can I file? I have made some large purchases during the past 4 or 5 months and am no longer using credit cards. I was planning on making payments for a year or so then filing because I don't want any adversary proceedings. Can anyone shed some light on this for me? I owe in total about 30k in credit card debt. No real reason for it, just overspending and living above my means (I make 32,500 per year and have no dependants, btw...)

    I'm just a little bit nervous because I am 22 and going through this with the worst feelings. main reason for the bk is student loan payments are WAY higher than what I originally thought they would be, I got into a bad car lease for 569.00 per month that I can not afford, and my credit card debt is out of control. I purchased the civic for 256 per month with Fifth Third Bank and do not plan on reaffirming. does anyone know if fifth third allows ride throughs? I do not want the vehicle to be repoed, but the leased Accord can go as the payment is way too expensive for me.

    #2
    Your equity is capped at $3225 meaning, you can't have more than that and the car be exempted. You're upside down so the issue isn't relevant.
    You can keep the car as long as you maintain payments. Since the purchase was recent, your lender may require a reaffirmation agreement.
    As a general rule, try and put 6 months or better between filing and any credit card use. Unless you have some large luxury purchases on them and defaulted immediately your chances of an AP are remote. You don't need to wait a year.
    Most bk lawyers give free or lowcost initial consultations. Speak with a few and see what they say.
    Of course, it's doubtful the student loans will be discharged.

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