When Ohio residents are searching for ways to handle considerable debt, some may wish to avoid bankruptcy. However, consumer bankruptcy could help qualifying individuals regain control of their financial situation. If individuals choose to file for Chapter 7 bankruptcy, they may even be able to maintain ownership of certain property.
Chapter 7 is liquidation bankruptcy, meaning that individuals are required to sell assets in order to pay back debt. One woman in another state filed for such bankruptcy after accruing $23,000 in debt. As a part of her case, a bankruptcy trustee was prepared to sell the woman's first edition Book of Mormon. This rare 1830 publication could be worth upwards of $75,000 in good condition.
The woman did not want to sell the book, but the Bankruptcy Court initially ruled that it must be sold as part of the liquidation process. However, she appealed that decision, and the appeals court ruled in favor of the woman. Due to the laws in her state, a Bible is deemed exempt property in a bankruptcy proceeding.
If Ohio residents are concerned that they will have to part with all of their property if they file for Chapter 7 bankruptcy, they may wish to explore information on exempt property. Because laws pertaining to bankruptcy can vary, interested parties may also want to consult with an experienced attorney about their particular cases. Often, exceptions exist within the law that provide for certain property to be excluded from liquidation in bankruptcy. Consumer bankruptcy could be a helpful option, and having more information may help individuals determine whether it could be the right path for them.
Source: stltoday.com, "Illinois woman can keep rare Book of Mormon despite bankruptcy, court rules", Robert Patrick, Feb. 4, 2016