If you have run into difficulty paying your bills, odds are that you’ll receive some type of correspondence from the creditor seeking repayment, often referred to as a collection attempt. If you don’t respond to these collection attempts in Ohio, creditors have a number or legal remedies they can seek. The initial step creditors take is to obtain a judgment from a Judge which is a legal decision from a court giving the creditor the right to obtain a wage garnishment, levy your bank account, and/or place a lien on your Ohio property. By knowing your legal rights and the Ohio debt collection rules, you can protect yourself from unfair or unlawful behavior.
Ohio Wage Garnishment
If your creditor has received a judgment against you, then they can return to also ask the court to be able to garnish your wages. In Ohio, a creditor is legally allowed to garnish up to 25% of your net pay after giving a 10-day notice. Ohio debt collection rules also alwo a debtor to set up a payment plan in order to avoid wage garnishment, also refered to as debt scheduling. As long as you make your payments on time as agreed and pay back the entire amount, the creditor can’t garnish your wages.
Ohio Bank Account Levy
A less common approach a creditor can take after reviewing a judgment is to levy your bank accounts in order to obtain the money owed to them. In order to levy a bank account, the creditor must send a payment order to the bank. Ohio state law governs the amount any creditor can levy and how much a debtor can exempt from a bank account levy.
Liens on a piece of property, such as a home, can prevent the sale or refinance of the property until the judgment has been paid or make it so that the debt is paid from the proceeds of the sale. Liens are allowed in Ohio state law as a method of collection of a judgment.
Ohio Statute of Limitations
Ohio has some of the most creditor friendly statutes of limitations in the country and allows a creditor to take legal action against a debt within six years for a verbal contract and eight for those in writing. In the case of Ohio creditor judgments, they are valid for 5 years but can be revived within 10.
By filing bankruptcy in Ohio, an individual receives an automatic stay from all collection activities. The automatic stay goes into effect the moment you file for bankruptcy and can help end levies, liens, and wage garnishments, as these are all viewed as methods of collections. If you have already encountered any of the previously mentioned collection methods in Ohio, contact your Cincinnati bankruptcy attorney immediately to find out you can obtain debt relief while receiving temporary relief from collection efforts.