If you're an Ohio resident struggling with debt, you're not alone. Like you, many others are also experiencing the same issue. Fortunately, Ohio has specific laws and resources to protect you.

You will get the best options to get out of debt, such as credit counseling and debt management plans (DMPs). You may also settle your debts, take out a debt consolidation loan, and file for bankruptcy.

So, without further delay, let's know more about these debt relief options, related laws, and resources that may guide you to be debt free.

Why Debt Relief Programs Work for Ohio Residents

Due to Ohio's economic situation, working residents may face critical financial challenges. It becomes difficult for them to handle inflation and high-interest debt payments together, as the minimum wage in Ohio is $10.70/hour (as of January 1, 2025), and the median family income in Ohio ranges from $62,952 (single earner) to $119,897 (four-person household) as of April 1, 2025, approximately.

Benefits of Professional Debt Relief Services in Ohio:

1. Reduce Interest Rates: These options will help you reduce interest rates significantly. For example, a DMP can reduce interest on credit cards (from 20% down to 8%) and save a lot.
2. Consolidate Payments: You can combine multiple debt payments into one and pay on time.
3. Legal Protection: Ohio's statute of limitations on debt can protect you from debt collections.
4. Stop Late Fees: Some debt relief options, such as debt settlement and bankruptcy, may help you remove penalty charges on unpaid debts.

Top 4 Debt Relief Programs in Ohio

If you want to regain control of your finances, here are the four most common strategies:

1. Credit counseling and Debt Management Plans (DMPs)

A non-profit credit counseling agency will review your finances. They also offer you a Debt Management Plan (DMP). You have to pay one monthly payment to the counseling agency, and they will work with your creditors to lower your interest rates.

This option is suitable for individuals who can pay their principal debt balance but can't afford to pay interest charges.

2. Debt Consolidation Loan

You may take out a new personal loan to pay off multiple debts. The new loan has a lower interest rate than your overall debts. Once you pay off the existing debts, you will only have one loan to pay.

You need to have a good credit score (670+) and a steady income to get a low-interest debt consolidation loan. However, make sure you pay the loan payments on time every month, or you'll increase your debts.

3. Debt Settlement

Debt settlement involves negotiating to pay less than what you owe—often 40% to 60% of the balance.

You need to stop making payments to your creditors. Once the accounts are "delinquent" (30+ days past due), negotiate with your creditors to settle your debts for a lower amount. You may set up a payment plan or pay a lump sum to close the accounts.

If you're facing financial hardships and can't afford monthly payments, debt settlement may be the best option for you. This option can help you avoid bankruptcy, but it may also harm your credit score significantly. Apart from that, you may also get debt collection calls during your negotiation period with the creditors.

4. Bankruptcy (Chapter 7 & Chapter 13)

Filing for bankruptcy is a legal process that can wipe out or reorganize debts if you cannot pay.

• Chapter 7 bankruptcy - This process removes your most unsecured debts in 4–6 months. However, for that, you need to pass a "Means Test" to qualify.
• Chapter 13 bankruptcy - After filing, the court will approve a repayment plan for 3–5 years. You may also retain most of your assets.

Bankruptcy Exemptions in Ohio

Filing for bankruptcy is one of the effective debt relief options in Ohio. You don't lose everything in bankruptcy. Ohio lets you keep certain assets up to set limits, including:

• Homestead Exemption: You can keep up to $182,625 of your home equity.
• Motor Vehicle: Up to $5,025 of equity in your one car.
• Household Goods: Up to $16,850 total (with a maximum of $800 per individual item) for furniture and appliances.
• Jewelry: Up to $2,125.
• Wildcard Exemption: Up to $1,675 for any property of your choice.

Exemption limits change every three years. Ohio adjusted all exemptions effective April 1, 2025 (update from the U.S. Bankruptcy Court, Southern District of Ohio). So, it is better to consult an Ohio bankruptcy attorney to get the actual figures for a particular year.

How a professional debt relief company in Ohio helps you:

• Personalized Guidance: An expert credit counselor will review your financial condition and help you develop a custom plan to get you out of debt.
• Complete Transparency: You will get a clear picture of your finances, overall costs, and duration of your debt relief process before you sign up.
• Compliance & Trust: The debt relief company will follow all the federal/state consumer laws, guidelines as well as the federal telemarketing sales rules.
• Ongoing Support: The debt relief company will provide you with continuous support until you become debt free.

How the process works

• Step 1: Get a free debt analysis: An expert will analyze your debts/income, and check if you qualify for Ohio-specific debt relief options.
• Step 2: Sign up for a customized debt relief plan: The debt relief company will develop a strategy considering your financial condition and future goals. These may include DMP, debt settlement, debt consolidation, or bankruptcy.
• Step 3: Opening an escrow account: You stop paying creditors directly. Instead, you deposit a monthly payment into an escrow account that you control.
• Step 4: Negotiations with the creditor: Experts will negotiate with your creditors to lower the total amount you owe and any fees or penalties.

Pros & Cons of Ohio Debt Relief Options

Here’s a side-by-side comparison of the main debt relief options available in Ohio, focusing on the key pros and cons for each:

Average household debt in Ohio (2025)

Average household debt statistics in Ohio 2025 (based on Federal Reserve and Census data):

• Avg. Ohio household credit card debt - $9,000+ (as of Nov 2025)
• Avg. Ohio mortgage debt balance - $152,655 (Experian - 2025)
• Avg. Ohio personal loan debt: $6850 (July 2025)

Resources to get federal assistance in Ohio

• Ohio Legal Help: Offers free legal advice and court forms (www.ohiolegalhelp.org).
• Ohio Department of Commerce: You can check the license of the debt relief company you choose.
• OhioMeansJobs: Get employment training and stabilize your income.
• Food & Medical Aid: Get federal programs like SNAP and Medicaid.

Ohio Debt Collection Laws & Protection

Federal Law (FDCPA)

• Debt collectors are restricted from calling you before 8 a.m. or after 9 p.m.
• They also cannot call you at work if restricted.
• The debt collectors can get a penalty if they threaten you or use foul language.

Statute of Limitations on Debt in Ohio

SOL is a time limit for recovering a specific debt. Beyond that limit, the debt becomes "time-barred."

• Written contract - 8 years
• Credit Cards - 6 years.
• Medical debt: 6 years.
• Oral Agreements: 6 years.
• Promissory notes/personal loans: 6 years
• Court Judgments: (5+10) = 15 years if revived. However, these can become "dormant" if not collected on, but can also be revived.

Making a partial payment on an old debt can restart this 6-year clock. Check with a lawyer before paying old debts. (Data courtesy - jayperezlaw.com)

Ohio Consumer Sales Practices Act (CSPA)

CSPA adds extra protection against unfair or deceptive acts by suppliers and collectors. If a company violates this, you may be able to sue for damages.

Debt Relief in Ohio FAQs