Ohio Debt Relief

The time limit set by Ohio Credit Card Debt law for filing a suit against a debtor on open-ended accounts is 6 years. This time limit is called a Statute of Limitations (SOL) and it begins from the date the debtor first misses a scheduled payment. If the debtor makes a subsequent partial payment, the SOL starts over from the date of the payment. If a debtor receives a summons to appear in court over a debt, he or she must respond with an answer in 28 days or face default judgment on the debt. For this reason, it is wise to send the answer via certified mail.

Judgment Enforcement

Ohio law provides for a 5-year SOL on creditors trying to collect on a judgment. Creditors may lien the debtor’s real property so long as it is executed within five years of the judgment. A dormant judgment may be revived within 21 years from the date it fell dormant, allowing for further revivals if needed. The state allows a homestead exemption up to $5,000. Judgment interest in Ohio is 12% per year.

Wages may be garnished up to 25% of the debtor’s disposable income, but other garnishments may interfere with an existing order for continuous wage garnishments. Although Ohio generally recognizes “judgment by confession,” a contract clause that acts in place of a judgment on debt, such clauses are not enforceable on consumer contracts such as credit card accounts.

Debt Settlement

Consumers can accept a court judgment and the subsequent seizure of property and wages, or they can try Debt Settlement. This allows debtors to make an agreed upon payment plan free of interest charges.